Jordan Health, BI-LO, Power Products revised; Valeant, Telenet, Open Text and more set talk

By Sara Rosenberg

New York, May 14 – In the primary market on Monday, Jordan Health Services (BW NHHC HoldCo Inc.) raised pricing on its first-and second-lien term loans, sweetened the issue price and call protection on the first-lien tranche, and cancelled plans for delayed-draw term loans.

Also, BI-LO LLC reduced the size of its term loan B while widening the spread and original issue discount, and Power Products LLC modified the issue price on its add-on term loan B.

Furthermore, Valeant Pharmaceuticals International Inc., Telenet, Open Text Corp., Warner Music Group (WMG Acquisition Corp.), Safe Fleet Holdings LLC, Pinnacle Foods Finance LLC and Kraton LLC released price talk with launch.

In addition, Dental Corp. of Canada Inc., Wyndham Worldwide Corp. (Wyndham Destinations Inc.), Aramark Services Inc., Corel Corp. and VICI Properties Inc. emerged with new deal plans.

Jordan Health restructures

Jordan Health Services increased pricing on its $660 million seven-year first-lien term loan to Libor plus 500 basis points from Libor plus 400 bps, removed the leverage-based pricing step-down, widened the original issue discount to 98.5 from 99.5 and extended the 101 soft call protection to one year from six months, a market source said. The tranche still has a 0% Libor floor.

Also, the company lifted pricing on its $195 million eight-year second-lien term loan to Libor plus 900 bps from Libor plus 800 bps, while leaving the 0% Libor floor, original issue discount of 99 and hard call protection of 102 in year one and 101 in year two intact, the source continued.

Furthermore, plans were terminated for a $75 million seven-year delayed-draw for 24 months first-lien term loan and a $25 million eight-year delayed-draw for 24 months second-lien term loan. The delayed-draw loans were talked with a ticking fee of 1% for months one to eight, 2% for months nine to 16 and 3% for months 17 to 24.

And, a number of other lender-friendly documentation changes were made to the transaction.

Jordan getting revolver

Along with the funded term loans, Jordan Health’s now $935 million of senior secured credit facilities also include an $80 million five-year revolver.

Recommitments are due at 2 p.m. ET on Tuesday, the source added.

Jefferies LLC, Deutsche Bank Securities Inc., RBC Capital Markets, CIT and Golub are leading the deal that will be used to fund the acquisition of Jordan Health by Kelso & Co. and Blue Wolf Capital Partners from Palladium Equity Partners LLC and subsequent merger with Great Lakes Caring Home Health and Hospice and National Home Health Care.

The combined company is expected to be the fifth largest home health care provider in the United States, with 221 locations across 15 states in the Northeast, Midwest and Southern regions.

BI-LO reworks deal

BI-LO trimmed its six-year term loan B to $475 million from $525 million, raised pricing to Libor plus 800 bps from Libor plus 750 bps and moved the original issue discount to 96 from 99, according to a market source.

Additionally, the accordion was changed to reduce the free and clear basket to $100 million from $150 million and the unlimited ratio to 2 first-lien net leverage from up to closing first-lien net leverage, the excess cash flow sweep was increased to 75% from 50% beginning in 2018, and the ability to designate unrestricted subsidiaries was eliminated, the source said.

The term loan still has a 1% Libor floor and 101 hard call protection for two years.

The company is also getting a $600 million ABL facility of which $550 million is a revolver priced at Libor plus 125 bps and $50 million is a FILO term loan priced at Libor plus 350 bps.

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

Deutsche Bank Securities Inc., SunTrust Robinson Humphrey Inc., RBC Capital Markets and Bank of America Merrill Lynch are leading the deal that will be used to fund the company’s exit from Chapter 11 and to refinance existing debt.

BI-LO is a Jacksonville, Fla.-based supermarket chain.

Power Products revised

Power Products changed the issue price on its fungible $90 million add-on covenant-light first-lien term loan B (B) to par from 99.75, a market source said.

As before, pricing on the add-on term loan is Libor plus 400 bps with a 1% Libor floor, in line with pricing on the existing $267 million term loan, and the debt has 101 soft call protection through July 6, 2018.

Commitments remained due at 5 p.m. ET on Monday, the source added.

RBC Capital Markets is leading the deal that will be used to fund an acquisition.

Power Products is a Menomonee Falls, Wis.-based manufacturer and supplier of electrical products for construction and maintenance, recreational marine and specialty vehicles, industrial power and transportation.

Valeant reveals talk

Also in the primary market, Valeant Pharmaceuticals held its lender call on Monday, launching its $3,815,000,000 senior secured term loan B at talk of 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.

The company’s $5,015,000,000 of credit facilities (BB-) also include a $1.2 billion revolver.

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

Barclays, Goldman Sachs Bank USA and J.P. Morgan Securities LLC are leading the deal that will be used with a potential combination of new senior secured notes and senior unsecured notes to refinance an existing term loan B series F, 5 3/8% senior notes due 2020, 6 3/8% senior notes due 2020, 6¾% senior notes due 2021 and 7¼% senior notes due 2022.

Valeant is a Laval, Quebec-based specialty pharmaceutical company.

Telenet holds call

Telenet surfaced in the morning with plans to host a lender call at 11 a.m. ET on Monday to launch a $1.6 billion term loan AN due August 2026 talked at Libor plus 225 bps with a 0% Libor floor, an original issue discount of 99.75 to par and 101 soft call protection for six months, according to a market source.

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

Goldman Sachs Bank USA, BNP Paribas Securities Corp., ING, J.P. Morgan Securities LLC, Natwest, Rabobank, RBC Capital Markets, Bank of Nova Scotia and Societe Generale are leading the deal that will be used to repay existing dollar AL and AL-2 term loans. Bank of Nova Scotia is the administrative agent.

Telenet is a Mechelen, Belgium-based cable operator.

Open Text guidance

Open Text held its call in the afternoon and announce talk of Libor plus 175 bps with a 0% Libor floor, an original issue discount of 99.75 to par and 101 soft call protection for six months on its $1 billion seven-year term loan B, a market source said.

Commitments are due at 5 p.m. ET on May 23, the source added.

Barclays is the left lead on the deal that will be used to refinance an existing term loan B and revolver borrowings.

Open Text is a Waterloo, Ont.-based software provider of business-to-business cloud integration services.

Warner Music launches

Warner Music Group announced early in the day that it would hold a lender call at 11 a.m. ET on Monday to launch a $1,326,000,000 covenant-light first-lien term loan due November 2023 talked at Libor plus 200 bps with a 0% Libor floor, a par issue price and 101 soft call protection for six months, a market source remarked.

Commitments are due at 11 a.m. ET on Thursday, the source added.

Credit Suisse Securities (USA) LLC, Barclays, Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc., Nomura and UBS Investment Bank are leading the deal that will be used to reprice an existing term loan down from Libor plus 225 bps with a 0% Libor floor.

Warner Music is a New York-based music company.

Safe Fleet floats OID

Safe Fleet came out with original issue discount talk of 99.5 on its fungible $80 million add-on senior secured first-lien term loan due Feb. 1, 2025 that launched with an afternoon call, according to a market source.

Like the existing loan, the add-on term loan is priced at Libor plus 300 bps with a step-down to Libor plus 275 bps at 6.25 times net total leverage and a 1% Libor floor.

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

Goldman Sachs Bank USA, UBS Investment Bank and Morgan Stanley Senior Funding Inc. are leading the deal that will be used for mergers & acquisitions.

Safe Fleet is a Belton, Mo.-based provider of safety and productivity solutions for fleet vehicles.

Pinnacle Foods launches

Pinnacle Foods launched without a lender call a fungible $250 million incremental term loan B due Feb. 3, 2024 talked at Libor plus 175 bps with a 0% Libor floor, an original issue discount of 99.875 to par and 101 soft call protection through Sept. 15, 2018, a market source remarked.

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

Bank of America Merrill Lynch and Mizuho are leading the deal that will be used with a $100 million revolver draw and cash from the balance sheet to refinance existing 4.875% senior notes due 2021.

Pinnacle Foods is a Parsippany, N.J.-based producer, marketer and distributor of branded food products.

Kraton seeks add-on

Kraton held a lender call during the session to launch a $90 million add-on term loan (Ba3/BB) talked at Libor plus 250 bps with a 1% Libor floor and a par issue price, according to a market source.

J.P. Morgan Securities LLC is leading the deal that will be used with €290 million of senior notes, and borrowings under the company’s existing asset-based revolver and/or cash on hand, to fund a tender offer for the company’s 10.5% senior notes due 2023.

Kraton is a Houston-based producer of engineered polymers and styrenic block copolymers.

Dental Corp. on deck

Dental Corp. of Canada will hold a bank meeting at 10 a.m. ET on Wednesday to launch $925 million of credit facilities, according to a market source.

The facilities consist of a $50 million revolver, a $500 million seven-year first-lien term loan, a $125 million seven-year delayed-draw first-lien term loan, a $200 million eight-year second-lien term loan and a $50 million eight-year delayed-draw second-lien term loan, the source said.

Included in the first-lien term loan is 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.

Jefferies LLC is the left lead on the deal that will be used to fund the acquisition of the company by L Catterton. Imperial Capital Group Ltd. and OPTrust Private Markets Group, together with management and Dental Corp.’s dentist shareholders, will continue to hold a significant equity interest in the company.

Dental Corp. is a network of general and specialist dental clinics in Canada.

Wyndham joins calendar

Wyndham Worldwide scheduled a bank meeting for 10 a.m. ET in New York on Tuesday to launch a $300 million seven-year covenant-light term loan (Ba2/BB-), a market source said.

Bank of America Merrill Lynch and J.P. Morgan Securities LLC are leading the deal that will be used to repay a portion of the company’s revolver borrowings.

Wyndham is a Parsippany, N.J.-based vacation ownership and exchange company.

Aramark plans repricing

Aramark Services will hold a lender call at 10:30 a.m. ET on Tuesday to launch a $1,411,000,000 covenant-light first-lien term loan due March 2024 talked at Libor plus 175 bps with a 0% Libor floor, a par issue price and 101 soft call protection for six months, a market source remarked.

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

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to reprice an existing term loan down from Libor plus 200 bps with a leverage-based step-down to Libor plus 175 bps and a 0% Libor floor.

Aramark is a Philadelphia-based professional services company that provides food, hospitality and facility management services as well as uniform and work apparel.

Corel coming soon

Corel set a bank meeting for 10 a.m. ET on Wednesday to launch $310 million of credit facilities, according to a market source.

The facilities consist of a $10 million revolver (Ba2) and a $300 million term loan (B2), the source said.

Commitments are due during the week of May 21.

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

Corel is an Ottawa-based software company.

VICI readies deal

VICI Properties emerged with plans to hold a lender call at noon ET on Wednesday to launch $2.5 billion of credit facilities, a market source remarked.

The facilities consist of a $400 million revolver and a $2.1 billion first-lien term loan, the source said.

Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc., Bank of America Merrill Lynch, Citigroup Global Markets Inc. and Barclays are leading the deal that will be used to reprice an existing revolver and term loan.

VICI Properties is a Las Vegas-based real estate investment trust that owns gaming, hospitality and entertainment destinations.

Senneca closes

In other news, the buyout of Senneca Holdings by Kohlberg & Co. has been completed, according to a news release.

To help fund the transaction, Senneca got $480 million of credit facilities consisting of a $40 million five-year revolver, a $240 million seven-year first-lien term loan, a $75 million delayed-draw first-lien term loan, a $100 million privately placed second-lien term loan and a $25 million privately placed delayed-draw second-lien term loan.

Pricing on the first-lien term loans is Libor plus 400 bps with a 1% Libor floor and the debt was issued at a discount of 99.5. The loan has 101 soft call protection for six months, and the delayed-draw term loan has a two-year drawdown period and an unused fee of 0% for the first 60 days, 1% for days 61 to 120 and 2% thereafter.

During syndication, pricing on the first-lien term loan was increased from talk in the range of Libor plus 350 bps to 375 bps due to the company’s decision to pursue a non-rated execution of the first-lien debt and a total net leverage maintenance covenant was added to the originally covenant-light term loans.

Antares Capital was the lead arranger on the deal. Golub Capital was a joint lead on the first-lien debt.

Senneca is a Cincinnati-based provider of commercial door systems and enclosures.

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