Dealer Tire, XO Management free to trade; Bojangles’, Par Pacific pricing guidance emerges

By Sara Rosenberg

New York, Dec. 4 – Dealer Tire LLC and XO Management Holding (Xojet) set the original issue discounts on their term loans at the tight end of revised talk but wide of initial talk, and then both deals made their way into the secondary market on Tuesday above their issue prices.

In more happenings, Bojangles’ Inc. and Par Pacific released talk on their loan transactions, Quad/Graphics Inc. launched its term loan B to investors, and Western Dental Services and TricorBraun Holdings Inc. joined this week’s primary calendar.

Dealer Tire updated, breaks

Dealer Tire firmed the original issue discount on its $975 million seven-year covenant-light term loan B (B) at 95, the narrow side of revised talk of 94 to 95 but wide of talk at launch of 99, according to a market source.

The term loan is still priced at Libor plus 550 basis points with a 0% Libor floor and has 101 soft call protection for one year.

Previously in syndication, the spread on the loan was lifted from talk in the range of Libor plus 425 bps to 450 bps, the call protection was extended from six months, and revisions were made to, among other things, the incremental, MFN and excess cash flow sweep.

After pricing firmed, the loan began trading and levels were seen at 96 bid, 97 offered, a trader added.

J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC, PNC Bank, SunTrust Robinson Humphrey Inc. and US Bank are leading the deal that will be used to help fund the buyout of the company by Bain Capital Private Equity from Lindsay Goldberg LLC.

Closing is expected this month, subject to customary conditions, including regulatory approvals.

Dealer Tire is a Cleveland-based distributor of replacement tires and parts.

XO firms, frees up

XO Management Holding finalized the original issue discount on its $210 million three-year first-lien term loan B at 93, the tight end of revised talk of 91 to 93 but wide of initial talk of 99.5, a market source said.

Pricing on the term loan is Libor plus 575 bps with a 0% Libor floor, and it has 102 hard call protection for one year.

Earlier in syndication, the term loan was downsized from $280 million, pricing was flexed from Libor plus 475 bps, the call protection was modified from a 101 soft call for six months and the maturity was shortened from five years.

On Tuesday, the term loan hit the secondary market and was seen quoted at 93½ bid, the source added.

J.P. Morgan Securities LLC and Jefferies LLC are leading the deal that that will be used with equity to fund the buyout of the company by Vista Global.

Closing is expected this quarter, subject to customary conditions, including the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act.

XO is a Brisbane, Calif.-based on-demand private aviation platform.

Bojangles’ discloses talk

Bojangles’ held its bank meeting on Tuesday and announce price talk on its $300 million seven-year covenant-light first-lien term loan (B2/B) and $75 million eight-year covenant-light second-lien term loan (Caa2/CCC+), a market source remarked.

The first-lien term loan is talked at Libor plus 450 bps to 475 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, and the second-lien term loan is talked at Libor plus 850 bps with a 0% Libor floor, a discount of 98 and hard call protection of 102 in year one and 101 in year two, the source continued.

The company’s $425 million of credit facilities also include a $50 million revolver (B2/B).

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

Bojangles’ lead banks

Citigroup Global Markets Inc., KKR Capital Markets, KeyBanc Capital Markets and Fifth Third Bank are leading Bojangles’ credit facilities, with Citi the left lead on the first-lien and KKR the left lead on the second-lien. Citi is the administrative agent on the first-and second-lien debt.

The new debt will be used with up to $390 million in equity to fund the buyout of the company by Durational Capital Management LP and the Jordan Co. LP for $16.10 per share.

Closing is expected on Jan. 7.

Bojangles’ is a Charlotte, N.C.-based restaurant operator and franchisor.

Par Pacific guidance

Par Pacific came out with talk of Libor plus 575 bps to 600 bps with a 0% Libor floor, an original issue discount of 99 and hard call protection of 102 in year one and 101 in year two on its $250 million seven-year senior secured covenant-light term loan B that launched with an afternoon bank meeting, according to a market source.

Commitments are due at noon ET on Dec. 14, the source said.

Goldman Sachs Bank USA is the left lead on the deal, which will be used to help fund the acquisition of U.S. Oil & Refining Co. for $358 million plus net working capital.

Closing is expected in January.

Par Pacific is a Houston-based owner and operator of energy and infrastructure businesses.

Quad/Graphics holds call

Quad/Graphics hosted a lender call in the morning, launching a $700 million term loan B (B2/BB-) talked at Libor plus 425 bps to 450 bps with a 0% Libor floor and an original issue discount of 99, a market source said.

J.P. Morgan Securities LLC is leading the deal that will be used to help refinance Quad’s existing credit facility and LSC Communications Inc.’s outstanding debt in connection with Quad’s all-stock acquisition of LSC.

Under the agreement, LSC shareholders will receive 0.625 shares of Quad class A common stock for each LSC share they own. The transaction is valued at about $1.4 billion, including the refinancing of LSC’s debt.

Closing is expected in mid-2019, subject to approval by Quad and LSC Communications shareholders, regulatory approval and other customary closing conditions. The transaction is not contingent on financing.

Quad is a Sussex, Wis.-based marketing solutions provider. LSC is a Chicago-based print and digital media solutions provider.

Western Dental on deck

Western Dental Services set a lender call for 3 p.m. ET on Thursday to launch a fungible $145 million incremental term loan B, according to a market source.

Commitments are due at noon ET on Dec. 14, the source said.

RBC Capital Markets, Deutsche Bank Securities Inc. and BMO Capital Markets are leading the deal that will be used to fund the acquisition of Access Dental Services and South Texas Dental.

Western Dental, a portfolio company of New Mountain Capital, is an Orange, Calif.-based dental services organization.

TricorBraun readies loan

TricorBraun emerged with plans to hold a conference call on Thursday to launch a $67 million incremental term loan, a market source remarked.

Antares Capital is leading the deal that will be used to fund a planned acquisition and pay down revolver borrowings.

TricorBraun, an AEA Investors portfolio company, is a St. Louis-based provider of rigid packaging products.

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