AssuredPartners, Avient, GEO, Agiliti, International-Matex break; Herbalife, Dye updated

By Sara Rosenberg

New York, April 4 – AssuredPartners Inc. upsized its incremental first-lien term loan B-5 and revised the original issue discount, Avient Corp. firmed the spread on its term loan B-8 at the high end of talk and the issue price at the tight side of guidance, and GEO Group Inc. increased the size of its term loan B and modified the original issue discount, and then these deals freed to trade on Thursday.

Also, Agiliti Inc. upsized its incremental first-lien term loan, firmed pricing at the low end of talk and tightened the issue price before breaking for trading, and International-Matex Tank Terminals’ (ITT Holdings LLC) term loan B hit the secondary market as well.

In more happenings, Herbalife Ltd. (HLF Financing Sarl LLC) raised pricing on its term loan B, widened the issue price, sweetened the call protection and made a number of changes to documentation, and Dye & Durham reduced the size of its term loan B, trimmed the margin, added a step-down, changed the original issue discount and extended the call protection.

Furthermore, Veeam Software moved up the commitment deadline for its term loan B, RadNet Management Inc., Restaurant Brands International Inc. and Mega Broadband Investments LLC released price talk with launch, and Aecom and Buyers Edge Platform joined this week’s new issue calendar.

AssuredPartners revised

AssuredPartners lifted its fungible incremental senior secured covenant-lite first-lien term loan B-5 due Feb. 14, 2031 to $4.62 billion from an updated amount in the morning of $3.77 billion, a revised amount on Wednesday of $1.73 billion and an initial size at launch of $900 million, according to a market source.

Also, the original issue discount on the incremental term loan was changed to 99.875 from talk in the range of 99.5 to 99.75, the source said.

Pricing on the incremental term loan is SOFR plus 350 basis points with a 0.5% floor, and the debt has 101 soft call protection for six months.

Morgan Stanley Senior Funding Inc., Goldman Sachs Bank USA, BofA Securities Inc., Barclays, JPMorgan Chase Bank, BMO Capital Markets, RBC Capital Markets, Deutsche Bank Securities Inc., UBS Investment Bank, Mizuho, Macquarie Capital (USA) Inc., ING and Citizens Bank are leading the deal. BofA Securities is the agent.

AssuredPartners frees

Commitments for AssuredPartners’ term loan B-5 were due at 3 p.m. ET on Thursday and the debt made its way into the secondary market late in the day, with levels quoted at par bid, par ½ offered, a trader added.

The incremental loan will be used to refinance an existing term loan B-4 due 2027, a term loan B-2, a term loan B-1 and a term loan B-3. The B-1 and B-3 refinancing was added with Thursday’s two upsizings and the B-2 refinancing was added with the Wednesday upsizing.

Closing is expected during the week of April 8.

Pro forma for the transaction, the term loan B-5 will total $5.12 billion.

AssuredPartners is a Lake Mary, Fla.-based insurance brokerage firm.

Avient updated, trades

Avient finalized pricing on its $728 million senior secured covenant-lite term loan B-8 due Aug. 29, 2029 (Ba1/BB+) at SOFR plus 200 bps, the high end of the SOFR plus 175 bps to 200 bps talk, and set the issue price at par, the tight end of the 99.875 to par talk, a market source said.

The term loan B-8 still has a 0.5% floor and 101 soft call protection for six months.

During the session, the term loan B-8 broke for trading, with levels quoted at par 1/8 bid, par ½ offered, another source added.

Citigroup Global Markets Inc., Wells Fargo Securities LLC, Goldman Sachs Bank USA, HSBC Securities (USA) Inc., Morgan Stanley Senior Funding Inc., BNP Paribas Securities Corp., Citizens Bank, Deutsche Bank Securities Inc., JPMorgan Chase Bank, Truist Securities and US Bank are leading the deal that will be used to reprice the company’s existing term loan B-7 down from SOFR plus 250 bps with a 0.5% floor.

Closing is expected on Tuesday.

Avient is an Avon Lake, Ohio-based provider of specialized and sustainable material solutions.

GEO upsized

GEO Group upsized its five-year term loan B to $450 million from $400 million and moved the original issue discount to 99 from talk in the range of 98 to 98.5, according to a market source.

Pricing on the term loan B remained at SOFR plus 525 bps with a 0.75% floor, and the debt still has hard call protection of 102 in year one and 101 in year two.

The company also plans on getting a $310 million revolver.

Citizens Bank is leading the deal.

Closing is expected on April 18.

GEO hits secondary

Recommitments for GEO Group’s term loan B were due at noon ET on Thursday and the debt freed up later in the day, with levels quoted at 99½ bid, another source added.

The term loan B will be used with $1.275 billion of secured and unsecured bonds, upsized from $1.2 billion, and cash on hand to refinance the company’s roughly $906.7 million of tranche 1 and tranche 2 exchange term loans, existing revolver, 10½% second-lien notes due 2028, 9½% second-lien notes due 2028 and 6% senior notes due 2026, including the payment of all related expenses, and, due to the upsizing of the total amount of debt raised, to help fund the redemption of 6½% exchangeable senior notes due 2026 issued by GEO Corrections Holdings Inc.

GEO is a Boca Raton, Fla.-based diversified government service provider, specializing in services for secure facilities, processing centers, and community reentry centers.

Agiliti revised, frees

Agiliti increased its incremental first-lien term loan due May 2030 to $400 million from $300 million, set pricing at SOFR plus 300 bps, the low end of the SOFR plus 300 bps to 325 bps talk, and adjusted the original issue discount to 99.25 from 99, a market source remarked.

The term loan still has a 0% floor, 101 soft call protection for six months, and a ticking fee of half the margin from days 46 to 90 and the full margin thereafter.

Recommitments were due at 1 p.m. ET on Thursday and the incremental term loan broke in the afternoon, with levels quoted at 99 3/8 bid, 99¾ offered, another source added.

JPMorgan Chase Bank is leading the deal that will be used to help fund the acquisition by Thomas H. Lee Partners LP, the company’s majority shareholder, of all Agiliti shares it does not already own for $10 per share in cash, implying an enterprise value of about $2.5 billion.

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

Agiliti is an Eden Prairie, Minn.-based essential service provider to the U.S. health care industry.

International-Matex breaks

International-Matex Tank Terminals’ $746.25 million sustainability-linked term loan B due Oct. 11, 2030 began trading in the afternoon, with levels quoted at par 1/8 bid, par 5/8 offered, according to a market source.

Pricing on the term loan is SOFR plus 300 bps with a 0.5% floor and it was issued at par. The debt has 101 soft call protection for six months.

Wells Fargo Securities LLC, CIBC, First Horizon, MUFG, Regions Bank and Jefferies LLC are leading the deal that will be used to reprice an existing term loan B down from SOFR plus 325 bps with a 0.5% floor.

Riverstone is the sponsor.

International-Matex is a New Orleans-based pure play bulk liquid storage and handling provider.

Herbalife reworked

Herbalife lifted pricing on its $500 million senior secured five-year covenant-lite term loan B to SOFR plus 675 bps from talk in the range of SOFR plus 550 bps to 575 bps, revised the original issue discount to 96 from 97, changed the call protection to a hard call of 102 in year one and 101 in year two, and a 101 soft call in year three, from 101 soft call protection for one year, and increased amortization to 5% per annum from 1% per annum, a market source remarked.

Also, changes were made to documentation including to incremental, liens, restricted payment, investments, available amount usage, excess cash flow sweep, non-guarantor debt, foreign-subsidiary debt and Serta, and the public company change-of-control carve-out was removed, the source continued.

The term loan still has a 0.5% floor.

Recommitments were due at 2 p.m. ET on Thursday, the source added.

Herbalife lead banks

Citigroup Global Markets Inc. is the lead on Herbalife’s term loan. As of the effective date, Jefferies Finance LLC will be term loan B administrative agent and collateral agent. Subsequent to the effective date, an agency transfer will occur pursuant to which Jefferies will transfer the agent roles to Citizens Bank.

The company is also expected to get a $400 million revolver.

The credit facilities will be used with $700 million of secured notes to refinance an existing term loan B due August 2025 with an outstanding balance of $650.6 million as of Dec. 31, to refinance an existing term loan A and revolver, and to repay a portion of the company’s 2025 senior notes.

Herbalife is a Los Angeles-based health and wellness company.

Dye & Durham modified

Dye & Durham scaled back its seven-year senior secured term loan B (B1/B) to $350 million from $367 million, trimmed pricing to SOFR plus 425 bps from SOFR plus 450 bps, added a 25 bps step-down at 0.5x inside closing date first-lien net leverage, tightened the original issue discount to 98.5 from 98 and extended the 101 soft call protection to one year from six months, a market source said.

The term loan still has a 1% floor.

Recommitments were due at 3:15 p.m. ET on Thursday and allocations went out later in the day, the source added.

Goldman Sachs Bank USA, Bank of Nova Scotia, CIBC and Ares are leading the deal that will be used with $555 million of senior secured notes, upsized from $500 million, to refinance the company’s existing first-lien capital structure, repay convertible debentures due 2026 and, due to the increase in debt being raised, to put cash on the balance sheet for general corporate purposes including fees and expenses related to the transaction.

Along with the term loan, the company plans on getting a new senior secured revolver.

Dye & Durham is a provider of cloud-based software and technology solutions to law firms.

Veeam timing changed

Veeam Software accelerated the commitment deadline for its $1.96 billion term loan B due April 2031 (B2/B) to 5 p.m. ET on Thursday from 10 a.m. ET on Friday, a market source remarked.

Talk on the term loan is SOFR plus 350 bps with a 25 bps step-down inside 0.5x closing first-lien net leverage, a 0% floor, an original issue discount of 99.5 and 101 soft call protection for six months.

JPMorgan Chase Bank is leading the deal that will be used to refinance the company’s existing term loan B and seller note.

Veeam Software is a Columbus, Ohio-based provider of backup solutions that deliver cloud data management.

RadNet guidance

RadNet held its lender call on Thursday morning and announced talk on its $840 million seven-year term loan B (Ba3) at SOFR plus 275 bps with a 0% floor and an original issue discount of 99, according to a market source.

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

Commitments are due at 5 p.m. ET on April 11.

Barclays is leading the deal that will be used to repay the company’s existing $679 million term loan B, to pay related fees and expenses and to fund cash to the balance sheet for general corporate purposes.

The company also plans on getting a $250 million five-year revolver to replace its existing undrawn $195 million revolver due April 2026.

RadNet is a Los Angeles-based owner and operator of outpatient diagnostic imaging centers.

Restaurant holds call

Restaurant Brands held a lender call at 1 p.m. ET, launching its fungible $750 million add-on senior secured covenant-lite term loan due Sept. 21, 2030 with original issue discount talk of 99.75, a market source said.

Pricing on the term loan is SOFR plus 225 bps with a 0% floor.

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

JPMorgan Chase Bank is leading the deal that will be used with about $200 million of cash on hand to fund the acquisition of Carrols Restaurant Group Inc. for $9.55 per share in an all-cash transaction. This implies a total enterprise value of about $1 billion. Restaurant Brands and its affiliates currently hold about 15% of Carrols’ outstanding equity.

Closing is expected in the second quarter, subject to customary conditions, including regulatory approval and Carrols stockholder approval.

Restaurant Brands is a Toronto-based quick service restaurant company. Carrols is a Syracuse, N.Y.-based franchisee of Burger King and Popeyes restaurants.

Mega Broadband launches

Mega Broadband launched during the session a fungible $60 million incremental covenant-lite term loan B due 2027 with original issue discount talk of 99.3, according to a market source.

Pricing on the term loan is SOFR+CSA plus 300 bps with a 25 bps step-down at 4.75x leverage and a 0.75% floor. 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 noon ET on Wednesday, the source added.

Truist Securities, UBS Investment Bank, Citizens Bank and others to be named are leading the deal that will be used to repay revolver borrowings.

Mega Broadband is a broadband provider.

Aecom readies deal

Aecom set a lender call for 11 a.m. ET on Friday to launch a new seven-year first-lien term loan B, a market source remarked.

The term loan B has 101 soft call protection for six months, the source added.

The company also plans on getting a new term loan A.

BofA Securities Inc. is the left lead on the deal that will be used to refinance the company’s existing first-lien credit facilities and to add cash to the balance sheet.

Aecom is a Dallas-based provider of professional infrastructure consulting services.

Buyers Edge on deck

Buyers Edge Platform will hold a lender call on Friday to launch a $550 million seven-year term loan B (B1), according to a market source.

JPMorgan Chase Bank is the left lead on the deal that will be used to refinance existing debt, fund a distribution and add cash to the balance sheet.

Buyers Edge is a Waltham, Mass.-based provider of procurement, supply chain management and software services to foodservice operators.

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