Vialto frees to trade; TouchTunes accelerated; Five Star, Paradigm, Mariner release talk

By Sara Rosenberg

New York, April 19 – Vialto Partners increased the size of its first-lien term loan and tightened the original issue discount, and then the debt made its way into the secondary market on Tuesday.

Also, TouchTunes (TA TT Buyer LLC) moved up the commitment deadline for its first-lien term loan, and Five Star Holding, Paradigm (Outcomes Group Holdings Inc.) and Mariner Wealth Advisors announced price talk with launch.

Vialto revised, breaks

Vialto Partners raised its seven-year first-lien term loan to $969 million from $950 million and modified the original issue discount to 97.5 from talk in the range of 96 to 97, according to a market source.

As before, the term loan is priced at SOFR plus 475 basis points with a 0.5% floor and has 101 soft call protection for six months.

Recommitments were due at 3 p.m. ET on Tuesday, and the term loan began trading later in the day, with levels quoted at 98 bid, 98½ offered, another source added.

JPMorgan Chase Bank, Deutsche Bank Securities Inc., UBS Investment Bank, BMO Capital Markets Corp., BNP Paribas Securities Corp., Mizuho Financial Group Inc., RBC Capital Markets LLC, Societe Generale, HSBC Securities (USA) Inc., ING and Santander are leading the deal that will be used to help fund the buyout of the company by Clayton, Dubilier & Rice from PwC and, due to the upsizing, to cover OID costs.

Closing is expected in the first half of this year, subject to customary conditions.

Vialto, previously known as PwC’s Global Mobility Tax and Immigration Services business, is a provider of compliance, consulting and technology services for employers and their mobile employees.

TouchTunes tweaks timing

TouchTunes accelerated the commitment deadline for its $385 million seven-year covenant-lite first-lien term loan (B1/B-) to 5 p.m. ET on Wednesday from Thursday, a market source remarked.

Talk on the term loan is SOFR plus 525 bps with a 0.5% floor, an original issue discount of 98 to 98.5 and 101 soft call protection for six months.

Citizens Bank is leading the deal that will be used to help fund the buyout of the company by TA Associates from Searchlight Capital Partners LP and Newlight Partners LP.

TouchTunes is a New York-based in-venue, interactive music and entertainment platform.

Five Star sets talk

Five Star Holding held its lender call on Tuesday morning and released talk on its $630 million seven-year first-lien term loan (B) at SOFR plus 450 bps with 25 bps step-downs at 0.5x and 0.75x inside closing date first-lien net leverage, a 0.5% floor, an original issue discount of 98 to 98.5 and 101 soft call protection for six months, according to a market source.

Commitments are due at noon ET on April 28, the source added.

The company is also getting a $250 million privately placed second-lien term loan (CCC+).

Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc., Neuberger Berman, Credit Suisse Securities (USA) LLC and KKR Capital Markets are leading the deal that will be used to help fund the buyout of the company by The Jordan Co. and pay related fees and expenses.

Closing is expected in May.

Five Star is a Houston-based integrated flexible packaging company.

Paradigm guidance

Paradigm came out with price talk on its $170 million of term loans shortly before its 1 p.m. ET lender call began, a market source said.

Talk on the non-fungible $110 million incremental first-lien term loan (B) due October 2025 is SOFR+CSA plus 450 bps to 475 bps with a 0.5% floor and an original issue discount of 98, and talk on the non-fungible $60 million incremental second-lien term loan (CCC+) due October 2026 is SOFR+CSA plus 800 bps to 825 bps with a 0.5% floor and a discount of 98, the source continued.

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

The incremental first-lien term loan has 101 soft call protection for six months, and the incremental second-lien term loan has call protection of 102 in year one and 101 in year two.

Paradigm leads

Credit Suisse Securities (USA) LLC and Truist are leading Paradigm’s incremental first-and second-lien term loans.

Commitments are due at 5 p.m. ET on April 26.

The loans will be used to repay revolver borrowings and fund a distribution to shareholders.

As part of this transaction, the revolver maturity is being extended to April 2025 from October 2023.

Paradigm is a Walnut Creek, Calif.-based provider of complex and catastrophic case management to the workers’ compensation industry.

Mariner proposed terms

Mariner Wealth Advisors launched on its afternoon call its fungible $175 million of term loans at talk of SOFR plus 325 bps with a 0.5% floor and an original issue discount of 98.56 to 99, a market source remarked.

The debt is split between a $125 million term loan and a $50 million delayed-draw term loan.

Commitments are due at 2 p.m. ET on April 25, the source added.

BMO Capital Markets, RBC Capital Markets and UBS Investment Bank are leading the deal that will be used to fund near-term acquisitions.

Mariner Wealth Advisors is an investment adviser.

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