Flow Control, Yesway, DuBois Chemicals, Triton Water, Hudson River, Win Waste, Watlow break

By Sara Rosenberg

New York, March 17 – Flow Control Group (Flow Merger Sub Inc.) set the spread on its first-lien term loan at the low end of guidance, added a step-down, tightened the original issue discount and revised the delayed-draw ticking fee, and trimmed pricing on its second-lien term loan before freeing up for trading on Wednesday.

Also, before breaking for trading, Yesway (BW Gas & Convenience Holdings LLC) firmed pricing on its term loan B at the low end of talk and DuBois Chemicals Inc. changed the original issue discount on its add-on term loan.

Other deals to make their way into the secondary market during the session included Triton Water Holdings Inc., Hudson River Trading LLC, Win Waste Innovations (Granite Acquisition Inc.) and Watlow.

In more happenings, Denali Water Solutions LLC lowered the spread on its first-lien term loan, Liquid Tech Solutions LLC modified the original issue discount on its first-lien term loan., and Galderma increased the size of its add-on first-lien term loan and reduced pricing on the add-on loan as well as on the repricing of its existing first-lien term loan.

Additionally, Veritas Technologies revised original issue discount talk on its term loan B, and ThoughtWorks Inc. and Trinseo SA accelerated the commitment deadlines for their term loan transactions.

Furthermore, Aegion Corp. and Teneo announced price talk with launch, and MedRisk, Conga (Apttus Corp.), AIT Worldwide Logistics and ECL Entertainment LLC joined this week’s primary calendar.

Flow Control revised

Flow Control Group finalized pricing on its $625 million seven-year covenant-lite first-lien term loan (B2/B-), which includes a $100 million delayed-draw tranche, at Libor plus 375 basis points, the low end of the Libor plus 375 bps to 400 bps talk, added a 25 bps step-down at 5.9x total net leverage, and moved the original issue discount to 99.75 from 99.5, according to a market source.

Also, the delayed-draw term loan ticking fee was changed to half the margin from days 61 to 120 and the full margin thereafter from 0.75% starting on day 61.

As for the $110 million eight-year covenant-lite second-lien term loan (Caa2/CCC), the spread was cut to Libor plus 675 bps from talk in the range of Libor plus 700 bps to 725 bps, the source said.

Both term loans still have a 0.5% Libor floor, the first-lien term loan still has 101 soft call protection for six months, and the second-lien term loan still has an original issue discount of 99 and call protection of 102 in year one and 101 in year two.

Flow Control breaks

Recommitments or Flow Control’s bank debt were due at noon ET on Wednesday, and the first-lien term loan started trading later in the day, with levels quoted at 99¾ bid, par 1/8 offered, another source added.

Credit Suisse Securities (USA) LLC, UBS Investment Bank and KKR Capital Markets are leading the deal, with Credit Suisse the left lead on the first-lien loan and UBS the left lead on the second-lien loan.

The new loans will be used to help fund the buyout of the company by KKR from Bertram Capital and to finance deals under letters of intent.

Flow Control is a Charlotte, N.C.-based distributor and technical adviser for mission critical flow control and industrial automation products and related services.

Yesway firms, trades

Yesway set pricing on its $410 million seven-year term loan B (B1/B+) at Libor plus 375 bps, the low end of the Libor plus 375 bps to 400 bps talk, a market source said.

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

During the session, the term loan broke for trading, with levels quoted at 99½ bid, par ½ offered, another source added.

JPMorgan Chase Bank is leading the deal that will be used to refinance existing debt.

Yesway is a Fort Worth, Tex.-based convenience stores operator.

DuBois tweaked, frees

DuBois Chemicals revised the original issue discount on its $90 million add-on term loan (B2) to 99.25 from talk in the range of 98 to 98.75, according to a market source.

Pricing on the add-on term loan is Libor plus 450 bps with a 0% Libor floor.

The add-on term loan started trading on Wednesday, with levels quoted at 99½ bid, par ½ offered, another source added.

JPMorgan Chase Bank is leading the deal that will be used to redeem notes, repay revolver borrowings and add cash to the balance sheet.

DuBois Chemicals is a Sharonville, Ohio-based provider of specialty cleaning chemical solutions.

Triton hits secondary

Triton Water Holdings’ $2.55 billion seven-year covenant-lite first-lien term loan B (B1/B) freed up for trading, with levels quoted at 99 7/8 bid, par 3/8 offered on the break and then it moved up to par bid, par ½ offered, according to a trader.

Pricing on the term loan is Libor plus 350 bps with a 25 bps pricing step-down at 0.5x inside closing date first-lien net leverage and a 25 bps step-down upon the consummation of a qualifying initial public offering, and a 0.5% Libor floor. The debt was sold at an original issue discount of 99.5 and has 101 soft call protection for six months.

During syndication, the term loan was upsized from $1.8 billion as a planned $750 million senior secured notes offering was cancelled, pricing was lowered from Libor plus 375 bps and the discount finalized at the tight end of the 99 to 99.5 talk.

The company’s $2.9 billion of senior secured credit facilities also include a $350 million ABL revolver.

Triton being acquired

Proceeds from Triton Water’s credit facilities will be used to help fund its acquisition by One Rock Capital Partners LLC and Metropoulos & Co. from Nestle SA for $4.3 billion.

Morgan Stanley Senior Funding Inc., BofA Securities Inc., Jefferies LLC, RBC Capital Markets, Mizuho and Credit Suisse Securities (USA) LLC are leading the deal.

Other funds for the transaction will come from $770 million of senior notes, upsized from $670 million with the extra proceeds adding cash to the balance sheet.

Closing is expected during the week of March 29.

Triton is a Stamford, Conn., provider of bottled water.

Hudson River frees up

Hudson River Trading’s $1.725 billion seven-year first-lien term loan B (Ba2/BB-) began trading too, with levels quoted at 99 1/8 bid, 99 5/8 offered, a market source said.

Pricing on the term loan is Libor plus 300 bps with a 0% Libor floor and it was sold at an original issue discount of 99. The loan has 101 soft call protection for six months.

Goldman Sachs Bank USA, BofA Securities Inc. and JPMorgan Chase Bank are leading the deal that will be used to refinance an existing $1.225 billion term loan and add cash to the balance sheet.

Closing is expected this week.

Hudson River Trading is a New York-based electronic market maker and liquidity provider.

Win Waste tops OID

Win Waste Innovations’ $1 billion seven-year covenant-lite first-lien term loan also made its way into the secondary market, with levels quoted at 99¾ bid, par ½ offered, according to a market source.

Pricing on the term loan is Libor plus 275 bps with a 0.5% Libor floor and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months.

During syndication, the spread on the term loan was lowered from Libor plus 325 bps.

The company’s $1.4 billion of credit facilities (B1/B+) also include a $400 million revolver.

Credit Suisse Securities (USA) LLC, JPMorgan Chase Bank, Mizuho, MUFG, RBC Capital Markets, Deutsche Bank Securities Inc. and Truist are leading the deal that will be used to recapitalize the legacy Wheelabrator business, to refinance Tunnel Hill Partners debt, for general corporate purposes and to pay fees and expenses.

Win Waste is a vertically-integrated waste services provider.

Watlow starts trading

Watlow’s $515 million seven-year term loan B (B2/B) broke as well, with levels quoted at 99¾ bid, par ¾ offered on the break and then it moved to 99 7/8 bid, par 3/8 offered, a trader remarked.

The term loan is priced at Libor plus 400 bps with a 0.5% Libor floor and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months.

During syndication, pricing on the term loan firmed at the low end of the Libor plus 400 bps to 425 bps talk.

BMO Capital Markets, BofA Securities Inc., Barclays and Citizens Bank are leading the deal that will be used to help fund the buyout of the company by Tinicum LP.

Watlow is a St. Louis-based designer and manufacturer of complete thermal systems.

Denali tightens

Back in the primary market, Denali Water Solutions trimmed pricing on its $395 million first-lien term loan to Libor plus 425 bps from talk in the range of Libor plus 450 bps to 475 bps, and left the 0.75% Libor floor, original issue discount of 99 and 101 soft call protection for six months unchanged, a market source remarked.

The company’s $455 million of credit facilities (B3/B-) also include a $60 million revolver.

Recommitments were due at midday on Wednesday, the source added.

UBS Investment Bank, BMO Capital Markets and KeyBanc Capital Markets are leading the deal that will be used to fund the acquisition of Organix Recycling LLC, a food waste collector and recycler, and to refinance Denali’s existing credit facility.

Denali Water Solutions, a TPG portfolio company, is a Russellville, Ark.-based specialty waste and environmental services company.

Liquid Tech modified

Liquid Tech Solutions adjusted the original issue discount on its $300 million covenant-lite first-lien term loan (B3/B-) to 99.5 from 99, according to a market source.

Pricing on the term loan remained at Libor plus 475 bps with a 0.75% Libor floor and the debt still has 101 soft call protection for six months.

Recommitments were due at 5 p.m. ET on Wednesday, the source added.

Citizens, Credit Suisse Securities (USA) LLC and BNP Paribas Securities Corp. are leading the deal that will be used to refinance existing debt.

Lindsay Goldberg is the sponsor.

Liquid Tech is a tech-enabled provider of route-based, on-site mobile refueling solutions.

Galderma updated

Galderma raised its fungible covenant-lite add-on first-lien term loan due October 2026 to $600 million from $400 million, and cut pricing on the add-on debt as well as on the repricing of its existing $2.53 billion covenant-lite first-lien term loan due October 2026 to Libor plus 375 bps from Libor plus 400 bps, a market source remarked.

As before, the term loan debt has a 25 bps step-down at 4.35x first-lien net leverage, a 0.75% Libor floor and 101 soft call protection for six months, the add-on term loan has an original issue discount of 99.75 and the repricing has a par issue price.

Commitments are due at 11 a.m. ET on Thursday, the source added.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Goldman Sachs Bank USA are leading the deal.

The add-on term loan will be used to refinance a portion of the company’s existing euro loan tranche, and the repricing will take the existing U.S. term loan down from Libor plus 425 bps with a 1% Libor floor.

Galderma is a Switzerland-based skincare company offering medical and consumer skin health solutions.

Veritas changes talk

Veritas Technologies modified original issue discount talk on its $1.322 billion term loan B due September 2025 to a range of 99.875 to par from just 99.875, a market source said.

The term loan is still talked at Libor plus 500 bps with a 1% Libor floor and 101 soft call protection for six months.

Commitments continue to be due at noon ET on Thursday, the source added.

The company is also getting a €549 million term loan B due September 2025.

BofA Securities Inc. is leading the deal that will be used to reprice existing U.S. and euro term loans down from Libor/Euribor plus 550 bps with a 1% floor.

Veritas is a Santa Clara, Calif.-based provider of data protection and availability.

ThoughtWorks accelerated

ThoughtWorks moved up the commitment deadline for its $715 million seven-year covenant-lite first-lien term loan (B2/B+) to 5 p.m. ET on Thursday from noon ET on Tuesday, according to a market source.

Talk on the term loan is Libor plus 325 bps to 350 bps with a 0.5% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC, HSBC Securities (USA) Inc., Goldman Sachs Bank USA, RBC Capital Markets, Nomura and Jefferies LLC are leading the deal that will be used to refinance existing debt and fund a shareholder distribution.

ThoughtWorks is a Chicago-based pure play digital transformation services provider.

Trinseo tweaks timing

Trinseo accelerated the commitment deadline for its $750 million seven-year covenant-lite term loan B to 5 p.m. ET on Wednesday from 5 p.m. ET on Thursday, a market source said.

The term loan is talked at Libor plus 275 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., Barclays, BNP Paribas Securities Corp., JPMorgan Chase Bank, Mizuho, Goldman Sachs Bank USA, Truist and Fifth Third are leading the deal.

The company also plans to refinance its existing $375 million revolver with a new five-year revolver.

Trinseo funding acquisition

Proceeds from Trinseo’s term loan, $450 million of unsecured notes and about $198 million of existing cash will be used to finance the acquisition of Arkema SA’s polymethyl methacrylates and activated methyl methacrylates businesses for €1.137 billion.

Closing is expected in the first half of May, subject to customary conditions and regulatory approvals.

Pro forma secured net leverage is 2.2x and total net leverage is 4.1x based on adjusted EBITDA of $484 million for the year ended Dec. 31, 2020.

Trinseo is a Berwyn, Pa.-based materials company and manufacturer of plastics, latex binders and synthetic rubber.

Aegion proposed terms

Aegion held its call on Wednesday and announced talk on its $650 million seven-year first-lien term loan at Libor plus 500 bps with a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

The company’s $725 million of credit facilities also include a $75 million five-year revolver.

Commitments are due on March 30, the source added.

Jefferies LLC, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., MUFG, SMFG and KeyBanc Capital Markets are leading the deal that will be used with equity to fund the buyout of the company by New Mountain Capital LLC for $27.00 per share in cash. The transaction has a total enterprise value of $995 million, including net debt.

Closing is expected in the second quarter, subject to Aegion stockholder approval, regulatory approvals and other customary conditions.

Aegion is a Chesterfield, Mo.-based provider of infrastructure maintenance, rehabilitation and protection solutions, primarily serving municipal water and wastewater entities.

Teneo sets guidance

Teneo came out with original issue discount talk of 98.5 to 99 on its fungible $150 million incremental first-lien term loan (B2/B) due July 2025 that launched with a call in the afternoon, a market source said.

Pricing on the incremental term loan is Libor plus 525 bps with a 1% Libor floor, in line with the existing term loan, and the debt is getting 101 soft call protection for six months.

Commitments are due on March 30, the source added.

Goldman Sachs Bank USA is leading the deal that will be used to fund the acquisition of Deloitte UK’s restructuring services business.

CVC Capital Partners is the sponsor.

Teneo is a New York-based CEO advisory firm.

MedRisk readies deal

MedRisk set a lender call for 11 a.m. ET on Thursday to launch its previously announced $750 million first-lien term loan, according to a market source.

The company’s $1.15 billion of credit facilities also include a $100 million revolver and a $300 million privately placed second-lien term loan.

UBS Investment Bank, BofA Securities Inc., Macquarie Capital (USA) Inc., Truist and Societe Generale are leading the deal that will be used to help fund the buyout of the company by CVC Capital Partners.

The Carlyle Group, MedRisk’s current majority owner, will retain a significant stake and maintain joint control in partnership with CVC.

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

MedRisk is a King of Prussia, Pa.-based provider of managed physical medicine services for the workers’ compensation industry.

Conga joins calendar

Conga scheduled a lender call for 11 a.m. ET on Thursday to launch a $565 million seven-year covenant-lite first-lien term loan, a market source remarked.

The term loan has 101 soft call protection for six months, the source added.

Commitments are due at 5 p.m. ET on March 30.

Deutsche Bank Securities Inc. is the left lead on the deal that will be used to repay $565 million of existing borrowings.

Conga is a provider of a cloud-based software platform that digitally transforms revenue operations.

AIT on deck

AIT Worldwide Logistics will hold a lender call at 1 p.m. ET on Thursday to launch a $415 million first-lien term loan, according to a market source.

The company is also getting a $125 million privately placed second-lien term loan, the source said.

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 help fund the buyout of the company by the Jordan Co. from Quad-C Management Inc.

Closing is expected at the end of March, subject to customary closing conditions and completion of review under antitrust laws.

AIT Worldwide is a non-asset based third party logistics platform, providing an integrated suite of global, end-to-end supply chain services.

ECL coming soon

ECL Entertainment set a lender call for 11:30 a.m. ET on Thursday to launch $345 million of credit facilities, split between a $20 million revolver (BB-) and a $325 million seven-year first-lien term loan (B-), a market source said.

The term loan is talked at Libor plus 800 bps with a 1% Libor floor, an original issue discount of 98 to 98.5, and call protection of non-callable for 1.5 years, then at 102 for a year and 101 for a year, the source added.

Commitments are due at 5 p.m. ET on March 31.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to refinance existing debt and finance expansion projects.

ECL is a regional gaming company.

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