Sotera, Ticketek, Refresco, Cambrex, US Foods break; Telesat, Booz, Terrapure updated

By Sara Rosenberg

New York, Nov. 22 – Sotera Health Holdings LLC raised pricing on its first-lien term loan and increased the Libor floor, and cancelled plans for delayed-draw first- and second-lien loan tranches, and Ticketek modified the Libor floor on its U.S. first-lien term loan B, and then both of these deals broke for trading on Friday.

Also, Refresco set the original issue discount on its add-on term loan B at the tight end of guidance before freeing up during the session, and deals from Cambrex Corp. and US Foods Inc. surfaced in the secondary market as well.

In more happenings, Telesat Canada increased the size of its term loan B and adjusted the issue price, and Booz Allen Hamilton Inc. firmed the original issue discount on its term loan B at the tight end of talk.

Furthermore, Terrapure Environmental (Terra Bidco B.C. Ltd.) upsized its first-lien term loan and downsized its privately placed second-lien term loan, and Element Solutions Inc. lifted the spread on its term loan B and set the issue price at the tight side of guidance.

Sotera reworked

Sotera Health lifted pricing on its $2.12 billion seven-year first-lien term loan to Libor plus 450 basis points from talk in the range of Libor plus 400 bps to 425 bps, increased the Libor floor to 1% from 0%, decreased the incremental free and clear and made a number of other changes to documentation, according to a market source.

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

The company also terminated plans for a $150 million delayed-draw first-lien term loan with a six-month commitment period and a ticking fee of half the margin from days 61 to 120 and the full margin onwards, and a $50 million privately placed delayed-draw second-lien term loan, the source said.

The now $3,062,500,000 of credit facilities still include a $172.5 million five-year revolver and a $770 million privately placed eight-year second-lien term loan.

Recommitments were due at 1 p.m. ET on Friday, the source continued.

Sotera frees to trade

In the afternoon, Sotera’s first-lien term loan made its way into the secondary market and levels were seen at 99½ bid, par offered, another source added.

Jefferies LLC, J.P. Morgan Securities LLC, Barclays, RBC Capital Markets and ING are leading the deal that will be used to refinance the company’s existing capital structure and fund a distribution to shareholders.

Sotera is a Broadview Heights, Ohio-based provider of mission-critical health sciences, lab services and sterilization solutions for the health care industry.

Ticketek tweaked

Ticketek changed the Libor floor on its $205 million seven-year senior secured first-lien term loan B (B2/B) to 0.75% from 0%, a market source remarked.

Pricing on the U.S. term loan remained at Libor plus 425 bps. The loan has a 25 bps step-down at first-lien gross leverage of 3.4x and 101 soft call protection for six months, and was sold at an original issue discount of 99.

The company is also getting an $80 million equivalent Australian dollar seven-year senior secured first-lien term loan B (B2/B) priced at BBSY plus 475 bps, and a $100 million U.S. dollar equivalent privately placed second-lien term loan (B3/CCC+).

Previously in syndication, the breakdown of U.S. and Australian first-lien term loan sizes firmed up and the MFN was revised to 50 bps for 24 months from 75 bps for six months.

Ticketek hits secondary

In the morning, Ticketek’s U.S. first-lien term loan B began trading, and levels were quoted at 99¼ bid, par ¼ offered, a trader added.

Goldman Sachs Bank USA, Barclays, Credit Suisse Securities (USA) LLC, Jefferies LLC, KKR Capital Markets, Macquarie Capital (USA) Inc., UBS Investment Bank and Societe Generale are leading the deal that will be used to help fund the buyout of the company by Silver Lake Partners from Affinity Equity Partners.

Closing is expected on Monday.

Ticketek is a Sydney, Australia-based provider of ticketing, promotions, venue operations and data analytics marketing solutions to the live entertainment industry in Australia and New Zealand.

Refresco finalized, breaks

Refresco firmed the original issue discount on its fungible $150 million add-on covenant-lite term loan B due 2025 at 99.75, the tight end of the 99.5 to 99.75 talk, according to a market source.

The add-on term loan is priced at Libor plus 325 bps with a 0% Libor floor.

During market hours, the add-on term loan freed up, with levels quoted at par bid, par ½ offered, the source said.

J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC and BNP Paribas Securities Corp. are leading the deal that will be used for acquisition financing.

The add-on will increase the dollar term loan to $770 million from $620 million and total outstanding term loans to €2,291,000,000.

Refresco is a Rotterdam, the Netherlands-based bottler of beverages.

Cambrex frees up

Cambrex’s credit facilities broke for trading, with the $710 million seven-year covenant-lite first-lien term loan (B2/B) quoted at 98¼ bid, 99¼ offered and the $175 million eight-year covenant-lite second-lien term loan (Caa2/B-) quoted at 98½ bid, par offered, a trader remarked.

Pricing on the U.S. first-lien term loan is Libor plus 500 bps with a 1% Libor floor and it was sold at an original issue discount of 98. The debt has 101 soft call protection for one year.

The second-lien term loan is priced at Libor plus 900 bps with a 1% Libor floor and was issued at a discount of 98. This tranche has call protection of 102 in year one and 101 in year two.

The company is also getting a $75 million equivalent euro eight-year second-lien term loan priced at Euribor plus 900 bps with a 0% floor and issued at a discount of 98. The debt has call protection of 102 in year one and 101 in year two.

The company’s $1.26 billion of senior secured credit facilities also include a $135 million revolver (B2/B), and a $165 million euro equivalent seven-year covenant-lite first-lien term loan (B2/B) priced at Euribor plus 525 bps with a 0% floor and issued at a discount of 98. The euro term loan has 101 soft call protection.

RBC Capital Markets, Barclays, Societe Generale, UBS Investment Bank and Mizuho are leading the deal.

Cambrex being acquired

Proceeds from Cambrex’s credit facilities will be used with $1,382,000,000 equivalent of equity to fund the buyout of the company by Permira for $60.00 per share in cash. The transaction is valued at about $2.4 billion.

During syndication, the euro term loan was carved out of the first-lien tranche due to reverse inquiry and business needs, pricing on the U.S. first-lien term loan was increased from talk in the range of Libor plus 450 bps to 475 bps and the floor was revised from 0%, pricing on the euro first-lien term loan was lifted from talk in the range of Euribor plus 450 bps to 475 bps, and the discount on both tranches widened from 99. Also, pricing on the second-lien term loan was raised from talk in the range of Libor plus 850 bps to 875 bps, the Libor floor was modified from 0% and the discount was changed from 98.5.

Closing is expected in the fourth quarter, subject to customary conditions, including receipt of approval by Cambrex’s shareholders and regulatory approvals.

Cambrex is an East Rutherford, N.J.-based small molecule company providing drug substance, drug product and analytical services.

US Foods starts trading

US Foods’ $2.134 billion senior secured covenant-lite term loan B (Ba3/BB+) due June 27, 2023 freed to trade as well, with levels seen at par bid, par ¼ offered, a market source said.

Pricing on the term loan is Libor plus 175 bps with a 0% Libor floor and it was issued at par. The debt has 101 soft call protection for six months.

Citigroup Global Markets Inc. is leading the deal that will be used to reprice an existing term loan down from Libor plus 200 bps.

Closing is expected on Tuesday.

US Foods is a Rosemont, Ill.-based food company and foodservice distributor.

Telesat modifies loan

Back in the primary market, Telesat Canada upsized its seven-year term loan B to $1.908 billion from $1.808 billion and changed the original issue discount to 99.75 from 99.5, while keeping pricing at Libor plus 275 bps with a 0% Libor floor, according to a market source.

J.P. Morgan Securities LLC is leading the deal that will be used with $400 million of senior secured notes, which were scaled back from $500 million, to refinance an existing term loan B.

The company is also amending its $200 million revolver to extend the maturity.

Telesat is an Ottawa-based fixed satellite services operator.

Booz Allen updated

Booz Allen Hamilton finalized the original issue discount on its $389 million seven-year term loan B (Ba1) at 99.75, the tight end of the 99.5 to 99.75 guidance, a market source said.

As before, the term loan is priced at Libor plus 175 bps with a 0% Libor floor and has 101 soft call protection for six months.

BofA Securities, Inc. is leading the deal that will be used to refinance an existing term loan B.

Booz Allen Hamilton is a McLean, Va.-based provider of management and technology consulting services, and engineering services to governments, corporations and not-for-profit organizations.

Terrapure shifts funds

Terrapure Environmental raised its seven-year first-lien term loan to $465 million from $440 million and scaled back its privately placed eight-year senior secured second-lien term loan to $44.5 million from C$75 million U.S. dollar equivalent, according to a market source.

The first-lien term loan is still priced at Libor plus 500 bps with a 0% Libor floor and an original issue discount of 99, and has 101 soft call protection for six months.

Recommitments were due at 2 p.m. ET on Friday, the source said. Allocations are targeted for Monday.

The company’s $554.5 million of senior secured credit facilities also include a $45 million five-year revolver.

Jefferies LLC, Deutsche Bank Securities Inc., Barclays and Credit Suisse Securities (USA) LLC are leading the deal that will be used to help fund the buyout of the company by Pamplona Capital Management and, as a result of the first-lien term loan upsizing, to finance an acquisition.

Terrapure is a Burlington, Ont.-based provider of environmental and industrial waste management services in Canada.

Element Solutions revised

Element Solutions widened pricing on its $744.4 million first-lien term loan B (Ba2/BB) due Jan. 31, 2026 to Libor plus 200 bps from Libor plus 175 bps and firmed the issue price at par, the tight end of the 99.75 to par talk, while leaving the 0% Libor floor and 101 soft call protection for six months unchanged, a market source remarked.

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

Barclays and Credit Suisse Securities (USA) LLC are leading the deal that will be used to refinance/reprice an existing term loan B that is priced at Libor plus 225 bps.

Net senior secured leverage is 1.3x, and net total leverage is 3.3x.

Element Solutions is a Fort Lauderdale, Fla.-based provider of specialty chemical solutions.

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