United Site breaks; Echo Global, Ineos, Marlink tweak deals; Monotype, Apex accelerated

By Sara Rosenberg

New York, Nov. 4 – United Site Services (PECF USS Intermediate Holding III Corp.) increased the size of its term loan B, lowered pricing and modified the issue price before making its way into the secondary market on Thursday.

In more happenings, Echo Global Logistics moved some funds between its first- and second-lien term loans, and tightened the spread and original issue discount on the first-lien tranche, and Ineos Group Holdings reworked its U.S. and euro term loan sizes, trimmed pricing on the U.S. tranche and revised issue prices on both pieces.

Also, Marlink Group firmed the spread on its U.S. and euro term loans at the high end of guidance, eliminated step-downs, widened the original issue discount and extended the call protection, and Monotype Imaging Holdings Inc. and Apex Group accelerated the commitment deadlines for their loan transactions.

Furthermore, Golden West Packaging Group LLC, NEP Group Inc. and Angus Chemical Co. released price talk with launch, and Driven Brands, Brooks Automation Inc. (Altar BidCo Inc.), Covanta Holding Corp., S&S Holdings LLC and TRC Cos. Inc. joined the near-term primary calendar.

United Site updated

United Site Services raised its seven-year term loan B (B2/B-) to $2 billion from a revised amount of $1.8 billion and an initial size of $1.25 billion, trimmed pricing to Libor plus 425 basis points from revised talk of Libor plus 450 bps and initial talk in the range of Libor plus 450 bps to 475 bps, and changed original issue discount talk to a range of 99.5 to 99.75 from revised talk in the range of 99 to 99.5 and initial talk of 99, before finalizing the discount at 99.75, a market source remarked.

The term loan still has a 0.5% Libor floor and 101 soft call protection for six months.

BofA Securities Inc., Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc., Barclays, Deutsche Bank Securities Inc. and Jefferies LLC are leading the deal.

United Site frees up

On Thursday, United Site’s term loan broke for trading, with levels quoted at par bid, par 3/8 offered, another source added.

The term loan will be used to help fund the acquisition of the company by a Platinum Equity Continuation Fund, to refinance existing debt, and to pay certain fees, commissions and expenses related to the transaction.

The company is also getting $550 million of senior unsecured notes, downsized from $750 million with the latest term loan upsizing. The original upsizing was done when the company terminated plans for a $550 million senior secured notes offering.

United Site Services is a Westborough, Mass.-based provider of portable restrooms, temporary fence and related site services.

Echo reworked

Echo Global Logistics raised its seven-year covenant-lite first-lien term loan to $575 million from $550 million and scaled back its privately placed second-lien term loan to $135 million from $160 million, according to a market source.

In addition, pricing on the first-lien term loan was cut to Libor plus 375 bps from talk in the range of Libor plus 400 bps to 425 bps, a 25 bps step-down was added after 0.5x of first-lien net leverage deleveraging, and the original issue discount was changed to 99.75 from 99.5, the source said.

As before, the first-lien term loan has a 0.5% Libor floor and 101 soft call protection for six months.

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

The company’s $810 million of credit facilities also include a $100 million revolver.

Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., BMO Capital Markets, BNP Paribas Securities Corp., Citizens Bank, UBS Investment Bank and MUFG are leading the deal that will help fund the buyout of the company by The Jordan Co. for $48.25 per share in cash, or about $1.3 billion.

Closing is expected this quarter, subject to stockholder and regulatory approval.

Echo is a Chicago-based provider of tech-enabled transportation and supply chain management services.

Ineos modified

Ineos upsized its U.S. seven-year term loan B to $845 million from $790 million, cut pricing to Libor plus 250 bps from Libor plus 275 bps and adjusted the original issue discount to 99.875 from 99.5, a market source remarked.

Also, the London-based chemicals company downsized its euro seven-year term loan B to €350 million from €400 million and tightened the discount to 99.75 from 99.5, the source continued.

As before, the euro term loan is priced at Euribor plus 275 bps, and both loans (Ba2/BB) have a 0.5% floor and 101 soft call protection for six months.

Recommitments for the U.S. term loan are due at 10 a.m. ET on Friday and recommitments for the euro term loan are due at 7 a.m. ET on Friday, the source added.

JPMorgan, Barclays, Citigroup Global Markets Inc. and HSBC are the joint global coordinators and bookrunners on the deal, with JPMorgan left lead on the U.S. loan, and Barclays and JPMorgan joint physical leads on the euro loan. BofA Securities Inc., BNP Paribas Securities Corp., Credit Suisse, Deutsche Bank, Goldman Sachs, ING, Lloyds, NatWest and Santander are mandated lead arrangers. Barclays is the administrative agent.

Proceeds will be used to refinance senior notes due 2024.

Marlink revised

Marlink Group finalized pricing on its $525 million seven-year first-lien term loan B and €250 million seven-year first-lien term loan B at Libor/Euribor plus 475 bps, the high end of the Libor/Euribor plus 450 bps to 475 bps talk, changed the original issue discount on both loans (B2/B) to 97 from 99 and extended the 101 soft call protection to one year from six months, a market source said.

Furthermore, the 25 bps step-down at 0.5x inside closing date first-lien net leverage and 25 bps step-down upon an initial public offering were removed from the U.S. term loan, the Libor floor on the U.S. term loan was increased to 0.75% from 0.5%, and the two 25 bps step-downs at 0.5x and 1x inside closing date first-lien net leverage and one 25 bps step-down upon an IPO were removed from the euro term loan.

And, ticking fees on the loans were modified to half the margin from days 46 to 75 and the full margin thereafter, from half the margin from days 61 to 90 and the full margin thereafter, and changes were made to documentation.

The euro term loan still has a 0% floor.

Marlink lead banks

Goldman Sachs, BNP Paribas Securities Corp., BofA Securities Inc., Barclays, KKR Capital Markets, HSBC and Banque CIC are leading Marlink’s term loans.

Allocations are expected on Friday morning, the source added.

The new debt will be used to help fund the buyout of the company by Providence Equity Partners from Apax Partners SAS for an enterprise value of about $1.4 billion.

Marlink is a Paris and Oslo-based provider of business-critical SatCom services.

Monotype accelerated

Monotype Imaging moved up the commitment deadline for new lenders for its $488 million term loan B due October 2026 to noon ET on Tuesday from 10 a.m. ET on Nov. 12, according to a market source.

Commitments from existing lenders were scheduled to be due at 5 p.m. ET on Thursday.

Talk on the term loan is Libor plus 500 bps with a 0.75% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

Deutsche Bank Securities Inc. is leading the deal that will be used to reprice an existing term loan B.

Monotype is a Woburn, Mass.-based provider of software-enabled font content and IP licensing for enterprise and creative customers.

Apex moves deadline

Apex Group accelerated the commitment deadline for its $465 million add-on covenant-lite term loan B due July 2028 to noon ET on Tuesday from noon ET on Wednesday, a market source remarked.

Pricing on the U.S. term loan is Libor plus 375 basis points with a 0.5% Libor floor, and the add-on is talked with an original issue discount of 99 to 99.5.

The company is also in market with a €225 million add-on covenant-lite term loan B due July 2028 priced at Euribor plus 400 bps with a 0% floor, and talked with a discount of 99.25 to 99.5.

BofA Securities Inc. is the physical bookrunner on the deal. JPMorgan is the agent.

Proceeds will be used with a $180 million pre-placed second-lien term loan to fund the acquisition of Sanne Group, a provider of asset management services, for 920 pence in cash per share, or about £1.51 billion.

Apex is a provider of fund administration services, financial and corporate solutions.

Golden West guidance

Golden West Packaging held its lender call on Thursday afternoon and announced talk on its $290 million six-year covenant-lite first-lien term loan at Libor plus 500 bps with a 0.75% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, according to a market source.

Commitments are due on Nov. 18, the source added.

Citizens Bank is leading the deal that will be used to refinance existing debt and fund a tuck-in acquisition.

Lindsay Goldberg is the sponsor.

Golden West Packaging is a City of Industry, Calif.-based provider of corrugated and specialty packaging solutions serving the food and beverage, wine, consumer products, and produce end markets.

NEP proposed terms

NEP Group launched on its morning call its non-fungible $210 million incremental term loan B (B3/B/B) due Oct. 19, 2025 at talk of Libor plus 375 bps with a 0.5% Libor floor and an original issue discount of 99 to 99.5, a market source said.

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

Commitments are due at noon ET on Nov. 16, the source added.

Barclays, JPMorgan Chase Bank, HSBC Securities (USA) Inc., Macquarie Capital (USA) Inc., MUFG and Mizuho are leading the deal that will be used for general corporate purposes, including acquisitions and capital expenditures, and to pay down revolver borrowings.

NEP is a Pittsburgh-based provider of outsourced live and broadcast production solutions.

Angus comes to market

Angus Chemical approached lenders with a fungible $100 million add-on first-lien term loan (//BB-) due November 2027 talked with an original issue discount of 99.75, according to a market source.

Pricing on the add-on term loan is Libor plus 400 bps with a 0.75% Libor floor, and the debt has 101 soft call protection for six months.

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

JPMorgan Chase Bank is leading the deal that will be used with $200 million of PIK toggle notes to fund a dividend.

Angus is a Buffalo Grove, Ill.-based specialty and fine chemical company.

Driven Brands on deck

Driven Brands set a lender call for 10:30 a.m. ET on Friday to launch a $500 million seven-year term loan B (BB-) talked at Libor plus 325 bps with a 0.5% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months, a market source remarked.

Commitments are due at 5 p.m. ET on Nov. 17, the source added.

JPMorgan Chase Bank is leading the deal that will be used for general corporate purposes, including for future acquisitions.

Driven Brands is a Charlotte, N.C.-based automotive aftermarket company.

Brooks readies deal

Brooks Automation will hold a lender call at 1 p.m. ET on Monday to launch $1.03 billion of term loans, according to a market source.

The debt consists of an $825 million seven-year first-lien term loan with 101 soft call protection for six months, and a $205 million eight-year second-lien term loan with hard call protection of 102 in year one and 101 in year two, the source said.

Barclays, Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., UBS Investment Bank, MUFG, SMBC and Stifel are leading the deal. Barclays is the left lead and administrative agent on the first-lien term loan, and Goldman is the left lead and agent on the second-lien term loan.

The loans will be used with about $2 billion of equity to fund the buyout of the company by Thomas H. Lee Partners LP in a transaction valued at $3 billion.

Closing is expected in the first half of 2022, subject to customary conditions and regulatory approvals.

Brooks Automation is a Chelmsford, Mass.-based automation technology company with significant expertise in semiconductors.

Covanta sets call

Covanta Holding scheduled a lender call for 9 a.m. ET on Friday to launch $1.435 billion of term loans, split between a $1.335 billion seven-year sustainability linked term loan B and a $100 million seven-year sustainability linked term loan C, a market source said.

The term loans have a 12.5 bps coupon increase for each of the two KPIs not met by the observation date of Dec. 31, 2025, and 101 soft call protection for six months, the source added.

Barclays is the left lead on the deal that will be used to help fund the buyout of the company by EQT Infrastructure for $20.25 per share and refinance existing debt.

Closing is expected in the fourth quarter, subject to Covanta shareholder approval and customary government approvals.

Covanta is a Morristown, N.J.-based provider of sustainable waste and energy solutions.

S&S joins calendar

S&S Holdings set a lender call for 10 a.m. ET on Friday to launch a fungible $150 million incremental first-lien term loan (B) due March 11, 2028, according to a market source.

Pricing on the incremental term loan is Libor plus 500 bps with a 0.5% Libor floor, in line with existing term loan pricing.

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

Barclays, Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, BMO Capital Markets, BNP Paribas Securities Corp., Citizens, Natixis and Truist are leading the deal that will be used to fund a tuck-in acquisition.

S&S is a Bolingbrook, Ill.-based distributor of imprintable apparel and accessories.

TRC coming soon

TRC will hold a lender call at 1 p.m. ET on Monday to launch $845 million of term loans, a market source remarked.

The debt consists of a $635 million first-lien term loan and a $210 million second-lien term loan, the source added.

UBS Investment Bank is the left lead on the deal that will be used to help fund the buyout of the company by Warburg Pincus from New Mountain Capital.

Closing is expected in the fourth quarter.

TRC is a Windsor, Conn.-based engineering, environmental consulting and construction management firm.

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