Gogo, Savers, Pacific Dental, Priority, Logoplaste break; U.S. Renal tweaks timing

By Sara Rosenberg

New York, April 21 – Gogo Intermediate Holdings LLC lowered pricing on its first-lien term loan B, removed the step-down and set the original issue discount at the tight side of talk, and then the debt freed to trade on Wednesday.

Also, Savers Inc. firmed the spread on its first-lien term loan at the low end of guidance before breaking for trading, and deals from Pacific Dental Services LLC, Priority Technology Holdings Inc. (Priority Holdings LLC) and Logoplaste (Mar Bidco Sarl) hit the secondary market as well.

In other news, U.S. Renal Care Inc. accelerated the commitment deadline for its incremental term loan B, and Quikrete Holdings Inc. pulled its incremental term loan B from market, with plans to return for syndication at a later date.

Additionally, Mavis Tire Express Services TopCo LP, Consilio (Skipoma Merger Sub Inc.), PQ Performance Chemicals, Kissner (SCIH Salt Holdings Inc.) and Press Ganey (Azalea TopCo Inc.) announced price talk with launch, and Allied Universal and Idera Inc. joined this week’s primary calendar.

Gogo flexes, trades

Gogo trimmed pricing on its $725 million seven-year covenant-lite first-lien term loan B to Libor plus 375 basis points from talk in the range of Libor plus 400 bps to 425 bps, eliminated the step-down based on leverage and finalized the original issue discount at 99.5, the tight end of the 99 to 99.5 talk, according to a market source.

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

The company’s $825 million of senior secured credit facilities (B3/B-) also include a $100 million five-year revolver.

Recommitments were due at 2 p.m. ET on Wednesday and the term loan B started trading in the afternoon, with levels quoted at 99 5/8 bid, par 1/8 offered, a trader added.

Morgan Stanley Senior Funding Inc., Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. are leading the deal that will be used with cash on hand to repay 9 7/8% secured notes and to refinance and terminate an existing asset-based revolver.

Closing is expected on April 30.

Gogo is a Chicago-based provider of broadband connectivity services for the business aviation market.

Savers updated, breaks

Savers set pricing on its $600 million first-lien term loan (B2/B) at Libor plus 575 bps, the low end of the Libor plus 575 bps to 600 bps talk, a market source said.

As before, the term loan has a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

Recommitments were due at noon ET on Wednesday and the term loan emerged in the secondary market in the afternoon, with levels quoted at 99¾ bid, another source added.

KKR Capital Markets, Jefferies LLC and Credit Suisse Securities (USA) LLC are leading the deal that will be used to help fund the buyout of the company by Ares from Crescent Capital Group LP. Ares is a minority owner of the company but will gain full ownership with this transaction.

Closing is subject to customary conditions.

Savers is a Bellevue, Wash.-based thrift store chain.

Pacific Dental frees up

Pacific Dental Services’ $600 million seven-year term loan B broke for trading, with levels quoted at 99½ bid, according to a market source.

Pricing on the term loan is Libor plus 350 bps with a 0.75% Libor floor and it was sold at an original issue discount of 99.25. The debt has 101 soft call protection for six months.

During syndication, pricing on the term loan was cut from Libor plus 375 bps and the discount was revised from 99.

The company’s $850 million of credit facilities (B1/B) also include a $250 million revolver.

BNP Paribas Securities Corp., BofA Securities Inc., JPMorgan Chase Bank, KeyBanc Capital Markets and MUFG are leading the deal that will be used to refinance existing bank debt and for general corporate purposes.

Pacific Dental is an Irvine, Calif.-based provider of management services to affiliate dental practices.

Priority hits secondary

Priority Technology’s $300 million six-year covenant-lite term loan B and $290 million delayed-draw term loan also freed up, with the strip of debt quoted at 98¼ bid, 99¼ offered, a market source said.

Pricing on the term loans is Libor plus 575 bps with a 1% Libor floor and they were sold at an original issue discount of 98. The term loan has 101 soft call protection for six months.

During syndication, the spread on the term loan debt was lifted from talk in the range of Libor plus 525 bps to 550 bps, the floor was increased from 0.75%, the discount widened from 99, the 12-month MFN sunset was removed and a requirement for quarterly conference calls was added.

The company’s $630 million of senior secured credit facilities (B2/B-) also include a $40 million five-year revolver.

Priority buying Finxera

Proceeds from Priority Technology’s credit facilities will be used with $250 million of perpetual senior preferred equity securities to fund the acquisition of Finxera Holdings Inc. for $425 million, of which $375 million is cash and $50 million is common stock, and to refinance existing debt.

Truist Securities Inc. is leading the debt.

Closing on the acquisition is expected in the third quarter, subject to regulatory approvals and other customary conditions. The term loan is expected to close in the second quarter.

Priority Technology is an Alpharetta, Ga.-based payments technology company. Finxera is a San Jose, Calif.-based operator of a BaaS platform that allows enterprises to incorporate banking and payment services into their applications.

Logoplaste starts trading

Logoplaste’s $303 million seven-year covenant-lite term loan B began trading too, with levels quoted at 99¾ bid, par ¾ offered, a market source remarked.

Pricing on the U.S. term loan is Libor plus 425 bps with a 0.5% Libor floor and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months.

During syndication, pricing on the U.S. term loan finalized at the low end of the Libor plus 425 bps to 450 bps talk.

The company is also getting a €440 million seven-year covenant-lite term loan B and an €80 million equivalent sterling pre-placed term loan.

Pricing on the euro term loan firmed on Wednesday at Euribor plus 375 bps, the low end of revised talk of Euribor plus 375 bps to 400 bps and down from initial talk in the range of Euribor plus 400 bps to 425 bps.

The euro term loan still has a 0% floor, an original issue discount of 99.5 and 101 soft call protection for six months.

Logoplaste lead banks

Goldman Sachs is the sole active bookrunner on Logoplaste’s U.S. loan. BNP Paribas and Goldman are the joint active bookrunners on the euro loan. Barclays, Credit Suisse, ING, Mizuho and Rabobank are passive bookrunners.

The new loans will be used to help fund Ontario Teachers’ Pension Plan Board’s acquisition of the Carlyle Group’s majority stake in the company, to refinance existing debt, for general corporate purposes and to pay transaction fees and expenses.

Current Logoplaste shareholders Filipe de Botton and Alexandre Relvas will retain their approximately 40% stake in the business.

Closing is subject to customary regulatory approvals.

Logoplaste is a Portugal-based designer and manufacturer of rigid plastic packaging solutions.

U.S. Renal accelerated

Back in the primary market, U.S. Renal Care moved up the commitment deadline for its non-fungible $150 million incremental term loan B (B-) due June 26, 2026 to 5 p.m. ET on Thursday from noon ET on Friday, according to a market source.

Talk on the incremental term loan is Libor plus 550 bps to 575 bps with a 1% Libor floor, an original issue discount of 98.5 and 101 soft call protection for one year.

Barclays is the left lead on the deal that will be used for general corporate purposes and to pay related fees and expenses.

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

Quikrete withdrawn

Quikrete shelved its $1.5 billion seven-year incremental covenant-lite term loan B for now, but intends to bring the deal back to market in the future as the acquisition it would help fund isn’t closing until the fourth quarter, a market source remarked.

The incremental term loan was talked at Libor plus 275 bps with a 0% Libor floor, an original issue discount of 99 to 99.5, 101 soft call protection for six months, and a ticking fee of half the margin from days 46 to 90 and the full margin plus Libor thereafter.

Wells Fargo Securities LLC is leading the deal that will be used to help fund the purchase of Forterra Inc. for $24.00 per share in an all-cash transaction valued at $2.74 billion, including outstanding debt.

Quikrete is an Atlanta-based buildings materials company. Forterra is an Irving, Tex.-based manufacturer of water and drainage infrastructure pipe and products.

Mavis guidance

Mavis Tire Express Services held it call on Wednesday morning and disclosed price talk on its $1.915 billion seven-year senior secured first-lien term loan at Libor plus 375 bps with a 0.75% Libor floor and an original issue discount of 99.5, according to a market source.

The term loan has 101 soft call protection for six months.

The company’s $2.115 billion of credit facilities (B-) also include a $200 million five-year revolver.

Commitments are due at noon ET on April 30, the source added.

Jefferies LLC, Apollo, Ares, BofA Securities Inc., KKR Capital Markets, Blackstone, Golub Capital and Stifel are leading the deal that will be used with $720 million of senior notes to help fund the buyout of the company by an investor group led by BayPine LP in partnership with TSG Consumer Partners LP. Golden Gate Capital, Mavis’ current lead financial partner, will retain a minority interest in the company.

Closing is expected this quarter.

Mavis is a Millwood, N.Y.-based tire retailer and automotive aftermarket service provider.

Consilio launches

Consilio launched on its afternoon call its $1.01 billion seven-year covenant-lite first-lien term loan (B2/B-) at talk of Libor plus 400 bps to 425 bps with a 0.5% Libor floor and an original issue discount of 99, a market source remarked.

The first-lien term loan has 101 soft call protection for six months.

Commitments are due at 5 p.m. ET on May 4, the source added.

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

Credit Suisse Securities (USA) LLC, Stone Point, BofA Securities Inc., KKR Capital Markets, Truist, Blackstone and Goldman Sachs Bank USA are leading the deal that will be used to help fund the acquisitions of Consilio from GI Partners and Xact Data Discovery from JLL Partners by Stone Point Capital LLC and Aquiline Capital Partners LLC, and merger of the two companies.

Closing is subject to customary conditions, including regulatory approval.

Consilio is a Washington, D.C.-based provider of eDiscovery, document review, risk management and legal consulting services. Xact Data is a Mission, Kan.-based provider of eDiscovery, data management and managed review services.

PQ proposed terms

PQ Performance Chemicals held its call in the morning, launching its $750 million seven-year first-lien term loan (B1/B+) at talk of Libor plus 375 bps to 400 bps with two 25 bps step-downs at 0.5x and 1x inside closing date first-lien net leverage, a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

The term loan has a ticking fee of half the margin from days 46 to 90 and the full margin thereafter.

Commitments are due at 5 p.m. ET on May 4, the source added.

Goldman Sachs Bank USA, Barclays, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., RBC Capital Markets, BMO Capital Markets, KeyBanc Capital Markets, Macquarie Capital (USA) Inc. and BNP Paribas Securities Corp. are leading the deal that will be used with equity to fund the buyout of the company by a partnership established by Koch Minerals & Trading LLC and Cerberus Capital Management LP from PQ Group Holdings Inc. for $1.1 billion.

Closing is expected this year.

PQ Performance Chemicals is a producer of sodium silicates, specialty silicas and zeolites.

Kissner repricing

Kissner launched in the morning a repricing of its roughly $893 million covenant-lite first-lien term loan B due March 2027 at talk of Libor plus 400 bps with a 0.75% Libor floor, an original issue discount of 99.5 to 99.75 and 101 soft call protection for six months, a market source said.

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

Morgan Stanley Senior Funding Inc. is the left lead on the deal.

The term loan is being repriced into and will be fungible with the company’s recently syndicated $900 million incremental covenant-lite first-lien term loan B (B3/B) due March 2027 that is priced at Libor plus 400 bps with a 0.75% Libor floor and was sold at a discount of 99.5. This tranche has 101 soft call protection for six months.

Proceeds from the incremental term loan will be used with notes and equity to fund the acquisition of K+S AG’s Americas salt business for $3.2 billion, refinance existing debt, and pay associated fees and expenses.

Closing on the incremental loan is expected during the week of April 26.

Kissner, a subsidiary of Stone Canyon Industries Holdings LLC, is an Overland Park, Kan.-based pure-play producer and supplier of salt.

Press Ganey talk

Press Ganey came out with original issue discount talk of 99 to 99.5 on its fungible $180 million incremental term loan B (B) due July 25, 2026 that launched with a call in the morning, a market source remarked.

Pricing on the incremental term loan is Libor plus 400 bps with a 0.75% Libor floor, in line with existing term loan pricing.

The incremental term loan has 101 soft call protection for six months.

Commitments are due at noon ET on April 28.

Barclays, Goldman Sachs Bank USA, BMO Capital Markets and Deutsche Bank Securities Inc. are leading the deal that will be used to help fund the acquisition of a health care analytics provider for the Payer vertical.

Press Ganey is a South Bend, Ind.-based provider of patient experience analytics and performance improvement solutions to health care organizations, delivered through a proprietary software suite.

Allied readies deal

Allied Universal set an investor call for 10 a.m. ET on Thursday to launch a $950 million seven-year covenant-lite first-lien term loan B and a €715.5 million seven-year covenant-lite first-lien term loan B, according to a market source.

Both term loans have 101 soft call protection for six months, the source said.

Commitments are due at 5 p.m. ET on May 4 for the U.S. loan and at noon ET on May 4 for the euro loan.

Credit Suisse, Morgan Stanley, Deutsche Bank, BNP Paribas, HSBC Securities, Mizuho, Societe Generale, ING Capital LLC, MUFG and Truist Securities are leading the deal that will be used to help fund the acquisition of G4S plc for 245 pence in cash per share. The transaction is valued at about £3.8 billion.

Warburg Pincus and CDPQ are the sponsors.

Allied Universal is a Santa Ana, Calif.-based provider of security services. G4S is a London-based security services company.

Idera joins calendar

Idera will hold a lender call at 11:30 a.m. ET on Thursday to launch a fungible incremental first-lien term loan due March 2028 and a fungible incremental second-lien term loan due March 2029, a market source said.

The incremental first-lien term loan has 101 soft call protection until September 2021 and the incremental second-lien term loan has 102 hard call protection until March 2022, the source added.

Jefferies LLC is leading the deal that will be used to fund an acquisition.

Idera is a Houston-based provider of database, application development and testing software.

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