Ineos, Fertitta, ICON, Pacific Dental, First Brands, Teneo, Station, Bakelite loans updated

By Sara Rosenberg

New York, March 7 – On Thursday, Ineos Quattro finalized the size of its U.S. and euro add-on term loan B, and set the original issue discount on the euro piece at the tight end of guidance, Fertitta Entertainment LLC increased the size of its first-lien term loan, and ICON plc modified price talk on its term loan B.

Also, Pacific Dental Services LLC set the spread on its term loan B at the low end of guidance and tightened the original issue discount, and First Brands Group LLC upsized its U.S. and euro incremental term loans, changed the issue price on the U.S. tranche and firmed the discount on the euro tranche at the tight side of talk.

In addition, Teneo Holdings LLC (Thor FinCo LLC) raised the size of its first-lien term loan and finalized pricing at the low end of guidance, Station Casinos LLC (Red Rock Resorts) upsized its term loan B, trimmed the spread and set the issue price at the tight side of talk, and Bakelite Synthetics changed the original issue discount on its incremental first-lien term loan.

Furthermore, Vistra Zero Operating Co. LLC, LegalShield and Access CIG LLC released price talk with launch, and WS Audiology (Auris Lux III Sarl) and Truist Insurance Holdings LLC’s first-lien term loan B joined the near-term primary calendar.

Ineos finalized

Ineos Quattro set the size of its fungible add-on term loan B due March 2029 at €935 million equivalent U.S. and euro, compared to talk at launch of minimum €700 million equivalent U.S. and euro, with the U.S. tranche sized at $475 million and the euro tranche sized at €500 million, according to a market source.

In addition, the original issue discount on the euro add-on term loan finalized at 99, the tight end of the 98.5 to 99 talk, while the discount on the U.S. add-on term loan was unchanged from initial talk at 98, the source said.

Like the existing U.S. and euro term loan, the U.S. add-on term loan is priced at SOFR+10 bps CSA plus 425 bps with a 0% floor, the euro add-on term loan is priced at Euribor plus 450 bps with a 0% floor, and both add-ons (Ba3/BB/BB+) have 101 soft call protection until Nov. 14, 2024.

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

JPMorgan Chase Bank is the physical bookrunner on the U.S. loan, and BNP Paribas Securities Corp., Citigroup Global Markets Inc. and JPMorgan are the physical bookrunners on the euro loan. JPMorgan is the administrative agent.

Proceeds will be used by the chemicals company to extend a portion of its existing U.S. and euro term loan B borrowings due 2026, and otherwise partially refinance 2026 term loan Bs.

Fertitta upsized

Fertitta Entertainment raised its first-lien term loan due Jan. 27, 2029 to $3,542,250,000 from $3,242,250,000, through the addition of a fungible $300 million add-on term loan, a market source said.

Pricing on the term loan remained at SOFR plus 375 bps with a 0.5% floor, and the debt still has 101 soft call protection for six months.

The add-on will be used for general corporate purposes, while the remaining portion of the term loan will be used to reprice the company’s existing first-lien term loan down from SOFR plus 400 bps with a 0.5% floor.

The new money/add-on portion of the term loan has an original issue discount of 99.75, the source continued. The repricing still has a par issue price.

Commitments to the add-on were due at 3 p.m. ET on Thursday, and allocations are expected on Friday, the source added. Consents for the repricing were already due at 3 p.m. ET on Wednesday.

Jefferies LLC is leading the deal.

Fertitta Entertainment is a diversified gaming, restaurant, hospitality and entertainment company.

ICON tweaked

ICON changed price talk on its $2.976 billion term loan B due July 2028 to a range of SOFR plus 175 bps to 200 bps from just SOFR plus 200 bps, according to a market source.

The term loan still has no CSA, a 0.5% floor, a par issue price and 101 soft call protection for six months.

Recommitments are due at 10 a.m. ET on Friday, with allocations expected thereafter, the source added.

Citigroup Global Markets Inc. is the left lead on the deal that will be used to reprice an existing term loan B down from SOFR+CSA plus 225 bps with a 0.5% floor. Current CSA is ARRC standard of 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

Closing is expected during the week of March 11.

ICON is a Dublin-based provider of outsourced drug and device development and commercialization services to the pharmaceutical, biotechnology and medical device industries, and government and public health organizations.

Pacific Dental revised

Pacific Dental Services firmed pricing on its $1 billion seven-year term loan B (B1/B) at SOFR plus 325 bps, the low end of the SOFR plus 325 bps to 350 bps talk, and moved the original issue discount to 99.75 from 99.5, a market source remarked.

As before, the term loan has a 0% floor and 101 soft call protection for six months.

Recommitments were due at 5 p.m. ET on Thursday, the source added.

BNP Paribas Securities Corp. is the left lead and sole bookrunner on the deal, and a joint lead arranger with BMO Capital Markets, BofA Securities Inc., Citigroup Global Markets Inc., JPMorgan Chase Bank, KeyBanc Capital Markets and Goldman Sachs Bank USA. BNP is the administrative agent.

The term loan will be used to refinance existing debt, to pay a $100 million shareholder dividend, to fund an additional $100 million future dividend to the balance sheet, to pay transaction fees and expenses, and for general corporate purposes.

Pacific Dental is an Irvine, Calif.-based provider of business support services to affiliate dental practices.

First Brands reworked

First Brands Group lifted its fungible U.S. incremental first-lien term loan due March 30, 2027 to $525 million from $400 million and revised the original issue discount to 99.25 from 99, according to a market source.

Also, the company raised its fungible euro incremental first-lien term loan due March 30, 2027 to €225 million from €200 million and firmed the discount on at 99, the tight end of the 98.5 to 99 talk, the source said.

Pricing on the incremental U.S. loan is SOFR+CSA plus 500 bps with a 1% floor, and pricing on the incremental euro loan is Euribor plus 500 bps with a 1% floor, in line with existing U.S. and euro term loan pricing. CSA on the U.S. loan is 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

Commitments continue to be due at 10 a.m. ET on Friday, the source added.

Jefferies LLC is leading the deal that will be used to refinance the company’s existing 2024-I incremental first-lien term loan, to fund the purchase consideration for Factory Motor Parts Group, and to add cash to the balance sheet, the amount of which was increased with the upsizings.

First Brands is a Rochester, Mich.-based automotive aftermarket platform offering comprehensive solutions for consumable maintenance and mission-critical repair parts.

Teneo modified

Teneo Holdings increased its seven-year covenant-lite first-lien term loan to $710 million from $690 million and set pricing at SOFR plus 475 bps, the low end of the SOFR plus 475 bps to 500 bps talk, a market source said.

The term loan still has a 1% floor, an original issue discount of 99 and 101 soft call protection for six months.

The company’s $800 million of credit facilities (B2/B) also include a $90 million five-year revolver.

Recommitments were due at 5:30 p.m. ET on Thursday, with allocations expected on Friday, the source added. Closing is expected during the week of March 11.

Nomura Securities, HSBC Securities (USA) Inc., Deutsche Bank Securities Inc. and Santander are leading the deal that will be used to refinance the company’s existing credit facilities, to fund cash to the balance sheet, the amount of which was increased with the term loan upsizing, and to pay fees and expenses.

Teneo is a New York-based CEO advisory firm.

Station Casinos updated

Station Casinos upsized its term loan B due 2031 to $1.57 billion from $1.32 billion, reduced pricing to SOFR plus 225 bps from SOFR plus 250 bps and firmed the original issue discount at 99.5, the tight end of the 99 to 99.5 talk, according to market sources.

The term loan still has a 0% floor and 101 soft call protection for six months.

JPMorgan Chase Bank is the left lead on the deal. Deutsche Bank Securities Inc. is the administrative agent.

The term loan B and $500 million of senior notes, downsized from $750 million, will be used to refinance an existing $1.45 billion term loan B due 2027, to refinance $512 million of outstanding borrowings under an existing revolving credit facility due 2025 and to pay down an existing $154 million term loan A due 2025.

Station Casinos is a Las Vegas-based gaming, development and management company.

Bakelite tightened

Bakelite Synthetics modified the original issue discount on its fungible $110 million incremental first-lien term loan (B1/BB-/BB+) due May 2029 to 99.5 from talk in the range of 99 to 99.25, a market source remarked.

Pricing on the incremental term loan is SOFR+CSA plus 400 bps with a 0.5% floor, in line with existing term loan pricing.

Commitments are due at 10:30 a.m. ET on Friday, accelerated from noon ET on Monday, the source added.

Goldman Sachs Bank USA is the left lead on the deal that will be used to fund a distribution to shareholders, pay down drawn portions of the ABL and pay related fees and expenses.

Black Diamond and Investindustrial are the sponsors.

Bakelite is an Atlanta-based producer of thermoset specialty resins, solutions and engineered thermoset molding compounds.

Vistra Zero guidance

Vistra Zero held its lender call on Thursday afternoon and announced talk on its $700 million seven-year senior secured covenant-lite term loan B (Ba2/BBB-/BB) at SOFR plus 300 bps with a 0% floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

Commitments are due at 5 p.m. ET on March 19, the source added.

Citigroup Global Markets Inc. is leading the deal that will be used for general corporate purposes, including acquiring the projects from other Vistra entities.

Vistra Zero is a Vistra Corp. subsidiary that holds a 1.4 GW portfolio of six unlevered, operating, solar generation and energy storage assets.

LegalShield talk

LegalShield launched on its afternoon call its fungible $125 million add-on first-lien term loan (B3) due December 2028 with original issue discount talk 99.5, a market source said.

Pricing on the term loan is SOFR+CSA plus 375 bps with a 0.5% floor. CSA is ARRC standard of 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

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

Commitments are due at noon ET on Wednesday.

RBC Capital Markets and Stone Point Capital Markets are leading the deal that will be used to repay a portion of the company’s existing second-lien debt and to pay related fees and expenses.

Pro forma for the transaction, the first-lien term loan will total $1.108 billion.

LegalShield, backed by Stone Point Capital, MidOcean Partners and Further Global Capital Management, is an Ada, Okla.-based provider of legal and identity theft protection plans.

Access CIG launches

Access CIG came to market during the session with a fungible $125 million incremental first-lien term loan due Aug. 18, 2028 talked with an original issue discount of 99.25 to 99.5, a market source remarked.

Pricing on the incremental term loan is SOFR plus 500 bps with a 0.5% floor, and the incremental and existing first-lien term loan are getting 101 soft call protection for one year, the source added.

Commitments are due at noon ET on Wednesday.

Jefferies LLC, Macquarie Capital (USA) Inc., Golub, Nomura and KKR Capital Markets are leading the deal that will be used to repay in full the company’s existing second-lien term loan.

Pro forma for the transaction, the first-lien term loan will total about $1.447 billion.

Access CIG is a Livermore, Calif.-based provider of records and information management solutions for highly regulated industries, including health care, financial services, law, consumer, and materials & industries.

WS Audiology on deck

WS Audiology set a lender call for 10 a.m. ET on Monday and small group meetings on Monday and Tuesday to launch a €2.768 billion equivalent U.S. and euro term loan B (B-) due February 2029, according to a market source.

The U.S. tranche has a minimum size of $500 million and the euro tranche has a minimum size of €1 billion, and both tranches have 101 soft call protection for six months.

Commitments for the U.S. loan are due at 5 p.m. ET on March 14 and commitments for the euro loan are due at noon ET on March 14, the source added.

Goldman Sachs is the physical bookrunner on the U.S. loan. Deutsche Bank, Danske Bank and JPMorgan Chase Bank are the physical bookrunners on the euro loan. HSBC Securities, Jyske Bank, Mizuho, Nordea, Nykredit, RBC Capital Markets, Santander and UBS Investment Bank are passive bookrunners. Citigroup Global Markets Inc. and MUFG are mandated lead arrangers. Deutsche Bank is the agent.

WS Audiology extending

WS Audiology will use the new term loans to extend existing $1.2 billion and €2.1 billion term loans due February 2026.

In connection with the transaction, the company will get a €500 million equity contribution to reduce the outstanding term loan debt by €360 million, to repay revolver borrowings and to pay transaction costs, and a €525 million privately placed Holdco PIK financing to refinance its existing second-lien term loan.

WS Audiology is a Denmark and Singapore-based provider of hearing aids and solutions for people with hearing challenges.

Truist readies term B

Truist Insurance scheduled a lender call for 10 a.m. ET on Friday to launch its $4 billion first-lien term loan B, according to a market source.

JPMorgan Chase Bank, Morgan Stanley Senior Funding Inc., Stone Point, BofA Securities Inc., Wells Fargo Securities LLC, Truist Securities Inc., Barclays, RBC Capital Markets, Citigroup Global Markets Inc., Goldman Sachs Bank USA, KKR Capital Markets, BNP Paribas Securities Corp., Mizuho and TD Securities (USA) LLC are leading the term loan B.

The company also plans on getting a $1.175 billion revolver.

Truist second-lien

As previously reported, Truist Insurance is already in market via left lead Stone Point with a $1.9 billion eight-year second-lien term loan priced at SOFR plus 475 bps with a 0% floor and a par issue price. This tranche has hard call protection of 102 in year one and 101 in year two.

During syndication of the second-lien term loan, pricing was lowered from SOFR plus 500 bps and the issue price firmed at the tight end of the 99.5 to par talk.

Recommitments for the second-lien term loan are due at 10 a.m. ET on Friday, with allocations expected shortly thereafter.

The debt financing will be used to help fund the buyout of Truist Insurance by Stone Point Capital and Clayton, Dubilier & Rice from Truist Financial Corp. at an implied enterprise value of $15.5 billion. Mubadala Investment Co. and other co-investors are also participating in the investment.

Closing is expected next quarter, subject to regulatory approvals and other customary conditions.

Truist Insurance is a Charlotte, N.C.-based insurance brokerage.

AppLovin deadline

In other news, AppLovin Corp. set a commitment deadline of 10 a.m. ET on Monday for its $1.474 billion term loan B due October 2028 and $2.093 billion term loan B due August 2030, a market source said. Previously it was known that commitments would be due early in the week of March 11, but specifics were unavailable.

The 2028 term loan will be used to reprice an existing term loan due October 2028 down from SOFR plus 310 bps with a 0.5% floor. Of the total 2030 term loan amount, $1.493 billion is to reprice an existing term loan B due August 2030 down from SOFR plus 310 bps with a 0.5% floor and $600 million is a fungible add-on that will be used to pay down revolver borrowings.

Talk on the 2028 and 2030 term loans (Ba3/BB+) is SOFR plus 250 bps to 275 bps with a 0.5% floor and 101 soft call protection for six months. The 2028 term loan and repricing portion of the 2030 term loan are talked with a par issue price, and the 2030 add-on term loan is talked with an original issue discount of 99.5 to 99.75.

Goldman Sachs Bank USA is the left lead on the deal.

AppLovin is a Palo Alto, Calif.-based provider of marketing software.

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