Fitness International breaks; Elanco, Catalent loans rise; Waystar updated; GoodRx pulled

By Sara Rosenberg

New York, Feb. 5 – Fitness International LLC lifted the spread on its term loan B and finalized the original issue discount at the wide end of guidance, and then the debt made its way into the secondary market on Monday.

Also, Elanco Animal Health Inc.’s term loan B headed higher in trading following news that the debt would be paid down with proceeds from the sale of the company’s aqua business, and Catalent Inc.’s term loan rose as the company announced it is being purchased by Novo Holdings.

In more happenings, Waystar tightened the original issue discount on its first-lien term loan, and GoodRx withdrew its term loan B from market.

Furthermore, PlayCore, Genesys, Kantar, Alterra Mountain Co. and Service Logic released price talk in connection with their lender calls, and Trulite Holding Corp. joined this weeks’ new-issue calendar.

Fitness revised, frees

Fitness International raised pricing on its $675 million five-year term loan B to SOFR plus 525 basis points from SOFR plus 475 bps and set the original issue discount at 97, the wide end of the 97 to 98 talk, according to a market source.

As before, the term loan B has a 0% floor and 101 soft call protection for six months.

Commitments were due at noon ET on Monday and the term loan began trading in the afternoon, with levels quoted at 97 1/8 bid, 97 5/8 offered, another source added.

The company’s $1.275 billion of credit facilities (B1/B+) also include a $300 million revolver and a $300 million term loan A.

BofA Securities Inc., Wells Fargo Securities LLC, BMO Capital Markets, MUFG, JPMorgan Chase Bank and Antares Capital are leading the deal that will be used with cash on hand to refinance the company’s existing credit facilities.

Fitness International is an Irvine, Calif.-based owner-operator of fitness clubs.

Elanco strengthens

Elanco Animal Health’s term loan B moved up to 98¾ bid, 99¼ offered on Monday from 97 7/8 bid, 98 3/8 offered on Friday after the company announced it plans to repay some of the debt using the expected $1.05 billion to $1.1 billion after-tax cash proceeds from the sale of its aqua business to Merck Animal Health, according to a market source.

Under the agreement, Merck Animal Health is buying the aqua business for about $1.3 billion in cash.

Closing is expected around mid-year, subject to regulatory approvals and customary conditions.

Elanco Animal Health is a Greenfield, Ind.-based animal health company that develops products and knowledge services to prevent and treat disease in food animals and pets.

Catalent gains ground

Catalent’s term loan moved up to 99¾ bid, par ¼ offered on Monday from 98¼ bid, 99¼ offered on Friday following news that the company is being purchased by Novo Holdings, a market source said.

Under the agreement, Catalent is being bought for $63.50 per share in cash. The transaction has an enterprise value of $16.5 billion.

Closing is expected towards the end of the year, subject to customary conditions, including approval by Catalent stockholders and receipt of required regulatory approvals.

Catalent is a Somerset, N.J.-based provider of development sciences and manufacturing platforms for medicines. Novo Holdings is an investor in life science companies.

Waystar tightened

Back in the primary market, Waystar modified the original issue discount on its $2.2 billion first-lien term loan (B3/B-/BB-) due May 2029 to 99.875 from 99.5, according to a market source.

Pricing on the term loan remained at SOFR plus 400 bps with a 25 bps step-down at 0.5x inside closing leverage and a 25 bps step-down upon an initial public offering, and a 0% floor, and the debt still has 101 soft call protection for six months.

Commitments were due at 5 p.m. ET on Monday, the source added. The original deadline had been scheduled for noon ET on Tuesday.

JPMorgan Chase Bank, Barclays, BofA Securities Inc., Deutsche Bank Securities Inc., Goldman Sachs Bank USA and RBC Capital Markets are leading the deal that will be used to refinance an existing $1.731 billion first-lien term loan due 2026 and a $469 million privately placed second-lien term loan due 2027.

Waystar is a provider of health care payments software.

GoodRx pulled

GoodRx withdrew from market its $662 million seven-year term loan B (B1) that was talked at SOFR plus 300 bps to 325 bps with a 0% floor, an original issue discount of 99.5 and 101 soft call protection for six months, a market source remarked.

Goldman Sachs Bank USA was the left lead on the deal, which was going to be used to refinance an existing first-lien term loan due October 2025.

Silver Lake Partners and Francisco Partners are the sponsors.

GoodRx is a Santa Monica, Calif.-based consumer-focused digital health care platform.

PlayCore guidance

PlayCore held its lender call on Monday morning and announced talk on its $1.05 billion six-year term loan B (B2/B) at SOFR plus 450 bps with a 1% floor, an original issue discount of 98.5 and 101 soft call protection for six months, according to a market source.

Commitments are due at noon ET on Feb. 14, the source added.

Goldman Sachs Bank USA is the left lead on the deal that will be used to refinance the company’s existing $640 million first-lien term loan, fund a distribution to shareholders and pay related fees and expenses.

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.

Genesys holds call

Genesys held a lender call at 1 p.m. ET, launching an $800 million incremental term loan B due December 2027 at talk of SOFR+CSA plus 400 bps with a 0.75% floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months, a market source said. CSA is 11 bps one-month rate, 26 bps three-month rate and 43 bps six-month rate.

Commitments are due at 5 p.m. ET on Feb. 13, the source added.

Goldman Sachs Bank USA is the left lead on the deal that will be used to fund a distribution to shareholders.

Permira and Hellman & Friedman are the sponsors.

Genesys is a Daly City, Calif.-based provider of AI-powered experience orchestration.

Kantar comes to market

Kantar held a lender call at 2 p.m. ET on Monday to launch a $650 million term loan B due February 2029 talked at SOFR+CSA plus 475 bps to 500 bps with a 0% floor, an original issue discount of 99 and 101 soft call protection for one year, according to a market source. CSA is 11 bps one-month rate, 26 bps three-month rate and 43 bps six-month rate.

Commitments are due at 5 p.m. ET on Feb. 12, the source added.

Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc., BofA Securities Inc., Barclays, HSBC Securities (USA) Inc., Mizuho, NatWest, Nomura, RBC Capital Markets, UBS Investment Bank and Jefferies LLC are leading the deal that will be used for a partial amendment and extension of the company’s existing $500 million and $345 million term loans due December 2026.

Bain Capital is the sponsor.

Kantar is a London-based provider of global data, research, consulting, analytics products and services.

Alterra shops add-on

Alterra Mountain emerged in the morning with plans to hold a lender call at 2 p.m. ET to launch a fungible $200 million add-on term loan B due May 2030 talked with an original issue discount of 99.75, and a ticking fee of half the margin for days 46 to 90 and the full margin thereafter, a market source remarked.

Like the company’s existing term loan B, the add-on term loan is priced at SOFR+10 bps CSA plus 375 bps with a 0% floor.

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

JPMorgan Chase Bank is leading the deal that will be used to fund acquisitions and for general corporate purposes.

Alterra is a Denver-based mountain resort and adventure company.

Service Logic launches

Service Logic launched on an 11 a.m. ET lender call a fungible $330 million add-on term loan B (B2) talked with an original issue discount of 99.27 to 99.75 and 101 soft call protection for six months, according to a market source.

Pricing on the add-on term loan is SOFR+CSA plus 400 bps with a step-down to SOFR plus 375 bps at 4x first-lien net leverage and a 0.75% floor, in line with existing term loan B pricing. CSA is ARRC standard of 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 Wednesday, the source added.

JPMorgan Chase Bank is leading the deal that will be used to refinance an incremental term loan and add cash to the balance sheet for future acquisitions.

Service Logic is a Charlotte, N.C.-based provider of aftermarket maintenance, repair and replacement services for commercial HVAC equipment, chilled water systems, and building automation and controls systems.

Trulite on deck

Trulite set a lender call for 1 p.m. ET on Tuesday to launch $460 million of credit facilities, split between a $60 million five-year ABL revolver and a $400 million seven-year first-lien term loan, a market source remarked.

Talk on the term loan is SOFR plus 600 bps with a 1% floor, an original issue discount of 98, and hard call protection of 102 in year one and soft call protection of 101 in year two, the source added.

Commitments are due at noon ET on Feb. 15.

Jefferies LLC and Stifel are leading the deal that will be used to refinance the company’s existing credit facilities and fund the acquisition of American Insulated Glass LLC, a fabricator and wholesale distributor of glass and glazing products designed for commercial and residential building applications.

Trulite is a value-add glass and aluminum fabricator and supplier of related architectural products.

Fund flows

In other news, actively managed loan fund flows on Friday were negative $47 million and loan ETFs were positive $40 million, market sources said.

Inflows for loan funds in 2024 total $522 million, following outflows in 2023 totaling $17.3 billion, sources added.

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