Dell, Milk, Gray Television, KinderCare, WCA, WME, Change Healthcare, Daseke, CS&L break

By Sara Rosenberg

New York, Feb. 3 – Dell Technologies’ term loan freed to trade on Friday above its original issue discount, and deals from Milk Specialties, Gray Television Inc., KinderCare Education LLC, WCA Waste Corp. and WME IMG LLC hit the secondary market too.

Also, Change Healthcare finalized the spread on its term loan B at the low side of talk and adjusted the issue price, Daseke Inc. firmed pricing on its first-lien term loan at the low end of guidance and tightened the original issue discount, and Communications Sales & Leasing Inc. (CS&L) set the spread on its term loan at the high end of talk, and then all of these deals began trading as well.

In more happenings, Herbalife widened the spread and original issue discount on its term loan and sweetened the call protection, Mediware Information Systems Inc. reduced pricing on its first-lien term loan B and tightened the issue price, Give & Go Prepared Foods Corp. revised the issue price on its incremental term loan, and Ferro Corp. accelerated the commitment deadline on its term loan B.

Furthermore, Ennis-Flint, Gateway Casinos & Entertainment Ltd. and Minerals Technologies Inc. released price talk with launch, and WaveDivision Holdings LLC, Strategic Partners Acquisition Corp., US Foods Inc. and BBB Industries LLC surfaced with new deal plans.

Dell Technologies frees up

Dell Technologies’ $5,487,000,000 first-lien term loan due Sept. 7, 2023 emerged in the secondary market, with levels quoted at par 1/8 bid, par 3/8 offered, according to a trader.

Pricing on the loan is Libor plus 250 bps with a 0.75% Libor floor, and it was sold at an original issue discount of 99.875. The debt has 101 soft call protection for six months.

On Thursday, pricing on the loan finalized at the low end of the Libor plus 250 bps to 275 bps talk.

Credit Suisse Securities (USA) LLC is the left lead bank on the deal (Baa3/BBB-/BBB-).

Proceeds will be used to reprice an existing $4,987,000,000 term loan from Libor plus 325 bps with a 0.75% Libor floor, and the $500 million in incremental borrowings will be used to refinance existing debt.

Dell Technologies is a Round Rock, Texas-based private technology company.

Milk Specialties tops par

Milk Specialties’ $474 million covenant-light first-lien term loan due Aug. 16, 2023 began trading during the session, with levels seen at par ¾ bid, 101½ offered, according to a trader.

Pricing on the loan is Libor plus 400 bps with a 1% Libor floor, and it was issued at par. The debt includes 101 soft call protection for six months.

On Thursday, the spread on the loan firmed at the low end of the Libor plus 400 bps to 425 bps talk.

Credit Suisse Securities (USA) LLC is leading the deal that will reprice an existing first-lien term loan from Libor plus 500 bps with a 1% Libor floor.

Milk Specialties is an Eden Prairie, Minn.-based human and animal nutrition company.

Gray Television levels emerge

Gray Television’s extended $556.4 million term loan due February 2024 was another deal to free up, with levels quoted at par ½ bid, 101 offered, a market source remarked.

Pricing on the loan is Libor plus 250 bps with a step-down to Libor plus 225 bps at 5.25 times net total leverage and no Libor floor. The loan has 101 soft call protection for six months and was sold at an original issue discount of 99.75.

During syndication, the step-down was added and the discount was changed from 99.5.

Wells Fargo Securities LLC is leading the deal that will be used to extend and reprice an existing term loan due June 2021 that is priced at Libor plus 318.75 bps with a 0.75% Libor floor.

Gray Television is an Atlanta-based television broadcast company.

KinderCare starts trading

KinderCare Education’s fungible $200 million tack-on first-lien term loan (B2/B) due Aug. 13, 2022 broke too, with levels seen at par ¼ bid, par ¾ offered, according to a trader.

Pricing on the tack-on term loan is Libor plus 425 bps with a 1% Libor floor, in line with existing term loan pricing, and the debt has 101 soft call protection through April 18, 2017. The tack-on was sold at an original issue discount of 99.875, after tightening during syndication from 99.5.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to repay an existing second-lien term loan at 102.

Lenders were offered a 5 bps amendment consent fee.

KinderCare, formerly known as Knowledge Universe, is a Portland, Ore.-based provider of early childhood care and education services.

WCA frees up

WCA Waste’s $299 million term loan B broke, with levels quoted at par 1/8 bid, par ½ offered, a market source remarked.

Pricing on the loan is Libor plus 275 bps with no Libor floor and a par issue price. There is 101 soft call protection for six months.

SunTrust Robinson Humphrey Inc. is leading the deal that will reprice an existing term loan down from Libor plus 300 bps with a 1% Libor floor.

WCA is a Houston-based vertically integrated non-hazardous solid waste management company.

WME IMG above par

WME IMG’s repriced term loan B began trading, with levels quoted at par ¼ bid, par 5/8 offered, a source said.

Pricing on the loan is Libor plus 325 bps with a 1% Libor floor, and it was issued at par. The debt has 101 soft call protection for six months.

During syndication, pricing on the loan was increased from Libor plus 300 bps.

KKR Capital Markets is leading the deal that will reprice the existing term loan down from Libor plus 425 bps with a 1% Libor floor.

WME IMG is an entertainment, sports and fashion company.

Change Health revised, breaks

Change Healthcare firmed pricing on its $5.1 billion seven-year covenant-light term loan B at Libor plus 275 bps, the low end of the Libor plus 275 bps to 300 bps talk and changed the original issue discount to 99.75 from 99.5, according to a market source.

As before, the B loan has a 1% Libor floor and 101 soft call protection for six months.

Earlier in syndication, the term loan B was upsized from $4,865,000,000 as the health care information technology company downsized its senior unsecured notes offering to $1 billion from $1,235,000,000.

Along with the term loan, the $5.6 billion credit facility includes a $500 million revolver.

With final terms in place, the term loan B broke for trading, and levels were seen at par ¼ bid, par ½ offered, another source added.

Bank of America Merrill Lynch, Goldman Sachs Bank USA, Barclays, Citigroup Global Markets Inc., RBC Capital Markets and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to refinance existing debt and to help fund the creation of the company through the merger of Change Healthcare Holdings Inc. and the majority of McKesson Technology Solutions.

Closing on the merger is expected in the first half of this year, subject to customary conditions.

Daseke tweaked, trades

Daseke set pricing on its $350 million seven-year first-lien term loan (B1/BB-) at Libor plus 550 bps, the low end of the Libor plus 550 bps to 575 bps talk, and moved the original issue discount to 99 from 98.5, according to a market source.

The term loan, which includes a $100 million delayed-draw tranche, still has a 1% Libor floor and 101 soft call protection for six months.

Recommitments were due at noon ET on Friday and then the debt freed up for trading, with levels quoted at 99¾ bid, par ¼ offered, a trader said.

The company is also expected to get a $70 million asset-based revolver based on filings with the Securities and Exchange Commission.

Credit Suisse Securities (USA) LLC, UBS Investment Bank and PNC Capital Markets are leading the term loan, and PNC is leading the revolver.

Daseke being acquired

Proceeds from Daseke’s credit facility will be used to help fund its acquisition by Hennessy Capital Acquisition Corp. II, a blank-check company, in an all-stock merger transaction. The proposed transaction will introduce Daseke as a publicly traded company, with an anticipated initial enterprise value of about $702 million, and with the merger, Hennessy will change its name to Daseke Inc.

Closing is expected this quarter, subject to customary conditions, including regulatory and stockholder approvals and the receipt of proceeds from proposed debt and equity financing activities.

Daseke is an Addison, Texas-based owner of open deck equipment and a transportation and logistics solutions company in the open deck trucking market.

CS&L firms spread, frees up

Communications Sales & Leasing finalized pricing on its $2.1 billion term loan B due October 2022 at Libor plus 300 bps, the high end of the Libor plus 275 bps to 300 bps talk, according to an informed source.

As before, the term loan has a 1% Libor floor, a par issue price and 101 soft call protection through October 2017.

After terms were set, the loan emerged in the secondary market, with one source seeing it quoted at par bid, par ¼ offered.

J.P. Morgan Securities LLC is leading the deal that will be used to reprice an existing term loan down from Libor plus 350 bps with a 1% Libor floor.

Communications Sales & Leasing is a Little Rock, Ark.-based real estate investment trust engaged in the acquisition and construction of mission critical communications infrastructure.

Herbalife reworked

Herbalife raised pricing on its $1,175,000,000 first-lien term loan to Libor plus 550 bps from Libor plus 375 bps, widened the original issue discount talk to a range of 97 to 98 from 99 and revised the call protection to 102 in year one and 101 in year two from a 101 soft call for six months, according to a market source.

Additionally, the maturity of the term loan was shortened to six years from seven years, amortization was raised to 7.5% per annum from 1% per annum, a maintenance covenant was added so that the loan is no longer covenant-light, the $430 million freebie basket on the incremental was removed and the incremental ratios were changed to gross leverage from net leverage, the source said.

The term loan still has a 0.75% Libor floor.

The company’s $1,325,000,000 credit facility (Ba1/BB+) also includes a $150 million revolver.

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

Credit Suisse Securities (USA) LLC is leading the deal that will be used to refinance an existing revolver and for general corporate purposes.

Herbalife is a Los Angeles-based nutrition and weight management company.

Mediware flexes

Mediware Information Systems reduced pricing on its $320 million seven-year covenant-light first-lien term loan B (B2/B-) to Libor plus 375 bps from talk of Libor plus 400 bps to 425 bps and revised the original issue discount to 99.75 from 99.5, a source said.

The term loan still has a 1% Libor floor and 101 soft call protection for six months.

The company’s $495 million credit facility also includes a $60 million five-year revolver (B2/B-) and a $115 million second-lien term loan (CCC).

Bank of America Merrill Lynch, Jefferies Finance LLC, SunTrust Robinson Humphrey Inc., Nomura and RBC Capital Markets are leading the deal that will be used to help fund the buyout of the company by TPG Capital from Thoma Bravo.

Closing is expected this quarter, subject to customary conditions.

Mediware is a Lenexa, Kan.-based provider of software for health care and human services providers.

Give & Go modifies price

Give & Go Prepared Foods tightened the issue price on its $50 million covenant-light incremental first-lien term loan (B1/B+) to par from 99.5, a market source remarked.

Pricing on the first-lien term loan is Libor plus 550 bps with a 1% Libor floor, and it has 101 soft call protection through July 29, 2017.

Recommitments were due by the close of business on Friday, the source added.

Deutsche Bank Securities Inc. and Antares Capital are leading the deal that will be used to fund the acquisition of Uncle Wally’s Bake Shoppe.

Give & Go is a Toronto-based manufacturer of value-added baked goods.

Ferro moves deadline

Ferro accelerated the commitment deadline on its $625 million seven-year covenant-light term loan B (Ba3/BB-), which includes a euro carve-out of $250 million equivalent, to 5 p.m. ET on Monday for U.S. commitments and noon London time on Tuesday for euro commitments, from end of the day on Thursday, according to a market source.

The U.S. tranche is talked at Libor plus 275 bps with a 0.75% Libor floor and an original issue discount of 99.5, and the euro tranche is talked at Euribor plus 275 bps to 300 bps with no Libor floor and a discount of 99.5. Both tranches have 101 soft call protection for six months.

Deutsche Bank Securities Inc., PNC Bank, Bank of America Merrill Lynch and HSBC Securities (USA) Inc. are the bookrunners on the deal that will be used to refinance existing bank debt.

Ferro is a Mayfield Heights, Ohio-based functional coatings and color solutions provider that offers a portfolio of technology-based performance materials.

Ennis-Flint holds call

Ennis-Flint hosted a lender call at 11:30 a.m. ET on Friday on which the company launched a repricing of its $487 million senior secured term loan B due June 2023 at talk of Libor plus 350 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Commitments are due on Thursday, the source said.

Goldman Sachs Bank USA, Antares Capital and Jefferies Finance LLC are leading the deal that will reprice the existing term loan down from Libor plus 400 bps with a 1% Libor floor.

Ennis-Flint is a Thomasville, N.C.-based pavement marking company.

Gateway reveals talk

Gateway Casinos came out with talk of Libor plus 425 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months on its $440 million six-year first-lien term loan B (Ba3/BB-) that launched with a lenders’ presentation in the morning, a market source remarked.

The company’s senior secured facility also includes a C$125 million five-year revolver talked at BA plus 375 bps with no floor.

Commitments are due on Feb. 16, the source added.

Morgan Stanley Senior Funding Inc., SunTrust Robinson Humphrey Inc., Macquarie Capital (USA) Inc. and National Bank of Canada Financial Markets are leading the deal that will be used to refinance existing debt, fund the acquisition of two “Gaming Bundles” from the Ontario Lottery and Gaming Corp., increase available liquidity for future growth capital expenditures and fund a dividend to shareholders.

Gateway is a Burnaby, B.C.-based owner of gaming properties.

Minerals Technologies launches

Minerals Technologies launched with a call during the session a $788 million seven-year term loan B talked at Libor plus 225 bps to 250 bps with a 0.75% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months, a market source said.

Commitments are due on Thursday, the source added.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance existing debt.

Minerals Technologies is a New York-based resource- and technology-based growth company that develops, produces and markets a broad range of specialty mineral, mineral-based and synthetic mineral products and related systems and services.

WaveDivision readies deal

WaveDivision scheduled a lender call for Monday to launch a repricing of its $620.4 million term loan that is 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 are due at 3 p.m. ET on Feb. 10, the source said.

Wells Fargo Securities LLC, Jefferies Finance LLC and SunTrust Robinson Humphrey Inc. are leading the deal that will reprice the existing term loan down from Libor plus 300 bps with a 1% Libor floor.

WaveDivision is a Kirkland, Wash.-based owner and operator of broadband cable systems.

Strategic Partners on deck

Strategic Partners set a lender call for 2 p.m. ET on Monday to launch a repricing of its $45 million revolver and $335 million first-lien term loan, a market source remarked.

UBS Investment Bank is leading the deal.

The revolver and term loan are currently priced at Libor plus 525 bps, and the term loan has a 1% Libor floor.

Strategic Partners is a Chatsworth, Calif.-based designer and manufacturer of medical apparel and footwear and school uniforms.

US Foods joins calendar

US Foods will hold a lender call at 11 a.m. ET on Monday to launch a new loan transaction to existing and prospective lenders, a source said.

Citigroup Global Markets Inc. is leading the deal.

US Foods is a Chicago-based broadline foodservice distributor.

BBB coming soon

BBB Industries emerged with plans to hold a lender call at 10 a.m. ET on Monday for credit facility lenders, according to a market source.

Nomura and Jefferies Finance LLC are leading the deal.

BBB is a Daphne, Ala.-based remanufacturer of automotive products for the North American aftermarket.

Curo sets deadline

In other news, Curo Health Services Holdings Inc. came out with a commitment deadline of noon ET on Thursday for its fungible $60 million incremental first-lien term loan B (B2/B) due Feb. 5, 2022 and repricing of its existing $373 million term loan B due Feb. 5, 2022 (B2/B), according to a market source.

The term loan debt, which launched with a call on Thursday, is talked at Libor plus 475 bps to 500 bps with a 1% Libor floor and 101 soft call protection for six months. Original issue discount talk on the incremental term loan is 99.5, and the repricing is offered at par.

Goldman Sachs Bank USA, Jefferies Finance LLC, SunTrust Robinson Humphrey Inc., Nomura, Citizens and Credit Suisse Securities (USA) LLC are the bookrunners on the deal.

Proceeds from the incremental loan will be used to repay second-lien notes, and the repricing will take the existing term loan down from Libor plus 550 bps with a 1% Libor floor.

Post news of this transaction, the company’s corporate ratings were affirmed at B3/B, with a positive outlook from Moody’s and a stable outlook from Standard & Poor’s.

Curo Health is a Mooresville, N.C.-based pure play hospice provider.

Time Manufacturing update

Time Manufacturing Co.’s $111 million credit facility was going through the allocation process on Friday, according to a market source.

The facility consists of a $30 million five-year revolver and an $81 million six-year term loan.

Pricing on the term loan is Libor plus 500 bps with a 1% Libor floor, and it was issued at a discount of 99.5. The debt has 101 soft call protection for six months.

During syndication, pricing on the loan was set at the tight end of the Libor plus 500 bps to 525 bps talk and the discount was modified from 99.

BNP Paribas Securities Corp. is leading the deal that will be used with $38 million in privately placed mezzanine debt to fund the buyout of the company by the Sterling Group.

Time Manufacturing is a Waco, Texas-based aerial lift manufacturer.

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