WCG Purchaser upsized term loan breaks; White Cap, American Residential move up deadlines

By Sara Rosenberg

New York, Oct. 6 – WCG Purchaser Corp. (Wesins) increased the size of its incremental first-lien term loan and finalized the original issue discount at the tight end of guidance before freeing up for trading during Tuesday’s market hours.

Also, White Cap (AppleCaramel Buyer LLC) and American Residential Services LLC accelerated the commitment deadlines for their first-lien term loans.

Furthermore, Help at Home LLC (HAH Group Holding Co. LLC), Maravai LifeSciences (Maravai Intermediate Holdings LLC), Quirch Foods LLC, Bumble (Buzz Finco LLC), Promontory Interfinancial Network LLC (Nexus Buyer LLC) and Tegra118 Wealth Solutions Inc. announced price talk with launch.

And, in more happenings, Mega Broadband Investments Holdings LLC surfaced with new deal plans.

WCG updated, trades

WCG Purchaser lifted its incremental first-lien term loan due Jan. 8, 2027 to $150 million from $125 million and set the original issue discount at 98.6, the tight end of the 98 to 98.6 talk, according to a market source.

In addition, the incremental term loan has been labeled as fungible with the existing first-lien term loan, whereas, at launch fungibility was still to be determined.

The incremental term loan is still priced at Libor plus 400 basis points with a 1% Libor floor and has 101 soft call protection through January 2021, all of which matches the existing first-lien term loan.

Allocations went out on Tuesday and the incremental term loan broke for trading, with levels quoted at 99 bid, 99½ offered, another source added.

Barclays is leading the deal that will be used to fund tuck-in mergers and acquisitions and for general corporate purposes.

WCG is Princeton, N.J.-based provider of clinical trial optimization solutions.

White Cap accelerated

White Cap moved up the commitment deadline for its $2.335 billion seven-year covenant-lite first-lien term loan B (B2/B) to 5 p.m. ET on Wednesday from 5 p.m. ET on Thursday, a market source remarked.

The term loan is talked at Libor plus 400 bps to 425 bps with a 0.5% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

Deutsche Bank Securities Inc., RBC Capital Markets LLC, Jefferies LLC, BNP Paribas Securities Corp., Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Mizuho and Nomura are leading the deal that will be used with $640 million of notes to help fund the buyout of the company by Clayton, Dubilier & Rice from HD Supply Holdings Inc. and combination with Construction Supply Group.

Upon the closing of both transactions, Clayton, Dubilier & Rice funds will hold a 65% ownership interest in the combined company, and the current shareholders of Construction Supply Group, led by Sterling Group, will hold a 35% interest. The combined transaction is valued at about $4 billion.

The acquisition of White Cap is expected to close this month.

White Cap is a distributor of specialty concrete and construction products. Construction Supply Group is a distributor of specialty concrete and masonry accessories.

American Residential timing

American Residential Services changed the commitment deadline for its $470 million first-lien term loan B (B1/B) to 3 p.m. ET on Wednesday from 5 p.m. ET on Thursday, according to a market source.

Talk on the term loan is Libor plus 375 bps to 400 bps with a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

J.P. Morgan Securities LLC, Jefferies LLC, KKR Capital Markets and Ares 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-based provider of residential heating, ventilation, air conditioning and plumbing services.

Colisee revises deadline

Colisee (Cobalt BidCo) accelerated the commitment deadline for its €875 million seven-year covenant-lite term loan B (B2/B) to noon ET on Thursday from 7 a.m. ET on Friday, a market source said.

Talk on the term loan is Euribor plus 400 bps to 425 bps with a 0% floor, an original issue discount of 98.5 and 101 soft call protection for six months.

Credit Suisse, BNP Paribas and Societe Generale are the physical bookrunners on the deal and mandated lead arrangers with Barclays. Joint bookrunners include Barclays, Credit Agricole, Credit Industriel et Commercial, ING Bank, Natixis and JPMorgan.

Proceeds will be used to help fund the acquisition of the company by EQT Infrastructure, CDPQ (Infrastructure) and management, to refinance existing debt and to pay fees and expenses.

Colisee is a Paris-based operator of nursing home facilities and home care services agencies.

Help at Home launches

Also in the primary market, Help at Home launched at its bank meeting on Tuesday an upsized $515 million seven-year first-lien term loan, increased from $440 million, and removed from its capital structure the $75 million first-lien delayed-draw term loan with three months availability, according to a market source.

The $819 million of credit facilities still include a $74 million five-year revolver, a $65 million first-lien 24-month delayed-draw availability term loan and a $165 million privately placed eight-year second-lien term loan.

With the meeting, talk on the first-lien term loan debt was announced at Libor plus 475 bps to 500 bps with a 1% Libor floor, an original issue discount of 98.5 and 101 soft call protection for six months, the source said.

The delayed-draw term loan has a ticking fee of half the spread from days 46 to 90 and the full spread thereafter. No floors will be paid.

Commitments are due at noon ET on Oct. 20, the source added.

Jefferies LLC, Barclays, BMO Capital Markets and UBS Investment Bank are leading the deal that will be used to help fund the acquisition of the company by Centerbridge Partners and the Vistria Group.

Help at Home is a Chicago-based provider of home care and support.

Maravai sets guidance

Maravai LifeSciences came out with talk of Libor plus 450 bps with a 25 bps step-down at 4.5x net first-lien leverage, a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months on its $600 million seven-year covenant-lite first-lien term loan B shortly before its afternoon lender call began, a market source remarked.

The company’s $750 million of senior secured credit facilities (B3/B-) also include a $150 million five-year revolver.

Commitments are due at noon ET on Oct. 15, the source added.

Morgan Stanley Senior Funding Inc., Goldman Sachs Bank USA, Jefferies LLC and Antares Capital LP are leading the deal that will be used to refinance existing debt, fund the repurchase of an existing Cygus minority interest, fund a distribution to shareholders, and pay transaction fees and expenses.

Maravai, a GTCR portfolio company, is a San Diego-based provider of life science reagents and services to researchers and biotech innovators.

Quirch reveals talk

Quirch Foods held its call in the morning, launching its $475 million seven-year senior secured first-lien term loan B (B3/B) at talk of Libor plus 525 bps to 550 bps with a 1% Libor floor, an original issue discount of 98 and 101 soft call protection for six months, according to a market source.

Commitments are due at noon ET on Oct. 20, the source continued.

The company also plans on getting a $200 million ABL revolver.

RBC Capital Markets is the left lead on the deal that will be used with equity to fund the acquisition of Colorado Boxed Beef Co. from Altamont Capital Partners.

Closing is expected this month.

Quirch Foods is a Coral Gables, Fla.-based specialty protein supplier to chain grocery stores. Colorado Boxed Beef is a Lakeland, Fla.-based protein supplier to chain grocery stores, foodservice distributors and other customers in large markets.

Bumble details emerge

Bumble launched on its morning call a $200 million senior secured incremental covenant-lite term loan B (//BB) due Jan. 29, 2027 at talk of Libor plus 325 bps to 350 bps with a 0.5% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months, a market source said.

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

The incremental term loan, to the extent necessary based on pricing in syndication, will be implemented as a separate tranche of term loans under the existing credit agreement from the initial term loans.

Citigroup Global Markets Inc., Barclays, HSBC Securities (USA) Inc., RBC Capital Markets, SMBC and Blackstone Securities Partners are leading the deal that will be used with cash on hand to fund a distribution to shareholders.

Bumble, also known as MagicLab, is a provider of online dating and social networking services.

Promontory shops loan

Promontory Interfinancial Network held a lender call at 2 p.m. ET to launch a fungible $340 million incremental covenant-lite first-lien term loan (B2/B-) due November 2026 talked with an original issue discount in the 98.75 area, according to a market source.

Like the existing first-lien term loan, the incremental term loan is priced at Libor plus 375 bps with a 0% Libor floor.

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

Nomura, Morgan Stanley Senior Funding Inc., RBC Capital Markets, UBS Investment Bank and Blackstone are leading the deal that will be used to repay a portion of the company’s second-lien term loan, to fund a distribution to shareholders, and to pay fees and expenses.

Promontory Interfinancial is an Arlington, Va.-based financial technology solutions provider offering deposit placement and funding services to financial institutions.

Tegra118 comes to market

Tegra118 Wealth Solutions hosted a lender call at 2 p.m. ET on Tuesday to launch a fungible $20 million incremental covenant-lite first-lien term loan B due Feb. 18, 2027 talked with an original issue discount in the range of 98.75 to 99, a market source remarked.

The incremental term loan is priced at Libor plus 475 bps with a 0% Libor floor, in line with the existing term loan B.

Commitments are due at 3 p.m. ET on Thursday, the source added.

Deutsche Bank Securities Inc. is leading the deal that will be used to repay revolver borrowings.

Tegra118, formerly known as Fiserv Investment Solutions, is a Warren, N.J.-based provider of financial services.

Mega Broadband on deck

Mega Broadband scheduled a lender call for 10 a.m. ET on Thursday to launch $725 million of senior secured credit facilities, according to a market source.

The facilities consist of a $75 million five-year revolver and a $650 million seven-year term loan B, the source said.

Truist Securities, Credit Suisse Securities (USA) LLC, TD Securities (USA) LLC and Citizens are leading the deal that will be used to refinance existing debt and to fund a distribution to existing shareholders.

Mega Broadband, a GTCR portfolio company, is a broadband provider.

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