Medline accelerates deadline; Trace3 price talk surfaces; new issue calendar builds

By Sara Rosenberg

New York, Sept. 27 – In the primary market on Monday, Medline Industries moved up the commitment deadline for its term loans, and Trace3 (Escape Velocity Holdings Inc.) announced price talk on its loan transaction with launch.

Also, Castlelake Aviation Ltd., Florida Food Products, IMA Financial Group, Petmate, Specialty Building Products Holdings LLC, Gulf Finance LLC, Oregon Tool, Conduent, ExamWorks and American Tire Distributors Inc. joined this week’s calendar.

Medline tweaks timing

Medline accelerated the commitment deadline for its $6 billion seven-year term loan and $1 billion equivalent euro seven-year term loan to noon ET on Wednesday from noon ET on Thursday, a market source said.

The U.S. term loan is talked at Libor plus 350 basis points to 375 bps with a 0.5% Libor floor and an original issue discount of 99 to 99.5, and the euro term loan is talked at Euribor plus 350 bps to 375 bps with a 0% floor and a discount of 99 to 99.5. Both term loans have 101 soft call protection for six months.

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.

Medline being acquired

Proceeds from Medline’s term loans (B1/B+/BB-) will be used with $3.77 billion of secured notes, $4 billion of senior notes, $2.23 billion of other secured mortgage debt and an equity contribution to 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.

Trace3 sets guidance

Trace3 held its lender call at 10 a.m. ET on Monday and, shortly before the call began, price talk on its $415 million seven-year first-lien term loan (B3/B) was announced at Libor plus 425 bps to 450 bps with a 0.5% Libor floor and an original issue discount of 99, according to a market source.

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

Commitments are due at 5 p.m. ET on Oct. 6.

The company’s $700 million of credit facilities also include a $150 million ABL revolver and a $135 million privately placed second-lien term loan.

Credit Suisse Securities (USA) LLC, Jefferies LLC and Wells Fargo Securities LLC are leading the deal that will be used to help fund the buyout of the company by American Securities from H.I.G. Capital.

Trace3 is an Irvine, Calif.-based technology solutions partner to enterprise and mid-market customers.

Castlelake readies loan

Castlelake Aviation set a lender call for 10 a.m. ET on Tuesday to launch a $1.18 billion senior secured term loan B, according to a market source.

Morgan Stanley Senior Funding Inc. is the left lead on the deal that will be used with $420 million of other unsecured debt to refinance existing debt, capitalize the new corporate Castlelake entity, and pay related fees and expenses.

Castlelake Aviation is a newly-formed Ireland-based aircraft leasing company wholly-owned by affiliates of Castlelake LP.

Florida Food on deck

Florida Food Products scheduled a lender call for Tuesday to launch $450 million of term loans, split between a $350 million seven-year first-lien term loan (B2/B-) and a $100 million eight-year second-lien term loan (Caa2/CCC), a market source said.

Talk on the first-lien term loan is Libor plus 425 bps to 450 bps with a 0.5% 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 0.5% Libor floor, a discount of 98 and hard call protection of 102 in year one and 101 in year two, the source added.

JPMorgan Chase Bank is leading the deal that will be used to help fund the buyout of the company by Ardian from MidOcean Partners for an enterprise value in excess of $1 billion. MidOcean will retain a significant stake in the company.

Closing is expected in the fourth quarter.

Florida Food is a Eustis, Fla.-based producer of vegetable and fruit-based clean label ingredients.

IMA joins calendar

IMA Financial Group will hold a lender call on Tuesday to launch a $530 million term loan, according to a market source.

BMO Capital Markets, JPMorgan Chase Bank, Citigroup Global Markets Inc. and U.S. Bank are leading the deal that will be used to refinance about $250 million of existing debt and fund acquisitions under letters-of-intent.

IMA Financial is an insurance brokerage firm.

Petmate coming soon

Petmate emerged with plans to hold a lender call on Tuesday to launch $680 million of term loans, a market source remarked.

The debt consists of a $525 million first-lien term loan and a $155 million second-lien term loan, the source added.

BMO Capital Markets, Jefferies LLC, Antares Capital and KKR Capital Markets are leading the deal that will be used to help fund the buyout of the company by Platinum Equity.

Petmate is an Arlington, Tex.-based manufacturer of pet products.

Specialty Building on deck

Specialty Building Products set a lender call for 11 a.m. ET on Tuesday to launch an $800 million seven-year first-lien term loan B (B2/B-), according to a market source.

Barclays is leading the deal that will be used to fund the acquisition of Reeb Millwork Corp. and another acquisition that is currently under a letter-of-intent.

Closing on the Reeb transaction is expected before the end of October, subject to customary conditions.

Specialty Building is a Duluth, Ga.-based distributor of branded specialty building products. Reeb is a Bethlehem, Pa.-based fabricator and supplier of interior and exterior doors.

Gulf Finance amend, extend

Gulf Finance will hold a lender call at 3 p.m. ET on Wednesday to launch a $1,051,129,886 senior secured term loan B amendment and extension, a market source said.

The company is looking to extend its term loan B maturity by three years alongside an equity contribution and term loan repayment of about $325 million.

Morgan Stanley Senior Funding Inc. is the left lead on the deal.

Gulf Finance is a refined products terminaling, storage and logistics business and a distributor of petroleum products.

Oregon Tool readies deal

Oregon Tool scheduled a lender call for 11 a.m. ET on Tuesday to launch an $800 million seven-year term loan B, according to a market source.

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

BofA Securities Inc., JPMorgan Chase Bank, Goldman Sachs Bank USA, Jefferies LLC and Houlihan Lokey are leading the deal that will be used to help fund the buyout of the company by Platinum Equity from American Securities and P2 Capital.

Closing is expected in the fourth quarter.

Oregon Tool is a Portland, Ore.-based manufacturer and distributor of aftermarket-driven professional grade cutting tools, outdoor equipment accessories and parts.

Conduent joins calendar

Conduent set a lender call for 1 p.m. ET on Tuesday to launch a $515 million seven-year term loan B, a market source remarked.

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

BofA Securities Inc. and Citigroup Global Markets Inc. are leading the deal that will be used to help refinance the company’s existing capital structure.

Conduent is a provider of business process services.

ExamWorks plans call

ExamWorks will hold a lender call at noon ET on Tuesday to launch a $1.7 billion seven-year first-lien term loan (B), according to a market source.

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

The company is also getting a $540 million privately placed second-lien term loan.

BofA Securities Inc., Goldman Sachs Bank USA, Barclays, Deutsche Bank Securities Inc., Truist, Nomura, Jefferies LLC, BNP Paribas Securities Corp. and Societe Generale are leading the deal that will be used to help fund the buyout of the company by CVC Capital Partners. The company’s current owners, Leonard Green & Partners LP and GIC, will retain significant equity stakes in the business.

Closing is expected this year, subject to customary conditions and receipt of required regulatory approvals.

ExamWorks is an Atlanta-based provider of independent medical examinations, peer reviews, bill reviews, Medicare compliance, record retrieval, document management and related services.

American Tire on deck

American Tire Distributors set a lender call for Tuesday to launch its $1 billion seven-year term loan B (/B-/B-), a market source said.

The lender call was originally planned for last week, but was delayed.

BofA Securities Inc., Wells Fargo Securities LLC and Citigroup Global Markets Inc. are leading the deal that will be used to refinance existing debt.

American Tire is a Huntersville, N.C.-based tire distributor.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.