Domtar, Gates, Graham, Arclin, Spectrum, Ancestry, Array, Grosvenor and more break

By Sara Rosenberg

New York, Feb. 19 – Domtar Personal Care increased the size of its first-lien term loan, lowered the spread and tightened the original issue discount, Gates Global LLC finalized the original issue discount on its first-lien term loan at the tight side of talk, trimmed the Libor floor and added a pricing step-down, and Graham Packaging Co. Inc. set the spread on its first-lien term loan at the low end of guidance, and then these deals freed to trade on Friday.

Also, before breaking for trading, Arclin firmed pricing on its first-lien term loan at the high side of talk and added a step-down, Spectrum Brands Inc. upsized its term loan B, and revised the spread and original issue discount, and Ancestry.com (Arches Buyer Inc.) finalized pricing on its first-lien term loan at the wide end of talk.

Array Technologies reduced the size of its first-lien term loan B, set pricing at the low end of guidance and trimmed the Libor floor, and Grosvenor Capital Management Holdings LLLP changed the Libor floor on its first-lien term loan B, and then these deals began trading as well.

Other deals to make their way into the secondary market included Enterprise Development Authority, Patriot Rail & Ports, Ravago Holdings America Inc., EagleView Technology Corp. and AHP Health Partners Inc.

In more happenings, Uber Technologies Inc. modified the issue price on its 2027 term loan B, Peraton upsized its first-lien term loan, and BrightSpring Health Services (Phoenix Guarantor Inc.) increased the size of its incremental first-lien term loan, trimmed the spread and the floor, firmed the issue price at the tight side of guidance and added a repricing of its existing term loan.

Additionally, Sedgwick Claims Management Services Inc. widened the spread on its term loan B-2 but tightened the issue price, and Fort Dearborn Holding Co. Inc. decided to delay its incremental term loan process and cancelled its lender call.

Furthermore, CSC ServiceWorks Holdings LLC, Renaissance Learning (Renaissance Holding Corp.), Kofax (Project Leopard Holdings Inc.) and Applied Systems Inc. announced price talk with launch, and Berry Global joined the near-term primary calendar.

Domtar reworked, trades

Domtar Personal Care lifted its seven-year covenant-lite first-lien term loan (B2/B) to $650 million from $620 million, cut pricing to Libor plus 425 basis points from talk in the range of Libor plus 450 bps to 475 bps and adjusted the original issue discount to 99.5 from 99, according to a market source.

Other changes included setting MFN at 50 bps for 12 months and requiring quarterly lender calls.

The 0.75% Libor floor and 101 soft call protection for six months were unchanged.

Recommitments were due at 10:30 a.m. ET on Friday and the term loan started trading in the afternoon, with levels quoted at par bid, par ½ offered, another source added.

Deutsche Bank Securities Inc., Barclays, BNP Paribas Securities Corp., RBC Capital Markets and CIBC are leading the deal that will help fund the buyout of the company by American Industrial Partners from Domtar Corp. for $920 million. The equity portion of the transaction was reduced with the term loan upsizing.

Closing is expected this quarter, subject to receipt of regulatory approvals and other customary conditions.

Domtar Personal Care is a manufacturer and distributor of personal care products.

Gates tweaked, frees up

Gates Global set the original issue discount on its $1.377 billion covenant-lite first-lien term loan (B1/B+) due March 2027 at 99.75, the tight end of the 99.5 to 99.75 talk, revised the Libor floor to 0.75% from 1%, and added a 25 bps pricing step-down at 3.75x total net leverage, a market source remarked.

Initial pricing on the term loan remained at Libor plus 275 bps, and the loan still has 101 soft call protection for six months.

Recommitments were due at 11 a.m. ET on Friday and the term loan broke for trading in the afternoon, with levels quoted at 99¾ bid, par ¼ offered, another source added.

Credit Suisse Securities (USA) LLC, BofA Securities Inc., Barclays, Citigroup Global Markets Inc., HSBC Securities (USA) Inc., Goldman Sachs Bank USA and Blackstone are leading the deal that will be used to refinance an existing term loan due March 2024 priced at Libor plus 275 bps with a 1% Libor floor.

Gates is a Denver-based manufacturer of application-specific fluid power and power transmission solutions.

Graham updated, breaks

Graham Packaging firmed pricing on its $1.445 billion covenant-lite first-lien term loan (B1/B) due August 2027 at Libor plus 300 bps, the low end of the Libor plus 300 bps to 325 bps talk, according to a market source.

As before, the term loan has a 0.75% Libor floor, a par issue price and 101 soft call protection for six months.

Commitments continued to be due at noon ET on Friday and the term loan emerged in the secondary market in the afternoon, with levels quoted at par 1/8 bid, par ½ offered, another source added.

Credit Suisse Securities (USA) LLC and HSBC Securities (USA) Inc. are leading the deal that will be used to reprice an existing term loan down from Libor plus 375 bps with a 0.75% Libor floor.

Graham Packaging is a designer, manufacturer and seller of food, beverage, household and automotive containers.

Arclin firms, trades

Arclin finalized the spread on its $692 million covenant-lite first-lien term loan (B2/B) due February 2026 at Libor plus 400 bps, the high end of the Libor plus 375 bps to 400 bps talk, and added a 25 bps step-down at 4.75x first-lien net leverage, a market source said.

The term loan still has a 1% Libor floor, an original issue discount of 99.51 and 101 soft call protection for six months.

On Friday, the term loan freed to trade, with levels quoted at par bid, par ½ offered, another source added.

Credit Suisse Securities (USA) LLC and RBC Capital Markets are leading the deal that will be used with balance sheet cash to refinance existing first- and second-lien term loans and fund a distribution.

The existing $532 million first-lien term loan is due February 2024 and priced at Libor plus 350 bps with a 1% Libor floor.

Arclin is an Atlanta-based provider of surface overlay solutions and performance resins.

Spectrum flexes, breaks

Spectrum Brands raised its term loan B (Ba1/BB-/BBB-) to $400 million from $350 million, reduced pricing to Libor plus 200 bps from talk in the range of Libor plus 225 bps to 250 bps and changed the original issue discount to 99.75 from 99.5, a market source remarked.

As before, the term loan has a 0.5% Libor floor and 101 soft call protection for six months.

Late in the day, the term loan B hit the secondary market, with levels quoted at par bid, par ½ offered, a trader added.

RBC Capital Markets is the left lead on the deal that will be used with $500 million of notes, upsized from $400 million, to redeem 6 1/8% senior notes due 2024 and 5¾% senior notes due 2025.

The additional $150 million of total proceeds raised through the term loan and the bond upsizings will be used to increase the tender offer by $50 million and add $100 million of cash to the balance sheet.

Spectrum Brands is a Middleton, Wis.-based consumer products company.

Ancestry updated, trades

Ancestry firmed pricing on its $1.6 billion covenant-lite first-lien term loan due December 2027 (B1/B) at Libor plus 325 bps, the high end of the Libor plus 300 bps to 325 bps talk, according to a market source.

As before, the term loan has a 0.5% Libor floor, a par issue price and 101 soft call protection for six months.

The term loan began trading late in the day, with levels quoted at par bid, par ½ offered, another source added.

Credit Suisse Securities (USA) LLC and Blackstone are leading the deal that will be used to reprice an existing term loan down from Libor plus 400 bps with a 0.5% Libor floor.

Ancestry.com is a Lehi, Utah-based provider of digital family history services and consumer genomics.

Array modified, frees up

Array Technologies downsized its first-lien term loan B due October 2027 to $430 million from $460 million, firmed pricing at Libor plus 325 bps, the low end of the Libor plus 325 bps to 350 bps talk, and changed the Libor floor to 0.5% from 0.75%, a market source said.

The term loan still has a par issue price and 101 soft call protection for six months.

Recommitments were due at 3 p.m. ET on Friday and the term loan B broke for trading later in the day, with levels quoted at par 1/8 bid, par 5/8 offered, another source added.

Goldman Sachs Bank USA is the left lead on the deal that will be used to reprice an existing term loan B down from Libor plus 400 bps with a 1% Libor floor.

Lenders will be repaid at the 101 call premium that applies to the existing term loan B.

Array Technologies is an Albuquerque-based designer and manufacturer of solar tracking systems.

Grosvenor trims floor, breaks

Grosvenor Capital Management reduced the Libor floor on its $290 million covenant-lite first-lien term loan B (Ba3/BB+) due February 2028 to 0.5% from 0.75%, according to a market source.

Pricing on the term loan remained at Libor plus 250 bps with an original issue discount of 99.75, and the debt still has 101 soft call protection for six months.

Recommitments were due at 2 p.m. ET on Friday and the loan free up, with levels quoted at par bid, par ½ offered, another source added.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to reprice and extend an existing roughly $340 million term loan B alongside a roughly $50 million prepayment of the debt.

Closing is expected during the week of Feb. 22.

Grosvenor Capital is a Chicago-based independent alternative asset management firm.

Enterprise hits secondary

Enterprise Development Authority’s $475 million seven-year covenant-lite term loan B (B3/B/BB) began trading too, with levels quoted at par bid, par ½ offered, a market source said.

Pricing on the term loan is Libor plus 425 bps with a step-down to Libor plus 400 bps at B2/B/B+ corporate family ratings with stable outlooks and a 0.75% Libor floor. The debt was sold at an original issue discount of 99.5 and has 101 soft call protection for six months.

During syndication, pricing on the term loan was lowered from Libor plus 450 bps, the step-down was added and the discount was changed from 99.

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

The term loan B is expected to be funded into escrow and settle the redemption of senior notes in late March. There is a ticking fee of 100% of the spread beginning April 1.

Enterprise Development Authority is an unincorporated governmental instrumentality of the Estom Yumeka Maidu Tribe of the Enterprise Rancheria and was formed in 2015 to own, develop, construct, and operate all gaming and related businesses of the Tribe.

Patriot Rail starts trading

Patriot Rail & Ports’ $303 million term loan B (B2/B) due Oct. 18, 2026 also broke, with levels quoted at par 3/8 bid, 101 1/8 offered, according to a trader.

Pricing on the term loan is Libor plus 450 bps with a 0% Libor floor and it was issued at par. The loan has 101 soft call protection for six months.

RBC Capital Markets is the left lead on the deal that will be used to reprice an existing term loan down from Libor plus 525 bps with a 0% Libor floor.

Patriot Rail is a Jacksonville, Fla.-based owner of a portfolio of short-line railroads, port terminals and related infrastructure assets, providing transportation and logistics solutions.

Ravago tops OID

Another deal to hit the secondary market was Ravago Holdings America Inc.’s $325 million seven-year covenant-lite term loan B (B1//BB), with levels quoted at 99 7/8 bid, par 3/8 offered on the break and then it moved up to par bid, par ½ offered, a market source remarked.

Pricing on the term loan is Libor plus 250 bps with a 0% Libor floor and it was sold at an original issue discount of 99.75. The loan has 101 soft call protection for six months.

During syndication, pricing on the term loan firmed at the low end of the Libor plus 250 bps to 275 bps talk and the discount was revised from 99.5.

Wells Fargo Securities LLC is leading the deal that will be used to refinance an existing term loan B, pay off an intercompany loan from Ravago SA established to fund Blue Tree’s acquisition of Bamberger, fund a distribution to the Ultimate Parent and pay related transaction fees and expenses.

Ravago is a distributor of plastic resins in North and Latin America and an indirect subsidiary of Luxembourg-based Ravago SA.

EagleView frees up

EagleView Technology’s fungible $100 million add-on covenant-lite first-lien term loan B due Aug. 14, 2025 began trading as well, with levels quoted at 99 bid, 99½ offered, according to a trader.

Pricing on the add-on term loan is Libor plus 350 bps with a 0% Libor floor and it was sold at an original issue discount of 99.03. The debt has 101 soft call protection for six months.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to repay revolver and second-lien term loan borrowings and to pay related fees and expenses.

Closing is expected during the week of Feb. 22.

EagleView is a Bellevue, Wash.-based provider of aerial imagery and property data analytics.

AHP above par

AHP Health Partners’ $797 million first-lien term loan B due June 30, 2025 freed to trade, with levels quoted at par ½ bid, par 7/8 offered, a market source said.

Pricing on the term loan is Libor plus 375 bps with a 1% Libor floor and it was issued at par. The debt has 101 soft call protection for six months.

Barclays is the left lead on the deal that will be used to reprice an existing term loan B down from Libor plus 450 bps with a 1% Libor floor.

AHP Health is a Nashville, Tenn.-based provider of comprehensive, cost-effective healthcare and related services.

Uber revised

Uber Technologies tightened the original issue discount on its $1,101,125,000 covenant-lite term loan B due February 2027 to 99.875 from talk in the range of 99.5 to 99.75, and left pricing at Libor plus 350 bps with a 0% Libor floor, according to a market source.

The company is also getting a $1,462,500,000 covenant-lite term loan B due April 4, 2025 that priced in line with talk at Libor plus 350 bps with a 0% Libor floor and a par issue price.

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

Commitments continued to be due at noon ET on Friday, the source added.

Morgan Stanley Senior Funding Inc., Barclays, Citigroup Global Markets Inc. and J.P Morgan Securities LLC are leading the deal (B+) that will be used to reprice an existing $1,462,500,000 term loan B due 2025 and extend the maturity of an existing $1,101,125,000 term loan B due 2023 to 2027.

Uber is a San Francisco-based online transportation network company.

Peraton upsizes

Peraton increased its seven-year term loan to $5.92 billion from $2.145 billion, and left talk at Libor plus 400 bps to 425 bps with a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

Commitments continue to be due at 5 p.m. ET on Monday, the source added.

J.P. Morgan Securities LLC, KKR Capital Markets, Barclays, Goldman Sachs Bank USA, UBS Investment Bank, Macquarie Capital (USA) Inc. and RBC Capital Markets are leading the deal.

Proceeds will be used to refinance existing debt, help fund the recently completed acquisition of Northrop Grumman Corp.’s IT services business for $3.4 billion in cash, and, due to the upsizing, to help fund the acquisition of Perspecta Inc. for $29.35 per share in cash, or about $7.1 billion.

Closing on the Perspecta transaction is expected in the first half of this year, subject to approval by Perspecta stockholders as well as the receipt of regulatory approvals and other customary conditions.

Peraton, a Veritas Capital portfolio company, is a provider of highly differentiated national security solutions and technologies. Perspecta is a Chantilly, Va.-based U.S. government services provider.

BrightSpring changes emerge

BrightSpring Health Services raised its fungible incremental first-lien term loan due March 2026 to $675 million from $600 million, lowered pricing to Libor plus 350 bps from Libor plus 375 bps, revised the Libor floor to 0% from 0.5% and set the issue price at par, the tight end of the 99.75 to par talk, a market source said.

Also, the company added a repricing of its existing $550 million first-lien term loan to Libor plus 350 bps with a 0% Libor floor from Libor plus 375 bps with a 0.5% Libor floor.

The incremental term loan and repriced term loan will have 101 soft call protection for six months starting on April 8, instead of having 101 soft call protection through April 7, the source added.

Commitments are due on Monday.

Jefferies LLC, KKR Capital Markets LLC, Morgan Stanley Senior Funding Inc., Credit Suisse Securities (USA) LLC, BMO Capital Markets, Deutsche Bank Securities Inc., BofA Securities Inc., HSBC Securities (USA) Inc., Credit Agricole and Natixis are leading the deal.

The incremental term loan will be used to fund an acquisition.

BrightSpring Health is a Louisville, Ky.-based provider of home and community-based health services.

Sedgwick tweaks deal

Sedgwick Claims Management Services lifted pricing on its $1.084 billion term loan B-2 to Libor plus 375 bps from Libor plus 350 bps and modified the issue price to par from 99.875, according to a market source.

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

BofA Securities Inc. is leading the deal that will be used to reprice an existing term loan down from Libor plus 400 bps with a 0% Libor floor.

Sedgwick is a Memphis, Tenn.-based provider of technology-enabled risk, benefits and integrated business solutions.

Fort Dearborn postponed

Fort Dearborn terminate plans for a 10 a.m. ET lender call on Friday and is delaying its incremental loan financing process, a market source remarked.

The company was planning to launch on the call a fungible $90 million covenant-lite incremental first-lien term loan due Oct. 20, 2023 priced at Libor plus 400 bps with a 1% Libor floor, in line with the existing term loan.

Deutsche Bank Securities Inc. and Golub Capital were the bookrunners on the deal that was going to be used to fund the acquisition of Hammer Packaging Corp., a West Henrietta, N.Y.-based supplier of labels.

Fort Dearborn is an Elk Grove, Ill.-based supplier of labels.

CSC proposed terms

CSC ServiceWorks held its call on Friday and announced price talk on its $2 billion seven-year first-lien term loan (B-) at Libor plus 400 bps to 425 bps with a 0.75% Libor floor and an original issue discount of 99 to 99.5, according to a market source.

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

Commitments are due at noon ET on Feb. 26, the source added.

Barclays, J.P. Morgan Securities LLC, BMO Capital Markets, Deutsche Bank Securities Inc. and Ares are leading the deal that will be used to refinance all of the company’s existing debt.

CSC ServiceWorks is a Plainview, N.Y.-based provider of technology-enabled laundry and air services.

Renaissance price talk

Renaissance Learning disclosed price talk on its non-fungible $358 million incremental first-lien term loan (B2/B-) and fungible $135 million incremental second-lien term loan (Caa2/CCC) in connection with its morning call, a market source said.

Talk on the first-lien term loan is Libor plus 375 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and talk on the second-lien term loan is Libor plus 700 bps with a 0% Libor floor and a discount of 99, the source added.

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

Barclays, Jefferies LLC, Nomura Securities, Macquarie Capital (USA) Inc., BMO Capital Markets and Madison are leading the deal that will be used to fund the acquisition of Nearpod.

Renaissance Learning is a Wisconsin Rapids, Wis.-based provider of software solutions for assessment, teaching and learning to K-12 schools and districts.

Kofax details emerge

Kofax held its lender call at 11 a.m. ET and, shortly before the event began, it was announced that the company is seeking a $360 million incremental covenant-lite first-lien term loan (B2/B) due July 2024 talked at Libor plus 475 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, according to a market source.

Commitments are due at noon ET on Feb. 26.

Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Deutsche Bank Securities Inc., UBS Investment Bank and Macquarie Capital (USA) Inc. are leading the deal that will fund a distribution to shareholders.

The incremental term loan will be fungible with the company’s existing $402 million tack-on term loan done in 2019, which will be extended by one year from July 2023 and flexed up to Libor plus 475 bps from Libor plus 425 bps.

Furthermore, the company’s original $542 million term loan will be extended by one year to July 2024 and see pricing increase to Libor plus 475 bps from Libor plus 450 bps, the source added.

Kofax is an Irvine, Calif.-based intelligent automation platform.

Applied Systems guidance

Applied Systems came out with issue price talk of par on its fungible $420 million covenant-lite incremental first-lien term loan (B2/B-) due September 2024 that launched with a call in the morning, a market source remarked.

Pricing on the term loan is currently Libor plus 300 bps with a step-up to Libor plus 325 bps at more than 4.75x first-lien net leverage and a 1% Libor floor. Upon delivering Dec. 31, 2020 financials, the spread will be subject to the grid.

Commitments are due at noon ET on March 2, the source added.

Nomura Securities is leading the deal that will be used fund the acquisition of EZLynx, raise cash for general corporate purposes and pay fees and expenses.

Applied Systems is a University Park, Ill.-based cloud software provider to the property & casualty and benefits insurance industry. EZLynx is a Lewisville, Tex.-based provider of insurance software.

Berry on deck

Berry Global set a lender call for 11 a.m. ET on Monday to launch a $3.881 billion first-lien term loan Z due July 2026 talked at Libor plus 175 bps with 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 5 p.m. ET on Thursday, the source added.

Goldman Sachs Bank USA is leading the deal that will be used to replace an existing term loan X due 2024 and term loan Y due July 2026, both priced at Libor plus 200 bps with a 0% Libor floor, and form a new repriced term loan Z.

The existing term loan debt is expected to be paid down by about $750 million less fees and expenses through this refinancing. The company may issue other secured debt to fund a portion of the transaction.

Berry is an Evansville, Ind.-based supplier of flexible, rigid and nonwoven protective solutions for consumer, industrial and healthcare end markets.

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