Congruex, Vizient, STG Logistics free to trade; Mallinckrodt, R1 RCM price talk surfaces

By Sara Rosenberg

New York, April 28 – Congruex Group terminated plans for a delayed-draw term loan, finalized the spread on its funded term loan at the high end of guidance and extended the call protection before breaking for trading on Thursday.

Other deals to make their way into the secondary market during the session included Vizient Inc. and STG Logistics.

In other news, Mallinckrodt plc and R1 RCM Inc. released price talk with launch, and TerraForm Power and Barracuda Networks Inc. joined the near-term primary calendar.

Congruex revised, frees

Congruex Group canceled plans for a $75 million delayed-draw term loan, set pricing on its $470 million seven-year term loan B at SOFR+CSA plus 575 basis points, the high end of the 550 bps to 575 bps talk, and extended the 101 soft call protection to one year from six months, according to a market source.

The term loan still has a 0.75% floor, an original issue discount of 97.5, and CSA of 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

The company’s now $545 million of credit facilities (B3/B) also include a $75 million revolver.

On Thursday, the term loan B made its way into the secondary market, with levels quoted at 97½ bid, another source added.

KeyBanc Capital Markets, Citizens and Fifth Third are leading the deal that will be used to fund two acquisitions and refinance existing debt.

Congruex is a specialist in broadband network construction and engineering. It is based in Boulder, Colo.

Vizient hits secondary

Vizient’s $600 million seven-year term loan B broke for trading, with levels quoted at 99¼ bid, par ¼ offered, a market source said.

Pricing on the term loan is SOFR+10 bps CSA plus 225 bps with a 0.5% 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 term loan was lowered from talk in the range of 250 bps to 275 bps, and the discount was tightened from 98.5.

Along with the term loan B, the company is getting a $300 million five-year term loan A.

Barclays, BofA Securities Inc., JPMorgan Chase Bank, BMO Capital Markets, Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc., Citigroup Global Markets Inc., Fifth Third, Truist and Wells Fargo Securities LLC are leading the $900 million of term loans (Ba2/BB+), with Barclays left on the term loan B and BofA left on the term loan A. Barclays is the administrative agent.

Proceeds will be used to refinance the company’s existing capital structure.

Vizient is an Irving, Tex.-based member driven health care performance improvement company.

STG starts trading

STG Logistics’ $750 million first-lien term loan freed to trade too, with levels quoted at 98¾ bid, 99¼ offered, a market source remarked.

Pricing on the term loan is SOFR+CSA plus 600 bps with a 0.75% floor and it was sold at an original issue discount of 98.5. The debt has CSA of 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate, and 101 soft call protection for one year.

During syndication, the term loan was upsized from $725 million, pricing firmed at the high end of the 575 bps to 600 bps talk, the discount was changed from 98 and a quarterly lender calls requirement was added.

The company’s $900 million of senior secured credit facilities also include a $60 million revolver and a $90 million designated letter-of-credit revolver.

Antares Capital, Deutsche Bank Direct Lending, Stifel Nicolaus and Co. Inc., Citizens Bank and MUFG are leading the deal that will be used to fund the acquisition of XPO Logistics’ intermodal segment, an intermodal and drayage service provider, to refinance existing debt, and to pay fees and expenses related to the transaction.

STG, backed by Wind Point Partners and Oaktree Capital Management, is a Bensenville, Ill.-based provider of facilities-based containerized logistics services.

Mallinckrodt guidance

Back in the primary market, Mallinckrodt held its lender call on Thursday afternoon and, a few hours before the call began, talk on its $900 million senior secured covenant-lite term loan B (B3/B) due Sept. 30, 2027 was announced at SOFR plus 600 bps with 0 bps CSA, a 0.75% floor, an original issue discount of 95 to 96 and 101 soft call protection for six months, according to a market source.

Commitments are due at noon ET on May 10, the source added.

Morgan Stanley Senior Funding Inc., MUFG, Barclays and Deutsche Bank Securities Inc. are leading the deal that will be used with cash on hand to repay existing revolver borrowings, to make certain other payments and distributions required in connection with the company’s bankruptcy emergence, and to pay fees and expenses.

Mallinckrodt is a Dublin-based developer, manufacturer, marketer and distributor of specialty pharmaceutical products and therapies.

R1 RCM sets talk

R1 RCM came out with talk price talk of SOFR+10 bps CSA plus 300 bps with a 0.5% floor and an original issue discount of 98.5 to 99 on its $540 million seven-year senior secured term loan B (Ba2/B+/BBB-) that launched with a call in the morning, a market source said.

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

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

Barclays, JPMorgan Chase Bank, BofA Securities Inc., Capital One, Wells Fargo Securities LLC, US Bank, KeyBanc Capital Markets, PNC, Morgan Stanley Senior Funding Inc., HSBC Securities (USA) Inc. and Fifth Third are leading the deal. BofA is the administrative agent.

The loan will be used to help fund the acquisition of Cloudmed, an Atlanta-based provider of revenue intelligence solutions for health care providers, from New Mountain Capital.

Closing is expected this quarter, subject to customary conditions.

R1 RCM is a Murray, Utah-based provider of technology-driven solutions that transform the patient experience and financial performance of health care providers.

TerraForm readies loan

TerraForm Power set a lender call for 11 a.m. ET on Friday to launch a $500 million seven-year first-lien green term loan, according to a market source.

RBC Capital Markets, Barclays and Wells Fargo Securities LLC are leading the deal that will be used to refinance existing debt.

Brookfield Asset Management is the sponsor.

TerraForm is a New York-based owner and operator of a renewable power portfolio including solar and wind assets.

Barracuda on deck

Barracuda Networks will hold a lender call at 1 p.m. ET on Monday to launch $1.57 billion of term loans, split between a $1.115 billion seven-year first-lien term loan and a $455 million eight-year second-lien term loan, a market source remarked.

The first-lien term loan has 101 soft call protection for six months, and the second-lien term loan has hard call protection of 102 in year one and 101 in year two, the source added.

UBS Investment Bank, KKR Capital Markets and Jefferies LLC are leading the deal, with UBS the left lead on the first-lien and KKR the left lead on the second-lien.

The loans will be used to help fund the buyout of the company by KKR from Thoma Bravo.

Closing is expected this year, subject to customary conditions.

Barracuda Networks is a provider of cybersecurity solutions.

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