ConvergeOne, Axalta, Central Security, International Car break; SBA, Compass, Vyaire revised

By Sara Rosenberg

New York, April 5 – ConvergeOne Holdings Corp. upsized its term loan and Axalta Coating Systems Ltd. finalized the original issue discount on its term loan debt at the wide end of talk, and then both of these deals freed up for trading on Thursday.

Also, Central Security Group Inc. increased the size of its incremental first-lien term loan before hitting the secondary market in the afternoon, and International Car Wash Group’s term loan debt broke as well.

In more happenings, SBA Communications Corp. upsized its term loan B and set pricing at the high end of guidance, and American Greetings Corp. lifted the size of its term loan B, widened the spread and original issue discount, and extended the call protection.

Furthermore, Compass Group Diversified Holdings LLC firmed pricing on its term loan at the high side of talk, added a step-down and tightened the original issue discount, and Vyaire Medical Inc. raised pricing on its first-lien term loan, modified the issue price and sweetened the call premium.

Additionally, Heartland Dental LLC, Pelican Products Inc., LA Fitness (Fitness International LLC) and Clean Harbors Inc. released price talk with launch.

ConvergeOne tweaked, trades

ConvergeOne raised its seven-year covenant-light first-lien term loan to $670 million from $650 million, while leaving pricing at Libor plus 375 basis points with a 1% Libor floor and an original issue discount of 99.5, according to a market source.

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

Recommitments were due at 11 a.m. ET on Thursday and in the afternoon the term loan broke for trading with levels quoted at 99¾ bid, par ¾ offered, another source added.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to refinance existing debt, and, due to the upsizing, for general corporate purposes.

ConvergeOne is an Eagan, Minn.-based provider of communications solutions.

Axalta firms, tops OID

Axalta Coating Systems finalized the original issue discount on its $475 million add-on covenant-light term loan B due June 1, 2024 and repricing of its existing $1.96 billion covenant-light term loan B due June 1, 2024 at 99.75, the wide end of the 99.75 to par talk, a market source remarked.

Pricing on the term loan debt remained at Libor plus 175 bps with a 0% Libor floor, and the debt still has 101 soft call protection for six months.

After terms firmed up, the loan made its way into the secondary market and levels were quoted at par bid, par 3/8 offered, a trader added.

Barclays and Deutsche Bank Securities Inc. are leading the deal.

The add-on will be used to refinance an existing €396 million term loan B due 2023, and the repricing will take the existing term loan down from Libor plus 200 bps with a 0% Libor floor.

Axalta is a Philadelphia-based manufacturer, marketer and distributor of high-performance coatings systems.

Central Security upsizes, breaks

Central Security Group lifted its incremental first-lien term loan due Oct. 6, 2021 to $45 million from $25 million and moved up the commitment deadline to 11 a.m. ET on Thursday from 5 p.m. ET on Thursday, a market source said.

As before, pricing on the incremental loan is Libor plus 562.5 bps with a 1% Libor floor, in line with existing term loan pricing, and the incremental loan has an original issue discount of 99.5 and 101 soft call protection for six months.

By late afternoon, the incremental term loan freed to trade and levels were seen at 99½ bid, par offered, a trader added.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to pay down revolver borrowings, and, because of the upsizing, for general corporate purposes.

Central Security is a Tulsa, Okla.-based provider of alarm monitoring services.

International Car hits secondary

International Car Wash’s fungible $70 million add-on first-lien term loan B due Oct. 3, 2024 and repricing of its existing $474 million first-lien term loan B due Oct. 3, 2024 began trading too, with levels quoted at par bid, par ½ offered, according to a market source.

Pricing on the term loan debt is Libor plus 325 bps with a 1% Libor floor. The add-on loan was sold at an original issue discount of 99.75 and the repricing was issued at par. The debt has 101 soft call protection for six months.

Goldman Sachs Bank USA, Barclays, Jefferies LLC and Credit Suisse Securities (USA) LLC are leading the deal.

Proceeds from the add-on loan will be used to repay revolver borrowings and to pay related fees and expenses, and the repricing will take the existing term loan down from Libor plus 350 bps with a 1% Libor floor.

The company is also amending its credit agreement to refresh the $100 million incremental basket and reset the unlimited leverage governors to net first-lien leverage ratio and net secured leverage ratio from 0.25 times inside leveraged buyout closing leverage.

International Car Wash is a High Wycombe, England-based car wash operator.

SBA updates surface

Back in the primary market, SBA Communications increased its seven-year term loan B to $2.4 billion from $2.2 billion and firmed the spread at Libor plus 200 bps, the wide end of the Libor plus 175 bps to 200 bps talk, a market source remarked.

The term loan still has no Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months.

The company’s now $3.65 billion of credit facilities also include a $1.25 billion five-year revolver.

TD Securities (USA) LLC, Mizuho, Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC are leading the deal that will be used to refinance existing credit facilities, and funds from the upsizing will be used for general corporate purposes.

SBA is a Boca Raton, Fla.-based owner and operator of wireless communications infrastructure.

American Greetings reworked

American Greetings upsized its term loan B to $470 million from $445 million, flexed pricing to Libor plus 450 bps from Libor plus 375 bps, moved the original issue discount to 98 from 99.5, extended the 101 soft call protection to one year from six months and shortened the maturity to six years from seven years, according to a market source.

The term loan still has a 1% Libor floor and 50 bps MFN for life.

The company’s now $720 million of credit facilities also include a $250 million revolver.

Final commitments were due at 5 p.m. ET on Thursday, the source added.

Barclays, Deutsche Bank Securities Inc., Citizens Bank, ING Capital LLC, Bank of America Merrill Lynch, HSBC Bank USA, Sumitomo Mitsui Financial Group, KeyBanc Capital Markets and CIBC are leading the deal that will be used with $300 million of senior unsecured notes, downsized from $325 million with the term loan upsizing, to help fund the acquisition by Clayton, Dubilier & Rice of a 60% ownership stake in the company.

The Weiss Family will retain a 40% stake in the business.

American Greetings is a Cleveland-based designer, manufacturer and distributor of greeting cards, gift packaging, party goods and stationery products.

Compass Group revised

Compass Group Diversified Holdings finalized pricing on its $500 million seven-year term loan B (Ba3/BB) at Libor plus 250 bps, the high end of the Libor plus 225 bps to 250 bps talk, added a step-down to Libor plus 225 bps when total net leverage is less than or equal to 2.75 times, and changed the original issue discount to 99.75 from 99.5, a market source said.

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

Commitments were due at 4 p.m. ET on Thursday, the source added.

Bank of America Merrill Lynch, SunTrust Robinson Humphrey Inc., TD Securities (USA) LLC and U.S. Bank are leading the deal that will be used with $400 million of senior notes to refinance an existing $560 million term loan B and outstanding revolver borrowings.

Compass Group is a Westport, Conn.-based acquirer, owner and manager of a diverse group of subsidiaries operating within the industrial and branded consumer industries.

Vyaire changes emerge

Vyaire Medical increased pricing on its $360 million seven-year covenant-light first-lien term loan B (B2/B-) to Libor plus 475 bps from talk in the range of Libor plus 425 bps to 450 bps, adjusted the original issue discount talk to a range of 96 to 97 from 99.5 and extended the 101 soft call protection to one year from six months, a market source remarked.

As before, the term loan has a 1% Libor floor.

Commitments are due at noon ET on Friday and allocations are targeted for next week, the source added.

Bank of America Merrill Lynch, RBC Capital Markets, ING, Natixis and Mizuho are leading the deal that will be used with a new $90 million second-lien term loan (Caa2/CCC) to fund Apax’s acquisition of the existing minority shareholder’s stake in the company and to finance contemplated acquisitions.

Vyaire Medical is a Mettawa, Ill.-based pure play medical device company in the respiratory space.

Heartland discloses talk

Also in the primary market, Heartland Dental held its bank meeting on Thursday and announced price talk on its $1 billion seven-year covenant-light first-lien term loan and $150 million seven-year delayed-draw for two years covenant-light term loan, according to a market source.

The term loans are talked at Libor plus 350 bps to 375 bps with a 0% Libor floor and an original issue discount of 99.5, the source said.

Call protection on the term loan is a 101 soft call for six months and the delayed-draw term loan has a ticking fee of half the spread from days 31 to 60 and the full spread thereafter.

The company’s $1,285,000,000 of credit facilities also include a $135 million revolver.

Commitments are due on April 17, the source added.

Jefferies LLC, KKR Capital Markets, TD Securities (USA) LLC, BMO Capital Markets and Macquarie Capital (USA) Inc. are leading the deal that will be used to help fund the buyout of the company by KKR from Ontario Teachers’ Pension Plan and other existing shareholders.

Heartland Dental is an Effingham, Ill.-based dental support organization.

Pelican Products launches

Pelican Products came out with talk on its $530 million of senior secured credit facilities with its lender presentation on Thursday, a market source remarked.

The $30 million ABL five-year revolver is talked at Libor plus 150 bps, subject to a grid, with a 0% Libor floor, the $380 million seven-year covenant-light first-lien term loan (B2/B) is talked at Libor plus 375 bps with a 25 bps step-down at 3.2 times first-lien net leverage, a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, and the $120 million eight-year covenant-light second-lien term loan (Caa2/B-) is talked at Libor plus 775 bps with a 0% Libor floor, a discount of 99 and hard call protection of 102 in year one and 101 in year two, the source added.

Commitments are due at noon ET on April 18.

Morgan Stanley Senior Funding Inc. and Jefferies LLC are leading the deal that will be used to refinance existing debt.

Pelican Products is a Torrance, Calif.-based protective case and lighting equipment manufacturer.

LA Fitness holds call

LA Fitness held a lender call at 3 p.m. ET to launch a $700 million seven-year covenant-light term loan B (B1/BB-) talked at Libor plus 325 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, according to a market source.

There is cashless roll available to existing lenders.

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

Bank of America Merrill Lynch, MUFG, Bank of the West and Fifth Third Bank are leading the deal that will be used with new pro rata facilities to refinance existing credit facilities and to fully redeem outstanding 6% preferred equity, up to $337 million, held by Seidler Institutional and Madison Dearborn Partners.

LA Fitness is an Irvine, Calif.-based non-franchised fitness club operator.

Clean Harbors guidance

Clean Harbors released talk of Libor plus 175 bps with a 0% Libor floor, a par issue price and 101 soft call protection for six months on its $397 million senior secured first-lien term loan (Baa3/BBB-) due June 2024 that launched with a morning call, a market source said.

Commitments are due at noon ET on April 12, the source added.

Goldman Sachs Bank USA is leading the deal that will be used to reprice an existing term loan down from Libor plus 200 bps with a 0% Libor floor.

Clean Harbors is a Norwell, Mass.-based provider of environmental, energy and industrial services.

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