United Rentals, Allied Universal set talk; SeaWorld repricing launches Tuesday

By Paul A. Harris

Portland, Ore., Oct. 1 – In Monday's leveraged loan market United Rentals (North America) Inc. set talk for its $1 billion seven-year covenant-light term loan B (Baa3/expected: BBB-) at Libor plus 175 basis points to 200 bps.

Allied Universal Holdco LLC talked its $800 million incremental first-lien term loan due July 2022 (B2/B-/BB) at Libor plus 425 basis points to 450 bps with a 1% Libor floor at 99.

And SeaWorld Entertainment, Inc. set a lender call at 1 p.m. ET Tuesday for an approximately $544 million fungible add-on to its term loan B-5 (existing ratings B2/B).

The daily cash flows of the dedicated bank loan funds were positive on Friday, the most recent session for which data was available at press time, a trader said.

The loan funds saw inflows of $130 million on the day including $86 million of inflows to the bank loan ETFs.

Assets under management by loan funds totaled $152.1 billion at Friday's close, according to the trader who added that the figure compares to an all-time high of $153.7 billion in April of 2014.

United Rentals talks $1 billion

United Rentals (North America) set talk for its $1 billion seven-year covenant-light term loan B (Baa3/expected: BBB-) at Libor plus 175 basis points to 200 bps with the launch of the financing via a lender call on Monday.

The loan is offered at 99.75 and has a Libor floor of 0%.

Commitments are due at 12 p.m. ET on Friday.

Proceeds will be used to help fund the acquisition of BlueLine Rental from Platinum Equity for about $2.1 billion in cash.

Allied Universal talks $800 million

Allied Universal Holdco announced talk for its $800 million incremental first-lien term loan due July 2022 (B2/B-/BB) with the launch of the financing.

The loan is talked at Libor plus 425 basis points to 450 bps with a 1% Libor floor and will be offered at 99.

Commitments are due at 5 p.m. ET on Oct. 16.

Proceeds will be used with equity to fund the acquisition of U.S. Security Associates for about $1 billion.

SeaWorld sets lender call

SeaWorld Entertainment, Inc. set a lender call at 1 p.m. ET Tuesday for an approximately $544 million fungible add-on to its term loan B-5 (existing ratings B2/B).

JP Morgan is arranging the deal.

Price talk has the deal coming with a 300 basis points spread to Libor atop a 0.75 bps Libor floor at 99.25 to 99.5. There will be a 12.5 bps fee to existing consenting term loan B-5 lenders. The loan features a101 soft call for six months.

Commitments are due Oct. 10.

The Orlando, Fla.-based theme park operator plans to use the proceeds to pay down its existing term loan B-2 and fund an amendment.

Coinmach upsizes, trims discount

CSC ServiceWorks, the parent of Coinmach, upsized an add-on to its term loan B due Nov. 14, 2022 (current ratings B2/B) to $200 million from $150 million.

Spread talk remains at Libor plus 325 basis points atop a 1% Libor floor.

The discount has been cut to 99.75 from 99.5.

The deal comes with six months of soft call protection at 101.

Commitments were due at 5 p.m. ET Monday.

The Plainview, N.Y.-based laundry equipment service provider plans to use the proceeds to fund acquisitions, to repay revolver borrowings and for general corporate purposes.

Tunnel Hill pricing

Tunnel Hill Partners LP set pricing for its $275 million seven-year covenant-light term loan B (B2/B) at levels tighter than talk.

Revised pricing is for a coupon of Libor plus 350 basis points with a stepdown to Libor plus 325 bps when secured net leverage is 3.5 times or less.

The loan was launched on Sept. 17 at Libor plus 350 bps to 375 bps.

Tunnel Hill also narrowed the original issue discount to 99.75 from 99.5.

There were also covenant changes.

Commitments were due on Monday.

EmployBridge repricing

EmployBridge, LLC will launch a repricing of its $479 million covenant-light term loan B due April 2025 with a lender call set for 11 a.m. ET on Tuesday.

Credit Suisse is leading the transaction.

The repriced loan will be offered at par and have a Libor floor of 1%.

The 101 soft call protection will be reset for six months.

Current pricing on the loan is Libor plus 500 basis points.

Fogo de Chao repricing

Fogo de Chao, Inc. was scheduled to launch a repricing of its $324 million covenant-light first-lien term loan due April 2024 with a lender call on Monday.

The repricing will take interest down to Libor plus 400 basis points from Libor plus 450 bps.

As part of the transaction, the 101 soft call protection will be reset for six months.

The repriced loan is offered at par, and the 1% Libor floor will be left unchanged.

Credit Suisse is the lead bank.

GoodRx accelerates timing

GoodRx moved up timing on its $520 million seven-year term loan (B1/B+).

Commitments are due at 5 p.m. ET Wednesday. Previously books were scheduled to remain open until Oct. 9.

As reported, the term loan is talked at Libor plus 350 basis points to 375 bps with a 0% Libor floor and an original issue discount of 99.5.

As reported, the term loan is talked at Libor plus 350 basis points to 375 bps with a 0% Libor floor and an original issue discount of 99.5.

Proceeds will be used to help fund the acquisition of a significant minority stake in the company by Silver Lake Partners from existing owners Francisco Partners, Spectrum Equity and management.

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