Vantiv, Endurance, Ardent, Alvogen break; LifeScan, Solenis, Celstica, Minimax revised

By Sara Rosenberg

New York, June 15 – Vantiv LLC moved some funds between its term loans and Endurance International Group Inc. (EIG Investors Corp.) widened pricing on its term loan, and then these deals made their way into the secondary market on Friday, and Ardent Health Partners LLC and Alvogen Pharma US Inc. freed to trade as well.

In more happenings, LifeScan Global Corp. reworked its first-and second-lien term loan sizes, Solenis LLC modified its U.S. and euro first-lien term loan sizes and firmed original issue discounts on the debt at the wide end of revised talk, and Celestica Inc. trimmed the spread on its term loan B.

Also, Minimax increased the size of its U.S. term loan B and tightened the original issue discount, and revised issue price talk on its euro term loan B, and Tradesmen International LLC changed the issue price on its incremental first-lien term loan.

Additionally, Stars Group Inc. and Infinite Electronics Inc. came out with price talk on their loan deals, and Worldwide Express (SMB Shipping Logistics), Ocwen Financial Corp., Pregis LLC, Midcoast (AL Midcoast Holdings LLC) and Young Innovations Inc. joined the near-term primary calendar.

Vantiv retranches, frees up

Vantiv increased its term loan A-5 due Jan. 16, 2023 to roughly $3.4 billion from roughly $3.3 billion, and scaled back its covenant-light term loan B-3 due Oct. 14, 2023 to $705 million from $755 million and its covenant-light term loan B-4 due Aug. 20, 2024 to $1.75 billion from $1.8 billion, according to a market source.

The company’s $6,505,000,000 in term loans (Ba2/BBB-) also include a $650 million equivalent pound sterling term loan A-6 due Jan. 16, 2023.

All of the term loans are priced at Libor plus 175 basis points with a 0% Libor floor, with the term loan A’s subject to a grid, and the term loan B-3 and term loan B-4 have a par issue price and 101 soft call protection for six months.

By late day, the debt broke for trading with the term loans A-5, B-3 and B-4 all quoted at par 1/8 bid, par 3/8 offered, a trader added.

Morgan Stanley Senior Funding Inc., Credit Suisse Securities (USA) LLC and NatWest are leading the deal that will be used to reprice the company’s existing term loans.

Closing is expected on June 22.

Vantiv is a payments technology company.

Endurance ups spread, trades

Endurance International Group raised pricing on its $1.58 billion first-lien term loan due February 2023 to Libor plus 375 bps from Libor plus 325 bps, a market source remarked.

As before, the term loan has a 1% Libor floor, a par issue price and 101 soft call protection for six months.

After terms finalized, the loan made its way into the secondary market and levels were seen at par ¼ bid, par ¾ offered, a trader added.

Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA and Morgan Stanley Senior Funding Inc. are the lead arrangers on the deal and bookrunners with Jefferies LLC and SG America Securities.

Proceeds will be used to reprice an existing term loan down from Libor plus 400 bps with a 1% Libor floor.

Endurance is a Burlington, Mass.-based provider of web hosting services.

Ardent hits secondary

Ardent Health Partners’ credit facilities began trading too, with the $825 million seven-year first-lien term loan quoted at 99¼ bid, par offered, according to a trader.

Pricing on the term loan is Libor plus 450 bps with a 1% Libor floor and it was sold at an original issue discount of 99. The debt has 101 soft call protection for six months.

On Thursday, the term loan was upsized from $765 million as the company’s bond offering was downsized to $475 million from $535 million, pricing firmed at the high end of the Libor plus 425 bps to 450 bps talk and the discount finalized at the wide end of the 99 to 99.5 talk.

The company’s $1.05 billion of credit facilities also include a $225 million five-year asset-based lending facility.

Barclays, Jefferies LLC and Bank of America Merrill Lynch are leading the deal that will be used with the bonds to refinance existing debt.

Equity Group Investments is the sponsor.

Ardent Health is a Nashville, Tenn.-based owner and operator of hospitals.

Alvogen breaks

Alvogen Pharma’s $1,013,674,154 senior secured covenant-light term loan B due April 2, 2022 also freed up, with levels quoted at par 1/8 bid, par 5/8 offered, a trader said.

Pricing on the term loan is Libor plus 475 bps with a 1% Libor floor and it was issued at par. The debt has 101 soft call protection for six months.

On Thursday, pricing on the term loan was flexed up from Libor plus 450 bps.

Morgan Stanley Senior Funding Inc. and Jefferies LLC are leading the deal that will be used to reprice an existing term loan B due 2022 down from Libor plus 500 bps with a 1% Libor floor.

Closing is expected on Tuesday.

Alvogen is a developer and manufacturer of generic drugs, and provider of contract manufacturing, development and research services to large branded pharma companies.

Sapec Agro tops OID

Sapec Agro (European Crops Products 2 Sarl) saw its €318.3 million 6.5-year covenant-light term loan B break for trading and levels were quoted at 99¾ bid, par ¼ offered, according to a market source.

Pricing on the loan is Euribor plus 475 bps with a 0% Euribor 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 was increased from talk in the range of Euribor plus 375 bps to 400 bps.

The company’s €378.3 million of credit facilities (B2/B) also include a €60 million 5.5-year multi-currency revolver.

BNP Paribas, Credit Agricole, HSBC and Rabobank are leading the deal that will be used to refinance existing debt, finance add-on acquisitions and fund a permitted payment.

Bridgepoint is the sponsor.

Sapec Agro is a Portugal-based developer, manufacturer and supplier of specialty crop nutrition and crop protection solutions.

LifeScan revised again

Back in the primary market, LifeScan Global increased its six-year covenant-light first-lien term loan to $1,475,000,000 from $1.4 billion and decreased its seven-year covenant-light second-lien term loan to $275 million from $350 million, according to a market source.

In addition, a ticking fee was outlined on the debt as the full spread from days 31 to 90 and the full spread plus the Libor floor thereafter, the source said.

The first-lien loan is priced at Libor plus 600 bps with a 0% Libor floor and an original issue discount of 97, and has 101 soft call protection for one year, and the second-lien loan is priced at Libor plus 950 bps with a 0% Libor floor and a discount of 96, and is non-callable for one year, then at 102 in year two and 101 in year three.

Previously in syndication, pricing on the first-lien term loan was lifted from Libor plus 450 bps, the discount widened from 99.5, the call protection was extended from six months, amortization was increased to 7% per annum from 3.5% and the maturity was shortened from seven years. As for the second-lien, pricing flexed from Libor plus 850 bps, the discount was changed from talk in the range of 98.5 to 99, the call protection was revised from hard call protection of 103 in year one, 102 in year two and 101 in year three, and the maturity was shortened from eight years.

LifeScan lead banks

Bank of America Merrill Lynch, Deutsche Bank Securities Inc., Goldman Sachs Bank USA, Jefferies LLC, Credit Suisse Securities (USA) LLC, Barclays and RBC Capital Markets are leading LifeScan’s $1.75 billion in term loans.

Allocations are expected on Monday, the source added.

The new debt will be used to fund the buyout of the company by Platinum Equity from Johnson & Johnson in a transaction valued at about $2.1 billion.

LifeScan is a marketer of blood glucose monitoring products with headquarters in Chesterbrook, Pa., and Zug, Switzerland.

Solenis modifies deal

Solenis upsized its 5.5-year U.S. covenant-light first-lien term loan to $815 million from $700 million, downsized its 5.5-year euro covenant-light first-lien term loan to €375 million from €475 million and set the original issue discount on the debt at 99, the wide end of revised talk of 99 to 99.5 and wide of initial talk of 99.5, according to a market source.

The U.S. first-lien term loan is priced at Libor plus 400 bps with a 0% Libor floor, the euro first-lien term loan is priced at Euribor plus 425 bps with a 0.5% floor, both loans have a 25 bps step-up if the combination with BASF Paper & Water doesn’t close and first-lien leverage is more than 4.75 times and an additional 25 bps step-up if the combination doesn’t close and first-lien leverage is more than 5 times, and both have 101 soft call protection for the earlier of one year and the close of the combination.

The company’s $1.85 billion equivalent of senior secured credit facilities also include a $200 million multi-currency revolver (B2/B-) and a $400 million six-year covenant-light second-lien term loan.

Solenis second-lien terms

Solenis’ second-lien term loan is priced at Libor plus 850 bps with a 25 bps step-up if the combination doesn’t close and secured leverage is more than 5.75 times and an additional 25 bps step-up if the combination doesn’t close and secured leverage is more than 6 times, a 0% Libor floor and a discount of 97. This tranche is non-callable, other than with customary make-whole, until the earlier of one year and the combination closing, and if the combination closes within one year, 103 for the remainder of the year, followed by 102 for a year and 101 for a year.

Previously in syndication, pricing on the U.S. first-lien term loan was lifted from Libor plus 350 bps, pricing on the euro first-lien term loan was raised from Euribor plus 350 bps, pricing on the second-lien term loan was increased from Libor plus 750 bps and the discount widened from 99, and the second pricing step-ups were added to each term loan.

Also earlier in synidcation, the call protection on the first-lien term loans was extended from six months, the call protection on the second-lien term loan was changed from a hard call of 102 in year one and 101 in year two, the maturity of the first-lien term loans was shortened from seven years, the maturity of the second-lien term loan was shortened from eight years and a number of documentation changes were outlined.

Solenis refinancing

Proceeds from Solenis’ credit facilities will be used to refinance existing bank debt in preparation for the combination with BASF’s paper and water chemicals business.

Upon closing of the BASF Paper & Water combination, the first-lien term loans maturity will spring to seven years from the refinancing date and the second-lien term loan maturity will spring to eight years from the refinancing date.

Allocations are expected on Monday, the source added.

Citigroup Global Markets Inc., Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Natixis, RBC Capital Markets, Macquarie Capital (USA) Inc. and ING are leading the deal, with Citi left on the first-lien debt and Bank of America left on the second-lien debt. Citi is the administrative agent on the revolver and first-lien term loan and Credit Suisse is the agent on the second-lien loan.

Solenis is a Wilmington, Del.-based producer of specialty chemicals for water intensive industries, including the pulp, paper, oil and gas, chemical processing, mining, biorefining, power and municipal markets.

Celestica flexes

Celestica lowered pricing on its $350 million seven-year covenant-light term loan B (Ba1BB+) to Libor plus 200 bps from talk in the range of Libor plus 225 bps to 250 bps, and left the 0% Libor floor, original issue discount of 99.5 and 101 soft call protection for six months intact, a market source said.

Allocations are targeted for Monday, the source added.

Bank of America Merrill Lynch and Citigroup Global Markets Inc. are leading the deal that will be used to repay the company’s existing credit facilities.

Celestica is a Toronto-based designer and manufacturer of electronic components.

Minimax tweaked

Minimax lifted its U.S. seven-year covenant-light term loan B to $600 million from $585 million and changed the original issue discount to 99.75 from 99.5, while leaving pricing at Libor plus 300 bps with a 0.75% Libor floor, according to a market source.

Also, the company modified original issue discount talk on its €514 million seven-year covenant-light term loan B to a range of 99.75 to par from 99.5, the source said.

Pricing on the euro term loan is still Euribor plus 325 bps with a 0% floor.

Both term loans continue to include two 25 bps pricing step-downs at 4 times and 3 times leverage, but now there is a six month margin ratchet holiday instead of no holiday, the source continued.

The company’s credit facilities also include a €40 million six-year revolver and a €150 million six-year guarantee line.

Minimax shuts books

Recommitments for Minimax’s credit facilities were due at noon ET for U.S. orders and at 3 p.m. UK time for euro orders, the source added.

Deutsche Bank is the physical bookrunner on the deal, and Commerzbank and Unicredit are bookrunners.

Proceeds will be used to refinance existing term loans, with cashless roll available, to fund a distribution to direct shareholder MV Holding for a share buyback, and, because of the upsizing, to put cash on the balance sheet.

Minimax is a fire protection company with headquarters in Bad Oldesloe in Schleswig-Holstein, Germany.

Tradesmen updated

Tradesmen International tightened the issue price on its $40 million incremental first-lien term loan due February 2024 to par from 99.75, according to a market source.

Like the existing term loan, the incremental loan is priced at Libor plus 450 bps with a 1% Libor floor.

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

Recommitments were due at 3 p.m. ET on Friday, the source said.

Deutsche Bank Securities Inc. is the left lead on the deal that will be used to refinance second-lien term loan borrowings.

Including the incremental, the first-lien term loan will total $397 million.

Existing lenders are offered a 12.5 amendment consent fee.

Tradesmen is a Macedonia, Ohio-based agency-based provider of outsourced skilled craftsmen to non-residential construction and industrial contractors.

Stars reveals guidance

Also in the primary market, Stars Group held its London bank meeting on Friday and announced price talk on its $4,975,000,000 equivalent seven-year covenant-light term loan B, a market source said. A bank meeting for U.S. investors will take place at 10:30 a.m. ET in New York on Monday.

The U.S. dollar term loan B tranche is talked at Libor plus 350 bps, the €1 billion term B tranche is talked at Euribor plus 350 bps and the £400 million term B tranche is talked at Libor plus 425 bps, the source added. All of the tranches are talked with a 0% floor, an original issue discount of 99.5 and 101 soft call protection for six months.

Commitments are due at the close of business on June 28.

Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc., Goldman Sachs Bank USA, Macquarie Capital (USA) Inc., Barclays, BMO Capital Markets and J.P. Morgan Securities LLC are leading the deal.

Star buying Sky

Proceeds from Stars Group’s term loan B debt will be used to help fund the acquisition of Sky Betting & Gaming from CVC Capital Partners and Sky plc for about $4.7 billion, of which $3.6 billion is payable in cash and the remainder is payable in around 37.9 million newly issued common shares.

Closing is expected in the third quarter, subject to regulatory approvals and customary conditions.

Stars Group is a Toronto-based provider of technology-based products and services in the gaming and interactive entertainment industries. Sky Betting is an online betting and gaming company.

Infinite Electronics sets talk

Infinite Electronics came out with price talk on its $605 million of first-lien credit facilities with its morning lender call, a market source said.

Talk on the $35 million five-year revolver is Libor plus 400 bps with a 0% Libor floor, and talk on the $570 million seven-year first-lien term loan is Libor plus 400 bps with a 1% Libor floor and 101 soft call protection for six months, the source continued. Commitments in the existing $35 million revolver and roughly $462 million term loan will receive a 25 bps amendment fee, and the roughly $108 million of new term loan commitments are being offered an original issue discount of 99.5.

Commitments are due on June 26, the source added.

The company is also getting a $170 million privately placed second-lien term loan.

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.

Worldwide Express on deck

Worldwide Express set a bank meeting for 10 a.m. ET in New York on Tuesday to launch a $500 million seven-year covenant-light first-lien term loan that has a 0% Libor floor and 101 soft call protection for six months, according to a market source.

Commitments are due at 5 p.m. ET on June 28.

The company is also getting a $200 million privately placed second-lien term loan, the source said.

Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Citizens Bank and Stifel are leading the deal that will be used to acquire the Worldwide Express franchise owner, refinance existing debt and pay dividend to existing equityholders.

Ridgemont Equity Partners is the sponsor.

Worldwide Express is a Dallas-based provider of small parcel, less-than-truckload and truckload services.

Ocwen joins calendar

Ocwen Financial scheduled a lender call for 1:30 p.m. ET on Monday to launch a $350 million six-year senior secured term loan B, a market source said.

Barclays is the left lead on the deal that will be used to refinance the company’s existing senior secured term loan and fund cash to the balance sheet for general corporate purposes.

Ocwen is a West Palm Beach, Fla.-based non-bank mortgage servicer and originator.

Pregis readies loan

Pregis emerged with plans to hold a lender call at 10 a.m. ET on Tuesday to launch a fungible $90 million incremental term loan due May 20, 2021, a market source remarked.

Barclays and Goldman Sachs Bank USA are leading the deal that will be used to help fund an acquisition.

Pregis is a Deerfield, Ill.-based protective packaging materials and systems manufacturer.

Midcoast coming soon

Midcoast will hold a bank meeting at 2 p.m. ET in New York on Monday to launch a seven-year first-lien term loan B that has 101 soft call protection for six months, according to a market source.

Commitments are due at noon ET on June 28, the source said.

Credit Suisse Securities (USA) LLC, Barclays and MUFG are leading the deal, which will be used to fund the buyout of the company by ArcLight Capital Partners LLC from Enbridge Inc.

Closing is expected in the third quarter, subject to regulatory approvals and other customary conditions.

Midcoast is a provider of natural gas and natural gas liquids services.

Young Innovations repricing

Young Innovations scheduled a call for 3 p.m. ET on Monday to launch a repricing of its loan, a market source said.

Jefferies is leading the deal.

Young Innovations is an Algonquin, Ill.-based developer and manufacturer of consumable dental products.

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