Calpine, MyEyDr., United Site free up for trading; Rent-A-Center finalizes loan terms

By Sara Rosenberg

New York, Aug. 2 – Calpine Corp.’s first-lien term loan B-10 made its way into the secondary market on Friday, with levels quoted above its original issue discount, and MyEyeDr. (MED ParentCo. LP) and United Site Services broke as well.

Switching to the primary market, Rent-A-Center Inc. set the spread on its first-lien term loan at the low end of guidance and modified the issue price, and Apex Tool Group LLC and Ascend Performance Materials surfaced with new deal plans.

Calpine hits secondary

Calpine’s $750 million seven-year covenant-lite first-lien term loan B-10 (Ba2/BB) began trading on Friday, with levels quoted at 99¾ bid, par 1/8 offered, according to a market source.

Pricing on the term loan B-10 is Libor plus 250 basis points with a 0% Libor floor and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months.

During syndication, the term loan B-10 was upsized from $550 million and the discount was tightened from 99.

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to refinance an existing term loan B-7 and funds from the recent upsizing will be used to repay project financing.

Calpine is a Houston-based generator of electricity from natural gas and geothermal resources.

MyEyeDr. starts trading

MyEyeDr.’s credit facilities broke too, with the strip of $845 million seven-year first-lien term loan (B2/B) and $211 million seven-year delayed-draw for 24 months first-lien term loan (B2/B) debt quoted at 99½ bid, par ¼ offered, and the $360 million eight-year second-lien term loan (Caa2/CCC+) quoted at par bid, 101 offered, a market source remarked.

Pricing on the first-lien term loan debt is Libor plus 425 bps with a 0% Libor floor and it was sold at an original issue discount of 99. The debt has 101 soft call protection for six months, and the delayed-draw piece has a ticking fee of half the spread from days 31 to 60 and the full spread thereafter.

The second-lien term loan is priced at Libor plus 825 bps with a 0% Libor floor and was issued at a discount of 98.5. This tranche has hard call protection of 102 in year one and 101 in year two.

During syndication, pricing on the first-lien term loan debt firmed at the high end of the Libor plus 400 bps to 425 bps talk, the spread on the second-lien term loan was set at the wide end of the Libor plus 800 bps to 825 bps talk, and a $90 million eight-year delayed-draw for 24 months second-lien term loan was eliminated from the capital structure. Also, the delayed-draw ticking fee was revised from half the margin from days 61 to 120 and the full margin thereafter.

MyEyeDr. getting revolver

In addition to the first-and second-lien term loans, MyEyeDr.’s $1,541,000,000 of senior secured credit facilities include a $125 million five-year revolver (B2/B).

Jefferies LLC, Credit Suisse Securities (USA) LLC, Nomura, Golub Capital, KKR Capital Markets and Macquarie Capital (USA) Inc. are leading the deal that will be used to help fund the buyout of the company by Goldman Sachs Merchant Banking Division from Altas Partners and Caisse de depot et placement du Quebec.

Closing is expected by the end of August.

MyEyeDr. is an optometry platform. The company is affiliated with Capital Vision Services LP, which provides management services to MyEyeDr. optometrists and its practices with financial, marketing, human resources and account services, along with managed care credentialing and claims processing.

United Site breaks

United Site Services fungible $150 million add-on covenant-lite first-lien term loan due August 2024 free to trade as well, with levels seen at 99¾ bid, par ¼ offered, a market source said.

Pricing on the add-on term loan is Libor plus 375 bps with a 1% Libor floor and it was sold at an original issue discount of 99. The debt has 101 soft call protection for six months.

BofA Securities Inc. leading the deal that will be used to fund acquisitions and to add liquidity.

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

Rent-A-Center updated

Moving to the primary market, Rent-A-Center Inc. finalized pricing on its $200 million seven-year first-lien term loan (Ba3/BB-) at Libor plus 450 bps, the low end of the Libor plus 450 bps to 475 bps talk, and changed the original issue discount to 99.5 from 99, according to a market source.

As before, the term loan has a 0% Libor floor and 101 soft call protection for six months.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance existing debt and for general corporate purposes.

Rent-A-Center is a Plano, Tex.-based rent-to-own operator.

Apex Tool readies deal

Apex Tool Group set a lender call for Monday to launch $1,049,000,000 of senior secured credit facilities, a market source said.

The facilities consist of a $175 million revolver and an $874 million term loan B, the source added.

Barclays is leading the deal that will be used to amend and extend existing senior secured credit facilities.

Bain Capital is the sponsor.

Apex Tool is a Sparks, Md.-based manufacturer and supplier of hand and power tools for industrial, commercial and demanding do-it-yourself applications.

Ascend joins calendar

Ascend Performance Materials scheduled a bank meeting for Monday to launch a $1.1 billion term loan B, according to a market source.

BofA Securities Inc. is leading the deal that will be used to refinance existing debt and fund a dividend.

Ascend Performance Materials is a Houston-based provider of chemicals, fibers and plastics.

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