Synaptics, Petmate, Atlantic, LaserShip, All My Sons, Precisely, Pacific, Traverse break

By Sara Rosenberg

New York, Oct. 20 – Synaptics Inc. lowered pricing on its first-lien term loan, added a step-down and revised the original issue discount, Petmate raised the spread and Libor floor on its first-lien term loan, and sweetened the call protection, and Atlantic Aviation (KKR Apple Bidco LLC) finalized the issue price on its incremental first-lien term loan at the tight end of guidance, and then these freed to trade on Wednesday.

Other deal to make their way into the secondary market during the session included LaserShip Inc., All My Sons, Precisely, Pacific Bells LLC, Traverse Midstream Partners LLC and McGraw-Hill Education Inc.

In other news, MKS Instruments Inc. revised price talk on its U.S. and euro term loans, and Alliant Holdings upsized its add-on term loan B-3, lowered the spread and changed the original issue discount, and added a repricing of its existing term loan B-3.

Also, UFC Holdings LLC set the issue price on its add-on term loan B within talk, and Idera Inc. firmed the original issue discount on its incremental first-lien term loan at the tight side of guidance.

Additionally, Gray Television Inc., Motus and Mission Veterinary Partners released price talk with launch, and IntraFi Network LLC (Nexus Buyer LLC), Byju’s (Think & Learn Private Ltd.), TransMontaigne Operating Co. LP and Hamilton Projects Acquiror LLC emerged with new deal plans.

Synaptics flexes, frees

Synaptics trimmed pricing on its $600 million seven-year first-lien term loan (Ba1/BB-) to Libor plus 225 basis points from Libor plus 250 bps, added a 25 bps step-down at 1x inside of opening total gross leverage and modified the original issue discount to 99.75 from talk in the range of 99 to 99.5, according to a market source.

The 0.5% Libor floor and 101 soft call protection for six months on the term loan were unchanged.

Recommitments were due at noon ET on Wednesday and the term loan broke for trading later in the day, with levels quoted at 99 7/8 bid, par 3/8 offered, another source added.

Barclays, Wells Fargo Securities LLC, MUFG and BMO Capital Markets are leading the deal that will be used to fund the acquisition of DSP Group Inc. for $22.00 per share. Wells Fargo is the agent.

Closing is expected is early December, subject to DSP shareholder approval and customary conditions.

Synaptics is a San Jose, Calif.-based provider of high performance IoT and PC semiconductor solutions. DSP is a provider of voice and wireless chipset solutions for converged communications.

Petmate reworked, trades

Petmate lifted pricing on its $525 million first-lien term loan (B3/B-) to Libor plus 550 bps from talk in the range of Libor plus 475 bps to 500 bps, revised the Libor floor to 0.75% from 0.5% and extended the soft call protection to one year from six months, according to a market source.

The first-lien term loan still has an original issue discount of 99.

During the session, the first-lien term loan began trading, with levels quoted at 99 3/8 bid, 99 7/8 offered, a trader added.

The company is also getting a $155 million privately placed second-lien term loan (Caa2/CCC).

BMO Capital Markets, Jefferies LLC, Antares Capital and KKR Capital Markets are leading the deal that will be used to help fund the buyout of the company by Platinum Equity.

Petmate is an Arlington, Tex.-based manufacturer of pet products.

Atlantic finalizes, breaks

Atlantic Aviation firmed the original issue discount on its fungible $330 million incremental first-lien term loan due 2028 at 99.75, the tight end of the 99.5 to 99.75 talk, according to a market source.

Like the existing first-lien term loan, the incremental term loan is priced at Libor plus 300 bps with a 0.5% Libor floor.

In the afternoon, the incremental first-lien term loan broke for trading, with levels quoted at par bid, par 3/8 offered, another source added.

Jefferies LLC and KKR Capital Markets are leading the deal that will be used to fund the acquisition of LYNX Aviation.

Pro forma for the transaction, the first-lien term loan will total $1.68 billion.

Atlantic Aviation is an operator of fixed base operations, providing a full suite of critical services to the private aviation sector.

LaserShip hits secondary

LaserShip’s bank debt freed to trade in the morning, with the fungible $700 million incremental first-lien term loan due May 7, 2028 quoted at par bid, par ½ offered and the fungible $250 million incremental second-lien term loan due May 7, 2029 quoted at 99¾ bid, par ¾ offered, a trader remarked.

Pricing on the incremental first-lien term loan is Libor plus 450 bps with one leverage-based step-down and one step-down upon completion of an initial public offering, and a 0.75% Libor floor. The debt was sold at an original issue discount of 99.5.

The incremental second-lien term loan is priced at Libor plus 750 bps with one step-down upon completion of an initial public offering and a 0.75% Libor floor. This tranche was issued at a discount of 99.

During syndication, the incremental first-lien term loan was upsized from $650 million. Also, the incremental second-lien term loan was upsized from $225 million and the discount was tightened from 98.5.

The company is also getting a $50 million incremental revolver due May 7, 2026.

LaserShip buying OnTrac

Proceeds from LaserShip’s term loans will be used to fund the acquisition of OnTrac Logistics Inc.

Jefferies LLC, RBC Capital Markets, Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc. and UBS Investment Bank are leading the deal.

Pro forma for the transaction, the revolver will total $125 million, the first-lien term loan will total $1.375 billion and the second-lien term loan will total $455 million.

LaserShip is a regional last mile parcel delivery provider in the eastern United States with a focus on business to consumer deliveries for e-commerce retailers. OnTrac is a Chandler, Ariz.-based logistics company.

All My Sons breaks

All My Sons’ $290 million covenant-lite first-lien term loan (B2/B-) allocated on Tuesday night and then the debt made its way into the secondary market on Wednesday, with levels quoted at 99¼ bid, 99¾ offered, according to a market source.

Pricing on the first-lien term loan is Libor plus 500 bps with a 0.75% Libor floor and it was sold at an original issue discount of 99. The debt has 101 soft call protection for six months.

During syndication, pricing on the first-lien term loan was increased from Libor plus 425 bps, the discount firmed at the wide end of the 99 to 99.5 talk and changes were made to documentation.

The company’s $455 million of senior secured credit facilities also include a $50 million revolver (B2/B-) and a $115 million privately placed second-lien term loan.

Antares Capital and Golub Capital are leading the deal that will be used to support a recapitalization of the company by Golden Gate Capital in partnership with the founder and management team.

All My Sons is a Carrollton, Tex.-based provider of residential moving and related services.

Precisely frees up

Precisely’s repriced $2.205 billion first-lien term loan due April 2028 also broke for trading, with levels quoted at par bid, par ¼ offered, a market source said.

Pricing on the term loan is Libor plus 400 bps with a 0.75% Libor floor and it was issue at par. The debt has 101 soft call protection for six months.

During syndication, the floor on the term loan was increased from 0.5% and the issue price was set at the the tight end of the 99.875 to par talk, and plans were terminated for a fungible $50 million add-on first-lien term loan due April 2028 for general corporate purposes.

JPMorgan Chase Bank is leading the deal that will reprice an existing first-lien term loan down from Libor plus 425 bps with a 0.75% Libor floor.

Precisely is a provider of data integrity software.

Pacific Bells tops OID

Pacific Bells’ $460 million seven-year covenant-lite term loan B and $25 million seven-year covenant-lite delayed-draw term loan B freed up as well, with levels quoted at 99¼ bid, 99 5/8 offered, according to a market source.

Pricing on the term loan debt is Libor plus 450 bps with a 0.5% Libor floor and it was sold at an original issue discount of 99. The debt has 101 soft call protection for six months. Ticking fees on the delayed-draw term loan are half the spread from days 31 to 60 and the full spread thereafter.

During syndication, pricing on the term loan debt was lifted from Libor plus 425 bps, the discount widened from 99.5 and the delayed-draw term loan was downsized from $75 million.

The company’s $535 million of credit facilities also include a $50 million five-year revolver.

Citizens Bank, Fifth Third and Truist are leading the deal that will be used to help fund the buyout of the company by Orangewood Partners.

Closing is subject to regulatory approval and certain commercial arrangements.

Pacific Bells is the fifth largest franchisee of Taco Bell restaurants in the United States.

Traverse starts trading

Traverse Midstream Partners’ $1.35 billion term loan B (B3/B) surfaced in the secondary market too, with levels quoted at 99 7/8 bid, par 3/8 offered, a market source remarked.

Pricing on the term loan is SOFR plus 10 bps CSA for one-month SOFR, 15 bps for three months and 25 bps for six months, plus 425 bps spread with a 1% SOFR+CSA floor. The debt was sold at an original issue discount of 99.5 and has 101 soft call protection for six months.

During syndication, the CSA was changed from just SOFR plus 10 bps CSA.

JPMorgan Chase Bank is leading the deal that will be used to reprice an existing term loan, and the $39 million of incremental debt being raised will be used with cash on hand to repay Energy Transfer LP for a deferred capital call.

Traverse was formed in June 2014 by the Energy & Minerals Group to build a portfolio of non-operated midstream assets.

McGraw-Hill breaks

McGraw-Hill Education’s fungible $575 million add-on term loan B (//BB+) freed to trade, with levels quoted at 99 3/8 bid, 99¾ offered, a market source said.

Pricing on the add-on term loan is Libor plus 475 bps with a 0.5% Libor floor, in line with existing term loan B pricing, and the new debt was sold at an original issue discount of 99. The add-on term loan has 101 soft call protection through July 30, 2022.

BofA Securities Inc., BMO Capital Markets, Macquarie Capital (USA) Inc., BNP Paribas Securities Corp., Deutsche Bank Securities Inc., PNC Bank and UBS Investment Bank are leading the deal that will be used to fund the acquisition of Achieve3000, a Red Bank, N.J.-based learning platform.

McGraw-Hill, a portfolio company of Platinum Equity, is a New York-based learning science company.

MKS tweaked

Back in the primary market, MKS Instruments changed price talk on its $4.28 billion seven-year covenant-lite term loan to a range of Libor plus 225 bps to 250 bps from just Libor plus 250 bps and adjusted the original issue discount to 99.5 from 99, according to a market source.

Furthermore, the discount talk on the $1 billion equivalent euro seven-year covenant-lite term loan was changed to a range of 99 to 99.5 from just 99, the source said.

As before, the U.S. term loan has a 0.5% Libor floor, the euro term loan is priced at Euribor plus 275 bps with a 0% floor, and both loans (Ba1/BB-/BBB-) have 101 soft call protection for six months.

Commitments are due end of day on Thursday, the source added.

The company is also planning on getting a $500 million five-year asset-based revolver.

MKS buying Atotech

MKS will use the term loans and cash on hand to fund the acquisition of Atotech Ltd. for $16.20 in cash and 0.0552 of a share of MKS common stock for each Atotech common share, and to refinance existing credit facilities. The equity value of the transaction is $5.1 billion, and the enterprise value is about $6.5 billion.

JPMorgan Chase Bank, Barclays, BofA Securities Inc., HSBC Securities, Citigroup Global Markets Inc. and Mizuho are leading the debt.

At close, pro forma gross leverage is expected to be around 4.4x and net leverage is expected to be around 3.7x, based on LTM second quarter 2021 adjusted EBITDA of $1.208 billion.

Closing is anticipated in the fourth quarter, subject to Atotech shareholder approval, approval of the Royal Court of Jersey, regulatory approvals, and other customary conditions.

MKS is an Andover, Mass.-based provider of technologies that enable advanced processes and improve productivity. Atotech is a Berlin-based specialty chemicals technology company.

Alliant revised

Alliant Holdings upsized its add-on term loan B-3 to $725 million from $475 million, reduced pricing to Libor plus 350 bps from Libor plus 375 bps, and added a repricing of its existing roughly $1.2 billion term loan B-3 to Libor plus 350 bps from Libor plus 375 bps, a market source remarked.

The add-on and repriced term loan are offered with an original issue discount of 99.875. Earlier this week, the issue price on the add-on term loan had been set at par, the tight end of the 99.75 to par talk, but it was changed with the addition of the repricing.

The company also added 101 soft call protection for six months to the add-on and repriced term loans.

The term loan debt has a 0.5% Libor floor, in line with the existing Libor floor.

Recommitments were due at 4 p.m. ET on Wednesday, the source added.

Alliant lead banks

JPMorgan Chase Bank, Morgan Stanley Senior Funding Inc., Stone Point, BofA Securities Inc., Capital One, Goldman Sachs Bank USA, KKR Capital Markets, RBC Capital Markets, Truist, Fifth Third and Macquarie Capital (USA) Inc. are leading Alliant’s term loan debt. Morgan Stanley is the administrative agent.

The add-on term loan, $225 million of senior secured notes, downsized from $475 million with the add-on term loan upsizing, and $450 million of senior unsecured notes will be used to fund acquisitions, an equity repurchase and general corporate purposes.

Alliant is a Newport Beach, Calif.-based specialty insurance brokerage firm.

UFC sets OID

UFC Holdings firmed the original issue discount on its fungible $600 million add-on term loan B due April 2026 at 99.05, within the 99 to 99.5 talk, according to a market source.

Pricing on the add-on term loan is Libor plus 275 bps with a step-up to Libor plus 300 bps at 3.5x first-lien net leverage and a 0.75% Libor floor, in line with existing term loan B pricing.

Goldman Sachs Bank USA, KKR Capital Markets, Barclays, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., Morgan Stanley Senior Funding Inc. and UBS Investment Bank are leading the deal that will be used to fund a distribution to UFC’s parent for general corporate purposes, which may include strategic mergers and acquisitions.

UFC is a Las Vegas-based mixed martial arts organization and pay-per-view event provider.

Idera updated

Idera set the original issue discount on its fungible $200 million incremental first-lien term loan due March 2028 at 99.75, the tight end of the 99.5 to 99.75 talk, a market source said.

Pricing on the incremental first-lien term loan is Libor plus 375 bps with a 0.75% Libor floor.

Allocations went out on Wednesday, the source added.

Jefferies LLC is leading the deal that will be used to fund an acquisition.

Pro forma for the transaction, the first-lien term loan will total $1,455,500,000.

Idera is a Houston-based provider of database, application development and testing software.

Gray Television talk

Gray Television, an Atlanta-based broadcast company, held its lender call on Wednesday afternoon and announced price talk on its $1.5 billion seven-year covenant-lite term loan D (BB/BB+) at Libor plus 300 bps with a 0% Libor floor and an original issue discount of 99.5, a market source remarked.

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

Commitments are due at noon ET on Oct. 27.

Wells Fargo Securities LLC, BofA Securities Inc., Deutsche Bank Securities Inc., Regions Bank and Truist are leading the deal that will be used with $1.125 billion of new unsecured debt and $265 million of cash on hand to fund the acquisition of Meredith Corp.’s Local Media Group, which owns television stations, for $16.99 per share in cash, or $2.825 billion in total enterprise value, and to pay related fees and expenses.

The company also plans to amend and restate its revolver to increase capacity to up to $500 million from $300 million, split between a $425 million five-year revolver and a $75 million revolver due Jan. 2, 2026.

Closing is anticipated in the fourth quarter, subject to customary conditions and regulatory approvals.

Pro forma net first-lien leverage is expected to be 2.6x and net total leverage is expected to be 5.4x.

Motus proposed terms

Motus came out with talk of Libor plus 375 bps to 400 bps with a 0.5% Libor floor, an original issue discount of 99 and 101 soft call protection for six months on its $390 million seven-year first-lien term loan (B2/B-/B+) that launched with a call in the afternoon, according to a market source.

Commitments are due at noon ET on Nov. 2, the source added.

The company’s $575 million of credit facilities also include a $50 million revolver and a $135 million privately placed second-lien term loan.

RBC Capital Markets, Barclays, Owl Rock and Thoma Bravo Credit are leading the deal, which will be used to help fund a significant strategic investment in Motus by Permira. As part of the transaction, existing investor Thoma Bravo plans to reinvest and remain a significant investor in the company.

Closing is expected in the fourth quarter, subject to customary regulatory approvals.

Motus is a Boston-based reimbursement software platform for the anywhere workforce.

Mission Veterinary guidance

Mission Veterinary Partners launched on its afternoon call its fungible $250 million incremental first-lien term loan (B3) with original issue discount talk of 99 to 99.5, a market source said.

Pricing on the incremental first-lien term loan is Libor plus 400 bps with a 0.75% Libor floor, in line with existing term loan pricing.

Commitments are due on Oct. 28, the source added.

The company is also getting a $225 million privately placed first-lien delayed-draw term loan (B3).

Golub Capital is leading the deal that will be used to fund acquisitions.

Mission Veterinary, formerly known as Midwest Veterinary, is a Novi, Mich.-based network of general practice animal hospitals.

IntraFi readies loan

IntraFi Network set a lender call for 10 a.m. ET on Thursday to launch a $540 million eight-year covenant-lite second-lien term loan, according to a market source.

Nomura is the left lead on the deal that will be used to fund a distribution to shareholders and pay related fees and expenses.

IntraFi is an Arlington, Va.-based financial technology solutions provider offering deposit placement and funding services to financial institutions.

Byju’s joins calendar

Byju’s scheduled a lender call for 11 a.m. ET on Friday to launch a $500 million senior secured term loan B, a market source remarked.

Morgan Stanley Senior Funding Inc. and JPMorgan Chase Bank are leading the deal that will be used to fund general corporate purposes offshore only, including to support business growth initiatives in North America and to fund potential strategic opportunities.

Byju’s is an India-based educational technology company.

TransMontaigne on deck

TransMontaigne emerged with plans to hold a lender call at 1 p.m. ET on Thursday to launch a $1 billion seven-year senior secured term loan B, according to a market source.

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

Barclays is the left lead on the deal that will be used to refinance existing debt, including outstanding borrowings under a revolver, a partial repayment of HoldCo debt at TLP Finance Holdings LLC and debt outstanding at additional assets, SeaPort Financing LLC TL, being contributed, fund a distribution to the sponsor as compensation for contributing the SeaPort assets, and pay associated fees and expenses.

TransMontaigne is a Denver-based pure play downstream terminal infrastructure platform.

Hamilton coming soon

Hamilton Projects Acquiror will hold a lender call at 11:30 a.m. ET on Thursday to launch an $888,750,000 senior secured term loan B, a market source said.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to reprice an existing term loan B.

Hamilton Projects is the owner of two combined cycle gas fired plants located in Pennsylvania.

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