PowerSchool, GrafTech, TransUnion, Access CIG, EnergySolutions break; Dayco, Bob’s updated

By Sara Rosenberg

New York, June 12 – PowerSchool Group LLC set pricing on its first-and second-lien term loans at the low end of guidance and added a step-down and tightened the original issue discount on the first-lien tranche, before freeing up for trading on Tuesday.

Also, GrafTech International Ltd. increased the size of its add-on term loan B, firmed the original issue discount at the wide end of talk and broke for trading, and deals from TransUnion Inc., Access CIG LLC and EnergySolutions LLC surfaced in the secondary market too.

In other news, Dayco Products LLC finalized the spread on its term loan B at the low side of talk, Bob’s Discount Furniture LLC widened the pricing and discount on its term loan B, and BBB Industries LLC (GC EOS Buyer Inc.), Savage Enterprises LLC, Radiology Partners Inc., MedPlast Holdings Inc., Screenvision LLC, Abercrombie & Fitch Management Co. and Tradesmen International LLC disclosed price talk with launch.

Additonally, Edelman Financial Center LLC, Value-Based Care Solutions, HireRight (Genuine Financial Holdings LLC), Ryman Hospitality Properties Inc. (RHP Hotel Properties LP), Valtris Specialty Chemicals (Polymer Additives Inc.), Edward Don & Co. LLC and Cirque du Soleil Canada Inc. joined this week’s primary calendar.

PowerSchool tweaks deal

PowerSchool finalized the spread on its $775 million seven-year first-lien term loan (B2/B-) at Libor plus 325 basis points, the low end of the Libor plus 325 bps to 350 bps talk, added a step-down to Libor plus 300 bps at first-lien net leverage of 4.25 times and changed the original issue discount to 99.75 from 99.5, while leaving the 0% Libor floor and 101 soft call protection for six months intact, according to market sources.

In addition, the company firmed pricing on its $365 million privately placed eight-year second-lien term loan (Caa2/CCC) at Libor plus 675 bps, the low end of the Libor plus 675 bps to 700 bps talk, sources said. This tranche still has a 0% Libor floor, a discount of 99 and call protection of 102 in year one and 101 in year two.

Also, the MFN was revised to 50 bps with a 12 month sunset from 75 bps with a six month sunset.

The company’s $1.26 billion of credit facilities include a $120 million five-year revolver (B2/B-) as well.

Recommitments were due at noon ET on Tuesday.

PowerSchool starts trading

After terms finalized, PowerSchool’s credit facilities emerged in the secondary market, with the first-lien term loan quoted at par bid, par ½ offered and the second-lien term loan quoted at 99¼ bid, par ¼ offered, traders added.

Barclays, Credit Suisse Securities (USA) LLC, Macquarie Capital (USA) Inc., Ares, Golub and Jefferies LLC are leading the deal, with Barclays the left lead on the first-lien loan and Credit Suisse the left lead on the second-lien loan.

The new debt will be used to help fund the buyout of the company by Onex Corp. and Vista Equity Partners. Vista is the current owner of the company but will invest new capital in the business with the purchase of a stake by Onex.

With the Onex/Vista transaction, PowerSchool will acquire PeopleAdmin, a provider of cloud-based talent management solutions for the education sector.

Closing is expected in the second half of this year, subject to customary conditions and regulatory approvals.

PowerSchool is a Folsom, Calif.-based education technology platform for K-12 schools.

GrafTech revised, trades

GrafTech lifted its add-on term loan B to $750 million from $350 million and finalized the original issue discount at 99, the wide end of the 99 to 99.5 talk, a market source remarked.

Pricing on the loan remained at Libor plus 350 bps with a 1% Libor floor.

The add-on term loan then freed to trade with levels seen at 99½ bid, par offered, another source added.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance in full, as opposed to in part prior to the upsizing, a promissory note to Brookfield Capital Partners.

GrafTech is a Brooklyn Heights, Ohio-based manufacturer of graphite electrode products essential to the production of electric arc furnace steel and other ferrous and non-ferrous metals.

TransUnion frees up

TransUnion’s bank debt began trading, with the $1 billion seven-year covenant-light term loan B-4 quoted at par 1/8 bid, par 5/8 offered and the $800 million incremental term loan A due August 2022 quoted at 99 7/8 bid, par 3/8 offered, a trader remarked.

Pricing on the term loan B-4 is Libor plus 200 bps with a 0% Libor floor and it was sold at an original issue discount of 99.75. The debt has 101 soft call protection for six months.

The incremental term loan A is priced at Libor plus 175 bps with a 0% Libor floor and was issued at a discount of 99.75.

During syndication, the term loan B-4 was downsized from $1.4 billion, pricing was lowered from Libor plus 225 bps and the discount firmed at the tight end of the 99.5 to 99.75 talk. Also, the term loan A was upsized from $400 million.

Deutsche Bank Securities Inc., RBC Capital Markets, Bank of America Merrill Lynch and Capital One are the bookrunners on the $1.8 billion in term loans (Ba2/BB+).

TransUnion funding acquisitions

Proceeds from TransUnion’s term loans will be used to finance the acquisitions of Callcredit Information Group Ltd., a Leeds, U.K.-based consumer credit bureau, for £1 billion, iovation, a Portland, Ore.-based provider of device-based information, and Healthcare Payment Specialists, a Fort Worth, Texas-based company that helps health care providers optimize Medicare reimbursement.

Closing on the Callcredit and iovation transactions is expected late in the second quarter or early in the third quarter, subject to regulatory approval, and closing on the Healthcare Payment acquisition from Nautic Partners is expected in the second quarter, pending regulatory approval.

TransUnion is a Chicago-based provider of information management and risk management services.

Access CIG hits secondary

Access CIG’s incremental term loans broke as well, with the fungible $85 million incremental first-lien term loan (B2/B) due February 2025 quoted at par ½ bid, 101 offered and the fungible $20 million incremental second-lien term loan (Caa2/CCC+) due February 2026 quoted at par ½ bid, 101½ offered, according to a market source.

The incremental first-lien term loan is priced at Libor plus 375 bps with a 0% Libor floor and has 101 soft call protection until August, and the incremental second-lien term loan is priced at Libor plus 775 bps with a 0% Libor floor and has hard call protection of 102 until February 2019 and 101 until February 2020, which is all in line with the existing term loans. The incremental first-lien term loan was issued at par and the incremental second-lien term loan was sold at an original issue discount of 99.75.

On Monday, the issue price on the incremental first-lien term loan was changed from 99.75, and the discount on the incremental second-lien term loan was tightened from 99.5.

Jefferies LLC is leading the $105 million in incremental term loans that will be used to help fund an acquisition expected to close this week.

Access CIG is a Livermore, Calif.-based provider of physical and digital records and information management services.

EnergySolutions breaks

EnergySolutions’ fungible $50 million incremental covenant-light term loan B due May 2025 hit the secondary market too, with levels seen at par ¼ bid, par ¾ offered, a trader said.

Pricing on the incremental loan is Libor plus 375 bps with a 1% Libor floor and it was issued at par. The debt has 101 soft call protection until November.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to pay a dividend to shareholders.

Closing is expected on Thursday.

EnergySolutions is a Salt Lake City-based nuclear services company.

Dayco sets spread

Back in the primary market, Dayco Products firmed pricing on its $470 million covenant-light term loan B (B2/B) due May 19, 2023 at Libor plus 425 bps, the low end of the Libor plus 425 bps to 450 bps talk, and left the 0% Libor floor, par issue price and 101 soft call protection for six months unchanged, according to a market source.

Allocations are expected on Wednesday, the source said.

Bank of America Merrill Lynch is leading the deal that will be used to refinance an existing term loan B.

Dayco is a Troy, Mich.-based manufacturer of highly engineered engine management systems.

Bob’s modifies terms

Bob’s Discount Furniture raised pricing on its $256.7 million term loan B (B2/B) due Aug. 12, 2023 to Libor plus 525 bps from Libor plus 500 bps and widened the amendment fee/original issue discount to 50 bps/99.5 from 25 bps/99.75, according to a market source.

The term loan has a 1% Libor floor and 101 soft call protection for one year.

RBC Capital Markets is the left lead on the deal that will be used to extend an existing term loan B due February 2021 and increase pricing from Libor plus 475 bps with a 1% Libor floor.

Bain Capital is the sponsor.

Bob’s is a Manchester, Conn.-based retailer of furniture and bedding.

BBB comes to market

BBB Industries hosted a bank meeting on Tuesday and announced price talk on its $620 million seven-year covenant-light first-lien term loan and $180 million eight-year covenant-light second-lien term loan, a market source said.

Talk on the first-lien term loan is Libor plus 400 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, and talk on the second-lien term loan is Libor plus 825 bps with a 0% Libor floor, a discount of 99 and call protection of 102 in year one and 101 in year two, the source added.

The company’s $900 million of credit facilities also include a $100 million ABL revolver.

Commitments are due on June 26.

UBS Investment Bank is leading the deal that will be used to help fund the buyout of the company by Genstar Capital.

BBB is a Daphne, Ala.-based remanufacturer of automotive products.

Savage reveals talk

Savage Enterprises disclosed talk of Libor plus 325 bps to 350 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months on its $1.1 billion seven-year covenant-light term loan B (B1/B+) that launched with an afternoon lender presentation, according to a market source.

The company’s $1.5 billion of senior secured credit facilities also include a $400 million ABL revolver.

Commitments are due on June 26, the source said.

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 August.

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

Radiology details surface

Radiology Partners held its bank meeting during the session and launched $1,365,000,000 of senior secured credit facilities, according to a market source.

The debt consists of a $150 million revolver (B2/B), a $680 million first-lien term loan (B2/B), a $100 million first-lien delayed-draw term loan-1 (B2/B), a $120 million first-lien delayed-draw term loan-2 (B2/B), a $240 million second-lien term loan (Caa2/CCC+) and a $75 million second-lien delayed-draw term loan (Caa2/CCC+), the source said.

Talk on the first-lien term debt is Libor plus 325 bps to 350 bps with a 0% Libor floor and an original issue discount of 99.5, and talk on the second-lien term debt is Libor plus 725 bps with a 0% Libor floor and a discount of 99. The first-lien term loan has 101 soft call protection for six months and the second-lien term loan has call protection of 102 in year one and 101 in year two.

Radiology delayed-draw terms

Radiology Partners’ delayed-draw ticking fees are half the margin from days 61 to 365 and the full margin thereafter, and the availability is for 24 months, the source continued. The first-lien delayed-draw term loans are subject to pro forma first-lien net leverage of 5 times and the second-lien delayed-draw term loan is subject to pro forma secured net leverage of 6.75 times.

The first-lien term loan and delayed-draw term loan-1 are being offered as a pro rata strip and the second-lien term loan and delayed-draw second-lien term loan are being offered as a pro rata strip. The delayed-draw term loan-2 was privately placed.

Commitments are due at 5 p.m. ET on June 21, the source added.

Barclays, Golub and Deutsche Bank Securities Inc. are leading the deal that will be used to refinance existing debt and for general corporate purposes.

New Enterprise Associates is the sponsor.

Radiology Partners is an El Segundo, Calif.-based radiology physician practice management company.

MedPlast launches

MedPlast released price talk on its $500 million seven-year covenant-light first-lien term loan and $225 million eight-year covenant-light second-lien term loan in connection with its afternoon bank meeting, a market source said.

Talk on the first-lien term loan is Libor plus 400 bps to 425 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, and talk on the second-lien term loan is Libor plus 800 bps to 825 bps with a 0% Libor floor, a discount of 99 and call protection of 102 in year one and 101 in year two, the source added.

The company’s $795 million senior secured deal also includes a $70 million five-year revolver.

Commitments are due at 5 p.m. ET on June 26, the source added.

RBC Capital Markets LLC, Jefferies LLC, KeyBanc Capital Markets LLC and Citizens Bank are leading the deal that will be used to fund the acquisition of Integer Holdings Corp.’s Advanced Surgical and Orthopedics product lines for $600 million in cash.

Closing is expected in the third quarter, subject to customary conditions, including antitrust clearances.

JLL Partners and Water Street Healthcare Partners are the sponsors.

MedPlast is a Tempe, Ariz.-based services provider to the medical device industry.

Screenvision sets guidance

Screenvision released price talk in the Libor plus 400 bps area with a 0% Libor floor and an original issue discount of 99.5 on its $175 million seven-year covenant-light first-lien term loan (B) that launched with an afternoon bank meeting, according to a market source.

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

Commitments are due at noon ET on June 26.

Deutsche Bank Securities Inc. is leading the deal that will be used to help fund the acquisition of a controlling stake in the company by Abry Partners.

The company’s existing owners, Shamrock Capital and AMC Entertainment, will maintain minority stakes.

Closing is expected this summer.

Screenvision is a New York-based provider of cinema advertising, on-screen advertising, in-lobby promotions and integrated marketing programs.

Abercrombie holds call

Abercrombie & Fitch emerged in the morning with plans to hold a lender call at 4 p.m. ET to launch a $253,250,000 covenant-light term loan B due Aug. 7, 2021 talked at Libor plus 325 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, a market source said.

Commitments are due at 3 p.m. ET on Monday, the source added.

Wells Fargo Securities LLC is the left lead on the deal that will be used to reprice an existing term loan B down from Libor plus 375 bps with a 1% Libor floor.

Abercrombie is a New Albany, Ohio-based specialty retailer of apparel, personal care products and accessories for men, women and kids.

Tradesmen floats OID

Tradesmen International came out with original issue discount talk of 99.75 on its $40 million incremental first-lien term loan due February 2024 that launched with a morning call, a market source remarked.

The incremental loan is priced in line with the existing term loan at Libor plus 450 bps with a 1% Libor floor, and has 101 soft call protection for six months.

Commitments are due at noon ET on Friday.

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 being offered a 12.5 amendment consent fee, the source added.

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

Edelman timing emerges

In more primary happenings, Edelman Financial set a lender presentation for 11 a.m. ET on Thursday to launch its previously announced $2,055,000,000 of senior secured credit facilities, according to a market source.

The facilities consist of a $150 million revolver, a $1.41 billion first-lien term loan B and a $495 million second-lien term loan.

Morgan Stanley Senior Funding Inc., J.P. Morgan Securities LLC, Barclays, Deutsche Bank Securities Inc. and UBS Investment Bank are leading the deal that will be used with up to $1.45 billion in equity to fund the acquisition of Financial Engines Inc. for $45 per share in cash. The transaction has a total value of about $3.02 billion.

Closing is expected in the third quarter, subject to approval by Financial Engines stockholders, regulatory approval and other customary conditions.

Edelman Financial, which is majority owned by Hellman & Friedman, is an independent financial planning firm. Financial Engines is a Sunnyvale, Calif.-based independent investment adviser.

Value-Based readies deal

Value-Based Care Solutions scheduled a bank meeting for 10 a.m. ET in New York on Thursday to launch $675 million of first-lien credit facilities, a market source said.

The facilities consist of a $75 million revolver and a $600 million first-lien term loan, the source added.

In addition, the company is getting a $175 million privately placed second-lien term loan.

Goldman Sachs Bank USA, Barclays and Deutsche Bank Securities Inc. are leading the deal that will be used to help fund the buyout of General Electric’s Value-Based Care Division by Veritas Capital for $1.05 billion in cash.

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

Value-Based Care Solutions is a software provider that leverages technology and analytics to help healthcare providers effectively manage their financial, clinical and human capital workflows.

HireRight sets meeting

HireRight will hold a bank meeting at 2 p.m. ET in New York on Thursday to launch $1.05 billion in term loans, a market source remarked.

The debt consists of an $835 million seven-year covenant-light first-lien term loan and a $215 million eight-year covenant-light second-lien term loan, the source added.

Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC and Citizens are leading the deal that will be used with equity from Stone Point and General Atlantic and cash on hand to fund the merger of HireRight and General Information Services, a General Atlantic portfolio company.

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

Irvine, Calif.-based HireRight and Chapin, S.C.-based General Information Services are providers of background screening and talent acquisition services.

Ryman coming soon

Ryman Hospitality Properties set a lender call for 11 a.m. ET on Wednesday to launch a $495 million covenant-light term loan B (Ba3/BB) due May 11, 2024 talked at Libor plus 200 bps with a step-down to Libor plus 175 bps when the corporate family rating is Ba3/BB-, a 0% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Commitments are due at 5 p.m. ET on June 19, the source said.

Deutsche Bank Securities Inc. is the left lead on the deal that will be used to reprice an existing term loan B down from Libor plus 225 bps with a 0% Libor floor.

Ryman is a Nashville-based real estate investment trust specializing in group-oriented, destination hotel assets in urban and resort markets.

Valtris joins calendar

Valtris Specialty Chemicals will hold a bank meeting at 10 a.m. ET in New York on Thursday to launch $405 million in term loans, a market source remarked.

The debt consists of a $300 million seven-year covenant-light first-lien term loan and a $105 million eight-year covenant-light second-lien term loan, the source added.

Commitments are due on June 28.

Deutsche Bank Securities Inc. and RBC Capital Markets are leading the deal that will be used to fund the potential purchase of certain assets from Ineos, subject to regulatory approvals, and to refinance existing debt.

Valtris, an H.I.G. Capital portfolio company, is an Independence, Ohio-based manufacturer of specialty chemicals producing a diverse set of polymer modifiers, lubricants, and stabilizers primarily used as additives in the production of plastics.

Edward Don on deck

Edward Don scheduled a bank meeting for 10:30 a.m. ET in New York on Thursday to launch a $210 million seven-year covenant-light term loan B that has 101 soft call protection for six months, according to a market source.

Commitments are due at 5 p.m. ET on June 25, the source said.

Wells Fargo Securities LLC is the left lead on the deal, which will be used to pay down existing ABL borrowings, refinance an existing term loan, and pay related fees and expenses.

Vestar Capital Partners Inc. is the sponsor.

Edward Don is a Woodridge, Ill.-based distributor of foodservice equipment and supplies.

Cirque plans add-on

Cirque du Soleil set a lender call for 1 p.m. ET on Thursday to launch a $95 million add-on first-lien term loan (B+), a market source remarked.

RBC Capital Markets is leading the deal that will be used to fund the acquisition of VStar Entertainment Group, a Fridley, Minn.-based producer of family-friendly shows, events, experiential installations, mascots and costumes.

TPG Capital is the sponsor.

Cirque du Soleil is a Montreal-based producer of live artistic entertainment.

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