Olaplex, Leaf Home, Les Schwab, Team Health updates emerge; Viasat, HelpSystems tweak timing

By Sara Rosenberg

New York, Feb. 16 – In the primary market on Wednesday, Olaplex Holdings Inc. firmed the spread on its term loan B at the low side of talk and tightened the original issue discount, and Leaf Home (LHS Borrower LLC) set pricing on its term loan B at the high end of guidance and removed step-downs.

Also, Les Schwab Tire Centers finalized the original issue discount on its add-on term loan at the tight side of talk, and Team Health increased pricing on its extended term loan B.

In addition, Viasat Inc. extended the commitment deadline for its term loan B and HelpSystems (HS Purchaser LLC) accelerated the deadline for its incremental first-lien term loan.

Furthermore, Entegris LLC, Consumer Cellular Inc., Resideo Technologies Inc. and Trillium Flow Technologies released price talk with launch, and Callaway Golf Co. joined this week’s new issue calendar.

Olaplex tweaked

Olaplex Holdings set pricing on its $675 million seven-year term loan B (B1/BB-) at SOFR plus 375 basis points, the low end of the SOFR plus 375 bps to 400 bps talk, and moved the original issue discount to 99.75 from 99.5, according to a market source.

As before, the term loan has a 25 bps step-down at 0.5x inside closing date first-lien net leverage, a 0.5% floor and 101 soft call protection for six months.

Recommitments were due at 5 p.m. ET on Wednesday and allocations are expected on Thursday morning, the source added.

Goldman Sachs Bank USA, JPMorgan Chase Bank, Morgan Stanley Senior Funding Inc., Barclays, BofA Securities Inc., Jefferies LLC and Truist are leading the deal that will be used to refinance the company’s existing capital structure.

Advent International is the sponsor.

Olaplex is a hair care company.

Leaf Home updated

Leaf Home firmed the spread on its $1.41 billion seven-year term loan B (B1/B) at SOFR+CSA plus 475 bps, the high end of the SOFR+CSA plus 450 bps to 475 bps talk, and removed the 25 bps step-down based on net leverage and the 25 bps step-down upon an initial public offering, a market source said.

The term loan still has a 0.5% floor, an original issue discount of 99, CSA of 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate, and 101 soft call protection for six months.

Recommitments were due at 5 p.m. ET on Wednesday, the source added.

JPMorgan Chase Bank, Barclays, BofA Securities Inc., Goldman Sachs Bank USA, KeyBanc Capital Markets, Truist, Huntington, Golub Capital and Citizens are leading the deal that will be used to refinance an existing $1.358 billion term loan B and to pay associated fees and expenses.

Leaf Home is a Hudson, Ohio-based technology-enabled direct-to-consumer provider of home solutions.

Les Schwab finalized

Les Schwab Tire Centers set the original issue discount on its fungible $301 million add-on term loan due 2027 (B) at 99.5, the tight end of the 99 to 99.5 talk, according to a market source.

Pricing on the add-on term loan is Libor plus 325 bps with a step-up to Libor plus 350 bps if net total leverage is above 4.5x and a 0.75% Libor floor.

JPMorgan Chase Bank is leading the deal that will be used to fund a dividend.

Les Schwab is a Bend, Ore.-based tire retail chain.

Team Health modified

Team Health lifted pricing on its extended term loan B due February 2027 to SOFR plus 525 bps if corporate ratings are lower than B3/B- with stable outlooks and SOFR plus 475 bps if corporate ratings are B3/B- with stable outlooks, from talk of SOFR plus 450 bps at launch, a market source remarked.

Current corporate ratings are Caa1/B-, but, the Moody’s Investors Service rating is under review for upgrade.

The company also changed the MFN to 50 bps for life from 75 bps, and reduced the incremental.

The extended term loan still has a 1% floor, an original issue discount of 99.5 and 101 soft call protection for six months.

The extension would push out the maturity on the term loan from February 2024. The term loan is currently sized at $2.619 billion but the company may pay down up to $300 million of the debt with the extension.

Commitments are due at 10 a.m. ET on Thursday, the source added.

JPMorgan Chase Bank is leading the deal.

Team Health is a Knoxville, Tenn.-based physician services organization.

Viasat revises timing

Viasat extended the commitment deadline for its $700 million term loan B (Ba3/BB/BB+) to 5 p.m. ET on Feb. 23 from 5 p.m. ET on Thursday, according to a market source.

Talk on the term loan is SOFR plus 375 bps with a 0.5% floor, an original issue discount of 99 and 101 soft call protection for six months.

JPMorgan Chase Bank and BofA Securities Inc. are leading the deal. BofA Securities is the administrative agent.

Proceeds will be used to repay revolver borrowings and for general corporate purposes.

Viasat is a Carlsbad, Calif.-based communications company.

HelpSystems accelerated

HelpSystems changed the commitment deadline for its fungible $555 million incremental first-lien term loan due November 2026 to noon ET on Thursday from 4 p.m. ET on Thursday, a market source remarked.

Allocations will be distributed thereafter, the source added.

Talk on the incremental first-lien term loan is SOFR+10 bps CSA plus 400 bps with a 0.75% floor and an original issue discount of 99.5 to 99.75.

The company is also getting a fungible $170 million privately placed incremental second-lien term loan due November 2027 with call protection of a 102 hard call until May 19 and then a 101 hard call until May 19, 2023.

Jefferies LLC and Golub are leading the deal that will be used to fund three acquisitions currently under exclusivity.

Pro forma for the transaction, the first-lien term loan will total $2.105 billion and the second-lien term loan will total $670 million.

HelpSystems is an Eden Prairie, Minn.-based provider of cybersecurity and automation software.

Entegris proposed terms

Entegris held its lender call on Wednesday afternoon and released talk on its $2.495 billion seven-year senior secured covenant-lite term loan B at SOFR plus 275 bps to 300 bps with a 0% 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 March 2, the source added.

Morgan Stanley Senior Funding Inc., Barclays, BofA Securities Inc., Citigroup Global Markets Inc., PNC, Truist and Wells Fargo Securities LLC are leading the deal that will be used with other secured and unsecured debt to help fund the acquisition of CMC Materials Inc. for $133.00 in cash and 0.4506 of a share of Entegris common stock per CMC share, and to pay fees and expenses related to the transaction. The acquisition has an enterprise value of about $6.5 billion.

Closing is expected in the second half of this year, subject to customary conditions, including regulatory approvals and approval by CMC Materials shareholders.

Entegris is a Billerica, Mass.-based supplier of advanced materials and process solutions for the semiconductor and other high-technology industries. CMC Materials is an Aurora, Ill.-based supplier of advanced materials primarily for the semiconductor industry.

Consumer Cellular guidance

Consumer Cellular came out with talk of SOFR plus 400 bps with a 0.75% floor and an original issue discount of 99.5 on its fungible $872 million add-on first-lien term loan due December 2027 that launched with a call in the morning, a market source said.

The add-on term loan has 101 soft call protection for six months.

Commitments are due at noon ET on Feb. 24, the source added.

BofA Securities Inc., Barclays, Credit Suisse Securities (USA) LLC and Jefferies LLC are leading the deal, which will be used to fund a dividend to the sponsor.

With this transaction, pricing on the company’s existing first-lien term loan is moving to SOFR from Libor.

Consumer Cellular is a Portland, Ore.-based provider of postpaid wireless services.

Resideo sets talk

Resideo Technologies announced original issue discount talk of 99 on its fungible $200 million add-on term loan (Ba1) due 2028 shortly before its afternoon call began, a market source remarked.

Pricing on the add-on term loan is Libor plus 225 bps with a 0.5% Libor floor, and the debt has 101 soft call protection for six months.

Commitments are due at 5 p.m. ET on Feb. 23.

JPMorgan Chase Bank is leading the deal that will be used to help fund the acquisition of First Alert Inc., an Aurora, Ill.-based provider of home safety products, from Newell Brands Inc. for $593 million and for general corporate purposes.

Closing is expected this quarter, subject to customary conditions, including regulatory approvals.

Resideo is an Austin, Tex.-based provider of home comfort and security solutions and distributor of commercial and residential security and audio-visual products.

Trillium launches

Trillium Flow held a lender presentation in the afternoon, launching a $75 million incremental term loan (B-) at talk of SOFR+CSA plus 550 bps with a 1% floor and an original issue discount in the 99 area, a market source said.

CSA is 11.4 bps one-month rate, 26.2 bps three-month rate and 42.8 bps six-month rate, the source said.

Commitments are due on March 2, the source added.

BNP Paribas Securities Corp. is leading the deal that will be used to fund the acquisition of Termomeccanica Pompe S.p.A., a pump manufacturing company.

Trillium, a First Reserve portfolio company, is a designer, manufacturer, and aftermarket services provider of engineered valves and pumps used in critical infrastructure, energy, and broader industrial applications.

Callaway on deck

Callaway Golf will hold a lender call at 9 a.m. ET on Thursday to launch a $950 million seven-year term loan B, according to a market source.

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

BofA Securities Inc., JPMorgan Chase Bank, MUFG and Truist are leading the deal that will be used to refinance term loans at Callaway and at Topgolf International Inc., to repay revolving credit facility borrowings and to add cash to the balance sheet.

Callaway Golf is a Carlsbad, Calif.-based golf equipment and active lifestyle company.

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