Standard Industries, Bally’s, Generation Bridge, Evans, Sotheby’s free to trade, UDG revised

By Sara Rosenberg

New York, Aug. 6 – Standard Industries Inc. set the original issue discount on its first-lien term loan B at the tight end of revised guidance, and Bally’s Corp. firmed pricing on its term loan B at the high end of talk, adjusted the issue price and changed the ticking fee, and then these deals broke for trading on Friday.

Other deals to make their way into the secondary market during the session included Generation Bridge LLC, Evans Network of Cos. and Sotheby’s.

In more happenings, UDG Healthcare/Huntsworth moved some funds between its U.S. and euro term loans, updated spreads and firmed the original issue discount on the U.S. tranche, International SOS raised pricing on its term loan B, widened the issue price and extended the call protection, and Waystar moved up the commitment deadline for its add-on term loan.

Also, SeaWorld Parks & Entertainment Inc. and LendingTree released price talk with launch, and Centuri Group Inc., Wheel Pros Inc., Sylvamo Corp. and MultiPlan Inc. joined the near-term primary calendar.

Standard Industries updated

Standard Industries firmed the original issue discount on its $2.5 billion seven-year covenant-lite first-lien term loan B (Baa3/BBB-) at 99, the tight end of revised talk of 98.75 to 99 but wide of initial talk of 99.5, according to a market source.

In addition, MFN on the term loan was modified to 50 bps for six months from 75 bps and the MFN inside maturity carveout basket was removed, the source said.

As before, pricing on the term loan is Libor plus 250 basis points with a 0.5% Libor floor and the debt has 101 soft call protection for six months.

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

Previously in syndication, pricing on the term loan finalized at the high end of the Libor plus 225 bps to 250 bps talk and the Libor floor was increased from 0%.

Standard hits secondary

Recommitments for Standard Industries’ term loan were due at 10:30 a.m. ET on Friday and the debt freed to trade later on in the day, with levels quoted at 99½ bid, par offered, another source added.

Deutsche Bank Securities Inc., BNP Paribas Securities Corp., Citigroup Global Markets Inc. and JPMorgan Chase Bank are leading the deal that will fund a distribution to Standard Industries Holdings Inc., which will be used for the acquisition of W.R. Grace & Co. for $70.00 per share in cash. The transaction is valued at about $7 billion.

Closing on the acquisition is expected in the fourth quarter, subject to customary conditions, including approval by W.R. Grace shareholders and the receipt of regulatory approvals.

W.R. Grace will operate as a stand-alone company within the portfolio of Standard Industries Holdings.

Standard Industries is a New York-based manufacturer of roofing products. W.R. Grace is a Columbia, Md.-based specialty chemical company.

Bally’s modified, trades

Bally’s finalized pricing on its $1.945 billion seven-year covenant-lite term loan B (Ba2/BB-/BB) at Libor plus 325 bps, the high end of the Libor plus 300 bps to 325 bps talk, widened the original issue discount to 99 from 99.5, and changed the ticking fee to half the spread from days 31 to 60 and the full spread thereafter from half the margin from days 46 to 90 and the full margin thereafter, according to a market source.

The term loan still has a 0.5% Libor floor and 101 soft call protection for six months.

Earlier in syndication, the term loan was upsized from $1.445 billion as the company downsized its senior unsecured notes offering to $1.5 billion from $2 billion.

In the afternoon, the term loan started trading, with levels quoted at 99 3/8 bid, 99 7/8 offered, another source added.

Goldman Sachs Bank USA, Deutsche Bank Securities Inc., Barclays, Citizens Bank, Truist, Capital One and Fifth Third are leading the deal that will be used to help fund the acquisition of Gamesys Group plc, a London-based online gaming operator. Deutsche Bank is the administrative agent.

Bally’s is a Providence, R.I.-based casino-entertainment company.

Generation Bridge tops OID

Generation Bridge’s $480 million seven-year senior secured term loan B and $10 million seven-year senior secured term loan C broke for trading too, with levels quoted at 98¼ bid, 99¼ offered, a market source remarked.

Pricing on the term loans is Libor plus 500 bps with a 0.75% Libor floor and they were sold at an original issue discount of 98. The debt has 101 soft call protection for one year and a ticking fee of half the spread from days 46 to 90 and the full spread thereafter.

During syndication, the call protection on the term loans was extended from six months, the MFN was revised and the inside debt maturity basket was removed.

Credit Suisse Securities (USA) LLC, Credit Agricole and Investec are leading the deal that will be used to fund the acquisition of power generation facilities from NRG Energy Inc.

Generation Bridge, a wholly owned subsidiary of ArcLight Energy Partners Fund VII LP, is an operator of power generation facilities.

Evans starts trading

Evans Network’s bank debt also hit the secondary market, with the $450 million first-lien term loan (B3/B-) and $40 million delayed-draw first-lien term loan (B3/B-) quoted at 99¼ bid, 99¾ offered and the $190 million second-lien term loan (Caa2/CCC) quoted at 99 bid, 101 offered, a market source said.

Pricing on the first-lien term loan debt is Libor plus 425 bps with a 0.75% Libor floor and it was sold at an original issue discount of 99. The debt has 101 soft call protection for six months.

The second-lien term loan is priced at Libor plus 750 bps with a 0.75% Libor floor and was issued at a discount of 99. This tranche has hard call protection of 102 in year one and 101 in year two.

During syndication, pricing on the first-lien term loan debt firmed at the high end of the Libor plus 400 bps to 425 bps talk, the discount widened from 99.5, the delayed-draw ticking fee was changed to half the spread from days 46 to 90 and the full spread thereafter from half the spread from days 91 to 120 and the full spread thereafter, MFN was revised to 75 bps with no sunset, asset sale step-downs were removed and quarterly lender calls were required.

Evans getting revolver

In addition to the term loans Evans Network’s $830 million of senior secured credit facilities include a $150 million privately placed ABL revolver.

Antares Capital is leading the deal that will be used to support Court Square’s recapitalization of the company.

Closing is expected on Aug. 19.

Senior leverage is 4.69x and total leverage is 6.67x.

Evans Network is a Schuylkill Haven, Pa.-based asset-light logistics platform providing critical services at scale to a network of independent freight agents.

Sotheby’s breaks

Sotheby’s $458 million covenant-lite term loan B due Jan. 15, 2027 freed up during the session, with levels quoted at par ¼ bid, according to a market source.

Pricing on the term loan is Libor plus 450 bps with a 0.5% Libor floor and it was issued at par. The loan has 101 soft call protection for six months.

During syndication, pricing on the term loan was raised from talk in the range of Libor plus 400 bps to 425 bps.

BNP Paribas Securities Corp. is leading the deal that will be used to reprice an existing term loan down from Libor plus 475 bps with a 0.75% Libor floor.

Sotheby’s is a New York-based auction house.

UDG reworked

Back in the primary market, UDG Healthcare/Huntsworth scaled back its U.S. seven-year first-lien term loan B (B1/B) to $1.6 billion from $1.94 billion, modified price talk to a range of Libor plus 425 bps to 450 bps from a range of Libor plus 400 bps to 425 bps, before firming at Libor plus 425 bps, and set the original issue discount at 99, the wide end of the 99 to 99.5 talk, a market source remarked.

Also, the company increased its euro seven-year first-lien term loan B (B1/B) to €690 million from €400 million and finalized pricing at Euribor plus 400 bps, the low end of the Euribor plus 400 bps to 425 bps talk, the source continued.

The U.S. term loan still has a 0.5% Libor floor, the euro term loan still has 0% floor and a discount of 99.5, and both loans still have 101 soft call protection for six months.

The company’s credit facilities also include a $400 million five-year revolver (B1/B) and a £330 million pre-placed eight-year second-lien term loan.

UDG shuts books

Recommitments for UDG/Huntsworth’s term loans were due at noon ET on Friday, the source added.

JPMorgan Chase Bank and Citigroup Global Markets Inc. are the physical bookrunners on the deal, with JPMorgan the left lead on the U.S. loan and Citigroup the left lead on the euro loan. Deutsche Bank is a lead bookrunner. Bank of Ireland, Barclays, HSBC, ING, Jefferies LLC and RBC Capital Markets are bookrunners. JPMorgan is the administrative agent.

The new debt will be used to help fund the buyout of Dublin-based UDG by Clayton, Dubilier & Rice for £10.80 per share and combination with London-based Huntsworth, an existing CD&R portfolio company, to refinance certain existing debt at Huntsworth and UDG and to pay related fees and expenses.

UDG/Huntsworth is a provider of medical communications, marketing, advisory and packaging services to pharma and biotech clients.

International SOS revised

International SOS lifted pricing on its $700 million term loan B (Ba3/BB) to Libor plus 375 bps from talk in the range of Libor plus 325 bps to 350 bps, adjusted the original issue discount to 99 from 99.5 and extended the 101 soft call protection to one year from six months, according to a market source.

The term loan still has a 0.5% Libor floor.

Recommitments were due at 11 a.m. ET on Friday, the source added.

JPMorgan Chase Bank is leading the deal that will be used to repay existing debt, to fund an acquisition and for general corporate purposes.

International SOS is a provider of assistance and medical services to corporates, governments and other public entities.

Waystar tweaks timing

Waystar accelerated the commitment deadline for its fungible $247 million add-on term loan to noon ET on Monday from 5 p.m. ET on Wednesday, a market source said.

Pricing on the add-on term loan is Libor plus 400 bps with a 0% Libor floor, in line with existing term loan pricing, and the new debt is talked with an original issue discount of 98.78 to 99.

JPMorgan Chase Bank, Deutsche Bank Securities Inc. and Barclays are leading the deal that will be used to fund the acquisition of Patientco, a provider of omnichannel patient payments, communications and engagement software.

Closing is subject to regulatory approval and customary closing conditions.

Waystar, backed by EQT, Canada Pension Plan Investment Board and Bain Capital, is a provider of healthcare payments software.

SeaWorld holds call

SeaWorld hosted a lender call on Friday morning, launching its previously announced $1.1 billion seven-year first-lien term loan at talk of Libor plus 300 bps to 325 bps with a 0.5% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

The company’s $1.485 billion of senior secured credit facilities (Ba3/BB-) also include a $385 million five-year revolver.

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

JPMorgan Chase Bank is leading the deal that will be used with another financing that may be notes, loans, other securities or a combination thereof to repay the company’s existing senior facilities.

SeaWorld is an Orlando, Fla.-based theme park operator.

LendingTree guidance

LendingTree came out with talk of Libor plus 400 bps with a 0.75% Libor floor and an original issue discount of 99 on its $250 million term loan that launched with a call in the morning, a market source remarked.

The company’s $450 million of credit facilities (Ba3/BB-) also include a $200 million revolver.

Commitments are due on Aug. 20, the source added.

Truist is leading the deal, which will be used to refinance existing debt and for general corporate purposes.

LendingTree is a Charlotte, N.C.-based online lending marketplace.

Centuri readies loan

Centuri Group will hold a lender call at 2 p.m. ET on Monday to launch a $1.145 billion seven-year covenant-lite term loan B (Ba2/BB-) talked at Libor plus 275 bps to 300 bps with a 0.5% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months, according to a market source.

Commitments are due at noon ET on Aug. 18, the source added.

Wells Fargo Securities LLC and BofA Securities Inc. are leading the deal that will be used to support the $855 million acquisition of Riggs Distler & Co. Inc., a Cherry Hill, N.J.-based utility services contractor, and to refinance existing credit facilities.

Closing is expected in the third quarter.

Centuri, a wholly-owned subsidiary of Southwest Gas Holdings Inc., is a Phoenix-based utility services enterprise dedicated to delivering a diverse array of solutions to North America’s gas and electric providers.

Wheel Pros on deck

Wheel Pros set a lender call for 10 a.m. ET on Monday to launch a fungible $175 million incremental first-lien term loan due May 2028, a market source said.

Pricing on the incremental term loan is Libor plus 450 bps with a 0.75% Libor floor, in line with existing term loan pricing.

Original issue discount talk on the incremental term loan is still to be determined.

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

Deutsche Bank Securities Inc. is leading the deal that will be used to fund acquisitions.

Wheel Pros is a Denver-based designer, manufacturer and distributor of proprietary branded aftermarket vehicle enhancements for light trucks, SUVs, passenger cars and ATVs/UTVs.

Sylvamo coming soon

Sylvamo scheduled a lender call for 1 p.m. ET on Monday to launch a $500 million seven-year term loan B (Ba1), according to a market source.

The term loan has 101 soft call protection for six months, the source said.

BofA Securities Inc. is leading the deal that will be used to help fund the spin-off of the company from International Paper.

Sylvamo is a Memphis, Tenn.-based printing papers company.

MultiPlan joins calendar

MultiPlan will hold a lender call at 1 p.m. ET on Monday to launch a $1.6 billion term loan B, a market source remarked.

Goldman Sachs Bank USA, Barclays, Citigroup Global Markets Inc., BofA Securities Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and UBS Investment Bank are leading the deal that will be used with $775 million of other secured debt to refinance an existing $2.341 billion term loan G and pay transaction related fees and expenses.

MultiPlan is a New York-based provider of health care cost management solutions.

Duravant allocates

In other news, Duravant LLC (Engineered Machinery Holdings Inc.) allocated its $1.22 billion incremental first-lien term loan (B2/B-) due May 21, 2028 and $375 million incremental second-lien term loan (Caa2/CCC+) due May 21, 2029, according to a market source.

Pricing on the incremental first-lien term loan is Libor plus 375 bps with a 25-bps step-down at first-lien net leverage of 5x and a 25-bps step-down upon an initial public offering, and a 0.75% Libor floor, The debt was sold at an original issue discount of 99.5 and has 101 soft call protection for six months.

The second-lien term loan is priced at Libor plus 600 bps with a 0.75% Libor floor and was issued at par. This tranche has hard call protection of 102 through May 21, 2022 and 101 through May 21, 2023.

During syndication, the incremental first-lien term loan was upsized from $1.135 billion and the step-downs were changed from two 25-bps step-downs at first-lien net leverage of 4.75x and 4.25x and one 25-bps step-down upon an IPO. Also, pricing on the incremental second-lien term loan was reduced from Libor plus 650 bps and the tranche was revised to non-fungible from fungible.

Duravant lead banks

Jefferies LLC, Societe Generale, Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., KeyBanc Capital Markets, MUFG, Antares Capital, Fifth Third and Rabobank are the arrangers on Duravant’s term loans.

Proceeds will be used to refinance existing near-term maturities and fund a shareholder distribution, the amount of which was increased with the first-lien term loan upsizing.

Duravant is a Downers Grove, Ill.-based automation solutions company providing highly engineered equipment and related aftermarket parts and services.

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