ERT frees to trade atop par; Utz revises timing; PrimeSource, Truck Hero ready deals

By Sara Rosenberg

New York, Jan. 8 – ERT (eResearchTechnology Inc.) tightened the issue price on its incremental first-lien term loan, and then the debt made its way into the secondary market on Friday.

And, in more happenings, Utz Brands Inc. moved up the commitment deadline for its term loan B, and PrimeSource (Park River Holdings Inc.) and Truck Hero Inc. joined the near-term primary calendar.

ERT updated

ERT modified the issue price on its fungible $750 million incremental first-lien senior secured term loan (B2/B-) due Feb. 4, 2027 to par from talk in the range of 98.79 to 99, a market source remarked.

As before, pricing on the incremental first-lien term loan, of which $250 million has been pre-placed, is Libor plus 450 basis points with a 1% Libor floor, which matches existing first-lien term loan pricing.

The first-lien term loan has a ticking fee of half the spread from days 46 to 90 and the full spread thereafter.

Recommitments were due at 11 a.m. ET on Friday, the source continued.

The company is also getting a $50 million pre-placed first-lien senior secured delayed-draw term loan and a $150 million pre-placed incremental second-lien senior secured term loan.

ERT hits secondary

On Friday, ERT’s incremental first-lien term loan began trading, with levels quoted at par ¼ bid, 101 offered, another source added.

Goldman Sachs Bank USA and Jefferies LLC are leading the deal that will be used to fund the acquisition of Bioclinica, a Princeton, N.J.-based provider of clinical trial imaging solutions, and pay related fees and expenses.

Closing is expected this year, subject to customary conditions, including approval by regulatory agencies.

Nordic Capital and Astorg are the sponsors.

ERT is a Philadelphia-based provider of software-enabled clinical research solutions to pharmaceutical companies and contract research organizations.

Utz moves deadline

In other news, Utz Brands accelerated the commitment deadline for its $720 million seven-year term loan B (B) to 5 p.m. ET on Tuesday from 2 p.m. ET on Thursday, a market source said.

Talk on the term loan is Libor plus 350 bps with a 0% Libor floor, an original issue discount of 99.25 to 99.5 and 101 soft call protection for six months.

BofA Securities Inc., Goldman Sachs Bank USA and Credit Suisse Securities (USA) LLC are leading the deal.

Proceeds will be used to help refinance an existing term loan B and a $490 million senior secured bridge loan that funded the company’s $480 million purchase of Truco Enterprises, a Dallas-based seller of tortilla chips, salsa and queso, from Insignia Capital Group.

Utz is a Hanover, Pa.-based manufacturer of branded salty snacks.

PrimeSource on deck

PrimeSource set a lender call for 10 a.m. ET on Monday to launch a $1.095 billion seven-year covenant-lite first-lien term loan B, according to a market source.

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

Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, RBC Capital Markets, Wells Fargo Securities LLC, Nomura, Golub and Antares Capital are leading the deal that will be used to back the buyout of PriSo Holding Corp. (PrimeSource) by Clearlake Capital Group LP from Platinum Equity, which was completed last month, and merger with TKE Holdings Inc. (Dimora Brands).

PrimeSource is an Irving, Texas-based provider of construction fastening solutions and other complementary specialty building products. Dimora is a provider of specialty hardware and home accessories.

Truck Hero coming soon

Truck Hero scheduled a bank meeting for 1 p.m. ET on Monday to launch $1.75 billion of credit facilities, a market source remarked.

The facilities consist of a $200 million five-year ABL revolver and a $1.55 billion seven-year senior secured first-lien term loan, the source continued.

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

Commitments are due at 3 p.m. ET on Jan. 20, the source added.

Jefferies LLC, BofA Securities Inc., Credit Suisse Securities (USA) LLC, KKR Capital Markets and Stifel are leading the deal that will be used with a planned issuance of $550 million of senior unsecured debt to help fund the buyout of the company by a consortium led by L Catterton.

CCMP Capital, among other shareholders, and Truck Hero’s founding chief executive officer, Bill Reminder, will remain meaningful investors in the company.

Closing is expected this quarter, subject to customary conditions.

Truck Hero is an Ann Arbor, Mich.-based provider of aftermarket accessories for pickup trucks and Jeeps.

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