Solera, Sovos Brands break; Oravel, Protective Industrial, Aimbridge updates surface

By Sara Rosenberg

New York, June 3 – Solera finalized original issue discounts on its euro and pound sterling term loans at the tight end of revised talk, and freed to trade its U.S. term loan on Thursday morning, and Sovos Brands Intermediate Inc.’s first-lien term loan broke as well.

In more happenings, Oravel Stays Private Ltd. increased the size of its term loan B, trimmed pricing and finalized the issue price at the tight side of guidance, Protective Industrial Products Inc. firmed the issue price on its incremental term loan B at the tight end of talk, and Aimbridge Hospitality set the spread on its term loan B at the low end of guidance.

Additionally, Madison IAQ, Prestige Brands Inc., Osmose Utilities Services, Colibri and Nuvei Corp. released price talk with launch, and MaxLinear Inc. joined the near-term primary calendar.

Solera finalized

Solera firmed the original issue discount on its €1.2 billion seven-year term loan (B2/B-) at 99.5, the tight end of revised talk of 99 to 99.5 and tighter than initial talk of 99, and set the discount on its £300 million seven-year term loan (B2/B-) at 99.25, the tight end of revised talk of 99 to 99.25 and tighter than initial talk of 99, according to a market source.

The euro term loan is priced at Euribor plus 400 basis points with a 0% floor and the pound sterling term loan is priced at Sonia plus 525 bps with a 0% floor.

The company is also getting a $3.38 billion seven-year term loan (B2/B-) priced at Libor plus 400 bps with a 25 bps step-down at 4.5x first-lien net leverage, a 0.5% Libor floor and an original issue discount of 99.5.

All of the term loans have 101 soft call protection for six months.

Earlier in syndication, the spread on the euro term loan firmed at the low end of the Euribor plus 400 bps to 425 bps talk, and pricing on the U.S. term loan was set at the low end of the Libor plus 400 bps to 425 bps talk, the Libor floor was revised from 0.75% and the discount was modified from 99.

Solera hits secondary

On Thursday, Solera’s bank debt allocated and freed to trade, with the U.S. term loan quoted at par 1/8 bid, par 5/8 offered, another source added.

Goldman Sachs, JPMorgan Chase Bank, Barclays, BNP Paribas Securities Corp., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Guggenheim, HSBC Securities, Nomura, Macquarie, Jefferies LLC and KKR Capital Markets are leading the deal. Goldman is the left lead on the U.S. loan and JPMorgan is the left lead on the euro and pound sterling loans.

The term loans will be used to refinance existing debt and for other general corporate purposes such as funding certain acquisitions and to pay for related transaction fees and expenses.

Closing is expected on Friday.

Solera is a Westlake, Tex.-based provider of integrated vehicle lifecycle management.

Sovos frees up

Sovos Brands’ $580 million seven-year covenant-lite first-lien term loan (B2/B) also began trading, with levels quoted at par bid, par ¾ offered, a market source said.

Pricing on the first-lien term loan is Libor plus 425 bps with a 25 bps step-down at 3.8x first-lien net leverage and a 50 bps step-down upon an initial public offering, and a 0.75% Libor floor, The debt was sold at an original issue discount of 99.75 and has 101 soft call protection for six months.

During syndication, the spread on the first-lien term loan was reduced from Libor plus 475 bps and the discount was revised from talk in the range of 99 to 99.5.

The company is also getting a $200 million privately placed second-lien term loan (CCC+).

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to repay existing debt and fund a distribution to shareholders.

Sovos is a Berkeley, Calif.-based food company.

Oravel changes emerge

Back in the primary market, Oravel Stays Private raised its five-year term loan B to $660 million from $600 million, lowered pricing to Libor plus 825 bps from Libor plus 850 bps and set the original issue discount at 97, the tight end of the 96 to 97 talk, according to a market source.

As before, the term loan has a 0.75% Libor floor and call protection of non-callable for two years, then at 107.5 in year three and 103 in year four.

Recommitments are due at noon ET on Friday, 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.

Protective Industrial updated

Protective Industrial Products set the original issue discount on its fungible $135 million incremental term loan B at 99.75, the tight end of the 99.5 to 99.75 talk, a market source remarked.

The incremental term loan is priced at Libor plus 400 bps with a 0.75% Libor floor, in line with the existing term loan B, and all of the debt is getting 101 soft call protection for six months.

Commitments are due at noon ET on Friday, accelerated from 5 p.m. ET on Monday, and allocations are expected on Friday afternoon, the source added.

Antares Capital, Citizens Bank and Bank of Ireland are leading the deal that will be used to fund a $171 million acquisition.

Pro forma for the transaction, the term loan B will total $570 million.

Protective Industrial Products, an Odyssey portfolio company, is a Latham, N.Y.-based provider of personal protective equipment and industrial safety products.

Aimbridge sets spread

Aimbridge Hospitality finalized pricing on its $199 million term loan B due 2026 at Libor plus 475 bps, the low end of the Libor plus 475 bps to 500 bps talk, a market source said.

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

JPMorgan Chase Bank is leading the deal that will be used to reprice an existing term loan down from Libor plus 600 bps with a 0.75% Libor floor.

Aimbridge is a Plano, Tex.-based hotel management firm.

Madison IAQ guidance

Madison IAQ held its lender call on Thursday morning and announced talk on its $1.925 billion seven-year first-lien term loan (B1/B) at Libor plus 350 bps to 375 bps with a 0.5% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

Commitments are due at 5 p.m. ET on June 16, the source added.

Goldman Sachs Bank USA, Citigroup Global Markets Inc., CIBC, Barclays, BofA Securities Inc., HSBC Securities (USA) Inc., MUFG, Capital One, Golub and Stifel are leading the deal that will be used with $600 million of other secured debt, $885 million of unsecured debt and equity from Madison Industries to fund the acquisition of Nortek Air from Melrose Industries plc and refinance Madison IAQ’s existing debt.

Closing is expected this summer.

Madison IAQ is a provider of indoor air quality solutions. Nortek Air is a provider of critical air management, thermal and HVAC solutions.

Prestige launches

Prestige Brands launched on its morning call its $600 million seven-year senior secured term loan (Ba2/BB) at talk of Libor plus 225 bps to 250 bps with a 0.5% Libor floor and an original issue discount of 99 to 99.5, a market source said.

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

Commitments are due at noon ET on June 11.

Barclays is the left lead on the deal that will be used to fund the acquisition of a portfolio of over-the-counter brands from Akorn Operating Co. LLC for $230 million in cash and refinance an existing senior secured term loan B.

Closing is expected during the company’s fiscal second quarter, subject to customary conditions, including clearance under the Hart-Scott Rodino Antitrust Improvements Act of 1976.

Prestige Brands is a Tarrytown, N.Y.-based marketer and distributor of over-the-counter health care and household cleaning products.

Osmose proposed terms

Osmose Utilities Services, in connection with its afternoon call, released talk on its $760 million seven-year first-lien term loan (B2/B) at Libor plus 350 bps to 375 bps with a 25 bps step-down at 0.5x inside closing date net first-lien secured leverage, a 0.5% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

Commitments are due at 5 p.m. ET on June 16, the source added.

The company is also getting a $270 million privately placed second-lien term loan.

Goldman Sachs Bank USA, RBC Capital Markets, UBS Investment Bank and Societe Generale are leading the deal that will be used to refinance the company’s existing capital structure and fund a distribution to shareholders.

EQT Infrastructure is the sponsor.

Osmose Utilities is a Peachtree City, Ga.-based provider of structural integrity management and resiliency services for utility and telecommunications infrastructure.

Colibri sets talk

Colibri came out with talk of Libor plus 450 bps with a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for six months on its $400 million seven-year term loan B that launched with a call in the morning, a market source remarked.

The company’s $430 million of credit facilities (B3/B-) also include a $30 million revolver.

Commitments are due at noon ET on June 16, the source added.

RBC Capital Markets and Jefferies LLC are leading the deal, which will be used to refinance existing privately placed debt.

Gridiron Capital is the sponsor.

Colibri is a St. Louis-based provider of online learning solutions for professional education.

Nuvei details surface

Nuvei held its call in the afternoon and launched a $200 million add-on term loan and repricing of its existing $212 million term loan at talk of Libor plus 250 bps to 275 bps with a 0.5% Libor floor and 101 soft call protection for six months, a market source said. The add-on term loan is talked with an original issue discount of 99.5 and the repricing is offered at par.

Commitments are due at 5 p.m. ET on June 10, the source added.

BMO Capital Markets is leading the deal.

The add-on term loan will be used for acquisition financing and general corporate purposes, and the repricing will take the existing term loan down from Libro plus 400 bps with a 0.75% Libor floor.

Nuvei is a Montreal-based payment technology company.

MaxLinear on deck

MaxLinear set a lender call for 11 a.m. ET on Friday to launch a $350 million seven-year covenant-lite term loan B, according to a market source.

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

Commitments are due at 3 p.m. ET on June 17.

Wells Fargo Securities LLC, MUFG, BMO Capital Markets and Citizens Bank are leading the deal that will be used to repay a term loan A due 2023 and a term loan B due 2024.

MaxLinear is a Carlsbad, Calif.-based provider of integrated, radio-frequency analog, and mixed-signal semiconductor solutions for broadband communications applications.

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