Option Care, Life Time break; Ineos Quattro, Grab, Protective Industrial, Jane tweak deals

By Sara Rosenberg

New York, Jan. 19 – Option Care Health Inc. set the spread on its add-on term loan and repriced term loan at the low end of revised talk and firmed the issue price on the add-on piece at the tight side of revised guidance, and then the debt freed to trade on Tuesday, and Life Time Inc.’s term loan B made its way into the secondary market as well.

Meanwhile, in the primary market, Ineos Quattro increased the size of its first-lien term loan B, reduced pricing on the U.S. and euro tranches and updated original issue discount guidance, and Grab Holdings Inc. upsized its term loan B and trimmed the spread.

Also, Protective Industrial Products Inc. lowered the spread on its first-lien term loan and tightened the issue price, and Jane Street Group LLC cut pricing on its add-on term loan B and added a repricing of its existing term loan B to its transaction.

Additionally, ADT Inc. (Prime Security Services Borrower LLC), RV Retailer, UFC Holdings LLC, Inmarsat plc, Howden, Dun & Bradstreet Holdings Inc., Innovative XCessories & Services LLC (IXS Holding Inc.), Cambrex Corp., Focus Financial Partners Inc., Highline Aftermarket Acquisition LLC and Kestra Financial Inc. all released price talk with launch.

Furthermore, Forcepoint, AlixPartners LLP, Gannett Co. Inc., Howden Group Holdings Ltd., Resolute Investment Managers and Whole Earth Brands Inc. joined this week’s primary calendar.

Option Care updated, trades

Option Care Health finalized pricing on its $250 million add-on term loan and repricing of its existing $915.7 million term loan at Libor plus 375 basis points, the low end of the revised talk of Libor plus 375 bps to 400 bps, and firmed the original issue discount on the add-on piece at 99.75, the tight end of revised talk of 99.5 to 99.75 and tighter than initial talk of 99.5, according to a market source.

At launch, the add-on was talked at Libor plus 450 bps and a repricing of the existing term loan was not planned.

The term loan debt has a 0% Libor floor and the repricing has a par issue price.

On Tuesday, the add-on term loan and repriced term loan broke for trading, with levels quoted at par 1/8 bid, par ½ offered, the source added.

BofA Securities Inc. is leading the deal.

The add-on will be used to repay existing second-lien PIK notes and the repricing will take the existing term loan spread down from Libor plus 450 bps.

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

Life Time frees up

Life Time’s $850 million covenant-lite term loan B (B3/B-) due December 2024 began trading too, with levels quoted at 99½ bid, par offered, a market source said.

Pricing on the loan is Libor plus 475 bps with a 1% Libor floor and it was sold at an original issue discount of 99. The debt has 101 hard call protection for one year and then 101 soft call protection for six months.

During syndication, the term loan was downsized from $925 million.

Deutsche Bank Securities Inc., Goldman Sachs Bank USA, KKR Capital Markets, Jefferies LLC, BofA Securities Inc., J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc., U.S. Bank, Wells Fargo Securities LLC, Mizuho, BMO Capital Markets, RBC Capital Markets, Macquarie Capital (USA) Inc. and Nomura are leading the deal.

Proceeds will be used with $925 million of senior notes, which were recently upsized from $750 million, to amend and extend from June 2022 an existing term loan B and, as a result of the extra funds raised, to add cash to the balance sheet and repay a revolver draw.

Closing is expected on Friday.

Life Time is a Chanhassen, Minn.-based operator of athletic resorts.

Ineos Quattro reworked

Moving to the primary market, Ineos Quattro lifted its U.S. and euro five-year first-lien term loan B to €2.9 billion equivalent from €2.6 billion equivalent, with U.S. and euro tranche sizes still to be determined, cut pricing to Libor/Euribor plus 300 bps from talk in the range of Libor/Euribor plus 325 bps to 350 bps, and modified original issue discount talk to a range of 99.25 to 99.5 from a range of 99 to 99.5, according to a market source.

The U.S. tranche still has a 0.5% Libor floor, the euro piece still has a 0% floor and all off the debt still has 101 soft call protection for six months.

Commitments continue to be due at noon ET on Wednesday, the source added.

J.P. Morgan, Barclays, BNP Paribas Securities Corp., Citigroup Global Markets Inc., Goldman Sachs and HSBC are the bookrunners on the U.S. tranche, with JPMorgan the left lead. BNP, Goldman Sachs and JPMorgan are the joint physical bookrunners on the euro tranche, and Barclays, Citigroup and HSBC are bookrunners. Other joint bookrunners on the debt include BofA Securities Inc., Commerzbank, Credit Suisse, Lloyds, Mizuho, Morgan Stanley, NatWest, ABN Amro, Credit Agricole, Deutsche Bank, ING, Intesa, Santander, Fifth Third and ICBC. Mandated lead arrangers are KBC and MUFG. JPMorgan is the administrative agent.

Ineos Quattro refinancing

Proceeds from Ineos Quattro’s term loan B, €1.2 billion equivalent of senior secured notes, upsized from €1 billion equivalent, €500 million of senior unsecured notes, downsized from €1 billion, and cash on hand will be used to repay bridge loans incurred to fund the acquisition of BP’s Aromatics and Acetyls businesses, refinance the existing Inovyn term loan B, fund the full amount of deferred consideration owed to BP and pay transaction related fees and expenses.

The company is also seeking a technical amendment to its existing $202 million term loan B due January 2027 and its existing €450 million term loan B due January 2027.

BNP, Goldman Sachs and JPMorgan are the joint global coordinators on the existing term loans, and Barclays is the administrative agent.

Consents to the amendment were due at noon ET on Tuesday.

Ineos Quattro is a chemicals company that was created through the combination of two of Ineos’ existing businesses, Ineos Styrolution and Inovyn, and BP’s Aromatics and Acetyls businesses.

Grab sets changes

Grab Holdings raised its five-year term loan B to $1.75 billion from $750 million and cut pricing to Libor plus 450 bps from talk in the range of Libor plus 525 bps to 550 bps, according to a market source.

The term loan still has a 1% Libor floor, an original issue discount of 97 and call protection of non-callable for two years, then at 101 in year three, with a carve-out in year one of 103 for an initial public offering.

Allocations are expected on Wednesday, the source added.

J.P. Morgan Securities LLC, Barclays, Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., Mizuho, MUFG and Standard Chartered are leading the deal that will be used for general corporate purposes.

Grab is a Singapore-based ride hailing company and a provider of food delivery, digital payments and other financial services via a mobile app.

Protective Industrial revised

Protective Industrial Products trimmed pricing on its $435 million seven-year covenant-lite first-lien term loan B (B2/B-) to Libor plus 400 bps from Libor plus 425 bps and adjusted the original issue discount to 99.5 from 99, a market source remarked.

As before, the first-lien term loan has a 0.75% Libor floor and 101 soft call protection for six months.

Commitments were due at 5 p.m. ET on Tuesday, moved up from 5 p.m. ET on Thursday, the source added, and allocations are expected on Wednesday.

The company’s $670 million of senior secured credit facilities also includes a $75 million five-year revolver (B2/B-) and a $160 million privately placed second-lien term loan priced at Libor plus 825 bps with a 1% Libor floor. The second-lien term loan has hard call protection of 102 in year one and 101 in year two.

Antares Capital, Citizens Bank and Bank of Ireland are leading the deal that will be used to help fund the buyout of the company by Odyssey Investment Partners from Audax Private Equity.

Protective Industrial Products is a Latham, N.Y.-based provider of personal protective equipment and industrial safety products.

Jane Street modified

Jane Street Group reduced pricing on its fungible $300 million add-on term loan B (BB-) to Libor plus 275 bps from Libor plus 300, and is now seeking to reprice its existing $1.573 billion term loan B to Libor plus 275 bps from Libor plus 300 bps, a market source said.

Also, the add-on term loan and repriced term loan will have a seven-year maturity, revised from a January 2025 maturity date.

As before, the add-on term loan is talked with an original issue discount of 99.75 and the term loan debt has a 0% Libor floor.

The add-on and repriced term loan have 101 soft call protection for six months.

Lenders are being offered a 10 bps amendment fee, the source added.

Commitments are 5 p.m. ET on Wednesday.

J.P. Morgan Securities LLC is leading the deal.

The add-on will be used for general corporate purposes.

Jane Street is a New York-based quantitative trading firm with a focus on technology and collaborative problem solving.

ADT sets guidance

Also in the primary market, ADT held its lender call on Tuesday and, a few hours before the event began, talk on its $2.779 billion first-lien term loan B due Sept. 23, 2026 surfaced at Libor plus 275 bps with a 0.75% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Commitments are due at 5 p.m. ET on Thursday.

Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Mizuho and RBC Capital Markets are leading the deal that will be used to refinance/reprice an existing first-lien term loan B. Current pricing on the existing term loan is Libor plus 325 bps with a 1% Libor floor.

ADT is a Boca Raton, Fla.-based provider of monitored security and interactive home and business automation solutions.

RV Retailer talk

RV Retailer announced talk of 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 on its $420 million seven-year term loan B (B2/B+) in connection with its afternoon call, a market source remarked.

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

Goldman Sachs Bank USA is the left lead on the deal that will be used to recapitalize the company’s balance sheet and fund near-term dealership acquisitions.

RV Retailer, a Redwood Capital portfolio company, is a recreational vehicle retail company.

UFC comes to market

UFC launched in the morning a $2.453 billion first-lien term loan B due April 2026 talked at Libor plus 300 bps with a 0.75% Libor floor, a par issue price and 101 soft call protection for six months, a market source said.

Commitments are due at 10 a.m. ET on Friday, the source added.

Goldman Sachs Bank USA and KKR Capital Markets are leading the deal that will be used to merge an existing $2.304 billion term loan and an existing $150 million term loan B-2 into one tranche and reprice the debt from Libor plus 325 bps with a 1% Libor floor.

UFC is a Las Vegas-based mixed martial arts organization and pay-per-view event provider.

Inmarsat proposed terms

Inmarsat came out with talk of Libor plus 350 bps to 375 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months on its $1.737 billion first-lien term loan B due Dec. 12, 2026 that launched with a call in the afternoon, according to a market source.

Commitments are due at 5 p.m. ET on Thursday.

Barclays is the left lead on the deal that will be used to reprice an existing first-lien term loan B down from Libor plus 450 with a 1% Libor floor.

Inmarsat is a London-based satellite telecommunications company.

Howden repricing

Howden held a lender call in the morning to launch an $889 million term loan B talked at Libor plus 425 bps to 450 bps with a 0% Libor floor, an original issue discount of 99.875 to par and 101 soft call protection for six months, a market source remarked.

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

J.P. Morgan Securities LLC is leading the deal that will be used to reprice an existing term loan B down from Libor plus 525 bps with a 0% Libor floor.

Howden is a Glasgow, Scotland-based provider of mission critical air and gas handling products and services to the industrial, power, oil & gas and mining industries.

Dun & Bradstreet talk

Dun & Bradstreet launched on an afternoon call a $2.811 billion term loan B talked at Libor plus 325 bps with a 0% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

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

BofA Securities Inc. is leading the deal that will be used to reprice an existing term loan B down from Libor plus 375 bps with a 0% Libor floor.

Dun & Bradstreet is a Short Hills, N.J.-based provider of business decisioning data and analytics.

Innovative launches

Innovative XCessories & Services held call at 1:30 p.m. ET to launch a $600.1 million first-lien term loan due March 2027 talked at Libor plus 450 bps with a 0.75% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

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

UBS Investment Bank is the lead left on the deal that will be used to reprice an existing term loan down from Libor plus 500 bps with a 1% Libor floor.

Innovative XCessories is a Windsor, Ont.-based provider of coating solutions and vehicle upfit services to the automotive aftermarket and diversified industrial end markets.

Cambrex repricing

Cambrex hosted a lender call at 2 p.m. ET to launch a $928.5 million first-lien term loan talked at Libor plus 350 bps with a 0.75% Libor floor, a par issue price and 101 soft call protection for six months, a market source said.

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

RBC Capital Markets is leading the deal that will be used to reprice an existing term loan down from Libor plus 450 bps with a 1% Libor floor.

Cambrex is an East Rutherford, N.J.-based small molecule company providing drug substance, drug product and analytical services.

Focus shops add-on

Focus Financial Partners held a call at 2 p.m. ET to launch a fungible $375 million add-on first-lien term loan talked with an original issue discount of 99.75 to par, a market source remarked.

The add-on term loan is priced at Libor plus 200 bps with a 0% Libor floor and has 101 soft call protection for six months.

Commitments are due at 3 p.m. ET on Wednesday, the source added.

RBC Capital Markets and Stone Point Capital Markets are leading the deal that will be used to repay outstanding borrowings under the company’s revolver.

Closing is expected this month.

As of Dec. 31, the company had about $1.13 billion outstanding under its term loan and $380 million outstanding under its revolver.

Focus Financial is a New York-based partnership of independent, fiduciary wealth management firms.

Highline holds call

Highline Aftermarket hosted held a lender call during the session, launching a fungible $95 million add-on term loan talked with an original issue discount of 99.75 to par, according to a market source.

Like the existing term loan, the add-on term loan is priced at Libor plus 450 bps with a 0.75% Libor floor.

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

J.P. Morgan Securities LLC is leading the deal that will be used to repay revolver borrowings.

Highline is a Memphis, Tenn.-based distributor of automotive aftermarket products.

Kestra launches

Kestra Financial held a call in the afternoon, launching a fungible $50 million add-on first-lien term loan due June 2026 at original issue discount talk of 99.5 to par, a market source said.

The add-on term loan is priced at Libor plus 425 bps with a 0% Libor floor, in line with the existing first-lien term loan.

Commitments are due on Jan. 26, the source added.

UBS Investment Bank is leading the deal that will be used for general corporate purposes.

Kestra Financial, a Warburg Pincus LLC portfolio company, is an Austin, Texas-based provider of an advisor platform to financial professionals.

Forcepoint on deck

Forcepoint set a lender call for 1 p.m. ET on Wednesday to launch $600 million of credit facilities (B3), according to a market source.

The facilities consist of a $75 million revolver and a $525 million seven-year covenant-lite first-lien term loan, the source said.

Included in the term loan is 101 soft call protection for six months.

Commitments are due at 5 p.m. ET on Feb. 2, the source added.

Credit Suisse Securities (USA) LLC, UBS Investment Bank, Deutsche Bank Securities Inc. and Nomura are leading the deal that will be used to support the buyout of the company by Francisco Partners from Raytheon Technologies, which was completed earlier this month.

Forcepoint is an Austin, Texas-based provider of cybersecurity solutions.

AlixPartners readies deal

AlixPartners will hold a lender call at 10:30 a.m. ET on Wednesday to launch a $1.775 billion term loan B (B+) and a €344 million term loan B (B+), a market source remarked.

The term loans have 101 soft call protection for six months, the source added.

BofA Securities Inc. and Goldman Sachs Bank USA are leading the deal that will be used to refinance existing U.S. and euro term loans.

AlixPartners is a New York-based performance improvement, corporate turnaround and financial advisory services firm.

Gannett joins calendar

Gannett emerged with plans to hold a call at 10:30 a.m. ET on Wednesday to launch a new loan to prospective lenders, according to a market source.

Citigroup Global Markets Inc. is leading the deal.

The company mentioned in a press release on Tuesday that it is in a position to refinance its remaining term loan, following some repayments that brought the total outstanding term loan balance down to $1.045 billion.

Gannett is a McLean, Va.-based media and marketing solutions company.

Howden Group on deck

Howden Group, formerly known as Hyperion Insurance Group Ltd., set a lender call at 11 a.m. ET on Wednesday to launch a $1,265,138,359 first-lien term loan B, a market source said.

Morgan Stanley Senior Funding Inc. is the left lead on the deal that will be used to reprice and extend an existing term loan B.

Howden Group is a London-based insurance intermediary group.

Resolute coming soon

Resolute Investment Managers scheduled a lender call for 2 p.m. ET on Wednesday to launch a fungible add-on first-lien term loan, according to a market source.

RBC Capital Markets is leading the deal.

The existing first-lien term loan is sized at $306 million and priced at Libor plus 375 bps with a 1% Libor floor.

Resolute Investment, a Kelso & Co. portfolio company, is an Irving, Texas-based diversified asset management platform that partners with investment managers on both an affiliated and unaffiliated basis.

Whole Earth sets call

Whole Earth Brands will hold a lender call on Thursday to launch $450 million of credit facilities, a market source remarked.

The facilities consist of a $75 million revolver and a $375 million term loan B, the source added.

TD Securities (USA) LLC is leading the deal that will be used with cash on hand to fund the $180 million acquisition of Wholesome Sweeteners Inc. and to refinance existing bank debt.

Net debt to adjusted EBITDA is expected to be about 4.5x.

Closing is expected in the company’s first quarter 2021, subject to review under antitrust laws.

Whole Earth is a Chicago-based food company focused on premium plant-based sweeteners, flavor enhancers and other foods. Wholesome Sweeteners is an organic sweetener brand.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.