BrightSpring, PF Chang's set pricing; FleetPride releases final terms; outflows continue

By Paul A. Harris

Portland, Ore., Jan. 28 – Developments surfaced on two of 2019's early megadeals, during a relatively quiet Monday session.

BrightSpring Health Services talked its $1.65 billion seven-year term loan B with a 450 basis points to 475 bps spread to Libor, a 0% Libor floor, at 98.5.

Meanwhile Commscope Inc. kicked off its $3,869,000,000 seven-year term loan B at a Monday bank meeting. Talk of Libor plus 325 bps to 350 bps, a 0% Libor floor and an original issue discount of 98 surfaced late last week. CommScope also kicked off a $3 billion junk bond deal on Monday. Bank debt and bonds are in the market to finance the acquisition of Arris International.

And Fleetpride (Fastlane Parent Co. Inc.) set final pricing on its $620 million seven-year first-lien term loan (B-).

The daily cash flows of the dedicated bank loan funds remained negative on Friday, the most recent session for which data was available at press time, according to a market source.

Year-to-date flows for the bank loan funds stood at negative-$2.8 billion, to Friday's close, the source said.

That follows a December that saw a record $15.3 billion of outflows from the loan funds, the source added.

Some of that money has lately been shifted to the high-yield bond market, a trader conceded during a Monday conversation.

But the CLOs are back in action, following a somewhat dormant December, the source said, adding that seven CLOs priced last week.

On Monday traders saw around $200 million of offers-wanted-in-competition (OWIC) lists, the source noted.

There is demand out there for new loan paper, the trader said.

However at present the deal pipeline is not vast.

BrightSpring Health Services talk

BrightSpring Health Services talked its $1.65 billion seven-year term loan B with a 450 bps to 475 bps spread to Libor and a 0% Libor floor, at 98.5, according to a market source.

Commitments are due Feb. 8.

The deal features 101 soft call protection for six months and an annual amortization rate of 1%.

Joint bookrunner Morgan Stanley Senior Funding, Inc. is the administrator. Credit Suisse Loan Funding LLC, Jefferies Finance LLC, KKR Capital Markets LLC and Credit Agricole CIB are also joint bookrunners.

The $1,837,500,000 credit facility (B1/B) also features a $187.5 million five-year revolver.

Proceeds will be used to finance the combination of PharMerica and BrightSping under KKR and Walgreens Boots Alliance ownership.

The borrowing entity will be Phoenix Guarantor Inc.

BrightSpring is a Louisville, Ky.-based health care services provider.

Fleetpride final terms

Fleetpride (Fastlane Parent Co. Inc.) set final pricing on its $620 million seven-year first-lien term loan (B-) with a 450 bps spread to Libor, atop spread talk, at 98.00, the rich end of the 97 to 98 price talk, according to a market source who added that the deal allocated.

The 0% Libor floor and the 101 soft call protection for six months were unchanged, the source said.

Barclays, RBC Capital Markets, Jefferies LLC, Citigroup Global Markets Inc. and Goldman Sachs Bank USA are the bookrunners on the deal.

The company’s $1.07 billion of credit facilities also include a $225 million five-year asset-based revolving credit facility and a $225 million privately placed eight-year second-lien term loan (CCC).

Proceeds will be used to help fund the buyout of the company by American Securities from TPG Capital.

Total leverage will be about 6.3 times on pro forma adjusted EBITDA of $136 million at Oct. 31.

Fleetpride is an Irving, Texas-based distributor of aftermarket heavy-duty truck and trailer parts.

PF Chang's talk

P.F. Chang’s China Bistro Inc. talked its $430 million seven-year first-lien term loan (B/B+) with a 675 bps to 700 bps spread to Libor and a 0% Libor floor, at 98, according to a market source.

Commitments are due Feb. 8.

Call protection is set at 102 in year one, then 101.

Credit Suisse Securities (USA) LLC is the left arranger. KKR Capital Markets is the joint arranger.

Proceeds will be used to help finance the acquisition of P.F. Chang’s by TriArtisan Capital Partners LLC and Paulson & Co. Inc. from Centerbridge Partners LP, in a deal expected to close in the first quarter of 2019.

Debt financing also includes a $55 million revolving credit facility.

The borrowing entity will be PFC Acquisition Corp.

P. F. Chang’s is a Scottsdale, Ariz.-based Asian-themed casual dining restaurant chain.

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