Quikrete Holdings repriced loan, Tecta America incremental term loan free to trade

By Sara Rosenberg

New York, Aug. 18 – Quikrete Holdings Inc.’s term loan B-1 made its way into the secondary market on Friday, with the debt bid in line with its issue price.

In addition, Tecta America Corp.’s incremental term loan B broke for trading in the morning, with levels quoted above its original issue discount.

Quikrete hits secondary

Quikrete’s $1,678,750,000 covenant-lite term loan B-1 due March 18, 2029 broke for trading on Friday, with levels quoted at par bid, par ¼ offered, according to a market source.

Pricing on the term loan is SOFR+CSA plus 275 basis points with a 0% floor and it was issued at par. CSA is ARRC standard of 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate. The debt has 101 soft call protection for six months.

Wells Fargo Securities LLC is the left lead on the deal that will be used to reprice an existing term loan B-1 down from SOFR+ARRC CSA plus 300 bps.

Quikrete is an Atlanta-based packaged cement products company.

Tecta breaks

Tecta America’s non-fungible $210 million incremental covenant-lite term loan B due April 10, 2028 (B2/B) freed to trade too, with levels quoted at 98¾ bid, a market source remarked.

Pricing on the term loan is SOFR+CSA plus 425 bps with a 0.75% floor and it was sold at an original issue discount of 98.5. CSA is 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate. The debt has 101 soft call protection for six months.

During syndication, the incremental term loan was upsized from $200 million, pricing was lowered from SOFR plus 450 bps and the discount was tightened from 98.

Wells Fargo Securities LLC and RBC Capital Markets LLC are leading the deal that will be used to repay an existing second-lien term loan, to pre-fund acquisitions under letters of intent, to pay related fees and expenses, and, due to the recent upsizing, for general corporate purposes.

The incremental term loan is coterminous with the company’s existing $603 million term loan B.

Tecta is a Rosemont, Ill.-based provider of commercial roofing services.

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