Alliance, Canada Goose free up; Southern Vet, Press Ganey, BrightSpring, Frontier tweaked

By Sara Rosenberg

New York, Oct. 1 – Alliance Laundry Systems LLC’s term loan B made its way into the secondary market on Thursday and was trading above its original issue discount, and Canada Goose Inc.’s first-lien term loan broke for trading as well.

Moving to the primary market, Southern Veterinary Partners LLC trimmed pricing on its second-lien term loan and revised the issue price, and Press Ganey (Azalea TopCo Inc.) set the spread on its incremental first-lien term loan at the low end of guidance, added a step-down and tightened the original issue discount.

Also, BrightSpring Health Services (Phoenix Guarantor Inc.) changed its term loan B to an all funded structure by removing the delayed-draw component and increased the Libor floor, and Frontier Communications Corp. reduced pricing on its DIP-to-exit term loan B and changed the issue price.

In addition, PAE Holding Corp. and Baldwin Risk Partners LLC released price talk with launch, and Quirch Foods LLC joined the near-term primary calendar.

Alliance Laundry tops OID

Alliance Laundry Systems’ $1.325 billion seven-year covenant-lite term loan B freed to trade on Thursday, with levels quoted at 99½ bid, par offered, a trader said.

Pricing on the term loan is Libor plus 350 basis points with a 0.75% Libor floor and it was sold at an original issue discount of 99.25. The loan has 101 soft call protection for six months.

During syndication, the term loan was upsized from $1.25 billion, the spread was lowered from talk in the range of Libor plus 375 bps to 400 bps and the discount was modified from 99.

UBS Investment Bank, BofA Securities Inc., BMO Capital Markets, Citigroup Global Markets Inc. and J.P. Morgan Securities LLC 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.

Canada Goose breaks

Canada Goose’s $300 million seven-year covenant-lite first-lien term loan (B2/BB) began trading too, with levels quoted at 99¼ bid, par offered, according to a market source.

Pricing on the term loan is Libor plus 425 bps with a 0.75% Libor floor and it was sold at an original issue discount of 99. The debt has 101 soft call protection for six months.

During syndication, pricing on the term loan was reduced from Libor plus 450 bps, the floor was lowered from 1% and the discount was revised from 98.

Credit Suisse Securities (USA) LLC, CIBC, BofA Securities Inc. and HSBC Securities (USA) Inc. are leading the deal that will be used to refinance existing debt and for general corporate purposes.

Canada Goose is a Toronto-based maker of performance luxury apparel.

Southern Vet updated

Switching to the primary market, Southern Veterinary Partners cut pricing on its $140 million eight-year senior secured second-lien term loan (Caa2/CCC) to Libor plus 775 bps from Libor plus 800 bps and adjusted the original issue discount to 99 from 98.5, a market source remarked.

Pricing was unchanged on the company’s $435 million seven-year senior secured first-lien term loan (B2/B-) and $60 million delayed-draw first-lien term loan (B2/B-) at Libor plus 400 bps with a 1% Libor floor and a discount of 99. The delayed-draw term loan, which is being sold as a strip with the first-lien term loan, has a ticking fee of half the margin from days 61 to 120 and the full margin thereafter, and an 18-month commitment.

As before, the first-lien term loan has 101 soft call protection for one year, and the second-lien term loan has a 1% Libor floor and hard call protection of 102 in year one and 101 in year two.

The company’s $665 million of credit facilities also include a $30 million five-year revolver (B2/B-).

Recommitments are due at 11 a.m. ET on Friday with allocations expected thereafter, the source added.

Jefferies LLC is leading the deal that will be used to refinance the company’s existing capital structure.

Southern Veterinary is a Birmingham, Ala.-based provider of general practice veterinary services.

Press Ganey revised

Press Ganey firmed pricing on its non-fungible $180 million incremental first-lien term loan (B) due July 25, 2026 at Libor plus 400 bps, the tight end of the Libor plus 400 bps to 425 bps talk, added a step-down to Libor plus 375 bps at 5.25x first-lien net leverage and changed the original issue discount to 99 from talk in the range of 98 to 98.5, a market source said.

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

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

Barclays is the left lead on the deal that will be used to fund a portion of the purchase price of two acquisitions either signed or under letters of intent.

Press Ganey is a South Bend, Ind.-based provider of patient experience measurement and performance improvement solutions to health care organizations.

BrightSpring reworked

BrightSpring Health Services revised its $550 million senior secured covenant-lite term loan B (B1/B) due March 5, 2026 to all funded from $475 million funded and $75 million delayed-draw, and changed the Libor floor to 0.5% from 0%, according to a market source.

The term loan is still talked at Libor plus 375 bps to 400 bps with an original issue discount of 99 and 101 soft call protection for six months.

The eliminated delayed-draw piece was talked with a ticking fee of half the margin from days 31 to 60 and the full margin, excluding Libor, thereafter.

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

Morgan Stanley Senior Funding Inc. and KKR Capital Markets LLC are leading the deal that will be used to finance future acquisitions, fund cash to the balance sheet for future acquisitions and pay related fees and expenses.

BrightSpring Health is a Louisville, Ky.-based health care services provider.

Frontier changes emerge

Frontier Communications lowered pricing on its $500 million seven-year DIP-to-exit term loan B (B3/B+/BB+) to Libor plus 475 bps from Libor plus 500 bps and moved the original issue discount to 98.5 from 98, according to a market source.

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

The company is also getting a $625 million exit revolving credit facility.

J.P. Morgan Securities LLC, Goldman Sachs Bank USA, Deutsche Bank Securities Inc., Barclays, Morgan Stanley Senior Funding Inc. and Credit Suisse Securities (USA) LLC are leading the deal that will be used with $1.15 billion of notes and cash on hand to fund the company’s exit from bankruptcy by paying off pre-petition first-lien notes.

Frontier Communications is a Norwalk, Conn.-based telecommunications company.

PAE proposes terms

PAE Holding held its lender call on Thursday and announced talk on its $890 million seven-year term loan B (B2/B) at Libor plus 450 bps with a 0.75% Libor floor and an original issue discount of 98.5, a market source remarked.

The term loan includes a $150 million delayed-draw tranche.

Commitments are due at noon ET on Oct. 9, the source added.

BofA Securities Inc., Citizens, Truist, Morgan Stanley Senior Funding Inc. and Stifel are leading the deal that will be used to refinance existing debt and for acquisition financing.

PAE is a Falls Church, Va.-based provider of support services for the U.S. government, its allied partners and international organizations.

Baldwin sets talk

Baldwin Risk Partners launched with an afternoon call a $400 million first-lien term loan B due 2027 that is talked at Libor plus 400 bps to 425 bps with a 0.75% Libor floor and an original issue discount of 98.5, a market source said.

The company’s $800 million of senior secured credit facilities (B2/B) also include a $400 million revolver due 2025.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance an existing revolver and for general corporate purposes, including permitted acquisitions and investments.

The company said in a news release that pricing on the new revolver is expected to range from Libor plus 200 bps to 300 bps based on total net leverage, which matches pricing on the existing revolver.

Baldwin Risk, a subsidiary of BRP Group Inc., is a Tampa, Fla.-based insurance distribution firm.

Quirch on deck

Quirch Foods set a lender call for 10 a.m. ET on Tuesday to launch a $475 million first-lien term loan B, according to a market source.

The company also plans on getting a $200 million ABL facility.

RBC Capital Markets is the left lead on the deal that will be used with equity to fund the acquisition of Colorado Boxed Beef Co. from Altamont Capital Partners.

Closing is expected this month.

Quirch Foods, a Palladium Equity Partners portfolio company, is a Coral Gables, Fla.-based specialty protein supplier to chain grocery stores. Colorado Boxed Beef is a Lakeland, Fla.-based protein supplier to chain grocery stores, foodservice distributors and other customers in large markets.

© 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.