Utz, Warner Music break; ICP, Iridium, CityMD revise deals; nThrive TSG tweaks deadline

By Sara Rosenberg

New York, Jan. 13 – Utz Brands Inc. finalized the original issue discount on its term loan B at the tight end of revised talk before freeing up for trading on Wednesday, and Warner Music Group’s (WMG Acquisition Corp.) first-lien term loan made its way into the secondary market as well.

In other news, ICP Group lowered pricing and adjusted original issue discounts on its first- and second-lien term loans, and Iridium Satellite LLC set the spread on its term loan B at the low end of guidance and modified the issue price.

Also, CityMD (WP CityMD Bidco LLC) reduced pricing on its first-lien term loan, and nThrive TSG (MedAssets Software Intermediate Holdings Inc.) accelerated the commitment deadline for its first-lien term loan B.

Furthermore, Careismatic Brands and System One Holdings LLC announced price talk with launch, and Murphy USA Inc., Vestcom Parent Holdings Inc., First Advantage and Option Care Health Inc. joined this week’s primary calendar.

Utz updated, trades

Utz Brands firmed the original issue discount on its $720 million seven-year term loan B (B1/B) at 99.75, the tight end of revised talk of 99.5 to 99.75 and tighter than initial talk in the range of 99.25 to 99.5, a market source remarked.

The term loan is priced at Libor plus 300 basis points with a 0% Libor floor and has 101 soft call protection for six months.

Previously in syndication, pricing on the term loan was cut from Libor plus 350 bps.

On Wednesday, the term loan broke for trading and levels were quoted at par 3/8 bid, par 7/8 offered, another source added.

BofA Securities Inc., Goldman Sachs Bank USA and Credit Suisse Securities (USA) LLC are leading the deal that will be used to help refinance an existing term loan B and a $490 million senior secured bridge loan that funded the company’s $480 million purchase of Truco Enterprises, a Dallas-based seller of tortilla chips, salsa and queso, from Insignia Capital Group.

Utz is a Hanover, Pa.-based manufacturer of branded salty snacks.

Warner Music breaks

Warner Music’s $820 million seven-year covenant-lite first-lien term loan (Ba3/BB) freed to trade too, with levels quoted at par bid, par ˝ offered, according to a market source.

Pricing on the term loan is Libor plus 212.5 bps with a 0% Libor floor and it was sold at an original issue discount of 99.875. The debt has 101 soft call protection for six months.

During syndication, pricing on the term loan was lowered from talk in the range of Libor plus 225 bps to 237.5 bps and the discount was revised from talk in the range of 99.625 to 99.75.

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to refinance an existing term loan.

Warner Music is a New York-based music entertainment company.

ICP changes emerge

Back in the primary market, ICP Group cut pricing on its $825 million seven-year first-lien term loan (B3/B) to Libor plus 375 bps from Libor plus 400 bps and moved the original issue discount to 99.5 from 99, a market source said.

In addition, pricing on the $225 million eight-year second-lien term loan (Caa2/CCC) was reduced to Libor plus 775 bps from Libor plus 800 bps, and the discount was tightened to 98.5 from 98, the source continued.

The first-lien term loan still has a 25 bps step-down at 4.35x net first-lien leverage, a 25 bps step-down upon an initial public offering, a 0.75% Libor floor and 101 soft call protection for six months, and the second-lien term loan still has a 0.75% Libor floor and hard call protection of 102 in year one and 101 in year two.

Commitments were due at 5 p.m. ET on Wednesday, accelerated from 5 p.m. ET on Thursday.

ICP lead banks

J.P. Morgan Securities LLC, BMO Capital Markets, Antares Capital and Goldman Sachs Bank USA are leading ICP Group’s $1.05 billion of term loans.

The new loans will be used to fund the acquisition of Gardner-Gibson and Sun Coatings, a Tampa, Fla.-based manufacturer of liquid-applied roof coatings, roofing products, driveway sealers and specialty paints and to refinance existing debt.

ICP, an Audax Private Equity portfolio company, is an Andover, Mass.-based manufacturer of specialty coatings, adhesives and sealants.

Iridium tweaks deal

Iridium Satellite firmed pricing on its $1.638 billion covenant-lite term loan B due November 2026 at Libor plus 275 bps, the low end of the Libor plus 275 bps to 300 bps talk, and changed the issue price to par from 99.75, according to a market source.

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

Commitments remain due at 3 p.m. ET on Thursday, the source added.

Deutsche Bank Securities Inc., Barclays, Credit Suisse Securities (USA) LLC and Wells Fargo Securities LLC are leading the deal that will be used to reprice an existing term loan B down from Libor plus 375 bps with a 1% Libor floor.

Iridium is a McLean, Va.-based provider of mobile voice and data communications services through satellite to businesses, the U.S and foreign governments, non-governmental organizations and consumers.

CityMD flexes

CityMD trimmed pricing on its $891 million covenant-lite first-lien term loan (B-) due August 2026 to Libor plus 375 bps from Libor plus 400 bps, a market source remarked.

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

Commitments continued to be due at 5 p.m. ET on Wednesday, the source added.

Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, ING, Mizuho, Jefferies LLC, KeyBanc Capital Markets and Truist are leading the deal that will be used to reprice an existing term loan down from Libor plus 450 bps with a 1% Libor floor.

CityMD is an outpatient-focused physician group.

nThrive TSG accelerated

nThrive TSG moved up the commitment deadline for its $440 million seven-year covenant-lite first-lien term loan B (B2/B-/BB) to 3 p.m. ET on Thursday from 5 p.m. ET on Tuesday, a market source said.

Talk on the first-lien term loan is Libor plus 425 bps to 450 bps with a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

The company is also getting a $160 million second-lien term loan that is being privately placed.

Deutsche Bank Securities Inc., UBS Investment Bank, BMO Capital Markets, Jefferies LLC, Antares Capital, BNP Paribas Securities Corp. and Golub Capital are leading the deal that will be used to help fund the buyout of the company by Clearlake Capital Group LP from nThrive Holdings LP.

nThrive TSG is a provider of health care revenue cycle management software-as-a-service solutions.

Careismatic guidance

Also in the primary market, Careismatic Brands held its call on Wednesday afternoon and announced price talk on its $575 million seven-year covenant-lite first-lien term loan (B1/B) and $140 million eight-year covenant-lite second-lien term loan (Caa1/CCC+), according to a market source.

Talk on the first-lien term loan is Libor plus 375 bps to 400 bps with a 0.75% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, and talk on the second-lien term loan is Libor plus 750 bps to 775 bps with a 0.75% Libor floor, a discount of 98.5 and call protection of 102 in year one and 101 in year two, the source said.

The company’s $815 million of credit facilities also include a $100 million five-year revolver (B1/B).

Commitments are due on Jan. 22, the source added.

Careismatic being acquired

Careismatic will use its new credit facilities to help fund its buyout by Partners Group from New Mountain Capital.

UBS Investment Bank, Credit Suisse Securities (USA) LLC, Barclays, RBC Capital Markets, Macquarie Capital (USA) Inc. and BMO Capital Markets are leading the debt.

Careismatic is a Chatsworth, Calif.-based designer, marketer and distributor of medical apparel, corporate identity apparel, school uniforms and adaptive clothing.

System One proposed terms

System One launched on its afternoon call its $280 million seven-year covenant-lite term loan B at talk of Libor plus 475 bps with a 0.75% Libor floor, an original issue discount of 98.5 and 101 soft call protection for six months, a market source remarked.

The company’s $325 million of credit facilities (B2) also include a $45 million revolver.

Commitments are due on Jan. 28, the source added.

Truist Securities is the left lead on the deal that will be used to help fund the buyout of the company by Oaktree Capital Management LP.

Closing is expected this quarter, subject to regulatory approvals and other customary conditions.

System One is a Pittsburgh-based provider of specialized workforce solutions and integrated services.

Murphy USA on deck

Murphy USA scheduled a lender call for 10 a.m. ET on Friday to launch $750 million of credit facilities, according to a market source.

The facilities consist of a $350 million five-year revolver, which is expected to be undrawn at close, and a $400 million seven-year term loan B, the source said.

RBC Capital Markets is leading the deal that will be used with cash on hand to fund the $645 million acquisition of QuickChek Corp.

Closing is expected this quarter, subject to customary conditions and regulatory approval.

Murphy USA is an El Dorado, Ark.-based retailer of gasoline and convenience merchandise. QuickChek is a Whitehouse Station, N.J. operator of convenience market stores.

Vestcom joins calendar

Vestcom set a lender call for Thursday to launch a fungible $100 million incremental term loan, a market source said.

Antares Capital is leading the deal that will be used to fund a distribution to shareholders.

The company currently has a $419 million term loan.

Vestcom, a Charlesbank Capital Partners portfolio company, is a Little Rock, Ark.-based provider of outsourced technology and services that support price communication, merchandising and promotion execution at the shelf edge.

First Advantage sets call

First Advantage surfaced with plans to hold a lender call at 1 p.m. ET on Thursday to launch a fungible $100 million add-on term loan, according to a market source.

BofA Securities Inc. is leading the deal that will be used to repay a privately placed second-lien term loan.

The company’s existing term loan is priced at Libor plus 350 bps with a 0% Libor floor.

First Advantage is an Atlanta-based provider of comprehensive background screening, identity and information solutions.

Option Care readies deal

Option Care set a lender call for noon ET on Thursday to launch a fungible $250 million add-on term loan, a market source remarked.

BofA Securities Inc. is leading the deal that will be used to repay existing second-lien PIK notes.

The company’s existing term loan is priced at Libor plus 450 bps with a 0% Libor floor.

Option Care is a Bannockburn, Ill.-based provider of home and alternate treatment site infusion therapy services.

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