Summit, Jordan, Berry break; Valeant, Quest, Omnia, Pinnacle, Hillman and more updated

By Sara Rosenberg

New York, May 16 – Summit Materials LLC set pricing on its term loan B at the high end of talk before hitting the secondary market, and deals from Jordan Health Services (BW NHHC HoldCo Inc.) and Berry Global Group Inc. freed up too.

Also, Valeant Pharmaceuticals International Inc. increased its term loan B size and decreased pricing, Quest/One Identity moved some funds between its first-and second-lien term loans and set spreads at the low side of talk, and Omnia Partners Inc. updated pricing on its first-and second-lien term loans, and added a step-down and revised the original issue discount on the first-lien tranche.

Furthermore, Pinnacle Foods Finance LLC firmed the issue price on its incremental term loan B at the tight end of guidance, Hillman Group Inc. revised the ticking fee on its delayed-draw term loan B as well as the allowable use of proceeds for the debt, and SonicWALL upsized its first-lien term loan and downsized its second-lien term loan.

In addition, ADS Tactical Inc. reduced the size of its term loan B, widened the spread and original issue discount, and sweetened the call protection, and Securus Technologies Holdings Inc. upsized its incremental first-lien term loan and tightened the issue price.

Lastly, Dental Corp. of Canada Inc., Visual Comfort Group Inc. (VC GB Holdings Inc.), VICI Properties Inc., Corel Corp., Zebra Technologies Corp. and Visteon Corp. released price talk with launch, and Ortho-Clinical Diagnostics, JBS USA Lux SA, Advanced Computer Software, Tekni-Plex Inc. and Truck Hero Inc. joined this week’s primary calendar.

Summit firms, frees up

Summit Materials set the spread on its $634 million term loan B at Libor plus 200 basis points, the high end of the Libor plus 175 bps to 200 bps talk, and left the 0% Libor floor, par issue price and 101 soft call protection for six months unchanged, according to a market source.

After terms finalized, the B loan began trading and levels were quoted at par ½ bid, par 7/8 offered, a trader added.

Bank of America Merrill Lynch, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs Bank USA, RBC Capital Markets and Barclays 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.

Summit Materials is a Denver-based construction materials company.

Jordan starts trading

Jordan Health Services’ credit facilities emerged in the secondary market, with the $660 million seven-year first-lien term loan quoted at 98¾ bid, 99½ offered and the $195 million eight-year second-lien term loan quoted at 99½ bid, par ½ offered, a market source said.

Pricing on the first-lien term loan is Libor plus 500 bps with a 0% Libor floor and it was sold at an original issue discount of 98.5. The debt has 101 soft call protection for one year.

The second-lien term loan is priced at Libor plus 900 bps with a 0% Libor floor and was issued at a discount of 99. This tranche has hard call protection of 102 in year one and 101 in year two.

On Monday, pricing on the first-lien term loan was lifted from Libor plus 400 bps, the leverage-based pricing step-down was removed, the discount widened from 99.5 and the call protection was extended from six months. Also, pricing on the second-lien term loan was increased from Libor plus 800 bps, and 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.

Jordan getting revolver

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

Jefferies LLC, Deutsche Bank Securities Inc., RBC Capital Markets, CIT and Golub are leading the deal that was used to fund the recently completed 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.

Berry Global breaks

Berry Global Group’s bank debt began trading, with the $800 million covenant-light term loan S (Ba2/BBB) due Feb. 8, 2020 and the $814,375,000 covenant-light term loan T (Ba2/BBB) due Jan. 6, 2021 both quoted at par 3/8 bid, par ¾ offered, according to a market source.

Pricing on the term loans is Libor plus 175 bps with a 0% Libor floor and they were issued at par. The loans have 101 soft call protection for six months.

Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Barclays, Deutsche Bank Securities Inc., Goldman Sachs Bank USA, J.P. Morgan Securities LLC, Bank of America Merrill Lynch and Wells Fargo Securities LLC are leading the deal. Credit Suisse is the administrative agent.

Proceeds will be used to reprice an existing term loan O due Feb. 8, 2020 and an existing term loan P due Jan. 6, 2021 down from Libor plus 200 bps with a 0% Libor floor.

Closing is expected on May 29.

Berry is an Evansville, Ind.-based provider of value-added plastic consumer packaging and engineered materials.

Valeant modifies deal

Back in the primary market, Valeant Pharmaceuticals raised its seven-year senior secured term loan B to $4,565,000,000 from $3,815,000,000 and cut pricing to Libor plus 300 bps from Libor plus 325 bps, according to a market source.

The term loan still has a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

The company’s now $5,765,000,000 of credit facilities also include a $1.2 billion revolver.

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

Barclays, Goldman Sachs Bank USA, J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Morgan Stanley Senior Funding Inc., DNB, Deutsche Bank Securities Inc. and RBC Capital Markets are leading the deal that will be used with a potential combination of new senior unsecured notes and cash on hand 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.

Quest/One Identity revised

Quest/One Identity increased its seven-year first-lien term loan to $1,465,000,000 from $1.42 billion and firmed pricing at Libor plus 425 bps, the low end of the Libor plus 425 bps to 450 bps talk, according to a market source. This tranche still has a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

Regarding the company’s eight-year second-lien term loan, it was reduced to $330 million from $375 million and the spread finalized at Libor plus 825 bps, the low end of the Libor plus 825 bps to 850 bps talk, the source said. The 0% Libor floor, discount of 99 and call protection of 102 in year one and 101 in year two were unchanged.

Recommitments were due at 1 p.m. ET on Wednesday, the source added.

Credit Suisse Securities (USA) LLC is the left lead on the $1,795,000,000 of term loans that will be used to finance the carve-out of the business from Seahawk Holdings.

Quest/One Identity is a provider of integrated infrastructure software and identity of governance.

Omnia sets changes

Omnia Partners finalized pricing on its $390 million seven-year first-lien term loan (B2/B) at Libor plus 375 bps, the low end of the Libor plus 375 bps to 400 bps talk, added a step-down to Libor plus 350 bps at 4.5 times first-lien leverage and moved the original issue discount to 99.75 from 99.5, a market source said.

Also, the company trimmed pricing on its $145 million eight-year second-lien term loan (Caa2/CCC+) to Libor plus 750 bps from talk in the range of Libor plus 775 bps to 800 bps, and the MFN sunset was removed from the credit agreement, source continued.

As before, the first-lien term loan has a 0% Libor floor and 101 soft call protection for six months, and the second-lien term loan has a 0% Libor floor, a discount of 99 and call protection of 102 in year one and 101 in year two.

The company’s $565 million of credit facilities also include a $30 million five-year revolver (B2/B).

Recommitments were due at 12:30 p.m. ET on Wednesday, the source added.

Omnia lead banks

Barclays, Ares, Jefferies LLC and Fifth Third are leading Omnia’s credit facilities that will be used to help fund the acquisition of Communities Program Management LLC and to refinance existing debt.

Closing is expected in the second quarter, subject to customary conditions.

TA Associates is the sponsor.

Omnia is a Franklin, Tenn.-based group purchasing organization. Communities Program Management is the organization that staffs and manages the operations of the U.S. Communities Government Purchasing Alliance, which provides procurement resources and solutions to local and state government agencies, school districts, higher education and nonprofits.

Pinnacle Foods updated

Pinnacle Foods set the issue price on its fungible $250 million incremental term loan B due Feb. 3, 2024 at par, the tight end of the 99.875 to par talk, a market source remarked.

As before, the incremental loan is priced at Libor plus 175 bps with a 0% Libor floor and has 101 soft call protection through Sept. 15.

Commitments were 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 revolving credit facility draw and cash from the balance sheet to refinance existing 4 7/8% senior notes due 2021.

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

Hillman tweaked

Hillman Group changed the ticking fee on its $165 million delayed-draw term loan (B2/B+) due 2025 to half the margin from days 31 to 61 and the full margin thereafter, from half the margin from days 46 to 75 and the full margin from days 76 to 365, a market source said.

Also, the delayed-draw loan is now available to fund permitted acquisitions, but not available to fund similar investments or capital expenditures, the source continued.

Furthermore, the 50 bps MFN was set for life and there is no minimum amount exception.

Pricing on the delayed-draw term loan and $530 million senior secured term loan B (B2/B+) due 2025 remained at Libor plus 350 bps with a 0% Libor floor and an original issue discount of 99.5.

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

The company’s $845 million of credit facilities include a $150 million asset-based revolver due 2023.

Hillman shuts books

Recommitments for Hillman Group’s credit facilities were due at noon ET on Wednesday, the source added.

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

Proceeds from the revolver and funded term loan B will be used to refinance an existing revolver and a term loan B.

CCMP Capital is the sponsor.

Hillman Group is a Cincinnati-based distributor of fasteners, keys, engravable tags, letters, numbers, signs and other hardware-related items.

SonicWALL retranches

SonicWALL lifted its first-lien term loan to $452 million from $432 million and scaled back its second-lien term loan to $175 million from $195 million, according to a market source.

The first-lien term loan is still priced at Libor plus 350 bps with a 0% Libor floor and an original issue discount of 99.5, and has 101 soft call protection for six months, and the second-lien term loan is still priced at Libor plus 750 bps with a 0% Libor floor and a discount of 99, and has call protection of 102 in year one and 101 in year two.

Recommitments were due at 5 p.m. ET on Wednesday, the source said.

UBS Investment Bank, Credit Suisse Securities (USA) LLC and SunTrust Robinson Humphrey Inc. are leading the $627 million in term loans that will be used to fund the carve-out of the business from Seahawk Holdings.

SonicWALL is a provider of IT security and data backup and recovery services.

ADS reworks loan

ADS Tactical downsized its seven-year covenant-light term loan B to $250 million from $330 million, raised pricing to Libor plus 525 bps from Libor plus 425 bps, changed the original issue discount to 99 from 99.5 and modified the call protection to a 101 hard call for one year from a 101 soft call for six months, a market source said.

The term loan B still has a 1% Libor floor.

Commitments are due at 3 p.m. ET on Monday, extended from 3 p.m. ET on Thursday, the source added.

Wells Fargo Securities LLC is leading the deal that will be used with $75 million of secured notes to refinance existing debt, including ABL revolver borrowings, a term loan due 2022 and senior secured notes due 2022.

ADS is a Virginia Beach, Va.-based provider of value-added logistics and supply chain solutions specializing in tactical & operational equipment and kitted solutions.

Securus upsizes, flexes

Securus Technologies increased its fungible incremental covenant-light first-lien term loan (B2/B) due November 2024 to $375 million from $350 million and modified the original issue discount to 99.75 from 99.5, according to a market source.

Like the existing loan, the incremental term loan is priced at Libor plus 450 bps with a 1% Libor floor, and has 101 soft call protection through Nov. 1, 2018.

The incremental loan has a ticking fee of half the spread from days 46 to 75 and the full spread thereafter.

Recommitments are due at 10:30 a.m. ET on Thursday. Allocations are expected thereafter.

Deutsche Bank Securities Inc., Bank of America Merrill Lynch and Goldman Sachs Bank USA are leading the deal that will be used to fund the acquisition of Inmate Calling Solutions and to repay revolver borrowings. Of the total term loan amount, $75 million will be available immediately for the revolver paydown and the remainder will fund upon the closing of the acquisition.

Closing is expected in the third quarter.

Securus is a Dallas-based provider of advanced inmate communications, investigative technologies and information management solutions to the corrections industry.

Dental holds meeting

Also in the primary market, Dental Corp. of Canada hosted its bank meeting on Wednesday and disclosed price talk on its $500 million seven-year first-lien term loan (B2/B-), $125 million seven-year delayed-draw first-lien term loan (B2/B-), $200 million eight-year second-lien term loan (Caa2/CCC) and $50 million eight-year delayed-draw second-lien term loan (Caa2/CCC) with its bank meeting on Wednesday, a market source remarked.

Talk on the first-lien term loan debt is Libor plus 375 bps with a 0% Libor floor and an original issue discount of 99.5, and talk on the second-lien term loan debt is Libor plus 750 bps with a 0% Libor floor and a discount of 99, the source continued.

The delayed-draw loans have a ticking fee of half the spread from days 61 to 120 and the full spread thereafter, and the delayed-draw availability is 24 months.

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.

The company’s $925 million of credit facilities also provide for a $50 million revolver (B2/B-).

Dental being acquired

Proceeds from Dental Corp.’s credit facilities will be used to help fund its acquisition 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.

Jefferies LLC is the left lead arranger on the deal.

Commitments are due on May 30, the source added.

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

Visual Comfort launches

Visual Comfort Group released price talk of Libor plus 325 bps with a 1% Libor floor and an original issue discount of 99.75 on its $595 million seven-year covenant-light first-lien term loan (B2/B) in connection with its morning lender call, according to a market source.

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

Commitments are due at noon ET on May 23.

Deutsche Bank Securities Inc. is leading the deal that will be used to refinance existing first- and second-lien term loans.

Visual Comfort is a Skokie, Ill., decorative lighting company.

VICI floats terms

VICI Properties launched on its call its $2.1 billion first-lien term loan due Dec. 22, 2024 at talk of Libor plus 175 bps with a 0% Libor floor, a par issue price and 101 soft call protection for six months, a market source said.

Commitments are due at noon ET on May 23, the source added.

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 term loan down from Libor plus 200 bps with a 0% Libor floor.

The company also plans on repricing its $400 million revolver.

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

Corel discloses talk

Corel held its bank meeting during the session and announced talk of Libor plus 500 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months on its $300 million term loan (B2/B-), a market source remarked.

The company’s $310 million of credit facilities also include a $10 million revolver (Ba2/B+).

Commitments are due on May 30, the source added.

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.

Zebra reveals guidance

Zebra Technologies came out with talk of Libor plus 175 bps with a 0.75% Libor floor, a par issue price and 101 soft call protection for six months on its senior secured covenant-light term loan B due Oct. 27, 2021 that launched with a morning call, according to a market source.

The term loan is currently sized at $1,125,000,000 but the company is expecting to pay down that amount by $250 million with revolver borrowings, the source said.

Commitments/consents are due at noon ET on May 23.

Morgan Stanley Senior Funding Inc. and J.P. Morgan Securities LLC are leading the deal that will be used to reprice an existing term loan B due 2021 down from Libor plus 200 bps with a 0.75% Libor floor.

Zebra is a Lincolnshire, Ill.-based provider of marking and printing technologies.

Visteon details emerge

Visteon held its call in the morning, launching a $350 million senior secured covenant-light term loan B due March 24, 2024 at talk of Libor plus 175 bps with a 0% Libor floor, a par issue price and 101 soft call protection for six months, a market source said.

Commitments from existing lenders are due at 5 p.m. ET on May 23 and commitments from new lenders are due at noon ET on May 24, the source added.

Citigroup Global Markets Inc., Bank of America Merrill Lynch and Sumitomo Mitsui Banking Corp. are leading the deal that will be used to reprice an existing term loan down from Libor plus 200 bps with a 0% Libor floor.

Closing is expected during the week of May 28.

Visteon is a Van Buren Township, Mich.-based designer and manufacturer of cockpit electronics products and connected car solutions for vehicle manufacturers.

Ortho-Clinical readies deal

Ortho-Clinical Diagnostics surfaced with plans to hold a lender call at 9:30 a.m. ET on Thursday to launch $2,675,000,000 of credit facilities (B1/B-), according to a market source.

The facilities consist of a $350 million five-year revolver and a $2,325,000,000 seven-year term loan B, the source said.

Barclays, Goldman Sachs Bank USA, J.P. Morgan Securities LLC, ING, UBS Investment Bank, Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Macquarie Capital (USA) Inc., RBS, Bank of Ireland and Nomura are leading the deal that will be used to refinance existing credit facilities.

The Carlyle Group is the sponsor.

Ortho-Clinical Diagnostics is a Raritan, N.J.-based provider of in-vitro diagnostics solutions for screening, diagnosing and monitoring diseases.

JBS joins calendar

JBS USA scheduled a lender call for noon ET on Thursday to launch $450 million of new term loans due Oct. 30, 2022, a market source remarked.

Barclays is the sole lead arranger on the deal and a bookrunner with BMO Capital Markets, RBC Capital Markets, SunTrust Robinson Humphrey Inc. and U.S. Bank.

The term loans will be used to repay revolver borrowings and for general corporate purposes.

JBS is a Greeley, Colo.-based animal protein products processing company.

Advanced Computer on deck

Advanced Computer Software will hold a lender call at 10:30 a.m. ET on Thursday to launch $733 million equivalent of senior secured credit facilities, a market source said.

The facilities consist of a $50 million revolver, a $341 million first-lien term loan and a £244 million first-lien term loan, the source added.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to refinance existing debt.

Advanced Computer is a U.K.-based provider of software and IT services.

Tekni-Plex coming soon

Tekni-Plex scheduled a lender call for 11:30 a.m. ET on Thursday to launch a $65 million incremental covenant-light first-lien term loan due October 2024, according to a market source.

Like the existing first-lien term loan, the incremental term loan is priced at Libor plus 325 bps with a 25 bps leverage-based step-down and a 1% Libor floor, and has 101 soft call protection through October.

Original issue discount talk on the incremental loan is not yet available, the source said.

Commitments are due at 5 p.m. ET on May 23.

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to fund a tuck-in acquisition.

Tekni-Plex is a King of Prussia, Pa.-based provider of specialty packaging solutions.

Truck Hero repricing

Truck Hero set a lender call for 9 a.m. ET on Thursday to launch a repricing of its loan, according to a market source.

Jefferies LLC is leading the deal.

Truck Hero is an Ann Arbor, Mich.-based provider of truck bed covers and other truck and Jeep accessories.

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