Fairbanks, Mannington, Paya, Colibri, Grosvenor, DRW, Forcepoint, Culligan and more break

By Sara Rosenberg

New York, June 17 – Fairbanks Morse Defense upsized its first-and second-lien term loans and changed the original issue discount on the first-lien debt, Mannington Mills Inc. widened the spread and issue price on its term loan B, and Paya Inc. lowered pricing on its first-lien term loan and finalized the original issue discount at the tight end of guidance, and then these deals freed to trade on Thursday.

Also, before breaking for trading, Colibri downsized its term loan B and firmed the spread at the high end of revised talk, Grosvenor Capital Management Holdings LLLP and DRW Holdings LLC upsized their incremental term loans and set original issue discounts at the tight side of guidance, and Forcepoint changed the issue price on its incremental first-lien term loan.

Other deals to make their way into the secondary market during the session included Culligan (Osmosis Debt Merger Sub Inc.), Osmose Utilities Services Inc., Orbcomm Inc. and Quantum Health Inc.

In more happenings, K-Mac Holdings Corp. finalized spreads on its first-and second-lien term loans at the low end of guidance, Burlington Stores Inc. set pricing on its term loan B at the narrow end of talk and J.D. Power accelerated the commitment deadline for its incremental term loans.

Furthermore, Visual Comfort & Co. (Illuminate Merger Sub Corp.), HCA Inc., Focus Financial Partners Inc., CentroMotion, MedData Inc., Unified Women’s Healthcare LP and WCG Purchaser Corp. announced price talk with launch.

Additionally, United Talent Agency, BBB Industries LLC and Technimark LLC joined the near-term primary calendar.

Fairbanks modified, trades

Fairbanks Morse Defense raised its seven-year senior secured first-lien term loan to $530 million from $510 million and changed the original issue discount to 99.5 from 99, a market source remarked.

Also, the company upsized its eight-year second-lien term loan to $165 million from $155 million.

The first-lien term loan is still priced at Libor plus 475 basis points with a 0.75% Libor floor and has 101 soft call protection for six months, and the second-lien term loan is still priced at Libor plus 825 bps with a 0.75% Libor floor and a discount of 98.5 and has hard call protection of 102 in year one and 101 in year two.

The company’s now $770 million of credit facilities include a $75 million five-year ABL revolver as well.

Recommitments were due at 12:30 p.m. ET on Thursday and the first-lien term loan freed to trade later in the day, with levels quoted at 99¾ bid, par ¼ offered, a trader added.

Jefferies LLC, BMO Capital Markets and UBS Investment Bank are leading the deal that will be used to refinance existing debt and fund a distribution to shareholders.

Fairbanks Morse Defense is a Beloit, Wis.-based provider of propulsion systems, ancillary power, motors and controllers for the U.S. Navy and U.S. Coast Guard, and provider of associated parts and maintenance services.

Mannington reworked, breaks

Mannington Mills raised pricing on its $261,250,000 term loan B (B1/BB-) due July 2026 to Libor plus 375 bps from Libor plus 350 bps and revised the original issue discount to 99.875 from par, according to a market source.

The term loan still has a 0% Libor floor and 101 soft call protection for six months.

During the session, the term loan B began trading, with levels quoted at par bid, par ¼ offered, a trader added.

RBC Capital Markets is the left lead on the deal that will be used to reprice an existing term loan B down from Libor plus 400 bps with a 0% Libor floor.

Closing is expected this month.

Mannington Mills is a Salem, N.J.-based manufacturer of flooring products for the commercial and residential construction markets.

Paya flexes, frees up

Paya cut pricing on its $250 million seven-year covenant-lite first-lien term loan to Libor plus 325 bps from Libor plus 375 bps and firmed the original issue discount at 99.5, the tight end of the 99 to 99.5 talk, a market source said.

The 0.75% Libor floor and 101 soft call protection for six months on the term loan were unchanged.

The company’s $295 million of credit facilities (B1/B+) also include a $45 million revolver.

Recommitments were due at 11 a.m. ET on Thursday and the term loan made its way into the secondary market later in the day, with levels quoted at 99¾ bid, par offered, another source added.

Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc., Jefferies LLC, Ares, Golub Capital and GSO are leading the deal that will be used to refinance an existing term loan.

Paya is an Atlanta-based integrated payments and commerce platform.

Colibri revised, breaks

Colibri scaled back its seven-year term loan B to $350 million from $400 million and set pricing at Libor plus 500 bps, the high end of revised talk of Libor plus 475 bps to 500 bps and wide of initial talk of Libor plus 450 bps, according to a market source.

The term loan still has a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

The company’s now $380 million of credit facilities also include a $30 million revolver.

Recommitments were due at 11 a.m. ET on Thursday and the term loan freed to trade in the afternoon, with levels quoted at 99¼ bid, par offered, a trader added.

RBC Capital Markets and Jefferies LLC are leading the deal that 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.

Grosvenor tweaked, trades

Grosvenor Capital Management upsized its fungible incremental covenant-lite first-lien term loan B due February 2028 to $110 million from $85 million and set the original issue discount at 99.25, the tight end of the 98.75 to 99.25 talk, a market source said.

Pricing on the incremental term loan is Libor plus 250 bps with a 0.5% Libor floor, in line with existing term loan B pricing, and the debt has 101 soft call protection for six months.

On Thursday, the incremental term loan began trading, with levels quoted at 99 5/8 bid, par 1/8 offered, a trader added.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to repurchase certain fund investments and rights to future carry associated with Mosaic. The funds from the upsizing will reduce a revolver draw.

Closing is expected during the week of June 21.

Pro forma for the transaction, the first-lien term loan B will total $400 million.

Grosvenor Capital is a Chicago-based independent alternative asset management firm.

DRW upsizes, frees

DRW Holdings lifted its fungible senior secured incremental first-lien term loan (B1/BB-) due March 1, 2028 to $100 million from $75 million and firmed the original issue discount at 99.5, the tight end of the 99.25 to 99.5 talk, a market source remarked.

Like the existing term loan, the incremental term loan is priced at Libor plus 375 bps with a 0% Libor floor and has 101 soft call protection until Sept. 1.

Commitments continued to be due at noon ET on Thursday and the incremental term loan started trading in the afternoon, with levels quoted at 99¾ bid, par ¼ offered, another source added.

Jefferies LLC is leading the deal that will be used to increase trading capital and for general corporate purposes.

Pro forma for the transaction, the first-lien term loan will total $600 million.

DRW is a technology-driven electronic trading firm.

Forcepoint tightens, trades

Forcepoint modified the issue price on its fungible $55 million incremental first-lien term loan (B3/B-) due Jan. 8, 2028 to par from 99.75, according to a market source.

Pricing on the incremental term loan is Libor plus 450 bps with a 25 bps step-down at 4x first-lien gross leverage and a 0.5% Libor floor, in line with existing term loan pricing, and the debt has 101 soft call protection until July 8.

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

Credit Suisse Securities (USA) LLC is leading the deal that will be used to fund the acquisition of Deep Secure, a U.K.-based provider of cybersecurity products, and pay fees and expenses.

Closing is expected in August, subject to regulatory review and customary conditions.

Forcepoint is an Austin, Tex.-based provider of cybersecurity solutions.

Culligan frees up

Culligan’s $2 billion seven-year covenant-lite first-lien term loan B and $250 million delayed-draw covenant-lite term loan also broke, with levels quoted at 99¾ bid, par ¼ offered, a trader remarked.

Pricing on the term loan debt is Libor plus 400 bps with 25 bps step-downs at 0.5x and 1x inside closing first-lien net leverage 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. Delayed-draw term loan ticking fees are half the margin from days 46 to 90 and the full margin thereafter.

During syndication, pricing on the term loan debt was cut from talk in the range of Libor plus 425 bps to 450 bps, the discount was set at the tight end of the 99 to 99.5 talk and a requirement for quarterly lender calls was added.

The company’s $2.475 billion of senior secured credit facilities also include a $225 million five-year revolver.

Culligan being acquired

Proceeds from Culligan’s credit facilities will be used to fund the acquisition of a majority interest in the company by BDT Capital Partners LLC from Advent International and Centerbridge Partners LP. Advent will reinvest to acquire a minority stake in the business.

Morgan Stanley Senior Funding Inc. and Citigroup Global Markets Inc. are leading the deal.

Closing is expected in late July.

Culligan is a Rosemont, Ill.-based provider of water treatment products and services.

Osmose breaks

Osmose Utilities Services’ $810 million seven-year first-lien term loan (B2/B) began trading in the afternoon, with levels quoted at 99¾ bid, par ¼ offered, a market source said.

Pricing on the first-lien term loan is Libor plus 325 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 first-lien term loan was upsized from $760 million as the company’s privately placed second-lien term loan was downsized to $220 million from $270 million, pricing was reduced from talk in the range of Libor plus 350 bps to 375 bps and a 25 bps step-down at 0.5x inside closing date net first-lien secured leverage was removed.

Goldman Sachs Bank USA, RBC Capital Markets, UBS Investment Bank and Societe Generale are leading the deal that will 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 within the United States.

Orbcomm hits secondary

Orbcomm’s $360 million seven-year covenant-lite first-lien term loan freed to trade too, with levels quoted at 99¾ bid, par ¼ offered, according to a market source.

Pricing on the term loan is Libor plus 425 bps with a 0.75% 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 was lowered from talk in the range of Libor plus 450 bps to 475 bps and the discount was modified from 99.

The company’s $410 million of credit facilities (B3/B) also include a $50 million revolver.

Credit Suisse Securities (USA) LLC, Jefferies LLC, Truist and Citizens Bank are leading the deal that will be used with $796.6 million of equity to fund the buyout of the company by GI Partners for $11.50 in cash per outstanding share of common stock. The transaction is valued at $1.1 billion, including net debt.

Closing is expected in the second half of the year, subject to customary conditions, including approval by stockholders and the receipt of required regulatory approvals.

Orbcomm is a Rochelle Park, N.J.-based provider of Internet of Things (IoT) solutions.

Quantum tops par

Quantum Health’s $300 million covenant-lite first-lien term loan (B3/B-) due December 2027 emerged in the secondary market as well, with levels quoted at par 1/8 bid, par 5/8 offered, a market source remarked.

Pricing on the term loan is Libor plus 450 bps with a 25 bps step-down at 4x first-lien net leverage and a 0.75% Libor floor. The debt was issued at par and has 101 soft call protection for six months.

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.

Quantum Health is a Columbus, Ohio-based consumer health care navigation and care coordination company.

K-Mac updated

Back in the primary market, K-Mac Holdings set pricing on its $480 million first-lien term loan (B2/B-) at Libor plus 350 bps, the low end of the Libor plus 350 bps to 375 bps talk, and on its $105 million second-lien term loan (Caa2/CCC) at Libor plus 675 bps, the low end of the Libor plus 675 bps to 700 bps talk, according to a market source.

The first-lien term loan still has a 0.5% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, and the second-lien term loan still has a 0.5% Libor floor, a discount of 99.5 and hard call protection of 102 in year one and 101 in year two.

The company’s $645 million of credit facilities also include a $60 million revolver (B2/B-).

Commitments are due at noon ET on Friday, accelerated from an original deadline of noon ET on Wednesday, the source added.

BMO Capital Markets, Goldman Sachs Bank USA, KKR Capital Markets and RBC Capital Markets are leading the deal that will be used to help fund the buyout of the company by Mubadala Capital.

K-Mac is a Fort Smith, Ark.-based owner and operator of Taco Bell restaurants.

Burlington finalizes

Burlington Stores firmed pricing on its $961 million seven-year term loan B (BBB-) at Libor plus 200 bps, the low end of the Libor plus 200 bps to 225 bps talk, a market source remarked.

The term loan still has a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

JPMorgan Chase Bank is leading the deal that will be used to refinance an existing $961 million term loan B due November 2024.

Burlington Stores is a Burlington, N.J.-based discount retailer.

J.D. Power accelerated

J.D. Power moved up the commitment deadline for its $410 million incremental first-lien term loan and $40 million incremental second-lien term loan to noon ET on Monday from noon ET on Wednesday, a market source said.

Talk on the first-lien term loan is Libor plus 375 bps to 400 bps with a 0.5% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, and talk on the second-lien term loan is Libor plus 800 bps with a 0% Libor floor and a par issue price.

RBC Capital Markets and KKR Capital Markets are leading the deal, with RBC the left lead on the first-lien loan and KKR the left lead on the second-lien loan.

Proceeds will fund an acquisition and refinance a $100 million term loan B-1 put in place last year.

Currently, the company has a $1.212 billion first-lien term loan and a $415 million second-lien term loan, in addition to the term loan B-1 that is being refinanced.

J.D. Power, a Thoma Bravo portfolio company, is a Troy, Mich.-based provider of automobile transactional data, valuation tools, vehicle feature information and consumer analytics to the automotive industry.

Visual Comfort guidance

Visual Comfort held its lender call on Thursday morning and announced price talk on its $835 million seven-year covenant-lite first-lien term loan (B1/B) and $335 million eight-year covenant-lite second-lien term loan (Caa1/CCC+), according to a market source.

Talk on the first-lien term loan is Libor plus 375 bps to 400 bps with a 0.5% Libor floor and an original issue discount of 99.5, and talk on the second-lien term loan is Libor plus 700 bps to 725 bps with a 0.5% Libor floor and a discount of 99, the source said.

The first-lien term loan has 101 soft call protection for six months, and the second-lien term loan has call protection of 102 in year one and 101 in year two.

Commitments are due at 5 p.m. ET on June 30, the source added.

Visual Comfort leads

Deutsche Bank Securities Inc., Goldman Sachs Bank USA, Barclays, Credit Suisse Securities (USA) LLC, KeyBanc Capital Markets and Nomura are leading Visual Comfort’s term loans, with Deutsche the left lead on the first-lien loan and Goldman Sachs the left lead on the second-lien loan.

The new debt will be used to help fund a strategic investment in the company by Goldman Sachs Asset Management and Leonard Green & Partners LP alongside their existing investment partner, AEA Investors.

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

Visual Comfort is a Houston-based provider of decorative and functional lighting.

HCA comes to market

HCA launched without a call a $1 billion term loan B talked at Libor plus 175 bps with a 0% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months, a market source remarked.

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

BofA Securities Inc. is the left lead on the deal that will be used to refinance existing debt.

HCA is a Nashville, Tenn.-based health care services provider.

Focus Financial holds call

Focus Financial Partners held a lender call at 9 a.m. ET on Thursday to launch an $800 million seven-year first-lien term loan (BB-), of which $400 million is a delayed-draw tranche, at price talk of Libor plus 250 bps with a 0.5% Libor floor and an original issue discount of 99.5, according to a market source.

The term loan has 101 soft call protection for six months, and the delayed-draw term loan has a six-month availability period and a ticking fee of half the spread from days 46 to 90 and the full spread thereafter, the source continued.

The funded and delayed-draw term loans are being sold as a strip.

Commitments are due at noon ET on June 24, the source added.

RBC Capital Markets and Stone Point Capital Markets are leading the deal that will be used to fund acquisitions.

Focus Financial is a New York-based partnership of independent, fiduciary wealth management firms.

CentroMotion price talk

CentroMotion launched on its call its $545 million of first-lien term loans (B3/B) at talk of Libor plus 500 bps to 525 bps with a 0.5% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, a market source said.

The debt is split between a $420 million seven-year funded term loan and a $125 million delayed-draw term loan.

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

JPMorgan Chase Bank is leading the deal that will be used to fund the acquisition of Carlisle Brake & Friction, a manufacturer of friction materials and mechatronic solutions for off highway brake and transmission products, from Carlisle Cos. Inc., to repay debt and for general corporate purposes.

CentroMotion, a portfolio company of One Rock Capital Partners, is a Waukesha, Wis.-based designer and manufacturer of highly engineered components and systems for the industrial and transportation markets.

MedData proposed terms

MedData Inc. launched on its call its $230 million term loan B (B-) at talk of Libor plus 500 bps to 525 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.

KeyBanc Capital Markets is leading the deal that will be used to fund an acquisition and to refinance existing debt.

MedData is a Spring, Tex.-based provider of medical revenue cycle management services.

Unified Women’s launches

Unified Women’s Healthcare held its call in the afternoon, launching its fungible $235 million incremental first-lien term loan due Dec. 18, 2027 with original issue discount talk of 99 to 99.5, a market source remarked.

Pricing on the incremental term loan is Libor plus 425 bps with a 0.75% Libor floor.

Commitments are due at noon ET on June 29, the source added.

Barclays, Credit Suisse Securities (USA) LLC, BofA Securities Inc., RBC Capital Markets, Deutsche Bank Securities Inc. and Antares Capital are leading the deal that will be used to fund the acquisition of CCRM, a provider of fertility science, research and treatment, and to pay fees and expenses.

With this transaction, the company is requesting certain amendments from existing lenders to allow for the creation of a co-borrower structure with the initial borrower being Unified Women’s Healthcare LP and CCRM Management Co. LLC being added as a co-borrower following the acquisition.

Unified Women’s Healthcare is a Boca Raton, Fla.-based practice management platform in women’s health care.

WCG reveals talk

WCG Purchaser came out with original issue discount talk of 99 to 99.5 on its fungible $200 million incremental first-lien term loan due Jan. 8, 2027 that launched with a call in the morning, a market source said.

Pricing on the incremental term loan is Libor plus 400 bps with a 1% Libor floor.

Commitments are due at noon ET on June 24, the source added.

Barclays, Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc., BofA Securities Inc., Jefferies LLC, BMO Capital Markets, UBS Investment Bank, HSBC Securities (USA) Inc. and Golub are leading the deal, which will be used to fund an acquisition.

WCG is Princeton, N.J.-based provider of clinical trial optimization solutions.

United Talent on deck

United Talent Agency will hold a lender call at 12:30 p.m. ET on Friday to launch a $300 million term loan B (B2/B+) talked at Libor plus 375 bps to 400 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.

Commitments are due at noon ET on June 30, the source added.

JPMorgan Chase Bank is leading the deal that will be used to refinance existing debt, fund a distribution and add cash to the balance sheet.

United Talent is a talent and entertainment company.

BBB joins calendar

BBB Industries scheduled a lender call for 11 a.m. ET on Friday to launch a fungible $180 million incremental first-lien term loan, a market source remarked.

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.

Technimark readies loan

Technimark set a lender call for noon ET on Monday to launch a $460 million first-lien term loan, according to a market source.

The company is also getting a $170 million privately placed second-lien term loan and a $30 million privately placed delayed-draw second-lien term loan, the source said.

Goldman Sachs Bank USA, Wells Fargo Securities LLC, Antares Capital and MUFG are leading the deal that will be used to help fund the acquisition of a controlling stake in the company by Oak Hill Capital, forming a partnership with current investors, Pritzker Private Capital and management.

Closing is expected in the third quarter.

Technimark is an Asheboro, N.C.-based manufacturer of custom application medical, consumer packaged goods, and specialty industrial plastic components and value-added assemblies.

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