Floor & Decor, NielsenIQ, Dentalcorp, Kindred break; Ascend, Resideo, Qlik update deals

By Sara Rosenberg

New York, Feb. 5 – Floor & Decor Holdings Inc. firmed the original issue discount on its incremental first-lien term loan at the tight end of guidance before freeing up for trading on Friday, and deals from NielsenIQ, Dentalcorp Health Services ULC and Kindred Healthcare LLC broke as well.

In other news, Ascend Performance Materials lowered the spread on its term loan, Resideo Technologies Inc. increased the size of its term loan B and accelerated the commitment deadline, and Qlik Technologies Inc. (Project Alpha Intermediate Holding Inc.) finalized pricing on its term loan B at the high end of talk.

Also, Tosca Services LLC and Compassus LLC announced price talk with launch, and American Trailer Works joined the near-term primary calendar.

Floor & Decor firms, trades

Floor & Decor set the original issue discount on its fungible $65 million incremental first-lien term loan (Ba2/BB) at 99.75, the tight end of the 99.5 to 99.75 talk, a market source remarked.

Like the existing $143.2 million term loan, the incremental term loan is priced at Libor plus 200 basis points with a 0% Libor floor.

The incremental and existing term loan are getting 101 soft call protection for six months.

On Friday morning, the incremental term loan began trading, with levels quoted at 99¾ bid, par ¼ offered, the source added.

Golub Capital is leading the deal that will be used with cash from the balance sheet to refinance the company’s existing non-fungible $74.6 million first-lien term loan priced at Libor plus 400 bps with a 1% Libor floor.

Floor & Decor is an Atlanta-based specialty retailer in the hard surface flooring market.

NielsenIQ frees up

NielsenIQ’s $950 million term loan made its way into the secondary market, with levels quoted at par 1/8 bid, par ½ offered, according to a market source.

Pricing on the U.S. term loan, as well as on a $650 million equivalent euro term loan, is Libor/Euribor plus 400 bps with a 0% floor and they were sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months.

During syndication, pricing on the term loans was lowered from talk in the range of Libor/Euribor plus 450 bps to 475 bps and the discount was tightened from 99, and the Libor floor on the U.S. term loan was cut from 0.5%.

The company’s secured credit facilities (B1/B/BB) also include a $350 million revolver and a privately placed Canadian dollar first-lien term loan, which was recently added to reduce the equity component of the transaction.

NielsenIQ lead banks

BofA Securities Inc., UBS Investment Bank, Barclays, Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., RBC Capital Markets, MUFG, Wells Fargo Securities LLC, Fifth Third, BMO Capital Markets, BNP Paribas Securities Corp., Capital One, Mizuho, SMBC and TD Securities are leading NielsenIQ’s credit facilities, with BofA the left lead on the U.S. loan and UBS the left lead on the euro loan.

Proceeds from the debt and equity will be used to fund the buyout of the company by Advent International and James Peck, former chief executive officer of TransUnion, from Nielsen Holdings plc for $2.7 billion, and Nielsen will also receive warrants in the new company exercisable in certain circumstances.

Closing is expected in the second quarter, subject to approval by Nielsen shareholders, regulatory approvals, consultation with the works council and other customary conditions.

NielsenIQ is a Chicago-based provider of actionable information to consumer packaged goods manufacturers and retailers.

Dentalcorp hits secondary

Dentalcorp’s bank debt also freed to trade, with the fungible $100 million incremental first-lien term loan (B2/B-) due June 2025 quoted at 99¼ bid, 99¾ offered and the fungible $50 million incremental second-lien term loan (Caa2/CCC) due June 2026 quoted at par bid, a market source said.

Pricing on the incremental first-lien term loan is Libor plus 375 bps with a 1% Libor floor, in line with the exiting first-lien term loan, and the new debt was sold at an original issue discount of 99.03.

The incremental second-lien term loan is priced at Libor plus 750 bps with a 1% Libor floor, in line with the existing second-lien term loan, and was issued at a discount of 99.5.

During syndication, the incremental first-lien term loan was upsized from $75 million and the incremental second-lien term loan was upsized from $25 million.

Jefferies LLC, TD Securities (USA) LLC and CIBC are leading the deal that will be used to fund cash to the balance sheet for acquisitions.

Existing lenders were offered a 10 bps consent fee for a one-time waiver of debt incurrence tests to allow for the incremental term loans.

Dentalcorp is a dental support organization in Canada providing a full spectrum of dental services.

Kindred Health tops par

Kindred Healthcare’s $599 million term loan started trading too, with levels quoted at par ½ bid, 101¼ offered, a market source remarked.

Pricing on the term loan is Libor plus 450 bps with a 0% Libor floor and it was issued at par. The debt has 101 soft call protection for six months.

J.P. Morgan Securities LLC is leading the deal that will be used to reprice an existing term loan down from Libor plus 500 bps with a 0% Libor floor.

Kindred Healthcare is a Louisville, Ky.-based health care services company.

Ascend cuts pricing

Back in the primary market, Ascend Performance Materials trimmed pricing on its $1.086 billion term loan to Libor plus 475 bps from Libor plus 500 bps, according to a market source.

The term loan still has a 0.75% Libor floor and a par issue price. Its 101 soft call protection was extended to one year from six months.

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

BofA Securities Inc. is leading the deal that will be used to reprice an existing term loan down from Libor plus 525 bps with a 1% Libor floor.

Ascend Performance Materials is a Houston-based provider of chemicals, fibers and plastics.

Resideo upsizes

Resideo Technologies raised its seven-year term loan B to $950 million from $800 million, a market source said.

As before, the term loan is talked at Libor plus 250 bps to 275 bps with a 0.5% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

Commitments are due at noon ET on Monday, accelerated from noon ET on Tuesday, the source added.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance an existing senior secured term loan A and term loan B, to redeem $140 million of outstanding senior notes, to fund future acquisitions and for general corporate purposes.

The company also plans on getting a new $500 million five-year revolver.

Resideo is an Austin, Tex.-based provider of home comfort and security solutions.

Qlik sets spread

Qlik Technologies finalized pricing on its $1,418,200,000 covenant-lite term loan B due April 26, 2024 at Libor plus 400 basis points, the wide end of the Libor plus 375 bps to 400 bps talk, according to a market source.

As before, the term loan has a 0% Libor floor, a par issue price and 101 soft call protection for six months.

Allocations went out on Friday.

Morgan Stanley Senior Funding Inc. and Goldman Sachs Bank USA are leading the deal that will be used to reprice and combine an existing $960,175,000 term loan B-1 and an existing $458,025,000 term loan B-2.

Closing is expected during the week of Feb. 8.

Qlik is a King of Prussia, Pa.-based data analytics company.

Tosca guidance

Tosca Services held its lender call at 10 a.m. ET on Friday and, shortly before the call began, talk on its $526.5 million first-lien term loan (B2/B) due August 2027 was announced at Libor plus 350 bps to 375 bps with a 0.75% Libor floor and a par issue price, according to a market source.

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

Commitments are due at noon ET on Thursday.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., UBS Investment Bank, Goldman Sachs Bank USA, Rabobank, KKR Capital Markets and Mizuho are leading the deal that will be used to reprice an existing term loan, which priced last year at Libor plus 425 bps with a 25 bps step-down and a 1% Libor floor.

Tosca is an Atlanta-based provider of reusable packaging supply chain solutions.

Compassus talk

Compassus came out with original issue discount talk of 99.5 on its $150 million incremental term loan (B2) that launched with a call in the morning, a market source remarked.

Pricing on the incremental term loan is Libor plus 500 bps with a 1% Libor floor, in line with existing term loan pricing.

Commitments are due at noon ET on Feb. 12, the source added.

BofA Securities Inc. is leading the deal, which will be used to refinance existing notes due 2028, to fund a dividend and/or acquisitions and to pay related fees and expenses.

Compassus is a Nashville-based post-acute care company.

American Trailer on deck

American Trailer Works will hold a lender call at 11 a.m. ET on Monday to launch a $750 million first-lien term loan, according to a market source.

Goldman Sachs Bank USA, Barclays and Truist are leading the deal that will be used to refinance existing senior secured notes, add cash to the balance sheet and pay related fees and expenses.

Bain Capital is the sponsor.

American Trailer Works is Richardson, Tex.-based manufacturer and distributor of professional grade trailers, consumer grade trailers, truck equipment and retail parts.

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