Ontic breaks; Covis revised; Ufinet, Virtusa accelerate deadlines; Culligan, NAPA set talk

By Sara Rosenberg

New York, Feb. 7 – Ontic (Bleriot US Bidco Inc.) modified the issue price on its incremental first-lien term loan and then the debt made its way into the secondary market on Monday.

Meanwhile, in the primary market, Covis Pharma increased the size of its U.S. first-lien term loan and second-lien term loan, and added a euro term loan to its capital structure, and Ufinet (Zacapa) and Virtusa Corp. accelerated the commitment deadlines for their term loans.

Also, Culligan International and NAPA Management Services Corp. released price talk with launch, and TKC Midco 1 LLC, Latham Pool Products Inc., Les Schwab Tire Centers, Olaplex Holdings Inc. and Cast & Crew joined this week’s primary calendar.

Ontic tightens, trades

Ontic adjusted the issue price on its fungible $80 million incremental covenant-lite first-lien term loan due October 2026 to par from talk in the range of 99.5 to 99.75, a market source remarked.

Pricing on the incremental term loan is Libor plus 400 basis points with a 0% Libor floor, in line with existing term loan pricing.

Recommitments were due at noon ET on Monday and the incremental term loan began trading in the afternoon, with levels quoted at par ¼ bid, par ½ offered, a trader added.

Nomura Securities is the left lead on the deal that will be used to repay revolver borrowings, fund cash to the balance sheet, and pay fees and expenses.

Ontic is a provider of OEM-licensed parts and aftermarket services for mature aerospace and defense platforms.

Covis reworked

Switching to the primary market, Covis Pharma lifted its five-year senior secured first-lien term loan B to $595 million from a revised amount of $550 million and an initial size of $350 million, raised its seven-year second-lien term loan to $312 million from $300 million and added a $350 million equivalent euro five-year first-lien term loan to its transaction, according to a market source.

The euro term loan is talked at Euribor plus 650 bps with a 0% floor, an original issue discount of 93 and 101 soft call protection for one year, the source said.

As before, the U.S. first-lien term loan is talked at SOFR+CSA plus 650 bps with a 0.75% floor, an original issue discount of 93, CSA of 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate, and 101 soft call protection for one year, and the second-lien term loan is talked at SOFR+CSA plus 975 bps with a 1% floor.

Previously in syndication, pricing on the U.S. first-lien term loan widened from SOFR+CSA plus 625 bps, the discount was revised from talk in the range of 98 to 99 and the call protection was extended from six months, and the second-lien term loan was added to the deal.

Covis cancels notes

With the addition of the euro term loan, Covis terminated plans for a $350 million equivalent euro secured notes offering, the source continued. The company’s plan for a U.S. secured notes offering for total notes proceeds of $850 million equivalent was eliminated upon the first upsizing to the U.S. first-lien term loan B and the addition of the second-lien term loan.

Final commitments for the loans are due at 8 a.m. ET on Friday with allocations to follow, the source added.

Barclays is the left lead on the deal that will be used to help refinance existing debt, including the debt incurred to fund the acquisition of products from AstraZeneca, and to pay fees and expenses.

Covis is a Luxembourg-based pharmaceutical company with a focus on medicines in respiratory and hospital/critical care.

Ufinet tweaks timings

Ufinet moved up the commitment deadline for its $1.135 billion seven-year covenant-lite first-lien term loan (B2/B-) to 5 p.m. ET on Wednesday from 5 p.m. ET on Thursday, a market source remarked.

Talk on the term loan is SOFR plus 450 bps with a 0.5% floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC, Barclays, UBS Investment Bank, Natixis, Bank of Nova Scotia, Santander and Credit Agricole are leading the deal that will be used to fund a majority investment in the company by the Seventh Cinven Fund for an enterprise value of about €2.5 billion.

Ufinet is a Madrid-based provider of fiber infrastructure and transmission services to telecom operators.

Virtusa revises deadline

Virtusa accelerated the commitment deadline for its $590 million seven-year term loan (B) to noon ET on Tuesday from 5 p.m. ET on Tuesday, a market source said.

Talk on the term loan is SOFR+CSA plus 375 bps to 400 bps with a 0.75% floor, an original issue discount of 99 to 99.5 and 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.

BofA Securities Inc., Barclays, Goldman Sachs Bank USA, Deutsche Bank Securities Inc., HSBC Securities (USA) Inc. and Nomura are leading the deal that will be used with a $130 million add-on notes offering to fund a distribution to shareholders.

Virtusa is a Southborough, Mass.-based provider of digital strategy, digital engineering, and IT services and solutions that help clients change and disrupt markets through innovation engineering.

Culligan guidance

Culligan held its lender call on Monday morning and announced original issue discount talk of 99 to 99.5 on its $1.1 billion incremental covenant-lite term loan B due July 2028 and $250 million delayed-draw covenant-lite term loan, according to a market source.

Pricing on the term loan debt (B3) is based on leverage, with a spread of SOFR plus 400 bps at more than 4.75x leverage, SOFR plus 375 bps at 4.75x leverage and SOFR plus 350 bps at 4.25x leverage, the source said. The spread at closing would be SOFR plus 400 bps.

The term loan debt has a 0.5% floor, 101 soft call protection for six months and CSA of 0 bps.

Ticking fees on the delayed-draw term loan are half the margin from days 46 to 90 and the full margin thereafter.

Commitments are due at 5 p.m. ET on Feb. 16, the source added.

Culligan buying Waterlogic

Culligan will use the new senior secured term loan debt (B3/B) to fund the acquisition of Waterlogic Group Holdings, for general corporate purposes and to pay related fees and expenses.

Morgan Stanley Senior Funding Inc. is the left lead on the deal.

Closing on the acquisition is expected in the second half of this year, subject to regulatory approvals and other customary conditions.

Culligan is a Rosemont, Ill.-based provider of water treatment products and services. Waterlogic is a Maidenhead, U.K.-based designer, manufacturer, distributor and service provider of drinking water dispensers and accessories.

NAPA reveals talk

NAPA Management Services came out with price talk of SOFR+CSA plus 525 bps with a 0.75% floor and an original issue discount of 99 on its $610 million seven-year senior secured term loan B (B2/B) that launched with a call in the morning, a market source remarked.

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

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

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

Barclays, SVB Leerink and MUFG are leading the deal, which will be used to refinance existing debt and fund cash to the balance sheet.

American Securities is the sponsor.

NAPA is a Melville, N.Y.-based outsourced anesthesia and perioperative management services company.

TKC readies deal

TKC is set to hold a lender call at 10 a.m. ET on Tuesday to launch a $305 million five-year PIK toggle HoldCo term loan, according to a market source.

The loan is non-callable for one year, then at 108 in year two, 106 in year three and 104 in year four, the source said.

Jefferies LLC is leading the deal that will be used to fund a shareholder distribution.

TKC is a St. Louis-based provider of commissary, food service and related technology products to the corrections industry.

Latham joins calendar

Latham Pool Products will hold a lender call at 10 a.m. ET on Tuesday to launch a $350 million seven-year term loan B (B1/BB-), a market source said.

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

Barclays, BofA Securities Inc., Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc., MUFG and Nomura are leading the deal that will be used to refinance an existing term loan and for general corporate purposes.

Latham Pool is a Latham, N.Y.-based designer and manufacturer of residential in-ground swimming pools and related accessories.

Les Schwab on deck

Les Schwab Tire Centers scheduled a lender call for 10 a.m. ET on Tuesday to launch a fungible $301 million add-on term loan (B) due 2027 talked with an original issue discount of 99 to 99.5, according to a market source.

Pricing on the add-on term loan is Libor plus 325 bps if net total leverage is 4.5x and Libor plus 350 bps if net total leverage is above 4.5x, with a 0.75% Libor floor, in line with existing term loan pricing. Currently, the term loan is priced at Libor plus 325 bps.

Commitments are due at 5 p.m. ET on Feb. 15, the source added.

JPMorgan Chase Bank is leading the deal that will be used to fund a dividend.

Les Schwab is a Bend, Ore.-based tire retail chain.

Olaplex coming soon

Olaplex Holdings emerged with plans to hold a lender call at 12:30 p.m. ET on Tuesday to launch a $675 million term loan B, a market source remarked.

Goldman Sachs Bank USA is the left lead on the deal that will be used to refinance the company’s existing capital structure.

Advent International is the sponsor.

Olaplex is a hair care company.

Cast & Crew sets call

Cast & Crew will hold a lender call at 1 p.m. ET on Tuesday to launch a $225 million incremental first-lien term loan B, according to a market source.

Goldman Sachs Bank USA and RBC Capital Markets are leading the deal that will be used to fund the acquisition of Backstage Holdings, a New York-based provider of talent marketplace and content creation tools for the creative economy.

EQT is the sponsor.

Cast & Crew is a Burbank, Calif.-based provider of software and services to the entertainment production industry.

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