Segra breaks atop OID; Anvil changes emerge; Big Ass Solutions moves commitment deadline

By Sara Rosenberg

New York, May 23 – Segra (MTN Infrastructure TopCo Inc.) finalized the original issue discount on its add-on term loan B at the tight end of guidance and then the debt freed up for trading on Thursday.

In more happenings, Anvil International/Smith-Cooper International shifted some funds between its first-and second-lien term loans, and widened spreads and original issue discounts on the debt, and Big Ass Solutions (Big Ass Fans LLC) accelerated the commitment deadline for its incremental first-lien term loan.

Also, AmeriLife Group LLC and Spencer Spirit IH LLC disclosed price talk on their loan transactions, and Packers Sanitation Services Inc. and Crosby Group joined the near-term primary calendar.

Segra firms, trades

Segra set the original issue discount on its $100 million add-on senior secured covenant-lite term loan B (B2/B) due Nov. 17, 2024 at 99.25, the tight end of the 99 to 99.25 talk, according to a market source.

Pricing on the add-on term loan is Libor plus 300 basis points with a 1% Libor floor.

After terms finalized, the add-on loan made its way into the secondary market and levels were quoted at 99 3/8 bid, 99 7/8 offered, a trader added.

Morgan Stanley Senior Funding Inc., Goldman Sachs Bank USA and SunTrust Robinson Humphrey Inc. are leading the deal that will be used for general corporate purposes including capital expenditure.

Closing is expected in late June.

Segra, formerly known as Lumos, is a fiber-based service provider.

Anvil restructured

Anvil/Smith-Cooper raised its seven-year first-lien term loan to $740 million from $690 million, lifted pricing to Libor plus 500 bps from Libor plus 425 bps, removed the two 25 bps step-downs based on net first-lien leverage and changed the original issue discount to 97.5 from 99, a market source remarked.

Regarding the eight-year second-lien term loan, it was trimmed to $100 million from $150 million, the spread was increased to Libor plus 900 bps from Libor plus 825 bps and the discount was adjusted to 95 from 98.5.

Additionally, changes were made to the incremental facility, MFN provision, restricted payments, EBITDA definition, excess cash flow, asset sales and reporting requirements, the source continued.

Unchanged was the 0% Libor floor on both term loans, the 101 soft call protection for six months on the first-lien loan, and the hard call protection of 102 in year one and 101 in year two on the second-lien loan.

Books closed at 3 p.m. ET on Thursday, the source added.

Anvil, Smith merging

Proceeds from the term loans will be used to help fund the merger of Anvil and Smith-Cooper. The combined company will be majority owned by Tailwind Capital.

J.P. Morgan Securities LLC is leading the debt.

Closing on the merger is expected this quarter, subject to customary conditions.

Anvil is an Exeter, N.H.-based designer, manufacturer and provider of products that connect and support piping systems. Smith-Cooper is a Commerce, Calif.-based designer and provider of pipes, valves and fittings.

Big Ass revises timing

Big Ass Solutions moved up the commitment deadline for its $100 million incremental first-lien term loan (B2/B) due May 21, 2024 to 5 p.m. ET on Tuesday from noon ET on May 30, a market source said.

Pricing on the incremental term loan is Libor plus 375 bps with a 1% Libor floor, in line with pricing on the company’s existing roughly $245 million first-lien term loan, and the new debt is talked with an original issue discount of 99.5.

Credit Suisse Securities (USA) LLC and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to refinance a seller note and fund a shareholder distribution.

Lenders are being offered a 10 bps consent fee for an amendment.

Big Ass Solutions is a Lexington, Ky.-based producer of high volume, low speed and connected fans.

AmeriLife guidance

Also in the primary market, AmeriLife Group held its bank meeting on Thursday morning and, shortly before it began, price talk was announced on its $285 million seven-year covenant-lite first-lien term loan (B2/B) and $70 million eight-year covenant-lite second-lien term loan (Caa2/CCC+), according to a market source.

The first-lien term loan, which includes a $35 million delayed-draw tranche, is talked at Libor plus 450 bps to 475 bps with a 0% Libor floor and an original issue discount of 99, and the second-lien term loan is talked at Libor plus 875 bps to 900 bps with a 0% Libor floor and a discount of 98.5, 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.

The company’s $395 million of credit facilities also provide for a $40 million revolver (B2/B).

Commitments are due at 5 p.m. ET on June 6.

Credit Suisse Securities (USA) LLC, SunTrust Robinson Humphrey Inc. and Deutsche Bank Securities Inc. are leading the deal that will refinance existing debt, fund tuck-in acquisitions and finance a shareholder distribution.

AmeriLife is a Clearwater, Fla.-based provider of annuity, life and health insurance solutions.

Spencer releases talk

Spencer Spirit came out with talk of Libor plus 575 bps to 600 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months on its $385 million covenant-lite term loan B (B2/B) due June 2026 that launched with a bank meeting during the session, a market source remarked.

Commitments are due on June 6, the source added.

Guggenheim and Wells Fargo Securities LLC are leading the deal that will be used to refinance existing debt.

Spencer is an Egg Harbor Township, N.J.-based specialty retailer focused on lifestyle accessories and specialized Halloween merchandise.

Packers on deck

Packers Sanitation Services set a lender call for 2 p.m. ET on Tuesday to launch a $120 million incremental first-lien term loan due Dec. 4, 2024, according to a market source.

Jefferies LLC, Nomura and Morgan Stanley Senior Funding Inc. are leading the deal that will be used to fund a distribution to shareholders.

Packers Sanitation is a Kieler, Wis.-based provider of mission critical cleaning, sanitation, and compliance services to the food processing industry.

Crosby sets meeting

Crosby Group emerged with plans to hold a bank meeting on Wednesday morning to launch its loan transaction, a market source said.

Previously it was known that the deal would come to market after Memorial Day, but a specific date had been unavailable.

UBS Investment Bank and KKR Capital Markets are leading the loan that will be used to refinance existing debt.

Crosby is a Tulsa, Okla.-based provider of lifting, rigging and material handling hardware.

Cetera allocates

In other news, Cetera Financial Group (Aretec Group Inc.) allocated on Thursday its $105 million incremental first-lien term loan (B2/B) due Oct. 1, 2025 that is priced at Libor plus 425 bps with a 0% Libor floor and an original issue discount talk of 98.57, according to a market source.

UBS Investment Bank is leading the deal.

Proceeds will be used to support an acquisition.

Cetera is an El Segundo, Calif.-based network of financial advisers.

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