OverDrive, Charter, ZoomInfo, Summit, Avis, Atlantic Aviation, Life Time release talk

By Sara Rosenberg

New York, Nov. 27 – In the primary market on Monday, OverDrive, Charter Communications Operating LLC, ZoomInfo LLC, Summit Materials LLC, Avis Budget Group Inc., Atlantic Aviation and Life Time Inc. all released price talk with launch.

Furthermore, Surgery Partners Inc. (Surgery Center Holdings Inc.), BMC Software and Brookfield NGPL (BIP PipeCo Holdings LLC) joined this week’s new issue calendar.

OverDrive guidance

OverDrive held its lender call on Monday morning and came out with talk on its $600 million first-lien term loan B (B2/B) at SOFR plus 425 basis points to 450 bps with a 0% floor, an original issue discount of 98.5 and 101 soft call protection for six months, according to a market source.

Commitments are due at 5 p.m. ET on Dec. 7, the source added.

KKR Capital Markets, Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc., ING Capital, Truist Securities and Credit Agricole are leading the deal that will be used to refinance an existing term loan due August 2025.

OverDrive is a Cleveland-based provider of a digital catalog of ebooks, audiobooks, magazines, video and other content to libraries and schools.

Charter refinancing

Charter Communications launched a roughly $2.3 billion seven-year term loan B-4 (Ba1/BBB-) with talk of SOFR plus 200 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.

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

BofA Securities Inc. is the left lead on the deal that will be used to refinance an existing term loan B-1 due 2025.

Charter is a Stamford, Conn.-based cable telecommunications company.

ZoomInfo holds call

ZoomInfo emerged in the morning with plans to hold a lender call at 1 p.m. ET to launch a $595.5 million senior secured covenant-lite first-lien term loan B (Ba1/BB+) due Feb. 1, 2030 talked at SOFR plus 225 bps to 250 bps with a 0% floor, a par issue price, 101 soft call protection for six months and 0 bps CSA, according to a market source.

Commitments are due at 5 p.m. ET on Thursday, the source added.

Morgan Stanley Senior Funding Inc. is the left lead on the deal that will be used to reprice an existing term loan B down from SOFR+10 bps CSA plus 275 bps with a 0% floor.

ZoomInfo is a Vancouver, Wash.-based provider of sales and marketing data.

Summit comes to market

Summit Materials surfaced in the morning with the intention to hold a lender call at 1:30 p.m. ET to launch a $500 million five-year incremental senior secured covenant-lite first-lien term loan B (Baa3/BBB-) talked at SOFR plus 275 bps to 300 bps with a 0% floor, an original issue discount of 99.5 and 101 soft call protection for six months, a market source remarked.

The term loan has ticking fees of half the margin from days 46 to 75 and the full margin thereafter.

Commitments are due at 5 p.m. ET on Thursday, the source added.

Morgan Stanley Senior Funding Inc., Goldmans Sachs Bank USA, RBC Capital Markets, Barclays and Capital One are leading the deal. BofA is the administrative agent.

Summit buying Argos

Summit will use the term loan and $800 million of senior notes to fund the cash consideration of the acquisition of Argos USA from Cementos Argos and to pay transaction fees and expenses. Argos USA is being bought for about $1.2 billion in cash and about 54.7 million shares of Summit stock, valuing Argos USA at around $3.2 billion based on Summit’s closing share price of $36.00 as of Sept. 6.

Closing is expected in the first half of 2024, subject to customary conditions, including regulatory approvals and approval by Summit Materials shareholders.

Summit is a Denver-based supplier of aggregates, cement, ready-mix concrete and asphalt. Argos USA is an Alpharetta, Ga.-based cement producer.

Avis launches

Avis held a lender call at 11 a.m. ET, launching a roughly $540 million term loan C due March 2029 talked at SOFR+10 bps CSA plus 300 bps with a 0.5% floor, an original issue discount of 99.75 to par and 101 soft call protection for six months, a market source said.

Commitments are due at 5 p.m. ET on Thursday, the source added.

JPMorgan Chase Bank is leading the deal that will be used to reprice from SOFR+10 bps CSA plus 350 bps with a 0.5% floor an existing roughly $740 million term loan C, of which $200 million is being paid down.

Avis is a Parsippany, N.J.-based provider of vehicle rental services.

Atlantic proposed terms

Atlantic Aviation held a lender call at 1 p.m. ET to launch a $1.069 billion first-lien term loan due 2028 talked at SOFR plus 325 bps to 350 bps with a 0.5% floor, a par issue price for existing lenders, an original issue discount of 99.75 for new money and 101 soft call protection for six months, a market source remarked.

Commitments are due at 5 p.m. ET on Wednesday, the source added.

KKR Capital Markets is leading the deal that will be used to reprice an existing incremental first-lien term loan down from SOFR plus 400 bps with a 0.5% floor.

Atlantic Aviation is an operator of fixed base operations, providing a full suite of critical services to the private aviation sector.

Life Time repricing

Life Time announced in the morning plans to hold a lender call at 3 p.m. ET to launch a $310 million covenant-lite term loan B due January 2026 talked at SOFR+CSA plus 400 bps with a 0.5% floor, a par issue price and 101 soft call protection for six months, according to a market source. CSA is ARRC standard of 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

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

Deutsche Bank Securities Inc. is the left lead on the deal that will be used to reprice an existing term loan B, which was completed earlier this year at pricing of SOFR+ARRC CSA plus 475 bps with a 25 bps step-down at B2/B corporate ratings and a 0.5% floor. Current corporate ratings are B2/B.

Life Time is a Chanhassen, Minn.-based operator of athletic resorts offering amenities for fitness and wellness, family recreation and healthy living.

Surgery on deck

Surgery Partners set a lender call for 2 p.m. ET on Tuesday to launch $2,103,750,000 of credit facilities (B), a market source said.

The facilities consist of a $703,750,000 five-year revolver, and a $1.4 billion seven-year first-lien term loan talked at SOFR plus 375 bps to 400 bps with a 0% floor, an original issue discount of 99 and 101 soft call protection for six months, the source continued.

Commitments are due at 2 p.m. ET on Dec. 5.

Jefferies LLC, Barclays, JPMorgan Chase Bank, BofA Securities Inc., Wells Fargo Securities LLC, Capital One, RBC Capital Markets, Mizuho, Fifth Third, SVB, KKR Capital Markets and SMBC are leading the deal that will be used to refinance the company’s existing credit facilities.

Surgery Partners is a Nashville, Tenn.-based operator of short-stay surgical facilities.

BMC readies deal

BMC Software will hold a lender call at 10:30 a.m. ET on Tuesday to launch a $2 billion term loan B due December 2028 and a $1 billion equivalent euro term loan B due December 2028, a market source remarked.

Goldman Sachs Bank USA and KKR Capital Markets are leading the deal that will be used to amend and extend a portion of the company’s existing $3.038 billion term loan B due October 2025 and $1.634 billion equivalent euro term loan B due October 2025.

KKR is the sponsor.

BMC is a Houston-based provider of IT software solutions.

Brookfield joins calendar

Brookfield NGPL scheduled a lender call for 11 a.m. ET on Tuesday to launch a $465 million seven-year senior secured term loan, according to a market source.

The term loan has 101 soft call protection for six months and amortization of 1% per annum, the source said.

Barclays, RBC Capital Markets, CIBC and Santander are leading the deal that will be used to pay a distribution to Brookfield and pay transaction costs.

Brookfield NGPL is a FERC-regulated natural gas pipeline system.

Fund flows

In other news, actively managed loan fund flows on Friday were negative $26 million and loan ETFs were positive $67 million, sources said.

Outflows for loan funds year-to-date total $17.9 billion, with positive $2 billion ETFs, sources added.

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