Mitchell International, NXT Capital, US Foods, PODS, Veresen, Circor, Floor & Decor break

By Sara Rosenberg

New York, Nov. 21 – Mitchell International Inc. finalized pricing on its first- and second-lien term loans at the low end of guidance and NXT Capital Inc. extended the call protection on its term loan, and then both of these deals made their way into the secondary market on Tuesday.

Also, US Foods Inc. raised pricing on its term loan B and added a step-down before freeing up for trading, and deals from PODS LLC, Veresen Midstream LP, Circor International Inc. and Floor & Decor Outlets of America Inc. broke as well.

In other happenings, Ability Network, WorldStrides, SunSource Holdings Inc. and ProAmpac joined the near-term primary calendar.

Mitchell firms

Mitchell International set pricing on its $930 million seven-year covenant-light first-lien term loan (B1/B-) at Libor plus 325 basis points, the low end of the Libor plus 325 bps to 350 bps talk, and left the 0% Libor floor, original issue discount of 99.5 and 101 soft call protection for six months unchanged, according to a market source.

Also, pricing on the company’s $450 million eight-year covenant-light second-lien term loan (Caa2/CCC) finalized at Libor plus 725 bps, the tight end of the Libor plus 725 bps to 750 bps talk, the source said. This tranche still has a 0% Libor floor, an original issue discount of 99.5 and hard call protection of 102 in year one and 101 in year two.

The company’s $1.53 billion of credit facilities include a $75 million five-year revolver (B1/B-) and a $75 million delayed-draw for six months first-lien term loan (B1/B-) as well. The delayed-draw fee is half the margin from days 61 to 90 and the full margin thereafter.

Mitchell tops OIDs

After terms finalized, Mitchell International’s bank debt freed to trade, with the first-lien term loan quoted at par 1/8 bid, par ½ offered and the second-lien term loan quoted at par ½ bid, the source added.

Jefferies LLC, KKR Capital Markets and Macquarie Capital (USA) Inc. are leading the deal, with Jefferies the left lead on the first-lien and KKR the left lead on the second-lien.

The credit facilities will be used to refinance existing debt and fund a distribution to shareholders.

Mitchell is a San Diego-based provider of technology, connectivity and information solutions to the property and casualty claims and collision repair industries.

NTX tweaked, trades

NXT Capital pushed out the 101 soft call protection on its $372 million term loan B due November 2022 to one year from six months, while leaving pricing at Libor plus 350 bps with a 1% Libor floor and a par issue price, a market source remarked.

Commitments were due at noon ET on Tuesday and then the loan broke in the afternoon with levels seen at par ¾ bid, 101¾ offered, the source added.

RBC Capital Markets LLC is leading the deal that will be used to reprice an existing term loan B down from Libor plus 450 bps with a 1% Libor floor.

The 101 soft call protection on the existing loan expires on Thursday.

NXT is a Chicago-based middle-market focused direct lender and asset manager.

US Foods revised, breaks

US Foods lifted pricing on its $2,173,000,000 senior secured covenant-light term loan B (B1/BB) due June 27, 2023 to Libor plus 250 bps from Libor plus 225 bps, but added a step-down to Libor plus 225 bps when consolidated secured leverage is 1.75 times, a market source said.

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

Recommitments were due at 4 p.m. ET on Tuesday and the loan began trading late in the day at par ¼ bid, par ¾ offered, another source added.

Citigroup Global Markets Inc. is leading the deal that will be used to reprice an existing term loan down from Libor plus 275 bps with a 0.75% Libor floor.

Closing is expected on Nov. 30.

US Foods is a Chicago-based broadline foodservice distributor.

PODS frees up

PODS’ $785 million seven-year covenant-light senior secured term loan B broke for trading, with levels quoted at par ¼ bid, par ¾ offered, according to a trader.

The term loan is priced at Libor plus 300 bps with a 1% Libor floor and was sold at an original issue discount of 99.75. The debt has 101 soft call protection for six months.

On Monday, the term loan was upsized from $775 million, pricing was reduced from Libor plus 325 bps, the discount firmed at the tight end of the 99.5 to 99.75 talk and the MFN sunset was removed.

Morgan Stanley Senior Funding Inc. and Barclays are leading the deal that will be used to refinance existing debt, fund a dividend, which was increased with the recent term loan upsizing, and pay related fees and expenses.

Closing is expected during the week of Dec. 4.

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

Veresen hits secondary

Veresen Midstream’s $709 million term loan B (Ba3/BB-) due March 21, 2022 also began trading, with levels seen at par 3/8 bid, par ¾ offered, a trader remarked.

Pricing on the loan is Libor plus 300 bps with no Libor floor, and it was issued at par. The debt has 101 soft call protection for six months.

RBC Capital Markets, TD Securities (USA) LLC, HSBC Securities (USA) Inc. and KKR Capital Markets are leading the deal that will be used to reprice an existing term loan down from Libor plus 350 bps with a 1% Libor floor.

Veresen is a Calgary, Alta.-based jointly owned limited partnership between Veresen Inc. and Kohlberg Kravis Roberts & Co. LP that was formed in March 2015 to build, own and operate natural gas gathering and processing infrastructure in Western Canada.

Circor starts trading

Circor’s $785 million seven-year covenant-light term loan B emerged in the secondary market, with levels quoted at 99¾ bid, par ¼ offered, a market source said.

Pricing on the term loan B is Libor plus 350 bps with a 1% Libor floor, and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months.

The company’s $935 million of senior secured credit facilities (B1/B+) also include a $150 million five-year revolver.

Deutsche Bank Securities Inc. and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to help fund the acquisition of Colfax Fluid Handling for about $855 million, including $542 million in cash, the issuance of about 3.3 million in shares and the assumption of pension plans, and to refinance existing debt.

Net debt to EBITDA at closing will be around 5 times.

Closing is expected in mid-December.

Circor is a Burlington, Mass.-based designer, manufacturer and marketer of highly engineered products and sub-systems for markets including oil & gas, power generation and aerospace & defense. Colfax Fluid Handling is a provider of engineering, development‚ manufacturing‚ distribution‚ service and support of fluid handling systems.

Floor & Decor breaks

Floor & Decor’s $152 million term loan B due September 2023 started trading, with levels quoted at par ¼ bid, par 5/8 offered, according to a market source.

Pricing on the term loan is Libor plus 275 bps with a step-down to Libor plus 250 bps when a B1 corporate rating is achieved from Moody’s and a 1% Libor floor. The debt was issued at par and has 101 soft call protection for six months.

On Monday, the spread on the loan was increased from Libor plus 250 bps and the step-down was added.

UBS Investment Bank is leading the deal that will be used to reprice an existing term loan down from Libor plus 350 bps with a 1% Libor floor.

Floor & Decor is an Atlanta-based specialty retailer in the hard surface flooring market.

Ability joins calendar

Back in the primary market, Ability Network set a bank meeting for 10:30 a.m. ET on Nov. 28 to launch $525 million in term loans, according to a market source.

The debt consists of a $375 million first-lien term loan (B2/B-) and a $150 million second-lien term loan (Caa2/CCC), the source said.

Jefferies LLC is leading the deal that will be used to refinance existing debt, support continued investment in growth initiatives for the business and fund a distribution to Summit Partners and other shareholders.

Ability is a Minneapolis-based provider of web-based connectivity and workflow solutions that simplify clinical and administrative tasks for healthcare providers.

WorldStrides readies deal

WorldStrides will hold a bank meeting at 10 a.m. ET in New York on Nov. 28 to launch $460 million in senior secured term loans, split between a $425 million term loan B and a $35 million delayed-draw term loan B, a market source remarked.

Goldman Sachs Bank USA and BNP Paribas Securities Corp. are leading the deal that will be used to help fund a strategic investment from Eurazeo and Primavera Capital Group.

Closing is expected by year end.

WorldStrides is a Charlottesville, Va.-based educational student travel and study abroad organization.

SunSource coming soon

SunSource Holdings scheduled a lender call for 11:30 a.m. ET on Monday to launch a $235 million seven-year first-lien term loan, a market source said.

Barclays, Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, ING, Natixis and UBS Investment Bank are leading the deal that will be used to help fund the buyout of the company by Clayton, Dubilier & Rice.

SunSource is an Addison, Ill.-based distributor of fluid power and motion control technologies.

ProAmpac on deck

ProAmpac emerged with plans to hold a lender call on Nov. 28 to launch a new loan transaction, according to a market source.

Antares Capital is leading the deal that will be used to refinance existing debt and to fund an add-on acquisition.

ProAmpac, a Pritzker Group Private Capital portfolio company, is a Cincinnati-based flexible packaging company.

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