Quirch, Mega Broadband break; Chobani tweaks deal; MultiPlan, Les Schwab and more set talk

By Sara Rosenberg

New York, Oct. 19 – Quirch Foods LLC set the spread on its first-lien term loan B at the low end of guidance before freeing up for trading on Monday, and Mega Broadband Investments Holdings LLC’s bank debt broke as well.

In more happenings, Chobani LLC downsized its first-lien term loan, firmed pricing at the narrow side of talk and tightened the original issue discount.

Also, MultiPlan Inc. (MPH Acquisition Holdings LLC), Les Schwab Tire Centers, Pretium Packaging (Pretium Pkg Holdings Inc.), Albany Molecular Research Inc. and MHI Holdings LLC announced price talk with launch.

Furthermore, Greystone Select Financial LLC, J.D. Power, Imperva Inc., TruGreen LP, PetSmart Inc. and Angus Chemical Co. joined this week’s primary calendar.

Quirch updated, trades

Quirch Foods finalized pricing on its $475 million seven-year senior secured first-lien term loan B (B3/B) at Libor plus 525 basis points, the low end of the Libor plus 525 bps to 550 bps talk, a market source remarked.

As before, the term loan has pricing step-downs, a 1% Libor floor, an original issue discount of 98 and 101 soft call protection for six months.

On Monday, the term loan B made its way into the secondary market and levels were quoted at 98¼ bid, 99¼ offered, a trader added.

The company’s $675 million of credit facilities also include a $200 million ABL revolver.

RBC Capital Markets is the left lead on the deal that will be used with equity to fund the acquisition of Colorado Boxed Beef Co. from Altamont Capital Partners.

Closing is expected on Oct. 27.

Quirch Foods is a Coral Gables, Fla.-based specialty protein supplier to chain grocery stores. Colorado Boxed Beef is a Lakeland, Fla.-based protein supplier to chain grocery stores, foodservice distributors and other customers in large markets.

Mega Broadband frees up

Mega Broadband’s $650 million seven-year term loan B began trading too, with levels quoted at 99½ bid, par offered, according to a market source.

Pricing on the term loan B is Libor plus 300 bps with a step-down to Libor plus 275 bps when leverage is 4.75x and a 0.75% Libor floor. The debt was sold at an original issue discount of 99 and has 101 soft call protection for six months.

During syndication, pricing on the term loan was reduced from Libor plus 350 bps and the step-down was added.

The broadband provider’s $725 million of senior secured credit facilities (B2/B+) also include a $75 million five-year revolver.

Truist Securities Inc., Credit Suisse Securities (USA) LLC, TD Securities (USA) LLC and Citizens are leading the deal that will be used to refinance existing debt and to fund a distribution to existing shareholders.

On Sept. 28, it was announced that Cable One Inc. will make a strategic investment in Mega Broadband. Cable One will purchase a 45% minority stake from affiliates of GTCR for about $574.1 million in cash. The investment is expected to close in the fourth quarter.

Chobani revised

Back in the primary market, Chobani trimmed its seven-year first-lien term loan to $400 million from $500 million, firmed pricing at Libor plus 350 bps, the low end of the Libor plus 350 bps to 375 bps talk, and modified the original issue discount to 99.25 from 99, a market source remarked.

The term loan still has a 1% Libor floor and 101 soft call protection for six months.

BofA Securities Inc., J.P. Morgan Securities LLC, TD Securities (USA) LLC and KeyBanc Capital Markets LLC are leading the deal that will be used with $425 million of senior secured notes, upsized from $325 million, to refinance existing debt.

Chobani is a Norwich, N.Y.-based producer of Greek yogurt.

MultiPlan reveals talk

MultiPlan held its call on Monday afternoon and released price talk on its $2.47 billion seven-year senior secured term loan B at Libor plus 325 bps to 350 bps with a 0.75% Libor floor and an original issue discount of 99, a market source said.

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

Commitments are due at noon ET on Oct. 26 and cashless roll is available.

Barclays, Citigroup Global Markets Inc., Goldman Sachs Bank USA, BofA Securities Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and UBS Investment Bank are leading the deal that will be used to help refinance an existing $2.71 billion term loan G due 2023 and $1.56 billion of senior notes due 2024, and to pay call premium costs and transaction-related fees and expenses.

Earlier this month, MultiPlan completed its business combination with Churchill Capital Corp III, a public investment vehicle.

MultiPlan is a New York-based provider of health care cost management solutions.

Les Schwab launches

Les Schwab Tire Centers launched on its call its $1.575 billion term loan B at talk of Libor plus 350 bps to 375 bps with a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

Commitments are due at 5 p.m. ET on Oct. 28, the source added.

J.P. Morgan Securities LLC is the left lead on the deal that will be used to help fund the buyout of the company by Meritage Group LP.

Les Schwab is a Bend, Ore.-based tire retail chain.

Pretium proposed terms

Pretium Packaging held its lender call at 10 a.m. ET and, shortly before the event began, price talk emerged on its $530 million seven-year covenant-lite first-lien term loan (B2/B) and its $170 million eight-year covenant-lite second-lien term loan (Caa2/CCC+), a market source remarked.

Talk on the first-lien term loan is Libor plus 400 bps to 425 bps with a 0.75% Libor floor and an original issue discount of 99, and talk on the second-lien term loan is Libor plus 800 bps to 825 bps with a 0.75% Libor floor and a discount of 98.5, the source added.

The first-lien term loan has 101 soft call protection for six months, and the second-lien term loan has call protection of 102 in year one and 101 in year two.

Commitments are due at 5 p.m. ET on Oct. 28.

Credit Suisse Securities (USA) LLC and KKR Capital Markets are leading the $700 million of term loans that will be used to refinance existing debt and fund a shareholder distribution.

Pretium is a Chesterfield, Mo.-based designer and manufacturer of rigid plastic packaging solutions for specialized applications.

Albany Molecular guidance

Albany Molecular Research came out with talk of Libor plus 375 bps with a 1% Libor floor and an original issue discount of 99 on its non-fungible $210 million incremental first-lien term loan (B2/B-) due Aug. 30, 2024 that launched with a morning call, according to a market source.

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

Commitments are due at noon ET on Oct. 26.

Barclays is leading the deal, which will be used to refinance an existing second-lien term loan.

Albany Molecular is an Albany-based contract research and manufacturing organization that works with the life sciences industry to improve patient outcomes and quality of life.

MHI holds call

MHI Holdings held a lender call during the session to launch a fungible $215 million incremental first-lien term loan (B) talked with an original issue discount of 98.79 to 99, according to a market source.

The incremental term loan is priced at Libor plus 500 bps with a 0% Libor floor and has 101 soft call protection for six months.

Commitments and amendment consents are due at noon ET on Friday, the source added.

BofA Securities Inc., BNP Paribas Securities Corp., Citizens Bank and Mizuho are leading the deal that will be used to fund a dividend.

MHI is a provider of critical ship repair services and commercial and defense-related fabrication services.

Greystone readies loan

Greystone Select Financial set a lender meeting and call for 1 p.m. ET on Tuesday to launch a $400 million seven-year term loan B, a market source said.

The term loan has 101 soft call protection for one year, the source added.

Commitments are due at noon ET on Oct. 29.

Wells Fargo Securities LLC is leading the deal that will be used to repay certain existing corporate term debt, fund future growth in the business, and pay transaction related fees and expenses.

Greystone is a New York-based commercial real estate finance and investment company.

J.D. Power on deck

J.D. Power scheduled a lender call for noon ET on Wednesday to launch a non-fungible $100 million incremental first-lien term loan due May 2026, according to a market source.

Commitments are due at noon ET on Oct. 27, the source added.

RBC Capital Markets is leading the deal that will be used to help fund the acquisition of ALG Inc., a provider of comprehensive residual auto values, from TrueCar Inc. for $135 million.

Closing is expected by the end of the year, subject to customary conditions as well as regulatory approval.

J.D. Power is a Troy, Mich.-based provider of automobile transactional data, valuation tools, vehicle feature information and consumer analytics to the automotive industry.

Imperva joins calendar

Imperva will hold a lender call at 11 a.m. ET on Tuesday to launch a fungible $147 million incremental first-lien term loan due Jan. 10, 2026, a market source remarked.

Like the existing first-lien term loan, the incremental term loan is priced at Libor plus 400 bps with a 1% Libor floor, the source added.

Jefferies LLC is leading the deal that will be used to fund an acquisition.

Imperva is a San Mateo, Calif.-based provider of cyber security solutions to protect databases and applications.

TruGreen coming soon

TruGreen emerged with plans to hold a lender call at 11 a.m. ET on Tuesday to launch $1.425 billion of term loans, according to a market source.

The debt is split between a $1.15 billion seven-year first-lien term loan (B1/B) and a $275 million eight-year second-lien term loan (Caa1/CCC+), the source said.

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

J.P. Morgan Securities LLC is the left lead on the deal that will be used to refinance existing bank debt and fund a dividend.

TruGreen is a Memphis, Tenn.-based provider of lawn care, tree & shrub and mosquito services.

PetSmart plans refinancing

PetSmart set a call for Tuesday to launch a $2.3 billion seven-year term loan B talked at Libor plus 400 bps to 425 bps with a 0.75% Libor floor and an original issue discount of 99, a market source said.

J.P. Morgan Securities LLC is the left lead on the deal that will be used to help refinance an existing term loan and notes.

PetSmart is a Phoenix-based specialty pet retailer.

Angus sets call

Angus Chemical will hold a lender call at 10 a.m. ET on Tuesday to launch an $860 million cross-border first-lien term loan B (B-/BB), according to a market source.

J.P. Morgan Securities LLC is leading the deal that will be used to help fund the acquisition of a 50% ownership stake in the company by Ardian from Golden Gate Capital at a total enterprise value of about $2.25 billion. Golden Gate will retain a 50% stake in Angus.

Closing is expected by the end of the year.

Angus is a Buffalo Grove, Ill.-based specialty and fine chemical company.

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