Quikrete, Nuvei, Dole, ExGen Renewables break; Paya, E2open accelerate loan deadlines

By Sara Rosenberg

New York, June 11 – Quikrete Holdings Inc.’s term loan B-1 made its way into the secondary market on Friday, with levels quoted above its original issue discount, and deals from Nuvei Corp., Dole plc and ExGen Renewables IV LLC freed to trade as well.

Moving to the primary market, Paya Inc. and E2open accelerated the commitment deadlines for their term loan transactions.

Also, ArchKey Solutions (ArchKey Holdings Inc.), Aspen Dental Management, Milk Specialties Co. and BGIS (Brookfield Global Integrated Solutions) joined the near-term primary calendar.

Quikrete starts trading

Quikrete’s $1.7 billion seven-year incremental covenant-lite term loan B-1 broke for trading on Friday, with levels quoted at 99½ bid, 99¾ offered, according to a market source.

Pricing on the term loan B-1 is Libor plus 300 basis points with a 0% Libor floor, and it was sold at an original issue discount of 99.25. The debt has 101 soft call protection for six months and a ticking fee of half the margin from days 31 to 60 and the full margin plus Libor thereafter.

During syndication, the term loan B-1 was upsized from $1.5 billion and the discount finalized at the midpoint of the 99 to 99.5 talk,

Wells Fargo Securities LLC is leading the deal that will help fund the acquisition of Forterra Inc. for $24.00 per share in a transaction valued at $2.74 billion, including outstanding debt. The recent upsize to the term loan B-1 will be used as purchase consideration at close, reducing a term loan B-2 commitment dollar-for-dollar.

Closing on the acquisition is expected in the fourth quarter, subject to receipt of clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and other customary conditions.

Quikrete is an Atlanta-based building materials company. Forterra is an Irving, Tex.-based manufacturer of water and drainage infrastructure pipe and products.

Nuvei hits secondary

Nuvei’s $300 million add-on term loan and repriced $212 million term loan also freed to trade, with levels quoted at par 3/8 bid, par ¾ offered, a trader said.

Pricing on the term loan debt is Libor plus 250 bps with a 0.5% Libor floor. The add-on term loan was sold at an original issue discount of 99.75, and the repriced loan was issued at par. The term loan debt has 101 soft call protection for six months.

During syndication, the add-on term loan was upsized from $200 million and the discount was tightened from 99.5, and the spread on the term loan debt firmed at the low end of the Libor plus 250 bps to 275 bps talk.

BMO Capital Markets is leading the deal.

Proceeds from the add-on term loan will be used for acquisition financing and general corporate purposes, and the repricing will take the existing term loan down from Libor plus 400 bps with a 0.75% Libor floor.

Nuvei is a Montreal-based payment technology company.

Dole frees up

Dole’s $540 million term loan B due 2028 began trading too, with levels quoted at 99 7/8 bid, par 3/8 offered, according to a market source.

Pricing on the term loan B is Libor plus 200 bps with a 0% Libor floor and it was sold at an original issue discount of 99.5. The loan has 101 soft call protection for six months.

During syndication, pricing on the term loan B was reduced from talk in the range of Libor plus 225 bps to 250 bps, the Libor floor was changed from 0.5% and the discount was set at the tight end of the 99 to 99.5 talk.

BofA Securities Inc., Rabobank and Goldman Sachs Bank USA are leading the term loan B.

The company’s $1.44 billion of credit facilities (Ba3/BB+) also include a $600 million revolver due 2026 and a $300 million term loan A due 2026, the source said.

Proceeds will be used to help fund the merger of Dole Food Co. Inc. and Total Produce plc to create Dole plc and refinance existing debt at the companies.

Closing is subject to Total Produce shareholder and regulatory approvals, and customary conditions.

Dole plc is a Dublin, Ireland-based fresh produce company.

ExGen breaks

ExGen’s roughly $733,122,000 senior secured green term loan B (Ba3/BB-) due December 2027 hit the secondary market as well, with levels quoted at par 1/8 bid, par ½ offered, a market source remarked.

Pricing on the term loan is Libor plus 250 bps with a 1% Libor floor, and it was issued at par. The debt has 101 soft call protection for six months.

Jefferies LLC is leading the deal that will be used to reprice an existing term loan B down from Libor plus 275 bps with a 1% Libor floor.

ExGen Renewables is a Chicago-based owner of renewable generation projects in the United States indirectly owned by Exelon.

Paya moves deadline

Switching to the primary market, Paya accelerated the commitment deadline for its $250 million seven-year covenant-lite first-lien term loan to 5 p.m. ET on Wednesday from noon ET on June 18, according to a market source.

Talk on the term loan is Libor plus 375 bps with a 0.75% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months.

The company’s $295 million of credit facilities (B1/B+) also include a $45 million revolver.

Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc., Jefferies LLC, Ares, Golub Capital and GSO are leading the deal that will be used to refinance an existing term loan.

Paya is an Atlanta-based integrated payments and commerce platform.

E2open accelerated

E2open moved up the commitment deadline for its fungible $380 million add-on term loan B (B2/B) due February 2028 to 11 a.m. ET on Tuesday from noon ET on Thursday, a market source said.

Signature pages for an amendment to the company’s existing term loan B are due at noon ET on Tuesday, the source added.

Pricing on the add-on term loan is Libor plus 350 bps with a 25 bps step-down at less than 3.3x first-lien net leverage and a 0.5% Libor floor, in line with existing term loan B pricing, and the new debt is talked with an original issue discount of 99 to 99.5 and a ticking fee of half the margin from days 46 to 90 and the full margin thereafter.

The add-on and existing term loan B debt are getting 101 soft call protection for six months.

Based on the commitment letter, the company is also expected to get a $30 million incremental revolver.

Goldman Sachs Bank USA and Credit Suisse Securities (USA) LLC are the bookrunners on the deal.

E2open buying BluJay

E2open will use the new bank debt to help fund its acquisition of BluJay Solutions for an aggregate of 72.4 million shares of class A common stock and about $760 million of cash, which includes the repayment of debt, subject to certain adjustments. The stock and cash transaction is valued at around $1.7 billion.

Along with the bank debt, the company has secured for the transaction $300 million in a common equity PIPE from institutional investors including Neuberger Berman, the WindAcre Partnership, Eminence Capital and XN.

Pro forma net leverage is expected to be 4.1x fiscal year 2022 EBITDA at closing.

Closing is targeted for the third quarter, subject to regulatory approvals, E2open shareholder approval and other customary conditions.

E2open is an Austin, Tex.-based network-based provider of cloud-based, mission-critical, end-to-end supply chain management software. BluJay is a Holland, Mich.-based cloud-based, logistics execution platform.

ArchKey readies loan

ArchKey set a lender call for 10:30 a.m. ET on Monday to launch a $320 million seven-year covenant-lite first-lien term loan, according to a market source.

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

Commitments are due at noon ET on June 24.

Deutsche Bank Securities Inc., Barclays and UBS Investment Bank are leading the deal that will be used to help fund the buyout of the company by One Rock Capital Partners LLC.

Closing is expected this summer, subject to customary conditions.

ArchKey is a St. Louis-based electrical and technologies contracting and services provider.

Aspen Dental on deck

Aspen Dental Management will hold a lender call at 1:30 p.m. ET on Monday to launch a non-fungible $700 million incremental term loan (B2), a market source remarked.

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

Aspen Dental is an East Syracuse, N.Y.-based dental support organization.

Milk Specialties coming soon

Milk Specialties scheduled a lender call for noon ET on Monday to launch a fungible $80 million incremental first-lien term loan due August 2025 and an extension of its existing $439 million first-lien term loan to August 2025 from August 2023, according to a market source.

The first-lien term loan debt is getting 101 soft call protection for six months, the source said.

Commitments are due at 5 p.m. ET on June 23.

Credit Suisse Securities (USA) LLC is leading the deal.

Proceeds from the incremental term loan will be used with a $100 million privately placed second-lien term loan and cash on hand to fund a shareholder distribution.

Milk Specialties is an Eden Prairie, Minn.-based produced of dairy based specialty functional ingredients.

BGIS joins calendar

BGIS set a lender call for 11:30 a.m. ET on Monday to launch a new loan deal to current and prospective lenders, a market source said.

Citigroup Global Markets Inc. is leading the transaction.

BGIS is an integrated facilities management company.

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