United Pacific, WorldStrides, Clarivate free up; Cole-Parmer, Innovacare changes emerge

By Sara Rosenberg

New York, Oct. 28 – United Pacific firmed pricing on its term loan B at the low end of guidance, increased the Libor floor and adjusted the ticking fee on the delayed-draw portion of the loan before breaking for trading on Monday.

Also, WorldStrides finalized the spread on its add-on term loan B at the wide side of talk and then made its way into the secondary market, and Clarivate Analytics’ credit facilities freed to trade as well.

In other news, Cole-Parmer Instrument Co. (Curie Merger Sub LLC) set pricing on its first-lien term loan at the high side of talk and tightened the issue price, and Innovacare (MMM Holdings LLC) widened the spread, Libor floor and original issue discount on its term loan, and extended the call protection.

Additionally, HelpSystems, 84 Lumber Co., Grifols and FleetCor Technologies Inc. surfaced with plans to launch new loan transactions this week.

United revised, trades

United Pacific set pricing on its $450 million seven-year first-lien term loan B (B2/B) at Libor plus 400 basis points, the low end of the Libor plus 400 bps to 425 bps talk, changed the Libor floor to 1% from 0% and made some modifications to documentation, a market source remarked.

Of the total term loan B amount, $100 million is delayed-draw, and the ticking fee on that piece was revised to half the margin from days 31 to 60 and the full margin onwards, from half the margin from days 61 to 120 and the full margin onwards, the source continued.

As before, the term loan has an original issue discount of 99 and 101 soft call protection for six months.

Recommitments were due at noon ET on Monday and the term loan freed to trade in the afternoon, with levels quoted at 99½ bid, par ½ offered, another source added.

Goldman Sachs Bank USA is leading the deal that will be used to refinance existing debt, fund a dividend and finance acquisitions.

United Pacific is a Long Beach, Calif.-based operator of 415 gas stations and convenience stores throughout Southern and Northern California, Washington, Oregon, Colorado and Nevada.

WorldStrides finalized, breaks

WorldStrides firmed pricing on its fungible $50 million add-on senior secured term loan B (B1/B-) due December 2024 at Libor plus 425 bps, the high end of the Libor plus 400 bps to 425 bps talk, and left the 1% Libor floor, original issue discount of 99 and 101 soft call protection for six months unchanged, according to a market source.

Later in the day, the term loan broke for trading, with levels seen at 99 bid, 99¾ offered, a trader added.

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

In connection with this transaction, pricing on the existing term loan B will be increased from Libor plus 375 bps to match the add-on term loan pricing. The 1% Libor floor on the existing loan will be unchanged.

WorldStrides is a Charlottesville, Va.-based provider of educational student travel.

Clarivate hits secondary

Clarivate Analytics’ credit facilities began trading too, with the $900 million seven-year term loan B quoted by one trader at 99 7/8 bid, par 3/8 offered. Later in the day, another trader was quoting the loan at par 1/8 bid, par ½ offered.

Pricing on the term loan is Libor plus 325 bps with a 25 bps step-down at 4.5x total net leverage and a 0% Libor floor. The debt was sold at an original issue discount of 99.75 and has 101 soft call protection for six months.

During syndication, the term loan was downsized from $1.1 billion as the company’s senior secured notes offering was upsized to $700 million from $500 million, and the discount was tightened to 99.75 from 99.

The company’s $1.15 billion of credit facilities (B2/B) also include a $250 million revolver.

BofA Securities, Inc., Citigroup Global Markets Inc., RBC Capital Markets, Barclays, Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA and J.P. Morgan Securities LLC are leading the deal that will be used with the bonds to refinance existing credit facilities, redeem 7 7/8% senior notes due 2024 and fund termination payment obligations under a tax receivable agreement.

Clarivate is a Philadelphia-based provider of comprehensive intellectual property and scientific information, decision support tools and services.

Cole-Parmer updated

Back in the primary market, Cole-Parmer Instrument firmed the spread on its $770 million seven-year first-lien term loan (B2/B) at Libor plus 425 bps, the high end of the Libor plus 400 bps to 425 bps talk, and adjusted the original issue discount to 99.5 from 99, according to a market source.

Additionally, the MFN was revised to 50 bps for life with no carve-outs and applies to all pari ratio debt in the form of U.S. dollar term loans, from 75 bps with a six-month sunset with carve-outs for loans maturing two years outside initial loans, incurred in connection with acquisitions, non-syndicated or non-dollar-denominated.

And, asset sales were modified to remove the step-downs and set reinvestment rights at 12+6 months instead of 18+6 months, the source said.

The first-lien term loan still has a 25 bps step-down upon a first-lien leverage ratio of 0.5x inside of closing date leverage, a 0% Libor floor and 101 soft call protection for six months.

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

Cole-Parmer buyout

Cole-Parmer will use its $1.09 billion equivalent of credit facilities, which also include a $75 million revolver (B2/B) and a $245 million equivalent privately placed eight-year second-lien term loan, to help fund its acquisition by GTCR.

Upon closing, Golden Gate Capital and management will retain a significant minority stake in the company.

Jefferies LLC is the left lead on the bank debt.

Closing is expected in the fourth quarter.

Cole-Parmer is a Vernon Hills, Ill.-based provider of fluid handling, test & measurement, environmental and biosciences instrumentation and associated consumables.

Innovacare reworked

Innovacare lifted pricing on its $550 million seven-year covenant-lite first-lien term loan to Libor plus 575 bps from talk in the range of Libor plus 525 bps to 550 bps, revised the Libor floor to 1% from 0%, changed the original issue discount to 96 from 99 and extended the 101 soft call protection to one year from six months, a market source said.

The company’s $630 million of credit facilities (B1/B+) also include an $80 million revolver.

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

Credit Suisse Securities (USA) LLC and Goldman Sachs Bank USA are leading the deal that will be used to help fund the buyout of the company by Summit Partners.

Innovacare is a Fort Lee, N.J.-based health care delivery system.

HelpSystems readies deal

HelpSystems scheduled a bank meeting for 10:30 a.m. ET on Wednesday to launch $835 million of first-lien credit facilities consisting of a $60 million five-year revolver, a $725 million seven-year first-lien term loan and a $50 million seven-year delayed-draw first-lien term loan, a market source remarked.

The company is also getting a $230 million privately placed eight-year second-lien term loan, the source added.

Jefferies LLC, Golub Capital and Ares are leading the deal that will be used to help fund a majority investment in HelpSystems by TA Associates and Charlesbank Capital Partners, and to pay related fees and expenses. HGGC, management and employees will remain investors in the company.

Closing is expected in November, subject to regulatory approvals and customary conditions.

HelpSystems is an Eden Prairie, Minn.-based provider of IT operations management and monitoring, cybersecurity, and business intelligence software.

84 Lumber on deck

84 Lumber set a lender call for noon ET on Tuesday to launch a $310 million seven-year covenant-lite term loan B (B3/B+) that is talked with 101 soft call protection for six months, according to a market source.

Commitments are due at 5 p.m. ET on Nov. 7, the source said.

Wells Fargo Securities LLC and PNC Capital Markets are leading the deal, which will be used to refinance the company’s existing ABL revolver and term loan B due 2023, and to pay related transaction fees and expenses.

84 Lumber is an Eighty Four, Pa.-based supplier of building materials, manufactured components and services for single and multi-family residences and commercial buildings.

Grifols coming soon

Grifols will hold on Wednesday a bank meeting in London and a lender call to launch $4.6 billion equivalent of term loans, a market source said.

The debt consists of a $3 billion eight-year covenant-lite term loan B and a $1.6 billion equivalent euro eight-year covenant-lite term loan B, the source added.

The term loans have 101 soft call protection for six months.

Commitments for the U.S. loan are due at 5 p.m. ET on Nov. 7 and commitments for the euro loan are due on Nov. 8.

BofA Securities, Inc., BNP Paribas, HSBC, J.P. Morgan and BBVA are leading the deal that will be used to help refinance existing senior secured debt.

The company also plans on getting a new revolver and issuing senior secured bonds for the refinancing.

Grifols is a Sant Cugat del Valles, Barcelona-based health care company.

FleetCor plans call

FleetCor Technologies set a lender call for 11 a.m. ET on Tuesday to launch a loan transaction, according to a market source.

BofA Securities, Inc. is leading the deal.

FleetCor is a Peachtree Corners, Ga.-based provider of specialized payment products and services, including fleet cards, food cards and corporate lodging discount cards for businesses.

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