California Resources, Utz update; PODS, Gates, Berry, Insight, Microsemi, Melissa set talk

By Sara Rosenberg

New York, Nov. 13 – In the primary market on Monday, California Resources Corp. increased its term loan size, lowered price talk and modified the original issue discount, and Utz Quality Foods LLC trimmed the spread on its first-lien term loan and set the issue price on its second-lien term loan at the middle of guidance.

In addition, PODS LLC, Gates Global LLC, Berry Plastics Corp., Insight Global (IG Investments Holdings LLC), Microsemi Corp. and Melissa & Doug (MND Holdings III Corp.) disclosed price talk with launch.

Also, Garda World Security Corp., Entravision Communications Corp., Parts Town (PT Holdings LLC), Blucora Inc., BayMark Health Services Inc. and NXT Capital Inc. joined this week’s calendar.

California Resources revised

California Resources raised its five-year term loan (B2/B) to $1.3 billion from $1 billion, trimmed price talk to a range of Libor plus 475 basis points to 500 bps from Libor plus 550 bps and changed the original issue discount to 98 from 97, according to a market source.

The term loan still has a 1% Libor floor and 102 call protection that steps down to par 90 days prior to maturity.

Recommitments were due at 1 p.m. ET on Monday, the source said.

Goldman Sachs Bank USA and J.P. Morgan Securities LLC are leading the deal that will be used to refinance existing debt. As a result of the upsizing, the company will repay its $200 million term loan A in full and $100 million of RBL borrowings.

California Resources is a Los Angeles-based oil and natural gas exploration and production company.

Utz tweaks deal

Utz Quality Foods cut pricing on its $535 million seven-year covenant-light first-lien term loan (B2/B) to Libor plus 350 bps from Libor plus 375 bps and left the 0% Libor floor, original issue discount of 99.5 and 101 soft call protection for six months unchanged, a market source said.

Regarding the $125 million eight-year covenant-light second-lien term loan (Caa1/CCC+), the discount firmed at 98.75, the midpoint of the 98.5 to 99 talk, the source continued. Pricing on this tranche remained at Libor plus 725 bps with a 0% Libor floor and the debt still has hard call protection of 102 in year one and 101 in year two.

Recommitments were due at 5 p.m. ET on Monday, the source added.

Bank of America Merrill Lynch is leading the deal that will be used to fund the acquisition of Inventure Foods Inc., a Phoenix-based specialty food marketer and manufacturer, for $4.00 per share in cash, for a total purchase price of about $165 million, including the assumption of around $75 million of debt and debt-like items, to finance the purchase of Metropoulos and Co.’s minority stake in Utz and to refinance existing debt.

Closing is expected this quarter, subject to customary conditions.

Utz is a Hanover, Pa.-based salty snack manufacturer and marketer.

PODS discloses talk

In more primary news, PODS held its call on Monday, launching its $775 million seven-year covenant-light senior secured term loan B (B2/B+) at talk of Libor plus 325 bps with a 1% Libor floor, an original issue discount of 99.5 to 99.75 and 101 soft call protection for six months, according to a market source.

Commitments are due on Nov. 21, the source said.

Morgan Stanley Senior Funding Inc. and Barclays are leading the deal that will be used to refinance existing debt, fund a dividend and pay related fees and expenses.

PODS is a Clearwater, Fla.-based provider of storage and moving containers.

Gates Global launches

Gates Global launched in the morning a $1,734,000,000 covenant-light term loan B due March 2024 and a €655 million covenant-light term loan B due March 2024, a market source remarked.

Talk on the U.S. term loan is Libor plus 300 bps with a 25 bps initial public offering step-down, a 1% Libor floor and a par issue price, and talk on the euro term loan is Euribor plus 325 bps with a 25 bps initial public offering step-down, a 0% floor and a par issue price, the source continued. Both tranches have 101 soft call protection for six months.

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

Credit Suisse is the left lead on the deal that will be used to reprice an existing U.S. term loan from Libor plus 325 bps with a 1% Libor floor and an existing euro term loan from Euribor plus 350 bps with a 0% floor.

Gates is a Denver-based aftermarket-focused manufacturer of power transmission belts and fluid power products.

Berry seeks loans

Berry Plastics launched without a call a $900 million covenant-light term loan O due Feb. 8, 2020 and an $814,375,000 covenant-light term loan P due Jan. 6, 2021 at talk of Libor plus 200 bps with a 0% Libor floor, a par issue price and 101 soft call protection for six months, a market source said.

Citigroup Global Markets Inc. is leading the deal that will be used to reprice a term loan K and a term loan L from Libor plus 225 bps with a 0% Libor floor.

Existing lender consents are due at 5 p.m. ET on Friday and new money commitments are due at noon ET on Nov. 20, with closing expected during the week of Nov. 27, the source added.

Berry is an Evansville, Ind.-based provider of value-added plastic consumer packaging and engineered materials.

Insight holds call

Insight Global announced in the morning intentions to hold a lender call at 3 p.m. ET to launch an $899 million first-lien term loan (B1/B) due October 2021 at talk of Libor plus 325 bps to 350 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Commitments are due on Thursday, the source said.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to reprice an existing term loan down from Libor plus 400 bps with a 1% Libor floor.

Insight Global is an Atlanta-based temporary staffing firm for the information technology sector.

Microsemi comes to market

Microsemi launched to investors a $794.7 million covenant-light term loan (Ba2) due Jan. 15, 2023 at talk of Libor plus 200 bps with a 0% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Commitments/consents are due at 5 p.m. ET on Thursday, the source said.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to reprice the existing term loan B from Libor plus 225 bps with a 0% Libor floor and amend the existing credit facilities.

Microsemi is an Aliso Viejo, Calif.-based provider of semiconductor solutions.

Melissa & Doug repricing

Melissa & Doug surfaced in the morning with plans to hold a lender call at 3 p.m. ET to launch a $259 million covenant-light first-lien term loan due June 2024 talked at Libor plus 375 bps to 400 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, a market source said.

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

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to reprice an existing term loan down from Libor plus 450 bps with a 1% Libor floor.

Melissa & Doug is a specialty toy brand with an educational focus.

Garda joins calendar

Also on the new deal front, Garda World Security set a lender call for 10 a.m. ET on Tuesday to launch roughly $939 million equivalent in U.S. and Canadian senior secured term loans due May 26, 2024, a market source remarked.

The U.S. loan is talked at Libor plus 350 bps with a 1% Libor floor, and the Canadian loan is talked at CDOR plus 425 bps with a 1% floor, the source added.

Commitments are due at noon ET on Nov. 21.

Barclays and TD Securities are leading the deal, with Barclays left on the U.S. piece and TD left on the Canadian piece.

The loans will be used to reprice an existing U.S. term loan down from Libor plus 400 bps with a 1% Libor floor and the Canadian term loan down from CDOR plus 475 bps with a 1% floor.

Garda is a Montreal-based provider of cash logistics and security solutions.

Entravision on deck

Entravision Communications plans to hold a lender meeting at 9:30 a.m. ET on Tuesday to launch a $300 million seven-year covenant-light term loan B talked at Libor plus 250 bps to 275 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, according to an informed source.

Commitments are due on Nov. 20, the source said.

Bank of America Merrill Lynch, RBC Capital Markets and Wells Fargo Securities LLC are leading the deal that will be used to refinance an existing term loan due 2020 and priced at Libor plus 250 bps with a 1% Libor floor.

With the refinancing of the term loan, the company is cancelling its existing revolver and will not put a new revolver in place, the source added.

Entravision is a Santa Monica, Calif.-based diversified Spanish-language media company.

Parts Town coming soon

Parts Town set a bank meeting for Wednesday to launch $332.5 million of credit facilities, split between a $200 million seven-year first-lien term loan, an $82.5 million eight-year second-lien term loan and a $50 million ABL revolver, a market 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.

Jefferies LLC, Citizens Bank and Golub are leading the term loans, and Citizens is leading the ABL.

The credit facilities will be used to refinance the company’s existing capital structure.

Parts Town is an Addison, Ill.-based OEM parts distributor and service provider to the foodservice equipment market.

Blucora plans repricing

Blucora Inc. will hold a lender call at 2:30 p.m. ET on Tuesday to launch a $350 million covenant-light first-lien term loan (B1/BB-) due May 2024 that has a 1% Libor floor and 101 soft call protection for six months, according to a market source.

Commitments are due on Friday, the source said.

Credit Suisse Securities (USA) LLC is leading the deal, which will be used to reprice an existing first-lien term loan.

Blucora is a Bellevue, Wash.-based technology-enabled financial solutions provider focused on tax preparation and financial advisory services.

BayMark readies deal

BayMark Health Services scheduled a bank meeting for 1 p.m. ET in New York on Thursday to launch $104 million in term loans, a market source remarked.

The debt consists of a fungible $29 million incremental first-lien term loan, a fungible $30 million incremental first-lien delayed-draw term loan and a $45 million second-lien term loan, the source said.

Pricing on the first-lien term debt is Libor plus 475 bps with a 1% Libor floor.

Capital One is leading the deal that will be used for general corporate purposes, including acquisitions.

BayMark, a Webster Capital portfolio company, is a Lewisville, Texas-based behavioral health provider specializing in opioid treatment services.

NXT sets call

NXT Capital will hold a loan lender call at 3:30 p.m. ET on Tuesday, according to a market source.

RBC Capital Markets LLC is leading the deal.

NXT is a Chicago-based provider of structured financing solutions.

Walker & Dunlop rises

Moving to the secondary market, Walker & Dunlop Inc.’s $166.5 million term loan B due Dec. 20, 2020 was quoted at par 5/8 bid, 101 3/8 offered, up from the par ˝ bid, 101 offered levels seen when the debt broke for trading late Friday, a market source said.

Pricing on the loan is Libor plus 300 bps with a 1% Libor floor and it was issued at par. The debt has 101 soft call protection for six months.

Wells Fargo Securities LLC is leading the deal that will be used to reprice an existing term loan B from Libor plus 425 bps with a 1% Libor floor.

Walker & Dunlop is a Bethesda, Md.-based provider of commercial real estate financial services.

BWIC announced

Also in trading, a $104 million Bid Wanted in Competition surfaced with bids due at 11 a.m. ET on Tuesday, a trader remarked.

Some of the names in portfolio are Allied Universal, Charter Communications Operating LLC, Fieldwood Energy LLC, KAR Auction Services Inc., Petco Animal Supplies Inc., SAI Global, Venetian Macau and Windstream Corp.

There are about 48 issuers in the BIWC, the trader added.

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