CQP, Iron Mountain, Avolon, BMC, BroadStreet, Sundyne, Element break, OverDrive updated

By Sara Rosenberg

New York, Dec. 8 – CQP Holdco LP upsized its first-lien term loan B, Iron Mountain Information Management LLC increased the size of its term loan B, reduced the spread and tightened the original issue discount, and Avolon firmed the issue prices on its term loan B-6 at the tight side of talk, and then these deals freed to trade on Friday.

Other deals to make their way into the secondary market included BMC Software, BroadStreet Partners Inc., Sundyne (Star US Bidco LLC) and Element Solutions Inc./MacDermid Inc.

In more happenings, OverDrive set the spread on its first-lien term loan B at the low end of guidance and modified the issue price, and Ankura Consulting Group LLC modified the original issue discount on its incremental first-lien term loan.

Also, NEP, Medallion Midland Acquisition LP and Forefront Dermatology (Dermatology Intermediate Holdings III Inc.) released price talk with launch, and Aspen Dental joined the near-term primary calendar.

CQP upsized, frees

CQP Holdco raised its senior secured first-lien term loan B due Dec. 31, 2030 to $2,216,657,557 from roughly $2.0167 billion and cut its senior secured notes offering to $500 million from $700 million, a market source said.

Pricing on the term loan remained at SOFR plus 300 basis points with a 0.5% floor and an original issue discount of 99.75, and the debt still has 101 soft call protection for six months.

The term loan broke for trading late in the day on Friday, with levels quoted at par bid, par ¼ offered, a trader added.

Morgan Stanley Senior Funding Inc., Blackstone, Brookfield, BMO Capital Markets, MUFG, RBC Capital Market, SMBC and Wells Fargo Securities LLC are leading the term loan that will be used with the notes to refinance/amend and extend an existing term loan B due June 2028.

Closing is expected on Dec. 15.

CQP Holdco is an owner and operator of natural gas facilities.

Iron Mountain reworked, trades

Iron Mountain lifted its seven-year senior secured term loan B to $1.2 billion from $1 billion, lowered pricing to SOFR plus 225 bps from SOFR plus 250 bps and changed the original issue discount to 99.25 from 99, according to a market source.

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

Recommitments were due at 11 a.m. ET on Friday and the term loan B began trading shortly thereafter, with levels quoted at 99 3/8 bid, 99 7/8 offered, another source added.

Barclays, JPMorgan Chase Bank and others to be announced are leading the deal. JPMorgan is the administrative agent.

The term loan will be used for general corporate purposes, including, but not limited to, the repayment of all revolver borrowings, and to pay related fees and expenses.

Iron Mountain is a Portsmouth, N.H.-based information management company.

Avolon updated, breaks

Avolon set the original issue discount on its $2.334 billion senior secured term loan B-6 due June 22, 2028 at 99.75 for existing term loan B-5 and new money lenders, the tight end of the 99.5 to 99.75 talk, and at par for existing term loan B-6 lenders, the tight end of the 99.75 to par talk, a market source remarked.

Pricing on the term loan B-6 remained at SOFR plus 200 bps with a 0.5% floor, and the debt still has 101 soft call protection for six months.

During the session, the term loan B-6 freed to trade, with levels quoted at par ¼ bid, par 5/8 offered, another source added.

Deutsche Bank Securities Inc., Barclays, BNP Paribas Securities Corp., Fifth Third, Mizuho, Morgan Stanley Senior Funding Inc., MUFG and Truist Securities are leading the deal that will be used to consolidate the company’s existing roughly $656 million term loan B-5 due Dec. 1, 2027 and roughly $1.678 billion term loan B-6 due June 22, 2028 into one tranche and reprice the debt from current pricing of SOFR plus 225 bps with a 0.5% floor on the B-5 tranche and SOFR plus 250 bps with a 0.5% floor on the B-6 tranche.

Avolon, a Dublin-based aircraft lessor, expects to close on the term loan B-6 on Dec. 27.

BMC starts trading

BMC Software’s $3.09 billion term loan B due December 2028 freed to trade, with levels quoted at 99 3/8 bid, 99 7/8 offered, according to a market source.

Pricing on the term loan is SOFR plus 425 bps.

The company is also getting a €1.5 billion term loan B due December 2028 priced at Euribor plus 450 bps.

Both term loans (B1/B-) have a 25 bps step-down at 0.5x inside closing date net leverage and a 25 bps step-down upon consummation of a qualifying initial public offering, a 0% floor and 101 soft call protection for six months, and both were sold at an original issue discount of 99.

During syndication, the U.S. term loan was upsized from a revised amount of $2.75 billion and an initial size of $2 billion and pricing firmed at the low end of the SOFR plus 425 bps to 450 bps talk, the euro term loan was upsized from a revised amount of €1.4 billion and an initial size of $1 billion equivalent and pricing was set at the low end of the Euribor plus 450 bps to 475 bps talk, and both term loans saw the addition of the step-downs and the tightening of the original issue discount from 98.5.

BMC extending

BMC will use the term loans to amend and extend all of its existing $3.038 billion term loan B due October 2025 and $1.634 billion equivalent euro term loan B due October 2025. Originally, the company was only extending some of the existing debt, but that was changed with the upsizing of the new loans.

Goldman Sachs Bank USA, KKR Capital Markets, Macquarie Capital, Mizuho, Morgan Stanley Senior Funding Inc., UBS Investment Bank, Barclays, BNP Paribas Securities Corp., Citigroup Global Markets Inc., HSBC Securities, Jefferies LLC, RBC Capital Markets and Sumitomo Mitsui are the lead arrangers on the deal.

KKR is the sponsor.

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

BroadStreet hits secondary

BroadStreet Partners’ $1.283 billion term loan B-3 due January 2029 broke for trading as well, with levels quoted at par bid, par ¼ offered, a market source said.

Pricing on the term loan is SOFR plus 375 bps with a 0% floor. The fungible $350 million add-on piece of the term loan was sold at an original issue discount of 99.75 and the repriced portion of the loan was issued at par. The debt has 101 soft call protection for six months.

During syndication, the add-on portion of the loan was upsized from a revised amount of $300 million and an initial size of $100 million.

RBC Capital Markets, BMO Capital Markets, M&T, CIBC, Bank of Nova Scotia, TD Securities (USA) LLC, Truist Securities and Desjardins are the arrangers on the deal.

Proceeds from the add-on term loan will be used to repay revolver borrowings, which were used for tuck-in acquisitions, and to add cash to the balance sheet, and the repricing will take the existing $933 million term loan B-3 due January 2029 down from SOFR plus 400 bps with a 0% floor.

BroadStreet, owned by OTPP, Century Equity and Penfund, is a Columbus, Ohio-based insurance broker.

Sundyne breaks

Sundyne’s fungible $150 million add-on senior secured covenant-lite first-lien term loan B (B3/B-) due March 2027 hit the secondary market too, with levels quoted at 99 7/8 bid, par 3/8 offered, according to a trader.

Pricing on the add-on term loan is SOFR+10 bps CSA plus 425 bps with a 1% floor and it was sold at an original issue discount of 99.27.

Morgan Stanley Senior Funding Inc. is the left lead on the deal that will be used to refinance the company’s existing second-lien term loan due 2028, to fund a shareholder distribution, and to pay related fees and expenses.

Closing is expected during the week of Dec. 11.

Sundyne is an Arvada, Colo.-based designer and manufacturer of mission critical pumps and compressors.

Element tops OID

Element Solutions’ $1.15 billion seven-year term loan B began trading during the session, with levels quoted at par bid, par 3/8 offered, a market source remarked.

Pricing on the term loan is SOFR plus 200 bps 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, the term loan was upsized from $1 billion and the discount was changed from 99.5.

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 term loan B due 2026, and the funds from the recent upsizing will pay down term loan A borrowings.

Element Solutions is a Fort Lauderdale, Fla.-based diversified specialty chemicals company.

OverDrive revised

In other news, OverDrive finalized pricing on its $600 million first-lien term loan B (B2/B) at SOFR plus 425 bps, the low end of the SOFR plus 425 bps to 450 bps talk, and moved the original issue discount to 99 from 98.5, a market source said.

The term loan still has a 0% floor and 101 soft call protection for six months.

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 e-books, audiobooks, magazines, video and other content to libraries and schools.

Ankura tweaked

Ankura Consulting Group tightened the original issue discount on its fungible $50 million incremental covenant-lite first-lien term loan (B2/B-) due March 2028 to 99.5 from talk in the 99.25 area, a market source remarked.

Pricing on the incremental term loan is SOFR+CSA plus 450 bps with a 0.75% floor, in line with existing term loan pricing. 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 were due at 11 a.m. ET on Friday and allocation went out later in the day, the source added.

Deutsche Bank Securities Inc. is the left lead on the deal that will be used to repay existing seller notes and to fund near-term merger and acquisition activity.

Ankura is a specialty consulting platform.

NEP holds call

NEP held a lender call at 10 a.m. ET on Friday to launch $1.943 billion equivalent of U.S. and euro term loans, and released price talk on the debt, according to a market source.

The transaction consists of a $1.092 billion term loan B due Aug. 19, 2026 talked at SOFR plus 325 bps plus 150 bps accrued PIK interest with a 0% floor and a 150 bps upfront fee (PIK), a $123 million incremental term loan B due June 1, 2026 talked at SOFR plus 825 bps plus 150 bps accrued PIK interest with a 1% floor and a 200 bps upfront fee (PIK), a $209 million incremental term loan B due Aug. 19, 2026 talked at SOFR plus 400 bps plus 150 bps accrued PIK interest with a 0.5% floor and a 150 bps upfront fee (PIK), and a $519 million equivalent euro term loan B due Aug. 19, 2026 talked at Euribor plus 350 bps plus 150 bps accrued PIK interest with a 0% floor and a 150 bps upfront fee (PIK), the source said.

All of the term loans are talked with a 200 bps exit fee (cash).

Commitments are due at noon ET on Dec. 15 for the U.S. term loans and at 7 a.m. ET on Dec. 15 for the euro term loan, the source added.

NEP lead banks

Barclays, JPMorgan Chase Bank, HSBC Securities, Macquarie Capital, MUFG, Mizuho and PNC are leading NEP’s term loans.

The new debt will be used to extend the maturities of the company’s existing first-lien term loans due 2025.

In addition, the company will be extending the maturity of its existing revolving credit facility.

The borrowers for the U.S. term loans are NEP Group Inc., NEP/NCP Holdco Inc. and NEP II Inc., and the borrower for the euro term loan is NEP Europe Finco BV.

Carlyle is the sponsor.

NEP is a Pittsburgh-based provider of outsourced live and broadcast production solutions.

Medallion talk

Medallion Midland launched on its morning lender call its roughly $822 million first-lien term loan due Oct. 18, 2028 at talk of SOFR plus 350 bps with a 0% floor, a par issue price for existing lenders and an original issue discount of 99.75 for new money, a market source said.

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

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

Jefferies LLC is leading the deal that will be used to reprice an existing roughly $822 million first-lien term loan down from SOFR+ARRC CSA plus 375 bps with a 0% floor.

Medallion Midland is a crude oil gathering/intra-basin transport system in the core of the Midland Basin of the Permian.

Forefront guidance

Forefront Dermatology came out with talk of SOFR plus 525 bps to 550 bps with a 0.5% floor and an original issue discount of 97 to 98 on its non-fungible $100 million incremental first-lien term loan (B2/B) due April 2, 2029 in connection with its Friday morning bank meeting, according to a market source.

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

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

UBS Investment Bank is leading the deal that will be used to repay revolver drawings and to fund acquisitions under letters of intent.

Partners Group is the sponsor.

Forefront Dermatology is a Manitowoc, Wis.-based dermatology physician practice.

Aspen Dental on deck

Aspen Dental set a lender call for 1 p.m. ET on Monday to launch a $780 million term loan due December 2027 talked at SOFR plus 575 bps to 600 bps with a 0% floor and an original issue discount of 95, a market source remarked.

Commitments are due at 5 p.m. ET on Dec. 18, the source added.

JPMorgan Chase Bank is the left lead on the deal that will be used to amend and extend an existing term loan B-1 due April 2025.

Aspen Dental is an operator of a group of branded dental offices.

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