Mavis, Consilio, Lonza, Cable One, Drive Chassis, Cimpress, LaserShip, PQ, Surgery break

By Sara Rosenberg

New York, April 30 – Mavis Tire Express Services TopCo LP raised pricing on its first-lien term loan, Consilio (Skipoma Merger Sub Inc.) finalized the spread on its first-lien term loan at the low end of guidance, and Lonza Specialty Ingredients shifted some funds between its U.S. and euro term loans and finalized pricing, and then these deals freed to trade on Friday.

Also, before breaking for trading, Cable One Inc. upsized its term loan B-4 and firmed pricing at the low end of talk, Drive Chassis Holdco LLC set the spread on its second-lien term loan at the tight end of guidance, Cimpress plc finalized terms on its U.S. and euro loans, and LaserShip (ASP LS Acquisition Corp.) firmed pricing on its first-and second-lien term loans and modified the issue price on the first-lien tranche.

Other deals to make their way into the secondary market during the session included PQ Performance Chemicals and Surgery Partners Inc. (Surgery Center Holdings Inc.).

In other news, TKC Holdings Inc. reduced the size of its first-lien term loan, and widened the spread, floor and original issue discount, McAfee Enterprise upsized its first-lien term loan and downsized its second-lien term loan, Tibco Software Inc. firmed issue price on its incremental term loan within talk and Club Car joined the near-term primary calendar.

Mavis flexes, frees

Mavis Tire increased pricing on its $1.915 billion seven-year senior secured first-lien term loan to Libor plus 400 basis points from Libor plus 375 bps, and left the 0.75% Libor floor, original issue discount of 99.5 and 101 soft call protection for six months unchanged, a market source remarked.

The company’s $2.115 billion of credit facilities (B2/B-) also include a $200 million five-year revolver.

On Friday, the term loan broke for trading, with levels quoted at 99¾ bid, par offered, a trader added.

Jefferies LLC, Apollo, Ares, BofA Securities Inc., KKR Capital Markets, Blackstone, Golub Capital and Stifel are leading the deal that will be used with $720 million of senior notes to help fund the buyout of the company by an investor group led by BayPine LP in partnership with TSG Consumer Partners LP. Golden Gate Capital, Mavis’ current lead financial partner, will retain a minority interest in the company.

Closing is expected in the second quarter.

Mavis is a Millwood, N.Y.-based tire retailer and automotive aftermarket service provider.

Consilio updated, trades

Consilio finalized pricing on its $1.01 billion seven-year covenant-lite first-lien term loan (B2/B-) at Libor plus 400 bps, the low end of the Libor plus 400 bps to 425 bps talk, and left the 0.5% Libor floor, original issue discount of 99 and 101 soft call protection for six months unchanged, according to a market source.

Recommitments were due at 10:30 a.m. ET on Friday and the term loan freed up later in the day, with levels quoted at 99 1/8 bid, 99 5/8 offered, another source added.

Credit Suisse Securities (USA) LLC, Stone Point, BofA Securities Inc., KKR Capital Markets, Truist, Blackstone and Goldman Sachs Bank USA are leading the deal that will be used with a $300 million privately placed second-lien term loan to fund the acquisitions of Consilio from GI Partners and Xact Data Discovery from JLL Partners by Stone Point Capital LLC and Aquiline Capital Partners LLC, and merger of the two companies.

Closing is subject to customary conditions, including regulatory approval.

Consilio is a Washington, D.C.-based provider of eDiscovery, document review, risk management and legal consulting services. Xact Data is a Mission, Kan.-based provider of eDiscovery, data management and managed review services.

Lonza tweaked

Lonza Specialty Ingredients trimmed its U.S. seven-year term loan B to $1.095 billion from $1.13 billion and set pricing at Libor plus 400 bps, the low end of the Libor plus 400 bps to 425 bps talk, and lifted its euro seven-year term loan B to €750 million from €725 million and firmed the spread at Euribor plus 400 bps, the high end of the Euribor plus 375 bps to 400 bps talk, a market source said.

The U.S. term loan still has a 25 bps step-down at 4.5x senior secured net leverage, a 0.75% Libor floor and an original issue discount of 99, the euro term loan still has 25 bps step-downs at 4.5x and 4.0x senior secured net leverage, a 0% floor and a discount of 99.5, and both term loans (B2/B) still have 101 soft call protection for six months.

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 hits secondary

During the session, Lonza’s U.S. term loan B broke for trading and levels were quoted at 99¼ bid, par offered, another source added.

The loans will be used with $350 million of senior secured notes and €460 million of senior notes to help fund the buyout of the company by Bain Capital Private Equity and Cinven from Lonza AG for a total enterprise value of CHF 4.2 billion as well as to pay for related fees and expenses.

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

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

Cable One upsizes, breaks

Cable One raised its seven-year covenant-lite term loan B-4 (Ba2/BB+) to $800 million from $600 million and finalized pricing at Libor plus 200 bps, the low end of the Libor plus 200 bps to 225 bps talk, according to a market source.

The term loan still has a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

Recommitments were due at 12:30 p.m. ET on Friday and the term loan freed up later in the day, with levels quoted at 99¾ bid, another source added.

Wells Fargo Securities LLC, JPMorgan Chase Bank, BofA Securities Inc., Credit Suisse Securities (USA) LLC, TD Securities (USA) LLC, Truist and U.S. Bank are leading the deal that will be used to repay the $589 million term loan B that can be assumed with the purchase of Hargray Communications, a regional communications provider, to pay related fees and expenses and for general corporate purposes.

Closing on the acquisition is expected this quarter, subject to regulatory approvals and other conditions.

Cable One is a Phoenix-based broadband communications provider.

Drive sets terms, trades

Drive Chassis firmed pricing on its $825 million senior secured covenant-lite second-lien term loan (Caa1/B) due April 10, 2026 at Libor plus 700 bps, the low end of the Libor plus 700 bps to 725 bps talk, according to a market source.

The term loan still has a 25 bps step-down when total secured net leverage is less than or equal to 4.75x, a 0% Libor floor, a par issue price, and 101 hard call protection until April 10, 2022.

In the afternoon, the term loan started trading, with levels quoted at par ½ bid, 101¼ offered, another source added.

Citigroup Global Markets Inc. is leading the deal that will be used to reprice an existing second-lien term loan down from Libor plus 825 bps with a 0% Libor floor.

Closing is expected on Wednesday.

Drive Chassis is a Charlotte, N.C.-based provider of chassis equipment to the intermodal transportation industry.

Cimpress finalized, breaks

Cimpress set pricing on its $795 million seven-year covenant-lite term loan B at Libor plus 350 bps, the low end of the Libor plus 350 bps to 375 bps talk, and finalized the original issue discount at 99, the wide end of the 99 to 99.5 talk, a market source said.

The company also firmed pricing on its €300 million seven-year covenant-lite term loan B at Euribor plus 350 bps, the low end of the Euribor plus 350 bps to 375 bps guidance, the source said.

As before, the U.S. term loan has a 0.5% Libor floor, the euro term loan has a 0% floor and a discount of 99.5, and both term loans have 101 soft call protection for six months.

On Friday, the U.S. loan freed to trade, with levels quoted at 99¼ bid, 99¾ offered, another source added.

The company’s senior secured credit facilities (Ba3/BB) also include a $250 million five-year revolver.

JPMorgan Chase Bank is the left lead on the deal that will be used to redeem all of the company’s 12% second-lien notes due 2025, repay revolver drawings, repay a term loan A and add cash to the balance sheet.

Closing and funding is expected on May 17.

Cimpress is a Dundalk, Ireland-based investor in and builder of businesses.

LaserShip revised

LaserShip finalized pricing on its $675 million seven-year first-lien term loan (B2/B-) at Libor plus 450 bps, the high end of the Libor plus 425 bps to 450 bps, set the step-downs at one 25 bps step-down at 0.75x inside closing date first-lien leverage and one 25 bps step-down following an initial public offering, instead of two leverage-based step-downs and an IPO-based step-down, and tightened the original issue discount to 99.5 from 99, according to a market source.

Additionally, the company firmed pricing on its $205 million eight-year second-lien term loan (Caa2/CCC) at Libor plus 750 bps, the low end of the Libor plus 750 bps to 775 bps talk, the source said.

The first-lien term loan still has a 0.75% Libor floor and 101 soft call protection for six months, and the second-lien term loan still has a 25 bps step-down following an initial public offering, a 0.75% Libor floor, a discount of 98.5 and hard call protection of 102 in year one and 101 in year two.

The company’s $955 million of senior secured credit facilities include a $75 million five-year revolver (B2/B-) as well.

LaserShip tops OID

LaserShip’s bank debt began trading during the session, with the first-lien term loan quoted at 99¾ bid, par ¼ offered, a trader added.

Jefferies LLC, RBC Capital Markets, UBS Investment Bank, Goldman Sachs Bank USA and Natixis are leading the deal.

Proceeds 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.

PQ frees up

PQ Performance Chemicals’ $750 million seven-year first-lien term loan (B1/B+) also made its way into the secondary market, with levels quoted at par bid, par ½ offered, a trader remarked.

Pricing on the term loan is Libor plus 350 bps with a 25 bps step-down at 0.5x inside closing date first-lien net leverage and a 0.75% Libor floor. The loan was sold at an original issue discount of 99.5, and has 101 soft call protection for six months and a ticking fee of half the margin from days 46 to 90 and the full margin thereafter.

During syndication, pricing on the loan was cut from talk in the range of Libor plus 375 bps to 400 bps, a step-down at 1x inside closing date first-lien net leverage was removed and the discount was tightened from 99.

Goldman Sachs Bank USA, Barclays, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., RBC Capital Markets, BMO Capital Markets, KeyBanc Capital Markets, Macquarie Capital (USA) Inc. and BNP Paribas Securities Corp. are leading the deal.

Proceeds will be used with equity to fund the buyout of the company by a partnership established by Koch Minerals & Trading LLC and Cerberus Capital Management LP from PQ Group Holdings Inc. for $1.1 billion.

Closing is expected this year.

PQ Performance Chemicals is a producer of sodium silicates, specialty silicas and zeolites.

Surgery hits secondary

Surgery Partners’ roughly $1.42 billion amended and extended senior secured covenant-lite first-lien term loan (B1/B-) due Aug. 31, 2026 and fungible $125 million senior secured incremental covenant-lite first-lien term loan (B1/B-) due Aug. 31, 2026 broke for trading too, with levels quoted at 99 ¾ bid, par offered, a trader said.

Pricing on the term loan debt is Libor plus 375 bps with a 0.75% Libor floor. The amended and extended tranche was issued at par with a 25 bps amendment fee, and the incremental tranche 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 incremental term loan was increased from Libor plus 325 bps, the Libor floor was reduced from 1%, the discount was set at the tight end of the 99.27 to 99.5 talk and maturity was extended from August 2024. Also, the extension of the existing term loan was added to the transaction.

Surgery lead banks

Jefferies LLC, Barclays, JPMorgan Chase Bank, KKR Capital Markets and Macquarie Capital (USA) Inc. are leading Surgery Partners’ debt.

The incremental term loan will be used to refinance an existing non-fungible $119.1 million add-on first-lien term loan priced at Libor plus 800 bps, and to pay applicable prepayment premiums and transaction related fees and expenses, and the extended term loan is extending an existing term loan by two years and revising pricing from the current rate of Libor plus 325 bps with a 1% Libor floor.

Surgery Partners is a Brentwood, Tenn.-based operator of short-stay surgical facilities.

TKC reworked

In more happenings, TKC Holdings trimmed its seven-year first-lien term loan (B1/B) to $525 million from a revised amount of $925 million and an initial amount of $1.125 billion, raised pricing to Libor plus 550 bps from talk in the range of Libor plus 475 bps to 500 bps, increased the Libor floor to 1% from 0.75% and revised the original issue discount to 98 from 98.5, according to a market source.

Additionally, the company made some lender friendly documentation changes, the source said.

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

The company’s now $575 million of credit facilities also include a $50 million five-year revolver.

Jefferies LLC is leading the deal that will be used to refinance the company’s existing capital structure.

The company is also issuing $400 million of seven-year senior secured first-lien notes and $700 million of eight-year senior unsecured notes for the refinancing. The secured notes were added with this term loan downsizing and the unsecured notes were upsized from $500 million with the prior term loan downsizing.

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

McAfee retranches

McAfee Enterprise increased its seven-year first-lien term loan to $2.25 billion from $2.175 billion and scaled back its eight-year second-lien term loan to $575 million from $600 million, a market source remarked.

The first-lien term loan is still priced at Libor plus 500 bps with a 0.75% Libor floor and an original issue discount of 99, and has 101 soft call protection for six months, and the second-lien term loan is still priced at Libor plus 825 bps with a 0.75% Libor floor and a discount of 98.5, and has call protection of 102 in year one and 101 in year two.

UBS Investment Bank, Jefferies LLC, BofA Securities Inc. and HSBC Securities (USA) Inc. are leading the deal that will be used to help fund the buyout of the company by a consortium led by Symphony Technology Group from McAfee Corp. for $4 billion.

Closing is expected in July, subject to customary regulatory approvals and conditions.

McAfee Enterprise is a provider of device-to-cloud cybersecurity solutions. The company generated net revenue of $1.3 billion in the fiscal year 2020.

Tibco updated

Tibco Software set the original issue discount on its fungible $110 million incremental term loan at 99, within the 98.8 to 99.25 talk, a market source said.

Pricing on the incremental term loan is Libor plus 375 basis points with a 0% Libor floor.

JPMorgan Chase Bank is leading the deal that will be used to refinance a privately placed loan.

Tibco is a Palo Alto, Calif.-based infrastructure and business intelligence software company.

Club Car on deck

Club Car set a lender call for 1 p.m. ET on Monday to launch a $775 million senior secured term loan (B2), according to a market source.

Goldman Sachs Bank USA, BofA Securities Inc., Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC and Citigroup Global Markets Inc. are leading the loan that will be used with $450 million of other unsecured debt to help fund the buyout of the company by Platinum Equity from Ingersoll Rand in a transaction valued at about $1.7 billion.

Closing is expected in the third quarter, subject to standard conditions.

Club Car is an Augusta, Ga.-based manufacturer of golf cars, utility, personal transportation and other low-speed vehicles, including all-electric models, and related aftermarket parts and services.

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