BrightSpring, Wrench, PlayCore, Interstate free to trade; Global Healthcare, Vestis updated

By Sara Rosenberg

New York, Feb. 14 – BrightSpring Health Services Inc. (Phoenix Guarantor Inc.) firmed pricing on its first-lien term loan B at the wide end of guidance, and Wrench Group LLC set the original issue discount on its first-lien term loan at the tight end of guidance, and then both of these deals broke for trading on Wednesday.

Also, before freeing up, PlayCore increased the size of its term loan B, and Interstate Waste Services Inc. upsized its add-on term loan and modified the issue price.

In more happenings, Global Healthcare Exchange LLC raised the size of its term loan B, lowered pricing and firmed the issue price at the midpoint of talk, and Vestis Corp. finalized the spread on its term loan B at the low end of guidance, added a step-down and tightened the original issue discount.

Additionally, Constant Contact Inc. updated its incremental first-lien term loan B as a delayed-draw tranche and released price talk on the debt, and United Airlines Inc. moved up the commitment deadline for its term loan B.

Furthermore, Cotiviti Inc. released price talk on its floating-rate term loan with launch, and Blackhawk Network Holdings Inc., Tallgrass HoldCo (Prairie Acquiror LP), Osaic Holdings Inc. and Allison Transmission Inc. joined this week’s primary calendar.

BrightSpring finalized, breaks

BrightSpring Health Services set pricing on its $2.566 billion senior secured covenant-lite first-lien term loan B (B1/B+) due February 2031 at SOFR plus 325 basis points, the high end of the SOFR plus 300 bps to 325 bps talk, a market source remarked.

As before, the term loan has a 0% floor, an original issue discount of 99 and 101 soft call protection for six months.

Late in the day Wednesday, the term loan B freed to trade, with levels quoted at 99 bid, 99¼ offered, a trader added.

Morgan Stanley Senior Funding Inc. and KKR Capital Markets are leading the arranger group.

The term loan will be used to refinance an existing first-lien facility.

Closing is expected on Tuesday.

BrightSpring Health is a Louisville, Ky.-based provider of home and community-based health services.

Wrench firmed, frees

Wrench Group finalized the original issue discount on its roughly $893 million first-lien term loan (B2/B-) due Oct. 30, 2028 at 99.75, the tight end of the 99.5 to 99.75 talk, a market source remarked.

Pricing on the term loan remained at SOFR+CSA plus 400 bps with a 0% floor. CSA is ARRC standard of 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

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

On Wednesday, the term loan broke for trading, with levels quoted at 99 7/8 bid, par 3/8 offered, another source added.

Jefferies LLC, Macquarie Capital (USA) Inc. and Antares Capital are leading the deal that will be used to extend the company’s existing $744 million first-lien term loan and non-fungible $149 million incremental first-lien term loan from April 2026, reprice the incremental term loan and combine the loans into one extended tranche.

Wrench Group is a provider of home maintenance and repair services specializing in heating, ventilation and air conditioning, plumbing, electrical and water quality services.

PlayCore upsized, trades

PlayCore raised its six-year term loan B (B2/B) to $1.1 billion from $1.05 billion and left pricing at SOFR plus 450 bps with a 1% floor and an original issue discount of 98.5, according to a market source.

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

Recommitments were due at noon ET on Wednesday and the term loan began trading in the afternoon, with levels quoted at 99 bid, 99¾ offered, another source added.

Goldman Sachs Bank USA is the left lead on the deal that will be used to refinance the company’s existing $640 million first-lien term loan, fund a distribution to shareholders and pay related fees and expenses.

Court Square Capital Partners is the sponsor.

PlayCore is a Chattanooga, Tenn.-based designer, manufacturer and marketer of commercial playground, park, recreation and specialty equipment and related complementary products.

Interstate reworked, breaks

Interstate Waste Services lifted its fungible add-on term loan due 2030 to $180 million from $150 million, a market source said.

Also, original issue discount talk on the term loan was changed to a range of 99.875 to par from a range of 99.5 to 99.75, and then firmed at par following an 11 a.m. ET recommitment deadline, the source continued.

Pricing on the add-on term loan is SOFR plus 450 bps with a 0.5% floor, in line with existing term loan pricing.

During the session, the add-on term loan made its way into the secondary market, with levels quoted at par bid, par 3/8 offered, another source added.

JPMorgan Chase Bank, BMO Capital Markets, MUFG, Stifel and Comerica are leading the deal that will be used to fund an acquisition and, due to the upsizing, for general corporate purposes.

Interstate Waste is a Teaneck, N.J.-based provider of waste and recycling services.

Global Healthcare modified

Global Healthcare Exchange upsized its term loan B due June 2027 to $746 million from $721 million, cut pricing to SOFR plus 400 bps from SOFR plus 425 bps and set the original issue discount at 99.875, the midpoint of the 99.75 to par talk, according to a market source.

The term loan still has a 0.5% floor and 101 soft call protection for six months.

Allocations went out on Wednesday, the source added.

JPMorgan Chase Bank is leading the deal that will be used to reprice an existing term loan B down from SOFR plus 475 bps with a 0.5% floor and, due to the upsizing, for general corporate purposes.

Global Healthcare Exchange is a Louisville, Colo.-based provider of cloud-based health care supply chain management technology and services.

Vestis revised

Vestis set pricing on its $800 million seven-year covenant-lite term loan B (Ba2/BB+) at SOFR plus 225 bps, the low end of the SOFR plus 225 bps to 250 bps talk, added a step-down to SOFR plus 200 bps at 3.3x first-lien net leverage, and changed the original issue discount to 99.75 from 99.5, a market source remarked.

As before, the term loan has a 0% floor and 101 soft call protection for six months.

Recommitments were due at 5 p.m. ET on Wednesday, the source added, accelerated from an original deadline of noon ET on Thursday, and allocations are expected on Thursday morning.

Wells Fargo Securities LLC is the left lead on the deal that will be used to refinance an existing $800 million term loan A-1 due 2025.

Vestis is a Roswell, Ga.-based provider of uniform rentals and workplace supplies.

Constant Contact updated

Constant Contact outlined that its $300 million covenant-lite incremental first-lien term loan B (B2/B-) due February 2028 is a fungible delayed-draw tranche with original issue discount talk of 99.3, delayed-draw duration fee talk of 2.55% to 3.05% and total economic compensation of 96.25 to 96.75, according to a market source.

Pricing on the incremental term loan is SOFR plus 400 bps with a 0.75% floor, and the debt 101 soft call protection for six months.

Commitments are due at noon ET on Friday, extended from 5 p.m. ET on Thursday, the source added.

Deutsche Bank Securities Inc., Jefferies LLC and others to be announced are leading the deal that will be used to fund the repurchase of $50 million of the company’s existing second-lien term loan and a portion of Siris Capital’s equity stake in the company, and to pay related fees and expenses.

The company plans to draw $100 million of the incremental term loan on or prior to Feb. 29 and $200 million on or prior to June 30.

Constant Contact is a Waltham, Mass.-based provider of marketing automation software.

United timing tweaked

United Airlines accelerated the commitment deadline for its $2 billion seven-year term loan B (/BB+/BB+) to 5 p.m. ET on Wednesday from 5 p.m. ET on Thursday, a market source said.

Talk on the term loan is SOFR plus 300 bps to 325 bps with a 0% floor, an original issue discount of 99 and 101 soft call protection for six months.

JPMorgan Chase Bank is the left lead on the deal that will be used with cash on hand to refinance the company’s existing $3.87 billion term loan B due 2028 priced at SOFR+CSA plus 375 bps with a 0.75% floor. Current CSA is ARRC standard of 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

United Airlines is a Chicago-based airline company.

Cotiviti holds call

Cotiviti held a lender call at 3 p.m. ET on Wednesday to launch $5 billion of first-lien term loans (B2/B), according to a market source.

The debt includes a $4.4 billion seven-year floating-rate term loan talked at SOFR plus 350 bps with two 25 bps leveraged-based step-downs and a 25 bps step-down upon an initial public offering, a 0% floor, an original issue discount of 99.5, and 101 soft call protection for six months.

In addition, the company is getting a $600 million seven-year fixed-rate term loan, with pricing and call protection to be determined.

Commitments are due at noon ET on Feb. 21, the source added.

Cotiviti lead banks

JPMorgan Chase Bank and KKR Capital Markets are the physical bookrunners on Cotiviti’s floating-rate term loan, and Veritas, UBS Investment Bank, Barclays, Morgan Stanley Senior Funding Inc. and Stone Point are joint bookrunners. Goldman Sachs Bank USA and KKR Capital are the physical bookrunners on the fixed-rate term loan.

The term loans will be used to help fund the buyout of the company by KKR, with co-sponsor and current Cotiviti investor Veritas Capital, and to pay related fees and expenses. KKR and Veritas will have equal ownership stakes in Cotiviti.

Closing is expected in the second quarter, subject to customary conditions, including regulatory approvals.

Cotiviti is a South Jordan, Utah-based provider of payment integrity technology and services to healthcare payors.

Blackhawk on deck

Blackhawk Network set a lender call for 9:30 a.m. ET on Thursday to launch a $1.7 billion five-year first-lien term loan B talked at SOFR plus 450 bps to 475 bps with a 0% floor, an original issue discount of 98 and 101 soft call protection for six months, according to market sources.

Commitments are due at noon ET on Feb. 23, sources added.

BofA Securities Inc. is the left lead on the deal that will be used with cash from the balance sheet to refinance the company’s existing first-lien term loan B, partially repay a second-lien term loan, to fund the acquisition of Tango Card, and to pay associated fees and expenses.

Blackhawk Network is a Pleasanton, Calif.-based financial technology company and provider of payment solutions, including gift cards, incentive cards and other digital payment solutions. Tango Card is a digital rewards, e-gifting and payments platform.

Tallgrass joins calendar

Tallgrass HoldCo scheduled a lender call for 10:30 a.m. ET on Thursday to launch a $1.05 billion five-year first-lien term loan (B), a market source remarked.

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

Commitments and consents are due at noon ET on Feb. 22, the source added.

Jefferies LLC and JPMorgan Chase Bank are leading the loan that will be used with other secured debt to refinance the company’s existing first-lien term loan.

Tallgrass HoldCo, backed by Blackstone, owns 100% of the equity interest in Tallgrass Energy Partners LP, an acquirer, owner, developer and operator of midstream energy assets in North America.

Osaic readies loan

Osaic Holdings will hold a lender call at 10:30 a.m. ET on Thursday to launch its previously announced fungible $500 million incremental first-lien term loan (B1/B/B+) due August 2028, according to a market source.

Pricing on the incremental term loan is SOFR plus 450 bps with a 0% floor, in line with existing term loan B pricing.

Original issue discount talk on the incremental term loan is not yet available, the source said.

Commitments are due at 10 a.m. ET on Feb. 23.

UBS Investment Bank is the left lead on the deal that will be used with a $110 million equity contribution to fund the acquisition of Lincoln Financial Group’s wealth management business.

Pro forma leverage is around 4.6x.

Closing is expected in the first half of this year, subject to customary conditions and regulatory approvals.

Osaic, a portfolio company of Reverence Capital Partners, is a provider of wealth management solutions.

Allison plans call

Allison Transmission set a lender call for 10 a.m. ET on Thursday to launch a $518 million seven-year senior secured covenant-lite term loan B talked at SOFR plus 175 bps with a 0% floor, an original issue discount of 99.5 to 99.75 and 101 soft call protection for six months, a market source said.

Citigroup Global Markets Inc. is leading the deal that will be used to amend and extend the company’s existing term loan B. The company will use cash from the balance sheet to reduce the term loan by $100 million from $618 million.

Cashless consents and new money commitments are due at noon ET on Feb. 29, and pricing is expected on March 1, the source added.

Allison Transmission is an Indianapolis-based automatic transmission company and supplier of hybrid-propulsion systems.

Pregis allocates

Pregis (Pregis Topco LLC) allocated its fungible $250 million incremental first-lien term loan (B2/B-) due August 2026, according to a market source.

Pricing on the term loan is SOFR plus 375 bps with a step-up to SOFR plus 400 bps at more than 4.35x senior secured first-lien leverage and a 0% floor, and the new debt was sold at an original issue discount of 99.52.

During syndication, the incremental term loan was upsized from $150 million.

UBS Investment Bank, Barclays, Morgan Stanley Senior Funding Inc. and Wells Fargo Securities LLC are leading the deal that will be used to fund a distribution to shareholders.

Pregis is a Chicago-based supplier of packaging systems, consumables, specialty films and surface protection films.

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