Oasis Outsourcing breaks; Barbri changes emerge; primary activity continues to flourish

By Sara Rosenberg

New York, Nov. 29 – Oasis Outsourcing Holdings Inc.’s add-on first-lien term loan made its way into the secondary market on Wednesday, with levels quoted well above its issue price.

Moving to the primary market, Barbri increased the size of its first-lien term loan, tightened the original issue discount and added a leverage-based pricing step-down.

Also, Varsity Brands Inc., Autodata Inc., Navitas Midstream Midland Basin LLC, Direct ChassisLink Inc., ABC Financial Inc., CenseoHealth/Advance Health (Chloe Ox Parent LLC), Harsco Corp., TRC Cos. Inc. and AGS (AP Gaming I LLC) disclosed price talk with launch.

Furthermore, Virtu Financial Inc., Sequa Corp., Aramark Services, Jaggaer, CHG Healthcare Services Inc., SiteOne Landscape Supply Inc. and Refresco joined the near-term calendar.

Oasis frees up

Oasis Outsourcing’s fungible $25 million add-on first-lien term loan (B1/B) due June 30, 2023 began trading on Wednesday, with levels quoted at par ½ bid, 101 offered, according to a trader.

Pricing on the add-on loan is Libor plus 375 basis points with a 1% Libor floor and it was issued at par.

RBC Capital Markets LLC is leading the deal that will be used to fund the acquisition of Staff One.

Including the add-on, the term loan will total $346 million.

Oasis Outsourcing, a Stone Point Capital & Kelso owned company, is a West Palm Beach, Fla.-based provider of comprehensive and cost-effective HR outsourcing services to small- and medium-sized businesses.

Barbri reworked

Meanwhile, in the primary market, Barbri lifted its six-year first-lien term loan to $185 million from $175 million, tightened the original issue discount to 99.5 from 99 and added a pricing step-down was added to Libor plus 400 bps based on leverage, a market source remarked.

Initial pricing on the first-lien term loan is still Libor plus 425 bps with a 1% Libor floor, and the debt still has 101 soft call protection for six months.

The company’s now $280 million of senior secured credit facilities also include a $20 million five-year revolver and a $75 million privately-placed second-lien term loan.

Antares Capital is leading the deal that will be used to refinance the company’s existing $286 million in senior secured credit facilities first put in place in 2011.

Barbri, a Leeds Equity Partners portfolio company, is a Dallas-based provider of practical legal education.

Varsity releases guidance

Varsity Brands held its lender call on Wednesday, launching its $1,125,000,000 seven-year first-lien term loan (B1/B) at talk of Libor plus 375 bps to 400 bps with a 1% Libor floor and an original issue discount of 99.5, according to a market source.

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

Commitments are due on Dec. 8, the source said.

The company is also getting a $500 million privately placed eight-year second-lien term loan that has call protection of 102 in year one and 101 in year two.

Jefferies LLC, Barclays and Cowen are leading the deal that will be used to repay existing debt.

Varsity Brands is a Memphis, Tenn.-based provider of sports, cheerleading and achievement-related products to schools.

Autodata hosts meeting

Autodata had its bank meeting in the afternoon and announced price talk on its $260 million seven-year covenant-light first-lien term loan and $100 million eight-year covenant-light second-lien term loan, a market source remarked.

Talk on the first-lien term loan is Libor plus 375 bps to 400 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, and talk on the second-lien term loan is Libor plus 775 bps to 800 bps with a 0% Libor floor, a discount of 99 and call protection of 102 in year one and 101 in year two, the source added.

The company’s $385 million of senior secured credit facilities also include a $25 million revolver.

Commitments are due on Dec. 13, the source added.

RBC Capital Markets and KKR Capital Markets are leading the deal that will be used to capitalize the business as a stand-alone entity.

Kohlberg Kravis Roberts & Co. LP is the sponsor.

Autodata, which was carved out of Internet Brands Inc., is a provider of data and software solutions that power the automotive industry.

Navitas discloses talk

Navitas Midstream came out with talk of Libor plus 425 bps to 450 bps with a 1% Libor floor and an original issue discount of 99.5 on its $350 million seven-year first-lien term loan (B3) in connection with its bank meeting, a market source said.

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

The company’s $400 million of credit facilities also include a $50 million super-priority revolver.

Commitments are due on Dec. 13, the source added.

Jefferies LLC, Barclays and Credit Suisse Securities (USA) LLC are leading the deal that will be used to repay $135 million of outstanding bank debt, finance the construction of the next 200 MMcf/d state-of-the-art cryogenic natural gas processing plant (Glasscock Plant), and fund the further build-out of the system (pipeline and compression) to serve growing volumes.

Navitas is a The Woodlands, Texas-based natural gas gathering and processing company.

Direct ChassisLink details

Direct ChassisLink launched at its morning bank meeting a $325 million senior secured covenant-light term loan (BB-) due June 15, 2023 at talk of Libor plus 650 bps with a 0% Libor floor, an original issue discount of 99, and hard call protection of 102 in year one and 101 in year two, reducing to 101 in connection with a change of control, a market source remarked.

Commitments are due at 5 p.m. ET on Dec. 13, the source added.

Citigroup Global Markets Inc., Bank of America Merrill Lynch, Deutsche Bank Securities Inc. and Goldman Sachs Bank USA are leading the deal that will be used to fund the acquisition of TRAC Intermodal’s fleet of about 72,000 53-foot domestic chassis and related customer and hosting contracts with Class I railroads and intermodal shipping companies.

Closing is expected in early-to-mid January, subject to customary conditions.

Direct ChassisLink is a Charlotte, N.C.-based provider of chassis leasing.

ABC Financial launches

ABC Financial announced talk of Libor plus 400 bps to 425 bps with a 1% Libor floor and an original issue discount of 99.5 on its $260 million seven-year first-lien term loan with its morning bank meeting, a market source said.

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

Commitments are due at 5 p.m. ET on Dec. 13, the source added.

The company’s $400 million of senior secured credit facilities also include a $25 million five-year revolver and a $115 million privately placed eight-year second-lien term loan that has hard call protection of 102 in year one and 101 in year two.

Jefferies LLC, Macquarie Capital and Antares Capital are leading the deal, which will be used to help fund the buyout of the company by Thoma Bravo LLC.

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

ABC Financial is a Little Rock, Ark.-based software and payment processing company.

CenseoHealth terms emerge

CenseoHealth/Advance Health launched at its bank meeting on Wednesday $295 million of credit facilities split between a $35 million revolver and a $260 million seven-year covenant-light first-lien term loan, a market source remarked.

Talk on the term loan is Libor plus 525 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, the source added.

Commitments are due on Dec. 14.

UBS Investment Bank and Deutsche Bank Securities Inc. are leading the deal that will be used to help fund the buyout of CenseoHealth LLC and Drynachan LLC (Advance Health) by New Mountain Capital for a combined $565 million in enterprise value.

CenseoHealth is a Dallas-based provider of in-home health assessments conducted by physicians. Advance Health is a Chantilly, Va.-based provider of managed care prospective health solutions.

Harsco holds call

Harsco held its lender call in the morning, launching its $546 million senior secured term loan (Ba1/BB+/BB+) due December 2024 at talk of Libor plus 325 bps with a 25 bps step-down if net leverage is below 2 times, a 1% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months, according to a market source.

Commitments are due on Tuesday, the source said.

Goldman Sachs Bank USA, Citigroup Global Markets Inc., HSBC Securities (USA) Inc., Bank of America Merrill Lynch, RBC Capital Markets, U.S. Bank and KeyBanc Capital Markets are leading the deal that will be used amend and extend and reprice an existing term loan due November 2023 that is priced at Libor plus 500 bps with a 25 bps step-down if net leverage is below 2 times and a 1% Libor floor.

Harsco is a Camp Hill, Pa.-based diversified industrial company providing a range of onsite services and engineered products to the global steel, energy and railway sectors.

TRC repricing guidance

TRC Cos. Inc. launched with a call its $325 million term loan at talk of Libor plus 350 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, a market source said.

UBS Investment Bank 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.

TRC is a Windsor, Conn.-based engineering, environmental consulting and construction management firm.

AGS floats OID

AGS released original issue discount talk of 99.5 on its $65 million incremental senior secured first-lien term loan (B) due Feb. 15, 2024 that launched with a morning call, a market source remarked.

Pricing on the incremental loan is Libor plus 550 bps with a 1% Libor floor.

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

Jefferies LLC and Macquarie Capital (USA) Inc. are leading the deal that will be used to fund an acquisition and for general corporate purposes.

AGS is a Las Vegas-based manufacturer and operator of gaming machines.

Virtu joins calendar

Also in the primary market, Virtu Financial emerged with plans to hold a lender call on Thursday to launch a $650 million first-lien senior secured term loan talked at Libor plus 325 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, according to an informed source.

Commitments are due at noon ET on Dec. 6, the source said.

J.P. Morgan Securities LLC is leading the deal that will be used to reprice an existing term loan down from Libor plus 375 bps with a 1% Libor floor.

The existing term loan is being paid down by $50 million on Friday and the company anticipates applying to the term loan estimated after-tax net proceeds of $250 million from the sale of its BondPoint business, which would reduce the outstanding balance to $650 million.

Virtu is a New York-based technology-enabled market maker and liquidity provider to the financial markets.

Sequa coming soon

Sequa Corp. will hold a lender call at 10 a.m. ET on Friday to launch a roughly $918 million senior secured term loan B (B3/B-/B) due Nov. 28, 2021, a market source said.

Barclays is leading the deal that will be used to reprice an existing term loan B.

Sequa is a Palm Beach Gardens, Fla.-based aerospace and diversified industrial company.

Aramark timing surfaces

Aramark Services scheduled a lender call for Thursday to launch a $1.15 billion term loan talked at Libor plus 200 bps to 225 bps with a 0% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months, according to a market source.

Commitments are due on Dec. 7, the source said.

J.P. Morgan Securities LLC is leading the deal that will be used to help fund the acquisition of Avendra LLC for $1.35 billion, or a net purchase price of $1.05 billion after adjusting for the value of the anticipated tax benefits.

Closing is expected by year-end, subject to customary conditions and regulatory approvals.

Aramark is a Philadelphia-based professional services company that provides food, hospitality and facility management services as well as uniform and work apparel. Avendra is a Rockville, Md.-based hospitality procurement services provider.

Jaggaer plans meeting

Jaggaer set a bank meeting in New York for Monday to launch $410 million of senior secured credit facilities, a market source remarked.

The facilities consist of a $25 million five-year revolver and a $385 million seven-year covenant-light term loan, the source added.

Antares Capital is leading the deal that will be used to help fund the acquisition of BravoSolution from Italmobiliare S.p.A.

Jaggaer, a portfolio company of Accel-KKR, is a Morrisville, N.C.-based spend management technology company. BravoSolution is a strategic procurement solution provider.

CHG readies deal

CHG Healthcare Services scheduled a lender call for 1 p.m. ET on Thursday to launch a $200 million incremental first-lien term loan and a repricing of its existing first-lien term loan, according to a market source.

Jefferies LLC is leading the deal.

The add-on loan will be used to repay some existing second-lien term loan borrowings and the existing first-lien loan will be repriced from Libor plus 325 bps with a 1% Libor floor.

CHG is a Salt Lake City-based health care staffing firm.

SiteOne on deck

SiteOne Landscape Supply set a lender call for 9:30 a.m. ET on Thursday to launch a $50 million add-on term loan B and a repricing of its existing $298 million covenant-light term loan due April 2022, according to a market source.

UBS Investment Bank is the bookrunner on the deal.

The add-on term loan will be used to repay ABL revolver borrowings and the repricing will revise pricing on the existing loan from Libor plus 350 bps with a step-down to Libor plus 325 bps at 2.75 times leverage and a 1% Libor floor.

Closing is expected in December.

SiteOne is a Roswell, Ga.-based distributor of wholesale irrigation, landscape lighting, nursery, hardscapes, maintenance products and supplies for the green industry.

Refresco readies launches

Refresco will hold a bank meeting in London on Dec. 5 and one in New York on Dec. 6 to launch new seven-year covenant-light term loan B debt (B+), a market source said.

The debt is split between a $620 million term loan B talked at Libor plus 325 bps to 350 bps with a 0% Libor floor and an original issue discount of 99.5, a €1,217,000,000 term loan B talked at Euribor plus 325 bps to 350 bps with a 0% floor and a discount of 99.5, and a £200 million term loan B talked at Libor plus 400 bps to 425 bps with a 0% Libor floor and a discount of 99.25, the source added. All of the loans have 101 soft call protection for six months.

Commitments are due on Dec. 14, the source added.

J.P. Morgan is leading the U.S. loan, and BNP Paribas, Credit Suisse and J.P. Morgan are leading the euro and sterling loans. Deutsche Bank, ABN Amro Bank, Rabobank and Mizuho are passive bookrunners.

The new debt will be used to help fund the buyout of the company by PAI Partners SAS and British Columbia Investment Management Corp. for €20 in cash per ordinary share for a consideration of €1,623,000,000.

Refresco is a Rotterdam, the Netherlands-based bottler of beverages.

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