BrightSpring Health Services, Red Ventures, Southern Veterinary free to trade

By Sara Rosenberg

New York, Oct. 2 – BrightSpring Health Services (Phoenix Guarantor Inc.) finalized the spread on its term loan B at the narrow end of guidance and then the debt surfaced in the secondary market on Friday.

Also, Red Ventures LLC reduced the size of its incremental senior secured first-lien term loan, increased pricing and firmed the Libor floor at the high end of talk before breaking for trading.

Another deal to begin trading during the session was Southern Veterinary Partners LLC, with both its first-and second-lien term loans quoted above their original issue discounts.

In other news, Maravai LifeSciences announced plans to launch new credit facilities on Tuesday.

BrightSpring updated

BrightSpring Health Services firmed pricing on its $550 million senior secured covenant-lite term loan B (B1/B) due March 5, 2026 at Libor plus 375 basis points, the low end of the Libor plus 375 bps to 400 bps talk, according to a market source.

As before, the term loan has a 0.5% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

Previously in syndication, the term loan was shifted to an all-funded tranche from $475 million funded and $75 million delayed-draw, and the Libor floor was lifted from 0%. 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.

BrightSpring breaks

On Friday, BrightSpring Health’s term loan B freed to trade, with levels quoted at 99 1/8 bid, 99 5/8 offered, a trader added.

Morgan Stanley Senior Funding Inc., KKR Capital Markets LLC, BMO Capital Markets, Deutsche Bank Securities Inc., BofA Securities Inc., HSBC Securities (USA) Inc., Credit Suisse Securities (USA) LLC, Jefferies LLC and Credit Agricole 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.

Closing is expected during the week of Oct. 5.

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

Red Ventures revised, trades

Red Ventures trimmed its incremental senior secured first-lien term loan to $300 million from $400 million, lifted pricing to Libor plus 350 bps from talk in the range of Libor plus 300 bps to 325 bps and set the Libor floor at 0.75%, the wide end of the 0.5% to 0.75% talk, a market source said.

The term loan still has an original issue discount of 98.

During the session, the incremental term loan made its way into the secondary market and was quoted at 98 bid, 98¾ offered, the source added.

BofA Securities Inc. is the left lead on the deal that will be used to help fund the acquisition of CNET Media Group, a digital media company, from ViacomCBS for $500 million.

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

Red Ventures is a Fort Mill, S.C.-based portfolio of digital brands.

Southern Vet hits secondary

Southern Veterinary Partners’ bank debt started trading too, with the strip of $435 million seven-year senior secured first-lien term loan (B2/B-) and $60 million delayed-draw first-lien term loan (B2/B-) debt quoted at 99¼ bid, par ¼ offered, and the $140 million eight-year senior secured second-lien term loan (Caa2/CCC) quoted at 99½ bid, 101½ offered, a market source remarked.

Pricing on the first-lien term loan debt is Libor plus 400 bps with a 1% Libor floor, and it includes 101 soft call protection for one year. The debt was sold at an original issue discount of 99, which on the delayed-draw piece will be paid upon drawing. The delayed-draw 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.

The second-lien term loan is priced at Libor plus 775 bps with a 1% Libor floor and was issued at a discount of 99. This tranche has hard call protection of 102 in year one and 101 in year two.

During syndication, pricing on the second-lien term loan was lowered from Libor plus 800 bps and the discount was tightened from 98.5.

Southern Vet revolver

Along with the term loans, Southern Veterinary’s $665 million of credit facilities include a $30 million five-year revolver (B2/B-).

Jefferies LLC is the lead arranger on the deal.

Proceeds will be used to refinance the company’s existing capital structure and provide liquidity for future acquisitions.

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

Maravai on deck

Back in the primary market, Maravai LifeSciences emerged with plans to hold a lender call at 1 p.m. ET on Tuesday to launch $750 million of senior secured credit facilities, according to a market source.

The facilities consist of a $150 million revolver and a $600 million first-lien term loan B, the source said.

Morgan Stanley Senior Funding Inc., Goldman Sachs Bank USA, Jefferies LLC and Antares Capital LP are leading the deal that will be used to refinance existing debt, fund the repurchase of an existing Cygus minority interest, fund a distribution to shareholders, and pay transaction fees and expenses.

Maravai, a GTCR portfolio company, is a San Diego-based provider of life science reagents and services to researchers and biotech innovators.

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