Fortress Investment, Clarivate changes surface; Allegro, Ellucian tighten deadlines

By Sara Rosenberg

New York, Sept. 21 – In the primary market on Monday, Fortress Investment Group FinCo I LLC firmed the spread on its term loan B at the low end of guidance and tightened the original issue discount.

Additionally, Clarivate plc moved price talk on its incremental term loan B to the low end of earlier guidance and modified the issue price, and Allegro Microsystems Inc. and Ellucian moved up the commitment deadlines for their first-lien term loans.

Also, Alliance Laundry Systems released price talk on its term loan B with its lender call, and Revint Solutions joined this week’s primary calendar.

Fortress tweaked

Fortress Investment Group set pricing on its $950 million covenant-lite term loan B (Baa3) due June 27, 2025 at Libor plus 250 basis points, the tight end of the Libor plus 250 bps to 275 bps talk, and changed the original issue discount to 99.75 from 99.5, according to a market source.

As before, the term loan has a 0% Libor floor and 101 soft call protection for six months.

Recommitments were due at noon ET on Monday, the source added.

Allocations are expected on Tuesday.

Deutsche Bank Securities Inc. and Mizuho are leading the deal that will be used to amend and extend from December 2022 an existing term loan B.

In connection with this transaction, roughly $100 million of the existing $1.046 billion term loan B will be paid down.

Fortress Investment is an alternative investment management firm.

Clarivate revised

Clarivate is now talking its $1.6 billion incremental senior secured covenant-lite term loan B (B2/B) due Oct. 31, 2026 at Libor plus 300 bps, which is the low end of earlier talk in the range of Libor plus 300 bps to 325 bps, and the original issue discount was adjusted to 99.5 from 99, a market source said.

The term loan still has a 1% Libor floor and 101 soft call protection for six months.

Commitments are due at noon ET on Tuesday, moved up from 5 p.m. ET on Tuesday, the source added.

Citigroup Global Markets Inc., BofA Securities Inc., RBC Capital Markets, Barclays, HSBC Securities (USA) Inc. and J.P. Morgan Securities LLC are leading the deal. BofA is the administrative agent.

The term loan is being done in connection with the company’s combination with CPA Global under which CPA shareholders will receive about 218 million Clarivate ordinary shares, and will be used with cash on hand to refinance about $2 billion of CPA’s debt.

Closing is expected in early October.

Net leverage will be around 4.2x.

Clarivate is a Philadelphia-based provider of intellectual property and scientific information, decision support tools and services. CPA is a provider of intellectual property software and tech-enabled services.

Allegro changes timing

Allegro Microsystems accelerated the commitment deadline for its $325 million seven-year covenant-lite first-lien term loan (B1/B+) to noon ET on Wednesday from 5 p.m. ET on Thursday, a market source remarked.

Talk on the term loan is Libor plus 450 bps to 475 bps with a 0.5% Libor floor, an original issue discount of 98.5 and 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC, Barclays, Mizuho and SMBC are leading the deal that will be used to refinance a revolver draw and to fund a shareholder distribution.

Allegro is a Manchester, N.H.-based provider of magnetic sensor and power integrated circuits.

Ellucian accelerated

Ellucian moved up the commitment deadline for its $1.6 billion seven-year first-lien term loan (B) to Tuesday from noon ET on Thursday, according to a market source.

The term loan is talked at Libor plus 400 bps with a 0.75% Libor floor and an original issue discount of 99.

The company is also getting a $150 million five-year revolver (B) and a $540 million privately placed eight-year second-lien term loan.

BofA Securities, Inc., J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc., Goldman Sachs Bank USA, UBS Investment Bank, BMO Capital Markets, Barclays, Deutsche Bank Securities Inc. and TPG are leading the deal that will be used to refinance existing debt and fund a dividend.

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

Alliance Laundry guidance

Alliance Laundry Systems held its lender call on Monday and announced talk on its $1.25 billion seven-year covenant-lite term loan B at Libor plus 375 bps to 400 bps with a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, a market source said.

Commitments are due at 5 p.m. ET on Sept. 30, the source added.

UBS Investment Bank, BofA Securities Inc., BMO Capital Markets and Citigroup Global Markets Inc. are leading the deal that will be used to refinance existing debt.

Alliance Laundry is a Ripon, Wis.-based designer, manufacturer and marketer of commercial laundry equipment.

Revint readies deal

Revint Solutions set a lender call for 10 a.m. ET on Tuesday to launch $705 million of credit facilities, according to a market source.

The facilities consist of a $75 million revolver and a $630 million term loan B, the source said.

Goldman Sachs Bank USA, Deutsche Bank Securities Inc., Jefferies LLC, Barclays and KeyBanc Capital Markets are leading the deal that will be used to fund the acquisition of and merger with Triage Consulting Group, a healthcare revenue integrity company, and to refinance existing Revint debt.

The merger is being facilitated by New Mountain Capital LLC.

Closing is expected this year, subject to customary conditions and approvals.

Revint Solutions is a Plano, Texas-based provider of revenue integrity and recovery services to hospitals and health systems.

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