Buckeye, System One break; Veritiv, Iqvia, 84 Lumber, TransNetwork, Tekni-Plex revised

By Sara Rosenberg

New York, Nov. 16 – Buckeye Partners LP’s term loan B made its way into the secondary market on Thursday, with levels quoted above its original issue discount, and System One’s add-on term loan B freed to trade as well.

Moving to the primary market, Veritiv Corp. widened the spread and issue price on its term loan B, and Iqvia Inc. set the size on its term loan B, trimmed pricing, adjusted the original issue discount and extended the call protection.

Also, 84 Lumber Co. lowered the spread on its term loan B and finalized the original issue discount at the tight end of guidance, and TransNetwork LLC increased the size of its term loan B, set the margin at the low end of talk and revised the issue price.

Furthermore, Tekni-Plex Inc. (Trident TPI Holdings Inc.) modified the original issue discount on its incremental first-lien term loan B-4, Perrigo changed the issue price on its add-on term loan B, and IMA Financial Group upsized its add-on term loan B-1 and tightened the original issue discount.

Additionally, Flutter Entertainment plc reduced pricing on its term loan B and revised original issue discount talk, and Northeast Grocery Inc. joined this week’s new issue calendar.

Buckeye hits secondary

Buckeye Partners’ $1 billion term loan B (Ba1/BB+/BBB-) broke for trading in the afternoon, with levels quoted at 99 7/8 bid, par ¼ offered on the open and then it moved to par bid, par ¼ offered, according to a market source.

Pricing on the term loan is SOFR plus 250 basis points with a 0% floor, and it was sold at an original issue discount of 99.75. The debt has 101 soft call protection for six months.

During syndication, pricing on the term loan firmed at the low end of the SOFR plus 250 bps to 275 bps talk and the discount was changed from 99.5.

MUFG, Truist Securities, CIBC, Wells Fargo Securities LLC, TD Securities (USA) LLC, ING, Mizuho, JPMorgan Chase Bank, Goldman Sachs Bank USA, Santander and National Australia Bank are leading the deal that will be used to fund a partial refinancing of the company’s term loan B due 2026 priced at SOFR plus 225 bps with a 0% floor and revolver borrowings.

Buckeye is a Houston-based owner and operator of integrated midstream assets.

System One breaks

System One’s fungible $65 million add-on covenant-lite term loan B due March 2028 freed up too, with levels quoted at 99 5/8 bid, par 1/8 offered, a market source said.

Pricing on the add-on term loan is SOFR plus 400 bps with a 0.75% floor, in line with existing term loan B pricing, and the new debt was sold at an original issue discount of 99.25.

During syndication, the discount on the add-on term loan was revised from 99.03.

Truist Securities is leading the deal that will be used to fund an acquisition.

System One, an Oaktree Capital Management portfolio company, is a Pittsburgh-based provider of specialized workforce solutions and integrated services.

Veritiv revised

Switching to the primary market, Veritiv raised pricing on its $700 million seven-year term loan B (B2/B+) to SOFR plus 500 bps from SOFR plus 450 bps and changed the original issue discount to 97 from 98, according to a market source.

The term loan still has a 0% floor.

Commitments continued to be due at noon ET on Thursday, the source added.

The company’s $1.525 billion of credit facilities also include an $825 million five-year ABL revolver.

RBC Capital Markets, Goldman Sachs Bank USA, Wells Fargo Securities LLC, BMO Capital Markets, UBS Investment Bank, BNP Paribas Securities Corp., Mizuho Bank, TD Securities (USA) LLC, Natixis, Rabobank, Regions Capital Markets, Citizens Bank, ING Capital, Stifel and the Bank of Nova Scotia are leading the deal that will be used with $600 million of senior secured notes and $1.12 billion of equity to fund the buyout of the company by Clayton, Dubilier & Rice LLC for $170 per share in a transaction with an enterprise value of $2.6 billion.

Closing is expected this quarter, subject to shareholder approval and regulatory approvals.

Veritiv is an Atlanta-based distributor of packaging, facility solutions and print products.

Iqvia modified

Iqvia firmed the size on its term loan B due 2031 at $1.5 billion, versus revised talk of a minimum of $1.5 billion and an initial amount of $1.25 billion, cut pricing to SOFR plus 200 bps from talk in the range of SOFR plus 225 bps to 250 bps, tightened the issue price to par from 99 and extended the 101 soft call protection to one year from six months, a market source remarked.

The term loan still has a 0% floor.

Recommitments were due at 5 p.m. ET on Thursday, the source added.

JPMorgan Chase Bank is the left lead on the deal. BofA Securities Inc. is the administrative agent.

The term loan will be used with $1.25 billion of senior secured notes, upsized recently from $500 million, to repay certain of the company’s outstanding term loans due in 2024 and 2025 and to pay fees and expenses.

Iqvia is a Danbury, Conn.-based provider of advanced analytics, technology solutions and contract research services to the life sciences industry.

84 Lumber flexed

84 Lumber trimmed pricing on its $450 million seven-year covenant-lite term loan B (Ba2/BB-) to SOFR plus 275 bps from SOFR plus 300 bps and set the original issue discount at 99.5, the tight end of the 99 to 99.5 talk, according to a market source.

As before, the term loan has 10 bps CSA, a 0% floor and 101 soft call protection for six months.

Recommitments were due at 5 p.m. ET on Thursday, the source added, revised from an original commitment deadline of noon ET on Friday.

Wells Fargo Securities LLC is the left lead on the deal that will be used with about $100 million of cash on hand to refinance an existing term loan B due 2026.

84 Lumber is an Eighty Four, Pa.-based supplier of building materials, manufactured components and services for single and multi-family residences and commercial buildings.

TransNetwork reworked

TransNetwork lifted its term loan B to $320 million from $300 million, firmed pricing at SOFR plus 550 bps, the low end of the SOFR plus 550 bps to 575 bps talk, and moved the original issue discount to 98 from talk in the range of 97 to 97.5, a market source said.

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

Recommitments were due on Thursday, the source added.

Truist Securities is leading the deal that will be used to fund the acquisition of PNC Payment Holdings Inc. and to refinance existing debt.

TransNetwork, owned by Flexpoint Ford, GCP Capital Partners and Investar Financial, is a Houston-based payment processor serving the U.S. to Latin America cross-border payment corridor.

Tekni-Plex tightened

Tekni-Plex adjusted the original issue discount on its fungible $200 million incremental first-lien term loan B-4 due Sept, 17, 2028 (B2/B-) to 98 from talk in the range of 97 to 97.5, a market source remarked.

Pricing on the incremental term loan is SOFR plus 525 bps with a 0.5% floor, and the debt has 101 soft call protection for six months.

Recommitments were due at noon ET on Thursday and allocations went out later in the day, the source added.

UBS Investment Bank, Jefferies LLC and BMO Capital Markets are leading the deal that will be used to fund the acquisition of Seisa Medical Holdings Inc., an El Paso, Tex.-based medical device manufacturer.

Closing on the acquisition is subject to regulatory approval.

Pro forma for the transaction, the term loan B-4 will total about $324 million.

Tekni-Plex is a Wayne, Pa.-based provider of health care and consumer material solutions.

Perrigo updated

Perrigo tightened the original issue discount on its fungible $300 million add-on term loan B due 2029 to 99.5 from talk in the range of 98.79 to 99, according to a market source.

Pricing on the add-on term loan is SOFR+10 bps CSA plus 225 bps with a 25 bps step-up at more than 4.8x total net leverage and a 0.5% floor, in line with existing term loan B pricing.

Allocations went out on Thursday, the source added.

JPMorgan Chase Bank is leading the deal that will be used with cash on hand and/or other sources of liquidity to fund a tender offer for up to $300 million of the company’s 3.9% senior notes due 2024.

The tender offer expires at 5 p.m. ET on Dec. 12.

Perrigo is a Dublin-based provider of self-care products and over-the-counter health and wellness solutions.

IMA tweaked

IMA Financial accelerated the commitment deadline for its fungible add-on covenant-lite term loan B-1 due November 2028 to 4 p.m. ET on Thursday from noon ET on Friday and, after the deadline passed, the loan was increased to $375 million from $350 million and the original issue discount was moved to 99.5 from talk in the range of 99.04 to 99.25, a market source remarked.

Pricing on the add-on term loan is SOFR+CSA plus 375 bps with a 0.5% floor, and the debt has 101 soft call protection for six months. CSA is ARRC standard of 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

Recommitments are due at 10 a.m. ET on Friday, with allocations expected thereafter, the source added.

BMO Capital Markets is leading the deal that will be used to refinance an existing term loan B-2, repay revolver borrowings and fund an acquisition under a letter of intent, and the funds from the upsizing will be used for potential future acquisitions and general corporate purposes.

New Mountain Capital, SkyKnight Capital and the Stephens Group are the sponsors.

IMA Financial is a Denver-based property and casualty and employee-benefit specialty insurance brokerage.

Flutter revised

Flutter Entertainment lowered pricing on its $2.68 billion term loan B due 2030 (Ba1/BBB-/BBB) to SOFR plus 225 bps from talk in the range of SOFR plus 250 bps to 275 bps, and modified the original issue discount talk to a range of 99.5 to 99.75 from just 99.5, a market source said.

The term loan has a leverage-based pricing step-down, a 0.5% floor and 101 soft call protection for six months.

Recommitments are due at 10 a.m. ET on Friday, the source added.

JPMorgan Chase Bank, Wells Fargo Securities LLC, BofA Securities Inc. and Barclays are global coordinators on the deal and bookrunners with Citigroup Global Markets Inc., Mediobanca, NatWest, Santander, AIB, Citizens, Lloyds and Mizuho. JPMorgan is the administrative agent.

The company is also looking to get a £1.5 billion equivalent term loan A and plans to upsize its revolver to £1 billion from £750 million.

The new debt will be used to refinance an existing term loan B due 2026 and an existing term loan A.

Flutter Entertainment is a Dublin-based sports betting and gaming operator.

Northeast Grocery on deck

Northeast Grocery set a lender call for 11:30 a.m. ET on Friday to launch a $550 million five-year term loan B (B+), according to a market source.

Commitments are due at noon ET on Dec. 4, the source added.

Deutsche Bank Securities Inc., UBS Investment Bank and BofA Securities Inc. are leading the deal that will be used to refinance existing debt.

Northeast Grocery is a Schenectady, N.Y.-based traditional food retailer.

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