kdc/one, Veritext, Talen, Curium updates surface; Learning Care, Invenergy accelerated

By Sara Rosenberg

New York, Aug. 2 – In the primary market on Wednesday, kdc/one upsized its U.S. and euro term loans while cancelling plans for a bond offering, and reversed course on a recent pricing flex, and Veritext increased the size of its term loan B, modified spread talk and tightened the original issue discount.

Also, Talen Energy Supply LLC changed the issue price on its add-on term loan B, Curium BidCo Sarl upsized its U.S. and euro term loans, trimmed spreads and tightened original issue discounts, and Learning Care Group Inc. and Invenergy Thermal Operating I LLC moved up the commitment deadlines for their term loans.

Furthermore, Advisor Group Holdings Inc., First Brands Group LLC and Consilio released price talk with launch, and ASGN Inc., NorthRiver Midstream Finance LP and SonicWall joined this week’s primary calendar.

kdc/one revised

kdc/one upsized its U.S. five-year first-lien term loan to roughly $1,003,500,000 from $600 million and its euro five-year first-lien term loan to €440 million from roughly $400 million equivalent, and terminated plans for a $500 million senior secured notes offering as a result of strong demand in the loan market, a market source said.

Additionally, pricing on the U.S. term loan was moved to SOFR plus 500 basis points from revised talk of SOFR plus 475 bps but back in line with initial talk of SOFR plus 500 bps, and pricing on the euro term loan was changed to Euribor plus 525 bps from revised talk of Euribor plus 500 bps but back in line with initial talk of Euribor plus 525 bps, the source continued.

Both term loans (B3/B-/B) still have a 0% floor, an original issue discount of 97 and 101 soft call protection for six months.

Previously in syndication, the discount on both term loans was firmed at the tight end of the 96 to 97 talk.

Recommitments are due at 11 a.m. ET on Thursday, with allocations expected thereafter, the source added.

kdc/one lead banks

UBS Investment Bank, Morgan Stanley Senior Funding Inc., BMO Capital Markets, JPMorgan Chase Bank, Goldman Sachs Bank USA, Deutsche Bank Securities Inc., Citizens, Natixis, RBC Capital Markets and KKR Capital Markets are leading kdc/one’s term loans.

The term loans will be used to refinance the company’s existing first-lien credit facilities.

KDC US Holdings Inc. is the U.S. borrower, and kdc/one Development Corp. Inc. is the Canadian borrower.

kdc/one is a Longueuil, Quebec-based provider of value-added solutions to brands in the home care and beauty and personal care categories.

Veritext reworked

Veritext raised its seven-year term loan B (B2/B/B+) to $940 million from $720 million, revised price talk to a range of SOFR plus 425 bps to 450 bps from just SOFR plus 450 bps, and moved the original issue discount to 99 from talk in the range of 97 to 97.5, according to a market source.

As before, the term loan has a 25 bps step-down at 0.5x inside closing date first-lien net leverage, a 25 bps step-down upon an initial public offering, a 0.5% floor and 101 soft call protection for six months.

Commitments were due at 5 p.m. ET on Wednesday, accelerated from 10 a.m. ET on Thursday, and allocations are expected on Thursday, the source added.

Goldman Sachs Bank USA, JPMorgan Chase Bank, BNP Paribas Securities Corp., Jefferies LLC, Macquarie Capital (USA) Inc. and KKR Capital Markets are leading the deal that will be used with $500 million of senior secured notes, downsized from $720 million, to refinance the company’s existing capital structure and add cash to the balance sheet.

CVC, GIC and Leonard Green Partners are the sponsors.

Veritext is a Livingston, N.J.-based deposition service provider, assisting law firms and corporations in facilitating litigation proceedings.

Talen tweaked

Talen Energy Supply modified the original issue discount on its fungible $290 million add-on senior secured term loan B due May 2030 to 99.5 from talk in the range of 98.5 to 99, a market source remarked.

Pricing on the add-on term loan matches existing term loan B pricing at SOFR plus 450 bps with a 0.5% floor, and the debt is getting 101 soft call protection for six months.

Recommitments were due at 5 p.m. ET on Wednesday and allocations are expected on Thursday morning, the source added.

Citigroup Global Markets Inc. is the left lead on the deal that will be used to repay the company’s existing LMBE MC term loan.

Closing is expected the week of Aug. 7.

Talen Energy is a Houston-based power generation and infrastructure company.

Curium updated

Curium upsized its U.S. term loan B due July 2029 to $1.07 billion from $1.066 billion and its euro term loan B due July 2029 to €325 million from €300 million, reduced pricing on the U.S. loan to SOFR plus 450 bps from SOFR plus 475 bps and removed the 25 bps step-down at 3.5x senior secured net leverage, cut pricing on the euro loan to Euribor plus 450 bps from Euribor plus 475 bps, and tightened the original issue discount on both term loans to 99 from 98.5, according to a market source.

The U.S. term loan still has a 0% floor, the euro term loan still has 25 bps step-downs at 3.5x and 3x senior secured net leverage, and a 0% floor, and both term loans still have 101 soft call protection for six months.

Commitments were due end of day on Wednesday, the source added.

JPMorgan Chase Bank is the sole physical bookrunner on the U.S. term loan, and Deutsche Bank Securities Inc. is the sole physical bookrunner on the euro term loan. JPMorgan is the administrative agent.

The loans will be used to amend and extend an existing $478 million term loan due July 2026, an existing $590 million term loan due December 2027 and an existing €300 million term loan due July 2026, and to pay transaction fees and expenses.

Curium is a nuclear medicine company with headquarters in London and Paris.

Learning Care accelerated

Learning Care Group moved up the commitment deadline for its $900 million five-year term loan (B2/B) to 5 p.m. ET on Thursday from 5 p.m. ET on Tuesday, according to a market source.

Talk on the term loan is SOFR plus 475 bps with a 0.5% floor, an original issue discount of 97 to 97.5 and 101 soft call protection for six months.

JPMorgan Chase Bank is leading the deal that will be used to refinance existing first- and second-lien term loans and to pay related fees and expenses.

Learning Care is a Novi, Mich.-based provider of early education and childcare services.

Invenergy changes deadline

Invenergy accelerated the commitment deadline for its $325 million six-year term loan B and $25 million six-year term loan C to 1 p.m. ET on Thursday from noon ET on Friday, a market source said.

Talk on the term loans, which are being sold as a strip, is SOFR+CSA plus 450 bps to 475 bps with a 1% floor, an original issue discount of 97 and 101 soft call protection for six months. CSA is ARRC standard of 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

The company’s $500 million of credit facilities (Ba2/BB-) also include a $150 million five-year revolver.

MUFG, BofA Securities Inc. and BMO Capital Markets are leading the deal that will be used to refinance existing debt, and the term loan C will prefund letters of credit.

Invenergy Thermal is a 2.29 GW gas-fired power portfolio consisting of four operating plants located across North America. The portfolio is owned via a 50/50 joint venture between Invenergy Clean Power LLC and InfraBridge’s Global Infrastructure Fund Platform.

Advisor Group guidance

Advisor Group held its lender call on Wednesday afternoon and announced price talk on its $1,647,500,000 first-lien term loan due August 2028 at SOFR plus 450 bps with a 0% floor and an original issue discount of 98.5, according to a market source.

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

UBS Investment Bank is the left lead on the deal that will be used to extend a $1,447,500,000 first-lien term loan from August 2026 and to provide cash to the balance sheet for general corporate purposes, including mergers and acquisitions.

The company is also seeking to extend the maturity of its existing revolving credit facility to May 2028.

Commitments/consents are due at noon ET on Aug. 10.

Advisor Group, doing business as Osaic Holdings Inc., is a provider of a multi-custodial, wealth management model for financial advisers.

First Brands launches

First Brands Group launched during the session a fungible $350 million incremental first-lien term loan due March 30, 2027 talked with an original issue discount talk of 97, a market source said.

Like the existing term loan, the incremental term loan is priced at SOFR+CSA plus 500 bps with a 1% floor. CSA is 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

Commitments are due at 2 p.m. ET on Aug. 9, the source added.

Jefferies LLC is leading the deal that will be used to fund cash to the balance sheet for liquidity to support bids for new business and other growth initiatives including mergers and acquisitions.

Pro forma for the transaction, the term loan will total about $1.071 billion.

First Brands is a Rochester, Mich.-based automotive aftermarket platform offering comprehensive solutions for consumable maintenance and mission-critical repair parts.

Consilio talk

Consilio came out with talk of SOFR+CSA plus 475 bps with a 0.5% floor, an original issue discount of 97 and 101 soft call protection for six months on its $200 million incremental first-lien term loan (B-) due 2028 that launched with a call in the morning, a market source remarked. CSA is 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

Commitments are due at 5 p.m. ET on Aug. 10, the source added.

KKR Capital Markets and Stone Point are leading the deal, and Blackstone Credit will be a lead investor.

The term loan will be used to fund the acquisition of Oxo, a provider of legal services.

Consilio is a Washington, D.C.-based provider of eDiscovery and document review solutions.

ASGN on deck

ASGN set a lender call for 1p.m. ET on Thursday to launch a $500 million seven-year covenant-lite term loan B, according to a market source.

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

Commitments are due at noon ET on Aug. 17, the source added.

Wells Fargo Securities LLC is the left lead on the deal that will be used to refinance the company’s existing term loan B due 2025.

ASGN is a Glen Allen, Va.-based provider of IT and professional services in the technology, digital, creative, engineering and life sciences fields across commercial and government sectors.

NorthRiver joins calendar

NorthRiver Midstream will hold a lender call at 10:30 a.m. ET on Thursday to launch an $850 million seven-year covenant-lite term loan B (Ba3), a market source remarked.

BMO Capital Markets, RBC Capital Markets and others are leading the deal. RBC is the agent.

The term loan will be used to refinance an existing term loan due October 2025.

NorthRiver Midstream is a Canadian gas gathering and processing business.

SonicWall coming soon

SonicWall scheduled a lender call for noon ET on Thursday to launch an amendment, extension and upsizing of its existing first-lien credit facilities, according to a market source.

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

There will be a cashless roll option for existing lenders.

UBS Investment Bank is the left lead on the deal.

Funds from the upsized amount will be used to refinance a portion of the company’s second-lien term loan and to pay associated premiums, fees and expenses.

The borrowers are SonicWall US Holdings Inc. and SonicWall International LLC.

SonicWall is a Milpitas, Calif.-based provider of network security solutions focused on securing mid-market enterprises as well as campus and distributed networks.

Fund flows

In other news, actively managed loan fund flows on Tuesday were positive $213 million and loan ETFs were positive $2 million, market sources said.

Actively managed high-yield fund flows on Tuesday were positive $485 million and high-yield ETFs were negative $689 million, sources added.

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