Russell breaks; Spencer Spirit tables repricing; Signature Aviation, Gogo tweak deadlines

By Sara Rosenberg

New York, April 19 – Russell Investments US Institutional Holdco Inc.’s incremental first-lien term loan B made its way into the secondary market on Monday afternoon, with the debt bid in line with its original issue discount.

Meanwhile, in the primary market, Spencer Spirit withdrew the repricing of its term loan B from market, and Signature Aviation plc and Gogo Intermediate Holdings LLC moved up the commitment deadlines for their term loans.

Also, Beacon Roofing Supply Inc., United Pacific, Pabst Blue Ribbon and U.S. Renal Care Inc. released price talk with launch.

Furthermore, TKC Holdings Inc., LaserShip (ASP LS Acquisition Corp.), Lonza Specialty Ingredients, Insulet Corp., CPV Maryland LLC and Avison Young joined this week’s primary calendar.

Russell frees to trade

Russell Investments’ fungible $382 million senior secured incremental first-lien term loan B due May 2025 broke for trading on Monday, with levels quoted at 99 bid, 99½ offered, according to a market source.

Pricing on the incremental term loan is Libor plus 350 basis points with a 1% Libor floor and it was sold at an original issue discount of 99. The debt has 101 soft call protection for six months.

During syndication, the incremental term loan was downsized from $407 million and pricing was increased from Libor plus 325 bps.

Barclays, Macquarie Capital (USA) Inc. and Credit Suisse Securities (USA) LLC are leading the deal that will be used to refinance an existing term loan due 2023 and fund a one-time distribution to shareholders.

With this transaction, pricing on the company’s existing term loan due May 2025 is being revised to Libor plus 350 bps from Libor plus 300 bps to match the incremental pricing.

Closing is expected this week.

Russell is a Seattle-based asset manager.

Spencer pulls deal

Switching to primary happenings, Spencer Spirit removed the repricing of its $359 million covenant-lite term loan B due June 2026 from market, a source remarked.

The repricing was talked at Libor plus 500 bps with a 0% Libor floor, a par issue price and 101 soft call protection for six months.

By comparison, current pricing on the term loan B is Libor plus 600 bps with a 0% Libor floor.

Guggenheim Securities and Wells Fargo Securities LLC were leading the deal.

Spencer is an Egg Harbor Township, N.J.-based specialty retailer focused on lifestyle accessories and specialized Halloween merchandise.

Signature accelerated

Signature Aviation moved up the commitment deadline for $1.8 billion seven-year covenant-lite term loan B to 5 p.m. ET on Wednesday from April 27 due to strong demand, according to a market source.

The term loan is talked at Libor plus 300 bps with a 0.5% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months.

The company’s $2.15 billion of credit facilities (B1/B+) also include a $350 million five-year revolver.

RBC Capital Markets, Santander, Barclays, MUFG and HSBC Securities (USA) Inc. are leading the deal that will be used with $4.157 billion of equity to fund the buyout of the company by Blackstone, Cascade and Global Infrastructure Partners for $5.62 per share in cash. The offer values Signature at about $4.727 billion.

Closing is expected in the second quarter, subject to regulatory approvals.

Signature Aviation is a London-based aviation services company.

Gogo revises timing

Gogo accelerated the commitment deadline for its $725 million seven-year covenant-lite first-lien term loan B to 5 p.m. ET on Tuesday from Thursday, a market source said.

Allocations are expected on Wednesday, the source added.

Talk on the term loan is Libor plus 400 bps to 425 bps with a step-down based on leverage, a 0.75% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months.

The company’s $825 million of senior secured credit facilities (B3/B-) also include a $100 million five-year revolver.

Morgan Stanley Senior Funding Inc., Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. are leading the deal that will be used with cash on hand to repay 9 7/8% secured notes and to refinance and terminate an existing asset-based revolver.

Gogo is a Chicago-based provider of broadband connectivity services for the business aviation market.

Beacon details emerge

Beacon Roofing Supply held its call on Monday morning and launched a $1 billion seven-year senior secured covenant-lite term loan B (Ba3/BB-) talked at Libor plus 225 bps to 250 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, according to a market source.

Cashless roll and new money commitments are due at noon ET on Friday, the source added.

Citigroup Global Markets Inc., BofA Securities Inc., Wells Fargo Securities LLC and JPMorgan Chase Bank are leading the loan that will be used with $350 million of notes to repay an existing term loan and 4 7/8% senior notes due 2025, and to pay related breakage costs, fees and expenses.

The company also plans on getting a $1.3 billion amended and restated senior secured asset-based revolver due 2026.

Beacon Roofing is a Herndon, Va.-based distributor of roofing materials and complementary building products.

United Pacific guidance

United Pacific came out with talk of Libor plus 350 bps to 375 bps with a 0.5% Libor floor and 101 soft call protection for six months on its fungible $105 million add-on term loan B (B) due November 2026 and repricing of its existing $445 million term loan B (B2/B) due November 2026 that launched with an afternoon call, a market source remarked.

The add-on term loan is talked with an original issue discount of 99 and the repricing is offered at par, the source added. Existing lenders are being offered a 25 bps amendment fee.

Commitments are due on April 28.

Goldman Sachs Bank USA is leading the deal.

The add-on term loan will be used to fund a dividend and the repricing will take the existing term loan down from Libor plus 400 bps with a 1% Libor floor.

United Pacific is a Long Beach, Calif.-based operator of gas stations and convenience stores throughout Southern and Northern California, Washington, Oregon, Colorado and Nevada.

Pabst proposed terms

Pabst Blue Ribbon announced talk of Libor plus 500 bps with a 0.75% Libor floor, an original issue discount of 98.5 to 99 and 101 soft call protection for six months on its $368 million seven-year term loan B (B2/B) in connection with its call during the session, according to a market source.

Commitments are due at 5 p.m. ET on April 29.

JPMorgan Chase Bank is leading the deal that will be used to refinance an existing term loan due 2021.

Pabst Blue Ribbon is a brewing company.

U.S. Renal talk

U.S. Renal Care launched on its morning call its non-fungible $150 million incremental term loan B (B-) due June 26, 2026 at talk of Libor plus 550 bps to 575 bps with a 1% Libor floor, an original issue discount of 98.5 and 101 soft call protection for one year, a market source said.

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

Barclays is the left lead on the deal that will be used for general corporate purposes and to pay related fees and expenses.

U.S. Renal is a Plano, Tex.-based provider of dialysis services.

TKC plans call

TKC Holdings scheduled a lender call for Tuesday to launch $1.175 billion of credit facilities, according to a market source.

The facilities consist of a $50 million five-year revolver and a $1.125 billion seven-year first-lien term loan, the source said.

Jefferies LLC is leading the deal that will be used with $500 million of senior unsecured notes to refinance the company’s existing capital structure.

TKC is a St. Louis-based provider of commissary, food service and related technology products to the corrections industry.

LaserShip readies deal

LaserShip will hold a lender call at 11 a.m. ET on Tuesday to launch $955 million of senior secured credit facilities, a market source remarked.

The facilities consist of a $75 million five-year revolver, a $675 million seven-year first-lien term loan and a $205 million eight-year second-lien term loan, the source said.

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

Jefferies LLC, RBC Capital Markets, UBS Investment Bank, Goldman Sachs Bank USA and Natixis are leading the deal that will be used to help fund the buyout of the company by American Securities LLC.

LaserShip is a regional last mile parcel delivery provider in the eastern U.S. with a focus on business to consumer deliveries for e-commerce retailers.

Lonza coming soon

Lonza Specialty Ingredients surfaced with plans to hold a lender call at 10 a.m. ET on Tuesday to launch a $1.13 billion (CHF $1.028 billion equivalent) seven-year term loan B and a €725 million (CHF $806 million equivalent) seven-year term loan B, according to a market source.

The term loans (B2) have 101 soft call protection for six months.

Commitments are due at noon ET on April 29, the source added.

Credit Suisse is the physical bookrunner on the U.S. term loan, and Deutsche Bank, UBS, RBC Capital Markets, UniCredit, Credit Agricole and Societe Generale are joint bookrunners. UBS, Deutsche Bank and RBC are the physical bookrunners on the euro term loan, and Credit Suisse, UniCredit, Credit Agricole and Societe Generale are joint bookrunners. Natwest, Bank of Ireland and Commerzbank are mandated lead arrangers.

Lonza being acquired

Lonza Specialty Ingredients will use the new term loans to help fund its buyout by Bain Capital Private Equity and Cinven from Lonza AG for CHF 4.2 billion, and to pay for related fees and expenses.

The company also intends to get CHF 318 million equivalent of other pari passu secured debt and CHF 513 million equivalent of unsecured debt for the transaction.

Closing is expected in the second half of the year, subject to customary conditions.

Lonza Specialty Ingredients is a Basel, Switzerland-based provider of specialty chemicals.

Insulet on deck

Insulet scheduled a lender call for 1 p.m. ET on Tuesday to launch a $500 million senior secured first-lien term loan B (Ba3/B+), a market source said.

The company also plans on getting a new senior secured revolver.

Morgan Stanley Senior Funding Inc. is the left lead on the deal that will be used for general corporate purposes, including to retire debt and/or to fund investments.

Insulet is an Acton, Mass.-based medical device company dedicated to simplifying life for people with diabetes and other conditions.

CPV joins calendar

CPV Maryland set a lender call for 1 p.m. ET on Tuesday to launch $475 million of credit facilities, according to a market source.

The facilities consist of a $100 million revolver and a $375 million term loan B, the source said.

MUFG, BNP Paribas Securities Corp., Credit Agricole and Mizuho are leading the deal that will be used primarily to refinance existing debt.

CPV Maryland owns the CPV St. Charles Energy Center, an operating 745 MW natural gas-fired, combined cycle generating facility located in Charles County, Md.

Avison readies deal

Avison Young will hold a lender call at 9 a.m. ET on Tuesday to launch a fungible $50 million incremental covenant-lite first-lien term loan due January 2026, a market source remarked.

Talk on the incremental term loan is Libor plus 600 bps with a 25 bps step-down at B3/B-/stable ratings and a 50 bps step-up at Caa3/CCC+/positive ratings, a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, the source added.

Commitments are due at 5 p.m. ET on April 27.

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used for general corporate purposes, including tuck in acquisitions.

In connection with this transaction, pricing on the company’s existing first-lien term loan will be reset to Libor plus 600 bps for fungibility.

Pro forma for the incremental, the first-lien term loan will total $368 million.

Avison Young is a Toronto-based commercial real estate services firm.

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