Kodiak, Storable, Kofax, PLZ, Horizon, XPO, Berry, Tegra118, Barrette, Alacrity break

By Sara Rosenberg

New York, Feb. 26 – Kodiak Building Partners trimmed pricing on its term loan B for a second time, and Storable Inc. (EQT Box Merger Sub Inc.) shifted some funds between its first-and second-lien term loans, and tightened spread, floor and original issue discount on its first-lien tranche, and then both of these deals began trading on Friday.

Also, before breaking, Kofax (Project Leopard Holdings Inc.) upsized its incremental first-lien term loan, added a pricing step-down and modified the issue price, and PLZ Aeroscience Corp. widened the spread and the Libor floor on its term loan debt, but tightened the original issue discount.

Other deals to emerge in the secondary market during the session included Horizon Therapeutics USA Inc., XPO Logistics Inc., Berry Global, Tegra118 Wealth Solutions Inc., Barrette (LEB Holdings (USA) Inc.) and Alacrity Solutions Group LLC.

In other news, Bass Pro Group LLC upsized its term loan, cut the spread and set the issue price at the wide side of guidance, TierPoint LLC revised the Libor floor on its term loan, and Tronox Finance LLC moved up the commitment deadline for its term loan B.

Additionally, ION Corporates (Helios Software Holdings Inc.), Constant Contact Inc., Ankura Consulting Group LLC and Playtika Holding Corp. emerged with new deal plans.

Kodiak flexes, breaks

Kodiak Building Partners lowered pricing on its $560 million seven-year term loan B (B2/B-) to Libor plus 325 basis points from revised talk of Libor plus 350 bps and initial talk of Libor plus 375 bps, a market source remarked.

As before, the term loan has a 0.75% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months

Previously in syndication, the term loan was upsized from $540 million.

The company’s $760 million of credit facilities also include a $200 million five-year ABL revolver.

Commitments continued to due at noon ET on Friday and the term loan B emerged in the secondary market later in the day, with levels quoted at 99¾ bid, par ¼ offered, a trader added.

RBC Capital Markets is the left lead on the deal that will be used to refinance the company’s capital structure and pay a shareholder dividend, which was increased to $200 million from $175 million due to the recent term loan upsizing.

Kodiak Building is a Highlands Ranch, Colo.-based building products distribution platform and provider of fabrication and assembly services.

Storable reworked, trades

Storable lifted its seven-year senior secured covenant-lite first-lien term loan (B2/B) to $450 million from $425 million, trimmed pricing to Libor plus 325 bps from Libor plus 375 bps, cut the Libor floor to 0.5% from 0.75% and adjusted the original issue discount to 99.75 from 99.5, according to a market source.

The first-lien term loan still has 101 soft call protection for six months.

With the first-lien term loan upsizing, the privately placed second-lien term loan was scaled back to $125 million from $150 million, the source said.

Recommitments were due at noon ET on Friday and the first-lien term loan began trading in the afternoon, with levels quoted at par bid, par 3/8 offered, another source added.

Credit Suisse Securities (USA) LLC, Antares Capital and Mizuho are leading the deal that will be used to help fund the buyout of the company by EQT Private Equity.

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

Storable is an Austin, Tex.-based provider of software, payments, insurance and marketplace solutions to the self-storage industry.

Kofax revised, breaks

Kofax raised its incremental covenant-lite first-lien term loan (B2/B) due July 2024 to $456 million from $360 million, added a 25 bps pricing step-down at 0.5x inside net closing leverage and changed the original issue discount to 99.75 from 99.5, a market source said.

Pricing on the incremental term loan is still Libor plus 475 bps with and a 1% Libor floor, and the debt still has 101 soft call protection for six months.

Recommitments were due at 2:30 p.m. ET on Friday and the incremental term loan broke in the afternoon, with levels quoted at par bid, par ½ offered, another source added.

Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Deutsche Bank Securities Inc., UBS Investment Bank and Macquarie Capital (USA) Inc. are leading the deal that will be used to fund a distribution to shareholders and, as a result of the upsizing, to repay $21 million of the 2018 term loan.

The incremental term loan will be fungible with the company’s existing 2019 $402 million tack-on term loan, which will be extended by one year from July 2023 and see pricing increase to Libor plus 475 bps from Libor plus 425 bps. Also, the original 2018 term loan will be extended by one year to July 2024 and have pricing lifted to Libor plus 475 bps from Libor plus 450 bps.

Kofax is an Irvine, Calif.-based intelligent automation platform.

PLZ modified, frees up

PLZ Aeroscience lifted pricing on its $100 million incremental first-lien term loan due August 2026 and repricing of its existing $299.3 million term loan due August 2026 to Libor plus 375 bps from Libor plus 350 bps, changed the Libor floor to 0.75% from 0% and revised the original issue discount to 99.5 from 99, according to a market source. The 101 soft call protection for six months was unchanged.

The term loan debt began trading in the afternoon, with levels quoted at 99¾ bid, par ¼ offered, another source added.

Antares Capital is leading the deal.

The incremental term loan will be used for future acquisitions and general corporate purposes, and the repricing will take the existing $299.3 million term loan down from Libor plus 425 bps with a 1% Libor floor.

The total $399.3 million term loan is no longer planned to be fungible with the company’s existing $637.5 million covenant-lite term loan B due August 2026, which is priced at Libor plus 350 bps with a 0% Libor floor, and the existing term loan will no longer be getting 101 soft call protection for six months.

PLZ, a portfolio company of Pritzker Private Capital, is a Downers Grove, Ill.-based producer of specialty aerosol and liquid packaging for various consumer and industrial products.

Horizon breaks

Horizon Therapeutics’ $1.6 billion seven-year senior secured covenant-lite term loan B (Ba1/BB+) freed up, with levels quoted at 99 7/8 bid, par ¼ offered on the break and then it moved up to par 1/8 bid, par 5/8 offered, a market source remarked.

Pricing on the term loan is Libor plus 200 bps with a 25 bps step-down at 2x total net leverage with cash netting capped at $50 million and a 0.5% Libor floor. The debt was sold at an original issue discount of 99.75 and has 101 soft call protection for six months.

During syndication, the term loan was upsized from $1.3 billion, the spread finalized at the low end of the Libor plus 200 bps to 225 bps talk and the discount was revised from 99.5.

Citigroup Global Markets Inc., Morgan Stanley Senior Funding Inc. and J.P. Morgan Securities LLC are leading the deal.

Horizon buying Viela

Horizon Therapeutics will use its new term loan with balance sheet cash to fund the acquisition of Viela Bio Inc. for $53.00 per share in cash, which represents a fully diluted equity value of $3.05 billion, or around $2.67 billion net of Viela Bio’s cash and cash equivalents. The extra funds raised from the recent term loan upsizing will be put as cash on the balance sheet for general corporate purposes.

Closing is expected in mid-March.

Horizon is a Dublin-based researcher and developer of medicines that address critical needs for people impacted by rare and rheumatic diseases. Viela Bio is a Gaithersburg, Md.-based biotechnology company dedicated to the discovery, development and commercialization of novel treatments for autoimmune and severe inflammatory diseases.

XPO frees up

XPO Logistics’ $500 million add-on covenant-lite first-lien term loan B due February 2025 and repriced $1.503 billion covenant-lite first-lien term loan B due February 2025 broke for trading, with levels quoted at par bid, par ¼ offered, according to a trader.

Pricing on the term loan debt (Baa3/BBB-) is Libor plus 175 bps with a 0% Libor floor. The add-on loan was sold at an original issue discount of 99.75 and the repricing was issued at par. The term loan debt has 101 soft call protection for six months.

Morgan Stanley Senior Funding Inc., Barclays, Credit Agricole, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs Bank USA and Wells Fargo Securities LLC are leading the deal.

Proceeds from the add-on will be used to repay an existing term loan B-1.

Closing is expected during the week of March 1.

XPO Logistics is a Greenwich, Conn.-based provider of supply chain solutions.

Berry starts trading

Berry Global’s $3.85 billion first-lien term loan Z (Ba2/BBB-/BBB-) due July 2026 also emerged in the secondary market, with levels quoted at 99¾ bid, par 1/8 offered, a market source said.

Pricing on the term loan is Libor plus 175 bps with a 0% Libor floor and it was issued at par. The debt has 101 soft call protection for six months.

Goldman Sachs Bank USA is the left lead on the deal that will be used to help refinance an existing term loan X due 2022 and term loan Y due July 2026, both priced at Libor plus 200 bps with a 0% Libor floor, and form a new repriced term loan Z.

Berry is an Evansville, Ind.-based supplier of flexible, rigid and nonwoven protective solutions for consumer, industrial and healthcare end markets.

Tegra118 hits secondary

Tegra118 Wealth Solutions’ $353,287,343 senior secured covenant-lite first-lien term loan (B2/B) due February 2027 began trading too, with levels quoted at par ½ bid, 101 offered, according to a market source.

Pricing on the term loan is Libor plus 400 bps with a 0% Libor floor and it was issued at par. The debt has 101 soft call protection for six months.

Citigroup Global Markets Inc. is leading the deal that will be used to reprice an existing term loan down from Libor plus 475 bps with a 0% Libor floor.

Closing is expected in early March.

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

Barrette tops OID

Barrette’s fungible $175 million incremental covenant-lite first-lien term loan (B2/B) due November 2027 also freed to trade, with levels quoted at par 1/8 bid, par 5/8 offered, a market source remarked.

Pricing on the incremental term loan is Libor plus 400 bps with a 25 bps step-down at 3.65x first-lien net leverage and a 0.75% Libor floor, in line with existing term loan pricing. The incremental loan was sold at an original issue discount of 99.875 and has 101 soft call protection through May 2.

During syndication, the incremental term loan was upsized from $125 million and the discount was tightened from talk in the range of 99.5 to 99.75.

Credit Suisse Securities (USA) LLC is leading the deal that will be used for general corporate purposes, including mergers and acquisitions.

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

Alacrity frees up

Alacrity Solutions Group’s fungible $60 million incremental first-lien term loan broke as well, with levels quoted at 99¼ bid, 99¾ offered, according to a trader.

Pricing on the incremental term loan is Libor plus 400 bps with a 0% Libor floor, in line with existing term loan pricing, and the new debt was sold at an original issue discount of 99.

Antares Capital is leading the deal that will be used to fund a shareholder distribution.

Alacrity, formerly known as Worley Claims Services LLC, is a Fishers, Ind.-based provider of insurance claims management services.

Bass Pro tweaked

Returning to primary market happenings, Bass Pro lifted its seven-year term loan to $4.5 billion from $4.095 billion, lowered pricing to Libor plus 425 bps from talk in the range of Libor plus 450 bps to 475 bps and firmed the original issue discount at 99.5, the wide end of the 99.5 to 99.75 talk, a market source said.

The term loan has a 0.75% Libor floor and 101 soft call protection for six months.

Recommitments were due at 2 p.m. ET on Friday, the source added.

J.P. Morgan Securities LLC is leading the deal that will be used to extend the maturity of an existing term loan from 2024 and reprice the debt from Libor plus 500 bps with a 0.75% Libor floor, and the extra funds raised will be used to redeem equity and for general corporate purposes.

Bass Pro is a Springfield, Mo.-based outdoor retailer.

TierPoint updated

TierPoint increased the Libor floor on its $676 million term loan due May 2026 to 0.75% from 0.5%, a market source remarked.

Pricing on the term loan remained at Libor plus 375 bps with an original issue discount of 99.5, and the debt still has 101 soft call protection for six months.

RBC Capital Markets is leading the deal that will be used to amend, extend and reprice an existing term loan due May 2024 priced at Libor plus 375 bps with a 1% Libor floor.

TierPoint is a St. Louis-based provider of hybrid IT solutions.

Tronox changes timing

Tronox accelerated the commitment deadline for its $1.3 billion seven-year term loan B to 5 p.m. ET on Monday from noon ET on Tuesday, a market source said.

Talk on the term loan is Libor plus 275 bps with a 0% Libor floor, an original issue discount of 99.5 to 99.75 and 101 soft call protection for six months.

The company’s $1.65 billion of credit facilities (Ba3/BB-) also include a $350 million five-year revolver.

HSBC Securities (USA) Inc., Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., BofA Securities Inc., Barclays, BNP Paribas Securities Corp., Deutsche Bank Securities Inc. and Goldman Sachs Bank USA are leading the deal.

Proceeds will be used with cash on hand and other unsecured debt, to refinance existing ABL facility and term loan B borrowings, to refinance senior notes due 2026 and to pay fees and expenses.

Tronox is a Stamford, Conn.-based producer of titanium dioxide and inorganic chemicals.

ION readies deal

ION Corporates set an investor call for 10 a.m. ET on Monday to launch an $860 million seven-year covenant-lite first-lien term loan B (B2/B) and an €860 million seven-year covenant-lite first-lien term loan B (B2/B), according to a market source.

Talk on the U.S. and euro term loans is Libor/Euribor plus 375 bps to 400 bps with a 0% floor, an original issue discount of 99.5 and 101 soft call protection for six months, the source said.

Commitments for the U.S. loan are due at 5 p.m. ET on Thursday and commitments for the euro loan are due at noon ET on Thursday.

Credit Suisse Securities is leading the deal that will be used to refinance existing debt, for general corporate purposes and to pay related fees and expenses.

ION is a provider of software and solutions focused on corporate treasury and commodities management.

Constant Contact on deck

Constant Contact scheduled a lender call for 10 a.m. ET on Monday to launch an $850 million seven-year covenant-lite first-lien term loan, of which $180 million is delayed-draw, a market source remarked.

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

Commitments are due at noon ET on March 11, the source added.

Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, BofA Securities Inc., Barclays, CPPIB, Jefferies, UBS Investment Bank, BNP Paribas Securities Corp., CBAM and Antares Capital are leading the deal.

The loan will be used to fund Clearlake Capital Group LP’s and Siris Capital Group LLC’s spin out of the company from Endurance International Group Holdings Inc. into a standalone enterprise.

Constant Contact is a Waltham, Mass.-based digital marketing company.

Ankura joins calendar

Ankura Consulting Group will hold a lender call at 1 p.m. ET on Monday to launch $615 million of term loans, split between a $465 million seven-year covenant-lite first-lien term loan and a $150 million eight-year covenant-lite second-lien term loan, according to a market source.

The first-lien term loan has 101 soft call protection for six months, and the second-lien term loan has call protection of 102 in year one and 101 in year two.

Commitments are due on March 12, the source added.

Deutsche Bank Securities Inc., Jefferies LLC, MUFG and Truist are leading the deal, with Deutsche Bank the left lead on the first-lien term loan and Jefferies the left lead on the second-lien term loan.

The term loans will be used to refinance existing debt.

Ankura is a specialty consulting platform.

Playtika coming soon

Playtika set a lender call for Monday to launch a $1.8 billion seven-year first-lien term loan, a market source said.

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

BofA Securities Inc., Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Morgan Stanley Senior Funding Inc. and Goldman Sachs Bank USA are leading the deal that will be used to refinance existing debt.

Playtika is a mobile gaming company.

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