National Mentor, Internet Brands break; Tacala revised; Inspire, Ancestry, symplr set talk

By Sara Rosenberg

New York, Nov. 13 – National Mentor modified the original issue discount on its incremental first-lien term loan before it freed up for trading on Friday, and Internet Brands’ incremental first-lien term loan began trading as well.

In more happenings, Tacala Cos. set the spread on its incremental first-lien term loan at the low end of guidance and lowered pricing on its incremental second-lien term loan.

Also, Inspire Brands Inc. (IRB Holding Corp.), Ancestry.com (Arches Buyer Inc.) and symplr Software Inc. disclosed price talk with launch, and Astoria Energy LLC surfaced with new deal plans.

National Mentor updated, trades

National Mentor changed the original issue discount on its fungible $200 million incremental first-lien term loan (B2/B) due March 2026 to 99.03 from talk in the range of 98.79 to 99, a market source said.

The incremental term loan is priced at Libor plus 425 bps with a 25 bps step-down at 4x total net leverage and a 0% Libor floor, in line with the existing term loan.

Included in the incremental term loan is a ticking fee of half the spread from days 31 to 60 and the full spread thereafter.

On Friday, the incremental term loan made its way into the secondary market and was quoted at 99 1/8 bid, 99 7/8 offered, another source added.

Goldman Sachs Bank USA, UBS Investment Bank, RBC Capital Markets, KeyBanc Capital Markets, BMO Capital Markets, Fifth Third, Barclays, BofA Securities Inc. and Jefferies LLC are leading the deal that will be used to fund the company’s acquisition pipeline and for general corporate purposes.

National Mentor is a Boston-based provider of home- and community-based health and human services for individuals with intellectual, developmental, physical or behavioral disabilities and other special needs.

Internet Brands frees up

Internet Brands’ fungible $400 million incremental covenant-lite first-lien term loan due September 2024 broke too, with levels quoted at 99 1/8 bid, 99 5/8 offered, a market source remarked.

The incremental term loan is priced at Libor plus 375 bps with a 1% Libor floor and was sold at an original issue discount of 99. The debt has the same 101 soft call protection through June 2021 as the existing first-lien term loan.

During syndication, the incremental term loan was upsized from $350 million and the discount firmed at the tight end of the 98.5 to 99 talk.

Credit Suisse Securities (USA) LLC, KKR Capital Markets and RBC Capital Markets are leading the deal that will be used to fund tuck-in acquisitions and a shareholder distribution.

Internet Brands is an El Segundo, Calif.-based online media and software services organization.

Tacala tweaked

Back in the primary, Tacala finalized pricing on its fungible $65 million incremental first-lien term loan (B-) at Libor plus 375 basis points, the tight end of the Libor plus 375 bps to 400 bps talk, and trimmed pricing on its fungible $20 million incremental second-lien term loan (CCC) to Libor plus 750 bps from Libor plus 775 bps, according to a market source.

As before, both incremental term loans have a 0.75% Libor floor and an original issue discount of 99.

KKR Capital Markets and Wells Fargo Securities LLC are leading the $85 million of incremental term loans that will be used for a dividend recapitalization.

As part of this transaction, pricing on the existing $420 million first-lien term loan will be lifted from Libor plus 325 bps with a 0% Libor floor to match the incremental loan pricing, and the Libor floor on the existing $140 million second-lien term loan will be changed to 0.75% from a 0% Libor floor to match the incremental loan. The spread on the existing second-lien term loan will remain at Libor plus 750 bps.

Tacala is a Vestavia Hills, Ala.-based franchise operator of Taco Bell restaurants.

Inspire proposed terms

Inspire Brands held its lender call on Friday morning and announced talk on its $2.575 billion seven-year senior secured first-lien term loan B (B2/B) at Libor plus 350 bps to 375 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, a market source said.

Commitments are due at noon ET on Nov. 20, the source added.

Barclays, Capital One, Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Golub, KeyBanc Capital Markets, Rabobank, Truist and Wells Fargo Securities LLC are leading the deal that will be used with cash on hand and equity from Inspire Brands’ sponsor, Roark Capital Management LLC, to fund the acquisition of Dunkin’ Brands Group Inc. for $106.50 per share in cash in a transaction valued at about $11.3 billion, including the assumption of Dunkin’ Brands’ debt.

Closing is expected by the end of the year.

Inspire Brands is an Atlanta-based multi-brand restaurant company. Dunkin’ Brands is a Canton, Mass.-based franchisor of quick service restaurants.

Ancestry details emerge

Ancestry launched on its morning call a $1.8 billion seven-year covenant-lite first-lien term loan talked at Libor plus 425 bps with a 0.5% Libor floor, an original issue discount of 98.5 to 99 and 101 soft call protection for six months, according to a market source.

Commitments are due at 5 p.m. ET on Nov. 23, the source added.

Credit Suisse Securities (USA) LLC, BofA Securities Inc., Morgan Stanley Senior Funding Inc., Barclays, J.P. Morgan Securities LLC and Blackstone are leading the deal that will be used to help fund the buyout of the company by Blackstone from Silver Lake, GIC, Spectrum Equity, Permira and other equity holders for a total enterprise value of $4.7 billion. Current Ancestry investor GIC will continue to retain a significant minority stake in the company.

Ancestry is a Lehi, Utah-based provider of digital family history services and consumer genomics.

symplr sets guidance

symplr came out with talk of Libor plus 425 bps to 450 bps with a 0.75% Libor floor and an original issue discount of 98.5 on its $680 million seven-year covenant-lite first-lien term loan shortly before its morning lender call began, a market source remarked.

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

Commitments are due on Nov. 20.

The company is also getting a $250 million privately placed second-lien term loan.

Credit Suisse Securities (USA) LLC is the left lead on the deal. Goldman Sachs Bank USA, Antares Capital, Ares, Deutsche Bank Securities Inc., Golub Capital and Jefferies LLC are involved as well.

The new loans will be used to refinance existing debt and to fund the acquisition of TractManager, a Dallas-based health care-specific application suite, from Arsenal Capital Partners.

symplr, a portfolio company of Clearlake Capital Group LP and SkyKnight Capital, is a Houston-based health care governance, risk management and compliance software-as-a-service platform.

Astoria on deck

Astoria Energy set a lender call for 11 a.m. ET on Monday to launch an $800 million seven-year senior secured first-lien term loan B that includes a 1% Libor floor, according to a market source.

Barclays, Morgan Stanley Senior Funding Inc. and Natixis are leading the deal.

The loan will be used to refinance the company’s existing credit facilities, for general corporate purposes and to pay a distribution to Astoria Project Partners LLC and its owners to reimburse expenditures of the sponsors to acquire their indirect 54.9451% ownership interest in Astoria Project Partners II.

Astoria Energy is an owner of electric power generation facilities in New York.

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