Micro Focus, Maravai, Simply Good break; Tropicana, Liberty Tire accelerate deadlines

By Sara Rosenberg

New York, Jan. 14 – Micro Focus International plc reduced the size of its U.S. term loan, increased the size of its euro term loan and firmed spreads on the tranches and then the debt made its way into the secondary market on Friday.

Also, Maravai LifeSciences (Maravai Intermediate Holdings LLC) finalized pricing on its term loan B at the low end of guidance before breaking for trading, and Simply Good Foods’ (Atkins Nutritional) first-lien term loan B freed up as well.

In more happenings, Tropicana (Naked Juice LLC) and Liberty Tire Recycling LLC (LTR Intermediate Holdings Inc.) accelerated the commitment deadlines for loan transactions.

Furthermore, Embecta Corp., East West Manufacturing and Dessert Holdings joined the near-term primary calendar.

Micro Focus revised

Micro Focus trimmed its U.S. five-year senior secured term loan B to $750 million from $1.1 billion and set pricing at SOFR+CSA plus 400 basis points, the high end of the SOFR+CSA plus 375 bps to 400 bps talk, according to a market source.

Also, the company lifted its euro five-year senior secured term loan B to €750 million from €442 million and finalized the spread at Euribor plus 400 bps, the low end of the Euribor plus 400 bps to 425 bps talk, the source said.

The U.S. term loan still has a 0.5% floor, an original issue discount of 99 and CSA of 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate, the euro term loan still has a 0% floor and a discount of 99.5, and both loans still have 101 soft call protection for one year.

Micro hits secondary

Recommitments for Micro Focus’ U.S. term loan were due at 11:30 a.m. ET on Friday and for its euro term loan were due at 10:30 a.m. ET, and the U.S. term loan broke for trading in the afternoon, with levels quoted at 99˝ bid, par offered, a trader added.

JPMorgan Chase Bank, HSBC, NatWest, Citigroup Global Markets Inc., BofA Securities Inc. and Goldman Sachs are leading the deal that will be used to a refinance a portion of an existing U.S. term loan B due June 2024 and a euro term loan B due June 2024, and to pay related fees and expenses.

Micro Focus is a Newbury, England-based enterprise software company.

Maravai updated, trades

Maravai LifeSciences firmed pricing on its $544 million senior secured covenant-lite term loan B due Oct. 19, 2027 (B1/B+) at SOFR plus 300 bps, the low end of the SOFR plus 300 bps to 325 bps talk, a market source remarked.

As before, the term loan has a 0.5% floor, a par issue price and 101 soft call protection for six months.

The term loan B freed to trade in during the session, with levels quoted at par 1/8 bid, par ˝ offered, a trader added.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to reprice an existing term loan B.

Closing is expected on Wednesday.

Maravai is a San Diego-based provider of life science reagents and services.

Simply Good breaks

Simply Good Foods’ $431.5 million first-lien term loan B due July 7, 2024 freed up as well, with levels quoted at par 3/8 bid, 101 offered, according to a market source.

Pricing on the term loan is SOFR+CSA plus 325 bps with a 0.5% floor and it was issued at par. The debt has 101 soft call protection for six months and CSA of 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

Barclays, Deutsche Bank Securities Inc., BMO Capital Markets and Goldman Sachs Bank USA are leading the deal that will be used to reprice an existing term loan B from Libor plus 375 bps with a 1% Libor floor.

Closing is expected during the week of Jan. 17.

Simply Good is a Denver-based developer, marketer and seller of nutritional foods and snacking products.

Tropicana accelerated

Back in the primary market, Tropicana moved up the commitment deadline for its $1.9 billion seven-year first-lien term loan, of which $150 million is a delayed-draw tranche, and $520 million eight-year second-lien term loan to 5 p.m. ET on Thursday from 5 p.m. ET on Jan. 25, a market source remarked.

Talk on the first-lien term loan is SOFR+10 bps CSA plus 375 bps with a 0.5% floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months, and talk on the second-lien term loan is SOFR+10 bps CSA plus 650 bps with a 0.5% floor, a discount of 99 and call protection of 102 in year one and 101 in year two.

Ticking fees on the first-lien delayed-draw term loan are half the margin from days 46 to 90 and the full margin thereafter.

Tropicana lead banks

Credit Suisse Securities (USA) LLC, BofA Securities Inc., Rabobank, Barclays, RBC Capital Markets, Citigroup Global Markets Inc., Jefferies LLC and SMBC are leading the deal, with Credit Suisse the left lead on the first-lien and BofA the left lead on the second-lien.

Proceeds will be used to help fund the acquisition of a 61% ownership stake by PAI Partners in juice brands, including Tropicana, Naked and Kevita, from PepsiCo Inc.

The sale will result in combined pre-tax cash proceeds of about $3.3 billion, and PepsiCo will retain a 39% non-controlling interest in the newly formed joint venture.

Liberty tweaks timing

Liberty Tire Recycling accelerated the commitment deadline for its fungible $150 million add-on green senior secured covenant-lite term loan B (B3/B) due May 7, 2028 to noon ET on Wednesday from 5 p.m. ET on Thursday, a market source said.

Pricing on the add-on term loan is Libor plus 450 bps with a 1% Libor floor and the debt is talked with an original issue discount of 98.57.

The add-on term loan and existing term loan are getting 101 soft call protection for six months.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to fund the acquisition of Rubberecycle, a Lakewood, N.J.-based manufacturer of rubber products.

Pro forma for the transaction, the term loan B will total $558 million.

Liberty Tire is a Pittsburgh-based provider of tire recycling services.

Embecta on deck

Embecta set a lender call for 10:30 a.m. ET on Tuesday to launch $1.65 billion of senior secured credit facilities (B+), according to a market source.

The facilities consist of a $500 million revolver and a $1.15 billion term loan B, the source said.

Morgan Stanley Senior Funding Inc., JPMorgan Chase Bank, Citigroup Global Markets Inc., Wells Fargo Securities LLC, MUFG, US Bank and BNP Paribas Securities Corp. are leading the deal that will be used with $500 million of other senior secured debt to fund the spin-off of the company from Becton, Dickinson and Co., to pay related transaction fees, expenses and original issue discount, and for general corporate purposes.

Closing is expected in the second quarter.

Embecta is a diabetes care company.

East West readies deal

East West Manufacturing will hold a lender call at 1 p.m. ET on Wednesday to launch $355 million of credit facilities (B-), a market source remarked.

The facilities consist of a $40 million revolver, a $275 million seven-year term loan B and a $40 million delayed-draw term loan, the source added.

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

KeyBanc Capital Markets, ING and TD Securities (USA) LLC are leading the deal that will be used to help fund the buyout of the company by MSD Partners.

East West is an Atlanta-based integrated design, manufacturing, and distribution services partner for original equipment manufacturers and distributors.

Dessert joins calendar

Dessert Holdings scheduled a lender call for 10:30 a.m. ET on Tuesday to launch $565 million of term loans, according to a market source.

The debt consists of a fungible $430 million incremental covenant-lite first-lien term loan and a fungible $135 million incremental covenant-lite second-lien term loan, the source said.

The company is also upsizing its revolver to $155 million.

Antares Capital, Barclays, BMO Capital Markets, Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., KKR Capital Markets, MUFG, Prospect Capital, RBC Capital Markets, SMBC and Stifel are leading the deal that will be used with incremental equity from Bain Capital to fund a strategic acquisition.

Pro forma for the transaction, the first-lien term loan will total about $830 million and the second-lien term loan will total $250 million.

Dessert Holdings is a St. Paul, Minn.-based desserts manufacturer.

MI Windows allocates

In other news, MI Windows and Doors Inc. (MIWD Holdco II LLC) allocated its $463.5 million term loan B (Ba3/BB/BB+) due December 2027 in the afternoon, a market source said.

Pricing on the term loan is SOFR+CSA plus 350 bps with a 0.5% floor and it was issued at par. The debt has 101 soft call protection for six months and CSA of 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

RBC Capital Markets is the left lead on the deal that will be used to reprice an existing term loan B from Libor plus 375 bps with a 0.75% Libor floor.

The existing term loan B is being paid down by $279 million to $463.5 million with a portion of the proceeds from a recently priced $500 million senior notes offering.

Closing is expected on Wednesday.

MI Windows is a Gratz, Pa.-based manufacturer of vinyl, aluminum and fiberglass windows and patio doors.

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