C.H.I. Overhead frees to trade; Ardent Legacy, PLZ Aeroscience, Asurion revisions surface

By Sara Rosenberg

New York, July 28 – C.H.I. Overhead Doors Inc. moved some funds between its first- and second-lien term loans while tightening spreads and original issue discounts, and then the debt made its way into the secondary market on Tuesday.

In more happenings, Ardent Legacy Acquisitions Inc. trimmed pricing on its term loan, PLZ Aeroscience Corp. reduced the size of its U.S. revolver as a standalone Canadian revolver is now being obtained, and pricing and original issue discount on the U.S. revolver and term loan was modified, and Asurion LLC upsized its first-lien term loan.

Also, Knowledge Universe Education LLC, Alion Science & Technology Corp. (Dysart Merger Sub Inc.), PODS LLC, Emdeon Inc., Graton Economic Development Authority and ICON Health & Fitness disclosed talk with launch.

Additionally, Party City Holdings Inc., PetroChoice Holdings Inc. and Jet Support Services Inc. emerged with new deal plans.

C.H.I. reworks deal

C.H.I. Overhead Doors lifted its seven-year first-lien term loan to $320 million from $300 million, reduced pricing to Libor plus 375 basis points from talk of Libor plus 400 bps to 425 bps and moved the original issue discount to 99.75 from 99.5, according to a market source.

In addition, the eight-year second-lien term loan was reduced to $115 million from $135 million, the spread was trimmed to Libor plus 775 bps from talk of Libor plus 800 bps to 825 bps, and the discount was tightened to 99.5 from 98.5, the source said.

As before, both term loans have a 1% Libor floor, the first-lien loan has 101 soft call protection for six months, and the second-lien loan has call protection of 102 in year one and 101 in year two.

The company’s $475 million credit facility also includes a $40 million revolver.

C.H.I. breaks

Recommitments for C.H.I. Overhead’s credit facility were due at 2 p.m. ET on Tuesday, after which the deal broke for trading, with the first-lien term loan quoted at par 3/8 bid, par ¾ offered and the second-lien term loan quoted at par ¼ bid, 101¼ offered, the source added.

UBS AG and KKR Capital Markets are leading the deal that will be used to help fund the buyout of the company by KKR from Friedman Fleischer & Lowe LLC.

C.H.I. Overhead is an Arthur, Ill.-based manufacturer and marketer of overhead garage doors.

Ardent flexes lower

Back in the primary, Ardent Legacy Acquisitions cut pricing on its $250 million first-lien term loan (B1/B) to Libor plus 550 bps from Libor plus 575 bps and left the 1% Libor floor, original issue discount of 99 and 101 soft call protection for six months intact, a market source said.

Recommitments were due at 5 p.m. ET on Tuesday, and allocations are expected this week, the source added.

Bank of America Merrill Lynch and Barclays are leading the deal.

Proceeds will be used to fund an acquisition and for general corporate purposes.

Ardent is a Nashville-based private for-profit hospital system.

PLZ sets changes

PLZ Aeroscience reduced its five-year U.S. revolver to $22.5 million from $30 million, lowered pricing on the revolver and on a $315 million seven-year covenant-light term loan to Libor plus 425 bps from Libor plus 450 bps, tightened original issue discounts on the tranches to 99.5 from 99 and eliminated the MFN sunset, according to a market source.

With the revolver downsizing, the company opted to get a $7.5 million-equivalent standalone Canadian revolver that is permitted by, but separate from, the U.S. revolver and term loan, the source said.

The U.S. revolver still has no Libor floor, and the term loan still has a 1% Libor floor and 101 soft call protection for six months.

Recommitments are due by 5 p.m. ET on Wednesday, and allocations are expected on Thursday.

GE Capital Markets, NewStar and BMO Capital Markets are leading the deal that will be used to help fund the acquisition of the company by the Pritzker Group.

Closing is targeted for July 31.

PLZ is an Addison, Ill.-based manufacturer of specialty aerosol products.

Asurion lifts size

Asurion raised its seven-year first-lien term loan to up to $2,715,000,000 from $700 million as it is now contemplating refinancing term loan B-1 borrowings, a market source said.

Talk on the first-lien loan is Libor plus 400 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

The company is still also seeking a $450 million add-on second-lien term loan (Caa1) talked at Libor plus 750 bps with a 1% Libor floor and a discount of 99 to 99.5, and all of the company’s second-lien term loan debt will get call protection of 103 in year one and 101.5 in year two.

Commitments are due at noon ET on July 29.

Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc., Barclays, Deutsche Bank Securities Inc. and Goldman Sachs Bank USA are leading the deal.

Along with refinancing B-1 debt, the term loans will be used to repay an existing $250 million term loan and for general corporate purposes, including buying minority equity.

Asurion is a Nashville-based provider of technology protection services.

Knowledge Universe talk

Also in the primary, Knowledge Universe Education held its bank meeting on Tuesday morning, and shortly before the event kicked off, price talk on its first- and second-lien term loans was announced, according to a market source.

The $645 million seven-year first-lien covenant-light term loan is talked at Libor plus 475 bps to 500 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and the $200 million eight-year second-lien covenant-light term loan is talked at Libor plus 875 bps to 900 bps with a 1% Libor floor, a discount of 99 and call protection of 102 in year one and 101 in year two, the source said.

The company’s $925 million credit facility also includes an $80 million revolver.

Commitments are due on Aug. 11.

Credit Suisse Securities, Barclays and BMO Capital Markets are leading the deal that will help fund the buyout of the company by Partners Group, which is expected to close later this year.

Knowledge Universe is a for-profit provider of early-childhood education in the U.S.

Alion reveals terms

Alion Science and Technology launched with a bank meeting its $300 million six-year term loan with talk of Libor plus 500 bps to 550 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, according to a market source.

The company’s $340 million first-lien credit facility also includes a $40 million revolver.

Commitments are due on Aug. 11, the source said.

UBS AG is leading the deal that will be used to help fund the buyout of the company by Veritas Capital.

Alion is a McLean, Va.-based research and development, IT and operational services company.

PODS holds call

PODS released talk of Libor plus 350 bps with a 1% Libor floor and 101 soft call protection for six months on its $459 million senior secured term loan B due Feb. 2, 2022 that launched with a morning call, a source said.

The term loan B includes a $50 million add-on that will be used to repay revolver debt and add cash to the balance sheet, and the remainder will be used to reprice the existing $409 million term loan B from Libor plus 425 bps with a 1% Libor floor.

Original issue discount talk on the add-on loan is in the 99.5 area, and the repricing is offered at par. However, existing term loan B lenders will get paid down at 101 with the repricing as the debt currently has 101 soft call protection.

Commitments are due by noon ET on Monday, the source added.

Morgan Stanley Senior Funding and Barclays are the bookrunners on the deal.

PODS is a Clearwater, Fla.-based provider of storage and moving containers.

Emdeon details disclosed

Emdeon hosted its call in the morning, at which time lenders were presented with a fungible $395 million incremental term loan B (Ba3) due November 2018 that is talked at Libor plus 250 bps with a 1.25% Libor floor and an original issue discount of 99.5, a market source said.

The spread and floor on the incremental loan matches existing term loan B pricing.

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

Bank of America Merrill Lynch, Citigroup Global Markets Inc. Deutsche Bank Securities, Goldman Sachs Bank USA, Jefferies Finance LLC, Mizuho and SunTrust Robinson Humphrey Inc. are leading the term loan that will be used with $60 million in revolver borrowings, $250 million in new senior unsecured notes, $65 million of cash on the balance sheet and $160 million in new sponsor equity to fund the roughly $910 million purchase of Altegra Health Inc. from Parthenon Capital Partners.

Closing is expected in the third quarter, subject to regulatory approval and customary conditions.

Emdeon is a Nashville-based provider of health-care revenue and payment cycle management solutions. Altegra is a Miami Lakes, Fla.-based provider of payment solutions to health-care providers.

Graton launches term B

Graton Economic Development Authority launched on its call a $225 million seven-year term loan B (B2) with talk of Libor plus 400 bps to 425 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for one year, according to a market source.

Commitments are due at noon ET on Aug. 7, the source said.

Bank of America Merrill Lynch, Wells Fargo Securities LLC, U.S. Bank NA, Capital One and Fifth Third Bank are leading the loan that will be used to fund a tender offer for 9 5/8% senior secured notes due Sept. 1, 2019.

The tender offer will expire on Aug. 31.

Graton is a Rohnert Park, Calif., authority formed to develop, construct and operate all gaming and related businesses of the Graton Rancheria Tribe, including the Graton Resort & Casino in Sonoma County.

ICON guidance emerges

ICON Health released price talk on its $220 million in term loans with its morning lender call, a source remarked.

The $160 million six-year covenant-light first-lien term loan (B2/B-) is talked at Libor plus 575 bps with a 1% Libor floor, an original issue discount of 99 and soft call protection of 102 in year one and 101 in year two. The $60 million covenant-light seven-year second-lien term loan (B3/CCC) is talked at Libor plus 975 bps with a 1% Libor floor and a discount of 98. The debt is non-callable for one year and callable at 102 in year two and 101 in year three, the source continued.

Commitments are due on Aug. 7.

Bank of America Merrill Lynch and J.P. Morgan Securities LLC are leading the deal that will be used to refinance existing debt.

ICON is a Logan, Utah-based fitness equipment company.

Party City joins calendar

Party City scheduled a lender call for 11 a.m. ET on Wednesday to launch a $1.34 billion seven-year covenant-light term loan B (B1) that is talked with 101 soft call protection for six months, a market source remarked.

Deutsche Bank Securities, Bank of America Merrill Lynch, Barclays, Goldman Sachs Bank USA, Macquarie Capital (USA) Inc., Mizuho, Morgan Stanley Senior Funding, MUFG, Sumitomo and Wells Fargo Securities are leading the deal.

Along with the term loan, the company plans on getting a $540 million asset-based revolver.

Proceeds will be used to refinance existing debt including ABL borrowings, a $1,094,000,000 term loan and a portion of the company’s 8 7/8% notes.

Party City is a Rockaway, N.J.-based designer, manufacturer and distributor of party goods, including paper and plastic tableware, metallic balloons, accessories, novelties, gifts and stationery.

PetroChoice readies deal

PetroChoice set a bank meeting for 10 a.m. ET on Thursday to launch a $365 million credit facility, according to a market source.

The facility consists of a $40 million five-year revolver, a $235 million seven-year covenant-light first-lien term loan and a $90 million eight-year covenant-light second-lien term loan, the source said.

Barclays, Angel Island and Jefferies Finance are leading the deal that will be used to help fund the buyout of the company by Golden Gate Capital.

First-lien leverage is 4.5 times, and total leverage is 6.2 times, the source added.

PetroChoice is a Ft. Washington, Pa.-based distributor of consumable lubricants and value-added lubrication solutions.

Jet Support on deck

Jet Support Services will hold a bank meeting on Wednesday to launch a $175 million term loan, a market source remarked.

UBS AG is leading the deal that will be used to refinance existing debt and fund a dividend.

Jet Support Services is a Chicago-based provider of hourly cost maintenance programs for aircraft engines and airframes.

Universal Services closes

In other news, the buyout of Universal Services of America by Warburg Pincus has been completed, a news release said.

For the transaction, Universal Services got a $1.21 billion credit facility that consists of a $130 million revolver, an $835 million seven-year first-lien covenant-light term loan and a $245 million eight-year second-lien covenant-light term loan.

Pricing on the first-lien term loan, which includes a $55 million delayed-draw piece, is Libor plus 375 bps with a 1% Libor floor, and it was sold at an original issue discount of 99. The debt has 101 soft call protection for six months.

The second-lien term loan, which includes a $15 million delayed-draw piece, is priced at Libor plus 850 bps with a 1% Libor floor and was issued at a discount of 99. This tranche has call protection of 103 in year one, 102 in year two and 101 in year three.

The delayed-draw term loans have a ticking fee of 50% of the margin starting 45 days post-close and expiring after three months.

Universal Services leads

Credit Suisse Securities, Citigroup Global Markets, Deutsche Bank Securities and HSBC Securities (USA) Inc. led Universal Services’ credit facility.

During syndication, the first-lien term loan was upsized from $760 million, with the delayed-draw increased from $50 million, and pricing was set at the low end of the Libor plus 375 bps to 400 bps talk. Also, the second-lien term loan was downsized from $320 million, with the delayed-draw piece cut from $20 million, pricing was raised from talk of Libor plus 775 bps to 800 bps, and the call protection was modified from 102 in year one and 101 in year two.

Universal Services is a provider of manned guarding and related services.

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