Resideo breaks; AppLovin, Time Manufacturing revised; Ensemble, Ontic move deadlines

By Sara Rosenberg

New York, Feb. 8 – Resideo Technologies Inc. lowered pricing on its term loan B and adjusted the original issue discount, and then the debt made its way into the secondary market on Monday.

In other news, AppLovin Corp. tightened the spread and issue price on its add-on term loan and added a repricing of an existing term loan tranche to the mix, and Time Manufacturing Co. increased the size of its incremental term loan and modified the original issue discount.

Also, Ensemble Health and Ontic (Bleriot US Bidco Inc.) accelerated the commitment deadlines for their term loan transactions.

Furthermore, American Trailer Works, AmWINS Group Inc., Enterprise Development Authority, SCP Health (Onex TSG Intermediate Corp.), Dell Technologies and GrafTech Finance Inc. revealed price talk with launch.

Additionally, Domtar Personal Care, National Mentor, Ravago Holdings America Inc., Asplundh Tree Expert LLC, Ivanti Software Inc., Peraton, Bombardier Recreational Products Inc., DRW Holdings LLC, Precision Medicine Group LLC and ADS Tactical Inc. joined this week’s primary calendar.

Resideo flexes, trades

Resideo Technologies cut pricing on its $950 million seven-year term loan B to Libor plus 225 basis points from talk in the range of Libor plus 250 bps to 275 bps and revised the original issue discount to 99.75 from 99.5, a market source said.

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

Previously in syndication, the term loan was upsized from $800 million.

Recommitments were due at 3:30 p.m. ET on Monday and the term loan B began trading later in the day, with levels quoted at 99 7/8 bid, par 3/8 offered, another source added.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance an existing senior secured term loan A and term loan B, to redeem $140 million of outstanding senior notes, to fund future acquisitions and for general corporate purposes.

The company also plans on getting a new $500 million five-year revolver.

Resideo is an Austin, Tex.-based provider of home comfort and security solutions.

AppLovin reworked

AppLovin trimmed pricing on its $300 million add-on term loan to Libor plus 375 bps from Libor plus 400 bps and moved the issue price to par from 99.75, according to a market source.

The company also added a repricing of its existing $300 million term loan to Libor plus 375 bps from Libor plus 400 bps and is offering the repricing at par, the source said.

The term loan debt still has a 0% Libor floor.

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

Upon completion, the add-on term loan and repriced term loan will be fungible with the company’s existing $1.2 billion term loan that is already priced at Libor plus 375 bps with a 0% Libor floor, creating one $1.8 billion term loan tranche.

J.P. Morgan Securities LLC, BofA Securities Inc. and KKR Capital Markets are leading the deal.

The add-on term loan will be used for acquisition funding and general corporate purposes.

AppLovin is a Palo Alto, Calif.-based mobile monetization platform that enables performance-based user acquisition campaigns for mobile game and other app developers.

Time revised

Time Manufacturing raised its incremental term loan due February 2023 to $150 million from $135 million and changed the original issue discount to 99.76 from 98.8, a market source remarked.

In addition, the incremental term loan will now be fungible with the existing term loan as opposed to non-fungible.

Pricing on the incremental term loan is still Libor plus 500 bps with a 1% Libor floor.

Recommitments are due at noon ET on Tuesday, the source added.

BNP Paribas Securities Corp. is leading the deal that will be used to fund the acquisition of Ruthmann, a manufacturer of aerial work platforms based in Germany.

The incremental mezzanine and new equity for the transaction were reduced as a result of the term loan upsizing.

Closing is expected this quarter, subject to regulatory clearance.

Time Manufacturing is a Waco, Tex.-based manufacturer of vehicle-mounted aerial lifts, digger derricks, bucket trucks and bridge inspection equipment.

Ensemble moves deadline

Ensemble Health accelerated the commitment deadline for its fungible $685 million incremental term loan B (B2/B) due Aug. 1, 2026 to 5 p.m. ET on Tuesday from Thursday, according to a market source.

Pricing on the incremental term loan is Libor plus 375 bps with a 0% Libor floor, in line with existing term loan pricing, and the new debt is talked with an original issue discount of 99.

Goldman Sachs Bank USA, Antares Capital, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Guggenheim and Mizuho are leading the deal that will be used to fund a distribution to shareholders.

The company is also seeking an amendment of its existing credit agreement to get a one-time restricted payment waiver to allow for the transaction and lenders are being offered a 12.5 bps amendment fee.

Golden Gate Capital is the sponsor.

Ensemble Health is a Cincinnati-based provider of technology-enabled revenue cycle management services to hospitals and health systems.

Ontic tweaks timing

Ontic moved up the commitment deadline for its $551 million covenant-lite first-lien term loan due October 2026 to noon ET on Wednesday from noon ET on Friday, a market source said.

Talk on the term loan is Libor plus 400 bps to 425 bps with a 0% Libor floor, an original issue discount of 99.75 to par and 101 soft call protection for six months.

Nomura Securities is leading the deal that will be used to reprice an existing term loan down from Libor plus 475 bps with a 0% Libor floor.

Ontic is a provider of OEM-licensed parts and aftermarket services for mature aerospace and defense platforms.

American Trailer guidance

Also in the primary market, American Trailer Works held its lender call on Monday and announced price talk on its $750 million seven-year first-lien term loan (B3/B) at Libor plus 450 bps to 475 bps with a 0.75% Libor floor and an original issue discount of 99, according to a market source.

Commitments are due at noon ET on Feb. 17, the source added.

Goldman Sachs Bank USA, Barclays and Truist are leading the deal that will be used to refinance existing senior secured notes, add cash to the balance sheet and pay related fees and expenses.

Bain Capital is the sponsor.

American Trailer Works is Richardson, Tex.-based manufacturer and distributor of professional grade trailers, consumer grade trailers, truck equipment and retail parts.

AmWINS refinancing

AmWINS held a lender call at 1 p.m. ET to launch a $1.995 billion seven-year term loan B (B+) talked at Libor plus 225 bps to 250 bps with a 25 bps step-down at an upgrade to Ba3/BB- corporate family ratings, a 0.75% Libor floor and an original issue discount of 99.75, a market source said.

The term loan has 101 soft call protection for six months and a springing maturity to January 2026 if $250 million of the company’s senior notes are outstanding on such date.

Commitments are due at 5 p.m. ET on Feb. 16, the source added.

Goldman Sachs Bank USA is the left lead on the deal that will be used to refinance an existing term loan B and pay related fees and expenses.

AmWINS is a Charlotte, N.C.-based specialty insurance broker.

Enterprise holds call

Enterprise Development Authority surfaced in the morning with plans to hold a lender call at noon ET to launch a $475 million seven-year covenant-lite term loan B (B3/B/BB) talked at Libor plus 450 bps with a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, a market source remarked.

Commitments are due at noon ET on Feb. 18, the source added.

Wells Fargo Securities LLS is leading the deal that will be used to refinance existing debt.

Enterprise Development Authority is an unincorporated governmental instrumentality of the Estom Yumeka Maidu Tribe of the Enterprise Rancheria and was formed in 2015 to own, develop, construct, and operate all gaming and related businesses of the Tribe, including the Hard Rock Hotel & Casino – Sacramento at Fire Mountain.

SCP launches

SCP Health came out early in the day with plans to hold a lender call at 2:30 p.m. ET on Monday to launch $619 million of credit facilities (B2/B), according to a market source.

The facilities consist of an $89 million revolver and a $530 million seven-year covenant-lite first-lien term loan, the source said.

Talk on the term loan is Libor plus 425 bps with a 0.75% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

Commitments are due at 5 p.m. ET on Feb. 17, the source added.

Credit Suisse Securities (USA) LLC, Barclays, BMO Capital Markets, Deutsche Bank Securities Inc., Jefferies LLC and Truist are leading the deal that will be used with balance sheet cash to refinance existing first-and second-lien term loans.

SCP Health is a Lafayette, La.-based provider of outsourced emergency medicine and hospital medicine services.

Dell repricing

Dell Technologies launched without a call a $3.143 billion covenant-lite first-lien term loan (Baa3/BBB-/BBB-) due September 2025 talked at Libor plus 175 bps with a 0.5% Libor floor, a par issue price and 101 soft call protection for six months, a market source said.

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

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to reprice an existing term loan down from Libor plus 200 bps with a 0.75% Libor floor.

Dell Technologies is a Round Rock, Tex.-based technology company.

GrafTech proposed terms

GrafTech held a lender call at 11 a.m. ET to launch a $794 million term loan B (Ba3/BB) due 2025 talked at Libor plus 300 bps to 325 bps with a 0.5% 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 Thursday, the source added.

J.P. Morgan Securities LLC is leading the deal that will be used to reprice an existing term loan down from Libor plus 350 bps with a 1% Libor floor following a $150 million paydown of the debt to $794 million with cash on hand later this week.

GrafTech is a Brooklyn Heights, Ohio-based manufacturer of graphite electrodes and petroleum coke.

Domtar readies loan

Domtar Personal Care set a lender call for 10 a.m. ET on Tuesday to launch a $620 million seven-year covenant-lite first-lien term loan, according to a market source.

The term loan has 101 soft call protection for six months, the source said.

Commitments are due on Feb. 18.

Deutsche Bank Securities Inc., Barclays, BNP Paribas Securities Corp., RBC Capital Markets and CIBC are leading the deal that will be used to help fund the buyout of the company by American Industrial Partners from Domtar Corp. for $920 million.

Closing is expected this quarter, subject to receipt of regulatory approvals and other customary conditions.

Domtar Personal Care is a manufacturer and distributor of personal care products.

National Mentor on deck

National Mentor scheduled a lender call for 11 a.m. ET on Tuesday to launch $1.895 billion of credit facilities, a market source remarked.

The facilities consist of a $1.43 billion first-lien term loan, a $165 million delayed-draw first-lien term loan, a $50 million first-lien term loan C and a $250 million second-lien term loan, the source added.

Goldman Sachs Bank USA is the left lead on the deal that will be used to refinance existing debt and fund a distribution to current shareholders.

Centerbridge is the sponsor.

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.

Ravago joins calendar

Ravago Holdings America will hold a lender call at 11 a.m. ET on Tuesday to launch a $325 million seven-year covenant-lite term loan B (B1//BB) talked at Libor plus 250 bps to 275 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, a market source said.

Commitments are due at noon ET on Feb. 18, the source added.

Wells Fargo Securities LLC is leading the deal that will be used to refinance an existing term loan B, payoff an intercompany loan from Ravago SA established to fund Blue Tree’s acquisition of Bamberger, fund a distribution to the Ultimate Parent and pay related transaction fees and expenses.

Ravago is a distributor of plastic resins in North and Latin America, and an indirect subsidiary of Luxembourg-based Ravago SA.

Asplundh coming soon

Asplundh Tree Expert scheduled a lender call for 11 a.m. ET on Tuesday to launch a $1.995 billion covenant-lite term loan B due 2027 talked at Libor plus 175 bps to 200 bps with a 0% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

If pricing firms at Libor plus 200 bps, there will be a step-down to Libor plus 175 bps when net leverage is less than 2x, the source said.

Commitments are due at noon ET on Thursday.

Wells Fargo Securities LLC is the left lead on the deal that will be used to reprice an existing term loan B, which priced last year at Libor plus 250 bps with a step-down to Libor plus 225 bps when first-lien net leverage is less than 2x and a 0% Libor floor.

Asplundh is a Pennsylvania-based provider of vegetation management services.

Ivanti readies deal

Ivanti Software will hold a lender call at 10:30 a.m. ET on Tuesday to launch a $440 million add-on term loan, a market source remarked.

Morgan Stanley Senior Funding Inc. is the left lead on the deal that will be used to fund the acquisition of Cherwell Software, a provider of enterprise service management solutions. and to pay related fees and expenses.

Ivanti is a South Jordan, Utah-based company that automates IT and security operations to discover, manage, secure and service from cloud to edge.

Peraton sets call

Peraton plans to hold a lender call at 9 a.m. ET on Wednesday to launch a $2.145 billion seven-year term loan (B), according to a market source.

Commitments are due at 5 p.m. ET on Feb. 22, the source said.

J.P. Morgan Securities LLC, KKR Capital Markets, Barclays, Goldman Sachs Bank USA, UBS Investment Bank, Macquarie Capital (USA) Inc. and RBC Capital Markets are leading the deal that will be used to refinance existing debt and help fund the recently completed acquisition of Northrop Grumman Corp.’s IT services business for $3.4 billion in cash.

Peraton, a Veritas Capital portfolio company, is a provider of highly differentiated national security solutions and technologies.

Bombardier on deck

Bombardier Recreational Products scheduled a lender call for 11 a.m. ET on Tuesday to launch a $300 million add-on term loan B-1 (Ba3), a market source said.

RBC Capital Markets, Citigroup Global Markets Inc., BMO Capital Markets and TD Securities (USA) LLC are leading the deal that will be used with cash on hand to repay an existing roughly $600 million term loan B-2 and fees and expenses associated with the transaction.

The company’s existing term loan B-1 has about $1.2 billion outstanding.

Bombardier is a Valcourt, Quebec-based designer, manufacturer, distributor and marketer of powersports vehicles and marine products.

DRW joins calendar

DRW Holdings will hold a lender call at 10:30 a.m. ET on Tuesday to launch a $500 million seven-year first-lien term loan, according to a market source.

Jefferies LLC is leading the deal that will be used to refinance the company’s existing $297 million senior secured first-lien term loan issued in 2019, expand its trading capital and pay related fees and expenses.

DRW is a technology-driven electronic trading firm.

Precision plans add-on

Precision Medicine Group set a lender call for 10 a.m. ET on Tuesday to launch a $75 million add-on first-lien term loan B, a market source remarked.

Morgan Stanley Senior Funding Inc. and Blackstone Securities Partners LP are leading the arranger group for the deal that will be used to repay revolver drawings incurred in conjunction with an acquisition, fund cash to balance sheet and pay related transaction fees and expenses.

Precision Medicine is a specialized health care services company that provides product development and commercialization support for pharmaceutical and life sciences businesses.

ADS sets call

ADS Tactical scheduled a lender call for Tuesday to launch a $700 million term loan B, according to a market source.

J.P. Morgan Securities LLC is leading the deal that will be used to repay existing debt and fund a dividend.

ADS is a Virginia Beach, Va.-based military equipment supplier that provides tactical equipment, procurement, logistics, government contracts and supply chain solutions.

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