Culligan tweaks deal; Royal Oak, Pregis modify deadlines; Provation, Quantum, Sabre set talk

By Sara Rosenberg

New York, Dec. 7 – In the loan market on Monday, Culligan Holding Inc. (AI Aqua Merger Sub Inc.) approached investors with an incremental first-lien term loan B and then tightened the original issue discount later in the day.

Also, Royal Oak Enterprises (Ozark Holdings LLC) and Pregis (Pregis Topco LLC) moved up the commitment deadlines for their first-lien term loans.

Furthermore, Provation Software Group Inc., Quantum Health Inc. and Sabre GLBL Inc. released price talk with launch, and CommerceHub Inc. joined this week’s primary calendar.

Culligan tightens

Culligan launched during the session a fungible $50 million incremental covenant-lite first-lien term loan B (B2/B) due Dec. 13, 2023 talked with an original issue discount of 99.5, according to a market source.

Then, shortly after the 4 p.m. ET commitment deadline passed, it was disclosed that the discount was revised to 99.75, the source added.

Like the existing term loan, the incremental term loan is priced at Libor plus 525 basis points with a 1% Libor floor.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used for general corporate purposes, including future tuck-in acquisitions.

Culligan is a Rosemont, Ill.-based provider of water treatment products and services.

Royal Oak accelerated

Royal Oak Enterprises moved up the commitment deadline for its $400 million seven-year senior secured first-lien term loan B to 5 p.m. ET on Wednesday from noon ET on Friday, a market source remarked.

Talk on the term loan is Libor plus 400 bps to 425 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

Barclays and Citigroup Global Markets Inc. are leading the deal that will be used to repay an existing term loan and repurchase a minority interest to increase Mariposa Capital’s ownership in the company.

Royal Oak is a Roswell, Ga.-based manufacturer and distributor of fire-building products and other consumable products.

Pregis revises timing

Pregis accelerated the commitment deadline for its non-fungible $232.5 million incremental covenant-lite first-lien term loan (B2/B-) due July 2026 to noon ET on Wednesday from 5 p.m. ET on Wednesday, according to a market source.

Talk on the incremental term loan is Libor plus 450 bps with a 0.75% Libor floor, an original issue discount of 98.5 to 99 and 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC, Barclays, Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc., UBS Investment Bank and Wells Fargo Securities LLC are leading the deal that will be used to repay revolver borrowings and fund a dividend.

Pregis is a Deerfield, Ill.-based supplier of packaging systems, consumables and surface protection films.

Provation sets guidance

Provation Software Group held its call on Monday afternoon and, shortly before the call began, talk on its $250 million seven-year covenant-lite first-lien term loan (B2/B-) was announced at Libor plus 475 bps with a 0.75% Libor floor and an original issue discount of 98 to 98.5, a market source said.

The first-lien term loan has 101 soft call protection for six months.

Commitments are due at 5 p.m. ET on Dec. 16.

The company is also getting an $80 million privately placed second-lien term loan (Caa2/CCC).

Credit Suisse Securities (USA) LLC, Jefferies LLC and BMO Capital Markets are leading the deal that will be used to refinance debt and add cash to the balance sheet for near-term acquisitions.

Provation is a Minneapolis-based provider of clinical productivity software for health care professionals.

Quantum holds call

Quantum Health surfaced in the morning with plans to hold a lender call at 3 p.m. ET on Monday to launch $360 million of credit facilities (B-), split between a $60 million revolver and a $300 million seven-year covenant-lite first-lien term loan, according to a market source.

Talk on the term loan is Libor plus 500 bps with a 0.75% Libor floor, an original issue discount of 98.5 to 99 and 101 soft call protection for six months, the source said.

Commitments are due at 5 p.m. ET on Dec. 17.

Credit Suisse Securities (USA) LLC, Jefferies LLC, UBS Investment Bank and Mizuho are leading the deal that will be used to help fund a significant investment in the company by Warburg Pincus. Great Hill Partners, which invested in Quantum Health in 2017 and is the company’s current majority shareholder, will retain a significant stake.

Quantum Health is a Columbus, Ohio-based consumer healthcare navigation and care coordination company.

Sabre comes to market

Sabre hosted a lender call at 2 p.m. ET to launch a non-fungible $637 million seven-year senior secured incremental term loan B (Ba3/B) talked at Libor plus 450 bps to 475 bps with a 0.75% Libor floor and an original issue discount of 98.5, according to a market source.

BofA Securities Inc., Mizuho Bank Ltd., Wells Fargo Securities LLC, Deutsche Bank Securities Inc., Citigroup Global Markets Inc., PNC Bank, Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc., MUFG, J.P. Morgan Securities LLC and ING Bank are the joint bookrunners on the deal. BofA Securities is the sole lead arranger and the administrative agent.

Sabre will use $500 million of the proceeds to redeem its November 2023 secured notes, and $137 million of the proceeds to repay in full outstanding term loan A borrowings and a portion of the fees and expenses in connection with the prepayment.

Southlake, Tex.-based Sabre is a software and technology company for the travel industry.

CommerceHub on deck

CommerceHub scheduled a lender call for 11 a.m. ET on Tuesday to launch $790 million of senior secured credit facilities, a market source remarked.

The facilities consist of a $50 million revolver, a $530 million first-lien term loan B and a $210 million second-lien term loan, the source added.

Morgan Stanley Senior Funding Inc. is the left lead on the deal that will be used to fund the sale of just under 50% of the company to Insight Partners by existing sponsors GTCR and Sycamore Partners.

CommerceHub is an Albany, N.Y.-based provider of ecommerce solutions for enterprise retailers and brands.

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