Brook, AIT, Mediaocean, Installed, US Radiology, Cloudmed, OEConnection, Ingenovis break

By Sara Rosenberg

New York, Dec. 9 – Brook + Whittle (Merion Rose Merger Sub Inc.) trimmed the spread on its first-lien term loan, removed a leverage-based step-down and revised ticking fees on the delayed-draw piece, and AIT Worldwide Logistics upsized its incremental first-lien term loan and modified the issue price, and then these deals freed to trade on Thursday.

Other deals to emerge in the secondary market during the session included Mediaocean, Installed Building Products Inc., US Radiology Specialists Inc., Cloudmed, OEConnection LLC and Ingenovis Health.

In more happenings, Yahoo disclosed the breakdown of its add-on term loans and firmed the original issue discount at the tight end of talk, and Anticimex Inc. increased the size of its incremental term loan B, set pricing at the low side of guidance, added a step-down and changed the issue price.

Also, Aveanna Healthcare LLC finalized the spread on its second-lien term loan at the high end of talk, Baldwin Risk Partners LLC upsized its add-on first-lien term loan B, and DiversiTech, RealPage Inc. and Tosca Services LLC moved up the commitment deadlines for their term loan transactions.

Furthermore, Mister Car Wash Holdings Inc., Mega Broadband Investments LLC and HighTower Holding LLC released price talk with launch.

Brook cuts spread, frees

Brook + Whittle reduced pricing on its $478 million seven-year first-lien term loan (B2/B-), of which $100 million is a delayed-draw tranche, to Libor plus 400 basis points from Libor plus 450 bps, eliminated a 25 bps step-down at 4.75x first-lien net leverage, and changed the ticking fees on the delayed-draw tranche to half the margin from days 46 to 90 and the full margin thereafter, from half the margin from days 61 to 120 and the full margin thereafter, a market source said.

As before, the first-lien term loan has a 25 bps step-down upon an initial public offering, a 0.5% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

Recommitments were due at noon ET on Thursday and the strip of funded and delayed-draw first-lien term loan debt broke in the afternoon, with levels quoted at 99¼ bid, par offered, another source added.

The company’s $697 million of credit facilities also include a $50 million revolver (B2/B-) and a $169 million privately placed second-lien term loan.

Credit Suisse Securities (USA) LLC, Wells Fargo Securities LLC, Jefferies LLC and BMO Capital Markets are leading the deal that will help fund Genstar Capital’s buyout of the company from TruArc Partners.

Brook + Whittle is a Guilford, Conn.-based manufacturer of labels and packaging.

AIT upsized, trades

AIT Worldwide lifted its fungible incremental first-lien term loan (B1/B) due April 6, 2028 to $235 million from $210 million and adjusted the original issue discount to 99.75 from talk in the range of 99 to 99.5, according to a market source.

Pricing on the incremental term loan is Libor plus 475 bps with a 0.75% Libor floor, which matches existing term loan pricing.

In the afternoon, the incremental term loan freed to trade, with levels quoted at 99¾ bid, par ½ offered, a trader added.

Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC, BMO Capital Markets, BNP Paribas Securities Corp. and Citizens Bank are leading the deal that will be used to fund the purchase price of Select Express, pay down revolver borrowings, pay transaction fees and expenses, and, due to the upsizing, to add cash to the balance sheet for general corporate purposes, including permitted acquisitions and investments.

Closing is expected on Dec. 17.

AIT, a Jordan Co. portfolio company, is an Itasca, Ill.-based provider of end-to-end supply chain services. Select Express is a New York-based final mile third-party logistics solutions provider.

Mediaocean hits secondary

Mediaocean’s $925 million seven-year first-lien term loan began trading during the session, with levels quoted at 99¼ bid, 99½ offered, according to a market source.

Pricing on the first-lien term loan is Libor plus 350 bps with a 25 bps leverage-based step-down and a 0.5% Libor floor. The debt was sold at an original issue discount of 99 and has 101 soft call protection for six months.

During syndication, the first-lien term loan was upsized from $875 million, pricing finalized at the low end of the Libor plus 350 bps to 375 bps talk, and one 25 bps leverage-based step-down was removed.

Macquarie Capital (USA) Inc. and Nomura are leading the deal that will be used with a $125 million pre-placed second-lien term loan to help fund the buyout of the company by CVC Capital Partners and TA Associates from Vista Equity Partners and, due to the recent upsizing, to add cash to the balance sheet.

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

Mediaocean is a New York-based omnichannel advertising platform.

Installed Building tops OID

Installed Building Products’ $500 million seven-year term loan B (Ba2/BB+) also freed up, with levels quoted at 99 7/8 bid, par 3/8 offered, a trader said.

Pricing on the term loan is Libor plus 225 bps with a 0.5% Libor floor and it was sold at an original issue discount of 99.5. The loan has 101 soft call protection for six months.

During syndication, the spread on the term loan firmed at the low end of the Libor plus 225 bps to 250 bps talk.

RBC Capital Markets is the left lead on the deal that will be used to refinance an existing $200 million term loan B due April 2025 as well as for acquisitions, other growth initiatives and general corporate purposes.

Closing is expected this month.

Installed Building Products is a Columbus, Ohio-based installer of insulation and complementary building products.

US Radiology frees up

US Radiology Specialists’ fungible $450 million incremental first-lien term loan and repriced roughly $784 million first-lien term loan due Dec. 15, 2027 began trading in the afternoon, with levels quoted at 99 5/8 bid, par 1/8 offered, according to a market source.

Pricing on the term loan debt (B3/B-) is Libor plus 525 bps with a 0.5% Libor floor. The incremental term loan was sold at an original issue discount of 99.25 and the repricing was issued at par. The debt has 101 soft call protection for six months.

During syndication, pricing on the term loan debt was increased from Libor plus 475 bps and the discount on the incremental term loan was changed from 99.

Barclays, Capital One, Deutsche Bank Securities Inc. and Fifth Third are leading the deal.

The incremental term loan will be used to fund the acquisition of Alpine and repay revolver borrowings, and the repricing will take the existing term loan down from Libor plus 550 bps with a 0.75% Libor floor.

US Radiology is a Raleigh, N.C.-based radiology group.

Cloudmed starts trading

Cloudmed’s fungible $240 million incremental first-lien term loan B due Oct. 15, 2027 (B3/B-) broke as well, with levels quoted at 99 5/8 bid, par 1/8 offered, a market source remarked.

Pricing on the incremental term loan is Libor plus 425 bps with a 0.5% Libor floor, in line with the existing term loan, and the new loan was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months.

During syndication, the incremental term loan was upsized from $213 million and the discount was tightened from 99.

Goldman Sachs Bank USA and Deutsche Bank Securities Inc. are leading the deal that will be used to fund the acquisition of par8o, a revenue integrity company.

Closing is expected this month.

Cloudmed, formerly known as Revint, is an Atlanta-based provider of end-to-end revenue integrity solutions that identify and recover unidentified or underpaid revenue on behalf of health care systems.

OEConnection breaks

OEConnection’s fungible $120 million incremental first-lien term loan started trading too, with levels quoted at 99½ bid, par offered, according to a market source.

Like the existing term loan, the incremental first-lien term loan is priced at Libor plus 400 bps with no floor. The new debt was sold at an original issue discount of 99.25.

During syndication, the discount on the incremental first-lien term loan was revised from 99.03.

Antares Capital is leading the deal that will be used with a $120 million pre-placed incremental second-lien term loan and a $100 million pre-placed PIK preferred to fund the acquisition of Opstrax, a provider of OEM/aftermarket parts procurement and logistics software.

Genstar is the sponsor.

Pro forma for the transaction, the first-lien term loan will total $723 million.

OEConnection is a Cleveland-based provider of SaaS solutions that help drive genuine OE parts sales and services across the entire automotive system.

Ingenovis hits secondary

Another deal to emerge in the secondary market was Ingenovis Health’s fungible $150 million add-on covenant-lite term loan due March 2028, with levels quoted at 99 7/8 bid, par ¼ offered, a market source said.

Pricing on the add-on term loan is Libor plus 375 bps with a 0.75% Libor floor, which matches existing term loan pricing, and the new debt was sold at an original issue discount of 99.75.

During syndication, the add-on term loan was lifted from $100 million.

Citizens Bank and UBS Investment Bank are leading the deal that will be used to fund the acquisition of HealthCare Support, an Orlando, Fla.-based health care staffing platform.

Closing is expected in the first quarter of 2022, subject to regulatory approvals and other customary conditions.

Ingenovis is a tech-enabled platform for health care staffing backed by private investment firms Cornell Capital and Trilantic North America.

Yahoo updated

Back in the primary market, Yahoo set the split of its $300 million of fungible add-on term loans, with $130 million being an add-on to the term loan B-1 and $170 million being an add-on to the high-yield style term loan B-2, and finalized the original issue discount on both tranches at 99.5, the tight end of the 99 to 99.5 talk, a market source remarked.

Pricing on the add-on term loans is Libor plus 550 bps with a 0.75% Libor floor.

Commitments remained due at 5 p.m. ET on Thursday and allocations are targeted for Friday morning, the source added.

RBC and Apollo Global Funding are leading the deal that will be used for general corporate purposes.

Pro forma for the transaction, the term loan B-1 will total $780 million and the term loan B-2 will total $1.02 billion.

Yahoo is a technology and media company comprised of brands such as Yahoo and AOL.

Anticimex reworked

Anticimex raised its non-fungible senior secured incremental covenant-lite term loan B due Nov. 16, 2028 to $375 million from $350 million, set pricing at Libor plus 400 bps, the low end of the Libor plus 400 bps to 425 bps talk, added a 25 bps step-down at 5x first-lien net leverage and tightened the original issue discount to 99.5 from 99, according to a market source.

The incremental term loan still has a 0.5% Libor floor and 101 soft call protection for six months.

Commitments continued to be due at 5 p.m. ET on Thursday and allocations are expected on Friday, the source added.

Morgan Stanley Senior Funding Inc. is leading the deal. Global Loan Agency Services Ltd. is the agent.

The term loan will be used to refinance revolver drawings made in connection with acquisitions, fund cash to the balance sheet for general corporate purposes and pay fees and expenses related to the transaction.

Anticimex is a Stockholm-based preventive pest control company.

Aveanna firms

Aveanna Healthcare set the spread on its $415 million eight-year senior secured second-lien term loan (Caa1/CCC) at Libor plus 700 bps, the high end of the Libor plus 675 bps to 700 bps talk, a market source said.

The term loan still has a 0.5% Libor floor, an original issue discount of 99, and call protection of 102 in year one and 101 in year two. The call protection is 101 in year one and par in year two with respect to any prepayments made in connection with any equity issuance.

Barclays is leading the deal that will be used to help fund the acquisitions of Comfort Care for $345 million and Accredited Nursing Services for a base purchase price of $180 million, plus up to $45 million of potential additional consideration.

Closing is expected this quarter.

Aveanna is an Atlanta-based home care provider. Comfort Care is a provider of adult home health and hospice operations in Alabama and Tennessee. Accredited is a provider of private duty services in California.

Baldwin Risk revised

Baldwin Risk Partners increased its fungible add-on first-lien term loan B due 2027 to $350 million from $250 million, according to a market source.

Pricing on the add-on term loan is Libor plus 350 bps with a 0.5% Libor floor and an original issue discount of 98.8.

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

JPMorgan Chase Bank is the left lead on the deal that will be used to repay revolver borrowings, to fund certain permitted acquisitions and for general corporate purposes.

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

DiversiTech moves deadline

DiversiTech revised the commitment deadline for its $725 million seven-year first-lien term loan B (B2/B-), $150 million delayed-draw first-lien term loan (B2/B-) and $240 million eight-year second-lien term loan (Caa2/CCC) to 5 p.m. ET on Tuesday from 5 p.m. ET on Dec. 16, a market source said.

Talk on the first-lien term loan debt is Libor plus 375 bps to 400 bps with step-downs, a 0.5% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months, and talk on the second-lien term loan is Libor plus 650 bps to 675 bps with step-downs, a 0.5% Libor floor, a discount of 99 and hard call protection of 101 for one year.

The company’s $1.215 billion senior secured deal also includes a $100 million revolver (B2/B-).

RBC Capital Markets, UBS Investment Bank, Barclays, Societe Generale, Citizens Bank, Natixis and Santander are leading the credit facilities that will be used with $1.32 billion of equity to fund the buyout of the company by Partners Group from Permira in a transaction valued at $2.2 billion. Permira and management will remain minority investors in the company.

DiversiTech is an Atlanta-based manufacturer of products for the HVAC and refrigeration industry.

RealPage tweaks timing

RealPage accelerated the commitment deadline for its fungible $260 million incremental covenant-lite first-lien term loan due April 2028 to 5 p.m. ET on Monday from 5 p.m. ET on Wednesday, according to a market source.

Pricing on the add-on term loan is Libor plus 325 bps with a 0.5% Libor floor, in line with existing term loan pricing, and the new debt is talked with an original issue discount of 99.

UBS Investment Bank, Credit Suisse Securities (USA) LLC and Goldman Sachs Bank USA are leading the deal that will be used to fund the acquisition of HomeWiseDocs, a provider of software solutions to property management companies.

Closing is expected this quarter, subject to customary conditions.

Thoma Bravo is the sponsor.

RealPage is a Richardson, Tex.-based provider of software and data analytics to the real estate industry.

Tosca accelerated

Tosca Services changed the commitment deadline for its fungible $75 million incremental first-lien term loan due August 2027 to noon ET on Monday from 5 p.m. ET on Tuesday, a market source remarked.

Pricing on the incremental term loan is Libor plus 350 bps with a 0.75% Libor floor, in line with existing term loan pricing, and the new debt is talked with an original issue discount of 99.

The incremental and existing term loan are getting 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to repay ABL borrowings.

Tosca is an Atlanta-based provider of reusable packaging supply chain solutions.

Mister Car Wash talk

Mister Car Wash held a lender call at 9:30 a.m. ET on Thursday to launch a $290 million incremental first-lien term loan due May 2026 talked at Libor plus 300 bps with a 0% Libor floor and an original issue discount of 99.01 to 99.25, according to a market source.

Commitments are due at 2 p.m. ET on Dec. 14, the source added.

Jefferies LLC is leading the deal that will be used with cash on hand to fund the acquisition of Clean Streak Ventures LLC from MKH Capital Partners for about $390 million.

Closing is expected this year, subject to customary conditions.

Mister Car Wash is a Tucson-based car wash operator.

Mega Broadband launches

Mega Broadband Investments launched without a call a fungible $155 million incremental term loan B (B+) talked with an original issue discount of 99.25 to 99.5, a market source said.

The incremental term loan is priced at Libor plus 300 bps with a 0.75% Libor floor, same as the existing term loan.

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

Truist Securities Inc. is the left lead on the deal that will be used to fund a distribution to shareholders and pay down revolving credit facility borrowings.

Mega Broadband is a broadband provider.

HighTower holds call

HighTower Holding held a lender call at 12:30 p.m. ET to launch a fungible $190 million add-on term loan due April 2028 talked with an original issue discount of 99 to 99.25, according to a market source.

Pricing on the add-on term loan is Libor plus 400 bps with a 0.75% Libor floor.

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

JPMorgan Chase Bank is leading the deal that will be used for general corporate purposes, including permitted acquisitions.

HighTower is a Chicago-based registered investment adviser that owns and provides a suite of mission critical services to independent advisory practices.

© 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.