Sabre, Divisions Maintenance, Hyster-Yale, ProAmpac, Torrid, Wastequip break, DT accelerated

By Sara Rosenberg

New York, May 21 – Sabre Industries Inc. lowered the spread on its first-lien term loan, removed a step-down, firmed the original issue discount at the wide end of guidance and extended the call protection before freeing up for trading on Friday.

Also, Divisions Maintenance Group (DMG) finalized pricing on its first-lien term loan B at the low end of talk, and Hyster-Yale Materials Handling Inc. set the spread and original issue discount on its first-lien term loan at the wide side of guidance, and then these deals broke as well.

Other deals to make their way into the secondary market on Friday included ProAmpac, Torrid LLC and Wastequip LLC (Patriot Container Corp.).

In more happenings, DT Midstream Inc. accelerated the commitment deadline for its term loan B, and HelpSystems announced plans for a first-lien term loan repricing.

Sabre tweaked, frees up

Sabre Industries trimmed pricing on its $875 million seven-year first-lien term loan (B1/B) to Libor plus 325 basis points from Libor plus 375 bps, eliminated a 25 bps step-down at 0.5x inside closing date first-lien net leverage, set the original issue discount at 99, the wide end of the 99 to 99.5 talk, and extended the 101 soft call protection to one year from six months, according to a market source.

As before, the first-lien term loan has a 0.5% Libor floor.

Recommitments were due at noon ET on Friday and the first-lien term loan broke for trading later in the day, with levels quoted at 99¼ bid, par offered, another source added.

The company is also getting a $345 million privately placed second-lien term loan.

Goldman Sachs Bank USA and Citigroup Global Markets Inc. are leading the deal that will be used to help fund the buyout of the company by Blackstone from The Jordan Co.

Closing is expected on June 1.

Sabre is an Alvarado, Tex.-based designer and manufacturer of overhead steel poles, towers, battery storage solutions, and related services for electrical utility and telecom end markets.

DMG updated, trades

Divisions Maintenance Group firmed the spread on its $365 million seven-year covenant-lite first-lien term loan B at Libor plus 475 bps, the low end of the Libor plus 475 bps to 500 bps talk, a market source remarked.

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

The company’s $405 million of senior secured credit facilities (B3/B) also include a $40 million five-year revolver.

On Friday, the term loan B began trading, with levels quoted at 99¼ bid, 99¾ offered, a trader added.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to refinance the company’s existing debt and fund a shareholder distribution.

Closing is expected during the week of May 24, the source added.

Divisions Maintenance is a Newport, Ky.-based facilities maintenance company.

Hyster-Yale firms, breaks

Hyster-Yale Materials set pricing on its $225 million seven-year first-lien term loan (B1) at Libor plus 350 bps, the high end of the Libor plus 325 bps to 350 bps, and firmed the original issue discount at 99, the wide end of the 99 to 99.5 talk, according to a market source.

The term loan still has a 0.5% Libor floor.

During the session, the term loan made its way into the secondary market, with levels quoted at 99¼ bid, another source added.

BofA Securities Inc. is leading the deal that will be used to refinance existing bank debt and for general corporate purposes.

Hyster-Yale is a Cleveland-based manufacturer of lift trucks and aftermarket parts.

ProAmpac hits secondary

ProAmpac’s $1.8 billion term loan due November 2024 also freed to trade during the session, with levels quoted at par bid, par ¼ offered, a trader said.

Pricing on the term loan is Libor plus 375 bps with a 0.75% Libor floor and it was sold at an original issue discount of 99.75. The debt has 101 soft call protection for six months.

During syndication, the discount on the term loan firmed at the wide end of the 99.75 to par talk.

Antares Capital is leading the deal that will be used to reprice an existing term loan down from Libor plus 400 bps with a 1% Libor floor.

ProAmpac, a Pritzker Private Capital portfolio company, is a Cincinnati-based manufacturer of flexible packaging and material science solutions.

Torrid tops OID

Torrid’s $350 million seven-year term loan (B2/B) started trading too, with levels quoted at 99¼ bid, 99¾ offered, according to a market source.

Pricing on the term loan is Libor plus 550 bps with a 0.75% Libor floor and it was sold at an original issue discount of 99. The debt has hard call protection of 102 in year one and 101 in year two.

BofA Securities Inc., Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc. and KKR Capital Markets are leading the deal that will be used to refinance existing debt and fund a dividend.

Torrid is a women’s retail chain.

Wastequip frees up

Wastequip’s fungible $65 million incremental term loan due March 20, 2025 broke as well, with levels quoted at 99 bid, 99½ offered, a market source remarked.

Pricing on the incremental term loan is Libor plus 375 bps with a 1% Libor floor and it was sold at an original issue discount of 99.27.

With this transaction, pricing on the existing term loan is being increased to Libor plus 375 bps from Libor plus 350 bps, and all of the first-lien term loan debt is getting 101 soft call protection for six months.

Barclays is leading the deal that will be used to fund an acquisition and repay revolver borrowings.

Closing is expected on Thursday.

Wastequip is a Charlotte, N.C.-based manufacturer of waste and recycling equipment.

DT Midstream accelerated

Back in the primary market, DT Midstream moved up the commitment deadline for its $1 billion seven-year senior secured term loan B (Baa2/BBB-/BBB-) to 5 p.m. ET on Monday from 5 p.m. ET on Tuesday, according to a market source.

Talk on the term loan is Libor plus 225 bps to 250 bps with a 0.5% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months.

Barclays, BofA Securities Inc., Citigroup Global Markets Inc., JPMorgan Chase Bank and Wells Fargo Securities LLC are the lead bookrunners on the deal. CoBank, Fifth Third, Mizuho, MUFG, PNC Capital Markets, Bank of Nova Scotia, TD Securities (USA) LLC, Truist and U.S. Bank are leading the deal.

Proceeds will be used with $2.1 billion of new unsecured debt to make a payment to DTE Energy and to pay related transaction costs, fees and expenses.

DT Midstream is a large-scale platform connecting supply basins to the natural gas demand markets.

HelpSystems repricing

HelpSystems launched a repricing of its $1,365,465,000 senior secured first-lien term loan (B2/B-) due November 2026, a market source remarked.

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

No lender call will be held for the transaction and price talk will be announced on Monday, the source added.

Consents and commitments are due at noon ET on Thursday.

Jefferies LLC is leading the deal.

Current first-lien term loan pricing is Libor plus 475 bps with a 1% Libor floor.

HelpSystems, a portfolio company of TA Associates, HGGC and Charlesbank, is an Eden Prairie, Minn.-based provider of IT operations management and monitoring, cybersecurity and business intelligence software.

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