Griffon, Addison Group, NAB, Liberty Tire break; Arxada, System One changes surface

By Sara Rosenberg

New York, Jan. 19 – Griffon Corp. lowered the spread on its term loan B for a second time and adjusted the original issue discount, and Addison Group modified pricing on its term loan B, added a step-down and revised the issue price, and then these deals freed to trade on Wednesday.

Also, before breaking for trading, North American Bancard (NAB Holdings LLC) firmed the original issue discount on its incremental first-lien term loan at the tight end of guidance, and Liberty Tire Recycling LLC (LTR Intermediate Holdings Inc.) changed the issue price on its add-on term loan B.

In more happenings, Arxada (Herens US Holdco Corp.) firmed the split of its U.S. and euro add-on term loan B and updated the original issue discount, and System One Holdings LLC tightened the issue price on its add-on term loan.

Furthermore, Bausch Health Cos. Inc., Alight Solutions, AssuredPartners Inc., Physician Partners LLC, Novae LLC, AHF Products LLC, East West Manufacturing and Precisely released price talk with launch.

Additionally, Prince International Corp. (PMHC II Inc.), Bakelite Synthetics, Emerald EMS and Athletico Physical Therapy joined this week’s primary calendar.

Griffon flexes

Griffon trimmed pricing on its $800 million seven-year covenant-lite term loan B to SOFR+CSA plus 275 basis points from revised talk of SOFR+CSA plus 300 bps to 325 bps and initial talk of SOFR+CSA plus 350 bps, according to market sources.

The company also changed the original issue discount talk on the term loan to a range of 99.5 to 99.75 from revised talk in the 99.5 area and initial talk in the range of 99 to 99.5, and then finalized at 99.75, sources said.

As before, the term loan has a 0.5% floor, CSA of 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate, and 101 soft call protection for six months.

Previously in syndication, the term loan was upsized from $750 million.

Griffon hits secondary

Commitments for Griffon’s term loans continued to be due at noon ET on Wednesday and the debt broke for trading in the afternoon, with levels quoted at par bid, par 3/8 offered, a trader added.

BofA Securities Inc., BNP Paribas Securities Corp., Deutsche Bank Securities Inc. and Wells Fargo Securities LLC are leading the deal that will be used to help fund the $845 million acquisition of Hunter Fan Co. from MidOcean Partners.

Closing is expected during the week of Jan. 24.

Griffon is a New York-based diversified management and holding company that conducts business through wholly owned subsidiaries. Hunter Fan is a Memphis-based designer and distributor of residential ceiling, commercial and industrial fans.

Addison reworked, frees

Addison Group changed pricing on its $525 million term loan B (B) to SOFR plus 425 bps from Libor plus 450 bps, added a 25 bps leverage-based step-down and moved the original issue discount to 99.75 from 99, a market source remarked.

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

Recommitments were due at 1 p.m. ET on Wednesday and the term loan B emerged in the secondary market later in the day, with levels quoted at par bid, another source added.

The company is also getting a $65 million ABL revolver.

KKR Capital Markets and Credit Suisse Securities (USA) LLC are leading the deal that will be used to help fund the buyout of the company by Trilantic North America from Odyssey Investment Partners LLC.

Addison Group is a Chicago-based professional services firm specializing in talent solutions and consulting services.

NAB updated, trades

North American Bancard set the original issue discount on its fungible $300 million incremental covenant-lite first-lien term loan due Nov. 23, 2028 (B1/B+) at 99.5, the tight end of the 99.25 to 99.5 talk, according to a market source.

Pricing on the incremental term loan is SOFR+CSA plus 300 bps with a 25 bps step-down at 2.85x net senior secured leverage and a 0.5% floor, in line with existing term loan pricing. CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

The incremental term loan has 101 soft call protection through May 23, 2022.

During the session, the incremental term loan freed to trade, with levels quoted at 99 5/8 bid, par offered, the source added.

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to fund the acquisition of CardWorks.

North American Bancard is a Troy, Mich.-based provider of payment processing solutions.

Liberty tightens, breaks

Liberty Tire revised the original issue discount on its fungible $150 million add-on green senior secured covenant-lite term loan B due May 7, 2028 (B3/B) to 99.25 from 98.57, a market source said.

Pricing on the add-on term loan is Libor plus 450 bps with a 1% Libor floor, and the new and existing term loan debt are getting 101 soft call protection for six months.

Recommitments were due at noon ET on Wednesday and the add-on term loan began trading in the afternoon, with levels quoted at 99 5/8 bid, par 3/8 offered, a trader added.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to fund the acquisition of Rubberecycle, a Lakewood, N.J.-based manufacturer of rubber products.

Closing is expected late this month.

Pro forma for the transaction, the term loan B will total $558 million.

Liberty Tire is a Pittsburgh-based provider of tire recycling services.

Arxada revised

Arxada finalized the breakdown of its fungible CHF 621 million equivalent U.S. and euro add-on term loan B due July 2028 (B) at $335 million and €302.41 million, and tightened the original issue discount on the tranches to 99.75 from talk in the range of 99 to 99.5, according to a market source.

Pricing on the add-on U.S. term loan is Libor plus 400 bps with a 0.75% Libor floor, and pricing on the add-on euro term loan is Euribor plus 400 bps with a 0% floor, both in line with existing term loan pricing.

Commitments were due at 5 p.m. ET on Wednesday for the U.S. loan and at noon ET on Wednesday for the euro term loan, the source added.

Deutsche Bank is the physical bookrunner on the U.S. term loan. Other bookrunners on the term loans are UBS Investment Bank, RBC Capital Markets, Credit Suisse, Credit Agricole CIB, Intesa, MUFG, Societe Generale, Standard Chartered and UniCredit. Credit Suisse is the agent.

The debt will be used to help fund the already completed acquisitions of Troy Corp., a manufacturer of microbial control solutions and performance additives, and Enviro Tech Chemical Services, a manufacturer of antimicrobial and biocidal products, and to pay acquisition related fees and expenses.

Arxada is a Basel, Switzerland-based specialty chemicals company.

System One tweaked

System One modified the original issue discount on its fungible $30 million add-on term loan (B) to 99.75 from 99.5, a market source remarked.

As before, the add-on term loan is priced at SOFR+CSA plus 400 bps with a 0.75% floor, CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate, and the debt has 101 soft call protection through March 2, 2022.

Commitments were due at 5 p.m. ET on Wednesday, accelerated from 5 p.m. ET on Thursday, the source added.

Truist Securities is leading the deal that will be used to fund an acquisition, to repay revolver borrowings and for general corporate purposes.

Along with this transaction, pricing on the company’s existing term loan will be revised to SOFR+CSA plus 400 bps with a 0.75% floor from Libor plus 400 bps with a 0.75% Libor floor, the source added.

System One is a Pittsburgh-based provider of specialized workforce solutions and integrated services.

Bausch Health talk

In other news, Bausch Health held its lender call on Wednesday and announced price talk on its $2.5 billion seven-year senior secured term loan B at SOFR+CSA plus 475 bps to 500 bps with a 0.5% floor and an original issue discount of 99, according to a market source.

CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

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

The company’s $3.475 billion of credit facilities (Ba3/BB/BB) also include a $975 million revolver.

Commitments are due at noon ET on Jan. 27, the source added.

Barclays is leading the deal that will be used with about $1 billion of secured debt securities, and the initial public offering of its eye health business, Bausch + Lomb Corp., and related debt financing by Bausch + Lomb to fund the redemption of 6.125% senior notes due 2025, refinance existing term loan B debt, fund a partial redemption of 9% senior notes due 2025, and to pay related fees, premiums and expenses.

Bausch is a Laval, Quebec-based health care company.

Alight holds call

Alight Solutions launched on its morning call its $1.956 billion term loan B due August 2028 at talk of SOFR plus 300 bps with a 0.5% floor, an original issue discount of 99.75 and 101 soft call protection for six months, a market source said.

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

BofA Securities Inc. is the left lead on the deal that will be used to refinance term loan debt due in 2026.

Alight is a Lincolnshire, Ill.-based provider of integrated, cloud-based human capital solutions.

AssuredPartners launches

AssuredPartners held its call in the afternoon and released price talk on its non-fungible $500 million incremental term loan (B2) due February 2027 at SOFR plus 350 bps with a 0.5% floor and an original issue discount of 99.5, according to a market source.

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

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

Barclays, JPMorgan Chase Bank, BofA Securities Inc., Morgan Stanley Senior Funding Inc., BMO Capital Markets, Goldman Sachs Bank USA, RBC Capital Markets, Deutsche Bank Securities Inc., Mizuho, Credit Suisse Securities (USA) LLC, Macquarie Capital (USA) Inc. and ING are leading the deal. BofA is the administrative agent.

The loan will be used to provide liquidity for near-term acquisition activity and to pay down revolver borrowings.

AssuredPartners is a Lake Mary, Fla.-based insurance brokerage firm.

Physician Partners guidance

Physician Partners came out with price talk of SOFR+CSA plus 400 bps to 425 bps with a 0.5% floor and an original issue discount of 99 on its $600 million seven-year first-lien term loan shortly before its morning lender call kicked off, a market source remarked.

CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

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

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

The company’s $650 million of credit facilities (B2/B) also include a $50 million revolver.

Credit Suisse Securities (USA) LLC and Truist are leading the deal that will be used to support an equity investment in the company by Kinderhook Industries.

Physician Partners is a primary care physician group and managed service organization.

Novae proposed terms

Novae announced talk on its $350 million seven-year first-lien term loan and $100 million seven-year first-lien delayed-draw for six months term loan at SOFR+CSA plus 500 bps with two step-downs, a 0.75% floor and an original issue discount of 99 in connection with its morning lender call, according to a market source.

CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

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

The company’s $500 million of credit facilities also include a $50 million five-year revolver.

Commitments are due at noon ET on Feb. 2, the source added.

Jefferies LLC, SMBC and Nomura are leading the deal that will be used to fund the acquisition of the company by Brightstar Capital Partners and the acquisition of Mirage Trailers.

Novae is a Markle, Ind.-based manufacturer of professional grade utility, dump, equipment, deckover and enclosed trailers.

AHF launches

AHF Products held its call in the morning, launching its $215 million seven-year first-lien term loan (B2/B) at talk of SOFR+CSA plus 625 bps with a 0.75% floor, an original issue discount of 98 and 101 hard call protection for one year, a market source said.

CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

Commitments are due at 5 p.m. ET on Feb. 2, the source added.

The company is also getting a $50 million ABL revolver.

UBS Investment Bank, KeyBanc Capital Markets and Stifel are leading the deal that will be used to help fund the buyout of the company by Paceline Equity Partners from American Industrial Partners.

Closing is expected this quarter.

AHF Products is a Mountville, Pa.-based manufacturer of hardwood and vinyl flooring.

East West price talk

East West Manufacturing launched on its afternoon call its $275 million seven-year covenant-lite term loan B and $40 million delayed-draw term loan at talk of SOFR plus 550 bps to 575 bps with a 0.75% floor and an original issue discount of 99, according to a market source.

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

The company’s $355 million of credit facilities (B3/B-) also include a $40 million revolver.

Commitments are due at 5 p.m. ET on Feb. 2, the source added.

KeyBanc Capital Markets, ING and TD Securities (USA) LLC are leading the deal that will be used to help fund the buyout of the company by MSD Partners.

East West is an Atlanta-based integrated design, manufacturing, and distribution services partner for original equipment manufacturers and distributors.

Precisely seeks add-ons

Precisely launched on a noon ET lender call $230 million of add-on term loans, consisting of a fungible $200 million add-on first-lien term loan due April 2028 talked with an original issue discount of 99.5 to 99.75 and a fungible $30 million add-on second-lien term loan due April 2029 talked with a discount of 99.75 to par, a market source remarked.

Pricing on the add-on first-lien term loan is Libor plus 400 bps with a 0.75% Libor floor and pricing on the add-on second-lien term loan is Libor plus 725 bps with a 0.75% Libor floor.

The add-on first-lien term loan has 101 soft call protection until April, and the add-on second-lien term loan has 102 hard call protection until April and then 101 for a year.

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

JPMorgan Chase Bank is leading the deal. Barclays is the agent on the second-lien loan and a joint bookrunner. Golub Capital is a joint lead arranger.

The loans will be used by the data integrity software provider to fund the acquisition of PlaceIQ, a New York-based data and technology provider, and to repay revolver borrowings.

Prince sets call

Prince International will hold a lender call at 10 a.m. ET on Thursday to launch its previously announced $2.27 billion of credit facilities (B-), according to a market source.

The facilities consist of a $325 million revolver and a $1.945 billion seven-year covenant-lite first-lien term loan.

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

Commitments are due at 5 p.m. ET on Feb. 1, the source added.

Credit Suisse Securities (USA) LLC, Barclays, Goldman Sachs Bank USA, Jefferies LLC, KeyBanc Capital Markets, Deutsche Bank Securities Inc., HSBC Securities (USA) Inc. and BofA Securities Inc. are leading the deal.

Prince buying Ferro

Prince will use the credit facilities with $500 million in first-lien secured notes, $756 million in senior unsecured notes and $200 million of equity to fund the acquisition of Ferro Corp. for $22.00 per share in cash in a transaction valued at about $2.1 billion, including the assumption of debt, net of cash, and to refinance existing debt.

With the closing of the transaction, Prince, a portfolio company of American Securities LLC, Ferro and Chromaflo Technologies, another American Securities portfolio company, will combine into one company.

Closing is expected this quarter, subject to the approval of Ferro shareholders and the satisfaction of customary conditions, including applicable regulatory approvals.

Prince is a Houston-based developer, manufacturer and marketer of performance-critical specialty products for niche applications in the construction, electronics, consumer products, agriculture, automotive, oil & gas, industrial and other end markets. Ferro is a Mayfield Heights, Ohio-based supplier of technology-based functional coatings and color solutions. Chromaflo is an Ashtabula, Ohio-based provider of colorant technology solutions.

Bakelite on deck

Bakelite Synthetics scheduled a lender call for noon ET on Thursday to launch a $485 million first-lien term loan (/BB-/BB+), a market source said.

Goldman Sachs Bank USA, Deutsche Bank Securities Inc., UBS Investment Bank, Macquarie Capital (USA) Inc. and Jefferies LLC are leading the deal that will be used to support the acquisition of the chemicals unit of Georgia-Pacific, refinance existing debt at Bakelite, and pay related fees and expenses.

Black Diamond and Investindustrial are the sponsors.

Bakelite is a Louisville, Ky.-based producer of phenolic specialty resins and engineered thermoset molding compounds. Georgia-Pacific Chemicals is a producer of formaldehyde based thermosetting resins and formaldehyde solutions.

Emerald timing emerges

Emerald EMS set a lender call for 10 a.m. ET on Thursday to launch its previously announced $295 million of credit facilities (B3/B-), according to a market source.

The facilities consist of a $45 million revolver and a $250 million first-lien term loan.

UBS Investment Bank and Barclays are leading the deal that will be used to support the recently completed buyout of the company by Crestview Partners.

Emerald EMS is a Salem, N.H.-based high-tech electronics manufacturing services and design firm.

Athletico readies deal

Athletico Physical Therapy will hold a lender call at 2:30 p.m. ET on Thursday to launch an $875 million seven-year term loan B (B), a market source remarked.

The term loan has 101 soft call protection for six months, the source added.

BofA Securities Inc. and BMO Capital Markets are leading the deal that will be used with equity to fund the acquisition of Pivot Health Solutions from PennantPark, to refinance existing debt and to add cash to the balance sheet.

Closing is expected this quarter, subject to customary conditions and regulatory approvals.

Athletico is an Oak Brook, Ill.-based provider of orthopedic rehabilitation services. Pivot Health is a provider of physical therapy, occupational health and onsite corporate health services.

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