ArcLight NGPL breaks; Jazz, United Airlines, UPC, GMS, Cision release price guidance

By Sara Rosenberg

New York, April 12 – ArcLight NGPL Holdings LLC (AL NGPL Holdings LLC) increased the size of its term loan, lowered the spread and firmed the original issue discount at the tight end of guidance before freeing up for trading on Monday.

In more happenings, Jazz Pharmaceuticals plc, United Airlines Inc., UPC, GMS Inc. (GYP Holdings III Corp.) and Cision released talk with launch.

Also, Wells Fargo Asset Management, Liberty Tire Recycling (LTR Intermediate Holdings Inc.), Gogo Inc., Wheel Pros Inc., Resonetics LLC, Birkenstock and FleetCor Technologies Inc. joined this week’s primary calendar.

ArcLight reworked, trades

ArcLight NGPL raised its seven-year senior secured term loan to $425 million from $400 million, trimmed pricing to Libor plus 375 basis points from talk in the range of Libor plus 400 bps to 425 bps and set the original issue discount at 99.5, the tight end of the 99 to 99.5 talk, according to a market source.

In addition, the incremental was reduced to $35 million in the aggregate from $60 million.

As before, the term loan has a 1% Libor floor and 101 soft call protection for six months.

Final commitments were due at noon ET on Monday and the term loan began trading in the afternoon, with levels quoted at 99¾ bid, par ½ offered, another source added.

Barclays, Goldman Sachs Bank USA, MUFG and Natixis are leading the deal that will be used to support the $830 million acquisition by an affiliate of ArcLight Capital Partners of a 25% stake in NGPL Holdings LLC, which indirectly owns 100% of Natural Gas Pipeline Co. of America LLC. The stake is being bought from Kinder Morgan Inc. and Brookfield Infrastructure Partners LP.

NGPL is a FERC-regulated natural gas pipeline system.

Jazz guidance

Jazz Pharmaceuticals held its call on Monday and announced talk on its $2.65 billion equivalent U.S. and euro term loan B (Ba2/BB-/BB+) at Libor/Euribor plus 350 bps to 375 bps with an original issue discount of 99 to 99.5 and 101 soft call protection for six months, a market source said. The U.S. term loan is talked with a 0.5% Libor floor and the euro term loan is talked with a 0% floor.

Commitments are due at noon ET on April 22, the source added.

BofA Securities Inc., JPMorgan Chase Bank, Barclays, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, DNB, MUFG, RBC Capital Markets, SMBC and Truist are leading the deal that will be used to help fund the acquisition of GW Pharmaceuticals plc for $220 per American Depositary Share, in the form of $200 in cash and $20 in Jazz ordinary shares, for a total consideration of $7.2 billion, or $6.7 billion net of GW cash.

Closing is expected in the second quarter, subject to the approval of GW shareholders, sanction by the High Court of Justice of England and Wales and other customary conditions, including regulatory approvals.

Dublin, Ireland-based Jazz and Cambridge, U.K.-based GW are biopharmaceutical companies.

United proposed terms

United Airlines held a call at noon ET to launch a $3.5 billion seven-year senior secured term loan B (Ba1/BB-/BB) talked at Libor plus 450 bps with a 0.75% Libor floor, an original issue discount of 98.5 to 99 and call protection of non-callable for one year, then at 102 in year two, according to a market source.

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

The company also plans to get a $1.75 billion senior secured revolver due 2025.

JPMorgan Chase Bank, Barclays, BofA Securities Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc., Credit Suisse Securities (USA) LLC, BNP Paribas Securities Corp. and Credit Agricole are leading the deal that will be used with $5.5 billion of senior secured notes to repay in full a $1.4 billion term loan entered into on March 29, 2017, $1 billion of revolver borrowings and $520 million outstanding under the CARES Act term loan, for general corporate purposes and to pay fees and expenses relating to the notes offering.

United Airlines is a Chicago-based airline company.

UPC holds call

UPC surfaced in the morning with plans to hold a lender call at 11 a.m. ET to launch a $2 billion term loan B (B1/BB-/BB+) due Jan. 31, 2029 and an €800 million term loan B (B1/BB-/BB+) due Jan. 31, 2029, a market source remarked.

Talk on the U.S. term loan is Libor plus 300 bps with a 0% Libor floor and an original issue discount of 99 to 99.5, and talk on the euro term loan is Euribor plus 300 bps with a 0% floor and a discount of 99.5 to 99.75, the source continued. Both loans have an ESG ratchet in pricing and 101 soft call protection for six months.

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

BofA Securities Inc., Citigroup Global Markets Inc. and The Bank of Nova Scotia are the physical bookrunners on the U.S. loan, and BofA, BNP Paribas Securities Corp. and Scotia are the physical bookrunners on the euro loan. BofA is the sustainability arranger. Credit Suisse, Deutsche Bank Securities Inc., Goldman Sachs, ING, JPMorgan Chase Bank and Societe Generale are joint bookrunners. Scotia is the administrative agent.

Proceeds will be used with cash on the balance sheet to refinance an existing $2.6 billion term loan B due 2029 and an existing €800 million term loan B due 2029 priced at Libor/Euribor plus 350 bps.

UPC, a subsidiary of Liberty Global, is cable company in Europe.

GMS launches

GMS announced in the morning its intention to hold a lender call at 11 a.m. ET to launch a roughly $574 million senior secured first-lien term loan B (Ba3/BB) due June 1, 2025 talked at Libor plus 225 bps to 250 bps with a 0% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

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

Barclays is the left bookrunner on the deal. Credit Suisse Securities (USA) LLC is the administrative agent.

The term loan will be used with $300 million of senior notes to refinance/reprice an existing first-lien term loan B priced at Libor plus 275 bps with a 0% Libor floor.

GMS is a Tucker, Ga.-based distributor of interior construction products.

Cision sets talk

Cision launched on its call its fungible $295 million incremental term loan due January 2027 with original issue discount talk of 98.78, a market source said.

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

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

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

BofA Securities Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc., Deutsche Bank Securities Inc., BMO Capital Markets, BNP Paribas Securities Corp., Citigroup Global Markets Inc., Macquarie Capital (USA) Inc. and RBC Capital Markets are leading the deal that will be used to help fund the $450 million acquisition of Brandwatch, a Brighton, U.K.-based provider of social listening and content marketing analytics.

Closing is expected in the second quarter.

Cision is a Chicago-based provider of PR, marketing and social media management technology and intelligence.

Wells Fargo on deck

Wells Fargo Asset Management set a lender call for 10 a.m. ET on Tuesday to launch $1.41 billion of senior secured credit facilities (Ba2/BB-), according to a market source.

The facilities consist of a $170 million revolver and a $1.24 billion first-lien term loan B, the source said.

Morgan Stanley Senior Funding Inc. is the left lead on the deal that will be used to help fund the $2.1 billion acquisition of the company by GTCR LLC and Reverence Capital Partners LP from Wells Fargo & Co., and to pay fees, expenses and original issue discount related to the transaction.

Closing is expected in the second half of this year, subject to regulatory approvals and contractual consents.

Wells Fargo Asset is an asset management firm.

Liberty readies deal

Liberty Tire Recycling will hold a lender call at 10 a.m. ET on Tuesday to launch $470 million of senior secured credit facilities, a market source remarked.

The facilities consist of a $60 million revolver and a $410 million green first-lien term loan B, the source added.

Morgan Stanley Senior Funding Inc. is the left lead on the deal that will be used to fund the buyout of the company by Energy Capital Partners from the Carlyle Group.

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

Liberty Tire is a Pittsburgh-based provider of tire recycling services.

Gogo timing emerges

Gogo scheduled a lender call for 1 p.m. ET on Tuesday to launch its previously announced $825 million of senior secured credit facilities (B3/B-), according to a market source.

The facilities consist of a $100 million five-year revolver and a $725 million seven-year first-lien term loan B.

Morgan Stanley Senior Funding Inc. is the left lead on the deal. Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. also provided the debt commitment.

The new debt will be used with cash on hand to repay 9.875% secured notes and to refinance and terminate an existing asset-based revolver.

Gogo is a Chicago-based provider of broadband connectivity services for the business aviation market.

Wheel Pros coming soon

Wheel Pros set a lender call for 11 a.m. ET on Tuesday to launch a $1 billion seven-year covenant-lite first-lien term loan (B2/B-), a market source said.

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

Commitments are due at 5 p.m. ET on April 22, the source added.

Deutsche Bank Securities Inc., Wells Fargo Securities LLC, Jefferies LLC, Credit Suisse Securities (USA) LLC, KKR Capital Markets and UBS Investment Bank are leading the deal that will be used to fund the acquisition of the company by Fund Icon Partners III, a single asset investment vehicle managed by Clearlake Capital Group as general partner, from Clearlake managed funds and to refinance existing debt.

Closing is expected in the second quarter.

Wheel Pros is a Denver-based distributor of proprietary branded wheels and performance tires.

Resonetics joins calendar

Resonetics scheduled a lender call for 10 a.m. ET on Tuesday to launch $390 million of first-lien credit facilities, split between a $50 million revolver and a $340 million seven-year covenant-lite first-lien term loan, according to a market source.

Talk on the first-lien term loan is Libor plus 400 bps to 425 bps with a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, the source continued.

Commitments are due at noon ET on April 23.

The company is also getting a $100 million privately placed second-lien term loan.

Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, BMO Capital Markets and Antares Capital are leading the deal that will be used to refinance existing debt and fund cash to holdco.

Resonetics is a MedTech contract manufacturing organization specializing in micro-manufacturing and other highly technical capabilities.

Birkenstock plans call

Birkenstock set a lender call for 10 a.m. ET on Wednesday to launch a roughly $892 million (€750 million equivalent) U.S. term loan B and a €325 million term loan B, a market source remarked.

Goldman Sachs, Credit Suisse, Citigroup Global Markets Inc., HSBC, Commerzbank and Credit Agricole are leading the deal that will be used with €430 million equivalent of senior unsecured debt to help fund the acquisition of a majority stake in the company by L Catterton.

Birkenstock is a Germany-based shoe company.

FleetCor on deck

FleetCor will hold a lender call at 10 a.m. ET on Tuesday to launch a $1.15 billion seven-year term loan B (Ba1), according to a market source.

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

BofA Securities Inc., MUFG, PNC Bank, TD Securities (USA) LLC, Wells Fargo LLC, BMO Capital Markets, Capital One, Fifth Third, Mizuho, Regents Bank and Bank of Nova Scotia are leading the deal that will be used to refinance existing debt and to fund an acquisition.

FleetCor is an Atlanta-based business payments company.

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