Dessert breaks; Xperi tweaks deal; Culligan, Hertz, Quikrete, Orbcomm, AccentCare set talk

By Sara Rosenberg

New York, June 7 – Dessert Holdings increased the size of its first-lien term loan, decreased the size of its second-lien term loan, added a delayed-draw second-lien term loan to the capital structure and updated pricing on the tranches before freeing up for trading on Monday.

In more happenings, Xperi Corp. raised the spread on its term loan B and finalized the original issue discount at the wide end of guidance.

Additionally, Culligan (Osmosis Debt Merger Sub Inc.), Hertz Corp. Quikrete Holdings Inc., Orbcomm Inc. and AccentCare Inc. announced price talk with launch.

Furthermore, Great Canadian Gaming Corp., Paya Inc., ExGen Renewables IV LLC, Samsonite International SA, Advanced Personnel Management and Signify Health LLC joined this week’s primary calendar.

Dessert restructured

Dessert Holdings raised its first-lien term loan to $400 million from $380 million, set the spread on the debt, as well as on its $75 million delayed-draw first-lien term loan, at Libor plus 400 basis points, the low end of the Libor plus 400 bps to 425 bps talk, and changed the original issue discount to 99.25 from 99, according to a market source.

The company also scaled back its second-lien term loan to $115 million from $135 million, added a $20 million delayed-draw second-lien term loan to the transaction, and firmed pricing on the second-lien debt at Libor plus 725 bps, the low end of the Libor plus 725 bps to 750 bps talk, the source said.

In addition, ticking fees on the delayed-draw term loans are half the margin from days 46 to 90 and the full margin thereafter, revised from half the margin from days 61 to 120 and the full margin thereafter, the asset sale sweep step-downs were eliminated, and Serta, Chewy, and J. Crew protection were added.

As before, the first-lien term loan debt has a 0.75% Libor floor and 101 soft call protection for six months, and the second-lien term loan debt has a 0.75% Libor floor, a discount of 99 and hard call protection of 102 in year one and 101 in year two.

The now $685 million of credit facilities include a $75 million revolver as well.

Dessert hits secondary

Recommitments for Dessert Holdings’ credit facilities were due at noon ET on Monday, and the debt freed to trade in the afternoon, with the first-lien term loan debt quoted at 99½ bid, par offered and the second-lien term loan debt quoted at 99½ bid, 101½ offered, another source added.

Antares Capital, Barclays, BMO Capital Markets, Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., KKR Capital Markets, MUFG, Nomura Securities, RBC Capital Markets, Sumitomo Mitsui Banking Corp. and Stifel Nicolaus and Co. are leading the deal that will be used to help fund the buyout of the company by Bain Capital Private Equity from Gryphon Investors.

Closing is expected this quarter, subject to customary conditions, including regulatory approvals.

Dessert Holdings is a St. Paul, Minn.-based dessert company.

Xperi flexes

Xperi lifted pricing on its $810 million seven-year term loan B (Ba3) to Libor plus 350 bps from talk in the range of Libor plus 300 bps to 325 bps, and firmed the original issue discount at 99.5, the wide end of the 99.5 to 99.75 talk, a market source said.

The term loan still has a 0% Libor floor and 101 soft call protection for six months.

BofA Securities Inc., RBC Capital Markets, Barclays and Wells Fargo Securities LLC are leading the deal that will be used to help refinance an existing term loan due 2025 that is priced at Libor plus 400 bps with a 0% Libor floor.

Xperi is a San Jose, Calif.-based licenser of technologies and intellectual property.

Culligan proposed terms

Culligan held its lender call on Monday morning and released talk on its $2 billion seven-year covenant-lite first-lien term loan B and $250 million delayed-draw covenant-lite term loan at Libor plus 425 bps to 450 bps with 25 bps step-downs at 0.5x and 1x inside closing first-lien net leverage, a 0.5% Libor floor and an original issue discount of 99 to 99.5, according to a market source.

The term loan B has 101 soft call protection for six months, and delayed-draw term loan ticking fees are half the margin from days 46 to 90 and the full margin thereafter, the source said.

The company’s $2.475 billion of senior secured credit facilities also include a $225 million five-year revolver.

Commitments are due at noon ET on June 18, the source added.

Morgan Stanley Senior Funding Inc. and Citigroup Global Markets Inc. are leading the deal that will be used to fund the acquisition of a majority interest in the company by BDT Capital Partners LLC from Advent International and Centerbridge Partners LP. Advent will reinvest to acquire a minority stake in the business.

Culligan is a Rosemont, Ill.-based provider of water treatment products and services.

Hertz sets talk

Hertz came out with price talk of Libor plus 375 bps to 400 bps with a 0.5% Libor floor and an original issue discount of 99 on its $1.3 billion seven-year senior secured first-lien term loan B and up to $245 million seven-year senior secured first-lien term loan C that launched with a call in the morning, a market source remarked.

The term loans have 101 soft call protection for six months.

Prior to the lender call, the term loan C size was described as up to $350 million.

Commitments are due at noon ET on June 15, the source added.

Barclays is the left lead on the deal, which will be used to help fund the company’s plan of reorganization.

Hertz is an Estero, Fla.-based car rental company.

Quikrete launches

Quikrete launched on its afternoon call its $1.5 billion seven-year incremental covenant-lite term loan B (Ba3/BB-) at talk of Libor plus 300 bps with a 0% Libor floor and an original issue discount of 99 to 99.5, according to a market source.

The incremental term loan has 101 soft call protection for six months, and a ticking fee of half the margin from days 31 to 60 and the full margin plus Libor thereafter.

Commitments are due at 5 p.m. ET on Thursday.

Wells Fargo Securities LLC is leading the deal that will be used to help fund the acquisition of Forterra Inc. for $24.00 per share in an all-cash transaction valued at $2.74 billion, including outstanding debt.

Closing on the acquisition is expected in the fourth quarter, subject to receipt of clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and other customary conditions.

Quikrete is an Atlanta-based buildings materials company. Forterra is an Irving, Tex.-based manufacturer of water and drainage infrastructure pipe and products.

Orbcomm guidance

Orbcomm held its lender call at noon ET and, shortly before the call began, price talk on its $360 million seven-year covenant-lite first-lien term loan emerged at Libor plus 450 bps to 475 bps with a 0.75% Libor floor and an original issue discount of 99, a market source said.

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

The company’s $410 million of credit facilities (B3/B) also include a $50 million revolver.

Commitments are due at 5 p.m. ET on June 17.

Credit Suisse Securities (USA) LLC, Jefferies LLC, Truist and Citizens Bank are leading the deal that will be used with $796.6 million of equity to fund the buyout of the company by GI Partners for $11.50 in cash per outstanding share of common stock. The transaction is valued at $1.1 billion, including net debt.

Closing is expected in the second half of the year, subject to customary conditions, including approval by stockholders and the receipt of required regulatory approvals.

Orbcomm is a Rochelle Park, N.J.-based provider of Internet of Things (IoT) solutions.

AccentCare holds call

AccentCare held a lender call at 3:30 p.m. ET to launch an $873.4 million term loan B due June 2026 talked at Libor plus 425 bps to 450 bps with a 25 bps ratings-based step-down, a 0% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Commitments are due at noon ET on June 14, the source added.

JPMorgan Chase Bank is leading the deal that will be used to combine two term loans into one tranche through a refinancing/repricing.

AccentCare, an Advent International portfolio company, is a Dallas-based provider of post-acute health care.

Great Canadian on deck

Great Canadian Gaming scheduled a lender call for 10 a.m. ET on Tuesday to launch a C$650 million equivalent U.S. dollar covenant-lite term loan B (B2/B+/BB+) due Nov. 1, 2026, according to a market source.

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

Commitments are due at noon ET on June 17, the source said added.

Deutsche Bank Securities Inc., Barclays and Macquarie Capital (USA) Inc. are leading the deal that will be used to help fund the buyout of the company by Apollo Global Management Inc. for C$45.00 in cash per share.

Great Canadian Gaming is an Ontario-based gaming, entertainment and hospitality company.

Paya joins calendar

Paya set a lender call for 10 a.m. ET on Tuesday to launch $295 million of credit facilities (B1/B+), a market source remarked.

The facilities consist of a $45 million revolver and a $250 million seven-year covenant-lite first-lien term loan, the source added.

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

Commitments are due at noon ET on June 18.

Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc., Jefferies LLC, Ares, Golub Capital and GSO are leading the deal that will be used to refinance an existing term loan.

Paya is an Atlanta-based integrated payments and commerce platform.

ExGen readies deal

ExGen Renewables will hold a lender call at 10:30 a.m. ET on Tuesday to launch a roughly $733,122,000 senior secured green term loan B (Ba3/BB-) due December 2027 talked at Libor plus 250 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

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

Jefferies LLC is leading the deal that will be used to reprice an existing term loan B down from Libor plus 275 bps with a 1% Libor floor.

ExGen Renewables is a Chicago-based owner of renewable generation projects in the United States indirectly owned by Exelon.

Samsonite coming soon

Samsonite set a lender call for 11 a.m. ET on Tuesday to launch a repricing of its existing term loan B-2 due April 25, 2025, a market source said.

The term loan B-2 is currently sized at $595.5 million but will be paid down by $100 million from balance sheet cash, the source added.

The repriced term loan B-2 will get 101 soft call protection for six months.

Commitments are due at noon ET on June 15.

HSBC Securities (USA) Inc. is the left lead arranger on the deal that will be used to reprice an existing term loan B-2 from Libor plus 450 bps with a 1% Libor floor. Bank of America is the agent.

Samsonite is a Hong Kong-based manufacturer of bags and luggage.

Advanced Personnel on deck

Advanced Personnel Management will hold a lender call at 4 p.m. ET on Tuesday to launch a $300 million term loan due June 2026 and an A$335 million term loan due June 2026, according to a market source.

The term loans have 101 soft call protection for six months, the source said.

BofA Securities Inc. and Goldman Sachs are leading the deal that will be used to refinance existing debt.

Advanced Personnel Management is an Australia-based human services and health care organization.

Signify readies loan

Signify Health scheduled a lender call for 1 p.m. ET on Tuesday to launch a $350 million seven-year first-lien term loan B, a market source remarked.

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

Barclays, JPMorgan Chase Bank, Goldman Sachs Bank USA, BofA Securities Inc. and UBS Investment Bank are leading the deal that will be used to repay existing term loans and to pay related fees and expenses.

Signify Health is a Dallas-based healthcare platform that powers and creates value-based payment programs.

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