Carnival, KinderCare, TRC, End-User Computing, PointClickCare loans break for trading

By Sara Rosenberg

New York, April 19 – Carnival Corp. set the issue price on its term loans at the tight side of talk, and KinderCare Learning Cos. Inc. (Kuehg Corp.) firmed the issue price for net new money on its term loan B at the tight end of guidance, and then these deals freed to trade on Friday.

Also, TRC Cos. LLC (Energize Holdco) modified the original issue discount on its incremental first-lien term loan before breaking for trading, and deals from End-User Computing (Modena Buyer LLC) and PointClickCare Technologies Inc. made their way into the secondary market as well.

In more happenings, Ribbon Communications Inc. joined the near-term primary calendar with plans for a new term loan B that would refinance existing debt.

Carnival updated, frees

Carnival firmed the issue price on its $1 billion term loan due 2027 and $1.748 billion term loan due 2028 at par, the tight end of the 99.875 to par talk, a market source said.

As before, both term loans (BB+) are priced at SOFR plus 275 basis points with a 0.75% floor, and have 101 soft call protection for six months.

On Friday, the term loans broke for trading, with levels quoted at par 1/8 bid, par 3/8 offered, another source added.

JPMorgan Chase Bank is the left lead on the deal that will be used to reprice an existing 2027 term loan down from SOFR plus 300 bps with a 0.75% floor and an existing 2028 term loan down from SOFR plus 325 bps with a 0.75% floor.

With this transaction, the existing 2027 term loan is being paid down from $1.3 billion and the existing 2028 term loan is being down from $1.248 billion.

Carnival is a Miami-based cruise operator.

KinderCare finalized, breaks

KinderCare set the issue price on its $1.583 billion term loan B due June 12, 2030 (B2/B/BB) at par, compared to talk at launch of 99.75 to par for net new money and a par issue price for existing money, according to a market source.

Pricing on the term loan remained at SOFR plus 450 bps with a 0.5% floor, and the debt still has 101 soft call protection for six months.

During the session, the term loan made its way into the secondary market, with levels quoted at par 1/8 bid, par ½ offered, another source added.

Barclays is the left lead on the deal that will be used to reprice an existing term loan B down from SOFR plus 500 bps with a 0.5% floor.

KinderCare is a Lake Oswego, Ore.-based provider of private early childhood care and education.

TRC tweaked, trades

TRC changed the original issue discount on its fungible $210 million incremental first-lien term loan due December 2028 to 99.5 from 99.25, a market source remarked.

Pricing on the incremental term loan is SOFR+CSA plus 375 bps with a 0.5% floor, in line with existing first-lien term loan pricing.

Previously in syndication, the incremental term loan was upsized from $105 million.

Recommitments were due at 11 a.m. ET on Friday and the incremental term loan freed up in the afternoon, with levels quoted at 99¾ bid, par ¼ offered, another source added.

UBS Investment Bank, Golub Capital, Citizens Bank, KeyBanc Capital Markets, Mizuho, BofA Securities Inc., RBC Capital Markets and Santander are leading the deal that will be used to fully refinance the company’s existing second-lien term loan. Prior to the recent upsizing, the second-lien term loan was going to be partially refinanced.

TRC, backed by Warburg Pincus, is a Windsor, Conn.-based tech-enabled consulting firm focused on providing end-to-end engineering, science and technology solutions.

End-User hits secondary

End-User Computing’s $2.6 billion seven-year first-lien term loan broke for trading, with levels quoted at 98 1/8 bid, 98 5/8 offered, according to a market source.

Pricing on the term loan is SOFR plus 450 bps with a 25 bps leveraged based step-down and a 25 bps step-down upon an initial public offering. The debt has a 0% floor and 101 soft call protection for six months, and was sold at an original issue discount of 98.

During syndication, pricing on the term loan was increased from talk in the range of SOFR plus 400 bps to 425 bps and the discount widened from 98.5.

The company’s $2.86 billion of credit facilities (B2/B) also include a $260 million five-year revolver.

UBS Investment Bank, KKR Capital Markets, Jefferies LLC, Citigroup Global Markets Inc., Natixis, SMBC and Bank of Nova Scotia are leading the deal that will be used to help fund the buyout of the company by KKR from Broadcom Inc. in a transaction valued at about $4 billion.

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

End-User Computing is a Toledo, Ohio-based provider of digital workspace solutions.

PointClickCare breaks

PointClickCare’s $828.5 million term loan B due December 2027 began trading as well, with levels quoted at par 1/8 bid, par 5/8 offered, a market source said.

Pricing on the term loan is SOFR plus 300 bps with no CSA and a 0.75% floor, and it was issued at par. The loan has 101 soft call protection for six months.

Proceeds will be used to reprice an existing $392 million incremental term loan B due December 2027 and an existing $436.5 million term loan B due December 2027, which are being merged into one tranche.

During syndication, the repricing of the $436.5 million term loan was added to the transaction, the ARRC CSA of 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate was removed from the term loans, and the issue price on the $392 million term loan repricing firmed at the tight end of the 99.875 to par talk.

JPMorgan Chase bank is the left lead on the deal.

PointClickCare, with headquarters in Canada, is a cloud-based health care software provider.

Ribbon on deck

Ribbon Communications set a lender meeting for 2 p.m. ET on Wednesday to launch a $350 million six-year term loan B (B-), according to a market source.

The term loan has hard call protection of 102 in year one and 101 in year two, the source added.

Citizens Bank is leading the deal that will be used to refinance existing debt.

Ribbon is a Plano, Tex.-based provider of communications technology to service providers and enterprises.

Spring readies allocations

Spring Education Group plans on allocating on Monday its $848 million covenant-lite first-lien term loan due October 2030, a market source remarked.

Pricing on the term loan is SOFR plus 400 bps with a 0% floor, an original issue discount of 99.75 for new money and an issue price of par for existing lenders.

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

Commitments were scheduled to be due at noon ET on Friday.

Macquarie Capital (USA) Inc. is leading the deal that will be used to reprice the company’s existing term loan down from SOFR plus 450 bps with a 25 bps step-down tied to total net opco leverage and a 0% floor.

Spring Education, backed by Primavera Capital, is a Campbell, Calif.-based private pre-K through 12th grade school operator.

Fund flows

In other news, actively managed loan fund flows on Thursday were positive $30 million and loan ETFs were negative $112 million, a market source said.

Loan funds reported weekly inflows totaling $153 million, with positive $20 million ETFs, the source added. These were a seventeenth consecutive inflow for the asset class, although their lightest in 10 weeks.

Inflows for loan funds in 2024 total $5.6 billion, with positive $5.3 billion ETFs.

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