CLEAResult, Lightstone break; Global Business Travel, Convergint deal changes surface

By Sara Rosenberg

New York, Aug. 2 – CLEAResult (CRCI Longhorn Holdings Inc.) saw its credit facilities emerge in the secondary market on Thursday, with the first-and second-lien term loans quoted above their issue prices, and Lightstone Holdco LLC’s incremental term loan B began trading too.

Over in the primary market, Global Business Travel Holdings Ltd. (Amex GBT) tightened the spread, floor and original issue discount on its term loan B, and Convergint (Gopher Sub Inc.) increased the size of its incremental first-lien term loan and tightened the issue price.

In addition, Frontdoor, SiteOne Landscape Supply Inc., Capstone Logistics and Kettle Cuisine released price talk with launch, and Alion Science & Technology Corp. came out with further details on its upcoming loan deal.

CLEAResult hits secondary

CLEAResult’s credit facilities began trading on Thursday, with the $445 million seven-year first-lien term loan (B1/B) quoted by one trader at par 3/8 bid, par 7/8 offered and by a second trader at par ½ bid, par 7/8 offered, and the $130 million eight-year second-lien term loan (Caa1/CCC+) quoted by the first trader at par ¼ bid, 101¼ offered and by the second trader at 99¾ bid, par ½ offered.

Pricing on the first-lien term loan is Libor plus 350 basis points with a 0% Libor floor and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months.

The second-lien term loan is priced at Libor plus 725 bps with a 0% Libor floor and was issued at a discount of 99.25. This tranche has call protection of 102 in year one and 101 in year two.

On Wednesday, the first-lien term loan was upsized from $425 million and pricing was lowered from talk in the range of Libor plus 375 bps to 400 bps. Also, the second-lien term loan was downsized from $150 million, the spread was reduced from talk in the range of Libor plus 750 bps to 775 bps and the discount was tightened from 99.

CLEAResult getting revolver

In addition to the first-and second-lien term loans, CLEAResult’s $660 million of credit facilities include an $85 million revolver (B1/B).

Goldman Sachs Bank USA, UBS Investment Bank, Credit Suisse Securities (USA) LLC and KeyBanc Capital Markets are leading the deal, with Goldman the left lead on the first-lien loan and UBS the left lead on the second-lien loan.

Proceeds will be used to help fund the buyout of the company by TPG Growth and Rise Fund from General Atlantic.

Closing is expected during the week of Aug. 6.

CLEAResult is an Austin, Texas-based provider of energy efficiency solutions for utility companies.

Lightstone frees up

Lightstone Holdco’s fungible $300 million incremental covenant-light term loan B (Ba3/BB-) due January 2024 broke for trading in the morning, with levels seen at 99 5/8 bid, par offered, a trader remarked.

Pricing on the incremental loan is Libor plus 375 bps with a 1% Libor floor, in line with existing term loan B pricing. The incremental loan was sold at an original issue discount of 99.5 and has 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to fund a shareholder distribution.

Lightstone is a Princeton, N.J.-based owner of a portfolio of power generation facilities located in the PJM region.

Global Business revised

Moving to the primary market, Global Business Travel Holdings cut pricing on its $250 million seven-year covenant-light term loan B (BBB-/BBB) to Libor plus 250 bps from talk in the range of Libor plus 275 bps to 300 bps, reduced the Libor floor to 0% from 1% and moved the original issue discount to 99.75 from 99.5, a market source said.

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

Commitments were due at noon ET on Thursday, the source added.

Morgan Stanley Senior Funding Inc. and Goldman Sachs Bank USA are leading the deal that will be used with cash on hand to fund the acquisition of Hogg Robinson Group plc, to repurchase some of Hogg Robinson’s debt, to pay related fees and expenses and for other general corporate purposes.

Closing is expected late next week.

Late in the day, the term loan freed to trade at par ¼ bid, 101¼ offered, a trader said.

Global Business Travel is a travel management company. Hogg Robinson is a B2B services company specializing in travel management.

Convergint tweaks loan

Convergint raised its incremental first-lien term loan due Feb. 1, 2025 to $65 million from $55 million and changed the original issue discount to 99 from 98.75, a market source said.

Like the existing first-lien term loan, the incremental loan is priced at Libor plus 300 bps with a 0.75% Libor floor.

Recommitments are due at 11 a.m. ET on Friday, the source added.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to repay revolver borrowings and for general corporate purposes.

Convergint is a Schaumberg, Ill., service-based security systems integrator.

Frontdoor reveals talk

Frontdoor held its bank meeting on Thursday and launched its $650 million seven-year term loan B (Ba2/B+) at talk of Libor plus 275 bps to 300 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, according to a market source.

Commitments are due at noon ET on Aug. 14, the source said.

J.P. Morgan Securities LLC is leading the deal that will be used to help fund the spinoff of ServiceMaster Global Holdings Inc.’s American Home Shield business.

The company is also expected to get an up to $250 million revolver (B+) and issue about $350 million of senior unsecured notes.

Frontdoor is a Memphis, Tenn.-based provider of home service plans.

SiteOne holds call

SiteOne Landscape Supply hosted a lender call at 11 a.m. ET on Thursday to launch a $100 million add-on covenant-light first-lien term loan (B2) due Oct. 29, 2024 and extension of its existing roughly $347 million covenant-light first-lien term loan (B2) to Oct. 29, 2024 from April 29, 2022, market sources remarked.

Talk on the add-on term loan and extended term loan is Libor plus 275 bps with a 1% Libor floor, in line with existing first-lien term loan pricing. The add-on is talked with an original issue discount of 99.75 and lenders are offered a 25 bps consent fee for the extension amendment, sources added

Commitments are due on Aug. 9.

UBS Investment Bank is the left lead on the deal that is expected to close this month.

The add-on loan will be used to repay some ABL revolver borrowings.

SiteOne is a Roswell, Ga.-based distributor of wholesale irrigation, landscape lighting, nursery, hardscapes, maintenance products and supplies for the green industry.

Capstone sets guidance

Capstone Logistics came out with original issue discount talk of 99.5 on its $80.5 million add-on senior secured term loan B (B-) due Oct. 7, 2021 that launched with a morning call, a market source said.

The add-on term loan B is priced at Libor plus 450 bps with a 1% Libor floor, which matches existing term loan B pricing, and is split between a $60.5 million funded tranche and a $20 million delayed-draw tranche.

The delayed-draw piece has a ticking fee of 100 bps starting on day 61 and a three month availability period.

Commitments are due at 5 p.m. ET on Aug. 9, the source added.

Goldman Sachs Bank USA is leading the deal that will be used for mergers and acquisitions.

Capstone is a Norcross, Ga.-based provider of outsourced supply chain services.

Kettle Cuisine launches

Kettle Cuisine launched at its bank meeting its $240 million seven-year covenant-light first-lien term loan at talk of Libor plus 400 bps to 425 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, a market source remarked.

Commitments are due on Aug. 16, the source added.

The company’s $361.5 million of credit facilities also include a $50 million five-year revolver and a $71.5 million pre-placed second-lien term loan.

BNP Paribas Securities Corp. is leading the deal that will be used to fund the merger of Kettle Cuisine with Bonewerks Culinarte, both of which are owned by Kainos Capital.

Kettle Cuisine is a Lynn, Mass.-based manufacturer of soups prepared in refrigerated and frozen formats. Bonewerks Culinarte is a Green Bay, Wis.-based producer of demi-glace, sauces and sous-vide entrees.

Alion size surfaces

Alion Science & Technology will launch a $124.2 million add-on first-lien term loan at its previously announced 9:30 a.m. ET bank meeting in New York on Tuesday, according to a market source.

UBS Investment Bank is leading the deal that will be used with a $43 million privately placed add-on to the company’s mezzanine notes and additional contributed equity to fund the acquisition of MacAulay-Brown Inc.

Alion, a portfolio company of Veritas Capital, is a McLean, Va.-based research and development, IT and operational services company. MacAulay-Brown is a Dayton, Ohio-based provider of complex engineering and mission critical technology solutions and services for national security missions across Department of Defense and Intelligence Community customers.

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