GEMS, West Deptford, Wawona, PLZ, ArisGlobal, Knowlton free up; Advisor Group sets changes

By Sara Rosenberg

New York, July 30 – GEMS Education reduced the size of its first-lien term loan B and finalized the spread at the high end of talk, and West Deptford Energy Holdings LLC added a pricing step-down to its first-lien term loan B, and then both of these deals started trading on Tuesday.

Also, Wawona Packing Co./Gerawan Farming (MVK Intermediate Holdings LLC) set the spread on its first-lien term loan at the low side of guidance before breaking for trading, and deals from PLZ Aeroscience Corp., ArisGlobal (Athos Merger Sub LLC) and Knowlton Development Corp. hit the secondary market as well.

In more happenings, Advisor Group Inc. downsized its term loan B while increasing pricing and added a term loan A to its capital structure.

Furthermore, DigiCert Inc., Sedgwick Claims Management Services Inc., Calpine Corp. and Savage Enterprises LLC disclosed price talk with launch, and Life Time Inc. and Park Place Technologies emerged with new deal plans.

GEMS revised, breaks

GEMS Education cut its seven-year first-lien term loan B (B2/B/B+) to $750 million from $850 million and firmed pricing at Libor plus 500 basis points, the wide end of the Libor plus 475 bps to 500 bps talk, according to a market source.

The term loan still has a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

Recommitments were due at 9:30 a.m. ET on Tuesday and the term loan B began trading later in the day at 99¾ bid, par ¾ offered, another source added.

Goldman Sachs and Credit Suisse are the global coordinators on the deal, and Citigroup and HSBC are joint bookrunners.

The new term loan will be used to help refinance existing debt following the acquisition of a roughly 30% stake in the company by a CVC Capital Partners-led consortium, which is expected by the end of July.

The company is also getting $900 million of senior secured notes, upsized from $500 million. A proposed offering of $300 million equivalent of euro senior secured notes was cancelled.

GEMS Education is a Dubai-based provider of private K-12 education.

West Deptford tweaked, trades

West Deptford Energy added a 25 bps pricing step-down at 5x net leverage to its $445 million seven-year first-lien term loan B, a market source said.

Initial pricing on the term loan B remained at Libor plus 375 basis points with a 0% Libor floor.

As before, the term loan B has an original issue discount of 99.5 and 101 soft call protection for six months.

The company’s $500 million of credit facilities (Ba3/BB-) also include a $55 million revolver.

Recommitments were due at noon ET on Tuesday and the term loan B broke for trading in the afternoon, with levels quoted at 99¾ bid, par ¼ offered, another source added.

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

West Deptford is a 744 MW gas-fired combined-cycle power generation facility.

Wawona updated, frees up

Wawona Packing/Gerawan Farming firmed pricing on its $335 million seven-year first-lien term loan at Libor plus 475 bps, the tight end of the Libor plus 475 bps to 500 bps talk, and left the 0% Libor floor, original issue discount of 99 and 101 soft call protection for six months unchanged, according to a market source.

The company’s $395 million of OpCo credit facilities (B2/B+) also include a $60 million revolver.

In the afternoon, the term loan surfaced in the secondary market and levels were quoted at 99½ bid, par ½ offered, a trader added.

RBC Capital Markets Corp., Rabobank and Jefferies LLC are leading the deal that will be used to help fund the merger of Wawona Packing, an existing Paine Schwartz Partners portfolio company, and Gerawan Farming.

Closing is expected on Thursday.

Cutler, Calif.-based Wawona Packing and Fresno, Calif.-based Gerawan Farming are fresh fruit companies.

PLZ hits secondary

PLZ Aeroscience’s credit facilities also began trading during the session, with the $644 million seven-year covenant-lite term loan quoted at 99¾ bid, par ¼ offered, a market source remarked.

Pricing on the term loan is Libor plus 350 bps with a step-down to Libor plus 325 bps at less than 3.75x total net leverage and a 0% Libor floor. The debt was sold at an original issue discount of 99.5 and has 101 soft call protection for six months.

The company’s $719 million of credit facilities (B2/B) also include a $75 million five-year revolver.

Antares Capital and BMO Capital Markets are leading the deal that will be used to refinance existing debt, including an existing $30 million revolver.

Closing is expected on Thursday.

PLZ, a portfolio company of Pritzker Private Capital, is a Downers Grove, Ill.-based producer of specialty aerosol products.

ArisGlobal breaks

ArisGlobal’s credit facilities freed to trade as well, with the $240 million seven-year covenant-lite first-lien term loan seen at 99½ bid, par offered, according to a market source.

The term loan is priced at Libor plus 500 bps with a 0% Libor floor and was sold at an original issue discount of 99. The debt has 101 soft call protection for one year.

During syndication, pricing on the term loan was lifted from talk in the range of Libor plus 450 bps to 475 bps and the call protection was extended from six months.

The company’s $270 million of credit facilities (B2/B-) also include a $30 million revolver.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to help fund the buyout of the company by Nordic Capital.

ArisGlobal is a Coral Gables, Fla.-based developer of cloud-based software for pharmaceutical and R&D companies.

Knowlton tops OID

Knowlton Development’s fungible $105 million incremental first-lien term loan (B2/B) due Dec. 21, 2025 broke too, with levels seen by one trader at par ½ bid, par 7/8 offered.

Pricing on the incremental term loan is Libor plus 425 bps with a 0% Libor floor and it was sold at an original issue discount of 99.75.

During syndication, the incremental term loan was upsized from $85 million and the discount was changed from 99.5.

Jefferies LLC, Guggenheim and UBS Investments Bank are leading the deal. UBS is the administrative agent.

Proceeds will be used to fund an acquisition and, due to the recent upsizing, for general corporate purposes.

Knowlton Development is a Quebec-based custom formulator and solution services partner to beauty, personal care and home/industrial care companies.

Advisor Group reworked

Back in the primary market, Advisor Group scaled back its seven-year term loan B to $1,025,000,000 from a size at launch of $1.2 billion and raised pricing to Libor plus 500 bps from talk in the range of Libor plus 425 bps to 450 bps, according to a market source.

The term loan B still has a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

Furthermore, the company added a $200 million 5.5-year term loan A to its capital structure that is priced at Libor plus 400 bps with a 0% Libor floor and a discount of 99, the source said.

The company’s $1.45 billion of credit facilities also includes a $225 million revolver, under which $25 million will be drawn.

Recommitments are due at noon ET on Wednesday, the source added.

Advisor Group leads

UBS Investment Bank, Goldman Sachs Bank USA, Barclays, BofA Securities Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., RBC Capital Markets Corp. and SunTrust Robinson Humphrey Inc. are leading Advisor Group’s credit facilities.

The new bank debt will be used with $350 million of senior notes, downsized from $400 million, to help fund the buyout of 75% of the company by Reverence Capital Partners. Lightyear Capital and PSP Investments are expected to maintain up to a 25% stake in the company.

Closing is expected in the third quarter, subject to regulatory and other customary approvals.

Advisor Group is a Phoenix-based wealth management platform, which supports over 7,000 financial advisers with $268 billion of client assets.

DigiCert reveals talk

DigiCert held its bank meeting on Tuesday and announced talk on its $1.55 billion seven-year covenant-lite first-lien term loan (B2/B-) at Libor plus 425 bps with a 0% Libor floor and an original issue discount of 99.5, according to a market source.

The first-lien term loan has 101 soft call protection for six months.

Commitments are due at 5 p.m. ET on Aug. 13.

The company’s $2,225,000,000 of credit facilities also include a $125 million revolver (B2/B-) and a $550 million privately placed second-lien term loan.

Credit Suisse Securities (USA) LLC, Jefferies LLC, Macquarie Capital (USA) Inc., UBS Investment Bank, Barclays, Deutsche Bank Securities Inc., Golub and Antares Capital are leading the deal that will be used to help fund the buyout of the company by Clearlake Capital Group LP and TA Associates, an existing investor. Clearlake and TA will be equal partners in the company.

Closing is expected in the second half of this year, subject to customary regulatory approvals and conditions.

DigiCert is a Lehi, Utah-based provider of digital certificates, certificate management solutions and public-key infrastructure solutions.

Sedgwick sets guidance

Sedgwick Claims Management Services launched on its morning call its $1.1 billion seven-year covenant-lite incremental term loan B (B2/B) at talk of Libor plus 375 bps with a 0% Libor floor and an original issue discount of 99 to 99.5, a market source said.

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

Commitments are due at 5 p.m. ET on Aug. 7, the source added.

BofA Securities Inc., Morgan Stanley Senior Funding Inc., SunTrust Robinson Humphrey Inc., Barclays, Goldman Sachs Bank USA, Wells Fargo Securities LLC, BNP Paribas Securities Corp., TCG, Citizens Bank, Credit Agricole, Fifth Third Bank, ING, KKR Capital Markets and MUFG are leading the deal that will be used to fund the acquisition of York Risk Services Group.

Closing is subject to customary conditions and regulatory approvals.

Sedgwick is a Memphis, Tenn.-based provider of technology-enabled risk, benefits and integrated business solutions. York is a Jersey City, N.J.-based provider of claims administration, managed care, specialized loss adjusting, pool administration and loss control solutions.

Calpine holds call

Calpine emerged in the morning with plans to hold a lender call at 11:30 a.m. ET to launch a $550 million seven-year covenant-lite first-lien term loan B-10 (Ba2/BB) talked at Libor plus 250 bps with a 0% 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 Thursday, the source said.

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to refinance an existing term loan B-7.

Calpine is a Houston-based generator of electricity from natural gas and geothermal resources.

Savage proposed terms

Savage Enterprises came out with talk of Libor plus 400 bps with a 0% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months on its $960.25 million first-lien term loan B due Aug. 1, 2025 that launched with a morning lender call, a market source remarked.

Commitments are due at 5 p.m. ET on Aug. 6, the source added.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to reprice an existing term loan B down from Libor plus 450 bps with a 0% Libor floor.

Savage is a Salt Lake City-based supply chain provider.

Life Time joins calendar

Life Time scheduled a lender call for 2 p.m. ET on Wednesday to launch a $500 million seven-year covenant-lite term loan B talked with 101 soft call protection for six months, according to a market source.

Commitments are due at 1 p.m. ET on Aug. 9, the source said.

Wells Fargo Securities LLC is the left lead on the deal that will be used to repay 8.5% senior notes due June 15, 2023 and to pay transaction related fees and expenses.

Leonard Green & Partners and TPG Capital are the sponsors.

Life Time is a Chanhassen, Minn.-based operator of sports, professional fitness, family recreation and spa destinations.

Park Place on deck

Park Place Technologies set a lender call for 2 p.m. ET on Wednesday to launch $61.1 million of add-on term loans, a market source said.

The debt consists of a fungible $30.6 million add-on first-lien term loan and a fungible $30.5 million add-on second-lien term loan, the source added.

The add-on and existing first-lien term loan will get 101 soft call protection for six months.

Golub Capital is leading the deal.

Park Place Technologies is a Cleveland-based provider of post-warranty maintenance for storage, server and networking hardware.

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