Trac, Power Stop break; MJH Life Sciences changes emerge; RelaDyne accelerates deadline

By Sara Rosenberg

New York, Jan. 24 – Trac (Stonepeak Tarus Lower Holdings LLC) finalized the original issue discount on its second-lien term loan at the tight end of guidance and Power Stop LLC removed one of two leverage-based step-downs from its first-lien term loan, and then both of these deals freed to trade on Monday.

In other news, MJH Life Sciences trimmed price talk on its term loan B, updated original issue discount guidance and made some changes to documentation, and RelaDyne Inc. moved up the commitment deadline for its first-lien term loan.

Furthermore, McAfee Corp. came out with price talk on its U.S. and euro term loans in connection with its lender call, and White Cap Supply Holdings LLC, Tricor Group (Thevelia (US) LLC), Ankura Consulting Group LLC, Conterra Ultra Broadband and WHP Global joined this week’s primary calendar.

Trac updated, frees

Trac set the original issue discount on its $350 million eight-year second-lien term loan (Caa1/B+) at 98.5, the tight end of the 98 to 98.5 talk, according to a market source.

As before, the term loan is priced at SOFR+CSA of 10 basis points plus 700 bps with a 0.5% floor, and has call protection of 102 in year one and 101 in year two.

On Monday, the second-lien term loan made its way into the secondary market, with levels quoted at 99 bid, par offered, the source added.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to fund a distribution to the sponsor.

Trac is a marine chassis pool manager and equipment provider.

Power Stop tweaked, trades

Power Stop eliminated one 25 bps leverage-based step-down from its $395 million seven-year first-lien term loan but left one 25 bps leverage-based step-down in place, a market source remarked.

Pricing on the term loan remained at Libor plus 475 bps with a 0.5% Libor floor and an original issue discount of 99.

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

The company’s $435 million of credit facilities (B3/B) also include a $40 million five-year revolver.

During the session, the term loan broke for trading, with levels quoted at 99¼ bid, par offered, a trader added.

Jefferies LLC and Antares Capital are leading the deal that will be used to refinance existing debt and fund a distribution to shareholders.

Power Stop is a manufacturer of aftermarket automotive brake kits.

MJH revised

MJH Life Sciences cut price talk on its $650 million seven-year term loan B to a range of SOFR+CSA plus 350 bps to 375 bps from a range of SOFR+CSA plus 400 bps to 425 bps, updated original issue discount talk to 99.5 from a range of 99 to 99.5 and removed leverage-based pricing step-downs, according to a market source.

The Cranbury, N.J.-based medical media company also modified MFN on the term loan to 50 bps with a 12-month sunset from 75 bps with a six-month sunset, reduced the contribution debt basket to 100% from 200% and added a requirement for quarterly lender calls, the source said.

The term loan still has a 0.5% floor, an initial public offering-based pricing step-down, 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.

The company’s $725 million of credit facilities (B2/B-) also include a $75 million revolver.

Commitments continued to be due at 5 p.m. ET on Monday, the source added.

BofA Securities Inc. and PNC Bank are leading the deal that will be used to help fund the acquisition of a majority interest in the company by BDT Capital Partners LLC. The Hennessy Family, who founded the company, will continue to hold a significant minority ownership position.

RelaDyne changes timing

RelaDyne accelerated the commitment deadline for its $540 million seven-year first-lien term loan (B2/B) to 5 p.m. ET on Tuesday from noon ET on Thursday, a market source said.

Talk on the first-lien term loan is SOFR plus 450 bps with a 0.5% floor, an original issue discount of 99 and 101 soft call protection for six months.

The company’s $855 million of credit facilities also include a $150 million ABL revolver and a $165 million privately placed eight-year second-lien term loan.

RBC Capital Markets, BMO Capital Markets, KeyBanc Capital Markets, Macquarie Capital (USA) Inc. and Golub Capital are leading the deal that will be used to support the recently completed buyout of the company by American Industrial Partners from Audax Private Equity, and refinance an existing roughly $450 million first-lien term loan and a roughly $140 million second-lien term loan.

RelaDyne is a Cincinnati-based provider of lubricants and distributor of less-than-truckload fuel, diesel exhaust fluid, chemicals and other related products.

McAfee talk surfaces

McAfee held its lender call on Monday morning and announced price talk on its $4.41 billion seven-year term loan B and $1.25 billion equivalent euro seven-year term loan B, according to a market source.

The U.S. term loan is talked at SOFR+10 bps CSA plus 375 bps to 400 bps with two 25 bps step-downs based on first-lien net leverage and a 25 bps initial public offering-based step-down, a 0.5% floor and an original issue discount of 99.5, and the euro term loan is talked at Euribor plus 400 bps to 425 bps with three 25 bps step-downs based on first-lien net leverage and a 25 bps initial public offering-based step-down, a 0% floor and a discount of 99.5, the source said.

Both term loans have 101 soft call protection for six months.

The company’s $6.66 billion of credit facilities (B2/B-) also include a $1 billion revolver.

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

McAfee lead banks

JPMorgan Chase Bank, BofA Securities Inc., Credit Suisse Securities (USA) LLC, Barclays, Citigroup Global Markets Inc., HSBC Securities (USA) Inc., RBC Capital Markets, UBS Investment Bank, BMO Capital Markets, KKR Capital Markets, Macquarie Capital (USA) Inc., Mizuho, MUFG, Nomura, Wells Fargo Securities LLC, BNP Paribas Securities Corp., CIBC, Citizens, Credit Agricole, Fifth Third, Intesa Sanpaolo, KeyBanc Capital Markets, Natixis, Societe Generale, Standard Chartered, Stifel, SMBC, TD Securities (USA) LLC and Bank of Nova Scotia are leading McAfee’s credit facilities.

The loans will be used to help fund the buyout of the company by an investor group led by Advent International Corp., Permira Advisers LLC, Crosspoint Capital Partners, Canada Pension Plan Investment Board, GIC Private Ltd. and Abu Dhabi Investment Authority for $26.00 per share in a transaction valued at over $14 billion on an enterprise value basis after giving effect to repayment of McAfee debt.

Closing is expected in the first half of this year, subject to customary conditions, including McAfee shareholder approval and regulatory approvals.

McAfee is a San Jose, Calif.-based provider of online protection for consumers.

White Cap on deck

White Cap Supply emerged with plans to hold a lender call at 3 p.m. ET on Tuesday to launch a $2.312 billion covenant-lite term loan B due October 2027, according to a market source.

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

Commitments are due at noon ET on Feb. 1, 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 from Libor plus 400 bps with a 0.5% Libor floor.

White Cap is a distributor of a diverse mix of concrete accessories and specialty construction and safety products.

Tricor coming soon

Tricor Group will hold a lender call at 9:30 a.m. ET on Wednesday to launch a $760 million seven-year first-lien term loan, a market source remarked.

The first-lien term loan has 101 soft call protection for six months, the source aded.

The company is also getting a $260 million second-lien term loan that has been fully pre-placed.

Barclays, Goldman Sachs Bank USA, HSBC Securities (USA) Inc., Nomura, MUFG, Credit Agricole and Standard Chartered are leading the deal that will be used to help fund the buyout of the company by Baring Private Equity Asia from Permira. The transaction has an enterprise value of $2.76 billion.

Closing is expected in the first half of this year, subject to regulatory approvals.

Tricor is a Hong Kong-based business expansion specialist.

Ankura readies loan

Ankura Consulting Group set a lender call for 1 p.m. ET on Tuesday to launch a fungible $75 million incremental covenant-lite first-lien term loan due March 2028, according to a market source.

Pricing on the incremental term loan is SOFR+CSA plus 450 bps with a 0.75% floor, the source said. Original issue discount talk is not yet available.

Commitments are due on Feb. 4.

Deutsche Bank Securities Inc. is the left lead on the deal that will be used to fund future acquisitions.

In connection with this transaction, pricing on the company’s existing first-lien term loan is being amended to SOFR+CSA plus 450 bps with a 0.75% floor from Libor plus 450 bps with a 0.75% Libor floor.

Ankura is a specialty consulting platform.

Conterra plans call

Conterra Ultra Broadband scheduled a lender call for Tuesday to launch a fungible $55 million incremental term loan B, a market source said.

TD Securities (USA) LLC is leading the deal.

Conterra is a provider of bandwidth infrastructure services.

WHP joins calendar

WHP Global will hold a lender call at 10:30 a.m. ET on Tuesday to launch a $450 million senior secured term loan B, according to a market source.

Morgan Stanley Senior Funding Inc. is the left lead on the deal that will be used to refinance an existing term loan, capitalize the balance sheet for future acquisitions and fund a modest distribution to shareholders.

WHP is a New York-based brand acquisition and development platform.

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