Perrigo frees to trade; Compass Power changes surface; Light & Wonder tweaks deadline

By Sara Rosenberg

New York, April 6 – Perrigo Co. plc increased the size of its term loan B, trimmed the spread and tightened the original issue discount, and upsized its term loan A, ahead of breaking for trading on Wednesday.

Also, Compass Power Generation LLC revised price talk on its term loan B to focus on the high end of prior guidance, add CSA and widen the original issue discount, and Light & Wonder Inc. (Scientific Games Corp.) moved up the commitment deadline for its term loan.

In addition, Epiq (DTI Holdco Inc.) released price talk on its first-lien term loan in connection with its lender call, Sinclair Television Group Inc. (Sinclair Broadcast Group) came to market with a term loan B-4, and Kroll and Congruex Group emerged with new deal plans.

Perrigo reworked

Perrigo raised its seven-year first-lien term loan B, of which $400 million is a delayed-draw tranche, to $1.1 billion from $800 million, cut pricing to SOFR+10 basis points CSA plus 250 bps from talk in the range of 275 bps to 300 bps, and moved the original issue discount to 99.25 from 98.5, according to a market source.

The company also lifted its five-year term loan A to $500 million from $300 million and terminated plans for a $500 million notes offering, the source said.

The term loan B still has a 25 bps step-down at 0.5x inside closing date total net leverage, a 0.5% floor and 101 soft call protection for six months.

Along with the term loans, the company’s now $2.6 billion of senior secured credit facilities (BB+) include a $1 billion five-year revolver.

JPMorgan Chase Bank, Morgan Stanley Senior Funding Inc., Wells Fargo Securities LLC, BofA Securities Inc. and HSBC Securities (USA) Inc. are leading the deal.

Perrigo hits secondary

Recommitments for Perrigo’s term loan B were due at 11:30 a.m. ET on Wednesday and the debt freed to trade later in the day, with levels on the strip of funded and delayed-draw debt quoted at 99˝ bid, par offered, another source added.

The credit facilities will be used with cash on hand to fund the acquisition of Hera SAS (HRA Pharma) from Astorg and Goldman Sachs Asset Management in a transaction valued at €1.8 billion, to refinance an existing term loan A due August 2022 and to redeem $369 million of existing notes due 2023.

Closing is expected by the end of the first half of this year, subject to customary conditions, including regulatory approvals.

Perrigo is a Dublin-based provider of self-care products and over-the-counter health and wellness solutions. Hera is a Paris-based consumer self-care company.

Compass revised

Compass Power Generation updated price talk on its $650 million seven-year senior secured term loan B (B+) to SOFR plus 425 bps, compared to initial talk at launch in early March of 400 bps to 425 bps, added CSA of 11.4 bps one-month rate, 26.2 bps three-month rate and 42.8 bps six-month rate versus no CSA previously, and adjusted the original issue discount to 97 from 99, a market source said.

Furthermore, the cash sweep was modified to the greater of 75% of excess cash flow and the amount needed to pay down to the target debt balance in each period from having no target debt balance previously, the cash sweep timing was revised to quarterly beginning in the second quarter of 2022 from semi-annual, and changes were made to Chewy protections, incremental debt, reinvestment rights and capital expenditures allowance.

As before, the term loan has a 1% floor and 101 soft call protection for six months.

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

Morgan Stanley Senior Funding Inc., MUFG, Credit Agricole and Truist are leading the deal that will be used to refinance an existing loan.

Compass Power is an owner and operator of gas-fired power plants.

Light & Wonder accelerated

Light & Wonder moved up the commitment deadline for its $2.2 billion seven-year term loan (Ba3/BB/BBB-) to 10 a.m. ET on Thursday from 5 p.m. ET on Thursday, a market source remarked.

Talk on the term loan is SOFR+CSA plus 325 bps with a 0.5% floor, an original issue discount of 98.5 to 99 and 101 soft call protection for six months.

CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

JPMorgan Chase Bank is leading the deal that will be used to refinance existing debt.

Light & Wonder is a Las Vegas-based cross-platform games and entertainment company.

Epiq guidance

In more happenings, Epiq held its lender call on Wednesday morning and, a few hours before the call began, price talk on its $960 million seven-year first-lien term loan (B2/B-) emerged at SOFR plus 475 bps to 500 bps with a 0.75% floor and an original issue discount of 98, according to a market source.

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

Commitments are due at 5 p.m. ET on April 20.

The company’s $1.335 billion of credit facilities also include a $125 million revolver and a $250 million privately placed second-lien term loan.

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to refinance the company’s existing capital structure.

Epiq is an alternative legal service provider, offering technology and services to corporate and law firm clients.

Sinclair holds call

Sinclair Television surfaced in the morning with plans to hold a lender call at 1 p.m. ET to launch a non-fungible $750 million seven-year term loan B-4 (Ba2/B+) talked at SOFR+CSA plus 375 bps with a 0% floor, an original issue discount of 97.5 to 98 and 101 soft call protection for six months, a market source said.

CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

Commitments are due at noon ET on April 13, the source added.

JPMorgan Chase Bank is the left lead on the deal that will be used repay a term loan B-1 due Jan. 3, 2024, redeem 5 7/8% notes due 2026, and pay associated breakage, fees and expenses.

The company is also extending the maturity date of its revolver to five years from closing.

Sinclair is a Hunt Valley, Md.-based broadcaster that owns, operates, and/or provides services to 185 television stations in 86 markets.

Kroll joins calendar

Kroll set a lender call for 11 a.m. ET on Thursday to launch a $225 million incremental first-lien term loan, according to a market source.

Stone Point Capital Markets is leading the deal. Goldman Sachs is the administrative agent.

The term loan will be used to repay revolver borrowings and add cash to the balance sheet.

The company will also be seeking an amendment to its existing term loan due April 2027 to move pricing to SOFR, the source added. The loan is currently priced at Libor plus 375 bps with a 1% Libor floor.

Kroll, previously known as Duff & Phelps, is a New York-based provider of data, technology and insights for risk, governance and growth.

Congruex on deck

Congruex will hold a lender call at 2 p.m. ET on Monday to launch $545 million of term loans, a market source remarked.

The debt is split between a $470 million seven-year term loan and a $75 million delayed-draw term loan, the source added.

KeyBanc Capital Markets, Citizens and Fifth Third are leading the deal that will be used to fund two acquisitions and refinance existing debt.

Congruex is a specialist in broadband network construction and engineering.

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