Del Monte, Cast & Crew, CTC break; Safe Fleet changes deadline; Hexion, Teneo set talk

By Sara Rosenberg

New York, Feb. 15 – Del Monte increased the size of its term loan B and firmed the spread at the low end of guidance before freeing up for trading on Tuesday, and deals from Cast & Crew and CTC Holdings (Chicago Trading Co.) emerged in the secondary market as well.

In more happenings, Safe Fleet accelerated the commitment deadline for its first-lien term loan, Hexion Holdings Corp. and Teneo released price talk with launch, and Resideo Technologies Inc., Consumer Cellular Inc. and Entegris LLC joined this week’s primary calendar.

Del Monte upsized, trades

Del Monte raised its seven-year term loan B (B3/B) to $600 million from $525 million and set pricing at SOFR+CSA plus 425 basis points, the low end of the SOFR+CSA plus 425 bps to 450 bps talk, according to a market source.

As before, the term loan has a 0.5% floor, an original issue discount of 99, CSA of 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate, 101 soft call protection for six months, and ticking fees of half the margin for days 31 to 60 and the full margin thereafter.

Recommitments were due at noon ET on Tuesday and the term loan B broke in the afternoon, with levels quoted at 99¼ bid, par offered, another source added.

Goldman Sachs Bank USA, JPMorgan Chase Bank, Wells Fargo Securities LLC, BMO Capital Markets and MUFG are leading the deal that will be used to refinance the company’s existing capital structure and, due to the upsizing, to repay some ABL borrowings.

Closing is expected in May.

Del Monte is a producer, distributor and marketer of plant-based food products.

Cast & Crew frees

Cast & Crew’s fungible $225 million add-on first-lien term loan B (B2/B) due Dec. 30, 2028 began trading during the session, with levels quoted at 99¾ bid, par ¼ offered, a trader said.

Pricing on the add-on term loan is SOFR plus 375 bps with a 0.5% floor and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection until June, and ticking fees of half the margin from days 46 to 90 and the full margin thereafter.

Goldman Sachs Bank USA and RBC Capital Markets are leading the deal that will be used to fund the acquisition of Backstage Holdings, a New York-based provider of talent marketplace and content creation tools for the creative economy.

With this transaction, pricing on the company’s existing $250 million term loan B due Dec. 30, 2028 will switch to SOFR plus 375 bps with a 0.5% floor from Libor plus 375 bps with a 0.5% Libor floor.

EQT is the sponsor.

Cast & Crew is a Burbank, Calif.-based provider of software and services to the entertainment production industry.

CTC hits secondary

CTC Holdings’ $300 million seven-year term loan B (B1/B+) also freed up, with levels quoted at 99 bid, par offered, according to a market source.

Pricing on the term loan is SOFR+CSA plus 500 bps with a 0.5% floor and it was sold at an original issue discount of 98.5. The debt has 101 soft call protection for one year, and CSA of 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

JPMorgan Chase Bank is leading the deal that will be used for trading capital and general corporate purposes.

CTC is a Chicago-based trading firm.

Safe Fleet accelerated

Back in the primary market, Safe Fleet moved up the commitment deadline for its $595 million seven-year first-lien term loan (B2/B-) to 5 p.m. ET on Wednesday from Thursday, a market source remarked.

Talk on the term loan is SOFR+CSA plus 375 bps to 400 bps with a 0.5% floor, an original issue discount of 99.5, CSA of 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate, and 101 soft call protection for six months.

Goldman Sachs Bank USA, UBS Investment Bank and MUFG are leading the deal that will be used to refinance existing first-lien debt, fund an acquisition, and pay transaction fees and expenses.

Oak Hill is the sponsor.

Safe Fleet is a Belton, Mo.-based provider of safety and productivity products for fleet vehicles and first responders.

Hexion guidance

Hexion held its lender call on Tuesday morning and announced price talk on its $1.4 billion seven-year first-lien term loan (B2/B) at SOFR+10 bps CSA plus 425 bps to 450 bps with two leverage-based step-downs, a 0.5% floor and an original issue discount of 99 to 99.5, according to a market source.

The first-lien term loan has 101 soft call protection for six months, and ticking fees of half the margin from days 46 to 90 and the full margin thereafter.

Commitments are due at noon ET on March 1, the source added.

Goldman Sachs Bank USA, RBC Capital Markets, Morgan Stanley Senior Funding Inc., BofA Securities Inc., Deutsche Bank Securities Inc., Barclays and Jefferies LLC are leading the deal that will be used with a $425 million privately placed second-lien term loan (Caa2/B-) and equity to fund the buyout of the company by American Securities LLC for $30 per share.

Closing is expected in the first half of this year, subject to shareholder and regulatory approvals and other customary conditions.

Hexion is a Columbus, Ohio-based supplier of thermoset resins.

Teneo sets talk

Teneo came out with talk of SOFR+CSA plus 525 bps with a 1% floor and an original issue discount of 98.5 to 99 on its fungible $80 million incremental first-lien term loan (B2/B) due July 2025 that launched with a call in the afternoon, a market source said.

CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

The company is also seeking an amendment to its existing credit facility to migrate to SOFR subject to a negative consent amendment and refresh the incremental debt capacity under the free and clear basket.

Commitments and consents are due at noon ET on Feb. 23, the source added.

Goldman Sachs Bank USA is leading the deal.

The incremental term loan will be used to repay revolver borrowings and fund future acquisitions.

CVC Capital Partners is the sponsor.

Teneo is a New York-based CEO advisory firm.

Resideo readies deal

Resideo Technologies set a lender call for 2 p.m. ET on Wednesday to launch a fungible $200 million add-on term loan due 2028, according to a market source.

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

Commitments are due at 5 p.m. ET on Feb. 23, the source added.

JPMorgan Chase Bank is leading the deal that will be used to help fund the acquisition of First Alert Inc., an Aurora, Ill.-based provider of home safety products, from Newell Brands Inc. for $593 million and for general corporate purposes.

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

Resideo is an Austin, Tex.-based provider of home comfort and security solutions and distributor of commercial and residential security and audio-visual products.

Consumer Cellular on deck

Consumer Cellular scheduled a lender call for 11 a.m. ET on Wednesday to launch a fungible $872 million add-on first-lien term loan due December 2027, a market source remarked.

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

BofA Securities Inc., Barclays, Credit Suisse Securities (USA) LLC and Jefferies LLC are leading the deal that will be used to fund a dividend to the sponsor.

Consumer Cellular is a Portland, Ore.-based provider of postpaid wireless services.

Entegris coming soon

Entegris will hold a lender call at 1 p.m. ET on Wednesday to launch a $2.495 billion senior secured term loan B, according to a market source.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used with other secured and unsecured debt to help fund the acquisition of CMC Materials Inc. for $133.00 in cash and 0.4506 shares of Entegris common stock per CMC share, and to pay fees and expenses related to the transaction. The acquisition has an enterprise value of about $6.5 billion.

Closing is expected in the second half of this year, subject to customary conditions, including regulatory approvals and approval by CMC Materials shareholders.

Entegris is a Billerica, Mass.-based supplier of advanced materials and process solutions for the semiconductor and other high-technology industries. CMC Materials is an Aurora, Ill.-based supplier of advanced materials primarily for the semiconductor industry.

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