Sedgwick breaks; Gigamon, SCP Health, Franchise Group update deals; Xplornet pulled

By Sara Rosenberg

New York, Feb. 22 – Sedgwick Claims Management Services Inc.’s term loan B-2 made its way into the secondary market on Monday, with levels quoted above its issue price.

Meanwhile, in the primary market, Gigamon Inc. finalized pricing on its first-lien term loan at the low end of talk, and SCP Health (Onex TSG Intermediate Corp.) raised the spread on its first-lien term loan, widened the original issue discount and sweetened the call protection.

Also, Franchise Group Inc. increased the size of its term loan B, lowered the Libor floor and set the issue price at the tight end of guidance, and eliminated a last-out term loan from its capital structure, and Xplornet Communications Inc. pulled from market its incremental first-lien term loan and repricing of its existing first-lien term loan.

In addition, Ultra Clean Holdings Inc., XPO Logistics Inc., WellSky, Bass Pro Group LLC and TCW Group released price talk with launch, and Global Client Solutions, Daseke Inc., High Liner Foods Inc., Garrett Motion Inc., Tronox Finance LLC and Packers Holdings LLC (PSSI) joined this week’s primary calendar.

Sedgwick hits secondary

Sedgwick Claims Management Services’ $1.084 billion term loan B-2 began trading, with levels quoted at par 1/8 bid, par ½ offered, according to a market source.

Pricing on the term loan is Libor plus 375 basis points with a 0% Libor floor and it was issued at par. The debt has 101 soft call protection for six months.

During syndication, pricing on the term loan was increased from Libor plus 350 bps and the issue price was tightened from 99.875.

BofA Securities Inc. is the left lead on the deal that will be used to reprice an existing term loan down from Libor plus 400 bps with a 0% Libor floor.

Sedgwick is a Memphis, Tenn.-based provider of technology-enabled risk, benefits and integrated business solutions.

Gigamon updated

Moving to the primary market, Gigamon firmed pricing on its $536.58 million senior secured first-lien term loan (B2/B-) due December 2024 at Libor plus 375 bps, the low end of the Libor plus 375 bps to 400 bps talk, a market source said.

The term loan has one 25 bps leverage-based pricing step-down, a 0.75% Libor floor, a par issue price for those rolling, an original issue discount of 99.75 for new money and 101 soft call protection for six months.

Allocations went out on Monday, the source added.

Jefferies LLC is leading the deal that will be used to reprice an existing term loan down from Libor plus 425 bps with a 1% Libor floor.

Gigamon is a Santa Clara, Calif.-based provider of active visibility into physical and virtual network traffic.

SCP changes emerge

SCP Health lifted pricing on its $530 million seven-year covenant-lite first-lien term loan to Libor plus 475 bps from Libor plus 425 bps, changed the original issue discount to 98 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 0.75% Libor floor.

The company’s $619 million of credit facilities (B2/B) also include an $89 million revolver.

Recommitments are due at noon ET on Tuesday, the source added.

Credit Suisse Securities (USA) LLC, Barclays, BMO Capital Markets, Deutsche Bank Securities Inc., Jefferies LLC and Truist are leading the deal that will be used with balance sheet cash to refinance existing first- and second-lien term loans.

SCP Health is a Lafayette, La.-based provider of outsourced emergency medicine and hospital medicine services.

Franchise reworked

Franchise Group raised its term loan B to $1 billion from $750 million, cut the Libor floor to 0.75% from 1% and firmed the original issue discount at 99, the tight end of the 98.5 to 99 talk, a market source remarked.

Pricing on the term loan B remained at Libor plus 500 bps.

Plans for a committed $250 million last-out term loan were cancelled with the term loan B upsizing.

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

J.P. Morgan Securities LLC, Citizens Bank and Credit Suisse Securities (USA) LLC are leading the deal that will be used with a $300 million second-lien term loan to fund the acquisition of Pet Supplies Plus from Sentinel Capital Partners for about $700 million and to refinance an existing term loan.

The second-lien term loan was added to replace $300 million of proposed unsecured debt.

Closing is expected in March, subject to the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and other customary conditions.

Franchise Group is a Virginia Beach, Va.-based operator of franchised and franchisable businesses. Pet Supplies is a Livonia, Mich.-based omnichannel retail chain and franchisor of pet supplies and services.

Xplornet pulled

Xplornet Communications withdrew from market its C$20 million U.S. dollar equivalent fungible incremental first-lien term loan due June 10, 2027 and repricing of its existing $989 million first-lien term loan due June 10, 2027, a market source said.

The term loan debt was talked at Libor plus 375 bps to 400 bps with a 0% Libor floor, a par issue price and 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC and Barclays were leading the deal.

The incremental term loan was going to be used for general corporate purposes, and the repricing was going to take the existing term loan down from Libor plus 475 bps with a 0% Libor floor.

Xplornet is a Woodstock, New Brunswick-based broadband service provider in Canada.

Ultra Clean talk

Ultra Clean Holdings held its lender call on Monday and announced original issue discount talk of 99.5 on its fungible $355 million incremental first-lien term loan due Aug. 27, 2025, according to a market source.

Like the existing term loan, the incremental term loan is priced at Libor plus 450 bps with a 0% Libor floor.

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

Commitments are due at 5 p.m. ET on March 2, the source added.

Barclays is leading the deal that will be used to fund the acquisition of Ham-Let (Israel-Canada) Ltd. for about $348 million, which includes $287 million of equity value plus $61 million of net debt.

Closing is expected late this quarter or early next quarter, subject to customary conditions.

Total leverage will be 2.9x and net leverage will be 2x.

Ultra Clean is a Hayward, Calif.-based developer and supplier of critical subsystems, ultra-high purity cleaning, analytical and decontamination services for the semiconductor industry. Ham-Let is a manufacturer of Ultra-High Purity and industrial flow control systems largely used for the manufacturing of semiconductor devices.

XPO launches

XPO Logistics held a call at 2 p.m. ET on Monday to launch a $500 million add-on covenant-lite first-lien term loan B due February 2025 and a repricing of its existing $1.503 billion covenant-lite first-lien term loan B due February 2025, a market source remarked.

Talk on the term loan debt is Libor plus 175 bps with a 0% Libor floor, an original issue discount of 99.75 on the add-on, a par issue price on the repricing and 101 soft call protection for six months, the source added.

Commitments are due at noon ET on Friday.

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

The add-on will be used to repay an existing term loan B-1.

XPO Logistics is a Greenwich, Conn.-based provider of supply chain solutions.

WellSky proposed terms

WellSky launched on a call at 3 p.m. ET a $1.125 billion seven-year first-lien term loan B (B) talked at Libor plus 375 bps with a 0.75% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, a market source said.

BofA Securities Inc., Goldman Sachs Bank USA, Deutsche Bank Securities Inc., BMO Capital Markets, RBC Capital Markets, Nomura and TPG are leading the deal that will be used to help refinance existing first-and second-lien term loans.

WellSky is an Overland Park, Kan.-based provider of healthcare enterprise software and related services.

Bass Pro holds call

Bass Pro Group hosted a lender call at 1:30 p.m. ET on Monday to launch a $4.095 billion seven-year term loan (B+) talked at Libor plus 450 bps to 475 bps with a 0% Libor floor, an original issue discount of 99.5 to 99.75 and 101 soft call protection for six months, according to a market source.

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

J.P. Morgan Securities LLC is leading the deal that will be used to extend the maturity of an existing term loan from 2024 and reprice the debt from Libor plus 500 bps with a 0.75% Libor floor.

Bass Pro is a Springfield, Mo.-based outdoor retailer.

TCW extending

TCW Group held a call at 2 p.m. ET to launch a $582 million term loan due February 2028 talked at Libor plus 175 bps with a 0% 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.

J.P. Morgan Securities LLC is leading the deal that will be used to extend an existing term loan B from December 2024. Current term loan pricing is Libor plus 175 bps with a 0% Libor floor.

TCW is a Los Angeles-based asset management firm that specializes in fixed-income, world equity and alternative markets.

Global Client on deck

Global Client Solutions set a lender call for 1 p.m. ET on Tuesday to launch a $260 million term loan B, according to a market source.

Goldman Sachs Bank USA is the left lead on the deal.

New State is the sponsor.

Global Client Solutions is a specialty payments platform and manager of incoming consumer deposits and outgoing creditor and DSP payments in support of debt settlement plans.

Daseke joins calendar

Daseke will hold a lender call at 2 p.m. ET on Tuesday to launch a $400 million term loan B, a market source remarked.

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

J.P. Morgan Securities LLC is leading the deal that will be used to refinance existing debt.

Daseke is an Addison, Texas-based owner and consolidator of flatbed and specialized transportation.

High Liner readies loan

High Liner Foods scheduled a lender call for 10 a.m. ET on Tuesday to launch a repricing of its roughly $285 million term loan B, according to a market source.

Current pricing on the existing term loan B is Libor plus 425 bps with a 1% Libor floor.

RBC Capital Markets is leading the deal.

High Liner is a Lunenburg, N.S.-based processor and marketer of frozen seafood.

Garrett coming soon

Garrett Motion set a lender call for noon ET on Tuesday to launch a $1.25 billion equivalent U.S. and euro term loan (Ba2), a market source said.

Talk on the U.S. portion of the term loan is Libor plus 300 bps to 325 bps with a 0.5% Libor floor and an original issue discount of 99.5, and talk on the euro portion of the term loan is Euribor plus 325 bps to 350 bps with a 0% floor and a discount of 99.5, the source added.

J.P. Morgan Securities LLC, RBC Capital Markets, Deutsche Bank Securities Inc., Fifth Third, KeyBanc Capital Markets, BNP Paribas Securities Corp. and UBS Investment Bank are leading the deal that will be used for exit financing.

Garrett Motion is a Rolle, Switzerland-based provider of passenger vehicle, commercial vehicle, aftermarket replacement and performance enhancement solutions.

Tronox sets call

Tronox will hold a lender call at 2 p.m. ET on Tuesday to launch $1.65 billion of credit facilities, according to a market source.

The facilities consist of a $350 million five-year revolver and a $1.3 billion seven-year term loan B, the source said.

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

Commitments are due at noon ET March 2, the source added.

HSBC Securities (USA) Inc., Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., BofA Securities Inc., Barclays, BNP Paribas Securities Corp., Deutsche Bank Securities Inc. and Goldman Sachs Bank USA are leading the deal that will be used with cash on hand and other unsecured debt, to refinance existing ABL facility and term loan B borrowings, to refinance senior notes due 2026 and to pay fees and expenses.

Tronox is a Stamford, Conn.-based producer of titanium dioxide and inorganic chemicals.

Packers on deck

Packers Holdings scheduled a lender call for 10:30 a.m. ET on Tuesday to launch $1.109 billion of credit facilities (B-), a market source remarked.

The facilities consist of a $54 million five-year revolver and a $1.055 billion seven-year first-lien term loan, the source added.

Jefferies LLC and Blackstone are leading the deal that will be used to refinance an existing revolver and term loan.

Packers Holdings is a Kieler, Wis.-based provider of mission critical cleaning, sanitation and compliance services to the food processing industry.

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