Asplundh, Tosca Services, Bombardier break; Adtalem, Internet Brands, Dell changes surface

By Sara Rosenberg

New York, Feb. 11 – Asplundh Tree Expert LLC set the spread on its term loan B at the low end of guidance and Tosca Services LLC firmed pricing on its first-lien term loan at the tight side of talk, and then both of these deals made their way into the secondary market on Thursday.

Also, Bombardier Recreational Products Inc. adjusted the original issue discount on its add-on term loan B-1 before freeing up for trading.

In more happenings, Adtalem Global Education Inc. widened the spread and issue price on its term loan B, and Internet Brands increased the size of its incremental first-lien term loan and revised original issue discount guidance on its second-lien term loan.

Furthermore, Dell Technologies Inc. trimmed the Libor floor on its first-lien term loan, and Infinite Electronics (Infinite Bidco LLC), RealPage Inc. and Arclin released price talk with launch.

Asplundh updated, trades

Asplundh Tree Expert firmed pricing on its $1.995 billion covenant-lite term loan B due 2027 at Libor plus 175 basis points, the low end of the Libor plus 175 bps to 200 bps talk, according to a market source.

As before, the term loan has a 0% Libor floor, a par issue price and 101 soft call protection for six months.

Commitments continued to be due at noon ET on Thursday and the term loan freed to trade late in the day, with levels quoted at par 1/8 bid, par 3/8 offered, another source added.

Wells Fargo Securities LLC is the left lead on the deal that will be used to reprice an existing term loan B, which priced last year at Libor plus 250 bps with a step-down to Libor plus 225 bps when first-lien net leverage is less than 2x and a 0% Libor floor.

Asplundh is a Pennsylvania-based provider of vegetation management services.

Tosca sets spread, breaks

Tosca Services finalized pricing on its $526.5 million first-lien term loan (B2/B) due August 2027 at Libor plus 350 bps, the narrow end of the Libor plus 350 bps to 375 bps talk, a market source said.

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

During the session, the term loan broke for trading, with levels quoted at par ¼ bid, par 5/8 offered, another source added.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., UBS Investment Bank, Goldman Sachs Bank USA, Rabobank, KKR Capital Markets and Mizuho are leading the deal that will be used to reprice an existing term loan, which priced last year at Libor plus 425 bps with a 25 bps step-down and a 1% Libor floor.

Tosca is an Atlanta-based provider of reusable packaging supply chain solutions.

Bombardier revised, frees up

Bombardier Recreational Products modified the original issue discount on its fungible $300 million add-on term loan B-1 (Ba3/BB-) due May 23, 2027 to 99.25 from talk in the range of 98.75 to 99, according to a market source.

Like the existing roughly $1.2 billion term loan B-1, the add-on term loan is priced at Libor plus 200 bps with a 0% Libor floor.

Late in the day, the add-on term loan B-1 hit the secondary market, with levels quoted at 99 3/8 bid, 99 5/8 offered, a trader added.

RBC Capital Markets, Citigroup Global Markets Inc., BMO Capital Markets and TD Securities (USA) LLC are leading the deal that will be used with cash on hand to repay an existing roughly $600 million term loan B-2 and fees and expenses associated with the transaction.

Bombardier is a Valcourt, Quebec-based designer, manufacturer, distributor and marketer of powersports vehicles and marine products.

Adtalem flexes up

Adtalem Global Education lifted pricing on its $1 billion seven-year covenant-lite term loan B to Libor plus 450 bps from talk of Libor plus 350 bps to 375 bps and moved the original issue discount to 99 from 99.5, a market source remarked.

The term loan still has a 0.75% Libor floor and 101 soft call protection for six months.

The company’s $1.4 billion of senior secured credit facilities (B1/BB-) also include a $400 million five-year revolver.

Commitments are due at 11 a.m. ET on Friday, the source added.

Morgan Stanley Senior Funding Inc., Barclays, Credit Suisse Securities (USA) LLC, MUFG and Fifth Third are leading the deal that will be used with cash on the balance sheet and $650 million of secured notes to fund the acquisition of Walden University, an online health care education provider, from Laureate Education Inc. for $1.48 billion and refinance Adtalem’s existing credit agreement.

Closing is expected in the first quarter of fiscal year 2022, subject to regulatory approvals.

Adtalem is a Chicago-based workforce solutions provider.

Internet tweaked

Internet Brands lifted its fungible incremental covenant-lite first-lien term loan due September 2024 to $450 million from $300 million and set the commitment deadline at 4:30 p.m. ET on Thursday, accelerated from 5 p.m. ET on Thursday, market sources said.

Also, the company modified original issue discount talk on its $575 million eight-year second-lien term loan (Caa2) to a range of 99.5 to 99.75 from just 99.5 and moved up the commitment deadline to 10 a.m. ET on Friday from 5 p.m. ET on Wednesday, sources continued.

As before, pricing on the incremental first-lien term loan is Libor plus 375 bps with a 1% Libor floor and a par issue price, and the debt has 101 soft call protection through June 18, 2021.

The second-lien term loan is still priced at Libor plus 625 bps with a 0% Libor floor and has hard call protection of 102 in year one and 101 in year two.

Internet leads

Credit Suisse Securities (USA) LLC, RBC Capital Markets and KKR Capital Markets are leading Internet Brands’ term loans, with Credit Suisse the left lead on the incremental first-lien term loan and RBC the left lead on the second-lien term loan.

The incremental first-lien term loan will be used to fund tuck-in acquisitions and for general corporate purposes, and the second-lien term loan will be used to refinance existing debt.

Internet Brands is an El Segundo, Calif.-based online media and software services organization.

Dell cuts floor

Dell Technologies lowered the Libor floor on its $3.143 billion covenant-lite first-lien term loan (Baa3/BBB-/BBB-) due September 2025 to 0.25% from 0.5%, a market source remarked.

The term loan is still priced at Libor plus 175 bps with a par issue price and has 101 soft call protection for six months.

Commitments continued to due at 5 p.m. ET on Thursday, the source added.

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to reprice an existing term loan down from Libor plus 200 bps with a 0.75% Libor floor.

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

Infinite guidance

Infinite Electronics held its lender call on Thursday and announced price talk on its $640 million seven-year first-lien term loan and $240 million eight-year second-lien term loan, according to a market source.

Talk on the first-lien term loan is Libor plus 375 bps with two leveraged based step-downs and an additional step-down following an initial public offering, a 0.75% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, the source said.

The second-lien term loan is talked at Libor plus 725 bps to 750 bps with a 0.75% Libor floor, a discount of 99 and hard call protection of 102 in year one and 101 in year two.

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

The company’s $1.055 billion of senior secured credit facilities also include a $100 million five-year revolver, a $55 million privately placed first-lien delayed-draw term loan and a $20 million privately placed second-lien delayed-draw term loan.

Infinite funding buyout

Infinite Electronics will use its new credit facilities to help fund its acquisition by funds affiliated with Warburg Pincus and to pay related fees and expenses.

Jefferies LLC, Antares Capital, RBC Capital Markets, Wells Fargo Securities LLC, Golub Capital and TD Securities (USA) LLC are leading the deal.

Infinite Electronics is an Irvine, Calif.-based supplier of electronic components serving the needs of engineers.

RealPage proposed terms

RealPage came out with talk of Libor plus 350 bps to 375 bps with a 0.75% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months on its $2.75 billion seven-year first-lien term loan B (B) that launched with a call in the afternoon, a market source remarked.

The first-lien term loan has ticking fees of half the margin from days 61 to 90 and the full margin thereafter.

Commitments are due at 5 p.m. ET on Feb. 18, the source added.

The company is also getting a $1 billion second-lien term loan that has been privately placed, and, according to the commitment letter, a $250 million revolver (B) as well.

Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC, UBS Investment Bank, Apollo, Barclays, BMO Capital Markets, Deutsche Bank Securities Inc., KKR Capital Markets, Nomura Securities International Inc., RBC Capital Markets, TB Credit, Truist Securities Inc., Wells Fargo Securities LLC and Stone Point are leading the deal.

RealPage being acquired

RealPage will use its new credit facilities and $7.36 billion of equity to fund its buyout by Thoma Bravo for $88.75 in cash per share. The transaction is valued at $10.2 billion, including net debt.

Closing is expected in the second quarter, subject to customary conditions, including RealPage shareholder approval, expiration or early termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, and receipt of other required regulatory approvals.

RealPage is a Richardson, Tex.-based provider of software and data analytics to the real estate industry.

Arclin holds call

Arclin surfaced in the morning with plans to hold a lender call at 2 p.m. ET to launch a $692 million covenant-lite first-lien term loan (B2/B) due February 2026 talked at Libor plus 375 bps to 400 bps with a 1% Libor floor, an original issue discount of 99.51 and 101 soft call protection for six months, according to a market source.

Commitments are due at 5 p.m. ET on Feb. 18, the 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.

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