Savage Enterprises frees up above OID; MeridianLink/CRIF reworks first-lien loan terms

By Sara Rosenberg

New York, July 2 – Savage Enterprises LLC saw its term loan B surface in the secondary market during Monday’s market hours, and the debt was trading above its original issue discount.

Meanwhile, in the primary market, MeridianLink Inc./CRIF Lending Solutions raised the spread on its first-lien term loan, added a pricing step-down and extended the call protection, Infinite Electronics Inc. reduced the Libor floor on its first-lien term loan, and Stetson Midstream joined the near-term primary calendar.

Savage hits secondary

Savage Enterprises’ $1.1 billion seven-year senior secured term loan B (B1/B+) began trading on Monday, with levels quoted at 98˝ bid, 99 offered, according to a trader.

Pricing on the term loan is Libor plus 450 basis points with a 0% Libor floor and it was sold at an original issue discount of 98. The debt has 101 soft call protection for one year.

During syndication, pricing on the loan was flexed from talk in the range of Libor plus 325 bps to 350 bps, the discount widened from 99.5, the call protection was extended from six months, amortization was increased to 5% per annum in years one, two and three and 1% per annum thereafter, from 1% per annum, a net first-lien leverage covenant of 5.25 times was added to the originally covenant-light term loan, MFN was revised to 50 bps for life, the incremental was reduced to $225 million from $300 million, the EBITDA grower was eliminated, the ratio debt was lowered to 3 times from 3.5 times, the ABL was removed from the shared incremental, the available restricted payment amount was reduced to the greater of $30 million and 10% of EBITDA from $50 million and 15% of EBITDA, a 20% cap was placed on EBITDA addbacks, and quarterly calls with management discussion and analysis were made a requirement.

Savage getting revolver

In addition to the term loan, Savage Enterprises’ $1.5 billion of senior secured credit facilities include a $400 million ABL revolver.

Morgan Stanley Senior Funding Inc., Wells Fargo Securities LLC, PNC Capital Markets LLC and Citigroup Global Markets Inc. are leading the deal that will be used to finance the purchase of Bartlett and Co. and pay related fees and expenses.

Closing is expected in late July or early August.

Savage is a Salt Lake City-based supply chain provider. Bartlett is a Kansas City, Mo.-based grain and milling firm.

MeridianLink revised

Moving to the primary market, MeridianLink /CRIF lifted pricing on its $315 million seven-year covenant-light first-lien term loan (B2/B/BB) to Libor plus 400 bps from Libor plus 350 bps, added a step-down to Libor plus 375 bps at net first-lien leverage of 4.25 times and extended the 101 soft call protection to one year from six months, according to a market source.

Additionally, the MFN sunset was eliminated and the company will hold annual lender calls, the source said.

As before, the term loan has a 1% Libor floor and an original issue discount of 99.5.

The company’s $475 million of credit facilities also include a $35 million five-year revolver (B2/B/BB) and a $125 million eight-year privately placed second-lien term loan.

Antares Capital and Golub Capital are leading the deal that will be used to help fund the buyout of MeridianLink and CRIF by Thoma Bravo LLC.

Costa Mesa, Calif.-based MeridianLink and Atlanta-based CRIF provide mission-critical software platforms that allow financial institutions to automate loan and deposit origination workflows, improve loan decisioning and access data services providers.

Stetson readies deal

Stetson Midstream set a bank meeting for 1 p.m. ET in New York on July 9 to launch a $1 billion senior secured term loan B, a market source remarked.

Goldman Sachs Bank USA, Barclays, Bank of America Merrill Lynch, RBC Capital Markets and Credit Suisse Securities (USA) LLC are leading the deal that will be used to finance the acquisition of equity interests in ENLK, ENLC and EnLink Midstream Manager.

Stetson Midstream is a diversified U.S. midstream platform.

Infinite Electronics tweaked

Infinite Electronics modified the Libor floor on its $570 million seven-year first-lien term loan to 0% from 1%, according to a market source.

Pricing on the first-lien term loan remained at Libor plus 400 bps and there is still 101 soft call protection for six months.

The company is also getting a $35 million five-year revolver priced at Libor plus 400 bps with a 0% Libor floor, and a $170 million privately placed second-lien term loan priced.

Commitments in the existing $35 million revolver and roughly $462 million first-lien term loan received a 25 bps amendment fee, and the roughly $108 million of new term loan commitments were issued at a discount of 99.5.

Antares Capital, Golub Capital and Ares Management are leading the deal that will be used for a dividend recapitalization.

Infinite Electronics, a Genstar Capital portfolio company, is an Irvine, Calif.-based provider of engineering-grade RF, wired and wireless connectivity components and assemblies.

Nomad Foods closes

In other news, Nomad Foods Ltd. completed its acquisition of Aunt Bessie’s Ltd. from William Jackson & Son Ltd. for about €240 million, a news release said.

To help fund the transaction, Nomad Foods got a $300 million incremental first-lien term loan due May 2024 priced at Libor plus 225 bps with a 0% Libor floor, in line with the existing term loan, and issued at a discount of 99.75. The term debt has 101 soft call protection for six months.

During syndication, the discount on the incremental loan was tightened from 99.5 and the call protection was extended from expiring on June 20.

Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Deutsche Bank Securities Inc. and UBS Investment Bank led the deal.

U.K.-based Nomad Foods and U.K-based Aunt Bessie’s are frozen foods companies.

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