Canada Goose frees to trade; Alkermes, Bad Boy Mowers, Apollo Commercial updates surface

By Sara Rosenberg

New York, March 9 – Canada Goose Inc.’s first-lien term loan made its way into the secondary market on Tuesday, and was quoted above its issue price.

Meanwhile, in the primary market, Alkermes Inc. finalized the spread and original issue discount on its first-lien term loan B at the tight side of talk, and Bad Boy Mowers firmed pricing on its term loan B at the low end of guidance, added a pricing step-down and tightened the original issue discount.

Also, Apollo Commercial Real Estate Finance Inc. lowered the spread on its incremental term loan, and Aadvantage Loyalty IP Ltd. (American Airlines Inc.) moved up the commitment deadline for its term loan B.

Furthermore, Convergint (DG Investment Intermediate Holdings 2 Inc.), Win Waste Innovations (Granite Acquisition Inc.), MBCC Group, AdThrive (CMI Marketing Inc.), Cambium Learning Group and Veritas Technologies disclosed price talk with launch.

In addition, Trinseo SA, PODS LLC, Neenah Inc., Empire Today, Hubbard Radio LLC, Garda World Security Corp. and SiteOne Landscape Supply joined this week’s primary calendar.

Canada Goose breaks

Canada Goose’s $300 million covenant-lite first-lien term loan due October 2027 began trading on Tuesday, with levels quoted at par 1/8 bid, par ˝ offered, according to a market source.

Pricing on the term loan is Libor plus 350 basis points with a 0.75% Libor floor and it was issued at par. The debt has 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to reprice an existing term loan down from Libor plus 425 bps with a 0.75% Libor floor.

Canada Goose is a Toronto-based maker of performance luxury apparel.

Alkermes firms pricing

Switching to the primary market, Alkermes finalized the spread on its $300 million five-year covenant-lite first-lien term loan B (Ba3/BB) at Libor plus 250 bps, the low end of the Libor plus 250 bps to 275 bps talk, and set the original issue discount at 99.75, the tight end of the 99.5 to 99.75 talk, a market source said.

As before, the term loan has a 0.5% Libor floor and 101 soft call protection for six months.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to refinance an existing term loan B due March 2023.

Closing is expected over the next week.

Alkermes is a Dublin-based biopharmaceutical company.

Bad Boy revised

Bad Boy Mowers set pricing on its $250 million term loan B at Libor plus 450 bps, the low end of the Libor plus 450 bps to 475 bps talk, added a 25 bps step-down at total secured net leverage of 3.25x and changed the original issue discount to 99.75 from 99, according to a market source.

The term loan still has a 0.75% Libor floor.

The company’s $290 million of credit facilities also include a $40 million revolver.

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

BNP Paribas Securities Corp. is leading the deal that will be used to refinance an existing term loan and mezzanine debt.

Bad Boy Mowers is a manufacturer of high-performance lawn mowers.

Apollo cuts spread

Apollo Commercial Real Estate Finance trimmed pricing on its $300 million incremental term loan (Ba2/B+) to Libor plus 300 bps from talk in the range of Libor plus 350 bps to 375 bps, a market source remarked.

The term loan still has a 0.5% Libor floor and an original issue discount of 99.

JPMorgan Chase Bank is leading the deal that will be used to paydown secured financing and for general corporate purposes.

Apollo Commercial is a New York-based commercial real estate finance company.

Aadvantage tweaks timing

Aadvantage accelerated the commitment deadline for its $2.5 billion seven-year senior secured term loan (Ba2//BB) to noon ET on Wednesday from noon ET on Thursday, a market source said.

Talk on the term loan is Libor plus 500 bps to 525 bps with a 1% Libor floor, an original issue discount of 98, and call protection of non-callable for three years, then at 104 in year four and 102 in year five.

Barclays, Goldman Sachs Bank USA and Citigroup Global Markets Inc. are the lead bookrunners on the deal. Other bookrunners include BofA Securities Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., ICBC, JPMorgan Chase Bank, Morgan Stanley Senior Funding Inc., SMBC, BNP Paribas Securities Corp., Credit Agricole, HSBC Securities (USA) Inc., MUFG, Standard Chartered, US Bancorp and BOK.

Proceeds will be used with $2.5 billion of senior secured notes due 2026 and $2.5 billion of senior secured notes due 2029 to fund reserve accounts for the notes and loan and to make an intercompany loan to American Airlines, which will be used to repay a Treasury term loan and for general corporate purposes.

AAdvantage is American Airlines’ customer loyalty program. American Airlines is a Fort Worth, Tex.-based airline company.

Convergint guidance

Also in the primary market, Convergint held its call on Tuesday morning and announced price talk on its $1.11 billion seven-year covenant-lite first-lien term loan (B) and $305 million eight-year covenant-lite second-lien term loan (CCC), according to a market source.

The first-lien term loan is talked at Libor plus 375 bps with a 0.75% Libor floor and an original issue discount of 99.5, the source said. Of the total first-lien term loan amount, $180 million is delayed-draw with a ticking fee of half the margin from days 46 to 75 and the full margin thereafter.

Talk on the second-lien term loan is Libor plus 675 bps with a 0.75% Libor floor and a discount of 99.5.

Included in the first-lien term loan is 101 soft call protection for six months, and the second-lien term loan has call protection of 102 in year one and 101 in year two.

The company’s $1.565 billion of credit facilities also provide for a $150 million revolver (B).

Commitments are due at 5 p.m. ET on March 17.

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used by the Schaumberg, Ill., service-based security systems integrator to refinance existing debt and fund a distribution.

Win Waste holds call

Win Waste emerged in the morning with plans to hold a lender call at 2 p.m. ET to launch $1.4 billion of credit facilities (B1/B-), a market source remarked.

The facilities consist of a $400 million revolver, and a $1 billion seven-year covenant-lite first-lien term loan talked at Libor plus 325 bps with a 0.5% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, the source added.

Commitments are due at noon ET on March 19.

Credit Suisse Securities (USA) LLC, JPMorgan Chase Bank, Mizuho, MUFG, RBC Capital Markets, Deutsche Bank Securities Inc. and Truist are leading the deal that will be used to recapitalize the legacy Wheelabrator business, to refinance Tunnel Hill Partners debt, for general corporate purposes and to pay fees and expenses.

Win Waste is a vertically-integrated waste services provider.

MBCC proposed terms

MBCC Group came out with talk of Libor plus 375 bps to 400 bps with a 0.75% Libor floor and an original issue discount of 99 on its $570 million covenant-lite term loan B (B2/B/BB-) due September 2027 that launched with a call in the morning, according to a market source.

As reported earlier, the company is also getting a €1.1 billion covenant-lite term loan B (B2/B/BB-) due September 2027 talked at Euribor plus 350 bps to 375 bps with a 0% floor and an original issue discount of 99.75.

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

Commitments are due at noon ET on March 18.

Deutsche Bank Securities Inc. is the active bookrunner on the U.S. term loan, and Barclays and Deutsche Bank are the active bookrunners on the euro term loan. Passive bookrunners include Goldman Sachs, Intesa, JPMorgan Chase Bank, UBS Investment Bank, Unicredit and SMBC. US Bank is the administrative agent.

The debt will be used to refinance a privately placed U.S. term loan and reprice an existing euro term loan down from Euribor plus 450 bps with a 0% floor.

MBCC Group, previously known as Skyscraper, is a Mannheim, Germany-based producer of performance solutions for the construction market.

AdThrive price talk

AdThrive launched on its morning call its $385 million seven-year covenant-lite term loan B at talk of Libor plus 400 bps to 425 bps with a 0.75% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months, a market source said.

The company’s $445 million of senior secured credit facilities also include a $60 million five-year revolver.

Commitments are due at noon ET on March 19, the source added.

Morgan Stanley Senior Funding Inc., Credit Suisse Securities (USA) LLC, Societe Generale and KKR Capital Markets are leading the deal that will be used to refinance existing debt, to pay a dividend to the shareholders and to pay fees and expenses related to the financing.

AdThrive is an ad management firm.

Cambium floats OID

Cambium Learning announced original issue discount talk of 99.75 on its fungible $350 million add-on first-lien term loan that launched with an afternoon call, according to a market source.

Pricing on the add-on term loan is Libor plus 450 bps with a 0.75% Libor floor and the debt has 101 soft call protection through Sept. 21.

Commitments are due at 5 p.m. ET on March 16, the source continued.

RBC Capital Markets is leading the deal that will be used to refinance $348 million of existing second-lien term loans.

Pro forma for the transaction, the first-lien term loan will total $1.324 billion.

The company added a 0.75% Libor floor to the existing first-lien term loan as part of an amendment in December. Prior to the amendment, the floor was 0%. However, the 0.75% Libor floor doesn’t become operative until a disposition occurs, which likely will happen during the week of March 18, so all of the first-lien term loan debt will be fungible, the source added.

Cambium is a Dallas-based end-to-end provider of K-12 instructional and assessment solutions.

Veritas launches

Veritas Technologies launched a $1.322 billion term loan B due September 2025 and a €549 million term loan B due September 2025 talked at Libor/Euribor plus 500 bps with a 1% floor, an original issue discount of 99.875 and 101 soft call protection for six months, a market source remarked.

Commitments are due at noon ET on March 18, the source added.

BofA Securities Inc. is leading the deal that will be used to reprice existing U.S. and euro term loans down from Libor/Euribor plus 550 bps with a 1% floor.

Veritas is a Santa Clara, Calif.-based provider of data protection and availability.

Trinseo on deck

Trinseo scheduled a lender call for 11 a.m. ET on Wednesday to launch a $750 million seven-year covenant-lite term loan B, according to a market source.

The term loan has 101 soft call protection for six months, the source said.

Commitments are due on March 18.

Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., Barclays, BNP Paribas Securities Corp., JPMorgan Chase Bank, Mizuho, Goldman Sachs Bank USA, Truist and Fifth Third are leading the deal that will be used to help fund the €1.137 billion acquisition of Arkema SA’s polymethyl methacrylates and activated methyl methacrylates businesses.

Closing is expected in mid-2021, subject to customary conditions and regulatory approvals.

Trinseo is a Berwyn, Pa.-based materials company and manufacturer of plastics, latex binders and synthetic rubber.

PODS readies deal

PODS set a lender call for 10:30 a.m. ET on Wednesday to launch $1.265 billion of senior secured credit facilities, a market source said.

The facilities consist of a $100 million revolver and a $1.165 billion first-lien term loan B, the source added.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to refinance an existing first-lien term loan, fund a distribution to shareholders and pay related fees and expenses.

PODS is a Clearwater, Fla.-based provider of storage and moving containers.

Neenah coming soon

Neenah plans to hold a lender call at 10 a.m. ET on Wednesday to launch its previously announced $450 million term loan B (Ba2/BB-), according to a market source.

Talk on the term loan is Libor plus bps to 325 bps with a 0.5% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, the source said.

Commitments are due at 5 p.m. ET on March 18.

JPMorgan Chase Bank is leading the deal that will be used to fund the acquisition of Global Release Liners SL and reprice an existing $200 million term loan B down from Libor plus 400 bps with a 1% Libor floor.

Global Release Liners, a coater and converter of release liners used in hygiene, tapes, industrial, labels, composites and other end markets, is being bought from Magnum Capital and other minority shareholders for €205 million.

Closing is expected in early April, subject to customary conditions.

Neenah is an Alpharetta, Ga.-based manufacturer of specialty materials.

Empire joins calendar

Empire Today scheduled a lender call for 2 p.m. ET on Wednesday to launch a $410 million first-lien term loan, a market source remarked.

KKR Capital Markets is the left lead on the deal that will be used for a dividend recapitalization.

Empire Today is a provider of installed home improvements and home furnishings.

Hubbard plans call

Hubbard Radio will hold a lender call at 11 a.m. ET on Wednesday to launch an amendment of its existing $318 million term loan B, according to a market source.

Morgan Stanley Senior Funding Inc. is leading the deal.

Hubbard Radio is a St. Paul, Minn.-based broadcasting company.

Garda on deck

Garda World Security set a lender call for 10 a.m. ET on Wednesday to launch a $988 million first-lien term loan B due Oct. 30, 2026, a market source said.

The term loan is talked at Libor plus 425 bps with a 0% Libor floor, a par issue price and 101 soft call protection for six months, the source added.

Commitments are due at noon ET on Friday.

Barclays is the lead left bookrunner on the deal. JPMorgan Chase Bank is the administrative agent.

Proceeds will be used to reprice an existing first-lien term loan B down from Libor plus 475 bps with a 0% Libor floor.

Garda is a Montreal-based provider of cash logistics and security solutions.

SiteOne readies loan

SiteOne Landscape Supply scheduled a lender call for 11 a.m. ET on Wednesday to launch a $300 million seven-year first-lien term loan B (B1), according to a market source.

Commitments are due at noon ET on March 18, the source said.

JPMorgan Chase Bank is leading the deal that will be used to refinance an existing term loan due Oct. 29, 2024 priced at Libor plus 275 bps with a 1% Libor floor.

SiteOne is a Roswell, Ga.-based distributor of wholesale irrigation, landscape lighting, nursery, hardscapes, maintenance products and supplies for the green industry.

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