Vertiv, Matador, LifePoint, APX/Vivint, Block, Kymera break, Floor & Decor cuts pricing

By Sara Rosenberg

New York, Feb. 11 – Vertiv Group Corp. firmed the spread on its term loan B at the low end of guidance and Matador Bidco set the issue price on its incremental term loan B at the tight end of revised talk, and then both of these deals freed to trade on Tuesday.

Also, LifePoint Health Inc. tightened the issue price on its incremental term loan B, and APX/Vivint revised its term loan size again, firmed the spread at the high end of revised talk and finalized the original issue discount at the tight side of revised guidance, before breaking for trading.

Furthermore, Block Communications Inc. set pricing on its term loan B at the low end of guidance and the made its way into the secondary market during the session, and Kymera International’s incremental first-lien began trading as well.

In more happenings, Floor & Decor lowered the spread on its first-lien term loan, and Informatica LLC and ACProducts Inc. accelerated the commitment deadlines for their loan transactions.

Additionally, American Express Global Business Travel, Innovative XCessories & Services LLC, Circor International Inc., Sabre Industries, PetVet Care Centers LLC and Aptean disclosed price talk with launch, and NorthRiver Midstream (Grizzly) surfaced with new deal plans.

Vertiv updated, trades

Vertiv set pricing on its $2.2 billion seven-year covenant-lite term loan B (B1/B+) at Libor plus 300 basis points, the low end of the Libor plus 300 bps to 325 bps talk, and left the 0% Libor floor, original issue discount of 99.5 and 101 soft call protection for six months unchanged, according to a market source.

On Tuesday, the term loan B surfaced in the secondary market and levels were quoted at 99 7/8 bid, par 3/8 offered, another source added.

Citigroup Global Markets Inc., J.P. Morgan Securities LLC, BofA Securities, Inc. and Goldman Sachs Bank USA are leading the deal that will be used to refinance the remaining capital structure following closing of the company’s merger with GS Acquisition Holdings Corp., a special purpose acquisition company.

The merger closed on Feb. 7, and the term loan is expected to close on March 2.

Vertiv is a Columbus, Ohio-based provider of critical digital infrastructure and continuity solutions.

Matador sets price

Matador Bidco finalized the issue price on its fungible $200 million incremental term loan B (BB-/BB) due October 2026 at par, the tight end of revised talk of 99.75 to par and tight of initial talk of 99.5, a market source said.

The incremental term loan is priced at Libor plus 475 bps with a 0% Libor floor, in line with the existing term loan B, and has a ticking fee of half the spread from days 46 to 90 and the full spread onwards.

Funding is expected in mid-May.

Including the incremental loan, the term loan B will total $825 million.

HSBC Securities (USA) Inc. is the physical bookrunner on the deal that will be used to fund a portion of a pre-agreed deferred purchase price to Mubadala. TCG, BNP Paribas Securities Corp., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., RBC Capital Markets, Santander and Intesa are also bookrunners.

Matador frees up

Matador’s incremental term loan broke for trading in the morning, with levels quoted at par ¼ bid, par 5/8 offered, another source added.

In connection with this transaction, the company sought an amendment to its credit agreement to revise the debt incurrence and restricted payment provisions, and offered lenders a 5 bps amendment fee.

Matador, a Carlyle portfolio company, is a holding company that is a 38.5% shareholder in Cepsa, a privately held integrated energy company in Europe.

LifePoint tweaked, breaks

LifePoint Health in the morning changed issue price talk on its fungible $600 million incremental senior secured term loan B (B1/B+) due November 2025 to a range of par to 100.25 from talk in the range of 99.5 to 99.75, and finalized the price at 100.25 in the afternoon, according to a market source.

The incremental term loan B is priced at Libor plus 375 bps with a 0% Libor floor, in line with the existing term loan B.

Late in the day, the incremental term loan began trading and levels were quoted at par 3/8 bid, par ¾ offered, another source added.

Citigroup Global Markets Inc., Barclays, RBC Capital Markets, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc. and Apollo Global Securities are leading the deal that will be used with $600 million of senior secured notes to retire $800 million of 8¼% senior secured notes due 2023 and $350 million of 11½% senior notes due 2024.

Closing is expected on Feb. 24.

LifePoint is a Brentwood, Tenn.-based health care provider.

APX/Vivint reworked, trades

APX/Vivint raised its term loan due June 2025 to $950 million from a revised amount of $900 million, but the deal is smaller than its initial launch size of $1.325 billion, firmed pricing at Libor plus 500 bps, the high end of revised talk of Libor plus 475 bps to 500 bps and wide of initial talk of Libor plus 450 bps, and set the original issue discount at 99.5, the tight end of revised talk of 99 to 99.5 but in line with initial talk of 99.5, a market source said.

The term loan has 101 soft call protection for one year, which was extended from six months earlier in syndication.

On Tuesday, the term loan freed up, with levels quoted at 99¾ bid, par ¼ offered, a trader added.

BofA Securities, Inc. and Credit Suisse Securities (USA) LLC are leading the deal that will be used with $600 million of senior secured notes to extend an existing $800 million term loan B, to help repay notes and revolver borrowings, and to add cash to the balance sheet.

APX/Vivint is a Provo, Utah-based smart home services provider.

Block sets spread, frees up

Block Communications finalized pricing on its $175 million seven-year term loan B (Ba1/BB+) at Libor plus 225 bps, the low end of the Libor plus 225 bps to 250 bps talk, according to a market source.

As before, the term loan has an original issue discount of 99.5.

The term loan hit the secondary market during the session, with levels quoted at par bid, par ¾ offered, a trader said.

BofA Securities, Inc. is leading the deal that will be used with $300 million of senior notes and cash on hand to redeem 6 7/8% notes due 2025.

Block Communications is a Toledo, Ohio-based diversified media company.

Kymera hits secondary

Kymera International’s fungible $185 million incremental first-lien term loan (B2/B) due October 2025 began trading too, with levels quoted at 99¾ bid, par ¾ offered, according to a trader.

Pricing on the incremental term loan is Libor plus 550 bps with a 0% Libor floor and it was sold at an original issue discount of 99. The debt has 101 soft call protection for six months.

During syndication, the incremental term loan was upsized from $165 million, pricing was reduced from Libor plus 600 bps, the discount firmed at the tight end of the 98 to 99 talk and the call protection was shortened from one year. As a result of the pricing flex, the company cancelled plans to increase pricing on its existing first-lien term loan from Libor plus 550 bps.

Kymera funding acquisitions

Kymera will use the incremental term loan to finance the purchase of Reading Alloys, and the extra funds raised from the recent upsizing will be used to add cash to the balance sheet for permitted acquisitions and investments and are prohibited from being used in any restricted payments.

Goldman Sachs Bank USA, HSBC Securities (USA) Inc., KeyBanc Capital Markets and M&T Bank are leading the deal.

Closing is expected during the week of March 16.

Kymera is a Research Triangle Park, N.C.-based specialty materials company focused on the copper and aluminum metal powder industry.

Floor & Decor revised

Back in the primary market, Floor & Decor trimmed pricing on its $144.6 million seven-year first-lien term loan to Libor plus 200 bps with a step-up to Libor plus 225 bps when leverage is greater than 2x from Libor plus 225 bps with a step-up to Libor plus 250 bps at 2x leverage, a market source remarked.

The term loan still has a 1% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months.

Recommitments were due at 5 p.m. ET on Tuesday, the source added.

UBS Investment Bank, BofA Securities, Inc. and Wells Fargo Securities LLC are leading the deal that will be used to amend and extend an existing term loan.

Floor & Decor is an Atlanta-based specialty retailer in the hard surface flooring market.

Informatica accelerated

Informatica moved up the commitment deadline for its $2.875 billion equivalent of credit facilities to noon ET on Thursday from noon ET on Feb. 19, a market source said.

The facilities consist of a $150 million revolver (B1/B-) due April 2024 talked at Libor plus 325 bps with a step-down to Libor plus 300 bps if first-lien net leverage is less than or equal to 4.5x and a 0% Libor floor, a $1.725 billion seven-year covenant-lite first-lien term loan B (B1/B-) and a $525 million euro equivalent seven-year covenant-lite first-lien term loan B (B1/B-) talked at Libor/Euribor plus 350 bps with a 0% floor and an original issue discount of 99.5, and a $475 million five-year covenant-lite second-lien term loan (Caa1/CCC+) talked at a fixed rate of 7.5% with an original issue discount of 99.

The first-lien term loans have 101 soft call protection for six months and a springing maturity, and the second-lien term loan is non-callable for one year, then at 102 in year two and 101 in year three.

Nomura is leading the deal that will be used to refinance existing term loans and senior notes, to raise cash for general corporate purposes and to pay related fees and expenses.

Informatica is a Redwood City, Calif.-based provider of enterprise cloud data management software and services.

ACProducts moves deadline

ACProducts accelerated the commitment deadline for its $1.075 billion term loan (B2/B) to 5 p.m. ET on Thursday from Feb. 18, a market source remarked.

Talk on the term loan is Libor plus 650 bps with a 0% Libor floor, an original issue discount of 99 to 99.5 and hard call protection of 103 in year one, 102 in year two and 101 in year three.

KKR Capital Markets is leading the deal that will be used to help fund the acquisition of Masco Cabinetry from Masco Corp. for $1 billion, consisting of $850 million in cash at closing and preferred stock issued by a holding company of the buyer with a liquidation preference of $150 million.

Closing is expected this quarter, subject to customary conditions and regulatory review.

ACProducts, owned by American Industrial Partners, is a Colony, Tex.-based manufacturer of cabinetry products.

American Express guidance

American Express Global Business Travel held its bank meeting on Tuesday and announced price talk on its $1.22 seven-year covenant-lite first-lien term loan at Libor plus 350 bps with a 0% Libor floor and an original issue discount of 99.5, according to a market source.

The term loan, which is split between a $615 million funded tranche and a $605 million delayed-draw tranche, has 101 soft call protection for six months and a delayed-draw ticking fee of half the spread from days 46 to 90 and the full spread onwards.

The company’s $1.37 billion of credit facilities (B2/B+) also include a $150 million revolver.

Commitments are due at 5 p.m. ET on Feb. 26.

Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc., Goldman Sachs Bank USA, UBS Investment Bank, BofA Securities, Inc. and Kookmin are leading the deal that will be used to fund a shareholder distribution and for acquisition financing.

American Express Global Business Travel is a travel management company.

Innovative XCessories launches

Innovative XCessories & Services launched with a bank meeting its $620 million seven-year term loan at talk of Libor plus 500 bps to 525 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

The company’s $695 million of credit facilities also include a $75 million asset-based revolver.

Commitments are due on Feb. 26, the source said.

UBS Investment Bank and Jefferies LLC are leading the deal that will be used to help fund the buyout of the company by Clearlake Capital Group LP from Olympus Partners.

Closing is expected this quarter.

Innovative XCessories is a Windsor, Ont.-based provider of coating solutions and vehicle upfit services to the automotive aftermarket and diversified industrial end markets.

Circor reveals talk

Circor International came out with talk of Libor plus 275 bps to 300 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months on its $492 million term loan B that launched with a morning call, a market source remarked.

Commitments are due on Feb. 19, the source added.

Citizens Bank is leading the deal, which will be used to reprice an existing term loan B down from Libor plus 350 bps with a 1% Libor floor. Deutsche Bank Securities Inc. is the administrative agent.

Circor is a Burlington, Mass.-based designer, manufacturer and marketer of highly engineered products and sub-systems for markets including oil & gas, power generation and aerospace & defense.

Sabre proposed terms

Sabre Industries held its call in the afternoon, launching its $413 million term loan B due April 2026 at talk of Libor plus 350 bps with a 0% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Commitments and consents are due at noon ET on Feb. 19, the source said.

Goldman Sachs Bank USA is the left lead on the deal that will be used to reprice an existing term loan B down from Libor plus 425 bps.

With the repricing, the term loan is being paid down by $30 million via balance sheet cash to $413 million.

Sabre is an Alvarado, Tex.-based provider of highly engineered infrastructure products and services to the utility and telecom markets.

PetVet seeks incremental loan

PetVet Care Centers launched in the morning a fungible $75 million incremental first-lien term loan due February 2025 with original issue discount talk of 98.8, a market source said.

Like the existing first-lien term loan, the incremental term loan is priced at Libor plus 325 bps with a 0% Libor floor.

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

Jefferies LLC and KKR Capital Markets are leading the deal that will be used to add cash to the balance sheet for near-term acquisitions under letters of intent and other future opportunities.

Including the incremental loan, the first-lien term loan will total around $322.2 million.

PetVet is a Westport, Conn.-based acquirer and operator of general practice and specialty veterinary hospitals for companion animals.

Aptean details emerge

Aptean held its lender call and launched a fungible $75 million incremental first-lien term loan (B2/B-) with original issue discount talk of 99.75 to par, according to a market source.

The incremental term loan is priced at Libor plus 425 bps with a 0% Libor floor and has 101 soft call protection through March, all in line with the existing first-lien term loan.

Commitments are due on Feb. 19, the source said.

Golub Capital is leading the deal that will be used to fund an acquisition.

Pro forma for the transaction, the first-lien term loan will total $582.3 million.

Aptean is an Alpharetta, Ga.-based provider of mission-critical, industry-specific enterprise software solutions.

NorthRiver on deck

NorthRiver Midstream surfaced with plans to hold a call at 2 p.m. ET on Wednesday to launch a new loan to existing and prospective lenders, a market remarked.

Citigroup Global Markets Inc. is the left lead on the deal.

NorthRiver Midstream is a Canadian gas gathering and processing business with operations across prolific gas and oil resource.

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