DiversiTech, Generation Bridge, Camping World, HighTower, Ensono, ICU, Circor, Paragon break

By Sara Rosenberg

New York, Dec 15 – DiversiTech (Icebox Holdco III Inc.) finalized pricing on its first- and second-lien term loans within talk, and Generation Bridge II LLC sweetened the call protection on its term loans and made some changes to documentation, and then these deals freed to trade on Wednesday.

Also, before breaking for trading, Camping World Holdings Inc. firmed the original issue discount on its incremental term loan B at the wide end of guidance, HighTower Holding LLC set the original issue discount on its add-on term loan at the tight end of guidance, and Ensono Holdings LLC firmed the issue price on its add-on first-lien term loan B.

Other deals to surface in the secondary market during the session included ICU Medical Inc., Circor International Inc., Paragon Films (Secure Acquisition Inc.) and Sevita.

In more happenings, FleetCor Technologies Inc. reduced the size of its add-on term loan B, and First Brands Group LLC increased the size of its incremental first-lien term loan.

DiversiTech updated

DiversiTech firmed the spread on its $725 million seven-year first-lien term loan B (B2/B-) and $150 million delayed-draw first-lien term loan (B2/B-) at Libor plus 375 basis points, the low end of the Libor plus 375 bps to 400 bps talk, and set the original issue discount at 99.5, the tight end of the 99 to 99.5 talk, according to a market source.

In addition, pricing on the company’s $240 million eight-year second-lien term loan (Caa2/CCC) finalized at Libor plus 675 bps, the high end of the Libor plus 650 bps to 675 bps guidance, and the call protection was modified to a 101 hard call for two years from a 101 hard call for one year, the source said.

The first-lien term loan debt has a 25 bps step-down at 0.5x inside closing first-lien net leverage, a 0.5% Libor floor and 101 soft call protection for six months, and the second-lien term loan has a 0.5% Libor floor and an original issue discount of 99.

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

The company’s $1.215 billion of senior secured credit facilities also include a $100 million revolver (B2/B-).

DiversiTech hits secondary

DiversiTech’s bank debt freed to trade late in the day on Wednesday, with the strip of funded and delayed-draw first-lien term loan debt quoted at 99 5/8 bid, par offered and the second-lien term loan quoted at 99½ bid, par ½ offered, a trader added.

RBC Capital Markets, UBS Investment Bank, Barclays, Societe Generale, Citizens Bank, Natixis and Santander are leading the deal that will be used with $1.32 billion of equity to fund the buyout of the company by Partners Group from Permira in a transaction with an enterprise value of $2.2 billion. Permira and management will remain minority investors in the company.

Closing is expected late this month.

DiversiTech is an Atlanta-based manufacturer of products and components for the heating, ventilation, air conditioning and refrigeration industry.

Generation revised, frees

Generation Bridge II extended the 101 soft call protection on its $325 million seven-year term loan B and $40 million seven-year term loan C to one year from six months, according to a market source.

Also, MFN was changed to 50 bps with no sunset from 50 bps with a 12-month sunset and some carve-outs were removed, incremental was reduced to $32.5 million from $50 million and a quarterly lender calls requirement was added, the source said.

Pricing on the senior secured term loans (Ba2/BB-) remained at Libor plus 500 bps with a 0.5% Libor floor and an original issue discount of 99, and the debt still has ticking fees of half the margin from days 46 to 90 and the full margin thereafter.

During the session, the term loans emerged in the secondary market, with levels quoted at 99¼ bid, par offered on the break before trading up to 99½ bid, par ¼ offered, another source added.

Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA and MUFG are leading the deal that will be used to fund the acquisition of power generation facilities from PSEG.

Generation Bridge is an operator of power generation facilities.

Camping finalized, trades

Camping World firmed the original issue discount on its fungible $300 million incremental term loan B due June 2028 (Ba3/BB-) at 98.56, the wide end of the 98.56 to 99 talk, a market source remarked.

The incremental term loan is priced at Libor plus 250 bps with a 0.75% Libor floor, in line with the existing term loan, and all of the debt is getting 101 soft call protection for six months.

In the afternoon, the incremental term loan broke for trading, with levels quoted at 98¾ bid, 99¼ offered, a trader added.

Goldman Sachs Bank USA and JPMorgan Chase Bank are leading the deal that will be used for general corporate purposes, including adding cash to the balance sheet to fund future acquisitions.

Closing is expected this month.

Camping World is a Lincolnshire, Ill.-based retailer of recreational vehicles and related products and services.

HighTower firmed, breaks

HighTower Holding set the original issue discount on its fungible $190 million add-on term loan due April 2028 at 99.25, the tight end of the 99 to 99.25 talk, a market source said.

Pricing on the add-on term loan is Libor plus 400 bps with a 0.75% Libor floor.

Commitments were due at 11 a.m. ET on Wednesday, accelerated from 5 p.m. ET on Wednesday, and the add-on term loan freed to trade later in the day, with levels quoted at 99 5/8 bid, par 1/8 offered, another source added.

JPMorgan Chase Bank is leading the deal that will be used for general corporate purposes, including permitted acquisitions.

HighTower is a Chicago-based registered investment adviser that owns and provides a suite of mission critical services to independent advisory practices.

Ensono sets OID, frees

Ensono Holdings finalized the original issue discount on its fungible $125 million add-on first-lien term loan B at 99.5, the wide end of revised talk of 99.5 to 99.75 but the tight end of initial talk of 99 to 99.5, according to a market source.

The add-on term loan is priced at Libor plus 400 bps with a 0.75% Libor floor, in line with the existing term loan.

Previously in syndication, the add-on term loan was upsized from $75 million.

On Wednesday, the add-on term loan broke for trading, with levels quoted at 99½ bid, par offered, another source added.

KKR Capital Markets is the left lead on the deal that will be used for acquisition financing.

Ensono is a Chicago-based hybrid IT services provider.

ICU starts trading

ICU Medical’s $850 million seven-year senior secured term loan B (Ba3/BB/BBB-) hit the secondary market, with levels quoted at 99¾ bid, par ¼ offered, according to a market source.

Pricing on the term loan is SOFR+CSA plus 250 bps with a 25 bps step-down at 2.75x total net leverage and a 0.5% floor. The debt was sold at an original issue discount of 99.5, and has 101 soft call protection for six months, and CSA of 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

During syndication, pricing on the term loan finalized at the low end of the SOFR+CSA plus 250 bps to 275 bps talk, the step-down was added and the discount was set at the tight end of the 99 to 99.5 talk.

Barclays, Wells Fargo Securities LLC, BofA Securities Inc., Bank of the West, Citigroup Global Markets Inc., MUFG, US Bank and KeyBanc Capital Markets are leading the deal that will be used to help fund the acquisition of Smiths Medical, a medical device company, from Smith Group plc for $1.85 billion in cash and the issuance of 2.5 million shares of common stock.

ICU Medical is a San Clemente, Calif.-based manufacturer of medical devices used in vascular therapy, critical care and oncology applications.

Circor tops OID

Circor International’s $530 million seven-year term loan began trading too, with levels quoted at 99¾ bid, par 1/8 offered, a market source said.

Pricing on the term loan is Libor plus 450 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.

During syndication, pricing on the term loan firmed at the low end of the Libor plus 450 bps to 475 bps talk and the discount was tightened from 99.

The company’s $630 million of credit facilities (B2/B-) also include a $100 million five-year revolver.

Truist Securities, Citizens Bank and KeyBanc Capital Markets are leading the deal that will be used to refinance existing debt and pay transaction related fees.

Circor is a Burlington, Mass.-based provider of mission critical flow control products and services for the industrial and aerospace & defense markets.

Paragon frees up

Paragon Films’ bank debt broke as well, with the $348 million seven-year first-lien term loan (B2/B-) quoted at 99¼ bid, par offered and the $100 million eight-year second-lien term loan (Caa2/CCC) quoted at 97½ bid, 98½ offered, according to a market source.

Pricing on the first-lien term loan, of which $45 million is a delayed-draw tranche, is Libor plus 500 bps with a 0.5% Libor floor and it was sold at an original issue discount of 99. The debt has 101 soft call protection for six months and delayed-draw ticking fees are half the margin from days 46 to 90 and the full margin thereafter.

The second-lien term loan is priced at Libor plus 775 bps with a 0.75% Libor floor and was issued at a discount of 97.5. This tranche has call protection of 103 in year one, 102 in year two and 101 in year three.

During syndication, the first-lien term loan was upsized from $345 million by increasing the funded piece, pricing firmed at the high end of the Libor plus 475 bps to 500 bps talk and delayed-draw ticking fees were changed from half the margin from days 61 to 120 and the full margin thereafter. Also, pricing on the second-lien term loan was set at the low end of the Libor plus 775 bps to 800 bps talk, the Libor floor was increased from 0.5%, the discount widened from 98.5, and the call protection was revised from 102 in year one and 101 in year two.

Paragon lead banks

Credit Suisse Securities (USA) LLC, BMO Capital Markets, KKR Capital Markets and RBC Capital Markets are leading Paragon Films’ term loans.

Proceeds will be used to help fund the buyout of the company by Rhone Capital.

Closing is expected this year.

Paragon is a Broken Arrow, Okla.-based manufacturer of ultra high-performance cast stretch films that are principally used to unitize product loads while in storage and transit.

Sevita breaks

Sevita’s fungible $200 million incremental first-lien term loan B due March 2028 (B3/B) also freed to trade, with levels quoted at 98¾ bid, 99¼ offered, a market source remarked.

Pricing on the incremental term loan is Libor plus 375 bps with 25 bps steps at 4.9x and 4.4x first-lien net leverage and a 0.75% Libor floor, in line with existing term loan B pricing. The incremental loan was sold at an original issue discount of 98.56 and has 101 soft call protection for six months.

Goldman Sachs Bank USA is leading the deal that will be used to fund the company’s acquisition pipeline.

Closing is expected this month.

Sevita, formerly known as the Mentor Network, is a Boston-based provider of home- and community-based health and human services for individuals with intellectual, developmental, physical or behavioral disabilities and other special needs.

FleetCor downsized

In other news, FleetCor Technologies trimmed its fungible add-on term loan B due April 2028 to $750 million from $1 billion, according to a market source.

As before, the add-on term loan is priced at Libor plus 175 bps with a 0% Libor floor and an original issue discount of 98.55, and has 101 soft call protection for six months.

Allocations are expected on Thursday, the source added.

BofA Securities Inc. is the left lead on the deal that will be used to repay revolver borrowings and for general corporate purposes, including acquisitions and potential share repurchases.

FleetCor is an Atlanta-based business payments company.

First Brands upsized

First Brands raised its fungible incremental senior secured first-lien term loan (//BB+) due March 30, 2027 to $250 million from $200 million, a market source said.

The incremental term loan is priced at Libor plus 500 bps with a 1% Libor floor, same as the existing term loan, and the has a par issue price and 101 soft call protection until March 30, 2022.

Commitments continued to be due at 1 p.m. ET on Wednesday, the source added.

Jefferies LLC, BofA Securities Inc. and Wells Fargo Securities LLC are leading the deal that will be used to fund cash to the balance sheet for general corporate purposes.

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

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