LaserShip, Gabe’s updated; Atlantic Aviation, Filtration Group, Synaptics accelerated

By Sara Rosenberg

New York, Oct. 18 – In the primary market on Monday, LaserShip Inc. upsized its incremental first- and second-lien term loans, and tightened the issue price on the second-lien tranche, and Gabe’s (Mountaineer Merger Corp.) reduced the size of its first-lien term loan, widened the spread and original issue discount, and added a covenant.

Also, Atlantic Aviation (KKR Apple Bidco LLC), Filtration Group and Synaptics Inc. accelerated the commitment deadlines for their term loans.

Additionally, LifeScan Global Corp., Confluent Health, System1 Inc., Option Care Health Inc., Summit Behavioral Healthcare LLC, Michael Baker International, Ivanti Software Inc. and Ellucian released price talk with launch.

Furthermore, Motus, Equiniti/AST, Marlink Group, UST Holdings Ltd. and WireCo WorldGroup Inc. joined this week’s primary calendar.

LaserShip revised

LaserShip raised its fungible incremental first-lien term loan due May 7, 2028 to $700 million from $650 million, lifted its fungible incremental second-lien term loan due May 7, 2029 to $250 million from $225 million and changed the original issue discount on the second-lien loan to 99 from 98.5, a market source said.

The discount on the incremental first-lien term loan remained at 99.5.

Pricing on the incremental first-lien term loan is Libor plus 450 basis points with one leverage-based step-down and one step-down upon completion of an initial public offering, and a 0.75% Libor floor, and pricing on the incremental second-lien term loan is Libor plus 750 bps with one step-down upon an IPO and a 0.75% Libor floor.

The company is also getting a $50 million incremental revolver due May 7, 2026.

Recommitments are due at noon ET on Tuesday with allocations thereafter, the source added.

Jefferies LLC, RBC Capital Markets, Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc. and UBS Investment Bank are leading the deal that will be used to fund the acquisition of OnTrac Logistics Inc.

LaserShip is a parcel delivery provider. OnTrac is a Chandler, Ariz.-based logistics company.

Gabe’s reworked

Gabe’s scaled back its seven-year senior secured first-lien term loan to $200 million from $250 million, raised pricing to Libor plus 700 bps from Libor plus 600 bps and changed the original issue discount to 97 from 98, according to a market source.

In addition, amortization was increased to 5% per annum from 2.5% per annum, a first-lien net leverage ratio covenant was added to the previously covenant-lite term loan and some modifications were made to documentation, the source said.

The 0.75% Libor floor and hard call protection of 102 in year one and 101 in year two on the term loan were unchanged.

Commitments are due at 5 p.m. ET on Tuesday, the source added.

Jefferies LLC and Wells Fargo Securities LLC are leading the deal that will be used to refinance existing debt and pay a shareholder distribution.

Gabe’s is an off-price retailer focused on a large, underserved working-class demographic.

Atlantic moves deadline

Atlantic Aviation accelerated the commitment deadline for its fungible $330 million incremental first-lien term loan due 2028 to 5 p.m. ET on Tuesday from noon ET on Thursday, a market source remarked.

Pricing on the incremental first-lien term loan is Libor plus 300 bps with a 0.5% Libor floor, and the debt is talked with an original issue discount of 99.5 to 99.75.

Jefferies LLC and KKR Capital Markets are leading the deal that will be used to fund the acquisition of LYNX Aviation.

Atlantic Aviation is an operator of fixed base operations, providing a full suite of critical services to the private aviation sector.

Filtration accelerated

Filtration Group moved up the commitment deadline for its $600 million seven-year incremental first-lien term loan (B3/B) to 11 a.m. ET on Tuesday from Wednesday, according to a market source.

Talk on the incremental term loan is Libor plus 350 bps to 375 bps with a 0.5% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

Goldman Sachs Bank USA, JPMorgan Chase Bank and BMO Capital Markets are leading the deal that will be used with cash on hand to finance the acquisition of Columbus Industries.

Filtration Group is a provider of filtration solutions, serving a diverse portfolio of global end markets. Columbus Industries is a provider of high-end consumable air filters for critical indoor air quality applications.

Synaptics tweaks timing

Synaptics accelerated the commitment deadline for its $600 million seven-year first-lien term loan (Ba1/BB-) to 5 p.m. ET on Tuesday from noon ET on Thursday, a market source said.

Talk on the term loan is Libor plus 250 bps with a 0.5% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months.

Barclays, Wells Fargo Securities LLC, MUFG and BMO Capital Markets are leading the deal that will be used to fund the acquisition of DSP Group Inc. for $22.00 per share. Wells Fargo is the administrative agent.

Closing is expected by the end of the year, subject to DSP Group shareholder approval and customary conditions.

Synaptics is a San Jose, Calif.-based provider of high performance IoT and PC semiconductor solutions. DSP is a provider of voice and wireless chipset solutions for converged communications.

LifeScan guidance

LifeScan held its lender call on Monday morning and announced price talk on its $800 million five-year term loan B (B3/B) at Libor plus 575 bps to 600 bps with a 0.5% Libor floor and an original issue discount of 99, according to a market source.

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

Commitments are due at noon ET on Oct. 28, the source added.

BofA Securities Inc. is leading the deal that will be used to help refinance existing debt.

LifeScan is a Malvern, Pa.-based diagnostics systems manufacturer with a focus on glucose monitoring and diabetes management.

Confluent launches

Confluent Health launched on its afternoon call its $465 million seven-year covenant-lite first-lien term loan B (B3/B-) and $100 million delayed-draw covenant-lite term loan (B3/B-) at talk of Libor plus 400 bps to 425 bps with a 0.5% Libor floor and an original issue discount of 99, a market source remarked.

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

The delayed-draw term loan is available for 24 months and has ticking fees of half the margin from days 46 to 90 and the full margin thereafter, the source added.

Commitments are due at 5 p.m. ET on Oct. 27.

Deutsche Bank Securities Inc. is the left lead on the deal that will be used to refinance an existing term loan B and fund identified acquisitions.

Confluent Health is a Louisville, Ky.-based outpatient physical therapy provider.

System1 sets talk

System1 held its call in the afternoon, launching its $400 million seven-year term loan B (B) at talk of Libor plus 400 bps to 425 bps with a 0.5% Libor floor and an original issue discount of 99 to 99.5, according to a market source.

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

Commitments are due at noon ET on Oct. 29, the source added.

Based on filings with the Securities and Exchange Commission, the company is also expected to get a $50 million five-year revolver.

BofA Securities Inc. is leading the deal that is being done in connection with the acquisition of the company by Trebia Acquisition Corp., a special purpose acquisition company formed by entities affiliated with William P. Foley II and Frank Martire Jr., and combination of System1 with Protected.net, a developer of security and privacy subscription products.

The credit facilities will be used to help repay the company’s existing credit facility, fund redemptions of Trebia class A ordinary shares, provide cash for working capital and pay transaction fees.

System1 is a Venice, Calif.-based omnichannel customer acquisition marketing platform.

Option Care refinancing

Option Care Health launched on its afternoon call a $600 million term loan B talked at Libor plus 300 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, a market source said.

Commitments are due at 2 p.m. ET on Friday, the source added.

BofA Securities Inc. is leading the deal that will be used to refinance existing debt.

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

Summit proposed terms

Summit Behavioral Healthcare disclosed price talk on its $450 million seven-year first-lien term loan (B2/B-), $70 million first-lien delayed-draw term loan (B2/B-) available for 24 months, $180 million eight-year second-lien term loan (Caa2/CCC) and $25 million second-lien delayed-draw term loan (Caa2/CCC) available for 24 months in connection with its afternoon call, according to a market source.

Talk on the first-lien term loan debt is Libor plus 400 bps to 425 bps with one leverage-based step-down and one initial public offering-based step-down, a 0.75% Libor floor and an original issue discount of 99.5, and talk on the second-lien term loan debt is Libor plus 700 bps to 725 bps with a 0.75% Libor floor and a discount of 99, the source said.

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

The company’s $800 million of credit facilities also include a $75 million five-year revolver (B2/B-).

Summit lead banks

Jefferies LLC, BofA Securities Inc. and Credit Suisse Securities (USA) LLC are leading Summit Behavioral’s credit facilities.

Commitments are due at 2 p.m. ET on Oct. 28, the source added.

The credit facilities will be used to help fund the buyout of the company by Patient Square Capital from FFL Partners and Lee Equity Partners.

Summit Behavioral is a Franklin, Tenn.-based behavioral health services provider with a focus on the substance use disorder and acute psychiatric treatment end markets.

Michael Baker talk

Michael Baker came out with talk of Libor plus 500 bps with a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for six months on its $300 million seven-year first-lien term loan B (B2/B) that launched with a call in the afternoon, a market source remarked.

Commitments are due at 5 p.m. ET on Oct. 29, the source added.

The company is also getting an $80 million five-year ABL revolver.

UBS Investment Bank is the left lead on the deal, which will be used to refinance the company’s existing capital structure, including $250 million of senior notes due 2023.

Michael Baker, a portfolio company of DC Capital Partners, is a Pittsburgh-based provider of engineering and consulting services, focused on complex infrastructure challenges.

Ivanti repricing

Ivanti Software held a lender call at 11:30 a.m. ET to launch 2,471,200,000 of credit facilities, split between a $175 million revolver, a $1,751,200,000 senior secured covenant-lite first-lien term loan B due Dec. 1, 2027 and a $545 million second-lien term loan, according to market sources.

Talk on the first-lien term loan is Libor plus 400 bps to 425 bps with a 0.75% Libor floor, a par issue price and 101 soft call protection for six months, and talk on the second-lien term loan is Libor plus 700 bps to 725 bps with a 0.5% Libor floor, a discount of 99.5 to 99.75 and hard call protection of 102 in year one and 101 in year two.

Commitments are due at 5 p.m. ET on Friday for the first-lien term loan and at 5 p.m. ET on Oct. 25 for the second-lien term loan, sources added.

Morgan Stanley Senior Funding Inc. is the left lead on the revolver and first-lien term loan, and BofA Securities Inc. is the left lead on the second-lien term loan.

Proceeds will be used to reprice existing credit facilities. The existing first-lien term loan B is currently priced at Libor plus 475 bps with a 1% Libor floor and the existing second-lien term, which was privately placed but is now being broadly syndicated, is currently priced at Libor plus 850 bps with a 1% Libor floor.

Ivanti is a South Jordan, Utah-based company that automates IT and security operations.

Ellucian holds call

Ellucian held a lender call at 2:30 p.m. ET to launch a $1.588 billion first-lien term loan talked at Libor plus 350 bps with a step-down to Libor plus 325 bps at 4.5x net first-lien leverage, a 0.5% Libor floor, a par issue price and 101 soft call protection for six months, a market source said.

Commitments are due at 5 p.m. ET on Thursday, the source added.

BofA Securities Inc. is the left lead on the deal that will be used to reprice an existing term loan down from Libor plus 375 bps with a 0.75% Libor floor.

Ellucian is a Reston, Va.-based provider of higher education software and services.

Motus readies deal

Motus set a lender call for 1 p.m. ET on Wednesday to launch a $390 million first-lien term loan, according to a market source.

The company’s $575 million of credit facilities also include a $50 million revolver and a $135 million privately placed second-lien term loan, the source said.

RBC Capital Markets, Barclays, Owl Rock and Thoma Bravo Credit are leading the deal that will be used to help fund a significant strategic investment in Motus by Permira. As part of the transaction, existing investor Thoma Bravo plans to reinvest and remain a significant investor in the company.

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

Motus is a Boston-based reimbursement software platform for the anywhere workforce.

Equiniti/AST on deck

Equiniti/AST will hold a lender call at 11:45 a.m. ET on Tuesday to launch a $900 million equivalent U.S and GBP term loan B (B1), a market source remarked.

Goldman Sachs, BofA Securities Inc., Deutsche Bank Securities Inc. and Lloyds are leading the deal that will be used with $350 million of unsecured debt to support the combination of Equiniti and AST.

Siris is the sponsor.

Equiniti is a provider of mission-critical shareholder, pension, remediation and credit technology in the U.S. and U.K. AST is a provider of mission-critical shareholder technology in the U.S.

Marlink coming soon

Marlink Group scheduled a lender call for 11 a.m. ET on Tuesday to launch a $525 million first-lien term loan B and a €250 million first-lien term loan B, according to a market source.

Goldman Sachs, BNP Paribas Securities Corp., BofA Securities Inc., Barclays, KKR Capital Markets, HSBC and Banque CIC are leading the deal that will be used to help fund the buyout of the company by Providence Equity Partners from Apax Partners SAS for an enterprise value of about $1.4 billion.

Marlink is a Paris and Oslo-based provider of business-critical SatCom services.

UST joins calendar

UST Holdings set a lender call for 11 a.m. ET on Tuesday to launch a $400 million senior secured first-lien term loan, a market source said.

Citigroup Global Markets Inc. is the left lead on the deal that will be used to refinance existing debt and for general corporate purposes.

UST Holdings is an Aliso Viejo, Calif.-based provider of digital technology and transformation, information technology and services.

WireCo readies loan

WireCo emerged with plans to hold a lender call at noon ET on Tuesday to launch a $540 million seven-year first-lien term loan B (B2/B), according to a market source.

Commitments are due at 5 p.m. ET on Oct. 28, the source added.

JPMorgan Chase Bank, BofA Securities Inc. and Jefferies LLC are leading the deal that will be used to refinance first-and second-lien term loans.

WireCo is a Prairie Village, Kan.-based manufacturer and distributor of wires and synthetic ropes.

Pathway Vet allocates

In other news, Pathway Vet Alliance LLC’s fungible $300 million incremental first-lien term loan (B2/B) due March 2027 allocated during the session, a market source remarked.

Pricing on the incremental term loan is Libor plus 375 bps with a 0% Libor floor and the debt was sold at an original issue discount of 99.5.

During syndication, the incremental term loan was upsized from $250 million and the discount firmed at the tight end of the 99.25 to 99.5 talk.

Jefferies LLC is leading the deal that will be used to fund cash to the balance sheet for general corporate purposes, which may include acquisitions.

Pro forma for the transaction, the first-lien term loan totals $1.554 billion.

Pathway is an Austin, Tex.-based veterinary management group.

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