LGC, Tecta America free to trade; SubCom, Savers, Pacific Dental, Frontier release talk

By Sara Rosenberg

New York, April 6 – LGC firmed sizes on its U.S. and euro term loan B tranches, finalized spreads at the low end of revised guidance and tightened the original issue discount on the euro piece before breaking the U.S. loan for trading on Tuesday, and Tecta America Corp.’s bank debt surfaced in the secondary market as well.

In more happenings, SubCom, Savers Inc., Pacific Dental Services LLC and Frontier Communications Corp. released price talk with launch, and OB Hospitalist Group and OEConnection came out with commitment deadlines on their new loan transactions.

Furthermore, RadNet Management Inc., Kissner (SCIH Salt Holdings Inc.) and N-able Inc. joined this week’s primary calendar.

LGC updated

LGC finalized the size on its U.S. covenant-lite term loan B due April 2027 at $300 million and the size on its euro covenant-lite term loan B due April 2027 at €330 million, versus a prior description of £496 million equivalent comprised of U.S. and euro tranches, according to a market source.

In addition, pricing on the U.S. term loan was set at Libor plus 375 basis points, the low end of revised talk of Libor plus 375 bps to 400 bps but up from initial talk of Libor plus 350 bps, and pricing on the euro term loan firmed at Euribor plus 375 bps, the low end of revised talk of Euribor plus 375 bps to 400 bps but up from initial talk in the range of Euribor plus 325 bps to 350 bps, the source said.

Also, the original issue discount on the euro term loan was changed to 99.75 from 99.5.

As before, the U.S. term loan has a 0.75% Libor floor and an original issue discount of 99.5, the euro term loan has a 0% floor, and both loans have 101 soft call protection for six months.

Previously in syndication, the Libor floor on the U.S. term loan was modified from 0.5%.

LGC hits secondary

Commitments for LGC’s bank debt were due at 11 a.m. ET on Tuesday and later in the day the U.S. term loan broke for trading, with one trader quoting the loan at 99½ bid, 99¾ offered and another trader quoting it at 99 5/8 bid, par 1/8 offered.

HSBC and Morgan Stanley are the joint global coordinators and physical bookrunners on the deal. Barclays, BNP Paribas, Credit Agricole, KKR Capital Markets, Mizuho, MUFG, Natixis, NatWest, Nomura and SMBC are joint bookrunners. Wilmington Trust is the agent.

The loans will be used to refinance some existing debt, fund a shareholder distribution and pay related transaction fees and expenses.

LGC is a U.K.-based life sciences tools company providing specialty genomic analysis tools, measurement tools and supply chain assurance solutions.

Tecta starts trading

Tecta America’s bank debt freed to trade as well, with the $615 million seven-year covenant-lite first-lien term loan quoted at 99¼ bid, par ¼ offered and the $170 million eight-year covenant-lite second-lien term loan quoted at 99 bid, par offered, a market source remarked.

Pricing on the first-lien term loan is Libor plus 425 bps with a 25 bps step-down after 0.5x total net leverage deleveraging and a 0.75% Libor floor. The debt was sold at an original issue discount of 99 and has 101 soft call protection for six months.

The second-lien term loan is priced at Libor plus 850 bps with a 0.75% Libor floor and was sold at a discount of 98.5. This tranche has call protection of 102 in year one and 101 in year two.

During syndication, the first-lien term loan was upsized from $600 million, the spread firmed at the low end of the Libor plus 425 bps to 450 bps talk and the step-down was added. Also, the second-lien term loan was downsized from $190 million and pricing was increased from talk in the range of Libor plus 800 bps to 825 bps.

Tecta getting revolver

Along with the first- and second-lien term loans, Tecta’s $910 million of credit facilities include a $125 million revolver.

Credit Suisse Securities (USA) LLC, UBS Investment Bank, RBC Capital Markets and Truist are leading the deal.

Proceeds will be used to refinance existing debt, to finance an acquisition, to fund a distribution and for general corporate purposes.

Tecta is a Rosemont, Ill.-based provider of commercial roofing services.

SubCom guidance

SubCom held its lender call on Tuesday and announced talk on its $730 million six-year first-lien term loan (B1/B) at Libor plus 475 bps to 500 bps with a 25 bps step-down at 3.05x net first-lien leverage, a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

Commitments are due at 5 p.m. ET on April 19, the source added.

Goldman Sachs Bank USA, Citigroup Global Markets Inc., Barclays, Credit Suisse Securities (USA) LLC, Jefferies LLC, Morgan Stanley Senior Funding Inc. and MUFG are leading the deal that will be used to fund a dividend to shareholders.

Cerberus is the sponsor.

SubCom is an Eatontown, N.J.-based provider of turnkey subsea fiber optic networks with engineering, manufacturing, installation and maintenance capabilities.

Savers proposed terms

Savers disclosed talk of Libor plus 575 bps to 600 bps with a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for six months on its $600 million first-lien term loan (B) that launched with a call during the session, a market source said.

Commitments are due at noon ET on April 20, the source added.

KKR Capital Markets, Jefferies LLC and Credit Suisse Securities (USA) LLC are leading the deal, which will be used to help fund the buyout of the company by Ares from Crescent Capital Group LP. Ares is a minority owner of the company but will gain full ownership with this transaction.

Closing is subject to customary conditions.

Savers is a Bellevue, Wash.-based thrift store chain.

Pacific Dental launches

Pacific Dental Services launched on its afternoon call its $600 million seven-year term loan B at talk of Libor plus 375 bps with a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

The company’s $850 million of credit facilities (B1/B) also include a $250 million revolver.

Commitments are due on April 20, the source added.

BNP Paribas Securities Corp., BofA Securities Inc., JPMorgan Chase Bank, KeyBanc Capital Markets and MUFG are leading the deal that will be used to refinance existing bank debt and for general corporate purposes.

Pacific Dental is an Irvine, Calif.-based provider of management services to affiliate dental practices.

Frontier holds call

Frontier Communications hosted a lender call at 11 a.m. ET to launch a $225 million add-on term loan and a repricing of its existing $1.25 billion DIP-to-exit term loan talked at Libor plus 375 bps to 400 bps with a 0.75% Libor floor and an original issue discount of 99, a market source remarked.

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

JPMorgan Chase Bank is leading the deal.

The add-on term loan will be used for general corporate purposes and the repricing will take the existing loan down from Libor plus 475 bps with a 1% Libor floor.

Frontier Communications is a Norwalk, Conn.-based telecommunications company.

OB Hospitalist deadline

OB Hospitalist Group set a commitment deadline of 5 p.m. ET on April 14 for its fungible $100 million incremental first-lien term loan that launched with a call during the session, according to a market source.

As previously reported, price talk on the incremental term loan is Libor plus 425 bps with a 1% Libor floor and an original issue discount of 99.27.

Antares Capital is leading the deal that will be used to fund a shareholder dividend.

The company currently has a $192 million first-lien term loan due August 2024. Pricing on the existing term loan is grid-based. The current rate is Libor plus 400 bps with a 1% Libor floor, but the spread will be stepping up to Libor plus 425 bps based on the grid.

OB Hospitalist is a Greenville, S.C.-based OB/GYN provider with a network of more than 1,000 hospitalists serving 175 partner hospitals across 34 state systems.

OEConnection timing

OEConnection is asking for commitments by 5 p.m. ET on April 13 for its $75 million incremental first-lien term loan that launched with a lender call on Tuesday, a market source said.

Pricing on the incremental term loan is Libor plus 400 bps with a 0% Libor floor, in line with pricing on the company’s existing $454 million first-lien term loan due September 2026, and the new debt is talked with an original issue discount of 98.79.

The company is also getting a $75 million pre-placed delayed-draw first-lien term loan.

Antares Capital is leading the deal (B2/B-), which will be used to fund an acquisition.

OEConnection is a Cleveland-based provider of SaaS solutions that help drive genuine original equipment parts sales and services across the entire automotive system.

RadNet joins calendar

RadNet set a lender call for 11 a.m. ET on Wednesday to launch $870 million of credit facilities (B), according to a market source.

The facilities consist of a $195 million five-year revolver and a $675 million seven-year term loan B, the source said.

Barclays is leading the deal that will be used to refinance the company’s existing credit facilities and replenish balance sheet cash for general corporate purposes.

RadNet is a Los Angeles-based owner and operator of outpatient diagnostic imaging centers.

Kissner on deck

Kissner scheduled a lender call for 11 a.m. ET on Wednesday to launch $1.175 billion of senior secured credit facilities (B3), a market source remarked.

The facilities consist of a $275 million incremental revolver and a $900 million incremental first-lien term loan B, the source added.

Morgan Stanley Senior Funding Inc. is the left lead on the deal that will be used with $1.1 billion of new secured debt, $700 million of new unsecured debt and $993 million of equity to fund the $3.2 billion acquisition of K+S Aktiengesellschaft’s Americas salt business, refinance existing debt, and pay associated fees and expenses.

Closing is expected by the summer, subject to customary conditions, including antitrust approvals.

Kissner, a subsidiary of Stone Canyon Industries Holdings LLC, is an Overland Park, Kan.-based pure-play producer and supplier of salt.

N-able coming soon

N-able emerged with plans to hold a lender call at 11:30 a.m. ET on Wednesday to launch a $350 million term loan B, according to a market source.

Commitments are due at 5 p.m. ET on April 15, the source added.

The company is also expected to get a $75 million revolver.

JPMorgan Chase Bank is leading the deal that will be used to repay existing debt and for general corporate purposes in connection with the company’s spinoff from SolarWinds.

N-able is a Wakefield, Mass.-based provider of cloud-based software solutions for managed service providers.

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