Pretium, CHG, GIP, American Bath, Consilio, BMC, Mattress Firm, Arclin, Grinding Media break

By Sara Rosenberg

New York, Sept. 22 – Pretium Packaging (Pretium PKG Holdings Inc.) reduced the spread on its second-lien term loan and updated original issue discounts on its first -and second-lien debt, CHG Healthcare Services Inc. trimmed the spread and issue price on its first-lien term loan, and GIP II Blue Holding LP (HESM Holdco) finalized the spread on its term loan at the low end of talk and the issue price at the wide side of guidance, and then these deals broke for trading on Wednesday.

Also, before freeing up, American Bath Group (CP Atlas Buyer Inc.) increased the size of its incremental first-lien term loan and adjusted the original issue discount, Consilio (GI Consilio Parent LLC) modified the issue price on its incremental first-lien term loan, and BMC Software moved some funds between its first-and second-lien term loans and updated pricing.

Other deals to make their way into the secondary market during the session included Mattress Firm Inc., Arclin Inc., Grinding Media Inc. (Molycop Ltd.) and Southern Veterinary Partners LLC.

In more happenings, U.S. Anesthesia Partners set pricing on its first-lien term loan B at the high end of talk and revised the original issue discount, and J&J Gaming (J&J Ventures Gaming LLC) tightened the original issue discount on its incremental first-lien term loan.

Additionally, Team Services Group upsized its incremental first-lien term loan, and changed the issue prices on its first -and second-lien debt, and Paysafe set its U.S. and euro add-on term loan amounts and tightened the original issue discount on the U.S. tranche.

Furthermore, Mitchell International, Zelis Payments Buyer Inc., Alltech Inc., Mirion Technologies Inc. and NFP Corp. released price talk with launch, and Guidehouse RugsUSA (Runner Buyer Inc.) and American Tire Distributors Inc. joined the near-term primary calendar.

Pretium flexes

Pretium Packaging trimmed pricing on its $350 million eight-year second-lien term loan to Libor plus 675 basis points from Libor plus 725 bps and firmed the original issue discount at 99, the tight end of the 98.5 to 99 talk, according to a market source.

Pricing on the company’s $1.25 billion seven-year first-lien term loan remained at Libor plus 400 bps with a 0.5% Libor floor, but a 25 step-down at 4.5x first-lien net leverage was added and the discount was tightened to 99.5 from 99, the source said.

As before, the first-lien term loan has 101 soft call protection for six months, and the second-lien term loan still has a 0.5% Libor floor and call protection of 102 in year one and 101 in year two.

Previously in syndication, the first-lien term loan was upsized from $1.215 billion and the second-lien term loan was downsized from $365 million.

The company’s $1.7 billion of credit facilities also include a $100 million ABL revolver.

Pretium hits secondary

Recommitments from Pretium’s term loans were due at 12:30 p.m. ET on Wednesday and the debt began trading later in the day, with the first-lien term loan quoted at 99¾ bid, par ¼ offered and the second-lien term loan quoted at par bid, another source added.

Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. are leading the deal that will be used to fund the acquisition of Alpha Consolidated Holdings Inc. (Alpha Packaging) from Irving Place Capital and to refinance existing debt.

Pretium, a Clearlake Capital Group LP portfolio company, is a Chesterfield, Mo.-based designer and manufacturer of rigid plastic packaging solutions for specialized applications. Alpha is a St. Louis-based provider of sustainable packaging solutions.

CHG flexes, trades

CHG Healthcare Services modified price talk on its $1.58 billion seven-year first-lien term loan (B1/B) to a range of Libor plus 350 bps to 375 bps from a range of Libor plus 375 bps to 400 bps, and then finalized at Libor plus 350 bps, and revised the original issue discount to 99.5 from 99, a market source remarked.

As before, the first-lien term loan has a 25 bps step-down at 0.5x inside closing date first-lien leverage, a 0.5% Libor floor and 101 soft call protection for six months.

Commitments were due at noon ET on Wednesday and the term loan free to trade later in the day, with levels quoted at 99¾ bis, par ¼ offered, another source added.

The company is also getting a $430 million privately placed second-lien term loan.

Goldman Sachs Bank USA, JPMorgan Chase Bank, Barclays, BMO Capital Markets and Citigroup Global Markets Inc. are leading the deal that will be used with cash on the balance sheet to refinance existing debt and pay a dividend to shareholders.

CHG is a Salt Lake City-based locum tenens staffing company.

GIP finalizes, frees

GIP II Blue Holding set pricing on its $750 million seven-year senior secured term loan B (B1/BB-) at Libor plus 450 bps, the low end of the Libor plus 450 bps to 475 bps talk, removed a leverage-based margin step-down and firmed the original issue discount at 98.5, the wide end of the 98.5 to 99 talk, a market source said.

Also, the step-down to 50% for mandatory prepayments from asset sales will require 3.5x total net leverage at the borrower and 4x total net leverage at HESM Opco, revised from only the 3.5x test at the borrower, and the total net leverage test in the permitted change of control definition was changed to 4x at the borrower from 5x.

The term loan still has a 1% Libor floor and 101 hard call protection for one year.

Late in the day, the term loan started trading, with levels quoted at 99 bid, 99½ offered, a trader added.

Morgan Stanley Senior Funding Inc., Barclays, MUFG, Bank of Nova Scotia and SMBC are leading the deal that will be used to pay a special cash distribution to the holders of the borrower’s equity.

Closing is expected during the week of Sept. 27.

GIP directly and indirectly owns about 45% of Hess Midstream Operations LP (HESM Opco), a midstream infrastructure company. Hess Infrastructure Partners owns about 45% of HESM and public shareholders own the remaining roughly 10%.

American Bath tweaked, trades

American Bath lifted its fungible incremental covenant-lite first-lien term loan (B2/B-) due November 2027 to $174 million from $150 million and changed the original issue discount to 99.5 from 99, according to a market source.

Pricing on the incremental term loan is Libor plus 375 bps with a 0.5% Libor floor, in line with existing first-lien term loan pricing.

Recommitments were due at 11 a.m. ET on Wednesday and the incremental term loan broke during the session, with levels quoted at 99¾ bid, par offered, another source added.

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to fund tuck-in acquisitions and repay revolver borrowings.

American Bath is an Arlington, Tex.-based manufacturer of showers, bathtubs and related accessories.

Consilio tightens, breaks

Consilio adjusted the original issue discount on its fungible $160 million incremental first-lien term loan due May 2028 to 99.5 from 99, a market source remarked.

Like the existing first-lien term loan, the incremental term loan is priced at Libor plus 400 bps with a 0.5% Libor floor and has 101 soft call protection through November 2021.

Recommitments were due at 10:30 a.m. ET on Wednesday and the incremental term loan freed up in the afternoon, with levels quoted at 99 5/8 bid, 99 7/8 offered, another source added.

Credit Suisse Securities (USA) LLC and Stone Point are leading the deal that will be used to fund a tuck-in acquisition.

Consilio is a Washington, D.C.-based provider of eDiscovery and document review solutions.

BMC reworked

BMC Software raised its U.S. and euro add-on first-lien term loan B (B2/B-) due October 2025 to $690 million equivalent from $500 million equivalent, and outlined the tranche split at $250 million and €375 million, according to a market source.

Also, the original issue discount talk on the euro add-on first-lien term loan was revised to a range of 99.5 to 99.75 from a range of 99.25 to 99.5, and then firmed at 99.75, and the discount on the U.S. add-on first-lien term loan was set at 99.25, the tight end of the 99 to 99.25 talk.

Pricing on the U.S. add-on first-lien term loan is Libor plus 375 bps with a 0% Libor floor and pricing on the euro add-on first-lien term loan is Euribor plus 400 bps with a 0% floor, in line with existing U.S. and euro first-lien term loan pricing.

Furthermore, the company downsized its second-lien term loan (Caa2/CCC+) due March 2026 to $475 million from $665 million, cut pricing to Libor plus 550 bps from talk in the range of Libor plus 600 bps to 625 bps and removed the 25 bps step-down when senior secured net leverage is less than 5.9x, the source continued.

The second-lien term loan still has a 0.5% Libor floor, a discount of 99.5 and call protection of 102 in year one and 101 in year two.

BMC starts trading

Recommitments were scheduled to be due at 11 a.m. ET on Wednesday and the debt broke in the afternoon, with the U.S. first-lien term loan quoted at 99¼ bid, 99 5/8 offered, another source added.

Goldman Sachs Bank USA, KKR Capital Markets, Credit Suisse Securities (USA) LLC, Mizuho and Barclays are leading the deal that will be used to repay existing debt and pay transaction fees and expenses.

BMC is a Houston-based developer of software that provides system and service management solutions.

Mattress Firm tops OID

Mattress Firm’s $1.25 billion seven-year senior secured term loan B (B1/B+) broke for trading, with levels quoted at 99½ bid, par offered, a market source said.

Pricing on the term loan is Libor plus 425 bps with a 0.75% Libor floor and it was sold at an original issue discount of 99. The debt has 101 soft call protection for one year.

During syndication, the term loan was upsized from $1.1 billion, the spread firmed at the low end of the Libor plus 425 bps to 450 bps talk, the discount was set at the wide end of the 99 to 99.5 talk, the call protection was extended from six months, changes were made to the incremental free and clear basket, MFN, the interest coverage test for unsecured incremental equivalent/ratio debt, the restricted payments general basket and the EBITDA definition, the inside maturity basket and the permitted change of control were removed, and lender calls are required quarterly instead of annually.

Barclays, Goldman Sachs Bank USA and Jefferies LLC are leading the deal that will be used with $660 million of cash on hand to repay all existing debt, fund a $1.351 billion distribution to shareholders, which was increased with the recent term loan upsizing, and pay related fees and expenses.

Mattress Firm, a Houston-based mattress company, expects to close on the loan on Friday.

Arclin frees up

Arclin’s bank debt made its way into the secondary market as well, with the $685 million seven-year first-lien term loan (B2/B) and $100 million seven-year delayed-draw first-lien term loan (B2/B) quoted at 99¾ bid, par ¼ offered, and the $145 million eight-year second-lien term loan (Caa1/CCC+) quoted at 99¼ bid, par ¼ offered, according to a trader.

Pricing on the first-lien term loan debt is Libor plus 375 bps with a 0.5% Libor floor and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months. The delayed-draw term loan has a ticking fee of 1% per annum starting 90 days post close.

The second-lien term loan is priced at Libor plus 700 bps with a 0.5% Libor floor and was issued at a discount of 99. This tranche hard call protection of 102 in year one and 101 in year two.

During syndication, the funded first-lien term loan was upsized from $675 million, pricing on the first-lien debt was lowered from Libor plus 400 bps and the discount was tightened from 99, and the second-lien term loan was downsized from $155 million.

The company’s $1.03 billion of credit facilities also include a $100 million five-year revolver.

Arclin lead banks

RBC Capital Markets, Morgan Stanley Senior Funding Inc., Credit Suisse Securities (USA) LLC, BMO Capital Markets, KeyBank Capital Markets and ING are leading Arclin’s credit facilities.

Proceeds will be used to help fund the buyout of the company by The Jordan Co. LP from Lone Star Funds and repay in full an existing $690 million term loan B.

Closing is expected in the third quarter.

Arclin is a Roswell, Ga.-based manufacturer and formulator of surface overlays and specialty resins for the residential building products, industrial, furniture and non-residential construction markets.

Grinding Media trades

Grinding Media’s $925 million seven-year term loan B also broke, with levels quoted at 99¾ bid, par ¼ offered, a market source remarked.

Pricing on the term loan is Libor plus 400 bps with a 0.75% Libor floor and it was sold at an original issue discount of 99.5. The loan has 101 soft call protection for six months.

During syndication, the term loan was upsized from $875 million, pricing was reduced from talk in the range of Libor plus 425 bps to 450 bps and the discount was changed from 99.

JPMorgan Chase Bank, Morgan Stanley Senior Funding Inc., Ally and CIBC are leading the deal that will be used to redeem outstanding senior notes due 2023, pay a one-time dividend, which was increased with the term loan upsizing, and pay fees and expenses.

Grinding Media is a provider of mission-critical, consumable grinding media for primarily copper, gold and iron ore producers.

Southern Veterinary breaks

Southern Veterinary Partners’ fungible $200 million incremental first-lien term loan (B2/B-) due October 2027 began trading too, with levels quoted at par bid, par ½ offered, a market source said.

Pricing on the incremental first-lien term loan is Libor plus 400 bps with a 1% Libor floor, in line with existing first-lien term loan pricing, and the new debt was sold at an original issue discount of 99.75. The incremental first-lien term loan has 101 soft call protection through Oct. 5.

During syndication, the incremental term loan was upsized from $150 million and the discount finalized at the tight end of the 99.5 to 99.75 talk.

The company is also getting a $100 million privately placed delayed-draw first-lien term loan (B2/B-).

Jefferies LLC is leading the deal that will be used to fund the company’s acquisition pipeline.

Southern Veterinary is a Birmingham, Ala.-based provider of general practice veterinary services.

U.S. Anesthesia updated

Back in the primary market, U.S. Anesthesia Partners firmed pricing on its $1.6 billion seven-year first-lien term loan B (B2/B) at Libor plus 425 bps, the high end of the Libor plus 400 bps to 425 bps talk, and moved the original issue discount to 99.5 from 99, 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 leverage, a 0.5% Libor floor and 101 soft call protection for six months.

The company’s $350 million eight-year second-lien term loan (Caa2/CCC+) remained priced at Libor plus 750 bps with a 0.5% Libor floor and a discount of 98.5, and still has call protection of 102 in year one and 101 in year two.

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

Goldman Sachs Bank USA is the left lead on the deal that will be used with cash on the balance sheet to refinance existing debt and pay a dividend to shareholders.

U.S. Anesthesia is a Dallas-based physician-service organization that focuses on providing anesthesia services to patients.

J&J revised

J&J Gaming moved the original issue discount on its fungible $73 million incremental covenant-lite first-lien term loan (B2/B) due April 2028 to 99.875 from talk in the range of 99.5 to 99.75, according to a market source.

Pricing on the incremental term loan is Libor plus 400 ps with a 0.75% Libor floor, in line with existing first-lien term loan pricing, and the debt has 101 soft call protection through Oct. 26.

Commitments continued to be due at 5 p.m. ET on Wednesday, the source added.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to fund a tuck-in acquisition.

J&J is an operator of video gaming terminals in Illinois.

Team Services modified

Team Services lifted its fungible incremental first-lien term loan due December 2027 to $110 million from $90 million and tightened the original issue discount to 99 from 98, a market source remarked.

Additionally, the discount on the fungible $20 million incremental second-lien term loan due December 2028 was changed to 99 from 97, the source said.

Pricing on the incremental first-lien term loan is Libor plus 500 bps with a 1% Libor floor and pricing on the incremental second-lien term loan is Libor plus 900 bps with a 1% Libor floor, in line with existing first -and second-lien pricing.

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

Recommitments are due at 10 a.m. ET on Thursday, the source added.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to finance a tuck-in acquisition and the funds from the upsizing will add cash to the balance sheet.

Team Services is a provider of employment administration and risk management solutions that facilitate self-directed home care.

Paysafe tweaked

Paysafe set its add-on U.S. term loan size at $390 million and its add-on euro term loan size at €275 million, versus a description at launch of a $710 million equivalent add-on U.S. and euro term loan due June 2028 with tranching to be determined, a market source said.

And, the original issue discount on the U.S. add-on term loan was revised to 98.5 from 97.971, the source added.

Pricing on the U.S. add-on term loan is Libor plus 275 bps with a 0.5% Libor floor.

The euro add-on term loan is priced at Euribor plus 300 bps with a step-down to Euribor plus 275 bps at 3.7x leverage, a 0% floor and discount of 97.971.

The add-on term loans have a ticking fee of half the margin plus Libor/Euribor from days 31 to 60 and the full margin plus Libor/Euribor thereafter.

JPMorgan Chase Bank, PNC Bank and RBC Capital Markets are leading the deal that will be used for acquisition financing.

Paysafe is a London-based specialized payments platform.

Mitchell guidance

Mitchell International held its call on Wednesday afternoon and announced price talk on its $2.475 billion seven-year first-lien term loan B (B2/B-) and $525 million eight-year second-lien term loan (Caa2/CCC), according to a market source.

Talk on the first-lien term loan is Libor plus 375 bps to 400 bps with a 0.5% Libor floor, an original issue discount of 99 and 101 soft call protection for six months that resets upon a permitted change of control, and talk on the second-lien term loan is Libor plus 650 bps to 675 bps with a 0.5% Libor floor, a discount of 99 and call protection of 102 in year one and 101 in year two, the source said.

Commitments are due on Oct. 1.

Goldman Sachs Bank USA, KKR Capital Markets, SPC, Barclays, BofA Securities Inc., Wells Fargo Securities LLC, Golub, Truist, Citizens and Stifel are leading the deal, with Goldman the left lead on the first-lien loan and KKR the left lead on the second-lien loan.

The loans will be used with balance sheet cash to refinance debt and pay a dividend to shareholders.

Mitchell is a San Diego-based provider of claims software and technology-enabled solutions to the workers’ compensation and auto insurance industries.

Zelis proposed terms

Zelis came out with talk of Libor plus 350 bps with a 0% Libor floor and an original issue discount of 99 to 99.25 on its $550 million senior secured covenant-lite term loan B due Sept. 30, 2026 and a $300 million delayed-draw covenant-lite term loan due Sept. 30, 2026 shortly before its afternoon lender call began, a market source said.

The term loan debt (B2) has 101 soft call protection for six months, and the delayed-draw term loan ticking fees are half the margin from days 61 to 120 and the full margin thereafter.

Commitments are due at 10 a.m. ET on Oct. 1, the source added.

Morgan Stanley Senior Funding Inc. is the left lead on the deal.

The term loan B will be used to fund the acquisition of Sapphire Digital as well as transaction fees and expenses, and the delayed-draw term loan will be used to fund future acquisitions, capital expenditure, or other investments, and the payment of related fees and expenses.

Closing is expected in the fourth quarter.

Zelis is a Bedminster, N.J.-based health care and financial technology company. Sapphire is a provider of a health care consumer shopping and navigation platform.

Alltech sets talk

Alltech launched on its morning call its $400 million seven-year covenant-lite term loan B at talk of Libor plus 425 bps to 450 bps with a 0.5% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

The company’s $1.13 billion of credit facilities (B2/B) also include a $305 million revolver and a $425 million term loan A.

Commitments are due on Oct. 6, the source added.

Deutsche Bank Securities Inc., BofA Securities Inc., BMO Capital Markets, Goldman Sachs Bank USA, HSBC Securities (USA) Inc., Fifth Third and Rabobank are leading the deal that will be used to refinance existing debt.

Alltech is a Nicholasville, Ky.-based animal health and nutrition company.

Mirion launches

Mirion Technologies released talk of Libor plus 350 bps with a 0.5% Libor floor, an original issue discount of 99 and 101 soft call protection for six months on its $830 million seven-year first-lien term loan B (B) that launched with a call in the afternoon, a market source remarked.

Commitments are due on Oct. 5, the source added.

Goldman Sachs Bank USA, Citigroup Global Markets Inc., JPMorgan Chase Bank and Jefferies LLC are leading the deal, which will be used with balance sheet cash, cash held in trust and PIPE proceeds to pay down existing debt, add cash to balance sheet, and fund the business combination of GS Acquisition Holdings Corp. II with the ultimate parent company of Mirion Technologies Inc.

Closing is expected this year, subject to certain conditions, including regulatory approvals and approval by GS Acquisition stockholders.

Mirion, currently a Charterhouse Capital Partners LLP portfolio company, is an Atlanta-based provider of mission-critical radiation detection and measurement solutions.

NFP holds call

NFP hosted a lender call at 11 a.m. ET, launching a fungible $75 million add-on term loan B due Feb. 13, 2027 with an original issue discount of 98.79, a market source said.

Pricing on the add-on term loan is Libor plus 325 bps with a 0% Libor floor.

Commitments were due end of day on Wednesday, accelerated shortly after launch from noon ET on Thursday, the source added.

BofA Securities Inc., Barclays, JPMorgan Chase Bank, Morgan Stanley Senior Funding Inc., SMBC, TD Securities (USA) LLC, MUFG, CIBC, Regions Bank, UBS Investment Bank, KKR Capital Markets, Macquarie Capital (USA) Inc. and BMO Capital Markets are leading the deal that will be used with $225 million of senior notes to fund current or future acquisitions, and pay fees and expenses related to this offering.

NFP is a New York-based insurance broker and provider of brokerage, consulting and advisory services.

Guidehouse on deck

Guidehouse set a lender call for 1 p.m. ET on Monday to launch a $565 million incremental term loan B, according to a market source.

Commitments are due on Oct. 1, the source added.

RBC Capital Markets is leading the deal that will be used to fund the acquisition of Dovel Technologies from Macquarie Capital.

Closing is expected in the fourth quarter, subject to regulatory approvals and customary conditions.

Guidehouse, a portfolio company of Veritas Capital, is a provider of management consulting services to government clients. Dovel is a trusted government partner that blends deep domain expertise with advanced technologies to help customers solve complex problems that improve, protect, and save lives.

RugsUSA coming soon

RugsUSA scheduled a lender call for 2 p.m. ET on Thursday to launch a $500 million seven-year senior secured term loan B (B), a market source remarked.

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

Barclays, Jefferies LLC, Deutsche Bank Securities Inc. and Stifel are leading the deal that will be used to help fund the buyout of the company by Francisco Partners from Comvest Partners.

Closing is expected this year.

Koorosh Yaraghi, founder of RugsUSA, and Comvest Partners will retain a minority stake in the company.

RugsUSA is an e-commerce provider of area rugs and home decor products.

American Tire joins calendar

American Tire Distributors will hold a lender call at 1 p.m. ET on Thursday to launch a $1 billion seven-year term loan B (//B-), according to a market source.

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

BofA Securities Inc., Wells Fargo Securities LLC and Citigroup Global Markets Inc. are leading the deal that will be used to refinance existing debt.

American Tire is a tire distributor.

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