Waystar breaks for trading; GEON Performance updates surface; Western Dental tweaks deadline

By Sara Rosenberg

New York, Aug. 9 – Waystar modified the original issue discount on its add-on term loan and then the debt made its way into the secondary market on Monday.

In more happenings, GEON Performance Solutions LLC increased the size of its term loan B, reduced the spread, added a step-down, tightened the original issue discount and made some changes to documentation, and Western Dental (Premier Dental Services Inc.) accelerated the commitment deadline for its term loan B.

Also, MultiPlan Inc., Sylvamo Corp., Motel 6, Radiology Partners Inc., Veritas Technologies, PetVet Care Centers LLC and Wheel Pros Inc. released price talk with launch, and Kenan Advantage Group Inc., 8th Avenue Food & Provisions Inc. and Taboola joined this week’s primary calendar.

Waystar tightens, frees

Waystar revised the original issue discount on its fungible $247 million add-on term loan to 99.25 from talk in the range of 98.78 to 99, according to a market source.

The add-on term loan is priced at Libor plus 400 basis points with a 0% Libor floor, in line with the existing term loan.

Recommitments were due at noon ET on Monday and the add-on term loan freed to trade in the afternoon, with levels quoted at 99 5/8 bid, par offered, another source added.

JPMorgan Chase Bank, Deutsche Bank Securities Inc. and Barclays are leading the deal that will be used to fund the acquisition of Patientco, a provider of omnichannel patient payments, communications and engagement software.

Closing is subject to regulatory approval and customary closing conditions.

Waystar, backed by EQT, Canada Pension Plan Investment Board and Bain Capital, is a provider of healthcare payments software.

GEON reworked

GEON Performance Solutions raised its seven-year term loan B to $630 million from $600 million, trimmed pricing to Libor plus 475 bps from Libor plus 500 bps, added a 25 bps pricing step-down at 3.75x first-lien net leverage and adjusted the original issue discount to 99.25 from 99, according to a market source.

Also, the MFN sunset was extended to 24 months from 12 months, the MFN carveout was reduced to 50% EBITDA from 100% and the acquisition carveout was removed, quarterly lender calls were added, the inside maturity basket was removed, the free-and-clear basket was reduced to 75% EBITDA from 100%, and the “no worse than” debt incurrence for first-lien, second-lien and unsecured was eliminated, the source continued.

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

The company’s now $690 million of credit facilities (B2/B+) also include a $60 million five-year revolver.

Recommitments are due at 10 a.m. ET on Tuesday and allocations are expected late in that day, the source added.

GEON lead banks

HSBC Securities (USA) Inc., Morgan Stanley Senior Funding Inc. and KeyBanc Capital Markets are leading GEON Performance’s credit facilities.

The credit facilities will be used with cash on hand to refinance existing debt and fund a one-time special distribution to shareholders, which was increased to $190 million from $160 million with the term loan upsizing.

Pro forma net leverage is 4.3x, up from 4.1x initially.

Closing is expected late in the week of Aug. 16.

GEON Performance is a Westlake, Ohio-based provider of plastic compounded solutions.

Western Dental accelerated

Western Dental moved up the commitment deadline for its $490 million seven-year term loan B (B3/B-) to end of day on Tuesday from noon ET on Thursday, a market source remarked.

Talk on the term loan is Libor plus 475 bps with a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

KKR Capital Markets is the left lead on the deal that will be used to refinance existing term loans.

Western Dental is an Orange, Calif.-based dental services organization.

MultiPlan proposed terms

MultiPlan held its call on Monday afternoon and announced talk on its $1.6 billion seven-year term loan B at Libor plus 400 bps to 425 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 10 a.m. ET on Aug. 17, the source added.

Goldman Sachs Bank USA, Barclays, Citigroup Global Markets Inc., BofA Securities Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and UBS Investment Bank are leading the deal that will be used with $775 million of other secured debt to refinance an existing $2.341 billion term loan G and pay transaction related fees and expenses.

MultiPlan is a New York-based provider of health care cost management solutions.

Sylvamo sets talk

Sylvamo released price talk of Libor plus 275 bps to 300 bps with a 0.5% Libor floor and an original issue discount of 99 to 99.5 on its $500 million seven-year term loan B (Ba1/BB+) that launched with an afternoon call, a market source said.

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

Commitments are due at noon ET on Aug. 19, the source added.

BofA Securities Inc. is leading the deal, which will be used to help fund the spinoff of the company from International Paper.

Sylvamo is a Memphis, Tenn.-based printing papers company.

Motel 6 comes to market

Motel 6 hosted a lender call at 2 p.m. ET to launch a $300 million five-year term loan B (B2) talked at Libor plus 525 bps to 550 bps with a 1% Libor floor, an original issue discount of 98 and hard call protection of 102 in year one and 101 in year two, a market source remarked.

Commitments are due on Aug. 18, the source added.

Goldman Sachs Bank USA is leading the deal that will be used to refinance existing debt.

Motel 6 is a Carrollton, Tex.-based economy lodging company.

Radiology guidance

Radiology Partners launched on its afternoon call its $300 million incremental first-lien term loan due July 9, 2025 at talk of Libor plus 425 bps with a 0% Libor floor and an original issue discount of 98.5 to 99.27, according to a market source.

The spread and floor on the incremental term loan match pricing on the existing term loan, and the fungibility threshold for the incremental term loan is 99.27 original issue discount, the source said.

The incremental term loan and the existing term loan are getting 101 soft call protection for six months.

Commitments are due at noon ET on Thursday.

Barclays is leading the deal that will be used to fund three near-term acquisitions under letters of intent, with an aggregate purchase price of about $362 million, which are expected to close this month.

With the transaction, the company is seeking an amendment to revise certain investment baskets and the definition of consolidated EBITDA to align with the Practice’s indentures, the source added.

Lenders are being offered a 12.5 bps consent fee for the amendment.

Radiology Partners is an El Segundo, Calif.-based radiology physician practice management company.

Veritas launches

Veritas Technologies held a call at 10 a.m. ET, launching a fungible $450 million equivalent U.S. and euro add-on term loan (B-) due September 2025 with original issue discount talk of 99.25 to 99.5, a market source said.

The U.S. add-on term loan is priced at Libor plus 500 bps with a 1% Libor floor and pricing on the euro add-on term loan is Euribor plus 475 bps with a 1% floor, in line with existing pricing.

Sizes of the U.S. and euro add-on term loan tranches are still to be determined.

BofA Securities Inc. is leading the deal that will be used to redeem 10½% notes due 2024.

Veritas is a Santa Clara, Calif.-based provider of data protection and availability.

PetVet holds call

PetVet surfaced in the morning with plans to hold a lender call at 4 p.m. ET on Monday to launch a fungible $250 million incremental first-lien term loan B-3 due February 2025 talked with an original issue discount of 99.265, according to a market source.

Like the existing term loan B-3, the incremental term loan is priced at Libor plus 350 bps with a 0.75% Libor floor.

Commitments are due at 4 p.m. ET on Thursday, the source added.

Jefferies LLC and KKR Capital Markets are leading the deal that will be used to fund the company’s acquisition pipeline.

Pro forma for the transaction, the term loan B-3 will total about $919 million.

PetVet is a Westport, Conn.-based operator of general practice and specialty veterinary hospitals for companion animals.

Wheel Pros talk

Wheel Pros came out with original issue discount talk of 99.5 on its fungible $175 million incremental first-lien term loan due May 2028 shortly before its 10 a.m. ET lender call began, a market source remarked.

Pricing on the incremental term loan is Libor plus 450 bps with a 0.75% Libor floor, in line with existing term loan pricing.

Commitments are due at noon ET on Thursday.

Deutsche Bank Securities Inc. is leading the deal that will be used to fund acquisitions.

Wheel Pros is a Denver-based designer, manufacturer and distributor of proprietary branded aftermarket vehicle enhancements for light trucks, SUVs, passenger cars and ATVs/UTVs.

Kenan readies deal

Kenan Advantage Group will hold a lender call at 11 a.m. ET on Tuesday to launch $400 million of term loans, according to a market source.

The debt is split between a $100 million incremental first-lien term loan (B2/B-) and a $300 million six-year second-lien term loan (Caa2/CCC), the source said.

Commitments are due at noon ET on Aug. 17.

KeyBanc Capital Markets LLC is the left lead on the first-lien term loan, and Barclays is the left lead and administrative agent on the second-lien term loan.

The loans will be used to refinance the company’s existing senior notes due 2023.

Kenan Advantage is a North Canton, Ohio-based provider of liquid bulk transportation services to the fuels, chemicals, liquid foods and merchant gas markets.

8th Avenue on deck

8th Avenue Food & Provisions set a lender call for 11 a.m. ET on Tuesday to launch a $125 million incremental first-lien term loan due Oct. 1, 2025, a market source said.

Commitments are due at noon ET on Aug. 17, the source added.

Barclays is leading the deal that will be used to repay revolver drawings, which were used to finance a portion of the acquisition of Ronzoni, and for working capital needs and general corporate purposes.

8th Avenue Food is a Brentwood, Mo.-based consumer products holding company.

Taboola coming soon

Taboola scheduled a lender call for 10 a.m. ET on Wednesday to launch a $300 million seven-year term loan B talked at Libor plus 375 bps to 400 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 Aug. 17, the source added.

JPMorgan Chase Bank and Credit Suisse Securities (USA) LLC are leading the deal that will be used with cash on hand and the issuance of ordinary shares to the seller to fund the acquisition of Connexity from Symphony Technology Group for about $800 million.

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

Taboola is a New York-based platform that powers recommendations for the open web. Connexity is a Santa Monica, Calif.-based e-Commerce media platforms.

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