Hertz, EverCommerce break; Great Canadian, AccentCare revised; Madison, Culligan accelerated

By Sara Rosenberg

New York, June 14 – Hertz Corp. lowered pricing on its term loans, revised the step-down and tightened the original issue discount before the debt made its way into the secondary market on Monday, and EverCommerce Inc.’s term loan freed to trade as well.

In other news, Great Canadian Gaming Corp. increased the size of its term loan B, AccentCare Inc. reduced the spread on its term loan B., and Madison IAQ, Culligan (Osmosis Debt Merger Sub Inc.), Orbcomm Inc. and Signify Health LLC accelerated the commitment deadlines on their loan transactions.

Also, Aspen Dental Management, BGIS (Brookfield Global Integrated Solutions), J.D. Power, Traeger (TGP Holdings III LLC), ArchKey Solutions (ArchKey Holdings Inc.), Milk Specialties Co. and Grosvenor Capital Management Holdings LLLP released price talk with launch.

Furthermore, Kantar, Dynata, International-Matex Tank Terminals (ITT Holdings LLC), Gibson Brands Inc., EAB and Medforth joined this week’s primary calendar.

Hertz modified, trades

Hertz trimmed pricing on its $1.3 billion seven-year senior secured first-lien term loan B (B2/B+) and $245 million seven-year senior secured first-lien term loan C (B2/BB-) to Libor plus 350 basis points from talk in the range of Libor plus 375 bps to 400 bps, according to a market source.

The company also changed the 25 bps step-down in pricing on the term loans to at 3.5x gross corporate leverage from at 3.5x net corporate leverage, and adjusted the original issue discount to 99.5 from 99, the source said.

As before, the term loans have a 0.5% Libor floor and 101 soft call protection for six months.

Recommitments were due at 11 a.m. ET on Monday and the loans began trading later in the day, with the strip of term loan B and term loan C debt quoted at 99¾ bid, par ¼ offered, another source added.

Barclays is the left lead on the deal that will be used to help fund the company’s plan of reorganization.

Hertz is an Estero, Fla.-based car rental company.

EverCommerce frees up

EverCommerce’s $350 million seven-year term loan broke for trading, with levels quoted at par 1/8 bid, par ½ offered, a market source said.

Pricing on the term loan is Libor plus 325 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, the term loan was upsized from $300 million, pricing was trimmed from talk in the range of Libor plus 350 bps to 375 bps and the discount was revised from 99.

KKR Capital Markets and RBC Capital Markets are leading the deal that will be used for a recapitalization in connection with the company’s initial public offering of common stock.

EverCommerce is a Denver-based service commerce platform.

Great Canadian upsizes

Back in the primary market, Great Canadian Gaming raised its covenant-lite term loan B (B2/B+/BB+) due Nov. 1, 2026 to U.S. dollar equivalent C$875 million from U.S. dollar equivalent C$650 million and reduced the previously planned size of its senior secured notes offering to C$425 million U.S. dollar equivalent, according to a market source.

In addition, the commitment deadline on the term loan was moved up to noon ET on Wednesday from noon ET on Thursday, the source added.

Talk on the term loan remained at Libor plus 450 bps to 475 bps with a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

Deutsche Bank Securities Inc., Barclays, TD Securities (USA) LLC, Macquarie Capital (USA) Inc., BMO Capital Markets and Citizens Bank are leading the deal that will be used to help fund the buyout of the company by Apollo Global Management Inc. for C$45.00 in cash per share.

Great Canadian Gaming is an Ontario-based gaming, entertainment and hospitality company.

AccentCare trims pricing

AccentCare cut pricing on its $873.4 million term loan B (B-) due June 2026 to Libor plus 400 bps from talk in the range of Libor plus 425 bps to 450 bps, a market source remarked.

The term loan still has a 0% Libor floor, a par issue price and 101 soft call protection for six months.

JPMorgan Chase Bank is leading the deal that will be used to combine two term loans into one tranche through a refinancing/repricing.

AccentCare, an Advent International portfolio company, is a Dallas-based provider of post-acute health care.

Madison IAQ accelerated

Madison IAQ moved up the commitment deadline for its $1.925 billion seven-year first-lien term loan (B1/B) to 5 p.m. ET on Tuesday from 5 p.m. ET on Wednesday, according to a market source.

Talk on the first-lien term loan is Libor plus 350 bps to 375 bps with a 0.5% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

Goldman Sachs Bank USA, Citigroup Global Markets Inc., CIBC, Barclays, BofA Securities Inc., HSBC Securities (USA) Inc., MUFG, Capital One, Golub and Stifel are leading the deal that will be used with $600 million of senior secured notes, $885 million of senior notes and equity from Madison Industries to fund the acquisition of Nortek Air from Melrose Industries plc and refinance Madison IAQ’s existing debt.

Closing is expected this summer.

Madison IAQ is a provider of indoor air quality solutions. Nortek Air is a provider of critical air management, thermal and HVAC solutions.

Culligan tweaks timing

Culligan changed the commitment deadline for its $2 billion seven-year covenant-lite first-lien term loan B and $250 million delayed-draw covenant-lite term loan to 5 p.m. ET on Wednesday from noon ET on Friday, a market source said.

Talk on the term loan debt is Libor plus 425 bps to 450 bps with 25 bps step-downs at 0.5x and 1x inside closing first-lien net leverage, a 0.5% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months.

Delayed-draw term loan ticking fees are half the margin from days 46 to 90 and the full margin thereafter.

The company’s $2.475 billion of senior secured credit facilities also include a $225 million five-year revolver.

Morgan Stanley Senior Funding Inc. and Citigroup Global Markets Inc. are leading the deal that will be used to fund the acquisition of a majority interest in the company by BDT Capital Partners LLC from Advent International and Centerbridge Partners LP. Advent will reinvest to acquire a minority stake in the business.

Culligan is a Rosemont, Ill.-based provider of water treatment products and services.

Orbcomm moves deadline

Orbcomm accelerated the commitment deadline for its $360 million seven-year covenant-lite first-lien term loan to 5 p.m. ET on Wednesday from 5 p.m. ET on Thursday, according to a market source.

Talk on the term loan is Libor plus 450 bps to 475 bps with a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

The company’s $410 million of credit facilities (B3/B) also include a $50 million revolver.

Credit Suisse Securities (USA) LLC, Jefferies LLC, Truist and Citizens Bank are leading the deal that will be used with $796.6 million of equity to fund the buyout of the company by GI Partners for $11.50 in cash per outstanding share of common stock. The transaction is valued at $1.1 billion, including net debt.

Closing is expected in the second half of the year, subject to customary conditions, including approval by stockholders and the receipt of required regulatory approvals.

Orbcomm is a Rochelle Park, N.J.-based provider of Internet of Things (IoT) solutions.

Signify accelerated

Signify Health moved up the commitment deadline for its $350 million seven-year first-lien term loan B (B1/B) to noon ET on Wednesday from 5 p.m. ET on Thursday, a market source remarked.

The term loan is talked at Libor plus 325 bps to 350 bps with a 0.5% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

Barclays, JPMorgan Chase Bank, Goldman Sachs Bank USA, BofA Securities Inc. and UBS Investment Bank are leading the deal that will be used to repay existing term loans and to pay related fees and expenses.

Signify Health is a Dallas-based health care platform that powers and creates value-based payment programs.

Aspen Dental guidance

Aspen Dental Management held its lender call on Monday afternoon and announced talk on its non-fungible $700 million incremental term loan (B2/B) at Libor plus 400 bps to 425 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.

Commitments are due at noon ET on June 23, the source added.

RBC Capital Markets is leading the deal that will be used to fund a shareholder distribution.

Aspen Dental is an East Syracuse, N.Y.-based dental support organization.

BGIS details emerge

BGIS launched on its call a $220 million add-on senior secured covenant-lite first-lien term loan due May 31, 2026 and a $25 million delayed-draw covenant-lite term loan due May 31, 2026 talked with an original issue discount of 99 to 99.5, a market source said. The fungibility threshold is 99.03.

Pricing on the term loan debt (B2/B) is Libor plus 375 bps with a 0% Libor floor, in line with pricing on the existing term loan due May 2026.

The term loan debt has 101 soft call protection for six months, and the delayed-draw term loan has a ticking fee of half the margin from days 61 to 120 and the full margin thereafter and a 24-month availability period.

Commitments are due at 5 p.m. ET on June 22, the source added.

Citigroup Global Markets Inc., Morgan Stanley Senior Funding Inc., BMO Capital Markets, TD Securities (USA) LLC, CIBC, MUFG and Shinhan are leading the deal that will be used to pay a C$250 million dividend to shareholders and fund $8 million of the purchase price for three strategic tuck-in acquisitions.

Closing is expected during the week of June 25.

BGIS is an integrated facilities management company.

J.D. Power guidance

J.D. Power disclosed price talk on its $410 million incremental first-lien term loan (/B-/B+) and $40 million incremental second-lien term loan with its afternoon call, a market source remarked.

The first-lien term loan is talked at Libor plus 375 bps to 400 bps with a 0.5% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, and the second-lien term loan is talked at Libor plus 800 bps with a 0% Libor floor, a par issue price and no call protection, the source added.

Commitments are due at noon ET on June 23.

RBC Capital Markets and KKR Capital Markets are leading the deal, with RBC the left lead on the first-lien loan and KKR the left lead on the second-lien loan.

The new debt will be used to fund an acquisition and refinance a $100 million term loan B-1 put in place last year.

J.D. Power, a Thoma Bravo portfolio company, is a Troy, Mich.-based provider of automobile transactional data, valuation tools, vehicle feature information and consumer analytics to the automotive industry.

Traeger holds call

Traeger emerged in the morning with plans to host a lender call at 12:30 p.m. ET on Monday to launch $685 million of credit facilities (B2/B), split between a $125 million revolver, a $510 million seven-year first-lien term loan and a $50 million delayed-draw first-lien term loan, according to a market source.

Talk on the term loan debt is Libor plus 400 bps with a 0.75% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months, the source said.

Commitments are due at noon ET on June 24.

Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc., MUFG, Jefferies LLC, BMO Capital Markets and RBC Capital Markets are leading the deal that will be used to refinance existing debt, fund cash to the balance sheet, and pay related fees and expenses.

Traeger is a Salt Lake City-based designer and marketer of outdoor cooking products.

ArchKey proposed terms

ArchKey came out with talk of Libor plus 500 bps to 525 bps with a 0.75% Libor floor and an original issue discount of 99 on its $320 million seven-year covenant-lite first-lien term loan (B2/B) that launched with a call in the morning, a market source said.

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

Commitments are due at noon ET on June 24.

Deutsche Bank Securities Inc., Barclays and UBS Investment Bank are leading the deal that will be used to help fund the buyout of the company by One Rock Capital Partners LLC.

Closing is expected this summer, subject to customary conditions.

ArchKey is a St. Louis-based electrical and technologies contracting and services provider.

Milk sets talk

Milk Specialties released talk of on its fungible $80 million incremental first-lien term loan due August 2025 and extension of its existing $439 million first-lien term loan to August 2025 from August 2023 at Libor plus 400 bps with a 1% Libor floor in connection with its afternoon lender call, according to a market source.

The incremental term loan is talked with an original issue discount of 99.5 and the extension is offered with a 50 bps consent fee, the source said.

The first-lien term loan debt (B2/B) is getting 101 soft call protection for six months.

Commitments are due at 5 p.m. ET on June 23.

Credit Suisse Securities (USA) LLC is leading the deal.

Proceeds from the incremental first-lien term loan will be used with a $100 million privately placed second-lien term loan and cash on hand to fund a shareholder distribution.

Milk Specialties is an Eden Prairie, Minn.-based producer of dairy-based specialty functional ingredients.

Grosvenor comes to market

Grosvenor Capital Management held a lender call at 12:30 p.m. ET, launching a fungible $85 million incremental covenant-lite first-lien term loan B (Ba3/BB+) due February 2028 talked with an original issue discount of 98.75 to 99.25, a market source remarked.

Pricing on the incremental term loan is Libor plus 250 bps with a 0.5% Libor floor, in line with existing term loan B pricing, and the debt is getting 101 soft call protection for six months.

Commitments are due at noon ET on Thursday, the source added.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used with balance sheet cash to repurchase certain fund investments and rights to future carry associated with Mosaic.

Based upon values as of March 31, Grosvenor will repurchase assets and carried interest at net asset value of about $238 million, consisting of fund investments valued at $87 million and unrealized carried interests net asset value of $150 million, and rights to additional future carried interest associated with $423 million of carry dollars at work, for an estimated March 31 purchase price of $176 million.

Closing is expected in the third quarter.

Grosvenor Capital is a Chicago-based independent alternative asset management firm.

Kantar readies deal

Kantar set a lender call for 10:30 a.m. ET on Tuesday to launch a $500 million first-lien term loan B (B2/B-), according to a market source.

Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc., BofA Securities Inc., Barclays, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Jefferies LLC are leading the deal that will be used to help fund the acquisition of Numerator.

The company also plans on using $400 million of other senior secured debt, a $350 million shareholder equity contribution and $150 million of cash on the balance sheet for the acquisition.

Pro forma for the transaction, senior secured net debt is expected to be 3.9x and secured net debt is expected to be 4.5x.

Closing is expected by the third quarter, subject to the relevant legal and regulatory processes.

Kantar is a London-based data analytics and brand consulting group. Numerator is a Chicago-based, tech-driven consumer and market intelligence company.

Dynata joins calendar

Dynata will hold a lender call at 10 a.m. ET on Tuesday to launch a fungible $75 million add-on term loan B, a market source said.

Goldman Sachs Bank USA is leading the deal that will be used to repay revolver borrowings and fund cash to balance sheet.

Dynata is a provider of digital data collection for consumer and B2B survey research.

International-Matex on deck

International-Matex Tank Terminals scheduled a lender call for Tuesday to launch $950 million of credit facilities, according to a market source.

The facilities consist of a $300 million five-year revolver and a $650 million seven-year senior secured term loan, the source said.

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

Jefferies LLC, Wells Fargo Securities LLC, CIBC, First Horizon, MUFG and Regions Bank are leading the deal that will be used with senior unsecured debt to refinance existing debt and fund a distribution.

International-Matex is a New Orleans-based handler and storer of bulk liquid products.

Gibson plans call

Gibson Brands set a lender call for 2:30 p.m. ET on Tuesday to launch a $250 million seven-year term loan B (B2), a market source remarked.

KKR Capital Markets and JPMorgan Chase Bank are leading the deal that will be used to refinance existing debt and fund a dividend.

Gibson Brands is a Nashville-based maker of musical instruments and audio equipment.

EAB coming soon

EAB emerged with plans to hold a lender call at 11 a.m. ET on Tuesday to launch a $745 million first-lien term loan (B-), according to a market source.

Macquarie Capital (USA) Inc., Deutsche Bank Securities Inc., CPPIB, BMO Capital Markets and HSBC Securities (USA) Inc. are the leads on the first-lien loan.

The company is also getting a $270 million privately placed second-lien term loan that was placed by UBS Investment Bank.

The new debt will be used to fund a recapitalization by BC Partners, which announced in May that it will invest in EAB alongside existing investor Vista Equity Partners.

EAB is Washington, D.C.-based education technology company.

Medforth joins calendar

Medforth set a lender call for 1 p.m. ET on Wednesday to launch a $1.05 billion term loan, a market source said.

Macquarie Capital (USA) Inc., Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., HSBC Securities (USA) Inc. and TCG are leading the deal that will be used to fund a recapitalization by the Carlyle Group.

Medforth is a New York-based educational institution, providing students medical degrees and veterinary degrees.

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