Shearer’s, Liaison, Vertiv, Leslie’s, Packers, Ultra Clean, ADS Tactical free to trade

By Sara Rosenberg

New York, March 4 – Shearer’s Foods LLC set the spread on its first-lien term loan at the high end of guidance, and Liaison (LI Group Holdings Inc.) tightened the original issue discount on its first-lien term loan and added a pricing step-down, and then both of these deals broke for trading on Thursday.

Other deals to make their way into the secondary market during the session included Vertiv Group Corp., Leslie’s Poolmart Inc., Packers Holdings LLC (PSSI), Ultra Clean Holdings Inc. and ADS Tactical Inc.

In more happenings, Playtika Holding Corp. reduced pricing on its first-lien term loan, lowered the Libor floor and set the issue price at the tight side of talk, and Daseke Inc. trimmed the spread on its term loan B and modified original issue discount guidance.

Also, Harsco Corp. and Atotech Ltd. accelerated the commitment deadlines for their term loan transactions, and Endo International plc, Hudson River Trading LLC and WildBrain released price talk with launch.

Shearer’s updated, breaks

Shearer’s Foods finalized pricing on its $1.072 billion covenant-lite first-lien term loan (B1/B-) due September 2027 at Libor plus 350 basis points, the wide end of the Libor plus 325 bps to 350 bps talk, according to a market source.

The term loan still has a 0.75% Libor floor, a par issue price and 101 soft call protection for six months.

On Thursday afternoon, the term loan freed up for trading, with levels quoted at par bid, par 3/8 offered, another source added.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to reprice an existing term loan down from Libor plus 400 bps with a ratings-based step-down and a 0.75% Libor floor.

Shearer’s Foods is a Massillon, Ohio-based contract manufacturer of snack foods.

Liaison tweaked, frees up

Liaison changed the original issue discount on its $300 million seven-year covenant-lite first-lien term loan (B2/B) to 99.75 from 99.5, a market source said.

Also, while pricing on the term loan remained at Libor plus 375 bps, a 25 bps step-down was added at 0.5x inside closing gross leverage, the source continued.

As before, the term loan has a 0.75% Libor floor and 101 soft call protection for six months.

Recommitments were due at 10:30 a.m. ET on Thursday and the term loan broke for trading during the day, with levels quoted at par bid, par ½ offered, another source added.

Credit Suisse Securities (USA) LLC and UBS Investment Bank are leading the deal that will be used to refinance an existing term loan and for general corporate purposes.

Liaison is an admission management software provider for higher education.

Vertiv starts trading

Vertiv Group’s $2,183,500,000 senior secured covenant-lite term loan B (B1/B+) due March 2027 freed to trade, with levels quoted at par bid, par ¼ offered, according to a market source.

Pricing on the term loan is Libor plus 275 bps with a 0% Libor floor and it was issued at par. The loan 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 300 bps with a 0% Libor floor.

Closing is expected on Wednesday.

Vertiv is a Columbus, Ohio-based provider of critical digital infrastructure and continuity solutions.

Leslie’s frees up

Leslie’s Poolmart’s $810 million seven-year covenant-lite term loan B (B1/B+) emerged in the secondary market in the afternoon, with levels quoted at par bid, par 3/8 offered, a trader remarked.

Pricing on the term loan is Libor plus 275 bps with a 25 bps step-down at 2.75x net first-lien leverage 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, pricing on the term loan was lowered from Libor plus 300 bps, the step-down was revised from at 3x net first-lien leverage and the discount was tightened from 99.5.

Nomura, BofA Securities Inc., Morgan Stanley Senior Funding Inc., Goldman Sachs Bank USA and US Bank are leading the deal that will be used to refinance an existing term loan and pay related fees and expenses.

Closing is expected during the week of March 8.

Leslie’s Poolmart is a Phoenix-based retailer of swimming pool and spa care supplies and related products.

Packers hits secondary

Packers Holdings’ $1.055 billion seven-year first-lien term loan began trading too, with levels quoted at 99¾ bid, par ¼ offered, according to a trader.

Pricing on the term loan finalized in line with talk at Libor plus 325 bps with two 25 bps leverage-based step-downs and a 25 bps step-down following the consummation of a qualified initial public offering. The debt has a 0.75% Libor floor and 101 soft call protection for six months, and was sold at an original issue discount of 99.5.

The company’s $1.109 billion of credit facilities (B-/B) also include a $54 million five-year revolver.

Jefferies LLC, Nomura and Goldman Sachs Bank USA are the arrangers on the deal, and Blackstone is a co-manager.

Proceeds will be used to refinance an existing revolver and term loan.

Packers Holdings is a Kieler, Wis.-based provider of mission critical cleaning, sanitation and compliance services to the food processing industry.

Ultra Clean breaks

Ultra Clean’s fungible $355 million incremental first-lien term loan due Aug. 27, 2025 and repriced roughly $273 million first-lien term loan due Aug. 27, 2025 also surfaced in the secondary market, with levels quoted at par bid, par ¾ offered, a market source said.

Pricing on the term loan debt is Libor plus 375 bps with a step-down to Libor plus 350 bps at Ba3/BB- corporate credit ratings and a 0% Libor floor. The incremental term loan was sold at an original issue discount of 99.5 and the repricing was issued at par. The debt has 101 soft call protection for six months.

During syndication, pricing on the incremental term loan was lowered from Libor plus 450 bps and the step-down was added, and the repricing of the existing term loan down from Libor plus 450 bps was added to the transaction.

Barclays is leading the deal.

Ultra buying Ham-Let

Ultra Clean’s incremental term loan will be used to fund the acquisition of Ham-Let (Israel-Canada) Ltd. for about $348 million, which includes $287 million of equity value plus $61 million of net debt.

Closing is expected during the week of March 29.

Total leverage will be 2.9x, and net leverage will be 2x.

Ultra Clean is a Hayward, Calif.-based developer and supplier of critical subsystems, ultra-high purity cleaning, analytical and decontamination services for the semiconductor industry. Ham-Let is a manufacturer of Ultra-High Purity and industrial flow control systems largely used for the manufacturing of semiconductor devices.

ADS begins trading

ADS Tactical’s $475 million five-year term loan B broke for trading as well, with levels quoted at 98½ bid, 99½ offered, according to a market source.

Pricing on the term loan B is Libor plus 575 bps with a 1% Libor floor and it was sold at an original issue discount of 98. The debt has hard call protection of 102 in year one and 101 in year two.

During syndication, the term loan was downsized from $700 million, pricing was increased from talk in the range of Libor plus 425 bps to 450 bps, the Libor floor was revised from 0.75%, the original issue discount widened from 99, the call protection was changed from a 101 soft call for six months, the maturity was shortened from seven years, a net total leverage covenant was added to the originally covenant-lite loan and amortization was modified to 5% per annum from 1% per annum.

JPMorgan Chase Bank, Wells Fargo Securities LLC, BofA Securities Inc., PNC Bank and TD Securities (USA) LLC are leading the deal that will be used to repay existing debt and fund a dividend, the amount of which was decreased with the term loan downsizing.

ADS is a Virginia Beach, Va.-based military equipment supplier that provides tactical equipment, procurement, logistics, government contracts and supply chain solutions.

Playtika flexes

Back in the primary market, Playtika lowered pricing on its $1.8 billion seven-year first-lien term loan (Ba2/BB) to Libor plus 275 bps from Libor plus 300 bps, trimmed the Libor floor to 0% from 0.5% and firmed the original issue discount at 99.5, the tight end of the 99 to 99.5 talk, a market source remarked.

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

Recommitments are due at 11 a.m. ET on Friday, the source added.

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

Playtika is a mobile gaming company.

Daseke revised

Daseke cut the spread on its $400 million seven-year covenant-lite term B (B2/B) to Libor plus 400 bps from talk in the range of Libor plus 425 bps to 450 bps and changed original issue discount talk to a range of 99 to 99.5 from just 99, according to a market source.

As before, the term loan has a 0.75% Libor floor and 101 soft call protection for six months.

Recommitments were due at 5 p.m. ET on Thursday and allocations are expected on Friday, the source added.

JPMorgan Chase Bank is leading the deal that will be used to refinance existing debt.

Daseke is an Addison, Tex.-based owner and consolidator of flatbed and specialized transportation.

Harsco accelerated

Harsco moved up the commitment deadline for its $500 million seven-year first-lien term loan B (Ba2/BB) to 5 p.m. ET on Thursday from noon ET on Friday, a market source said.

Talk on the term loan is Libor plus 250 bps to 275 bps with a 0.5% Libor floor and an original issue discount of 99.5.

Goldman Sachs Bank USA, BMO Capital Markets, BofA Securities Inc., PNC Bank, RBC Capital Markets, Fifth Third, Citigroup Global Markets Inc. and HSBC Securities (USA) Inc. are leading the deal that will be used to refinance the company’s existing term loan A and term loan B.

Harsco is a Camp Hill, Pa.-based industrial company providing engineered products and industrial services to the steel, rail and energy industries.

Atotech moves deadline

Atotech accelerated the commitment deadline for its $1.35 billion seven-year first-lien term loan B (B1/B+) to 11 a.m. ET on Friday from noon ET on March 9, a market source remarked.

The U.S. term loan is talked at Libor plus 275 bps with a 0.5% Libor floor and an original issue discount of 99.5.

The company is also getting a €200 million seven-year first-lien term loan B (B1/B+) that is talked at Euribor plus 275 bps to 300 bps with a 0% floor and a discount of 99 to 99.5.

Both term loans have 101 soft call protection for six months.

Goldman Sachs Bank USA, JPMorgan Chase Bank, Barclays, Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Unicredit, Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., Standard Chartered and TCG are leading the deal that will be used to refinance an existing revolver and term loan B, add cash to balance sheet and pay related fees and expenses.

Atotech is a Berlin-based specialty chemicals technology company.

Endo holds call

Endo International emerged in the morning with plans to hold a lender call at 4 p.m. ET on Thursday to launch a $2.295 billion senior secured term loan B (B2/B+) talked at Libor plus 425 bps with a 0.75% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months, according to a market source.

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

JPMorgan Chase Bank, RBC Capital Markets, Goldman Sachs Bank USA, BofA Securities Inc. and Barclays are leading the deal that will be used with other debt issuances to refinance an existing $3.3 billion senior secured term loan due 2024.

Endo is a Dublin, Ireland-based specialty pharmaceutical company.

Hudson guidance

Hudson River Trading came out with talk of Libor plus 300 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months on its $1.725 billion seven-year first-lien term loan B (Ba2/BB-) that launched with a call in the morning, a market source said.

Commitments are due at 5 p.m. ET on March 16, the source added.

Goldman Sachs Bank USA, BofA Securities Inc. and JPMorgan Chase Bank are leading the deal, which will be used to refinance an existing $1.225 billion term loan and add cash to the balance sheet.

Hudson River Trading is a New York-based electronic market maker and liquidity provider.

WildBrain sets talk

WildBrain held its call in the afternoon and announced talk on its $280 million seven-year covenant-lite first-lien term loan B at Libor plus 425 bps with a 0.75% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months, according to a market source.

Commitments are due at 5 p.m. ET on March 18, the source added.

RBC Capital Markets is leading the deal that will be used to repay an existing term loan B.

WildBrain is a Canada-based kids’ content company.

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