Birkenstock breaks; Insulet, Press Ganey, Surgery Partners tweak deals; PQ moves deadline

By Sara Rosenberg

New York, April 27 – Birkenstock downsized its U.S. term loan B and firmed pricing at the low end of talk, upsized its euro term loan B and trimmed the spread, and tightened issue prices on both tranches, and then the U.S. loan freed to trade on Tuesday.

In more happenings, Insulet Corp. lowered pricing on its first-lien term loan B and updated the original issue discount, and Press Ganey (Azalea TopCo Inc.) reduced the spread on its new incremental first-lien term loan and set the issue price at the tight side of guidance, and added a repricing of its existing incremental first-lien term loan to the transaction.

Also, Surgery Partners Inc. (Surgery Center Holdings Inc.) raised the spread on its incremental first-lien term loan, reduced the Libor floor, set the original issue discount at the tight end of talk and extended the maturity, and added a maturity extension of its existing term loan to the mix.

Furthermore, PQ Performance Chemicals accelerated the commitment deadline for its first-lien term loan, USIC Holdings Inc. and Digital Media Solutions LLC announced price talk with launch, and ANI Pharmaceuticals Inc. and Cordis (Bayou Intermediate II LLC) joined this week’s primary calendar.

Birkenstock updated

Birkenstock scaled back its U.S. seven-year term loan B (B1/B/BB-) to $850 million from €750 million equivalent and finalized pricing at Libor plus 375 basis points, the low end of the Libor plus 375 bps to 400 bps, according to a market source.

The company also lifted its euro seven-year term loan B (B1/B/BB-) to €375 million from €325 million and lowered pricing to Euribor plus 350 bps from talk in the range of Euribor plus 375 bps to 400 bps, the source said.

Also, the two 25 bps step-downs under the term loans were changed to at 0.5x and 1x inside closing date senior secured net leverage from at 0.25x and 0.5x inside closing date senior secured net leverage, and the original issue discount on both term loans was revised to 99.5 from 99.

As before, the U.S. term loan has a 0.5% Libor floor, the euro term loan has a 0% floor and both loans have 101 soft call protection for six months.

Birkenstock frees up

On Tuesday, Birkenstock’s U.S. term loan B began trading, with levels quoted at 99¾ bid, par ½ offered, another source added.

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

Closing is expected this month.

Birkenstock is a Germany-based shoe company.

Insulet flexes

Back in the primary market, Insulet cut pricing on its $500 million seven-year senior secured covenant-lite first-lien term loan B (Ba3/B+) to Libor plus 325 bps from talk in the range of Libor plus 350 bps to 375 bps and firmed the original issue discount at 99.5, the tight end of the 99 to 99.5 talk, according to a market source.

The term loan still has a 0.5% Libor floor and 101 soft call protection for six months.

Commitments are due at 5 p.m. ET on Wednesday, accelerated from 5 p.m. ET on Thursday, the source added.

The company also plans on getting a new senior secured revolver.

Morgan Stanley Senior Funding Inc. and Citigroup Global Markets Inc. are leading the deal that will be used for general corporate purposes, including to retire debt and/or to fund investments.

Insulet is an Acton, Mass.-based medical device company dedicated to simplifying life for people with diabetes and other conditions.

Press Ganey revised

Press Ganey trimmed pricing on its new fungible $180 million incremental first-lien term loan (B) due July 25, 2026 to Libor plus 375 bps from Libor plus 400 bps and finalized the original issue discount at 99.5, the tight end of the 99 to 99.5 talk, a market source remarked.

Also, the company added a repricing of its existing $180 million incremental first-lien term loan to Libor plus 375 bps from Libor plus 400 bps, and is offering the repricing at par, the source continued.

The pricing step-down to Libor plus 375 bps at 5.25x first-lien net leverage was removed from the new incremental term loan and the existing incremental term loan.

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

Press Ganey leads

Barclays, Goldman Sachs Bank USA, BMO Capital Markets and Deutsche Bank Securities Inc. are leading Press Ganey’s loan transaction.

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

The new incremental term loan will be used to help fund the acquisition of a health care analytics provider for the Payer vertical.

Press Ganey is a South Bend, Ind.-based provider of patient experience analytics and performance improvement solutions to health care organizations, delivered through a proprietary software suite.

Surgery Partners reworked

Surgery Partners lifted the spread on its $125 million senior secured incremental covenant-lite first-lien term loan to Libor plus 375 bps from Libor plus 325 bps, revised the Libor floor to 0.75% from 1%, set the original issue discount at 99.5, the tight end of the 99.27 to 99.5 talk, and extended the maturity to August 2026 from August 2024, according to a market source.

Furthermore, the company added an extension of its existing term loan to Aug. 31, 2026 from Aug. 31, 2024 and pricing on the extended term loan is Libor plus 375 bps with a 0.75% Libor floor compared to current pricing of Libor plus 325 bps with a 1% Libor floor, the source continued.

Extending lenders will receive a 25 bps fee, and all of the 2026 term loan debt will get 101 soft call protection for six months.

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

Surgery Partners refinancing

Surgery Partners will use the incremental term loan to repay an existing non-fungible $119.1 million add-on first-lien term loan priced at Libor plus 800 bps, and to pay applicable prepayment premiums and transaction related fees and expenses.

Jefferies LLC, Barclays, JPMorgan Chase Bank, KKR Capital Markets and Macquarie Capital (USA) Inc. are leading the deal.

Surgery Partners is a Brentwood, Tenn.-based operator of short-stay surgical facilities.

PQ Performance accelerated

PQ Performance Chemicals moved up the commitment deadline for its $750 million seven-year first-lien term loan (B1/B+) to noon ET on Thursday from 5 p.m. ET on May 4, a market source said.

Talk on the term loan is Libor plus 375 bps to 400 bps with two 25 bps step-downs at 0.5x and 1x inside closing date first-lien net leverage, a 0.75% Libor floor, an original issue discount of 99, 101 soft call protection for six months, and a ticking fee of half the margin from days 46 to 90 and the full margin thereafter.

Goldman Sachs Bank USA, Barclays, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., RBC Capital Markets, BMO Capital Markets, KeyBanc Capital Markets, Macquarie Capital (USA) Inc. and BNP Paribas Securities Corp. are leading the deal that will be used with equity to fund the $1.1 billion buyout of the company by Koch Minerals & Trading LLC and Cerberus Capital Management LP from PQ Group Holdings Inc.

Closing is expected this year.

PQ Performance Chemicals is a producer of sodium silicates, specialty silicas and zeolites.

USIC reveals guidance

USIC held its call on Tuesday and disclosed price talk on its $955 million seven-year first-lien term loan (B-) and $335 million eight-year second-lien term loan (CCC) with its lender call, according to a market source.

Talk on the first-lien term loan is Libor plus 375 bps to 400 bps with a 25 bps step-down at 0.5x inside closing date first-lien net leverage, a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and talk on the second-lien term loan is Libor plus 700 bps with a 0.75% Libor floor, an original issue discount of 98 to 99 and hard call protection of 102 in year one and 101 in year two, the source said.

Commitments are due at 5 p.m. ET on May 6.

Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc., BofA Securities Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., MUFG, Antares Capital and Citizens are leading the deal that will be used to refinance an existing first-lien term loan due 2023 and an existing second-lien term loan due 2024, and to fund a distribution to shareholders.

Partners Group is the sponsor.

USIC is an Indianapolis-based provider of underground utility locating services.

Digital Media talk

Digital Media Solutions came out with talk of Libor plus 450 bps to 475 bps with a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for six months on its $225 million seven-year term loan B that launched with a call in the afternoon, a market source remarked.

The company’s $275 million of credit facilities (B2/B) also include a $50 million five-year revolver.

Commitments are due on May 11, the source added.

Truist and Fifth Third are leading the deal, which will be used to refinance existing debt.

Digital Media is a Clearwater, Fla.-based adtech company.

ANI timing emerges

ANI Pharmaceuticals will hold a lender call at 2 p.m. ET on Thursday to launch its previously announced $340 million of credit facilities (B2/B+), according to a market source.

The facilities consist of a $40 million five-year revolver and a $300 million six-year term loan B.

Truist Securities, Regions Capital Markets and Huntington Securities are leading the deal that will be used to help fund the acquisition of Novitium Pharma for $89.5 million in cash and $74 million in equity, plus two potential future cash earn-outs of up to $46.5 million, and to refinance existing ANI debt.

A $25 million PIPE investment by Ampersand Capital Partners will also help fund the transaction.

Closing is expected in the second half of this year, subject to regulatory approvals and approval by ANI shareholders.

ANI is a Baudette, Minn.-based specialty pharmaceutical company. Novitium is an East Windsor, N.J.-based pharmaceutical company.

Cordis on deck

Cordis set a lender call for 11 a.m. ET on Thursday to launch a $350 million seven-year covenant-lite first-lien term loan B (//BB+), a market source said.

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

Commitments are due at 5 p.m. ET on May 12, the source added.

Deutsche Bank Securities Inc., UBS Investment Bank, Credit Suisse Securities (USA) LLC and Golub Capital are leading the deal that will be used to help fund the buyout of the company by Hellman & Friedman from Cardinal Health for about $1 billion.

Closing is expected in Cardinal Health’s fiscal year 2022, subject to customary conditions and regulatory clearances.

Cordis is a developer and manufacturer of interventional vascular technology.

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