Big Ass, MoneyGram changes surface; Blackstone, Packers, Distribution International set talk

By Sara Rosenberg

New York, May 28 – In the primary market on Tuesday, Big Ass Solutions (Big Ass Fans LLC) increased the size of its incremental first-lien term loan and adjusted the issue price, and MoneyGram International Inc. lifted pricing on its first-lien term loan, widened the original issue discount and sweetened the call protection.

Also, Blackstone CQP Holdco LP, Packers Sanitation Services Inc. and Distribution International released price talk with launch.

Furthermore, U.S. Renal Care Inc., Perforce Software Inc., PGS ASA (Petroleum Geo Services), ABC Financial Inc. and Covenant Surgical Partners Inc. joined this week’s calendar.

Big Ass tweaked

Big Ass Solutions lifted its incremental first-lien term loan (B2/B) due May 21, 2024 to $110 million from $100 million and changed the original issue discount to 99.75 from 99.5, a market source said.

Pricing on the incremental term loan is Libor plus 375 basis points with a 1% Libor floor, in line with the existing first-lien term loan.

Recommitments are due at noon ET on Wednesday, the source added.

Credit Suisse Securities (USA) LLC and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to refinance a seller note and fund a shareholder distribution.

Lenders are being offered a 10 bps consent fee for an amendment.

Currently the company has about $245 million outstanding under its existing first-lien term loan.

Big Ass Solutions is a Lexington, Ky.-based producer of high volume, low speed and connected fans.

MoneyGram reworked

MoneyGram raised pricing on its $650 million to $675 million first-lien term loan (B2) due May 2023 to Libor plus 600 bps from Libor plus 550 bps and moved the original issue discount to 98.5 from 99, according to a market source.

In addition, the call protection was modified to non-callable for one year, with a 104 option in year one for a change of control, then at 102 in year two and 101 in year three, from 101 soft call protection for one year, the source said.

The first-lien term loan has a 1% Libor floor.

Commitments are due at 3 p.m. ET on Wednesday, the source added.

Bank of America Merrill Lynch is leading the deal.

The new debt will be used to amend and extend an existing first-lien term loan due March 2020 priced at Libor plus 325 bps with a 1% Libor floor.

Currently, there is about $900 million outstanding under the existing first-lien term loan, but the company will repay $245 million of the debt with a new $245 million senior secured second-lien term loan (Caa2/CCC+).

MoneyGram second-lien

MoneyGram’s second-lien term loan has an annual interest rate of 13%, a portion of which would be payable in kind at the company’s option, as well as provide for customary fees and an original issue discount.

The second-lien loan would mature upon the earlier of six years after closing or 12 months following the maturity date of the refinanced or extended first-lien term loan.

Upon closing of the second-lien term loan, the company would issue warrants to the lenders representing 8% of outstanding common stock, assuming full conversion of the company’s series D participating convertible preferred stock.

Closing on the second-lien loan is conditioned on the refinancing or extending of the company’s existing senior secured revolver and first-lien term loan.

Bank of America arranged the second-lien term loan. BPC Lending I LLC, an affiliate of Beach Point Capital Management, has committed to provide $200 million of the facility, and the Carlyle Group, or an affiliate, will also participate in a portion.

MoneyGram is a Dallas-based money transfer company.

Blackstone CQP guidance

Blackstone CQP Holdco held its lender presentation on Tuesday and announced talk on its $2.5 billion five-year senior secured term loan B (B1/B+) at Libor plus 350 bps with a 0% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months, according to a market source.

Commitments are due on June 11, the source said.

Morgan Stanley Senior Funding Inc. is the left lead on the deal that will be used to refinance existing senior secured notes, fund a distribution to Blackstone and pay transaction fees and expenses.

Blackstone CQP owns about a 40% interest in Cheniere Energy Partners LP. CQP owns Sabine Pass Liquefaction LLC, which owns and operates five fully operational and fully contracted LNG trains, with a fully permitted, planned sixth train in late-stage development.

Packers discount talk

Packers Sanitation Services came out with original issue discount talk of 98.79 on its $120 million incremental first-lien term loan (//B+) due Dec. 4, 2024 that launched with an afternoon lender call, a market source said.

Like the existing first-lien term loan, the incremental loan is priced at Libor plus 325 bps with a 1% Libor floor.

Commitments are due end of day on Friday, the source added.

Jefferies LLC, Nomura and Morgan Stanley Senior Funding Inc. are leading the deal that will be used to fund a distribution to shareholders.

Packers Sanitation is a Kieler, Wis.-based provider of mission critical cleaning, sanitation, and compliance services to the food processing industry.

Distribution International launches

Distribution International held its call in the afternoon and launched its $206 million amended and extended first-lien term loan due Dec. 15, 2023 at talk of Libor plus 550 bps with a 1% Libor floor, according to a market source.

Lenders are being offered a 50 bps amendment fee.

Commitments are due at 5 p.m. ET on June 4, the source said.

RBC Capital Markets is leading the deal that will be used to amend and extend an existing $206 million first-lien term loan due Dec. 15, 2021 and priced at Libor plus 500 bps with a 1% Libor floor.

The amendment and extension is being done in conjunction with an acquisition, which will be funded from $25.6 million of sponsor equity and $25 million of incremental privately placed second-lien debt.

Distribution International, a portfolio company of Advent International, is a Houston-based distributor of mechanical and industrial insulation and accessory products for the industrial, commercial and marine product markets.

U.S. Renal coming soon

U.S. Renal Care emerged with plans to hold a bank meeting at 1 p.m. ET on Thursday to launch $1.77 billion of credit facilities, a market source remarked.

The facilities consist of a $150 million revolver and a $1.62 billion first-lien term loan B, the source added.

Barclays, Bank of America Merrill Lynch, BMO Capital Markets, Macquarie Capital (USA) Inc., RBC Capital Markets and SunTrust Robinson Humphrey Inc. are leading the credit facilities that will be used with $510 million of unsecured debt to help fund the buyout of the company by Chris Brengard and management, along with Bain Capital Private Equity, Summit Partners, Revelstoke Capital Partners and Mark Caputo.

Closing is subject to customary closing conditions, including regulatory approvals.

U.S. Renal is a Plano, Texas-based provider of dialysis services.

Perforce readies deal

Perforce Software set a bank meeting for 10 a.m. ET in New York on Wednesday to launch $875 million of first-lien credit facilities, according to a market source.

The facilities consist of a $75 million revolver, and an $800 million seven-year covenant-lite first-lien term loan that has a 0% Libor floor and 101 soft call protection for six months, the source said.

Commitments are due at 5 p.m. ET on June 12.

The company is also getting a $300 million privately placed second-lien term loan.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs Bank USA and Bank of America Merrill Lynch are leading the deal that will be used to refinance the company’s existing capital structure in conjunction with a significant new equity investment from Francisco Partners.

As a result of the investment, Francisco Partners will become an equal partner with affiliates of Clearlake Capital Group LP, which initially invested in the company in late 2017.

Closing is expected this quarter.

Perforce is a Minneapolis-based provider of enterprise-grade development operations software solutions.

PGS joins calendar

PGS will hold a bank meeting in New York on Wednesday and a bank meeting in London on Monday to launch $775 million of credit facilities (//B+), a market source remarked.

The facilities consist of a $250 million 4.5-year revolver and a $525 million five-year covenant-lite first-lien term loan B, the source added.

According to the lender presentation, the first-lien term loan will have 101 soft call protection for one year.

Barclays is the lead left on the deal, and Barclays, JPMorgan, DNB and Clarksons are the joint global coordinators.

The credit facilities will be used with $150 million of 5.5-year second-lien debt, balance sheet cash and the second installment from the sale of RamformSterling to redeem $212 million senior notes due December 2020, repay an existing $380 million term loan B due March 2021 and pay down some revolver borrowings.

Closing is expected mid-June.

PGS is a Norway-based marine geophysical company providing a broad range of seismic and reservoir services, including acquisition, imaging, interpretation and field evaluation.

ABC plans incremental

ABC Financial scheduled a lender call for 10:30 a.m. ET on Thursday to launch a fungible $115 million incremental first-lien term loan, according to a market source.

Jefferies LLC is leading the deal that will be used to refinance an existing second-lien term loan.

ABC Financial is a Little Rock, Ark.-based software and payment processing company.

Covenant Surgical on deck

Covenant Surgical Partners set a bank meeting for 10 a.m. ET on Thursday to launch first-and second-lien term loans, a market source said.

KKR Capital Markets is leading the deal that will be used to refinance existing debt and fund acquisitions under letters of intent.

Covenant Surgical is a Nashville, Tenn.-based acquirer and operator of ambulatory surgery centers and physician practices.

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