Commscope, BrightSpring Health, PF Chang’s to kick off loan deals on Monday

By Paul A. Harris

Portland, Ore., Jan. 25 – The cash flows of the dedicated bank loan funds remain negative, a trader said on Friday.

For Thursday, the most recent session for which data was available at press time, the loan funds saw $245 million of outflows on the day.

The loan funds saw $950 million of outflows in the holiday foreshortened week ending that ended on Wednesday.

It trails the previous week’s $943 million of outflows from the loan funds, the trader said.

The Friday session produced announcements of new deals set to kick off on Monday.

Commscope Inc. plans to kick off a $3,869,000,000 seven-year term loan B.

BrightSpring Health Services plans to launch a $1,650,637,500 credit facility.

And PF Chang’s plans to commence a syndication effort for a $430 million seven-year first-lien term loan.

Commscope bank meeting

Commscope plans to kick off a $3,869,000,000 seven-year term loan B at a bank meeting set to get underway at 11 a.m. ET on Monday.

Talk is Libor plus 325 to 350 basis points, with a 0% Libor floor, at OID 98. The deal comes with six months of soft call protection at 101.

JPMorgan is the left bookrunner.

The proceeds will be used as part of the financing for Commscope’s acquisition of Arris International plc.

Closing is expected in the first half of 2019, subject to regulatory approvals, Arris shareholder approval and other customary conditions. The transaction is not subject to a financing condition.

CommScope is a Hickory, N.C.-based provider of infrastructure services for communication networks. Arris is a Suwanee, Ga.-based telecommunications company.

BrightSpring credit facility

BrightSpring Health Services plans to launch a $1,650,637,500 credit facility with a lenders presentation set to get underway at 2 p.m. ET on Monday, according to a market source.

The institutional tranches include a $1.65 billion first-lien term loan and a $450 million second-lien term loan.

Morgan Stanley Senior Funding, Inc., Credit Suisse Loan Funding LLC, Jefferies Finance LLC, KKR Capital Markets LLC and Credit Agricole CIB are the arrangers.

The credit facility also features a $187.5 million revolver.

Proceeds will be used to finance the combination of PharMerica and BrightSping under KKR and Walgreens Boots Alliance ownership

BrightSpring is a Louisville, Ky.-based health care services provider.

The borrowing entity will be Phoenix Guarantor Inc.

PF Chang’s bank meeting

PF Chang’s plans to commence a syndication effort for a $430 million seven-year first-lien term loan at a bank meeting set to get underway at 3 p.m. ET on Monday, according to a market source.

Credit Suisse is the left arranger. KKR is the joint arranger.

Pricing on the loan remains to be determined. Call protection is set at 102, then 101.

Proceeds will be used to help finance the acquisition of the Scottsdale, Ariz.-based Chinese restaurant chain by TriArtisan Capital Partners LLC and Paulson & Co. Inc. from Centerbridge Partners LP in a deal expected to close in the first quarter of 2019.

Debt financing also includes a $55 million revolver.

The borrowing entity will be PFC Acquisition Corp.

Radiology moves up timing

Radiology Partners Inc. moved up timing on its $365 million incremental first-lien term loan B.

Commitments are due at noon ET Tuesday. Books were previously scheduled to remain open until Thursday.

As reported, the deal is in the market with price talk of Libor plus 475 bps with a 0% Libor floor and an original issue discount of 99, according to a market source.

The Libor plus 475 bps spread will also be applied to the company’s existing $800 million first-lien term loan B, the source said.

The incremental loan, as well as the existing term loan B, will get 101 soft call protection for six months.

No fee is being offered to existing lenders on their current term loan B holdings.

Barclays and Golub are the bookrunners on the deal.

Proceeds will be used to fund the acquisition of Austin Radiological Association and repay revolving credit facility borrowings associated with the acquisition of Desert Radiology.

New Enterprise Associates is the sponsor.

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

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