PS Logistics, Mister Car Wash, LegalShield free up; Utopia Pipeline shops incremental loan

By Sara Rosenberg

New York, March 27 – PS Logistics set the original issue discount on its incremental term loan at the wide end of guidance and added call protection, and Mister Car Wash Holdings Inc. increased the size of its incremental first-lien term loan, and then both of these deals broke for trading on Wednesday.

Another deal to surface in the secondary market during the session was LegalShield’s add-on first-lien term loan, and it was seen trading above its original issue discount.

In more happenings, Utopia Pipeline (Riverstone Utopia Member LLC) approached lenders with an incremental term loan B and amendment, and Ultimate Software Group Inc., Trade Me Group Ltd. (Titan Acquisitionco New Zealand) and MW Industries Inc. joined this week’s primary calendar.

PS updated, trades

PS Logistics finalized the original issue discount on its $45 million incremental term loan at 99.5, the wide side of the 99.5 to 99.75 talk, and added 101 soft call protection for six months, according to a market source.

The incremental term loan is priced at Libor plus 475 basis points with a step-down to Libor plus 450 bps when leverage is less than 3.25 times and a 1% Libor floor, which matches existing term loan pricing.

On Wednesday, after terms firmed up, the incremental term loan made its way into the secondary market and was quoted at 99 5/8 bid, 100 1/8 offered, the source added.

UBS Investment Bank is leading the deal that will be used to fund an acquisition.

PS Logistics is a flatbed transportation solutions provider.

Mister Car upsizes, breaks

Mister Car Wash raised its fungible incremental first-lien term loan (B1/B-) due Aug. 21, 2021 size to $60 million from $50 million, according to a market source.

As before, the incremental term loan is priced at Libor plus 325 bps with a 1% Libor floor, in line with the existing term loan, and is being sold at an original issue discount of 99.52.

Recommitments were due at noon ET on Wednesday and, later in the day, the incremental loan started trading with levels seen at 99½ bid, par offered, another source added.

Jefferies LLC is leading the deal that will be used to pay down revolver borrowings and fund cash to the balance sheet.

Closing is expected on Friday.

Mister Car Wash is a Tucson-based car wash company.

LegalShield frees up

LegalShield’s fungible $175.4 million add-on first-lien term loan due May 1, 2025 began trading too, with levels quoted at 98 7/8 bid, 99¼ offered, a trader remarked.

Pricing on the add-on first-lien term loan is Libor plus 325 bps with a 25 bps step-down when first-lien net leverage is below 4.3 times and a 0% Libor floor, in line with existing first-lien term loan pricing, and the debt was sold at an original issue discount of 98.75. The add-on first-lien term loan, as well as the existing first-lien term loan, are getting 101 soft call protection for six months.

The company is also getting a fungible $30 million add-on second-lien term loan due May 1, 2026, which has been placed with one account. Pricing on the second-lien term loan is Libor plus 750 bps with a 0% Libor floor.

RBC Capital Markets, SunTrust Robinson Humphrey Inc., BMO Capital Markets and KKR Capital Markets are leading the deal that will be used to fund a shareholder distribution.

LegalShield, a Stone Point Capital LLC portfolio company, is an Ada, Okla.-based provider of legal plans and identity theft solutions.

Utopia comes to market

Back in the primary market, Utopia Pipeline launched on Wednesday a fungible $25 million incremental term loan B due Oct. 17, 2024 talked with an original issue discount of 99, a market source said.

The incremental term loan is priced at Libor plus 425 bps with a 1% Libor floor.

Barclays is leading the deal that will be used to pay a distribution to the sponsor, Riverstone Holdings LLC.

Along with the incremental loan, the company is looking to amend its existing credit agreement to, among other things, allow for the distribution.

Existing lenders are offered a 10 bps amendment fee, the source added.

Commitments are due on April 3.

Utopia Pipeline transports ethane and ethane-propane mixtures from the core of the Utica and Marcellus shale to petrochemical companies operating in Ontario, Canada.

Ultimate Software on deck

Ultimate Software Group set a bank meeting for 10 a.m. ET in New York on Thursday to launch $2,575,000,000 of first-lien credit facilities, split between a $275 million revolver and a $2.3 billion seven-year covenant-lite first-lien term loan, a market source remarked.

The term loan is talked with a 0% Libor floor and 101 soft call protection for six months.

Commitments are due at 5 p.m. ET on April 11, the source added.

Credit Suisse Securities (USA) LLC, Nomura, Bank of America Merrill Lynch, BNP Paribas Securities Corp. and Ares are leading the deal that will be used to help fund the buyout of the company by an investor group led by Hellman & Friedman for $331.50 per share in cash, representing an aggregate value of about $11 billion.

Other funds for the buyout will come from a $900 million privately placed second-lien term loan that was committed by Ares and GSO and up to $8,133,000,000 of equity.

Closing is expected mid-year, subject to stockholder and regulatory approvals and other customary conditions.

Ultimate Software is a Weston, Fla.-based provider of human capital management solutions in the cloud.

Trade Me readies loan

Trade Me Group scheduled a bank meeting for 12:30 p.m. ET in New York on Thursday to launch a $575 million seven-year covenant-lite first-lien term loan that has 101 soft call protection for six months, according to a market source.

Commitments are due at 5 p.m. ET on April 11, the source said.

Credit Suisse Securities (USA), Nomura, UBS Investment Bank, Macquarie Capital (USA) Inc. and Jefferies are leading the deal, which will be used a NZ$320 million privately placed second-lien loan to help fund the buyout of the company by Apax Partners for NZ$6.45 per share.

Closing is expected in the second quarter, subject to shareholder and court approval.

Trade Me is an operator of online classified marketplaces for motor vehicles, property and jobs in New Zealand.

MW joins calendar

MW Industries will hold a lender call at 10 a.m. ET on Thursday to launch a $50 million incremental first-lien term loan, a market source said.

RBC Capital Markets is leading the deal that will be used to fund an acquisition.

Currently the company has a $484 million first-lien term loan priced at Libor plus 350 bps and a $120 million second-lien term loan priced at Libor plus 800 bps.

MW Industries is a Rosemont, Ind.-based designer and manufacturer of springs and other specialty engineered metal components for diverse end markets.

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