Rinchem, American Trailer, Scientific Games Lottery, Novae, MetroNet, Conterra break

By Sara Rosenberg

New York, Feb. 4 – Rinchem Co. Inc. tightened the spread and original issue discount on its term loan B, Caldic BV finalized issue prices on its U.S. and euro term loans, and American Trailer World Corp. increased the size of its add-on first-lien term loan, and then these deals freed to trade on Friday.

Other deals to make their way into the secondary market during the session included Scientific Games Lottery, Novae LLC, MetroNet and Conterra Ultra Broadband.

In other news, Pediatric Associates Holding Co. LLC accelerated the commitment deadline for its first-lien term loan, and NAPA Management Services Corp. and Culligan International joined the near-term primary calendar.

Rinchem flexes, trades

Rinchem trimmed pricing on its $300 million seven-year term loan B to SOFR plus 450 basis points from SOFR plus 475 bps and adjusted the original issue discount to 99.5 from 99, a market source remarked.

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

The company’s $335 million of credit facilities (B3/B-) also include a $35 million five-year revolver.

Recommitments were due at noon ET on Friday and the term loan B broke later in the day, with levels quoted at 99¾ bid, par ½ offered, another source added.

RBC Capital Markets, Barclays, Deutsche Bank Securities Inc. and Macquarie Capital (USA) Inc. are leading the deal that will be used to help fund the buyout of the company by Stonepeak.

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

Rinchem is an Albuquerque-based specialty warehousing and logistics company.

Caldic updated

Caldic firmed the original issue discount on its €410 million equivalent U.S. seven-year covenant-lite term loan B (B2/B) at 99.75, the wide end of revised talk of 99.75 to 99.875 but tighter than initial talk in the range of 99 to 99.5, and set the issue price on its €580 million euro seven-year covenant-lite term loan B (B2/B) at par, the tight end of revised talk of 99.875 to par and tighter than initial talk of 99.5, according to a market source.

The U.S. term loan is priced at SOFR plus 400 bps with a 25 bps step-down at 4.25x senior secured net leverage and a 0.5% floor, and the euro term loan is priced at Euribor plus 400 bps with 25 bps step-downs at 4.25x and 3.75x senior secured net leverage and a 0% floor.

Both loans have 101 soft call protection for six months, and ticking fees of half the margin from days 46 to 90 and the full margin thereafter.

Earlier in syndication, the total amount of term loan debt was upsized from €950 million equivalent and the breakdown of the U.S. and euro tranche sizes was set, pricing on the U.S. loan firmed at the low end of the SOFR plus 400 bps to 425 bps talk, pricing on the euro term loan finalized at the low end of the Euribor plus 400 bps to 425 bps talk, and one 25 bps step-down based on senior secured net leverage was removed from both term loans.

Caldic frees up

Caldic’s U.S. term loan began trading during the session, with levels quoted at par bid, par ½ offered, another source added.

Goldman Sachs is an active bookrunner on the U.S. term loan. Joint active bookrunners on the euro term loan are BNP Paribas Securities Corp., RBC Capital Markets and UBS Investment Bank. Joint passive bookrunners are Credit Suisse, Morgan Stanley Senior Funding Inc., Barclays, Jefferies LLC, ABN Amro, ING and KKR Capital Markets. RBC is the administrative agent.

The loans will be used to help fund the buyout of the company by Advent International from Goldman Sachs Asset Management, to refinance existing debt, for general corporate purposes and, due to the upsizing, to add cash to the balance sheet.

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

Caldic is a Netherlands-based provider of life sciences and specialty industrial solutions.

American Trailer upsizes, breaks

American Trailer World lifted its fungible add-on first-lien term loan (B3/B) due March 2028 to $275 million from $250 million, and kept pricing at SOFR+CSA plus 375 bps with a 0.75% floor and an original issue discount of 99, a market source remarked.

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

The add-on term loan freed up on Friday, with levels quoted at 99 1/8 bid, 99½ offered, another source added.

Goldman Sachs Bank USA, Barclays, Truist, Wells Fargo Securities LLC and Regions Bank are leading the deal that will be used to repay ABL borrowings and fund a one-time distribution to shareholders.

Bain Capital Private Equity is the sponsor.

American Trailer World is a Richardson, Tex.-based manufacturer and distributor of professional grade trailers, consumer grade trailers, truck equipment and retail parts.

Scientific Games tops OID

Scientific Games Lottery’s $2.1 billion seven-year covenant-lite term loan B emerged in the secondary market in the morning, with levels quoted at 99 7/8 bid, par 1/8 offered, according to a market source.

Pricing on the U.S. term loan is SOFR plus 350 bps with a 0.5% floor and it was sold at an original issue discount of 99.75.

The company is also getting a $500 million equivalent euro (€437 million) seven-year covenant-lite term loan B priced at Euribor plus 400 bps with a 0% floor and issued at a discount of 99.5.

Both term loans (B2/B+/BB-) have 101 soft call protection for six months and ticking fees of half the margin from days 61 to 120 and the full margin thereafter.

During syndication, the U.S. term loan was upsized from $1.77 billion, pricing firmed at the low end of revised talk of SOFR plus 350 bps to 375 bps and down from initial talk of SOFR plus 375 bps to 400 bps, and the discount was tightened from 99.5. Also, the euro term loan was downsized from $750 million equivalent, the spread finalized the low end of revised talk of Euribor plus 400 bps to 425 bps and down from initial talk of Euribor plus 425 bps, and the discount was set at the tight end of the 99 to 99.5 talk.

Scientific Games leads

Deutsche Bank Securities Inc., Barclays, BNP Paribas Securities Corp., Credit Agricole, Macquarie Capital, RBC Capital Markets, BMO Capital Markets, Citigroup Global Markets Inc., Goldman Sachs, HSBC, Morgan Stanley Senior Funding Inc., MUFG, Societe Generale and Wells Fargo Securities LLC are leading Scientific Games Lottery’s term loans.

Proceeds will be used with $800 million of senior notes, downsized from $880 million with the recent U.S. term loan upsizing, and equity to fund the acquisition of the company by Brookfield Business Partners LP for about $5.8 billion.

Closing is expected in the second quarter, subject to customary conditions, including regulatory approvals.

Scientific Games Lottery is a lottery services and technology company.

Novae frees up

Novae’s $350 million seven-year first-lien term loan and $100 million seven-year first-lien delayed-draw for six months term loan started trading as well, with levels quoted at 99¼ bid, par offered, a market source remarked.

Pricing on the term loan debt is SOFR+CSA plus 500 bps with a 0.75% floor and it was sold at an original issue discount of 99. The term loan debt has 101 soft call protection for six months. CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate. Ticking fees on the delayed-draw term loan are half the margin from days 46 to 90 and the full margin thereafter.

The company’s $500 million of credit facilities (B3/B) also include a $50 million five-year revolver.

Jefferies LLC, SMBC and Nomura are the bookrunners on the deal.

Proceeds 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.

MetroNet hits secondary

MetroNet’s fungible $95 million add-on first-lien term loan B (B2/B) due June 2028 broke for trading too, with levels quoted at 99¾ bid, par ¼ offered, a market source said.

Pricing on the add-on term loan is SOFR+CSA plus 375 bps with a 0.75% floor and it was sold at an original issue discount of 99.75. CSA is 11 bps one-month rate, 26 bps three-month rate and 43 bps six-month rate.

Goldman Sachs Bank USA, TD Securities (USA) LLC, Citizens Bank, Fifth Third, KKR Capital Markets and Societe Generale are leading the deal that will be used to repay revolver borrowings.

Oak Hill and KKR Infrastructure are the sponsors.

MetroNet is an Evansville, Ind.-based provider of fiber optic high-speed broadband, video and voice services.

Conterra starts trading

Another deal to free up for trading was Conterra Ultra Broadband’s fungible $55 million incremental term loan B, with levels quoted at 99½ bid, par offered, according to a market source.

Pricing on the incremental term loan is SOFR+CSA plus 475 bps with a 1% floor and it was sold at an original issue discount of 99.5. 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 until June.

During syndication, the discount on the incremental term loan was tightened from 99.25.

TD Securities (USA) LLC is leading the deal that will be used to repay revolver borrowings, add cash to the balance sheet to fund growth and pay related fees and expenses.

With this transaction, pricing on the company’s existing term loan is being switched to SOFR+CSA plus 475 bps with a 1% floor from Libor plus 475 bps with a 1% Libor floor.

Conterra is a provider of bandwidth infrastructure services.

Pediatric Associates accelerated

Back in the primary market, Pediatric Associates moved up the commitment deadline for its $600 million seven-year covenant-lite first-lien term loan (B2/B) to 5 p.m. ET on Monday from 5 p.m. ET on Thursday, a market source said.

Talk on the term loan is Libor plus 350 bps with a 0.5% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Deutsche Bank Securities Inc. and Citizens Bank are leading the deal that will be used to fund a recapitalization and a partial equity sale of the business.

Pediatric Associates is a pediatric practice management company.

NAPA readies deal

NAPA Management Services set a lender call for 11 a.m. ET on Monday to launch a $610 million seven-year senior secured term loan B, according to a market source.

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

Barclays, SVB Leerink and MUFG are leading the deal that will be used to refinance existing debt and fund cash to the balance sheet.

American Securities is the sponsor.

NAPA is a Melville, N.Y.-based outsourced anesthesia and perioperative management services company.

Culligan timing emerges

Culligan scheduled a lender call for 10 a.m. ET on Monday to launch its previously announced $1.35 billion of senior secured term loans, a market source remarked.

The debt consists of a $1.1 billion term loan B and a $250 million delayed-draw term loan.

Morgan Stanley Senior Funding Inc. is the left lead on the deal that will be used to fund the acquisition of Waterlogic Group Holdings, for general corporate purposes and to pay related fees and expenses.

Closing is expected in the second half of this year, subject to regulatory approvals and other customary conditions.

Culligan is a Rosemont, Ill.-based provider of water treatment products and services. Waterlogic is a Maidenhead, U.K.-based designer, manufacturer, distributor and service provider of drinking water dispensers and accessories.

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