Albertsons, Lineage, Atlantic Power, Stratus free up; GFL, SubCom, EnTrans update deals

By Sara Rosenberg

New York, Oct. 29 – Albertsons Cos. Inc. adjusted the original issue discount on its first-lien term loan B-7 and Lineage Logistics LLC downsized its tack-on first-lien term loan, and then both of these deals broke for trading on Monday.

Other deals to make their way into the secondary market during the session included Atlantic Power Corp. and Stratus Technologies Inc.

In more happenings, GFL Environmental Inc. increased pricing on its incremental term loan B, and, as a result, will raise the spread on its existing term loan B, and SubCom (Crown Subsea Communications Holding Inc.) reduced the size of its term loan, widened the spread and issue price and extended the call protection.

Also, EnTrans International LLC lifted pricing on its term loan and sweetened the call protection, and Apergy Corp. withdrew its repricing from market.

Furthermore, Sedgwick Claims Management Services Inc. and PetVet Care Centers LLC released price talk with launch, and Tecta America Corp., KORE Wireless, PolyOne Corp., Belron Finance US LLC, LifePoint Health Inc. and Extreme Reach Inc. joined this week’s primary calendar.

Albertsons updated, trades

Albertsons modified the original issue discount on its $2 billion seven-year covenant-light first-lien term loan B-7 (Ba2/BB-) to 99.25 from 99.5, according to a market source.

As before, the term loan B-7 is priced at Libor plus 300 basis points with a 0.75% Libor floor, and has 101 soft call protection for six months.

On Monday afternoon, the term loan B-7 began trading and levels were seen at 99¼ bid, 99 5/8 offered, the source said.

Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch, Citigroup Global Markets Inc., Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc., Deutsche Bank Securities Inc., Barclays, Wells Fargo Securities LLC, US Bank, MUFG, RBC Capital Markets, SunTrust Robinson Humphrey Inc. and TD Securities (USA) LLC are leading the deal that will be used with cash and an ABL revolver draw to refinance an existing term loan B-4.

Albertsons is a Boise, Idaho-based food and drug retailer.

Lineage revised, breaks

Lineage Logistics trimmed its tack-on first-lien term loan due Feb. 27, 2025 to $190 million from $200 million and left pricing at Libor plus 300 bps with a 1% Libor floor and an original issue discount of 99, a market source remarked.

The spread and floor on the tack-on term loan matches existing term loan pricing.

After terms finalized, the tack-on term loan emerged in the secondary market and levels were quoted at 99¼ bid, 99¾ offered, the source added.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to finance tuck-in acquisitions.

Lineage Logistics is an Irvine, Calif.-based cold storage warehousing and logistics company.

Atlantic Power frees up

Atlantic Power’s $470 million senior secured first-lien term loan (Ba2/BB-) due April 2023 broke too, with levels seen at par ¼ bid, par ¾ offered, according to a trader.

Pricing on the term loan is Libor plus 275 bps with a 1% Libor floor and it was issued at par. The debt has 101 soft call protection for six months.

Goldman Sachs Bank USA, Wells Fargo Securities LLC, Bank of America Merrill Lynch, RBC Capital Markets, MUFG and ICBC are leading the deal that will be used to reprice an existing term loan due April 2023 down from Libor plus 300 bps with a 1% Libor floor.

Closing is expected this week.

Atlantic Power is a Boston-based owner, developer and operator of a diversified fleet of 23 power generation projects across nine states in the United States and two Canadian provinces.

Stratus hits secondary

Stratus Technologies’ credit facilities freed to trade as well, with the $125.5 million term loan B due 2023 quoted at par ¼ bid, par ½ offered, a market source said.

Pricing on the term loan B is Libor plus 475 bps. The debt has 101 soft call protection for six months.

The company is also getting a $20 million revolver due 2021 that is priced at Libor plus 400 bps.

SunTrust Robinson Humphrey Inc. and Macquarie Capital (USA) Inc. are leading the deal that will be used to extend both the revolver and the term loan maturities by two years, to reduce term loan pricing from the current rate of Libor plus 500 bps and to lower pricing on the revolver from the current rate of Libor plus 450 bps.

Lenders were offered a 25 bps amendment fee.

Stratus Technologies, a Siris Capital Group portfolio company, is a Maynard, Mass.-based provider of infrastructure-based solutions that keep applications running continuously.

GFL tweaks deal

Back in the primary market, GFL Environmental flexed pricing on its fungible $1.71 billion incremental term loan B (B2/B+) due May 31, 2025 to Libor plus 300 bps from Libor plus 275 bps, and will now reprice its existing term loan B to Libor plus 300 bps from Libor plus 275 bps to match the incremental loan pricing, a market source remarked.

As before, the incremental term loan B has a 1% Libor floor and an original issue discount of 98.75, and all of the company’s term loan B debt is getting 101 soft call protection for six months.

Last week, the incremental loan was upsized from $1.31 billion as plans were terminated for a $400 million senior note offering, the discount widened from talk in the range of 99 to 99.25 and the call protection was added.

Final commitments were due at 1 p.m. ET on Monday.

Barclays, BMO Capital Markets Corp. and RBC Capital Markets are leading the loan that will be used with additional equity from BC Partners and other equity investors to fund the company’s merger with Waste Industries, which values Waste Industries at $2,825,000,000.

Closing is expected this quarter, subject to customary regulatory approvals.

GFL is a Toronto-based environmental services company. Waste Industries is a Raleigh, N.C.-based provider of non-hazardous solid waste collection, transfer, recycling and disposal services.

SubCom reworked

SubCom scaled back its seven-year covenant-light first-lien term loan to $405 million from $450 million, increased pricing to Libor plus 600 bps from talk in the range of Libor plus 500 bps to 525 bps, moved the original issue discount to 98 from 99, extended the 101 soft call protection to one year from six months and lifted amortization to 5% per annum from 1%, according to a market source.

The term loan still has a 0% Libor floor.

The company’s now $505 million of credit facilities (B1/B) also include a $100 million revolver.

Recommitments were due at 5 p.m. ET on Monday, the source said.

Goldman Sachs Bank USA, Barclays, Credit Suisse Securities (USA) LLC and Jefferies LLC are leading the deal that will be used to help fund the buyout of the company by Cerberus Capital Management LP from TE Connectivity Ltd.

The term loan was downsized due to an increase in the Surety Bonding Program, the source added.

Closing is expected this quarter, subject to customary conditions.

SubCom is an Eatontown, N.J.-based supplier of subsea communications systems.

EnTrans changes emerge

EnTrans raised pricing on its $255 million seven-year first-lien term loan (B3/B) to Libor plus 600 bps from talk in the range of Libor plus 525 bps to 550 bps 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% Libor floor and an original issue discount of 99.

Recommitments were due at 5 p.m. ET on Monday, the source said.

Credit Suisse Securities (USA) LLC and Barclays are leading the deal that will be used to refinance existing debt.

EnTrans is an Athens, Tenn.-based producer of aluminum and stainless steel tank trailers and related parts and services.

Apergy pulls repricing

Apergy tabled the proposed repricing of its $395 million term loan that was talked at Libor plus 200 bps to 225 bps with a 0% Libor floor and a par issue price, a market source said.

J.P. Morgan Securities LLC was leading the deal.

Apergy is a The Woodlands, Texas-based provider of highly engineered technologies that help companies drill for and produce oil and gas efficiently and safely.

Sedgwick discloses guidance

Also in the primary market, Sedgwick Claims Management held its bank meeting on Monday and announced talk on its $2.34 billion seven-year covenant-light term loan B (B) at Libor plus 325 bps to 350 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, according to a market source.

Commitments are due at noon ET on Nov. 7, the source said.

Bank of America Merrill Lynch, KKR Capital Markets, Morgan Stanley Senior Funding Inc. and SunTrust Robinson Humphrey Inc. are leading the deal that will be used with equity to fund the buyout of the company by the Carlyle Group from KKR in a transaction valued at about $6.7 billion.

Funds managed by Stone Point Capital LLC and Caisse de dépôt et placement du Québec (CDPQ), together with Sedgwick management, will remain minority investors in the company.

Closing is expected later this year, subject to customary conditions, including regulatory approvals.

Sedgwick is a Memphis, Tenn.-based provider of claims management solutions to corporations, public entities and insurance carriers.

PetVet reveals talk

PetVet Care Centers held a lender call late in the day to launch a $125 million add-on covenant-light first-lien term loan (B2) due February 2025 that is talked with an original issue discount of 98.6, a market source said.

The add-on first-lien term loan is priced at Libor plus 275 bps with a 0% Libor floor, in line with existing first-lien term loan pricing.

Commitments are due on Nov. 6, the source added.

Jefferies LLC and KKR Capital Markets are leading the deal that will be used to add cash to the balance sheet, repay an existing revolver draw and pay transaction related fees.

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

Tecta on deck

Tecta America set a bank meeting for 10 a.m. ET in New York on Tuesday to launch $535 million of credit facilities, according to a market source.

The facilities consist of a $60 million revolver, a $375 million seven-year covenant-light first-lien term loan (B2/B) that has a 0% Libor floor and 101 soft call protection for six months, and a $100 million eight-year covenant-light second-lien term loan (Caa2/CCC+) that has a 0% Libor floor and call protection of 102 in year one and 101 in year two, the source said.

Commitments are due at 5 p.m. ET on Nov. 14.

Credit Suisse Securities (USA) LLC, UBS Investment Bank and RBC Capital Markets are leading the deal that will be used to help fund the buyout of the company by Altas Partners from ONCAP.

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

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

KORE joins calendar

KORE Wireless scheduled a bank meeting for 10:30 a.m. ET in New York on Wednesday to launch $370 million of senior secured credit facilities, a market source remarked.

The facilities consist of a $30 million five-year revolver, a $250 million seven-year first-lien term loan and a $90 million eight-year second-lien term loan, the source added.

UBS Investment Bank is leading the deal that will be used to refinance existing debt and fund an acquisition.

KORE Wireless, an ABRY Partners portfolio company, is an Alpharetta, Ga.-based provider of integrated software platform to enterprises to deploy, manage and optimize their IoT environments.

PolyOne readies loan

PolyOne will hold a lender call at 2 p.m. ET on Tuesday to launch a $632.6 million covenant-light term loan B due Jan. 30, 2026 that has 101 soft call protection for six months, according to a market source.

Commitments are due at 1 p.m. ET on Nov. 6, the source said.

Wells Fargo Securities LLC is leading the deal, which will be used to amend and extend an existing $632.6 million term loan B.

PolyOne is an Avon Lake, Ohio-based provider of specialized polymer materials, services and solutions.

Belron coming soon

Belron set a lender call for 11 a.m. ET on Wednesday to launch a $455 million covenant-light term loan B (Ba3/BB) due November 2025, a market source said.

Bank of America Merrill Lynch and J.P. Morgan Securities LLC are the global coordinators on the deal and joint arrangers with BNP Paribas Securities Corp. and ING. JPMorgan is the administrative agent.

The new loan will be used to fund a special distribution to shareholders.

Pro forma net leverage is 4.22 times.

Belron is a U.K.-based operator in the vehicle glass repair and replacement market.

LifePoint timing surfaces

LifePoint Health emerged with plans to hold a bank meeting at 10 a.m. ET in New York on Tuesday to launch new credit facilities, according to a market source.

Based on the commitment letter, the company is expected to get $4.2 billion of senior secured credit facilities, split between an $800 million asset-based revolver and a $3.4 billion term loan (B+).

Citigroup Global Markets Inc. is the left lead arranger on the deal. The debt commitment was also provided by Barclays, RBC Capital Markets, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and UBS Investment Bank.

Proceeds will be used to help fund the company’s merger with RCCH HealthCare Partners, which is owned by Apollo Global Management LLC. LifePoint shareholders will receive $65.00 per share in cash, resulting in an enterprise value of about $5.6 billion, including $2.9 billion of net debt and minority interest.

Other funds for the transaction are expected to come from $1,575,000,000 of senior notes and an up to $1 billion equity contribution from funds managed by Apollo.

Closing is expected this quarter, subject to customary conditions.

LifePoint and RCCH are both Brentwood, Tenn.-based health care providers.

Extreme Reach refinancing

Extreme Reach scheduled a bank meeting for Tuesday to launch $440 million of credit facilities, a market source remarked.

The facilities consist of a $30 million revolver (BB-) and a $410 million term loan B (B-), the source added.

SunTrust Robinson Humphrey Inc. and Credit Suisse Securities (USA) LLC are leading the deal that will be used to refinance existing bank debt.

Extreme Reach is a Needham, Mass.-based video platform for integrated TV, online and mobile advertising.

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