Air Medical, Acadia free to trade; Caesars Entertainment Resort revises loan pricing

By Sara Rosenberg

New York, May 5 – Air Medical Group Holdings Inc. firmed the spread on its add-on term loan at the wide side of revised talk and the original issue discount at the tight end of talk, and Acadia Healthcare Co. Inc. set pricing on its term loans at the high end of guidance, and then both of these deals broke for trading on Friday.

In other happenings, Caesars Entertainment Resort Properties LLC lowered pricing on its term loan, and Array Canada Inc. disclosed original issue discount talk on its add-on term loan.

Also, DiversiTech Holdings Inc., Focus Financial Partners, Hyster-Yale Materials Handling Inc., ClubCorp Club Operations Inc., Mister Car Wash and Four Seasons Hotels and Resorts joined the near-term primary calendar.

Air Medical updated

Air Medical Group set pricing on its $750 million add-on covenant-light first-lien term loan B (B3) due April 28, 2022 at Libor plus 400 basis points, the wide end of revised talk of Libor plus 375 bps to 400 bps and up from initial talk of Libor plus 350 bps, according to a market source.

In addition, the original issue discount on the add-on term loan firmed at 99.5, the tight end of revised talk of 99.03 to 99.5 and initial talk of 99 to 99.5, the source said.

The add-on term loan, which is fungible with the company’s roughly $190 million term loan B-1, still has a 1% Libor floor and 101 soft call protection for six months (that will also apply to the existing term loan B-1).

Closing is expected during the week of May 29.

Air Medical breaks

With final terms in place, Air Medical’s add-on term loan emerged in the secondary market on Friday afternoon, and levels were quoted at 99¾ bid, par offered, a trader added.

Morgan Stanley Senior Funding Inc., KKR Capital Markets LLC, Jefferies Finance LLC, Nomura Securities International Inc. and Wells Fargo Securities LLC are leading the deal that will be used to fund the acquisition of Air Medical Resource Group, a South Jordan, Utah-based provider of air medical services, management and experience in the air medical industry.

Air Medical is a Lewisville, Texas-based provider of air ambulance services.

Acadia firms, trades

Acadia Healthcare finalized pricing on its roughly $489 million term loan B-1 and $943 million term loan B-2 at Libor plus 275 bps, the wide end of the Libor plus 250 bps to 275 bps talk, a market source said.

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

By late day, the term loans began trading, with levels quoted at par ¼ bid, par 5/8 offered, a trader added.

Bank of America Merrill Lynch is leading the deal that will be used to reprice an existing term loan down from Libor plus 300 bps with a 0.75% Libor floor.

Acadia is a Franklin, Tenn.-based provider of inpatient and outpatient behavioral health care services.

Caesars cuts spread

Caesars Entertainment Resort Properties trimmed pricing on its $2,419,000,000 senior secured first-lien term loan (B1/CCC+) due October 2020 to Libor plus 350 bps from talk of Libor plus 375 bps to 400 bps, and left the 1% Libor floor, par issue price and 101 soft call protection for six months unchanged, according to a market source.

Recommitments were due at 5 p.m. ET on Friday, the source said.

Citigroup Global Markets Inc. is leading the deal that will be used to reprice an existing term loan from Libor plus 600 bps with a 1% Libor floor.

Caesars Entertainment Resort, a wholly owned subsidiary of Caesars Entertainment Corp., is a Las Vegas-based owner of casinos.

Array reveals OID

Array Canada held its lender call on Friday, launching its fungible $40 million add-on term loan with original issue discount talk of 99, according to a market source.

The loan is priced at Libor plus 500 bps with a 1% Libor floor.

UBS Investment Bank is leading the deal that will be used for acquisition financing.

Array is a Toronto-based provider of retail merchandising displays and store fixtures to the cosmetics industry.

DiversiTech timing emerges

In more loan news, DiversiTech set a bank meeting for 10:30 a.m. ET in New York on Tuesday to launch its previously announced $495 million in senior secured credit facilities, a market source said.

When first announced, the deal was expected as second week of May business, but a specific date had been unavailable.

The facilities include a $50 million five-year revolver, a $325 million seven-year first-lien term loan and a $120 million eight-year second-lien term loan.

RBC Capital Markets LLC, Barclays, Deutsche Bank Securities Inc. and SG Americas Securities LLC are leading the deal, with RBC left lead on the first-lien debt and Barclays left lead on the second-lien debt.

Proceeds will be used to help fund the buyout of the company by Permira Funds from The Jordan Co. LP, which is expected to close this quarter, subject to customary regulatory approvals and conditions.

DiversiTech is a Duluth, Ga.-based manufacturer of components and products related to the heating, ventilating, air conditioning and refrigeration industry.

Focus coming soon

Focus Financial Partners scheduled a lender meeting for 10 a.m. ET on Tuesday to launch a $755 million first-lien term loan, a market source remarked.

RBC Capital Markets and SunTrust Robinson Humphrey are leading the deal that will be used to help fund the acquisition of a majority stake in the company by an investor group led by Stone Point Capital and KKR from Centerbridge Partners, Summit Partners and Polaris Partners.

The transaction values the company at about $2 billion.

A second-lien term loan for acquisition has been privately placed, the source added.

Focus Financial is a New York-based partnership of independent, fiduciary wealth-management firms.

Hyster-Yale on deck

Hyster-Yale Materials Handling will hold a lender meeting on Monday to launch a $200 million term loan B (B1/BB) that is talked at Libor plus 425 bps to 450 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

Commitments are due on May 18, the source said.

Bank of America Merrill Lynch is leading the deal that will be used to repay borrowings under the company’s secured credit facility, to fund any future acquisitions and strategic investments, and for general corporate purposes.

Closing is expected within the next four to six weeks.

Hyster-Yale is a Cleveland-based designer, engineer, manufacturer, seller and servicer of electric, warehousing and internal combustion engine lift trucks and aftermarket parts.

ClubCorp readies deal

ClubCorp scheduled a call for 11 a.m. ET on Monday to launch a new loan transaction to existing and prospective lenders, a market source said.

Citigroup Global Markets Inc. is leading the deal.

ClubCorp is a Dallas-based owner and operator of private golf and country clubs and business, sports and alumni clubs.

Mister Car plans loan

Mister Car Wash plans to host a lender call on Monday to launch a $40 million incremental term loan, according to a market source.

Jefferies LLC is leading the deal that will be used for general corporate purposes and to pay down revolver borrowings.

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

Four Seasons joins calendar

Four Seasons Hotels and Resorts set a call for 1 p.m. ET on Monday for existing and prospective lenders to launch a new loan deal, a market source remarked.

Citigroup Global Markets Inc. is leading the transaction.

Four Seasons is a Toronto-based luxury hotels company.

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