LifePoint, Koppers, AZZ, Air Canada break; SunSource, Chefs’ Warehouse, Iridium revised

By Sara Rosenberg

New York, March 14 – LifePoint Health Inc. firmed the spread on its term loan B at the low end of guidance, and Koppers Inc. finalized the issue price on its incremental term loan B at the tight end of talk, and then these deals freed to trade on Thursday.

Also, before breaking for trading, AZZ Inc. set pricing on its term loan B at the low end of guidance, and Air Canada upsized its term loan, firmed pricing at the low end of talk and changed the original issue discount.

In more happenings, SunSource (CD&R Hydra Buyer Inc./STS Operating Inc.) trimmed pricing on its first-lien term loan and revised the issue price, Chefs’ Warehouse Inc. (Dairyland USA Corp.) reduced the spread on its first-lien term loan, and Iridium Communications Inc. modified the original issue discount on its add-on first-lien term loan B.

Additionally, Miter Brands Acquisition Holdco Inc., Cloud Software Group Inc. (Picard Parent Inc.), Mister Car Wash Holdings Inc., Medline Borrower LP, Kodiak Building Partners, KinderCare Learning Cos. Inc. (Kuehg Corp.) and Southern Veterinary Partners LLC disclosed price talk in connection with their launches.

Furthermore, guidance emerged on HireRight Holdings Corp.’s incremental first-lien term loan, and Avantor Inc. joined the near-term primary calendar.

LifePoint updated, frees

LifePoint firmed pricing on its $1.85 billion senior secured term loan B due November 2028 (B2/B) at SOFR plus 475 basis points, the low end of the SOFR plus 475 bps to 500 bps talk, according to a market source.

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

On Thursday, the term loan B broke for trading, with levels quoted at par 1/8 bid, par 3/8 offered, another source added.

Citigroup Global Markets Inc. is leading the deal that will be used to reprice an existing term loan B due 2028 down from SOFR plus 550 bps with a 0% floor.

Closing is expected on April 10.

LifePoint is a Brentwood, Tenn.-based operator of general acute care hospitals, community hospitals, regional health systems, physician practices, outpatient centers and post-acute care facilities.

Koppers finalized, trades

Koppers set the issue price on its fungible $100 million incremental covenant-lite term loan B due April 10, 2030 at par, the tight end of the 99.75 to par talk, according to a market source.

Pricing on the incremental term loan and repriced $398 million covenant-lite term loan B due April 10, 2030 remained at SOFR plus 300 bps with a 0.5% floor, and the repriced term loan still has a par issue price.

The total $498 million of term loan debt is getting 101 soft call protection for six months.

Commitments continued to be due at noon ET on Thursday and the term loan B began trading later in the day, with levels quoted at par 1/8 bid, par 5/8 offered, another source added.

Wells Fargo Securities LLC, Citizens, Truist Securities, Fifth Third, BofA Securities Inc. and PNC are leading the deal.

The incremental term loan will be used to add cash to the balance sheet and the repricing will take the existing term loan B down from SOFR plus 350 bps with a 0.5% floor.

Koppers is a Pittsburgh-based provider of treated wood products, wood treatment chemicals and carbon compounds.

AZZ sets spread, breaks

AZZ finalized pricing on its $980 million senior secured covenant-lite term loan B due May 13, 2029 (Ba3/B/BB+) at SOFR plus 325 bps, the low end of the SOFR plus 325 bps to 350 bps talk, a market source remarked.

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

During the session, the term loan freed to trade, with levels quoted at par 1/8 bid, par ½ offered, another source added.

Citigroup Global Markets Inc., Wells Fargo Securities LLC, Barclays, US Bank and CIBC are leading the deal that will be used to reprice an existing term loan B down from SOFR plus 375 bps with a 0.5% floor.

Closing is expected during the week of March 18.

AZZ is a Fort Worth-based provider of hot-dip galvanizing and coil coating solutions.

Air Canada reworked, frees

Air Canada raised its seven-year term loan to $1.175 billion from $1.1 billion, finalized pricing at SOFR plus 250 bps, the low end of the SOFR plus 250 bps to 275 bps talk, and tightened the original issue discount to 99.75 from 99.5, a market source said.

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

On Thursday, the term loan made its way into the secondary market, with levels quoted at par bid, par ½ offered, another source added.

JPMorgan Chase Bank is the left lead on the deal that will be used to refinance a portion of the company’s existing roughly $2.2 billion term loan due 2028 priced at SOFR plus 350 bps with a 0.75% floor, alongside a paydown of the existing term loan.

Air Canada is a Montreal-based airline company.

SunSource flexed

SunSource cut pricing on its $1.685 billion seven-year first-lien term loan (B3/B) to SOFR plus 400 bps from talk in the range of SOFR plus 425 bps to 450 bps and adjusted the original issue discount to 99.5 from 99, according to a market source.

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

Recommitments were due at 5 p.m. ET on Thursday and allocations are expected on Friday, the source added.

The company’s $2.185 billion of credit facilities also include a $500 million five-year ABL revolver.

UBS Investment Bank is the left lead on the deal that will be used to refinance the company’s existing capital structure, to fund a distribution to shareholders, to pay original issue discount, fees and expenses, and to add cash to the balance sheet.

SunSource is an Addison, Ill.-based distributor of highly technical products, solutions and services.

Chefs’ Warehouse revised

Chefs’ Warehouse trimmed pricing on its $272.25 million first-lien term loan due Aug. 23, 2029 to SOFR plus 400 bps from SOFR plus 425 bps, a market source remarked.

As before, the term loan has a 0.5% floor, a par issue price, 101 soft call protection for six months and no CSA.

Recommitments are due at 11 a.m. ET on Friday, with allocations expected thereafter, the source added.

Jefferies LLC is leading the deal that will be used to reprice the company’s existing first-lien term loan due Aug. 23, 2029 down from SOFR+CSA plus 475 bps with a 0.5% floor. CSA on the existing term loan is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

Chefs’ Warehouse is a Ridgefield, Conn.-based distributor of specialty food products.

Iridium tweaked

Iridium Communications changed the original issue discount on its fungible $125 million add-on covenant-lite first-lien term loan B due Sept. 20, 2030 to 99.875 from talk in the 99.75 area, a market source said.

Pricing on the add-on term loan is SOFR plus 250 bps with a 0.75% floor, in line with existing term loan B pricing.

Commitments continued to be due at noon ET on Thursday and allocations went out later in the day, the source added.

Deutsche Bank Securities Inc., Barclays, RBC Capital Markets and Wells Fargo Securities LLC are leading the deal that will be used to fund the roughly $115 million acquisition of 80% of Satelles Inc. that Iridium does not already own. Iridium already owns around 20% of Satelles.

Closing on the term loan B is expected on March 25 and the acquisition is expected to close on April 1.

Pro forma for the transaction, the term loan B will total $1.625 billion.

Iridium is a McLean, Va.-based provider of voice and data satellite communications. Satelles is a provider of highly secure satellite-based time and location services.

Miter guidance

Miter Brands held its lender call in the afternoon and announced talk on its non-fungible $1.3 billion seven-year incremental term loan B-2 (B1/BB-/BB+) at SOFR plus 375 bps with a 0% floor, an original issue discount of 99 and 101 soft call protection for six months, a market source remarked.

Commitments are due at 5 p.m. ET on March 21, the source added.

RBC Capital Markets is the left lead on the deal that will be used with $500 million of other senior secured debt and equity from Koch Equity Development LLC, a current investor in Miter, to fund the acquisition of PGT Innovations Inc. for $42.00 per share in cash, or an enterprise value of about $3.1 billion.

Closing is expected by mid-year, subject to PGT shareholder approval, regulatory approval and customary conditions.

Miter is a manufacturer of precision-built windows and doors. PGT is a North Venice, Fla.-based designer and manufacturer of patio door and window solutions.

Cloud shops loan

Cloud Software Group launched on Thursday a $1 billion seven-year first-lien term loan B talked at SOFR plus 450 bps with a 0.5% floor, an original issue discount of 98.5 and 101 soft call protection for six months, according to a market source.

The company shared its fourth quarter and fiscal year 2023 results with lenders on Wednesday so that will serve as the lender call for this capital raise, another source added.

Commitments are due at noon ET on Tuesday.

BofA Securities Inc., Goldman Sachs Bank USA, UBS Investment Bank and others are leading the deal that will be used to partially repay preferred equity.

Cloud Software, formed in 2022 through the combination of Citrix Systems Inc. and Tibco Software Inc., is a provider of software franchises for and across data, automation, insight and collaboration serving enterprises across private, public, managed and sovereign cloud environments.

Mister Car talk

Mister Car Wash came out with talk of SOFR plus 325 bps with a 0% floor and an original issue discount of 99.5 on its $901 million seven-year term loan B with its afternoon lender call, a market source remarked.

The term loan has 101 soft call protection for six months and no CSA.

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

BofA Securities Inc. is the left lead on the deal that will be used to refinance the company’s outstanding term loans.

Mister Car Wash is a Tucson-based car wash operator.

Medline launches

Medline launched during the session a roughly $6.143 billion first-lien term loan due Oct. 21, 2028 (B+) talked at SOFR plus 275 bps to 300 bps with a 0.5% floor, an original issue discount of 99.875 to par, 101 soft call protection for six months, no CSA and no leverage-based pricing grid, according to market sources.

Commitments are due at noon ET on Wednesday, sources added.

BofA Securities Inc., Goldman Sachs Bank USA and others are leading the deal that will be used to revise an existing term loan B due Oct. 21, 2028 priced at SOFR+CSA plus 300 bps with a leverage-based pricing grid and a 0.5% floor. Current CSA is CSA is ARRC standard of 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

In connection with this transaction, the existing term loan is being paid down by $1 billion to roughly $6.143 billion.

Medline is a Northfield, Ill.-based manufacturer and distributor of health care supplies to hospitals, post-acute settings, physician offices and surgery centers.

Kodiak proposed terms

Kodiak Building Partners launched on its morning call its non-fungible $350 million incremental term loan B-2 due March 12, 2028 (B2/B+) at talk of SOFR plus 375 bps with a 0% floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

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

RBC Capital Markets is leading the deal that will be used to fund a dividend to sponsor Court Square Capital Partners.

Kodiak Building is a Highlands Ranch, Colo.-based building products distribution platform and provider of fabrication and assembly services.

KinderCare holds call

KinderCare Learning held its call in the morning, launching its fungible $250 million incremental first-lien term loan B due June 12, 2030 (//BB) with original issue discount talk of 99, a market source said.

Pricing on the incremental term loan is SOFR plus 500 bps with a 0.5% floor, in line with existing term loan pricing.

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

Barclays, Macquarie Capital (USA) Inc., Goldman Sachs Bank USA, Deutsche Bank Securities Inc., UBS Investment Bank, Jefferies LLC, KKR Capital Markets and Citizens are leading the deal that will be used for general corporate purposes, including a potential distribution to shareholders and/or potential mergers and acquisitions, and to pay transaction expenses.

Pro forma for the transaction, the term loan will total $1.572 billion.

KinderCare is a Lake Oswego, Ore.-based provider of private early childhood care and education.

Southern Veterinary launches

Southern Veterinary emerged in the morning with plans to hold a lender call at 2 p.m. ET to launch a fungible $145 million incremental first-lien term loan due Oct. 5, 2027 talked with an original issue discount of 99.5, according to a market source.

Pricing on the incremental term loan is SOFR+CSA plus 400 bps with a 1% floor, in line with existing first-lien 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.

Commitments are due at 2 p.m. ET on Wednesday, the source added.

Jefferies LLC and Golub Capital are leading the deal that will be used to refinance the company’s existing second-lien term loan.

Southern Veterinary is a Birmingham, Ala.-based provider of general practice veterinary services.

HireRight talk surfaces

HireRight came out with original issue discount of 99 on its fungible $250 million incremental first-lien term loan due September 2030 (B2/B), a market source said.

Like the existing term loan, the incremental term loan is priced at SOFR plus 400 bps with a 0% floor.

The incremental term loan has a ticking fee payable only if the transaction closes of half the margin from days 61 to 90 and the full margin thereafter, the source added.

Commitments are due on March 21. The loan launched with a call on Wednesday.

Goldman Sachs Bank USA, RBC Capital Markets, Stone Point Capital Markets, Barclays, Citizens and Capital One are leading the deal that will be used to help fund the acquisition of the company by General Atlantic and Stone Point Capital LLC. The sponsors are the beneficial owners of about 75% of the company’s outstanding shares of common stock and will acquire the shares they do not already own for $14.35 per share in cash.

Closing is expected in mid-2024, subject to approval by stockholders of a majority of the shares not owned by the sponsors, receipt of regulatory approvals and other customary conditions.

HireRight is a Nashville-based provider of technology-driven workforce risk management and compliance solutions.

Avantor on deck

Avantor set a lender call for 10 a.m. ET on Monday to launch a $772 million term loan B due November 2027 talked at SOFR+10 bps CSA plus 200 bps with a 0.5% floor, a par issue price and 101 soft call protection for six months, according to a market source.

Commitments are due at 5 p.m. ET on March 27, the source added.

Goldman Sachs Bank USA is the left lead on the deal that will be used to reprice an existing $772 million term loan B due November 2027 down from SOFR+10 bps CSA plus 225 bps with a 0.5% floor.

Avantor is a Radnor, Pa.-based provider of mission critical products and services to customers in the biopharma, healthcare, education & government, and advanced technologies & applied materials industries.

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