Cano Health, TricorBraun break; SRS Distribution revises pricing; Idera changes deadline

By Sara Rosenberg

New York, Jan. 11 – Cano Health LLC’s first-lien term loan made its way into the secondary market on Tuesday, and TricorBraun Holdings Inc.’s incremental first-lien term loan freed to trade as well.

In more happenings, SRS Distribution Inc. lowered pricing on its incremental term loan, added a step-down and set the original issue discount at the tight end of guidance, and Idera Inc. moved up the commitment deadline for its incremental first-lien term loan.

Also, Crocs Inc., MI Windows and Doors Inc. (MIWD Holdco II LLC), North American Bancard (NAB Holdings LLC) and Arxada (Herens US Holdco Corp.) announced price talk with launch.

Additionally, Tropicana (Naked Juice LLC), RelaDyne Inc., Liberty Tire Recycling LLC, American Auto Auction Group LLC (XLerate Group), System One Holdings LLC and NortonLifeLock Inc. joined this week’s primary calendar.

Cano hits secondary

Cano Health’s $644 million covenant-lite first-lien term loan due November 2027 (B2/B) began trading on Tuesday, with levels quoted at par bid, par ½ offered, according to a market source.

Pricing on the term loan is SOFR+CSA plus 400 basis points with a 25 bps step-down at B2/B stable ratings and a 0.5% SOFR+CSA floor. The debt was issued at par and has 101 soft call protection for six months. CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to reprice an existing term loan from Libor plus 450 bps with a 25 bps step-down at B2/B stable ratings and a 0.75% Libor floor.

Cano Health is a Miami-based tech-powered, value-based care delivery platform.

TricorBraun frees up

TricorBraun’s fungible $180 million covenant-lite incremental first-lien term loan due March 3, 2028 (B2/B-) broke for trading too, with levels quoted at 99¼ bid, 99¾ offered on the break and at 99½ bid, par offered later in the day, market sources remarked.

Pricing on the incremental term loan is Libor plus 325 bps with a 0.5% Libor floor, in line with existing term loan pricing, and the new debt was sold at an original issue discount of 99.

During syndication, the discount on the incremental term loan was tightened from 98.65.

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to repay ABL borrowings.

TricorBraun is a St. Louis-based provider of packaging products.

SRS cuts spread

Moving to the primary market, SRS Distribution trimmed pricing on its non-fungible $700 million incremental term loan due 2028 (B2/B-) to SOFR plus 350 bps from SOFR plus 375 bps, added a 25 bps step-down at 3.6x net first-lien leverage and firmed the original issue discount at 99.5, the tight end of the 99 to 99.5 talk, a market source said.

As before, the term loan has 10 bps CSA, a 0.5% floor and 101 soft call protection for six months.

Commitments are due at 5 p.m. ET on Wednesday, moved up from noon ET on Thursday, the source added.

BofA Securities Inc. and Barclays are leading the deal that will be used to help fund acquisitions, including the recently completed purchase of AquaCentral, a distributor of pool equipment and supplies, from Tenex Capital Management.

SRS Distribution is a McKinney, Tex.-based building materials distributor.

Idera tweaks timing

Idera accelerated the commitment deadline for its fungible $64 million incremental first-lien term loan due March 2028 to noon ET on Wednesday from 5 p.m. ET on Wednesday, according to a market source.

Pricing on the incremental first-lien term loan is Libor plus 375 bps with a 0.75% Libor floor, in line with the existing term loan, and the new debt is talked with an original issue discount of 99.25 to 99.5.

Jefferies LLC is leading the deal that will be used to fund an acquisition.

Pro forma for the transaction, the first-lien term loan will total $1,515,800,000.

Idera is a Houston-based provider of database, application development and testing software.

Crocs proposed terms

Crocs held its call on Tuesday afternoon and announced talk on its $2 billion seven-year senior secured covenant-lite first-lien term loan B (Ba2/BB-) at SOFR+CSA plus 325 bps to 350 bps with a 0.5% floor, an original issue discount of 99.5 and 101 soft call protection for six months, a market source remarked.

CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

Commitments are due at 5 p.m. ET on Jan. 26, the source added.

Citigroup Global Markets Inc., PNC Bank, BofA Securities Inc. and Morgan Stanley Senior Funding Inc. are leading the deal that will be used with $50 million of borrowings under the company’s existing senior revolver to help fund the acquisition of Heydude, a casual footwear brand, for $2.5 billion, split between $2.05 billion in cash and $450 million in Crocs shares.

Closing is expected in mid-to-late February, subject to customary conditions and regulatory approval.

Net debt is anticipated to be about 3x.

Crocs is a Broomfield, Colo.-based casual footwear company.

MI Windows repricing

MI Windows and Doors launched without a lender call a $451 million term loan B (Ba3/BB/BB+) talked at SOFR+CSA plus 350 bps with a 0.5% floor, a par issue price and 101 soft call protection for six months, according to a market source.

CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

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

RBC Capital Markets is the left lead on the deal that will be used to reprice an existing term loan B from Libor plus 375 bps with a 0.75% Libor floor.

The existing term loan B is being paid down by $293 million to $451 million with proceeds from a $400 million senior unsecured notes offering.

Remaining proceeds from the notes will be used to fund a distribution to MIWD Holding Co. LLC to redeem $100 million in face value of its preferred units.

MI Windows is a Gratz, Pa.-based manufacturer of vinyl, aluminum and fiberglass windows and patio doors.

NAB guidance

North American Bancard held its call in the morning, launching its fungible $300 million incremental covenant-lite first-lien term loan due Nov. 23, 2028 (B1/B+) with original issue discount talk of 99.25 to 99.5, a market source said.

Like the existing term loan, the incremental term loan is priced at SOFR+CSA plus 300 bps with a 25 bps step-down at 2.85x net senior secured leverage and a 0.5% floor, and has 101 soft call protection through May 23, 2022.

CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

Commitments are due at 5 p.m. ET on Jan. 18.

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to fund the acquisition of CardWorks.

North American Bancard is a Troy, Mich.-based provider of payment processing solutions.

Arxada OID talk

Arxada came out with original issue discount talk of 99 to 99.5 on its fungible CHF 621 million equivalent U.S. and euro add-on term loan B (B) due July 2028 that launched with a call in the morning, according to a market source.

Pricing on the add-on U.S. term loan is Libor plus 400 bps with a 0.75% Libor floor, and pricing on the add-on euro term loan is Euribor plus 400 bps with a 0% floor, both in line with existing term loan pricing.

The term loan B is expected to be split about 50/50 between U.S. and euro tranches.

Commitments are due at noon ET on Jan. 19.

Arxada funding acquisitions

Arxada will use the new term loan debt to help finance the already completed purchases of Troy Corp. and Enviro Tech Chemical Services and pay acquisition related fees and expenses.

Deutsche Bank, UBS Investment Bank, RBC Capital Markets, Credit Suisse, CACIB, Intesa, MUFG, Societe Generale, Standard Chartered and UniCredit are leading the debt, with Deutsche the left lead on the U.S. loan, and Deutsche, UBS, RBC and Credit Suisse the physical bookrunners on the euro loan. Credit Suisse is the agent.

Arxada, formerly known as Lonza Specialty Ingredients, is a Basel, Switzerland-based specialty chemicals company. Troy is a manufacturer of microbial control solutions and performance additives. Enviro Tech is a manufacturer of proprietary and high-efficacy antimicrobial and biocidal products.

Tropicana on deck

Tropicana will hold a lender call at 1 p.m. ET on Wednesday to launch $2.42 billion of term loans, a market source remarked.

The debt is split between a $1.9 billion seven-year first-lien term loan, of which $150 million is a delayed-draw tranche, and a $520 million eight-year 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 call protection of 102 in year one and 101 in year two.

Commitments are due at 5 p.m. ET on Jan. 25, the source added.

Credit Suisse Securities (USA) LLC, BofA Securities Inc., Rabobank, Barclays, RBC Capital Markets, Citigroup Global Markets Inc., Jefferies LLC and SMBC are leading the deal, with Credit Suisse the left lead on the first-lien and BofA the left lead on the second-lien.

The loans will be used to help fund the formation of a joint venture through the acquisition of a 61% ownership stake by PAI Partners in juice brands, including Tropicana, Naked and Kevita, from PepsiCo Inc. The sale will result in combined pre-tax cash proceeds of about $3.3 billion and PepsiCo will retain a 39% non-controlling interest in the company.

RelaDyne readies deal

RelaDyne set a lender call for 10 a.m. ET on Thursday to launch a $540 million seven-year first-lien term loan, according to a market source.

The company’s $855 million of credit facilities also include a $150 million ABL revolver, and a $165 million eight-year second-lien term loan that has been privately placed.

RBC Capital Markets, BMO Capital Markets, KeyBanc Capital Markets, Macquarie Capital (USA) Inc. and Golub Capital are leading the deal that will be used to support the recently completed buyout of the company by American Industrial Partners from Audax Private Equity, and refinance an existing roughly $450 million first-lien term loan and a roughly $140 million second-lien term loan.

RelaDyne is a Cincinnati-based provider of lubricants and distributor of less-than-truckload fuel, diesel exhaust fluid, chemicals and other related products.

Liberty joins calendar

Liberty Tire Recycling scheduled a lender call for 10 a.m. ET on Wednesday to launch a $150 million add-on green senior secured term loan B (B), a market source said.

Morgan Stanley Senior Funding Inc. is the left lead on the deal that will be used to fund the acquisition of Rubberecycle, a Lakewood, N.J.-based manufacturer of rubber products.

Liberty Tire is a Pittsburgh-based provider of tire recycling services.

American Auto sets meeting

American Auto Auction Group emerged with plans to hold a bank meeting at 11 a.m. ET on Thursday to launch $810 million of credit facilities, according to a market source.

The facilities consist of a $60 million five-year revolver, a $570 million six-year first-lien term loan and a $180 million seven-year second-lien term loan, the source said.

The first-lien term loan has 101 soft call protection for six months, the second-lien term loan has hard call protection of 102 in year one and 101 in year two, and both loans have a 0.75% floor and CSA of 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

Jefferies LLC, BofA Securities Inc. and BMO Capital Markets are leading the deal that will be used with new cash equity to fund the acquisition of America’s Auto Auction by Brightstar Capital Partners-owned XLerate Group.

Carmel, Ind.-based XLerate and Dallas based America’s Auto Auction are vehicle auction companies.

System One coming soon

System One set a lender call for 11 a.m. ET on Thursday to launch a fungible $30 million add-on term loan, a market source remarked.

Truist Securities is leading the deal that will be used to fund an acquisition, to repay revolver borrowings and for general corporate purposes.

System One is a Pittsburgh-based provider of specialized workforce solutions and integrated services.

NortonLifeLock on deck

NortonLifeLock scheduled a lender call for 2 p.m. ET on Thursday to launch an up to $3.6 billion seven-year term loan B, according to a market source.

The term loan B has 101 soft call protection for six months, the source said.

BofA Securities Inc., Wells Fargo Securities LLC, Bank of Nova Scotia, Mizuho, Truist Securities, MUFG, BNP Paribas Securities Corp. and BMO Capital Markets are leading the deal that will be used to help fund the acquisition of Avast for a combination of cash consideration and newly issued shares in NortonLifeLock with alternative consideration elections available. The transaction values Avast’s ordinary share capital between about $8.1 billion and $8.6 billion, depending on Avast shareholders’ elections.

Last year, the company placed a $1.75 billion term loan A with banks for the transaction. The size of the term loan B may be reduced with additional term loan A borrowings, the source added.

NortonLifeLock is a Tempe, Ariz.-based provider of consumer cyber safety. Avast is a Prague-based provider of digital security and privacy.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.