GPS term loan frees to trade atop OID; Tecta America, Safe Fleet deal revisions surface

By Sara Rosenberg

New York, Nov. 27 – GPS Hospitality saw its credit facilities hit the secondary market on Tuesday, with the term loan B quoted above its original issue discount.

Meanwhile, in the primary market, Tecta America Corp. sweetened the spread, original issue discount and call protection on its first-lien term loan and eliminated the second-lien term loan from its proposed capital structure.

Furthermore, Safe Fleet Holdings LLC widened the spread and issue price on its term loan, added call protection and reworked the debt to be a stand-alone piece instead of a fungible add-on tranche, and Sorenson Holdings LLC pulled its term loan from market.

Also, Plaskolite LLC, Knowlton Development Corp., FR BR Holdings, Elo Touch Solutions and Apollo Infrastructure Equity Portfolio released price talk with launch, and Latham Pool Products Inc. and Priority Payment Systems are getting ready to bring new deals to market.

GPS Hospitality breaks

GPS Hospitality’s credit facilities began trading on Tuesday, with the $265 million seven-year term loan B seen at 99 1/8 bid, 99 5/8 offered, according to a market source.

Pricing on the term loan B is Libor plus 425 basis points with a 0% Libor floor, and it was sold at an original issue discount of 99. The loan has 101 soft call protection for six months.

During syndication, pricing on the term loan B firmed at the high end of the Libor plus 400 bps to 425 bps talk, a financial covenant was added to the initially covenant-light loan and the MFN sunset was eliminated.

The company’s $305 million of credit facilities (B3/B-) also include a $40 million revolver.

SunTrust Robinson Humphrey Inc. is leading the deal that will be used to refinance existing debt and fund an acquisition.

GPS Hospitality is an Atlanta-based Burger King and Popeyes Louisiana Kitchen franchisee.

Tecta reworks deal

Moving to the primary market, Tecta America lifted pricing on its $375 million seven-year covenant-light first-lien term loan to Libor plus 450 bps from talk in the range of Libor plus 400 bps to 425 bps, moved the original issue discount to 99 from 99.5 and pushed out the 101 soft call protection to one year from six months, while leaving the 0% Libor floor unchanged, a market source said.

Additionally, the company canceled plans for a $100 million eight-year covenant-light second-lien term loan that was talked at Libor plus 800 bps to 825 bps with a 0% Libor floor, a discount of 99 and call protection of 102 in year one and 101 in year two, the source continued.

The company’s now $435 million of credit facilities also include a $60 million revolver.

Commitments are due at 5 p.m. ET on Dec. 10, the source added.

Credit Suisse Securities (USA) LLC, UBS Investment Bank and RBC Capital Markets are leading the deal that will be used with equity to fund the buyout of the company by Altas Partners from ONCAP. The equity amount is being increased to compensate for the canceled second-lien term loan.

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

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

Safe Fleet restructures

Safe Fleet increased the spread on its $65 million senior secured first-lien term loan (B2/B-) due Feb. 1, 2025 to Libor plus 375 bps from Libor plus 300 bps with a step-down to Libor plus 275 bps at 6.25 times net total leverage, adjusted original issue discount talk to a range of 97 to 97.5 from 98.6 and added 101 soft call protection for six months, according to a market source.

Furthermore, the loan was changed to a stand-alone term loan B-2 from a fungible add-on term loan.

The term loan still has a 1% Libor floor.

Commitments are due at noon ET on Wednesday, with allocations anticipated thereafter, the source said.

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

Safe Fleet is a Belton, Mo.-based provider of safety and productivity solutions for fleet vehicles.

Sorenson withdrawn

Sorenson pulled its $950 million five-year covenant-light first-lien term loan (B2/B) that was talked at Libor plus 600 bps with a 0% Libor floor, an original issue discount of 97 and 101 soft call protection for one year.

Credit Suisse Securities (USA) LLC was leading the deal, which would have been used to refinance existing debt.

The company said in a news release that it decided not to proceed with the transaction due to market conditions and that it intends to continue to explore opportunities to refinance its outstanding debt should market conditions improve.

Sorenson is a Salt Lake City-based provider of end-to-end communication technology services for the deaf and hard of hearing.

Plaskolite reveals talk

Also in the primary market, Plaskolite held its bank meeting on Tuesday and announced talk on its $660 million seven-year covenant-light first-lien term loan (B2) at Libor plus 400 bps to 425 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, a market source remarked.

The company’s $950 million of credit facilities also include a $100 million revolver (B2) and a $190 million privately placed covenant-light second-lien term loan.

Commitments are due on Dec. 11, the source added.

Goldman Sachs Bank USA and Morgan Stanley Senior Funding Inc. are leading the deal that will be used to help fund the buyout of the company by PPC Partners from Charlesbank Capital Partners.

Closing is expected in December.

Plaskolite is a Columbus, Ohio-based provider of transparent thermoplastic sheet products.

Knowlton launches

Knowlton Development released talk of Libor plus 375 bps to 400 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months on its $525 million seven-year first-lien term loan that launched with a morning meeting, according to a market source.

The company’s $600 million of credit facilities also include a $75 million five-year revolver.

Commitments are due at the end of the day on Dec. 11, the source said.

UBS Investment Bank, Guggenheim and Jefferies LLC are leading the deal, which will be used with equity to fund the buyout of the company by Cornell Capital.

Knowlton Development is a Quebec-based manufacturer of health and beauty-care products.

FR BR proposed terms

FR BR Holdings held its bank meeting in the afternoon, launching its $500 million five-year senior secured term loan B (B-/B-) at talk of Libor plus 575 bps to 600 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, a market source said.

Commitments are due on Dec. 11, the source added.

Goldman Sachs Bank USA, Barclays and RBC Capital Markets are leading the deal that will be used to help fund First Reserve’s acquisition of a 50% interest in Blue Racer Midstream LLC from Dominion Energy, to pay associated fees and expenses and for general corporate purposes.

Closing is expected by year-end, subject to regulatory approvals.

Blue Racer is a Dallas-based midstream company formed in November 2012 by Caiman Energy II LLC and Dominion to own, operate, develop and acquire midstream assets in the Utica and Marcellus Shales.

Elo comes to market

Elo Touch Solutions launched with an afternoon meeting its $360 million seven-year covenant-light first-lien term loan (B2/B+) at talk of Libor plus 650 bps with a 0% Libor floor, an original issue discount of 97 to 98 and 101 soft call protection for one year, according to a market source.

Commitments are due at noon ET on Dec. 7, the source said.

Goldman Sachs Bank USA, Citizens Bank and MidCap Financial are leading the deal that will be used to help fund the buyout of the company by Crestview Partners from the Gores Group.

Closing is expected this quarter, subject to customary conditions.

Elo Touch is a Milpitas, Calif.-based information and communications technology services and solutions provider.

Apollo Infrastructure guidance

Apollo Infrastructure Equity Portfolio came out with talk of Libor plus 425 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months on its $275 million seven-year term loan B that launched with a morning bank meeting, according to a market source.

The company’s $360 million of credit facilities (Ba2) also include a $35 million revolver and a $50 million letter-of-credit facility.

Commitments are due at noon ET on Dec. 11.

RBC Capital Markets, Goldman Sachs Bank USA and BMO Capital Markets are leading the deal that will be used to help fund Apollo Global Management LLC’s acquisition of an approximately $1 billion portfolio, including assumed obligations, of predominantly equity investments in energy assets from GE Capital’s Energy Financial Services unit.

Closing is expected in the fourth quarter, subject to customary conditions.

Latham joins calendar

Latham Pool Products emerged with plans to hold a bank meeting at 1:30 p.m. ET on Thursday to launch $245 million of credit facilities (B+), a market source remarked.

The facilities consist of a $30 million five-year revolver and a $215 million seven-year covenant-light term loan B, the source added.

Nomura is leading the deal that will be used to fund the buyout of the company by Pamplona and Wynnchurch, refinance existing debt and pay related fees and expenses.

Latham is a Latham, N.Y.-based designer and manufacturer of residential in-ground swimming pools and related accessories.

Priority Payment on deck

Priority Payment set a lender meeting for Thursday to launch a $130 million add-on term loan B, according to a market source.

SunTrust Robinson Humphrey Inc. is leading the deal that will be used to fund acquisitions and repay revolver borrowings.

Priority Payment is an Alpharetta, Ga.-based payment technology company.

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