Five Star, First Brands term loans free to trade; Vizient, STG Logistics changes emerge

By Sara Rosenberg

New York, April 27 – Five Star Holding Corp. cut pricing on its first-lien term loan, removed one leverage-based step-down, set the issue price at the tight side of talk and made some changes to documentation before breaking for trading on Wednesday, and First Brands Group LLC’s incremental first-lien term loan hit the secondary market as well.

In more happenings, Vizient Inc. tightened the spread and original issue discount on its term loan B, and STG Logistics increased the size of its first-lien term loan, finalized pricing at the wide end of guidance and changed the issue price.

Also, Restoration Hardware Inc., Aristocrat Technologies, Blackstone Mortgage Trust Inc. and MetroNet disclosed price talk with launch, and Mallinckrodt plc, R1 RCM Inc. and Polyconcept joined this week’s primary calendar.

Five Star revised, trades

Five Star Holding reduced pricing on its $630 million seven-year first-lien term loan (B2/B) to SOFR plus 425 basis points from SOFR plus 450 bps, removed a 25 bps step-down at 0.5x inside closing date first-lien net leverage, set the original issue discount at 98.5, the tight end of the 98 to 98.5 talk, and modified some documentation items, according to a market source.

The first-lien term loan still has a 25 bps step-down at 0.75x inside closing date first-lien net leverage, a 0.5% floor and 101 soft call protection for six months.

Recommitments were due at 1:30 p.m. ET on Wednesday and the first-lien term loan broke for trading in the afternoon, with levels quoted at 98¾ bid, 99½ offered, another source added.

The company is also getting a $250 million privately placed second-lien term loan (Caa2/CCC+).

Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc., Neuberger Berman, Credit Suisse Securities (USA) LLC and KKR Capital Markets are leading the deal that will be used to help fund the buyout of the company by The Jordan Co. and pay related fees and expenses.

Closing is expected in May.

Five Star is a Houston-based integrated flexible packaging company.

First Brands breaks

First Brands Group’s fungible $350 million incremental senior secured first-lien term loan due March 30, 2027 (B1/B+/BB+) freed to trade in the morning, with levels quoted at 99 3/8 bid, 99 7/8 offered, a trader remarked.

Pricing on the incremental term loan is SOFR+CSA plus 500 bps with a 1% floor and it was sold at an original issue discount of 99.25. CSA is 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

During syndication, the incremental term loan was upsized from $300 million.

Jefferies LLC, BofA Securities Inc., Wells Fargo Securities LLC, Regions Bank, Capital One and Fifth Third are leading the deal that will be used to add cash to the balance sheet for general corporate purposes.

In connection with this transaction, the existing loans will convert to SOFR from Libor with CSA of 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

Pro forma for the transaction, the first-lien term loan will total about $2.067 billion.

First Brands is an automotive aftermarket platform offering comprehensive solutions for consumable maintenance and mission-critical repair parts.

Vizient flexes

Back in the primary market, Vizient trimmed pricing on its $600 million seven-year term loan B to SOFR+10 bps CSA plus 225 bps from talk in the range of 250 bps to 275 bps and adjusted the original issue discount to 99 from 98.5, according to a market source.

As before, the term loan B has a 0.5% floor and 101 soft call protection for six months.

Recommitments were due at 5 p.m. ET on Wednesday, the source added.

Along with the term loan B, the company is getting a $300 million five-year term loan A.

Barclays, BofA Securities Inc., JPMorgan Chase Bank, BMO Capital Markets, Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc., Citigroup Global Markets Inc., Fifth Third, Truist and Wells Fargo Securities LLC are leading the $900 million of term loans (Ba2/BB+), with Barclays left on the term loan B and BofA left on the term loan A. Barclays is the administrative agent.

The term loans will be used to refinance the company’s existing capital structure.

Vizient is an Irving, Tex.-based member driven health care performance improvement company.

STG tweaked

STG Logistics raised its first-lien term loan to $750 million from $725 million, firmed the spread at SOFR+CSA plus 600 bps, the high end of the 575 bps to 600 bps talk, revised the original issue discount to 98.5 from 98 and added a quarterly lender calls requirement, a market source said.

The term loan still has a 0.75% floor, CSA of 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate, and 101 soft call protection for one year.

The company’s now $900 million of senior secured credit facilities also include a $60 million revolver and a $90 million designated letter-of-credit revolver.

Recommitments were due at 5 p.m. ET on Wednesday and allocations are expected on Thursday.

Antares Capital, Deutsche Bank Direct Lending, Stifel Nicolaus and Co. Inc., Citizens Bank and MUFG are leading the deal that will be used to fund the acquisition of XPO Logistics’ intermodal segment, an intermodal and drayage service provider, to refinance existing debt, and to pay fees and expenses related to the transaction.

STG, backed by Wind Point Partners and Oaktree Capital Management, is a Bensenville, Ill.-based provider of facilities-based containerized logistics services.

Restoration guidance

Restoration Hardware held its lender call on Wednesday afternoon and announce price talk on its non-fungible $1 billion incremental term loan B-2 (Ba3/BB) at SOFR+10 bps CSA plus 325 bps with a 0.5% floor and an original issue discount of 97.5, according to a market source.

The term loan has 101 soft call protection for six months.

Commitments are due at noon ET on May 4, the source added.

BofA Securities Inc. is the left lead on the deal that will be used for general corporate purposes.

Restoration Hardware is a Corte Madera, Calif.-based upscale home furnishings company.

Aristocrat proposed terms

Aristocrat Technologies launched on its morning call its $500 million term loan B at talk of SOFR+10 bps CSA plus 250 bps with a 0.5% floor, an original issue discount of 99 and 101 soft call protection for six months, a market source remarked.

The company’s $2.35 billion of credit facilities (Ba1//BBB-) also include a $500 million revolver and a $1.35 billion term loan A.

Commitments are due at noon ET on May 4, the source added.

BofA Securities Inc. is the left lead on the deal that will be used to refinance an existing term loan B and increase liquidity.

Aristocrat a North Ryde, Australia-based provider of gaming solutions.

Blackstone holds call

Blackstone Mortgage Trust held a lender call at 1 p.m. ET, launching a non-fungible $400 million incremental term loan B-4 (Ba2) due 2029 at talk of SOFR plus 325 bps to 350 bps with a 0.5% floor and an original issue discount of 98.5, according to a market source.

Commitments are due at 3 p.m. ET on Monday, the source added.

JPMorgan Chase Bank is leading the deal that will be used to repay secured debt.

Blackstone Mortgage Trust is a New York-based real estate finance company.

MetroNet talk

MetroNet came out with original issue discount talk of 98.57 to 99 on its fungible $65 million add-on first-lien term loan B due June 2028 that launched with a call in the morning, a market source said.

Pricing on the add-on term loan is SOFR+CSA plus 375 bps with a 0.75% floor, in line with existing term loan pricing, and CSA is 11 bps one-month rate, 26 bps three-month rate and 43 bps six-month rate.

Commitments are due on Tuesday, the source added.

Goldman Sachs Bank USA, TD Securities (USA) LLC, Citizens Bank, Fifth Third, Societe Generale and KKR Capital Markets are leading the deal, which will be used to repay revolver borrowings drawn to fund growth capital expenditures.

Oak Hill and KKR Infrastructure are the sponsors.

MetroNet is an Evansville, Ind.-based provider of fiber optic high-speed broadband, video and voice services.

Mallinckrodt on deck

Mallinckrodt set a lender call for 12:30 p.m. ET on Thursday to launch its previously announced $900 million senior secured term loan B (B), according to a market source.

Morgan Stanley Senior Funding Inc. is the left lead arranger on the deal. Barclays, Deutsche Bank Securities Inc. and MUFG are joint lead arrangers and joint bookrunners.

The term loan will be used with cash on hand to repay existing revolver borrowings, to make certain other payments and distributions required in connection with the company’s bankruptcy emergence, and to pay fees and expenses.

Mallinckrodt is a Dublin-based developer, manufacturer, marketer and distributor of specialty pharmaceutical products and therapies.

R1 RCM coming soon

R1 RCM will hold a lender call at 9 a.m. ET on Thursday to launch a $540 million seven-year senior secured term loan B (//BBB-), a market source remarked.

The term loan has 101 soft call protection for six months, the source added.

Barclays, JPMorgan Chase Bank, BofA Securities Inc., Capital One, Wells Fargo Securities LLC, US Bank, KeyBanc Capital Markets, PNC, Morgan Stanley Senior Funding Inc., HSBC Securities (USA) Inc. and Fifth Third are leading the deal. BofA is the administrative agent.

The loan will be used to help fund the acquisition of Cloudmed, an Atlanta-based provider of revenue intelligence solutions for healthcare providers, from New Mountain Capital.

Closing is expected this quarter, subject to customary conditions.

R1 RCM is a Murray, Utah-based provider of technology-driven solutions that transform the patient experience and financial performance of healthcare providers.

Polyconcept readies deal

Polyconcept scheduled a lender call for 11 a.m. ET on Friday to launch an $800 million seven-year covenant-lite term loan B, according to a market source.

The company is also getting a $125 million five-year ABL revolver.

KKR Capital Markets is the left lead on the deal that will be used to refinance existing loans.

Polyconcept is a New Kensington, Pa.-based supplier of promotional products.

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