Medline, Mold-Rite, AOC, SonicWall, Oryx, Xplornet, Jack Entertainment free to trade

By Sara Rosenberg

New York, Sept. 30 – Medline Industries firmed the size of its U.S. term loan and the original issue discount on its euro term loan, Mold-Rite Plastics LLC (Valcour Packaging LLC) set the spread on its second-lien term loan at the high end of guidance and made some changes to documentation, and AOC LLC updated spread and issue price on its term loan B, and then these deals freed up on Thursday.

Also, SonicWall Inc. finalized the original issue discount on its incremental first-lien term loan at the wide side of guidance before breaking for trading, and deals from Oryx Midstream Services Permian Basin LLC, Xplornet Communications Inc. and Jack Entertainment LLC (Jack Ohio Finance LLC) emerged in the secondary market as well.

In more happenings, Mitchell International Inc. and Medical Solutions accelerated the commitment deadlines for their term loans, and Restoration Hardware Inc., Cloudmed, All My Sons and Wells Enterprises Inc. announced price talk with launch.

Medline finalized

Medline Industries set its U.S. seven-year term loan at $7.27 billion, up from a revised amount of $6.5 billion and an initial amount of $6 billion, according to a market source. On Wednesday, it was revealed that the company was shifting $1.5 billion out of its unsecured notes offering to its senior secured notes offering and U.S. term loan B, with the final split to be determined, so the term loan was expected to end up north of $7 billion.

Also, the company firmed the original issue discount on its $500 million equivalent euro seven-year term loan at 99.75, the tight end of revised talk of 99.5 to 99.75 and tighter than initial talk of 99 to 99.5, the source said.

The U.S. term loan is priced at Libor plus 325 basis points with a 25 bps step-down at 4.25x net secured leverage, a 0.5% Libor floor and an original issue discount of 99.5., and the euro term loan is priced at Euribor plus 350 bps with a two 25 bps step-downs at 4.25x net secured leverage and 3.75x net secured leverage, and a 0% floor.

Both term loans have 101 soft call protection for six months.

Previously in syndication, pricing on the U.S. term loan was cut from talk in the range of Libor plus 350 bps to 375 bps, one step-down was removed and the discount finalized at the tight end of the 99 to 99.5 talk, and the euro term loan was downsized from $1 billion equivalent, pricing firmed at the low end of the Euribor plus 350 bps to 375 bps talk and one step-down was removed.

Medline frees up

On Thursday, Medline’s bank debt made its way into the secondary market, with the U.S. term loan quoted at 99 7/8 bid, par 3/8 offered by late day, a trader added.

BofA Securities Inc., Goldman Sachs Bank USA, JPMorgan Chase Bank, Barclays, Morgan Stanley Senior Funding Inc., MUFG, BMO Capital Markets, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., Jefferies LLC, Macquarie Capital (USA) Inc., UBS Investment Bank, Wells Fargo Securities LLC, Bank of the West, BNP Paribas Securities Corp., Credit Suisse Securities (USA) LLC, Mizuho, Nomura, RBC Capital Markets, Santander, Truist, ING, Societe Generale, Sumitomo, Bank of Nova Scotia and TD Securities (USA) LLC are leading the deal.

Proceeds will be used with $2.5 billion of unsecured notes, down from $4 billion originally, and $4.5 billion of senior secured notes, up from $3.77 billion originally, to help fund the buyout of the company by Blackstone, Carlyle and Hellman & Friedman.

Closing is expected late this year, subject to regulatory approvals and customary conditions.

Medline is a Northfield, Ill.-based manufacturer and distributor of health care supplies to hospitals, post-acute settings, physician offices and surgery centers.

Mold-Rite updated

Mold-Rite firmed pricing on its $160 million eight-year covenant-lite second-lien term loan (Caa2/CCC) at Libor plus 700 bps, the high end of the Libor plus 675 bps to 700 bps talk, and left the 0.5% Libor floor, original issue discount of 99 and call protection of 102 in year one and 101 in year two unchanged, a market source said. The company also added a quarterly lender calls requirement to its second-lien term loan and $420 million seven-year covenant-lite first-lien term loan (B2/B-), removed all step-downs and the corresponding restricted payment basket for dividends made with retained asset sale proceeds from the asset sale sweep, and reduced the look-forward period to 24 months for pro forma synergies and cost savings addback, the source continued.

The first-lien term loan is priced at Libor plus 375 bps with a 0.5% Libor floor and a discount of 99.5, and has 101 soft call protection for six months.

Earlier in syndication, the first-lien term loan was upsized from $400 million, pricing was trimmed from Libor plus 400 bps and the discount was tightened from 99.

Mold-Rite hits secondary

Recommitments for Mold-Rite’s term loans were due at noon ET on Thursday, and the debt began trading later in the day, with the first-lien term loan quoted at par bid, par ¼ offered and the second-lien term loan quoted at par bid, 101 offered, another source added.

Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC and BMO Capital Markets are leading the deal that will be used to help fund the buyout of the company by Clearlake Capital Group LP from Irving Place Capital.

The equity contribution for the transaction was reduced due to the recent first-lien term loan upsizing.

Mold-Rite is a Plattsburgh, N.Y.-based manufacturer of packaging components.

AOC revised, trades

AOC firmed pricing on its $1.26 billion seven-year term loan B at Libor plus 375 bps, the low end of the Libor plus 375 bps to 400 bps talk, and tightened the original issue discount to 99.5 from 99, a market source remarked.

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

The company’s $1.46 billion of credit facilities (B1/B) also include a $200 million revolver.

In the afternoon, the term loan B broke for trading, with levels quoted at 99¾ bid, par 1/8 offered, another source added.

BofA Securities Inc., RBC Capital Markets, BNP Paribas Securities Corp., Citigroup Global Markets Inc. and Goldman Sachs Bank USA are leading the deal that will be used with $350 million of senior notes to help fund the buyout of the company by Lone Star Funds from CVC Capital Partners.

AOC is a Schiphol, Netherlands-based producer of specialty resins.

SonicWall firms, breaks

SonicWall set the original issue discount on its fungible $185 million incremental first-lien term loan (B2/B-) due May 2025 at 99, the wide end of the 99 to 99.5 talk, according to a market source.

The original issue discount on the fungible $25 million incremental second-lien term loan (Caa2/CCC+) due May 2026 finalized up at 99.01, versus talk at launch of 99, the source said.

The incremental first-lien term loan is priced at Libor plus 375 bps with a 0.5% Libor floor and has 101 soft call protection for six months, and the incremental second-lien term loan is priced at Libor plus 750 bps with a 0% Libor floor.

During the session, the debt began trading, with the incremental first-lien term loan quoted at 99 1/8 bid, 99½ offered and the incremental second-lien term loan quoted at 99 bid, par offered, another source added.

UBS Investment Bank and Truist are leading the deal that will be used to fund a cash distribution to shareholders.

SonicWall, backed by Francisco Partners and Evergreen Coast Capital, is a Milpitas, Calif.-based provider of network security.

Oryx tops OID

Oryx Midstream Services’ $1.6 billion seven-year senior secured term loan B broke for trading, with levels quoted at 99 7/8 bid, par ¼ offered, a market source remarked.

Pricing on the 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 loan has 101 soft call protection for six months.

During syndication, the term loan was upsized from $1.5 billion, pricing was lowered from Libor plus 350 bps and the discount firmed at the tight end of the 99 to 99.5 talk.

Barclays, RBC Capital Markets, Goldman Sachs Bank USA, Truist and Wells Fargo Securities LLC are leading the deal that will be used to refinance existing debt, and fund working capital needs and other general corporate purposes.

Closing is expected during the week of Oct. 4.

Oryx Midstream is a Midland, Tex.-based midstream crude operator in the Permian Basin.

Xplornet frees up

Xplornet’s bank debt hit the secondary market as well, with the $995 million seven-year first-lien term loan quoted at 99¾ bid, par 1/8 offered, according to a market source.

Pricing on the first-lien term loan is Libor plus 400 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

The company’s is also getting a $200 million eight-year second-lien term loan priced at Libor plus 700 bps with a 0.5% Libor floor and issued at a discount of 99. This tranche has hard call protection of 102 in year one and 101 in year two.

During syndication, the first-lien term loan was increased from $920 million and pricing firmed at the low end of the Libor plus 400 bps to 425 bps talk, the second-lien term loan was decreased from $275 million and the spread was set at the high end of the Libor plus 675 bps to 700 bps talk, and changes were made to documentation.

Barclays is the left lead on the deal that will be used to finance the acquisition of spectrum, fund a tuck-in acquisition and refinance an existing first-lien term loan.

Xplornet, a Woodstock, N.B.-based broadband service provider, expects to close on the loans on Friday.

Jack starts trading

Jack Entertainment’s $250 million seven-year covenant-lite first-lien term loan freed to trade too, with levels quoted at par bid, par ½ offered, a market source said.

Pricing on the term loan is Libor plus 475 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 500 bps to 525 bps and the discount was changed from 99.

The company’s $275 million of credit facilities (B2/B-) also include a $25 million revolver.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs Bank USA and KeyBanc Capital Markets are leading the deal that will be used to refinance existing debt, to fund a shareholder distribution and for general corporate purposes.

Jack Entertainment is a Cleveland-based regional gaming operator.

Mitchell tweaks timing

Back in the primary market, Mitchell International accelerated the commitment deadline for its $2.475 billion seven-year first-lien term loan B (B2/B-) and $525 million eight-year second-lien term loan (Caa2/CCC) to the close of business on Thursday from Friday, a market source remarked. Allocations are expected on Friday.

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 and 101 soft call protection for six months that resets upon a permitted change of control, and talk on the second-lien term loan is Libor plus 650 bps to 675 bps with a 0.5% Libor floor, a discount of 99 and call protection of 102 in year one and 101 in year two.

Goldman Sachs Bank USA, KKR Capital Markets, SPC, Barclays, BofA Securities Inc., Wells Fargo Securities LLC, Golub, Truist, Citizens and Stifel are leading the deal, with Goldman left on the first-lien loan and KKR left on the second-lien loan.

The loans will be used with cash on the balance sheet to refinance debt and pay a dividend to shareholders.

Mitchell is a San Diego-based provider of claims software and technology-enabled solutions to the workers’ compensation and auto insurance industries.

Medical Solutions accelerated

Medical Solutions moved up the commitment deadline for its $1 billion first-lien term loan and $200 million first-lien delayed-draw term loan to 5 p.m. ET on Tuesday from Oct. 7, a market source said.

Talk on the first-lien term loan debt (B1/B) is 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.

The company is also getting a $320 million privately placed second-lien term loan (Caa1/CCC+).

UBS Investment Bank, Jefferies LLC, Goldman Sachs Bank USA, Wells Fargo Securities LLC, MUFG, Citizens Bank, KeyBanc Capital Markets, TD Securities (USA) LLC and SMBC are leading the deal that will be used to help fund the buyout of the company by Centerbridge Partners LP and Caisse de depot et placement du Quebec from TPG Growth.

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

Medical Solutions is an Omaha-based provider of total workforce solutions in the health care industry.

Restoration guidance

Restoration Hardware held its call on Thursday afternoon and announced price on its $1.5 billion seven-year term loan B (Ba2/BB) at Libor plus 275 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.

Commitments are due at 5 p.m. ET on Oct. 14, the source added.

BofA Securities Inc. is the left lead on the deal that will be used to refinance convertible notes and for general corporate purposes.

Restoration Hardware, which does business as RH, is a Corte Madera, Calif.-based upscale home furnishings company.

Cloudmed proposed terms

Cloudmed came out with talk of Libor plus 425 bps to 450 bps with a 25 bps step-down upon a qualified initial public offering, a 0.5% Libor floor, a par issue price and 101 soft call protection for six months on its $637 million first-lien term loan due October 2027 that launched with a call in the morning, a market source said.

Commitments are due at noon ET on Oct. 7, the source added.

Goldman Sachs Bank USA is the left lead on the deal, which will be used to reprice an existing term loan down from Libor plus 500 bps with a 0.75% Libor floor.

Cloudmed, formerly known as Revint, is an Atlanta-based provider of end-to-end revenue integrity solutions that identify and recover unidentified or underpaid revenue on behalf of health care systems.

All My Sons launches

All My Sons held its call in the afternoon, launching its $290 million first-lien term loan at talk of Libor plus 425 bps with a 0.75% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months, according to a market source.

Commitments are due on Oct. 15.

The company’s $455 million of senior secured credit facilities also include a $50 million revolver and a $115 million privately placed second-lien term loan.

Antares Capital and Golub Capital are leading the deal that will be used to support a recapitalization of the company by Golden Gate Capital in partnership with the founder and management team.

All My Sons is a Carrollton, Tex.-based provider of residential moving and related services.

Wells Enterprises talk

Wells Enterprises launched on its morning call its fungible $100 million add-on term loan with original issue discount talk of 99.27 to 99.5, a market source remarked.

Pricing on the add-on term loan is Libor plus 300 bps with a ratings-based step-down to Libor plus 275 bps and a 0% Libor floor.

The add-on term loan has 101 soft call protection for six months, the source added.

Commitments are due at noon ET on Oct. 14.

BMO Capital Markets is leading the deal that will be used to refinance existing debt and for general corporate purposes.

Wells Enterprises is a Le Mars, Iowa-based ice cream and frozen treat manufacturer.

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