Pediatric Associates, Solera, AHF Products, TKC break; Virtusa revised; ITP Aero accelerated

By Sara Rosenberg

New York, Feb. 8 – Pediatric Associates Holding Co. LLC increased the size of its funded term loan, added a delayed-draw tranche and trimmed pricing, and Solera Holdings LLC changed the original issue discount on its add-on term loan B, ahead of freeing up for trading on Tuesday.

Also, AHF Products LLC revised CSA on its term loan, shortened the maturity and sweetened amortization, and TKC Midco 1 LLC launched its PIK toggle HoldCo term loan in the morning, and upsized the loan and finalized the original issue discount at the wide end of talk in the afternoon, and then these deals broke as well.

In other news, Virtusa Corp. upsized its term loan, set the spread at the low end of talk and firmed the issue price at the wide side of guidance, and ITP Aero moved up the commitment deadline for its first-lien term loan.

Furthermore, Olaplex Holdings Inc., Latham Pool Products Inc., Magnate Worldwide LLC and Cast & Crew released price talk with launch, and HelpSystems (HS Purchaser LLC), Albaugh LLC, Safe Fleet and CTC Holdings (Chicago Trading Co.) joined this week’s primary calendar.

Pediatric reworked, frees

Pediatric Associates raised its funded seven-year covenant-lite first-lien term loan to $660 million from $600 million, added a $100 million delayed-draw covenant-lite first-lien term loan to the transaction, and lowered pricing to Libor plus 325 basis points from Libor plus 350 bps, according to a market source.

Ticking fees on the delayed-draw term loan are half the margin from days 46 to 90 and the full margin thereafter, the source said.

As before, the term loan debt (B) has a 0.5% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

Recommitments were due at noon ET on Tuesday and the debt broke for trading in the afternoon, with the strip of funded and delayed-draw term loans quoted at 99¾ bid, par offered, another source added.

Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Deutsche Bank Securities Inc. and Citizens Bank are leading the deal that will fund a recapitalization and a partial equity sale of the business.

Pediatric Associates is a pediatric practice management company.

Solera tightens, trades

Solera adjusted the original issue discount on its fungible $300 million add-on term loan B due June 2028 to 99.75 from talk in the range of 99 to 99.5, a market source said.

Pricing on the add-on term loan is Libor plus 400 bps with a 0.5% Libor floor.

Recommitments were due at 1 p.m. ET on Tuesday and the term loan freed up later in the day, with levels quoted at 99 7/8 bid, par 1/8 offered, another source added.

JPMorgan Chase Bank is leading the deal. Goldman Sachs is the administrative agent.

The term loan will be used to fund the acquisition of Spireon, a device-independent telematics and connected vehicle intelligence company, from Greenbriar Equity Fund.

Closing is expected this quarter, subject to customary conditions and regulatory approval.

Solera is a Westlake, Tex.-based provider of integrated vehicle lifecycle and fleet management software-as-a-service, data and services.

AHF tweaked, breaks

AHF Products changed CSA on its $215 million first-lien term loan (B2/B) to about 11.4 bps one-month rate, about 26.2 bps three-month rate and about 42.8 bps six-month rate from 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate, a market source remarked.

In addition, the maturity on the term loan was shortened to six years from seven years and amortization was revised to 5% per annum from 2.5% in year one and 5% per annum thereafter, the source said.

Pricing on the term loan remained at SOFR+CSA plus 625 basis points with a 0.75% floor and an original issue discount of 98, and the debt still has 101 hard call protection for one year.

The company is also getting a $50 million ABL revolver.

The term loan began trading on Tuesday, with levels quoted at 98½ bid, 99½ offered, another source added.

UBS Investment Bank, KeyBanc Capital Markets and Stifel are leading the deal that will be used to help fund the buyout of the company by Paceline Equity Partners from American Industrial Partners.

Closing is expected this quarter.

AHF Products is a Mountville, Pa.-based manufacturer of hardwood and vinyl flooring.

TKC updated, frees

TKC Midco launched on its morning call its $305 million five-year PIK toggle HoldCo term loan at talk of 12% cash, 13% PIK in year one and 13.5% PIK thereafter, with an original issue discount of 98 to 99, a market source remarked.

By late day, the term loan was upsized to $320 million, the discount was set at 98 and allocations were distributed, the source continued.

The loan is non-callable for one year, then at 108 in year two, 106 in year three and 104 in year four.

Upon hitting the secondary market, the term loan was quoted at 99 5/8 bid, par offered, another source added.

Jefferies LLC is leading the deal that will be used to fund a shareholder distribution.

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

Virtusa upsizes

Virtusa lifted its seven-year term loan to $670 million from $590 million, set pricing at SOFR+CSA plus 375 bps, the low end of the SOFR+CSA plus 375 bps to 400 bps talk, and firmed the original issue discount at 99, the wide end of the 99 to 99.5 talk, according to a market source.

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 six months.

Recommitments were due at 3:30 p.m. ET on Tuesday, the source added.

BofA Securities Inc., Barclays, Goldman Sachs Bank USA, Deutsche Bank Securities Inc., HSBC Securities (USA) Inc. and Nomura are leading the deal, which will be used with a $50 million add-on notes offering, downsized from $130 million, to fund a distribution to shareholders.

Virtusa is a Southborough, Mass.-based provider of digital strategy, digital engineering, and IT services and solutions that help clients change and disrupt markets through innovation engineering.

ITP Aero changes timing

ITP Aero accelerated the commitment deadline for its €575 million equivalent U.S. (about $650 million) seven-year first-lien term loan (B2/B) to 5 p.m. ET on Wednesday from 5 p.m. ET on Thursday, a market source said.

Talk on the term loan is SOFR plus 425 bps to 450 bps with a 0.5% floor, an original issue discount of 99 and 101 soft call protection for six months.

Ticking fees on the term loan are half the margin from days 61 to 120 and the full margin thereafter.

The company’s €675 million equivalent of credit facilities also include a €100 million euro revolver.

Credit Suisse, RBC Capital Markets, Santander, BBVA, Goldman Sachs and Standard Chartered are leading the deal that will be used to help fund the buyout of the company by Bain Capital Private Equity from Rolls-Royce for about €1.7 billion.

ITP Aero is a Zamudio, Spain-based aerospace and engine component supplier.

Olaplex guidance

In more happenings, Olaplex held its lender call on Tuesday afternoon and announced price talk on its $675 million seven-year term loan B (B1/BB-) at SOFR plus 375 bps to 400 bps with a 25 bps step-down at 0.5x inside closing date first-lien net leverage, a 0.5% floor and an original issue discount of 99.5, according to a market source.

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

Commitments are due on Feb. 22, the source added.

Goldman Sachs Bank USA is the left lead on the deal that will be used to refinance the company’s existing capital structure.

Advent International is the sponsor.

Olaplex is a hair care company.

Latham sets talk

Latham Pool Products came out with price talk of SOFR+CSA plus 325 bps to 350 bps with a 0.5% floor and an original issue discount of 99 to 99.5 on its $350 million seven-year term loan B (B1/BB-) that launched with a call in the morning, a market source remarked.

CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

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

Commitments are due at 5 p.m. ET on Feb. 17, the source added.

Barclays, BofA Securities Inc., Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc., MUFG and Nomura are leading the deal, which will be used to refinance an existing term loan and for general corporate purposes.

Latham Pool is a Latham, N.Y.-based designer and manufacturer of residential in-ground swimming pools and related accessories.

Magnate holds call

Magnate Worldwide launched on its afternoon call its $260 million seven-year covenant-lite first-lien term loan and $40 million delayed-draw covenant-lite term loan at talk of Libor plus 500 bps to 525 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 on Feb. 23, the source added.

Citizens Bank is leading the term loan debt (B2/B) that will be used to help fund the buyout of the company by Littlejohn & Co. LLC.

Magnate Worldwide is an asset-light third-party logistics provider with headquarters in Portland, Ore., and Chicago.

Cast & Crew launches

Cast & Crew held its call in the afternoon, launching its fungible $225 million add-on first-lien term loan B (B) due Dec. 30, 2028 at talk of SOFR plus 375 bps with a 0.5% floor and an original issue discount of 99.5, a market source said.

The add-on term loan has 101 soft call protection until June and ticking fees of half the margin from days 46 to 90 and the full margin thereafter.

Commitments are due on Feb. 15, the source added.

Goldman Sachs Bank USA and RBC Capital Markets are leading the deal that will be used to fund the acquisition of Backstage Holdings.

With this transaction, pricing on the company’s existing $250 million term loan B due Dec. 30, 2028 will switch to SOFR plus 375 bps with a 0.5% floor from Libor plus 375 bps with a 0.5% Libor floor.

EQT is the sponsor.

Cast & Crew is a Burbank, Calif.-based provider of software and services to the entertainment production industry. Backstage is a New York-based provider of talent marketplace and content creation tools for the creative economy.

HelpSystems on deck

HelpSystems set a lender call for 1 p.m. ET on Wednesday to launch a fungible $555 million incremental first-lien term loan due November 2026, according to a market source.

Price talk on the incremental first-lien term loan is SOFR+10 bps CSA plus 400 bps with a 0.75% floor and an original issue discount of 99.5 to 99.75, the source said.

Commitments are due at 4 p.m. ET on Feb. 17.

The company is also getting a fungible $170 million privately placed incremental second-lien term loan due November 2027 with call protection of 102 hard call until May 19 and then 101 hard call until May 19, 2023.

Jefferies LLC and Golub are leading the deal that will be used to fund three acquisitions currently under exclusivity.

Pro forma for the transaction, the first-lien term loan will total about $2.105 billion and the second-lien term loan will total $670 million.

HelpSystems is an Eden Prairie, Minn.-based provider of cybersecurity and automation software.

Albaugh coming soon

Albaugh will hold a lender call at 11 a.m. ET on Wednesday to launch a $750 million seven-year term loan B talked at SOFR plus 375 bps to 400 bps with a 1% floor, an original issue discount of 99 and 101 soft call protection for six months, a market source said.

Commitments are due at 10 a.m. ET on Feb. 18, the source added.

HSBC Securities (USA) Inc., JPMorgan Chase Bank, Rabobank, Santander, Truist and BofA Securities Inc. are leading the deal that will be used to refinance an existing credit facility and fund the acquisition of Rotam Global AgroSciences Ltd., a Hong Kong-based provider of crop protection solutions, for NTD 26.23 per share, or about $197.5 million net of cash and debt.

Closing is subject to customary procedures and regulatory approvals.

Albaugh is an Ankeny, Iowa-based producer of off-patent agrochemical products.

Safe Fleet readies loan

Safe Fleet emerged with plans to hold a lender call at 11 a.m. ET on Wednesday to launch a $595 million first-lien term loan (B-), according to a market source.

Goldman Sachs Bank USA, UBS Investment Bank and MUFG are leading the deal that will be used to refinance existing first-lien debt, fund an acquisition, and pay transaction fees and expenses.

Oak Hill is the sponsor.

Safe Fleet is a Belton, Mo.-based provider of safety and productivity products for fleet vehicles and first responders.

CTC joins calendar

CTC Holdings scheduled a lender call for 11 a.m. ET on Wednesday to launch a $300 million seven-year term loan B (B1/B+) talked at SOFR+CSA plus 500 bps with a 0.5% floor, an original issue discount of 98.5 and 101 soft call protection for one year, a market source remarked.

CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

Commitments are due at 5 p.m. ET on Feb. 16, the source added.

JPMorgan Chase Bank is leading the deal that will be used for trading capital and general corporate purposes.

CTC is a Chicago-based trading firm.

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