SRS Distribution, Hilton Grand, Ensono, Academy, Frontdoor, Global Healthcare break

By Sara Rosenberg

New York, May 20 – SRS Distribution Inc. upsized its term loan B, cut the spread and firmed the issue price at the middle of guidance, and Hilton Grand Vacations finalized pricing and original issue discount on its term loan B at the tight side of talk, and then both of these deals freed to trade on Thursday.

Also, before breaking, Ensono Holdings LLC increased the size of its first-lien term loan B, and set the spread at the low end of talk and the original issue discount at the wide side of guidance, Academy Ltd. (Academy Sports & Outdoors) trimmed pricing on its first-lien term loan, and Frontdoor Inc. downsized its term loan B, finalized the spread at the narrow end of talk and tightened the issue price, and upsized its term loan A.

Another deal to make its way into the secondary market during the session was Global Healthcare Exchange LLC.

In more happenings, Ascensus reduced pricing on its first-lien term loan and firmed the issue price at the tight end of talk, and Rocket Software Inc. modified the Libor floor on its U.S. incremental first-lien term loan B and widened original issue discounts on the U.S. debt as well as on its euro first-lien term loan.

Additionally, ProAmpac set the issue price on its term loan at the wide end of guidance, and Insight Global (IG Investments Holdings LLC) moved up the commitment deadline for its incremental first-lien term loan.

Furthermore, Dessert Holdings and Smart Start Inc. released price talk with launch, and Oravel Stays Private Ltd. joined this week’s primary calendar.

SRS modified, frees up

SRS Distribution increased its term loan B to $2.19 billion from $2.04 billion, reduced pricing to Libor plus 375 basis points from talk in the range of Libor plus 400 bps to 425 bps and finalized the original issue discount at 99.25, the midpoint of the 99 to 99.5 talk, according to a market source.

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

On Thursday, the term loan B broke for trading, with levels quoted at 99 5/8 bid, par offered, another source added.

BofA Securities Inc., Barclays, UBS Investment Bank, BMO Capital Markets, Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Nomura, RBC Capital Markets, Regions and Wells Fargo Securities LLC are leading the deal that will be used with $650 million of senior secured notes and $450 million of senior unsecured notes, downsized from $600 million, to refinance an existing term loan, repay ABL borrowings, redeem existing notes, fund a dividend to shareholders, add cash to the balance sheet, and pay related fees and expenses.

SRS Distribution is a McKinney, Tex.-based roofing products distributor.

Hilton updated, trades

Hilton Grand Vacations set pricing on its $1.3 billion seven-year term loan B (Ba1/BB/BB+) at Libor plus 300 bps, the low end of the Libor plus 300 bps to 325 bps talk, and the original issue discount at 99.5, the tight end of the 99 to 99.5 talk, a market source said.

The 0.5% Libor floor and 101 soft call protection for six months on the term loan were unchanged.

The term loan began trading during the session, with levels quoted at 99¾ bid, par 1/8 offered, another source added.

BofA Securities Inc., Deutsche Bank Securities Inc., Barclays, Credit Suisse Securities (USA) LLC, JPMorgan Chase Bank, Goldman Sachs Bank USA and MUFG are leading the deal that will be used with $850 million of senior notes to refinance debt in connection with the acquisition of Diamond Resorts International Inc.

The notes were upsized from $675 million to repay revolver borrowings.

Diamond Resorts is being purchased from Apollo Global Management Inc. and Reverence Capital Partners for 34.5 million shares of Hilton Grand Vacations common stock. The transaction is valued at $1.4 billion.

Closing is expected this summer, subject to customary conditions.

Hilton Grand is an Orlando, Fla.-based timeshare company. Diamond Resorts is a timeshare operator.

Ensono revised

Ensono Holdings raised its seven-year covenant-lite first-lien term loan B to $748 million from $723 million, firmed pricing at Libor plus 400 bps, the low end of the Libor plus 400 bps to 425 bps talk, removed an initial public offering pricing step-down and one leverage-based pricing step-down, and finalized the original issue discount at 99, the wide end of the 99 to 99.5 talk, a market source remarked.

The first-lien term loan has a pricing step-down at 4x net leverage, a 0.75% Libor floor and 101 soft call protection for six months.

The company’s now $1.098 billion of credit facilities also include a $100 million revolver and a $250 million privately placed second-lien term loan.

Morgan Stanley Senior Funding Inc., UBS Investment Bank, KKR Capital Markets, Barclays, Mizuho, MUFG, RBC Capital Markets and Societe Generale are leading the deal.

Ensono hits secondary

Recommitments for Ensono’s first-lien term loan B were due at noon ET on Thursday and the debt freed to trade later in the day, with levels quoted at 99¼ bid, 99¾ offered, a trader added.

The credit facilities will be used with equity to fund the buyout of the company by KKR from Charlesbank Capital Partners and M/C Partners, refinance existing debt and pay fees and expenses related to the transaction.

Due to the first-lien term loan B upsizing, the equity component of the financing is being reduced by $25 million.

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

Ensono is a Chicago-based hybrid IT services provider.

Academy flexes, breaks

Academy lowered the spread on its $300 million covenant-lite first-lien term loan (B2/B+) due November 2027 to Libor plus 375 bps from talk in the range of Libor plus 400 bps to 425 bps, according to a market source.

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

Recommitments were due at noon ET on Thursday and the loan began trading in the afternoon, with levels quoted at par 3/8 bid, par ¾ offered, another source added.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to reprice an existing term loan down from Libor plus 500 bps with a 0.75% Libor floor.

In connection with this transaction, the existing term loan is being paid down by $99 million to $300 million with cash from the balance sheet.

Academy is a Katy, Tex.-based sporting goods, outdoor and lifestyle products retailer.

Frontdoor reworked, trades

Frontdoor reduced its seven-year term loan B to $380 million from $400 million, firmed pricing at Libor plus 225 bps, the low end of the Libor plus 225 bps to 250 bps talk and modified the original issue discount to 99.5 from 99, a market source remarked.

The 0% Libor floor and 101 soft call protection for six months on the term loan B were unchanged.

With the term loan B downsizing, the company lifted its term loan A to $260 million from $250 million, the source continued.

The company also plans on getting a revolver as part of its new credit facilities (Ba2/BB-).

Recommitments were due at 1 p.m. ET on Thursday and the term loan hit the secondary market in the afternoon, with levels quoted at par 1/8 bid, par 5/8 offered, another source added.

JPMorgan Chase Bank is leading the deal that will be used with cash on hand to repay the company’s $350 million 6¾% senior notes due 2026 and to refinance a revolver due in 2023 and a term loan B due in 2025.

Closing is expected in June.

Frontdoor is a Memphis-based provider of home service plans.

Global Healthcare frees

Global Healthcare’s fungible $100 million incremental first-lien term loan broke for trading as well, with levels quoted at 99½ bid, par ¼ offered, according to a market source.

Pricing on the incremental term loan is Libor plus 325 bps with a 1% Libor floor and it was sold at an original issue discount of 99.27.

During syndication, the discount on the term loan was tightened from 98.5.

JPMorgan Chase Bank is leading the deal that will be used with a $260 million privately placed second-lien term loan to redeem preferred equity and refinance an existing second-lien term loan.

Global Healthcare Exchange is a Louisville, Colo.-based provider of cloud-based health care supply chain management technology and services.

Ascensus tweaked

Back in the primary market, Ascensus trimmed pricing on its $1.05 billion seven-year first-lien term loan (B2/B-) to Libor plus 350 bps from Libor plus 375 bps and set the original issue discount at 99.5, the tight end of the 99 to 99.5 talk, according to a market source.

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

JPMorgan Chase Bank is the left lead on the deal that will be used with a privately placed second-lien term loan (Caa2) to help fund the buyout of the company by Stone Point Capital and GIC from Genstar Capital, Aquiline Capital Partners and Atlas Merchant Capital. Genstar and Aquiline will maintain a minority stake in the company.

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

Ascensus is a Dresher, Pa.-based tech-enabled solutions provider focused on recordkeeping and administration in the U.S. tax advantages savings market.

Rocket changes emerge

Rocket Software lifted the Libor floor on its roughly $490 million incremental first-lien term loan B to 0.5% from 0% and changed the original issue discount to 97.5 from 98, according to a market source.

The company also widened the discount on its €275 million first-lien term loan to 97.5 from 98.

Pricing on the U.S. incremental term loan remained at Libor plus 425 bps, and pricing on the euro term loan remained at Euribor plus 425 bps with a 0% floor. Both loans still have 101 soft call protection for six months.

Previously in syndication, the U.S. term loan was downsized from $825 million and the euro term loan was added to the capital structure.

Commitments continue to be due at noon ET on Friday and allocations are expected on Monday morning.

RBC Capital Markets and Deutsche Bank Securities Inc. are leading the deal that will be used with excess balance sheet cash to fund the acquisition of ASG Technologies, a Naples, Fla.-based provider of information management and mainframe systems performance management, from Evergreen Coast Capital.

Rocket Software, a Bain Capital portfolio company, is a Waltham, Mass.-based provider of enterprise infrastructure software.

ProAmpac firms OID

ProAmpac finalized the original issue discount on its $1.8 billion term loan due November 2024 at 99.75, the wide end of the 99.75 to par talk, a market source remarked.

As before, the term loan is priced at Libor plus 375 bps with a 0.75% Libor floor and has 101 soft call protection for six months.

Antares Capital is leading the deal that will be used to reprice an existing term loan down from Libor plus 400 bps with a 1% Libor floor.

ProAmpac, a Pritzker Private Capital portfolio company, is a Cincinnati-based manufacturer of flexible packaging and material science solutions.

Insight moves deadline

Insight Global accelerated the commitment deadline for its fungible $550 million covenant-lite incremental first-lien term loan (B2/B-) due May 2025 to 5 p.m. ET on Monday from 5 p.m. ET on Wednesday, a market source said.

Pricing on the incremental term loan is Libor plus 400 basis points with a 1% Libor floor, in line with existing term loan pricing, and the new debt is talked with an original issue discount of 99.27.

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

Credit Suisse Securities (USA) LLC, BofA Securities Inc., Truist, Wells Fargo Securities LLC, BMO Capital Markets and Goldman Sachs Bank USA are leading the deal that will be used to fund a distribution to shareholders.

Existing lenders are being offered a 37.5 bps amendment fee.

Insight Global is an Atlanta-based professional services company.

Dessert guidance

Dessert Holdings held its call on Thursday morning and announced price talk on its $380 million first-lien term loan (B-), $75 million first-lien delayed-draw term loan (B-) and $135 million second-lien term loan (CCC), according to a market source.

Talk on the first-lien term loan debt is Libor plus 400 bps to 425 bps with a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and talk on the second-lien term loan is Libor plus 725 bps to 750 bps with a 0.75% Libor floor, a discount of 99 and hard call protection of 102 in year one and 101 in year two, the source said.

Ticking fees on the delayed-draw term loan are half the margin from days 61 to 120 and the full margin from days 121 to 24 months after closing.

The company’s $665 million of credit facilities also include a $75 million revolver (B-).

Commitments are due on June 4, the source added.

Dessert lead banks

Antares Capital, Barclays, BMO Capital Markets, Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., KKR Capital Markets, MUFG, Nomura Securities, RBC Capital Markets, Sumitomo Mitsui Banking Corp. and Stifel Nicolaus and Co. are leading Desserts Holdings’ credit facilities.

The new debt will be used to help fund the buyout of the company by Bain Capital Private Equity from Gryphon Investors.

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

Dessert Holdings is a St. Paul, Minn.-based dessert company.

Smart Start talk

Smart Start launched on its afternoon call a fungible $40 million incremental first-lien term loan (B-) talked with an original issue discount of 99.5, a market source remarked.

Like the existing first-lien term loan, the incremental term loan is priced at Libor plus 475 bps with a 1% Libor floor.

Commitments are due end of day on May 27, the source added.

The company is also getting a $115 million privately placed second-lien term loan (CCC).

BNP Paribas Securities Corp. is leading the deal that will be used to fund a dividend.

Smart Start is a Grapevine, Tex.-based provider of ignition interlocks and portable devices for alcohol monitoring.

Oravel on deck

Oravel Stays Private set a lender call for 11 a.m. ET on Friday to launch a $600 million five-year term loan B (B3) talked at Libor plus 850 bps with a 0.75% Libor floor and an original issue discount of 96 to 97, according to a market source.

The term loan is non-callable for two years, then at 107.5 in year three and 103 in year four.

Commitments are due at 5 p.m. ET on June 2, the source added.

JPMorgan Chase Bank and Deutsche Bank Securities Inc. are leading the deal that will be used to refinance existing debt and for general corporate purposes.

Oravel is an India-based provider of budget accommodations.

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