Inspire, Mirion, First Brands, Arterra, Potters free to trade; American Bath changes emerge

By Sara Rosenberg

New York, Nov. 19 – Inspire Brands Inc. (IRB Holding Corp.) reduced the spread on its first-lien term loan B, and Mirion Technologies Inc. increased the size of its add-on first-lien term loan B and tightened the original issue discount, and then both of these deals broke for trading on Thursday.

Also, First Brands Group LLC firmed the original issue discount on its incremental first-lien term loan at the tight end of talk before hitting the secondary market, and deals from Arterra Wines Canada Inc. and Potters Industries LLC freed up as well.

In more happenings, American Bath Group LLC (CP Atlas Buyer Inc.) went back to its original funded and delayed-draw structure, firmed pricing at the low end of guidance, added a step-down and adjusted the issue price, and Duff & Phelps accelerated the commitment deadline for its incremental first-lien term loan B.

Inspire revised, breaks

Inspire Brands trimmed pricing on its $2.575 billion seven-year senior secured first-lien term loan B (B2/B) to Libor plus 325 basis points from talk in the range of Libor plus 350 bps to 375 bps, according to a market source.

As before, the term loan has a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

Recommitments were due at 11 a.m. ET on Thursday and the term loan B freed up for trading in the afternoon, with levels quoted at 99¼ bid, 99¾ offered, another source added.

Barclays, Capital One, Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Golub, KeyBanc Capital Markets, Rabobank, Truist and Wells Fargo Securities LLC are leading the deal that will be used with cash on hand and equity from Inspire Brands’ sponsor, Roark Capital Management LLC, to fund the acquisition of Dunkin’ Brands Group Inc. for $106.50 per share in cash in a transaction valued at about $11.3 billion, including the assumption of Dunkin’ Brands’ debt.

Closing is expected in December.

Inspire Brands is an Atlanta-based multi-brand restaurant company. Dunkin’ Brands is a Canton, Mass.-based franchisor of quick service restaurants.

Mirion tweaked, frees up

Mirion Technologies lifted its fungible add-on covenant-lite first-lien term loan B (B2/B) due March 6, 2026 to $225 million from $210 million and changed the original issue discount to 99.25 from 98.8, a market source remarked.

The add-on term loan is priced at Libor plus 400 bps with a 0% Libor floor.

Commitments were due at noon ET on Thursday and the add-on term loan freed to trade in the afternoon, with levels quoted at 99½ bid, par offered, a trader added.

Morgan Stanley Senior Funding Inc., Goldman Sachs Bank USA and HSBC Securities (USA) Inc. are leading the deal that will be used to finance the acquisition of Sun Nuclear and pay related fees and expenses, and the funds from the upsizing will be used for general corporate purposes.

Closing is expected in mid-December.

Mirion Technologies is a San Ramon, Calif.-based provider of radiation detection, measurement, analysis and monitoring solutions to the nuclear power, defense, medical and research end markets.

First Brands updated, trades

First Brands finalized the original issue discount on its fungible $220 million incremental first-lien term loan (B3/B) due Feb. 2, 2024 at 99, the tight end of the 98.5 to 99 talk, according to a market source.

The incremental term loan is priced at Libor plus 750 bps with a 1% Libor floor, in line with the existing term loan, and has the same 102, 101 hard call protection as the existing term loan.

On Thursday, the incremental term loan made its way into the secondary market and levels were quoted at 99½ bid, par offered, another source added.

Jefferies LLC is leading the deal that will be used to fund an acquisition.

Pro forma for the transaction, the first-lien term loan size will total $1.798 billion.

First Brands, formerly known as Trico Group, is an automotive aftermarket platform offering a comprehensive solution for consumable maintenance and mission-critical repair parts.

Arterra hits secondary

Arterra Wines Canada’s term debt began trading too, with its $455 million (C$596 million equivalent) seven-year covenant-lite first-lien term loan quoted at 99½ bid, par offered and its C$118 million seven-year covenant-lite first-lien term loan quoted at 99¼ bid, par ¼ offered, a market source remarked.

Pricing on the U.S. term loan is Libor plus 350 bps with a 0.75% Libor floor and it was sold at an original issue discount of 99.25, and pricing on the Canadian term loan is BA plus 375 bps with a 0.75% floor and it was issued at a discount of 99. Both loans have 101 soft call protection for six months

During syndication, the U.S. term loan was downsized from C$660 million, the spread was cut from Libor plus 400 bps and the discount was tightened from 99. Additionally, the Canadian term loan was upsized from C$50 million and pricing was lowered from BA plus 425 bps.

Credit Suisse Securities (USA) LLC, BMO Capital Markets, RBC Capital Markets and Antares Capital are leading the term loans (B1/B) that will be used to refinance existing debt and fund a shareholder distribution.

Arterra Wines is a Mississauga, Ont.-based owner and distributor of wine.

Potters starts trading

Potters Industries’ bank debt broke for trading as well, with the $390 million seven-year covenant-lite first-lien term loan quoted at 99¼ bid, par offered, a market source said.

Pricing on the term loan is Libor plus 400 bps with a 0.75% Libor floor and it was sold at an original issue discount of 99. The loan has 101 soft call protection for six months.

During syndication, the spread on the term loan was trimmed from talk in the range of Libor plus 450 bps to 475 bps.

The company’s $465 million of credit facilities (B2/B) also include a $75 million revolver.

Credit Suisse Securities (USA) LLC, Barclays, Antares Capital, KeyBanc Capital Markets and MUFG are leading the deal that will be used with equity to fund the buyout of the company by The Jordan Co. LP from PQ Group Holdings Inc. for $650 million.

Closing is expected by year-end, subject to customary conditions and regulatory approvals.

Potters is a glass microsphere supplier.

American Bath reworked

Switching back to the primary market, American Bath returned its $1.2 billion seven-year first-lien term loan (B2/B) to its original structure of $900 million funded and $300 million delayed-draw after changing it early this week to an all funded tranche, set pricing 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 0.5x inside closing leverage, and revised the original issue discount to 99 from 98, according to a market source.

The term loan still has a 0.75% Libor floor and 101 soft call protection for six months.

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

Credit Suisse Securities (USA) LLC, RBC Capital Markets, BofA Securities Inc., BMO Capital Markets Corp., Truist Securities Inc., Barclays and UBS Investment Bank are leading the loan that will be used with $335 million of notes to help fund the buyout of the company by Centerbridge Partners LP from Lone Star Funds.

Closing is expected in the fourth quarter, subject to customary conditions and approvals.

American Bath is an Arlington, Tex.-based manufacturer of showers, bathtubs and related accessories.

Duff & Phelps accelerated

Duff & Phelps moved up the commitment deadline for its fungible $250 million incremental first-lien term loan B (B2/B-) due April 2027 to noon ET on Friday from 5 p.m. ET on Monday, a market source remarked.

Pricing on the incremental term loan is Libor plus 375 bps with a 1% Libor floor, in line with existing term loan pricing. Original issue discount talk on the new debt is in the range of 99 to 99.5.

Goldman Sachs Bank USA, Stone Point Capital Markets, UBS Investment Bank, BofA Securities, Inc., Morgan Stanley Senior Funding Inc., KKR Capital Markets, Credit Suisse Securities (USA) LLC, Capital One and Barclays are leading the deal that will be used for tuck-in acquisition financing.

Duff & Phelps is a New York-based independent adviser with expertise in the areas of valuation, corporate finance, disputes and investigations, compliance and regulatory matters and other governance-related issues.

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