Applied Systems, United Rentals, Artera, TenCate, Consumer Cellular break; Sharp updated

By Sara Rosenberg

New York, Feb. 7 – Applied Systems Inc. moved some funds between its first- and second-lien term loans, trimmed the spread on its second-lien loan and changed the issue prices on both tranches, and United Rentals (North America) Inc. increased the size of its term loan B and finalized the original issue discount at the tight end of talk, and then both of these deals freed up for trading on Wednesday.

Also, before breaking for trading, Artera Services LLC upsized its first-lien term loan, and TenCate Grass Holding BV (Touchdown Acquirer Inc.) changed the original issue discount on its U.S. and euro term loans again, and Consumer Cellular’s (CCI Buyer Inc.) incremental term loan B made its way into the secondary market as well.

In more happenings, Sharp Services LLC firmed the issue price on its add-on first-lien term loan at the tight end of revised guidance, and KITO Crosby (Crosby US Acquisition Corp.) moved up the commitment deadline for its first-lien term loan.

Furthermore, AssuredPartners Inc., BrightSpring Health Services Inc. (Phoenix Guarantor Inc.) and Getty Images Inc. released price talk with launch, and EisnerAmper (Eisner Advisory Group LLC) joined this week’s primary calendar.

Applied Systems reworked

Applied Systems upsized its seven-year first-lien term loan (B2/B-) to $2.42 billion from $2.365 billion and moved the original issue discount to 99.875 from 99.5, a market source remarked.

The company also downsized its eight-year second-lien term loan (Caa2/CCC) to $565 million from $620 million, cut pricing to SOFR plus 525 basis points from talk in the range of SOFR plus 550 bps to 575 bps and revised the issue price to par from 99.5, the source continued.

Pricing on the first-lien term loan remained at SOFR plus 350 bps with a 0% floor, and the debt still has 101 soft call protection for six months, and the second-lien term loan still has a 0% floor and call protection of 102 in year one and 101 in year two.

The company’s $3.135 billion of credit facilities also include a $150 million five-year revolver (B2/B-).

Applied Systems frees up

Recommitments for Applied Systems’ credit facilities were due at noon ET on Wednesday, and the debt broke for trading later in the day, with the first-lien term loan quoted at par 1/8 bid, par 3/8 offered and the second-lien term loan quoted at par ¼ bid, 101 offered, a trader added.

Nomura Securities, Jefferies LLC, JPMorgan Chase Bank, Macquarie Capital (USA) Inc., Morgan Stanley Senior Funding Inc. and Santander are leading the deal that will be used to refinance the company’s existing capital structure, repurchase minority equity share, and pay fees and expenses.

Closing is expected late this month.

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

United Rentals revised, breaks

United Rentals lifted its seven-year covenant-lite term loan B to $1 billion from $750 million and firmed the original issue discount at 99.75, the tight end of the 99.5 to 99.75 talk, according to a market source.

As before, the term loan is priced at SOFR plus 175 bps with a 0% floor, and has 101 soft call protection for six months.

Recommitments were due at noon ET on Wednesday and the term loan freed up later in the day, with levels quoted at 99 7/8 bid, another source added.

Wells Fargo Securities LLC is the left lead on the deal. BofA Securities Inc. is the administrative agent.

The new loan will be used to refinance an existing term loan B due 2025 and to pay down ABL borrowings. Due to the upsizing, the company will no longer be using a $208 million draw under its existing ABL revolver due 2027 to help with the term loan B refinancing.

United Rentals is a Stamford, Conn.-based equipment rental company.

Artera upsized

Artera Services raised its seven-year first-lien term loan (B3/B-) to $930 million from $740 million, and left pricing at SOFR plus 450 bps with a 0% floor and an original issue discount of 99.25, a market source said.

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

Previously in syndication, pricing on the term loan was lowered from SOFR plus 500 bps and the discount was changed from talk in the range of 98 to 99.

UBS Investment Bank, BofA Securities Inc., BMO Capital Markets, BNP Paribas Securities Corp., Citizens, Deutsche Bank Securities Inc., Jefferies LLC, Mizuho, MUFG and PNC are leading the deal. Credit Suisse is the administrative agent.

Artera hits secondary

During the session, Artera’s term loan broke for trading, with levels quoted at 99 5/8 bid, par 1/8 offered, another source added.

The term loan will be used with $600 million of senior secured first-priority notes, downsized from $740 million, cash from the balance sheet, a sponsor first-lien PIK term loan and a sponsor contribution to refinance existing first- and second-lien term loans, to repay receivables facility borrowings, to redeem existing notes in full, to pay related fees and expenses, and, due to the extra funds raised, for general corporate purposes.

Artera is an Atlanta-based provider of infrastructure services serving utilities and midstream operators.

TenCate tweaked

TenCate Grass modified original issue discount talk on its $835 million seven-year term loan B and €350 million seven-year term loan B to a range of 99.25 to 99.5 from revised talk of 99 and initial talk of 98.5, and then firmed the discount at 99.5 after the noon ET commitment deadline passed on Wednesday, according to a market source.

Pricing on the term loans (B2/B) remained at SOFR/Euribor plus 400 bps with a 0% floor, and the debt still has 101 soft call protection for six months.

Included in the U.S. term loan B is a $150 million delayed-draw tranche.

Previously in syndication, pricing on the term loans was lowered from talk in the range of SOFR/Euribor plus 425 bps to 450 bps.

TenCate tops OID

Late in the day, TenCate’s U.S. term loan freed to trade, with levels quoted at 99¾ bid, par 1/8 offered, another source added.

BofA Securities Inc. is the left lead on the U.S. loan. BofA Securities and Jefferies LLC are the joint physical bookrunners on the euro loan. Deutsche Bank Securities Inc., BMO Capital Markets, Societe Generale and ING are arrangers. BofA Securities is the administrative agent.

The term loans will be used with contributed equity to fund the buyout of the company by Leonard Green & Partners LP from Crestview Partners and select other shareholders, to add cash to the balance sheet and to pay related fees. The current senior management team of TenCate will remain invested in the company.

Closing is expected this month.

TenCate is a Netherlands-based manufacturer, distributor and installer of artificial turf and other surfaces for sports and the outdoor living segment.

Consumer Cellular frees

Consumer Cellular’s fungible $500 million incremental term loan B (B1) due Dec. 17, 2027 began trading as well, with levels quoted at 99¼ bid, 99½ offered, a market source remarked.

Pricing on the incremental term loan is SOFR plus 400 bps with a 0.75% floor and it was sold at an original issue discount of 99.27. The debt has 101 soft call protection for six months.

BofA Securities Inc., Barclays, UBS Investment Bank and Jefferies LLC are leading the deal that will be used to fund a distribution to the direct or indirect shareholders of CCI Buyer, to redeem in whole or in part certain outstanding preferred stock, and to pay related fees and expenses.

Consumer Cellular is a Scottsdale, Ariz.-based provider of postpaid virtual wireless services with a major focus on the senior demographic.

Sharp updated

Sharp Services finalized the issue price on its fungible $150 million add-on first-lien term loan (B3) due December 2028 at par, the tight end of revised talk of 99.75 to par and tighter than initial talk of 99.03, according to a market source.

Pricing on the add-on term loan is SOFR+10 bps CSA plus 400 bps with a 0.5% floor.

JPMorgan Chase Bank and RBC Capital Markets are co-leads on the deal that will be used with cash on hand to refinance an existing $157.5 million privately placed second-lien term loan.

Sharp Services is a provider of pharmaceutical packaging and clinical services.

KITO Crosby accelerated

KITO Crosby changed the commitment deadline for its $1 billion 5.5-year first-lien term loan (B) to 5 p.m. ET on Friday from 5 p.m. ET on Monday, a market source said.

Talk on the term loan is SOFR plus 425 bps to 450 bps with a 0.5% floor, an original issue discount of 99 and 101 soft call protection for six months.

The company’s $1.12 billion of credit facilities also include a $120 million five-year revolver.

UBS Investment Bank, KKR Capital Markets, SMBC, Mizuho, ING and Morgan Stanley Senior Funding Inc. are leading the deal that will be used to refinance the company’s existing capital structure.

KITO Crosby is a manufacturer and marketer of highly engineered equipment and solutions used in lifting, rigging, and custom material handling.

AssuredPartners guidance

AssuredPartners held its lender call on Wednesday morning and, shortly before the call began, talk on its $500 million seven-year senior secured covenant-lite incremental first-lien term loan B-5 (B2/B) was announced at SOFR plus 375 bps with a 0.5% floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months, a market source remarked.

Commitments are due at 2 p.m. ET on Thursday, after being accelerated in the afternoon from noon ET on Friday, the source added.

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

The term loan will be used to repay revolver borrowings, to fund acquisitions under letters of intent and for general corporate purposes.

AssuredPartners is a Lake Mary, Fla.-based insurance brokerage firm.

BrightSpring refinancing

BrightSpring launched in the morning a $2.566 billion senior secured covenant-lite first-lien term loan B (B1/B+) due February 2031 talked at SOFR plus 300 bps to 325 bps with a 0% floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

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

Morgan Stanley Senior Funding Inc. and KKR Capital Markets are leading the arranger group.

The new loan will be used to refinance an existing first-lien facility.

Recently, the company priced an initial public offering of common stock and concurrent offering of tangible equity units, and used the proceeds to repay revolver borrowings, some of its first-lien term loan and its second-lien term loan in full, as well as to make required payments in connection with the termination of its monitoring agreement with Kohlberg Kravis Roberts & Co. L.P. and Walgreens Boots Alliance Inc.

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

Getty holds call

Getty Images held a lender call at 11:30 a.m. ET, launching a $980 million seven-year term loan B talked at SOFR plus 375 bps with a 0% floor and an original issue discount of 99 to 99.5, and a $400 million equivalent euro seven-year term loan B talked at Euribor plus 400 bps with a 0% floor and a discount of 99 to 99.5, a market source said. Both term loans (B1/BB-) have 101 soft call protection for six months.

Commitments for the U.S. term loan are due at 5 p.m. ET on Feb. 14 and commitments for the euro term loan are due at 6 a.m. ET on Feb. 15, the source added.

JPMorgan Chase Bank is the left lead on the deal that will be used to refinance an existing $1.083 billion term loan B due Feb. 19, 2026 and $300 million of senior unsecured notes due March 1, 2027.

Getty Images is a Seattle-based visual content creator and marketplace.

EisnerAmper on deck

EisnerAmper set a lender call for 11 a.m. ET on Thursday to launch a $795 million seven-year covenant-lite term loan B talked at SOFR plus 425 bps to 450 bps with a 0.5% floor and an original issue discount of 99, according to a market source.

Commitments are due at noon ET on Feb. 22, the source added.

Deutsche Bank Securities Inc., JPMorgan Chase Bank, TD Securities (USA) LLC and Golub Capital are leading the deal that will be used to refinance existing debt.

EisnerAmper is a New York-based professional services firm with a full suite of accounting, tax and advisory services.

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