Kantar, ArchKey, iHeartCommunications, Traeger, Charter Next free to trade; BBB tightens

By Sara Rosenberg

New York, June 25 – Kantar firmed pricing on its first-lien term loan B at the low side of revised talk and tightened the original issue discount, and ArchKey Solutions (ArchKey Holdings Inc.) set the spread on its first-lien term loan at the high end of guidance, extended the call protection and made a number of changes to documentation, and then both of these deals broke for trading on Friday.

In addition, iHeartCommunications Inc. finalized pricing on its term loan at the low end of talk before freeing up for trading, and deals from Traeger (TGP Holdings III LLC) and Charter Next Generation Inc. made their way into the secondary market as well.

In more happenings, BBB Industries LLC modified the original issue discount on its incremental first-lien term loan, Sabre GLBL Inc. approached investors with a term loan transaction, and First Student & First Transit joined the near-term primary calendar.

Kantar updated, trades

Kantar set pricing on its $500 million first-lien term loan B (B2/B-) due December 2026 at Libor plus 450 basis points, the low end of revised talk of Libor plus 450 bps to 475 bps and down from initial talk of Libor plus 500 bps, and changed the original issue discount to 99.25 from 99, according to a market source.

As before, the term loan has a 0.75% Libor floor and 101 soft call protection for six months.

On Friday, the term loan began trading, with levels quoted at 99¾ bid, par ½ offered, another source added.

Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc., BofA Securities Inc., Barclays, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Jefferies LLC are leading the deal. Wilmington Trust is the administrative agent.

The term loan will be used with $425 million of senior secured notes, a shareholder equity contribution and cash on the balance sheet to fund the acquisition of Numerator. The notes were upsized from $400 million, with the extra proceeds available for general corporate purposes.

Kantar is a London-based data analytics and brand consulting group. Numerator is a Chicago-based, tech-driven consumer and market intelligence company.

ArchKey revised, breaks

ArchKey Solutions finalized pricing on its $320 million seven-year covenant-lite first-lien term loan at Libor plus 525 bps, the high end of the Libor plus 500 bps to 525 bps talk, and extended the 101 soft call protection to one year from six months, a market source said.

Also, changes were made to MFN, incremental amount, ratio debt, asset sale sweep, available amount, debt covenant, investment covenant, restricted payments, junior debt prepayments, consolidated EBITDA pro forma cost savings addback and events of default, and J. Crew, Serta and Chewy protection were added as well as a requirement to hold lender calls and written management discussion and analysis.

The term loan still has a 0.75% Libor floor and an original issue discount of 99.

Recommitments were due at noon ET on Friday and the term loan freed up in the afternoon, with levels quoted at 99¼ bid, 99¾ offered, another source added.

Deutsche Bank Securities Inc., Barclays and UBS Investment Bank are leading the deal that will be used to help fund the buyout of the company by One Rock Capital Partners LLC.

Closing is expected this summer, subject to customary conditions.

ArchKey is a St. Louis-based electrical and technologies contracting and services provider.

iHeart finalized, frees

iHeartCommunications firmed pricing on its $402 million term loan at Libor plus 325 bps, the low end of the Libor plus 325 bps to 350 bps talk, according to a market source.

The term loan still has a 0.5% Libor floor, a par issue price and 101 soft call protection for six months.

In the afternoon, the term loan emerged in the secondary market, with levels quoted at par bid, par ¼ offered, a trader added.

BofA Securities Inc. is leading the deal that will be used to reprice an existing incremental term loan down from Libor plus 400 bps with a 0.75% Libor floor. The incremental term loan is currently sized at $447 million, but is being paid down to $402 million with cash on hand.

The company also plans on repaying a portion of its existing $2.075 billion term loan with cash on hand.

The total $250 million prepayment is being applied to the term loans on a pro-rata basis.

Closing on the repricing is expected in mid-July.

iHeartCommunications is a San Antonio-based media company.

Traeger hits secondary

Traeger’s $510 million seven-year first-lien term loan and $50 million delayed-draw first-lien term loan broke for trading, with levels quoted at par bid, par ½ offered, a market source remarked.

Pricing on the term loans is Libor plus 350 bps with a 25 bps step-down upon an initial public offering and a 25 bps step-down upon an upgrade to B1 (stable), and a 0.75% 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, pricing on the term loans was lowered from Libor plus 400 bps, the step-downs were added and the discount firmed at the tight end of the 99 to 99.5 talk.

The company’s $685 million of credit facilities (B2/B) also include a $125 million revolver.

Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc., MUFG, Jefferies LLC, BMO Capital Markets and RBC Capital Markets are leading the deal that will be used to refinance existing debt, fund cash to the balance sheet, and pay related fees and expenses.

Traeger is a Salt Lake City-based designer and marketer of outdoor cooking products.

Charter Next tops par

Charter Next Generation’s $1.836 billion first-lien term loan (B2/B) due December 2027 also freed to trade, with levels quoted at par 1/8 bid, par 3/8 offered, according to a market source.

Pricing on the term loan is Libor plus 375 bps with a 0.75% Libor floor and it was issued at par. The debt has 101 soft call protection for six months.

Jefferies LLC and KKR Capital Markets are leading the deal that will be used to reprice an existing $1.596 billion first-lien term loan and an existing fungible $240 million incremental first-lien term loan down from Libor plus 425 bps with a 0.75% Libor floor.

Charter Next Generation is a Milton, Wis.-based producer of specialty films used in flexible packaging, industrial, health care, and consumer applications.

BBB tweaks OID

BBB Industries tightened the original issue discount on its fungible $180 million incremental first-lien term loan to 99.5 from 99.25, a market source said.

The incremental term loan is priced at Libor plus 450 bps with a 0% Libor floor.

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

UBS Investment Bank, Credit Suisse Securities (USA) LLC and BMO Capital Markets are leading the deal that will be used to refinance an existing second-lien term loan.

Genstar Capital is the sponsor.

BBB Industries is a Daphne, Ala.-based remanufacturer and distributor of non-discretionary and application specific replacement parts to the North American and European automotive aftermarket.

Sabre holds call

Sabre hosted a lender call at noon ET on Friday to launch a $1.04 billion term loan (Ba3) due December 2027 talked at Libor plus 350 bps with a 0.5% Libor floor and an original issue discount of 99.5, a market source remarked.

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

BofA Securities Inc. is the left lead on the deal that will be used to refinance an existing term loan due December 2027 and repay revolver borrowings.

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

First Student on deck

First Student & First Transit set a lender call for 11 a.m. ET on Monday to launch $2.015 billion of senior secured first-lien term loans, according to a market source.

The debt is split between a $1.49 billion seven-year term loan B and a $525 million seven-year term loan C, and both tranches have 101 soft call protection for six months, the source said.

Barclays, Morgan Stanley Senior Funding Inc., BMO Capital Markets, TD Securities (USA) LLC, Credit Suisse Securities (USA) LLC, RBC Capital Markets, MUFG, BNP Paribas Securities Corp., Citizens Bank, Deutsche Bank Securities Inc., Stifel and Mizuho are leading the deal.

The term loan B will be used to help fund the buyout of the companies by EQT Infrastructure from FirstGroup plc for $4.6 billion and proceeds from the term loan C will be placed in a specified restricted account for purposes of providing cash collateral against letters of credit.

Closing is expected this summer, subject to customary conditions.

First Student is a Cincinnati-based student transportation service provider. First Transit is a Cincinnati-based public transit management operator.

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