Pathway Vet frees to trade; Blucora tweaks pricing; thyssenkrupp, United, Cox set talk

By Sara Rosenberg

New York, June 23 – Pathway Vet Alliance LLC’s strip of funded and delayed-draw first-lien term loan debt made its way into the secondary market during Tuesday’s session and was seen trading above its original issue discount.

Over in the primary market, Blucora Inc. finalized the spread on its add-on term loan at the low end of guidance and tightened the original issue discount.

Also, thyssenkrupp Elevator, United Mileage Plus and Cox Media Group announced price talk on their loan transactions with launch.

Pathway hits secondary

Pathway Vet Alliance’s bank debt freed up for trading on Tuesday, with the strip of $943,333,000 funded and $76,667,000 million delayed-draw first-lien term loan debt (B2/B) due March 2027 quoted at 98 bid, 99 offered, a market source remarked.

Pricing on the first-lien term loan debt is Libor plus 400 basis points with a 0% Libor floor and it was sold at an original issue discount of 97.5. The first-lien term loan debt has a 101 soft call protection for six months. The delayed-draw piece will be undrawn at close and the commitment terminates in March 2022. There is a ticking fee of half the drawn spread until June 30 and the full spread thereafter on the delayed-draw loan.

During syndication, the funded first-lien term loan was upsized from $868 million, pricing firmed at the low end of the Libor plus 400 bps to 425 bps talk, the discount was revised from 97 and there was some overall lender-friendly tightening of the document.

Pathway revolver, second-lien

Along with the first-lien term loan debt, Pathway Vet’s $1.355 billion of credit facilities include an $80 million revolver due March 2025 and a $255 million privately placed senior secured second-lien term loan due March 2028.

Jefferies LLC, BofA Securities, Inc., Ares, Golub and Nomura are leading the deal.

Proceeds will be used to fund the recently completed acquisition of the company by TSG Consumer Partners from investment funds managed by Morgan Stanley Capital Partners.

Pathway is an Austin, Tex.-based veterinary management group that operates a synergistic and integrated service model serving the needs of pet families and veterinarians.

Blucora updated

Moving to the primary market, Blucora set pricing on its $175 million add-on senior secured term loan (BB) due 2024 at Libor plus 400 bps, the low end of the Libor plus 400 bps to 425 bps talk, and modified the original issue discount to 98 from 97, according to a market source.

As before, the term loan has a 1% Libor floor and 101 soft call protection for six months.

Recommitments were due at 3 p.m. ET on Tuesday, the source added.

J.P. Morgan Securities LLC is leading the deal that will be used to fund the $100 million acquisition of HK Financial Services, a financial planning firm, and for additional working capital.

In connection with this transaction, pricing on the company’s existing term loan will be increased from Libor plus 300 bps to match the add-on term loan pricing.

Blucora is an Irving, Tex.-based provider of tax-smart financial solutions.

thyssenkrupp guidance

thyssenkrupp Elevator held its lender call on Tuesday morning and announced talk on its €3.05 billion equivalent U.S. and euro seven-year first-lien term loan B (B1) at Libor/Euribor plus 425 bps with a 0% floor, an original issue discount of 96 to 97 and 101 soft call protection for one year, a market source remarked.

The term loan will be split between a roughly €2.05 billion equivalent U.S. dollar tranche and a roughly €1 billion euro tranche, the source continued.

Commitments are due at 10 a.m. ET on July 1.

Goldman Sachs Bank USA, UBS Investment Bank, Barclays, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and RBC Capital Markets are leading the deal, with Goldman the left lead on the U.S. loan and UBS the left lead on the euro loan.

The debt will be used to help fund the buyout of the Germany-based provider of elevator technology by Advent International, Cinven and RAG-Stiftung.

Closing is expected by the end of the third quarter, subject to customary closing conditions and regulatory approvals.

United Mileage talk

United Mileage Plus came out with talk of Libor plus 525 bps to 550 bps with a 1% Libor floor, an original issue discount of 97 and call protection of non-callable for three years, then at 104 in year four and 102 in year five on its $2 billion seven-year first-lien term loan B (//BBB-) that launched with a morning a call, a market source said.

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

Goldman Sachs Bank USA, Barclays and Morgan Stanley Senior Funding Inc. are leading the deal that will be used with $3 billion of senior secured notes to refinance a bridge facility, to fund the notes reserve account and the reserve account for the term loan, and to make an intercompany loan to United Airlines Inc. that will be used for general corporate purposes.

Mileage Plus is the loyalty program of United Airlines, a Chicago-based airline company.

Cox seeks add-on

Cox Media launched a $150 million add-on term loan (B1/B+) with original issue discount talk of 97.5 and 101 soft call protection for six months, according to a market source.

Like the existing loan, the add-on term loan is priced at Libor plus 425 bps with a 0% Libor floor.

Commitments are due at 1 p.m. ET on Wednesday, the source added.

RBC Capital Markets is the left lead on the deal that will be used for general corporate purposes.

Cox Media is an Atlanta-based broadcasting, publishing, direct marketing and digital media company.

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