PlayCore, ECL, CHG, Entegris, StandardAero, US Foods break; Tecta, Michael Baker revised

By Sara Rosenberg

New York, Aug. 17 – PlayCore reduced pricing on its first-lien term loan B and adjusted the issue price, and ECL Entertainment LLC set the spread on its term loan B at the low end of talk and made some modifications to documentation, and then these deals freed to trade on Thursday.

Also, CHG Healthcare increased the size of its incremental first-lien term loan and finalized the spread at the low end of revised guidance before breaking for trading, and deals from Entegris Inc., StandardAero (Dynasty Acquisition Co.) and US Foods Inc. hit the secondary market as well.

In more happenings, Tecta America Corp. upsized its incremental term loan B, trimmed pricing and tightened the original issue discount, and Michael Baker International LLC downsized its incremental first-lien term loan.

PlayCore flexed, trades

PlayCore tightened the spread on its $640 million first-lien term loan B (B2/B) due March 2027 to SOFR plus 400 basis points from talk in the range of SOFR plus 425 bps to 450 bps and the original issue discount to 99 from 98, a market source said.

As before, the term loan has a 1% floor and 101 soft call protection for six months.

Recommitments were due at 1 p.m. ET on Thursday and the term loan freed to trade later in the day, with levels quoted at 99¼ bid, par ¼ offered, a trader added.

Goldman Sachs Bank USA is the left lead on the deal that will be used to refinance the company’s existing $396 million first-lien term loan and $145 million second-lien term loan, and to add cash to the balance sheet for mergers and acquisitions.

Court Square Capital Partners is the sponsor.

PlayCore is a Chattanooga, Tenn.-based designer, manufacturer and marketer of commercial playground, park, recreation and specialty equipment and related complementary products.

ECL updated, frees

ECL Entertainment firmed pricing on its $380 million seven-year covenant-lite term loan B (B2/B+) at SOFR plus 475 bps, the low end of the SOFR plus 475 bps to 500 bps talk, according to a market source.

Additionally, the ratings-based grid and inside maturity debt basket were removed from the term loan, the excess cash flow sweep, general debt basket, general liens basket, general investments basket, consolidated EBITDAM definition and junior debt prepayment covenant were all revised, and quarterly lender calls are now required if requested by the majority of term loan lenders, the source continued.

The 0.75% floor, original issue discount of 98 and 101 soft call protection for six months on the term loan were unchanged.

Recommitments were due at 10:30 a.m. ET on Thursday and the term loan broke in the afternoon, with levels quoted at 98¾ bid, 99¾ offered, a trader added.

Deutsche Bank Securities Inc. and Citizens are leading the deal. Citizens is the administrative agent.

Proceeds will be used with a new revolver to refinance the company’s existing capital structure.

ECL is a regional gaming company focused on the Nashville, Knoxville and Southern Kentucky markets.

CHG tweaked, breaks

CHG Healthcare raised its incremental first-lien term loan (B2/B) due September 2028 to $580 million from $530 million and firmed pricing at SOFR plus 375 bps, the low end of revised talk of SOFR plus 375 bps to 400 bps and down from initial talk in the range of SOFR plus 400 bps to 425 bps, a market source remarked.

The term loan still has a 0.5% floor, an original issue discount of 99, 101 soft call protection for six months, and ticking fees of half the margin from days 46 to 90 and the full margin thereafter.

Previously in syndication, the discount on the term loan was changed from 98.5.

Commitments continued to be due at 10 a.m. ET on Thursday and the incremental term loan hit the secondary market in the afternoon, with levels quoted at 99¼ bid, par offered, another source added.

Goldman Sachs Bank USA, JPMorgan Chase Bank, Barclays, BMO Capital Markets and Citigroup Global Markets Inc. are leading the deal that will be used to refinance the company’s existing second-lien notes and fund a dividend.

Ares, Leonard Green & Partners and GIC are the sponsors.

CHG, a Salt Lake City-based private health care staffing company, expects to close on the loan on Oct. 2.

Entegris hits secondary

Entegris’ $2,318,499,072.05 senior secured covenant-lite first-lien term loan B (Baa3/BB/BBB-) due July 6, 2029 began trading as well, with levels quoted at par bid, par 3/8 offered, a trader said.

Pricing on the term loan is SOFR plus 250 bps with a 0% floor and it was issued at par. The debt has 101 soft call protection for six months and 0 bps CSA.

Morgan Stanley Senior Funding Inc., Barclays, BofA Securities Inc., Citigroup Global Markets Inc., Wells Fargo Securities LLC, PNC Bank, Truist and Goldman Sachs Bank USA are leading the deal that will be used to reprice an existing term loan B due 2029 down from SOFR plus 275 bps with a 0% floor.

Closing is expected during the week of Aug. 21.

Entegris is a Billerica, Mass.-based supplier of advanced materials and process solutions for the semiconductor and other high-tech industries.

StandardAero tops OID

StandardAero’s U.S. borrower’s $1,802,500,000 term loan B-1 due August 2028 and Canadian borrower’s $772.5 million term loan B-2 due August 2028 also freed up, with levels on the strip of debt quoted at 99½ bid, 99¾ offered, according to a trader.

Pricing on the term loans (B3/B-) is SOFR plus 400 bps with a 25 bps pricing step-down upon an initial public offering and a 0% floor. The debt was sold at an original issue discount of 99 and has 101 soft call protection for six months.

During syndication, pricing on the term loans was lowered from SOFR plus 425 bps and the discount was revised from 98.5.

UBS Investment Bank, Credit Suisse Securities (USA) LLC, RBC Capital Markets, Carlyle, CIBC, Barclays, Macquarie Capital (USA) Inc., BofA Securities Inc., Wells Fargo Securities LLC, Citizens Bank, HSBC Securities (USA) Inc., Societe Generale, Santander, Mizuho, Goldman Sachs Bank USA, Jefferies LLC and Nomura are leading the deal.

StandardAero extending

StandardAero will use the new term loans to amend and extend an existing first-lien term loan by about 2½ years and refinance an existing 2021 incremental first-lien term loan into the new tranche.

The company is also getting an extended $150 million revolver due May 2028.

StandardAero is a Scottsdale, Ariz.-based provider of aircraft engine maintenance, repair and overhaul services for the aerospace and defense industries.

US Foods frees up

US Foods’ $722 million covenant-lite term loan (Ba3/BB+) due Nov. 22, 2028 broke too, with levels quoted at par 1/8 bid, par ½ offered, a market source remarked.

Pricing on the term loan is SOFR+CSA plus 250 bps with a 0% floor and it was issued at par. CSA is 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate. The loan has 101 soft call protection for six months.

Citigroup Global Markets Inc., Wells Fargo Securities LLC, BofA Securities Inc., JPMorgan Chase Bank, Truist, US Bank, Fifth Third, Rabobank, PNC Bank, Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc., TD Securities (USA) LLC, MUFG and KKR Capital Markets are leading the deal that will be used to reprice an existing $722 million 2021 incremental term loan due Nov. 22, 2028 down from SOFR+CSA plus 275 bps with a 0% floor.

Closing is expected during the week of Aug. 21.

US Foods is a Rosemont, Ill.-based foodservice distributor.

Tecta reworked

Back in the primary market, Tecta America lifted its non-fungible incremental covenant-lite term loan B (B2/B) due April 10, 2028 to $210 million from $200 million, cut pricing to SOFR plus 425 bps from SOFR plus 450 bps and adjusted the original issue discount to 98.5 from 98, according to a market source.

As before, the term loan has a 0.75% floor, CSA of 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate, and 101 soft call protection for six months.

Recommitments were due at noon ET on Thursday, the source added.

Wells Fargo Securities LLC and RBC Capital Markets LLC are leading the deal that will be used to repay an existing second-lien term loan, to pre-fund acquisitions under letters of intent, to pay related fees and expenses, and, due to the upsizing, for general corporate purposes.

Tecta is a Rosemont, Ill.-based provider of commercial roofing services.

Michael Baker downsized

Michael Baker reduced its fungible incremental first-lien term loan (B2/B) due December 2028 to $110 million from $125 million, a market source said.

The incremental term loan is priced at SOFR plus 500 bps with a 0.75% floor and an original issue discount of 98.8.

UBS Investment Bank, KeyBanc Capital Markets and Macquarie Capital (USA) Inc. are leading the deal that will be used to fund an acquisition and to repay borrowings under the company’s ABL facility.

Pro forma for the transaction, the term loan will total $405.5 million.

Michael Baker is a Pittsburgh-based provider of engineering and consulting services, focused on complex infrastructure challenges.

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