Clarivate, Fortress, AmWINS break; EFS Cogen, SUSE, Aimbridge revised; Barrette accelerated

By Sara Rosenberg

New York, Sept. 22 – Clarivate plc’s incremental term loan B hit the secondary market on Tuesday, and was seen trading above its original issue discount, and Fortress Investment Group FinCo I LLC’s term loan B broke as well.

Also, AmWINS Group Inc. freed to trade in the afternoon after increasing the size of its add-on first-lien term loan B in the morning.

In other news, EFS Cogen Holdings I LLC (Linden) upsized its term loan B, lowered the spread and tightened the original issue discount, and Barrette (LEB Holdings (USA) Inc.) accelerated the commitment deadline for its first-lien term loan.

Furthermore, SUSE (Marcel Lux IV Sarl) changed the original issue discount on its incremental first-lien term loan, and Aimbridge Hospitality increased the size of its term loan B and firmed the original issue discount at the tight end of guidance.

Additionally, Revint Solutions, Southern Veterinary Partners LLC, Spirit AeroSystems Holdings Inc., Golden State Medical Supply, Alera Group and Citadel announced price talk with launch, and American Residential Services and Jefferies Finance LLC joined this week’s primary calendar.

Clarivate frees up

Clarivate’s $1.6 billion incremental senior secured covenant-lite term loan B (B2/B) due Oct. 31, 2026 broke for trading on Tuesday, with levels quoted at par bid, par ˝ offered, a market source remarked.

Pricing on the term loan is Libor plus 300 basis points with a 1% Libor floor and it was sold at an original issue discount of 99.5. The loan has 101 soft call protection for six months.

During syndication, the spread on the term loan finalized at the low end of the Libor plus 300 bps to 325 bps talk and the discount was modified from 99.

Citigroup Global Markets Inc., BofA Securities Inc., RBC Capital Markets, Barclays, HSBC Securities (USA) Inc. and J.P. Morgan Securities LLC are leading the deal. BofA is the administrative agent.

The term loan is being done in connection with the company’s combination with CPA Global under which CPA shareholders will receive about 218 million Clarivate ordinary shares. Proceeds from the loan will be used with cash on hand to refinance about $2 billion of CPA’s debt.

Closing is expected in early October and net leverage will be around 4.2x.

Clarivate is a Philadelphia-based provider of intellectual property and scientific information, decision support tools and services. CPA is a provider of intellectual property software and tech-enabled services.

Fortress hits secondary

Fortress Investment Group’s $950 million covenant-lite term loan B (Baa3) due June 27, 2025 began trading too, with levels quoted at par bid, par ˝ offered, according to a market source.

Pricing on the term loan B is Libor plus 250 bps with a 0% Libor floor and it was sold at an original issue discount of 99.75. The debt has 101 soft call protection for six months.

During syndication, pricing on the term loan firmed at the tight end of the Libor plus 250 bps to 275 bps talk and the discount was revised from 99.5.

Deutsche Bank Securities Inc. and Mizuho are leading the deal that will be used to amend and extend from December 2022 an existing term loan B.

In connection with this transaction, roughly $100 million of the existing $1.046 billion term loan B will be paid down.

Closing is expected on Friday.

Fortress Investment is an alternative investment management firm.

AmWINS upsized, trades

AmWINS raised its fungible add-on first-lien term loan B (Ba3/B+) due Jan. 25, 2024 to $200 million from $100 million and scaled back its senior unsecured notes offering to $100 million from $200 million, a market source said.

As before, the add-on term loan is priced at Libor plus 275 bps with a 1% Libor floor, in line with the existing term loan B, and has an original issue discount of 99.27 and 101 soft call protection for six months.

Commitments and amendment signature pages were due at noon ET on Tuesday and the term loan freed to trade later in the day, with levels quoted at 99˝ bid, par offered.

Goldman Sachs Bank USA, Barclays, J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc. and Wells Fargo Securities LLC are leading the deal.

The new debt will be used with cash on hand to fund a dividend to shareholders.

Closing is expected this week.

AmWINS is a Charlotte, N.C.-based specialty insurance broker.

EFS Cogen reworked

In more happenings, EFS Cogen lifted its seven-year term loan B to $1 billion from $950 million, trimmed pricing to Libor plus 350 bps from Libor plus 375 bps and revised the original issue discount to 99.5 from 99, while leaving the 1% Libor floor and 101 soft call protection for six months unchanged, according to a market source.

The company’s now $1.1 billion of senior secured credit facilities also include a $100 million five-year first-out revolver.

The debt service reserve account collateral provisions were revised to be applied on a ratable basis between the term loan and the revolver.

Commitments are due at 5 p.m. ET on Wednesday, moved up from 5 p.m. ET on Thursday, the source added.

Jefferies LLC, Barclays, Citigroup Global Markets Inc., MUFG, BMO Capital Markets and Investec are leading the deal that will be used to refinance existing debt and fund a small distribution to the parent.

EFS Cogen is the owner of a 974 MW natural gas-fired combined cycle cogeneration plant located in Linden, N.J.

SUSE updated

SUSE tightened the original issue discount on its non-fungible $300 million seven-year incremental first-lien term loan (B2/B) to 99.75 from talk in the range of 98.5 to 99, according to a market source.

The term loan is priced at Libor plus 400 bps with a 0.75% Libor floor and has 101 soft call protection for six months.

J.P. Morgan Securities LLC, BofA Securities Inc., Deutsche Bank Securities Inc., Goldman Sachs Bank USA and Jefferies LLC are leading the deal that will be used to help fund the acquisition of Rancher Labs, a Cupertino, Calif.-based open source software company.

Closing is expected before the end of October, subject to customary conditions including receipt of regulatory approvals.

SUSE is a Nuremberg, Germany-based provider of open source infrastructure software for large enterprises.

Aimbridge tweaked

Aimbridge Hospitality upsized its non-fungible term loan B due 2026 to $200 million from $150 million and finalized the original issue discount at 98, the tight end of the 97 to 98 talk, a market source said.

As before, pricing on the term loan is Libor plus 600 bps with a 0.75% Libor floor.

J.P. Morgan Securities LLC is leading the deal that will be used for general corporate purposes.

Aimbridge is a Plano, Tex.-based hotel management firm.

Barrette revises deadline

Barrette moved up the commitment deadline for its $405 million seven-year covenant-lite first-lien term loan (B3/B) to noon ET on Thursday from 5 p.m. ET on Sept. 29, a market source remarked.

Talk on the term loan is Libor plus 425 bps to 450 bps with a 0.75% Libor floor, an original issue discount of 98 and 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC, BMO Capital Markets and KKR Capital Markets are leading the deal that will be used to fund the acquisition of the company by TorQuest Partners and Caisse de depot et placement du Quebec.

Barrette is a manufacturer and distributor of wood alternative fence, railing and other outdoor living products.

Revint reveals guidance

Revint Solutions held its lender call on Tuesday morning and announced talk on its $630 million seven-year term loan B at Libor plus 425 bps with a 0.75% Libor floor, an original issue discount of 98.5 and 101 soft call protection for six months, according to a market source.

The company’s $705 million of credit facilities (B3/B-) also include a $75 million revolver.

Commitments are due at noon ET on Oct. 2, the source added.

Goldman Sachs Bank USA, Deutsche Bank Securities Inc., Jefferies LLC, Barclays and KeyBanc Capital Markets are leading the deal that will be used to fund the acquisition of and merger with Triage Consulting Group, a health care revenue integrity company, and to refinance existing Revint debt.

The merger is being facilitated by New Mountain Capital LLC.

Closing is expected this year, subject to customary conditions and approvals.

Revint Solutions is a Plano, Tex.-based provider of revenue integrity and recovery services to hospitals and health systems.

Southern Vet sets talk

Southern Veterinary Partners came out with price talk on its first-and second-lien term loans in connection with its morning bank meeting, a market source said.

Talk on the $435 million seven-year senior secured first-lien term loan (B2/B-) and $60 million delayed-draw first-lien term loan (B2/B-), which are being sold as a strip, is Libor plus 400 bps with a 1% Libor floor and an original issue discount of 99, and talk on the $140 million eight-year senior secured second-lien term loan (Caa2/CCC) is Libor plus 800 bps with a 1% Libor floor and a discount of 98.5, the source continued.

The delayed-draw term loan has a ticking fee of half the margin from days 61 to 120 and the full margin thereafter, and an 18-month commitment.

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.

The company’s $665 million of credit facilities also include a $30 million five-year revolver (B2/B-).

Commitments are due at 5 p.m. ET on Oct. 1, the source added.

Jefferies LLC is leading the deal that will be used to refinance the company’s existing capital structure.

Southern Veterinary is a Birmingham, Ala.-based provider of general practice veterinary services.

Spirit proposed terms

Spirit AeroSystems held a call during the session to launch a $400 million senior secured term loan B (BB-) talked at Libor plus 525 bps with a 0.75% Libor floor and an original issue discount of 98.5 to 99, according to a market source.

Commitments are due at 11 a.m. ET on Sept. 30, the source added.

BofA Securities Inc., Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc. and Citigroup Global Markets Inc. are leading the deal that will be used with $400 million of senior secured notes to repay in full amounts borrowed under a term loan A and delayed-draw term loan A, and for general corporate purposes.

Spirit AeroSystems is a Wichita, Kan.-based designer and builder of aerostructures for both commercial and defense customers.

Golden State OID

Golden State Medical Supply hosted its call in the morning, launching its fungible $120 million add-on first-lien term loan due June 2026 with original issue discount talk of 99, according to a market source.

Like the existing first-lien term loan, the add-on term loan is priced at Libor plus 475 bps with a 0% Libor floor.

Commitments are due on Sept. 30, the source added.

Truist is leading the deal that will be used to fund a dividend.

Golden State Medical is a Camarillo, Calif.-based generic pharmaceutical supplier.

Alera shops loan

Alera Group held a lender call to launch a fungible $300 million add-on term loan B (B2) due 2025 talked at Libor plus 400 bps with a 0.5% Libor floor and an original issue discount of 98, a market source said.

J.P. Morgan Securities LLC, BMO Capital Markets and Barclays are leading the deal that will be used for general corporate purposes and to fund acquisitions.

In connection with this transaction, the Libor floor on the company’s existing term loan would increase to 0.5% from 0%. The spread on the existing term loan is currently Libor plus 400 bps.

Alera is a Deerfield, Ill.-based insurance brokerage and wealth management firm.

Citadel launches

Citadel launched with a call on Tuesday a $300 million add-on term loan talked at Libor plus 275 bps with a 0% Libor floor and an original issue discount of 99.25, according to a market source.

J.P. Morgan Securities LLC is leading the deal that will be used for general corporate purposes.

Citadel is a Chicago-based provider of market-making services to the fixed income, currency and commodity markets.

American Residential on deck

American Residential Services set a lender call for 11 a.m. ET on Thursday to launch a $470 million term loan B, a market source remarked.

J.P. Morgan Securities LLC and Jefferies LLC are leading the deal that will be used to help fund the acquisition of a majority stake in the company by GI Partners. Existing investor Charlesbank Capital Partners and management are also making significant new investments in the business.

Closing is expected in the fourth quarter, subject to customary conditions and regulatory approvals.

American Residential is a Memphis, Tenn.-based provider of residential heating, ventilation, air conditioning and plumbing services.

Jefferies readies loan

Jefferies Finance scheduled a bank meeting for 10 a.m. ET on Thursday to launch a $350 million seven-year senior secured term loan (BB-/BB), according to a market source.

Jefferies LLC is leading the deal that will be used to repay the company’s existing 7.25% senior notes due 2024, and to pay related fees and expenses.

Jefferies Finance is a New York-based leveraged loan arranger and investor.

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