Blackstone Mortgage term loan B-4 breaks; Barracuda Networks, Lightstone price talk surfaces

By Sara Rosenberg

New York, May 2 – Blackstone Mortgage Trust Inc. increased the size of its incremental term loan B-4 and firmed the spread at the wide end of guidance, and then the debt made its way into the secondary market on Monday.

In other news, Barracuda Networks Inc. and Lightstone Holdco LLC disclosed price talk with launch, and Therm-O-Disc Inc., BRP Inc. (Bombardier Recreational Products Inc.) and Cambrex Corp. joined this week’s primary calendar.

Blackstone upsized, frees

Blackstone Mortgage Trust raised its non-fungible incremental term loan B-4 due 2029 to $500 million from $400 million and set pricing at SOFR plus 350 basis points, the high end of the SOFR plus 325 bps to 350 bps talk, according to a market source.

As before, the term loan has a 0.5% floor, an original issue discount of 98.5 and 101 soft call protection for six months, and no CSA.

Recommitments were due at 4:30 p.m. ET on Monday and the debt began trading shortly thereafter, with levels quoted at 98½ bid, 99 offered, another source added.

JPMorgan Chase Bank is leading the deal that will be used to repay secured debt.

Blackstone Mortgage Trust is a New York-based real estate finance company.

Barracuda guidance

Barracuda Networks held its lender call on Monday afternoon and announced price talk on its $1.115 billion seven-year first-lien term loan and $455 million eight-year second-lien term loan, a market source remarked.

Talk on the first-lien term loan is SOFR plus 400 bps to 425 bps with a 0.5% floor and an original issue discount of 99, and talk on the second-lien term loan is SOFR plus 675 bps to 700 bps with a 0.5% floor and a discount of 99, the source said.

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

The company’s $1.72 billion of credit facilities also include a $150 million revolver.

Commitments are due at noon ET on May 16, the source added.

UBS Investment Bank, KKR Capital Markets, Barclays, Jefferies LLC, PSP, SVB, Stone Point and Wells Fargo Securities LLC are leading the deal, with UBS left on the first-lien and KKR left on the second-lien.

The new debt will help fund the buyout of the cybersecurity solutions company by KKR from Thoma Bravo, which is expected to close this year, subject to customary conditions.

Lightstone talk

Lightstone came out with talk of SOFR plus 575 bps with a 1% floor and an original issue discount of 99 on its roughly $1.641 billion amended and extended term loan B due Jan. 30, 2027 and roughly $93 million amended and extended term loan C due Jan. 30, 2027 that launched with an afternoon call, a market source said.

The amended and extended senior secured term loans (B2) have hard call protection of 103 in year one, 102 in year two and 101 in year three.

Commitments and consents are due at noon ET on Friday, the source added.

Jefferies LLC is leading the deal.

The amendment and extension has received consent from the adhoc lender group representing over 80% of the outstanding loans. The extension is subject to a minimum participation threshold of 90%.

The company is offering to pay down $100 million of both the term loan B and the term loan C at par on a pro rata basis for existing lenders only.

Lightstone, a 50/50 joint venture owned by affiliates of Blackstone Group LP and ArcLight Capital Partners LLC, consists of a 5.3 GW portfolio of four generation facilities located in the PJM Interconnection market.

Therm-O-Disc on deck

Therm-O-Disc set a lender call for 11 a.m. ET on Tuesday to launch $520 million of credit facilities, according to a market source.

The facilities consist of a $65 million revolver, a $355 million senior secured first-lien term loan and a $100 million second-lien term loan, the source said.

Morgan Stanley Senior Funding Inc. is the left lead on the deal that will be used with cash on hand to fund the buyout of the company by One Rock Capital Partners LLC from Emerson and to pay related fees and expenses.

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

Therm-O-Disc is a Mansfield, Ohio-based designer and manufacturer of safety-critical sensors, thermal cutoffs and sealed connecting components primarily used in heating, ventilation and air conditioning, appliance, water heater, industrial, aerospace & defense, and transportation applications.

BRD joins calendar

BRP will hold a lender call at 4 p.m. ET on Tuesday to launch a non-fungible $500 million incremental term loan, a market source remarked.

RBC Capital Markets and Citigroup Global Markets Inc. are leading the deal that will be used for general corporate purposes, including to repay outstanding revolver borrowings, to fund an issuer bid to purchase for cancellation up to C$250 million of its subordinate voting shares through a “modified Dutch auction”, and to pay related fees and expenses.

BRP is a Valcourt, Quebec-based designer, manufacturer, distributor and marketer of motorized recreational vehicles and powersports engines.

Cambrex readies loan

Cambrex scheduled a lender call for 9 a.m. ET on Tuesday to launch a fungible $75 million incremental first-lien term loan due December 2026, according to a market source.

Pricing on the incremental term loan is SOFR+10 bps CSA plus 350 bps with a 0.75% floor, the source said. Original issue discount talk is not yet available.

RBC Capital Markets is leading the deal that will be used to fund a small acquisition, to repay revolver drawings and to pay related fees and expenses.

In connection with this transaction, pricing on the company’s existing roughly $917 million first-lien term loan will transaction to SOFR+10 bps CSA plus 350 bps with a 0.75% floor from Libor plus 350 bps with a 0.75% Libor floor.

Cambrex is an East Rutherford, N.J.-based small molecule company providing drug substance, drug product and analytical services.

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