U.S. Silica, NorthRiver, RelaDyne, Miter, Medline, Beacon, Zekelman, KinderCare break

By Sara Rosenberg

New York, March 21 – U.S. Silica Co. set the original issue discount on its first-lien term loan B at the tight end of talk, NorthRiver Midstream finalized the spread on its term loan B at the low end of guidance and widened the issue price, and RelaDyne Inc. tightened the original issue discount on its first-lien term loan B-2, and then these deals freed to trade on Thursday.

Other deals to make their way into the secondary market during the session included Miter Brands Acquisition Holdco Inc., Medline Borrower LP, Beacon Roofing Supply Inc., Zekelman Industries Inc., KinderCare Learning Cos. Inc. (Kuehg Corp.) and Hilton Grand Vacations Borrower LLC.

In more happenings, Mister Car Wash Holdings Inc. increased the size of its term loan B, lowered the margin and revised the issue price, and Chromalloy Corp. trimmed pricing on its term loan B.

Also, Installed Building Products Inc. revised the original issue discount on its term loan B, and Truist Insurance Holdings LLC downsized its first-lien term loan B, set pricing at the low end of guidance, removed one leverage-based step-down and tightened the issue price.

Furthermore, Paradigm Corp. (Outcomes Group Holdings Inc.), ECi Software Solutions, Voyage Digital (NZ) Ltd., Dye & Durham, American Auto Auction Group LLC, Coherent Corp. and ProAmpac released price talk with launch, and GIP II Blue Holding LP (HESM Holdco) joined this week’s primary calendar.

U.S. Silica updated, frees

U.S. Silica finalized the original issue discount on its $843 million first-lien term loan B due March 2030 (B1/B) at 99.75, the tight end of the 99.5 to 99.75 talk, according to a market source.

Pricing on the term loan remained at SOFR plus 400 basis points with no CSA and a 0.5% floor, and the debt still has 101 soft call protection for six months.

During the session, the term loan B broke for trading, with levels quoted at par 1/8 bid, par 5/8 offered, another source added.

BNP Paribas Securities Corp. and MUFG are the joint lead arrangers on the deal, with BNP the sole bookrunner and administrative agent.

The loan will be used to reprice an existing term loan B down from SOFR+10 bps CSA plus 475 bps with a 0.5% floor, and with the repricing, the term loan is being paid down by $25 million from $868 million.

U.S. Silica is a Katy, Tex.-based performance materials company and a provider of high value minerals and specialty products.

NorthRiver tweaked, trades

NorthRiver Midstream firmed pricing on its $845.75 million senior secured covenant-lite term loan B due August 2030 at SOFR plus 250 bps, the low end of the SOFR plus 250 bps to 275 bps talk, and changed the original issue discount to 99.75 from par, a market source remarked.

The term loan still has a 0% floor.

Recommitments were due at 1 p.m. ET on Thursday and the term loan freed up later in the day, with levels quoted at 99 7/8 bid, par 1/8 offered, a trader added.

BMO Capital Markets and RBC Capital Markets are leading the deal that will be used to reprice an existing term loan down from SOFR plus 300 bps with a 0% floor.

Brookfield Infrastructure is the sponsor.

NorthRiver Midstream is a Canadian gas gathering and processing business.

RelaDyne tightened, breaks

RelaDyne adjusted the original issue discount on its $649 million first-lien term loan B-2 due December 2028 to 99.875 from 99.75, according to a market source.

Pricing on the term loan B-2 remained at SOFR plus 450 bps with a 0.5% floor, and the debt still has 101 soft call protection for six months.

Commitments were due at 3 p.m. ET on Thursday, extended from noon ET on Thursday, and the term loan B-2 freed to trade late in the day, with levels quoted at par 1/8 bid, par 5/8 offered, another source added.

RBC Capital Markets is leading the deal that will be used to reprice an existing $599 million term loan B-2 down from SOFR plus 500 bps, and the $50 million in additional fungible debt being raised will repay outstanding ABL revolver borrowings.

RelaDyne is a Cincinnati-based provider of lubricant and fuel sales & distribution and equipment reliability services to the industrial, commercial and automotive industries.

Miter hits secondary

Miter Brands’ non-fungible $1,654,230,000 seven-year incremental term loan B-2 (B1/BB-/BB+) began trading, with levels quoted at par bid, par ½ offered, according to a trader.

Pricing on the term loan is SOFR plus 350 bps with a 0% floor and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months.

During syndication, the term loan size was changed from a revised amount of $1.854 billion and an initial size of $1.3 billion, pricing was cut from SOFR plus 375 bps and the discount was tightened from 99.

RBC Capital Markets is the left lead on the deal that will be used with $700 million of senior secured notes, upsized recently from $500 million, and equity from Koch Equity Development LLC, a current investor in Miter, to fund the acquisition of PGT Innovations Inc. for $42.00 per share in cash, or an enterprise value of about $3.1 billion, and, due to the overall upsizing of the debt financing, to repay an existing term loan.

Closing is expected by mid-year, subject to PGT shareholder and regulatory approvals.

Miter is a manufacturer of precision-built windows and doors. PGT is a North Venice, Fla.-based designer and manufacturer of patio door and window solutions.

Medline starts trading

Medline’s $6.143 billion first-lien term loan due Oct. 21, 2028 (B1/B+/BB-) freed up too, with levels quoted at par 1/8 bid, par 3/8 offered, a market source said.

Pricing on the term loan is SOFR plus 275 bps with no CSA, no leverage-based pricing grid and a 0.5% floor. The debt was issued at par and has 101 soft call protection for six months.

During syndication, pricing on the term loan firmed at the low end of the SOFR plus 275 bps to 300 bps talk and the issue price was set at the tight end of the 99.875 to par talk.

BofA Securities Inc., Goldman Sachs Bank USA and others are leading the deal that will be used to revise an existing term loan B due Oct. 21, 2028 priced at SOFR+CSA plus 300 bps with a leverage-based pricing grid and 0.5% floor. Current CSA is ARRC standard of 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

With this transaction, the existing term loan is being paid down by $1 billion to roughly $6.143 billion with proceeds from a $1 billion senior secured notes offering.

Medline is a Northfield, Ill.-based manufacturer and distributor of health care supplies.

Beacon frees up

Beacon Roofing Supply’s $1.275 billion covenant-lite term loan B due May 19, 2028 (Ba2/BB) broke as well, with levels quoted at par bid, par ¼ offered, according to a market source.

Pricing on the term loan is SOFR plus 200 bps with a 0% floor and it was issued at par. The debt has 101 soft call protection for six months.

During syndication, the fungible add-on portion of the term loan was upsized to $300 million from $200 million and the issue price on the add-on tranche was modified from 99.75.

Citigroup Global Markets Inc., BofA Securities Inc., Deutsche Bank Securities Inc., JPMorgan Chase Bank, Truist Securities and Wells Fargo Securities LLC are leading the deal.

The add-on term loan will be used for general corporate purposes and the remainder will be used to reprice an existing $975 million term loan down from SOFR plus 225 bps with a 0% floor.

Closing is expected during the week of March 25.

Beacon Roofing is a Herndon, Va.-based distributor of roofing materials and complementary building products.

Zekelman tops OID

Another deal to hit the secondary market was Zekelman Industries’ $900 million term loan B due Jan. 24, 2031 (Ba3/BBB-), with levels quoted at par bid, par ½ offered, a market source remarked.

Pricing on the term loan is SOFR plus 225 bps with a 25 bps step-down at Ba1/BB+ or better corporate ratings and a 0% floor. The loan was sold at an original issue discount of 99.75 and has 101 soft call protection for six months.

During syndication, the pricing step-down was added and the discount finalized at the tight end of the 99.5 to 99.75 talk.

Goldman Sachs Bank USA and BofA Securities Inc. are leading the deal that will be used to amend, extend and modestly upsize the company’s existing senior secured term loan B.

Zekelman Industries is a Chicago-based steel and pipe producer.

KinderCare breaks

KinderCare Learning’s fungible $265 million incremental first-lien term loan B due June 12, 2030 freed to trade, with levels quoted at par bid, par ½ offered, according to a market source.

The incremental term loan is priced at SOFR plus 500 bps with a 0.5% floor, in line with the existing term loan pricing, and was sold at an original issue discount of 99.75.

During syndication, the incremental term loan was upsized from $250 million and the discount was tightened from 99.

Barclays, Macquarie Capital (USA) Inc., Goldman Sachs Bank USA, Deutsche Bank Securities Inc., UBS Investment Bank, Jefferies LLC, KKR Capital Markets and Citizens are leading the deal that will be used for general corporate purposes, including a potential distribution to shareholders and/or potential mergers and acquisitions, and to pay transaction expenses.

KinderCare is a Lake Oswego, Ore.-based provider of private early childhood care and education.

Hilton starts trading

Hilton Grand Vacations’ $1.271 billion term loan B due Aug. 2, 2028 broke as well, with levels quoted at par bid, par ¼ offered, a market source said.

Pricing on the term loan is SOFR plus 250 bps with no CSA and a 0% floor, and it was issued at par. The term loan has 101 soft call protection for six months.

BofA Securities Inc. is the left lead on the deal that will be used to reprice an existing $1.271 billion term loan B down from SOFR+CSA plus 275 bps with a 0% floor. Current CSA is ARRC standard of 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

Hilton Grand Vacations is an Orlando, Fla.-based timeshare company.

Mister Car reworked

Back in the primary market, Mister Car Wash lifted its seven-year term loan B (B2/B) to $925 million from $901 million and cut pricing to SOFR plus 300 bps from SOFR plus 325 bps, according to a market source.

In addition, the original issue discount talk on the term loan was changed in the morning to a range of 99.75 to 99.875 from 99.5, and then the issue price was tightened to par in the afternoon, the source said.

The term loan still has a 0% floor and 101 soft call protection for six months.

Commitments were due at 3:30 p.m. ET on Thursday, the source added.

BofA Securities Inc. is the left lead on the deal that will be used to refinance the company’s outstanding term loans.

Mister Car Wash is a Tucson-based car wash operator.

Chromalloy flexed

Chromalloy lowered pricing on its $900 million seven-year term loan B (B2/B) to SOFR plus 375 bps from SOFR plus 400 bps, a market source said.

As before, the term loan has a 0% floor, an original issue discount of 99 and 101 soft call protection for six months.

Recommitments were due at 4 p.m. ET on Thursday and allocations are expected on Friday morning, the source added.

RBC Capital Markets, Goldman Sachs Bank USA, BofA Securities Inc., UBS Investment Bank, BMO Capital Markets, Mizuho, PSP, Citizens and MUFG are leading the deal that will be used to refinance the company’s existing term loan, which was provided by direct lenders as part of the acquisition of the business by Veritas Capital in November 2022.

Chromalloy is a Palm Beach Gardens, Fla.-based provider of proprietary engine solutions, primarily for the commercial aerospace, energy and military end markets.

Installed Building modified

Installed Building Products moved the original issue discount on its $500 million seven-year covenant-lite term loan B (Ba1/BB+) to 99.875 from talk in the range of 99.5 to 99.75, according to a market source.

Pricing on the term loan remained at SOFR plus 200 bps with a 0% floor, and the debt still has 101 soft call protection for six months.

Recommitments are due at 10 a.m. ET on Friday, the source added.

RBC Capital Markets is the left lead on the deal that will be used to refinance an existing $490 million term loan B and to pay fees and expenses.

Expected secured leverage is 1.2x, expected secured net leverage is 0.4x, expected total leverage is 1.8x and expected total net leverage is 1x.

Installed Building Products is a Columbus, Ohio-based installer of insulation and complementary building products.

Truist Insurance revised

Truist Insurance scaled back its seven-year covenant-lite first-lien term loan B (B2/B/B+) to $3.35 billion from $4 billion, firmed pricing at SOFR plus 325 bps, the low end of the SOFR plus 325 bps to 350 bps talk, removed a 25 bps step-down at 4.25x first-lien net leverage, and changed the original issue discount to 99.75 from 99.5, a market source remarked.

The term loan still has a 25 bps step-down at 4.75x first-lien net leverage and a 25 bps step-down upon an initial public offering, a 0% floor and 101 soft call protection for six months.

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

Along with the term loan B, the company is getting a $1.175 billion five-year revolving credit facility (B2/B/B+) and a $1.9 billion eight-year second-lien term loan (Caa2/CCC+/CCC+).

Pricing on the second-lien term loan, which allocated earlier this month, is SOFR plus 475 bps with a 0% floor and a par issue price, and the debt has hard call protection of 102 in year one and 101 in year two.

Truist lead banks

JPMorgan Chase Bank, Morgan Stanley Senior Funding Inc., BofA Securities Inc., Wells Fargo Securities LLC, Truist Securities Inc., Stone Point Capital Markets, Barclays, RBC Capital Markets, Citigroup Global Markets Inc., Goldman Sachs Bank USA, BNP Paribas Securities Corp., Mizuho and TD Securities (USA) LLC are leading Truist Insurance’s term loan B. JPMorgan is the administrative agent.

Stone Point and Morgan Stanley Senior Funding Inc. are leading the arranger group on the second-lien loan. Morgan Stanley is the administrative agent.

The credit facilities will be used with $2.75 billion of senior secured notes, upsized from $2.1 billion, and equity to fund the buyout of Truist Insurance by Stone Point Capital and Clayton, Dubilier & Rice from Truist Financial Corp. at an implied enterprise value of $15.5 billion. Mubadala Investment Co. and other co-investors are also participating in the investment.

Closing is expected next quarter, subject to regulatory approvals and other customary conditions.

Truist Insurance is a Charlotte, N.C.-based insurance brokerage.

Paradigm guidance

Paradigm held its lender call on Thursday morning and announced price talk on its $700 million seven-year first-lien term loan at SOFR plus 425 bps to 450 bps with a 0% floor and an original issue discount of 99, according to a market source.

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

The company’s $800 million of credit facilities (B3/B) also include a $100 million five-year revolver.

Commitments are due at 5 p.m. ET on April 1.

UBS Investment Bank is the left lead on the deal that will be used to refinance existing first- and second-lien credit facilities.

Omers Private Equity is the sponsor.

Paradigm is a Walnut Creek, Calif.-based accountable, specialty care management organization.

ECi proposed terms

ECi Software Solutions launched on its morning lender call its roughly $981 million first-lien term loan B due May 9, 2030 (B2/B-) at talk of SOFR plus 375 bps with a 0.75% floor, an original issue discount of 99.5 to 99.75 and 101 soft call protection for six months, a market source said.

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

BofA Securities Inc. is the left lead on the deal that will be used to extend the maturity date of an existing term loan B.

ECi is a Westlake, Tex.-based provider of enterprise resource planning solutions.

Voyage holds call

Voyage Digital surfaced with plans to hold a lender call at 4 p.m. ET to launch a $477,301,000 senior secured covenant-lite first-lien term loan B due May 14, 2029 (Ba3/BB-) talked at SOFR plus 325 bps to 350 bps with 0 bps CSA, a 0.5% floor, a par issue price and 101 soft call protection for six months, according to a market source.

Commitments/consents are due at 5 p.m. ET on Wednesday, the source added.

Morgan Stanley Senior Funding Inc. is the bookrunner on the deal. Global Loan Agency Servicing is the administrative agent.

The term loan will be used to reprice an existing U.S. term loan B.

Voyage Digital is a telecommunications company.

Dye & Durham talk

Dye & Durham launched on its morning call its $367 million seven-year senior secured term loan B (B1/B) at talk of SOFR plus 450 bps with a 1% floor, an original issue discount of 98 and 101 soft call protection for six months, a market source remarked.

The term loan has, no CSA and amortization of 1% per annum, the source said.

Goldman Sachs Bank USA is the left lead arranger on the deal.

Commitments are due at noon ET on April 4, the source added.

Proceeds will be used with $500 million of other secured debt to refinance the company’s existing first-lien capital structure and repay convertible debentures due 2026.

In addition to the term loan, the company plans on getting a new senior secured revolving credit facility.

Dye & Durham is a provider of cloud-based software and technology solutions to law firms.

American Auto launches

American Auto Auction emerged in the morning with plans to hold a lender call at 3 p.m. ET to launch a fungible $100 million incremental first-lien term loan due Dec. 30, 2027 talked with an original issue discount of 99.28, according to a market source.

Pricing on the term loan is SOFR+CSA plus 500 bps with a 0.75% floor, in line with existing term loan pricing. CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

Commitments are due at noon ET on March 27, the source added.

Jefferies LLC and BMO Capital Markets are leading the deal that will be used to refinance existing debt and fund tuck-in acquisitions.

American Auto Auction is a used whole car auction market company.

Coherent repricing

Coherent launched without a lender call a $2.443 billion term loan due 2029 talked at SOFR plus 250 bps with no CSA, a 0.5% floor, an original issue discount of 99.75 to par and 101 soft call protection for six months, a market source said.

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

JPMorgan Chase Bank is leading the deal that will be used to reprice an existing term loan down from SOFR+CSA plus 275 bps. Current CSA is ARCC standard of 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

Coherent is a Saxonburg, Pa.-based provider of optical communications components and subsystems.

ProAmpac shops loan

ProAmpac held a lender call at 11:30 a.m. ET, launching a $2.497 billion term loan (B3/B-) talked at SOFR plus 400 bps to 425 bps with a 0% floor and 101 soft call protection for six months, according to a market source.

Of the total term loan amount, $263 million is an add-on term loan talked with an original issue discount of 99.75 and $2.234 billion is a repricing of the company’s existing term loan talked with a par issue price, the source said.

Commitments are due at 5 p.m. ET on Wednesday.

JPMorgan Chase Bank is leading the deal.

The add-on term loan will be used to support acquisitions and the repricing will take the existing term loan down from SOFR plus 450 bps with a 0.75% floor.

ProAmpac is a Cincinnati-based manufacturer of flexible packaging and material science solutions.

GIP II on deck

GIP II Blue Holding scheduled a lender call for 10 a.m. ET on Friday to launch a $539,492,403 term loan B, a market source remarked.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to reprice an existing term loan B from SOFR+CSA plus 450 bps with a 1% floor. Current CSA is ARRC standard of 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

GIP II, owned by Global Infrastructure Partners, is the owner of general partner and equity unit ownership interests in Hess Midstream LP and its operating subsidiary, Hess Midstream Operations LP.

Sharp Services deadline

In other news, Sharp Services LLC is asking for commitments by 5 p.m. ET on Tuesday for its $852 million first-lien term loan B due December 2028 (B3/B-), according to a market source.

Talk on the term loan, which launched with a call in the morning, is SOFR plus 375 bps to 400 bps with a 0% floor, a par issue price and 101 soft call protection for six months.

JPMorgan Chase Bank is leading the deal that will be used to reprice and combine the company’s existing $245 million first-lien term loan B due December 2028 and $607 million first-lien term loan B due December 2028.

Sharp Services is a provider of pharmaceutical packaging, clinical trial supply and small-scale sterile manufacturing services.

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