Qualtrics updated; Truist, Groundworks accelerated; Ivirma, Inmarsat, AppLovin set talk

By Sara Rosenberg

New York, March 5 – In the primary market on Tuesday, Qualtrics modified the original issue discount on its add-on first-lien term loan, and Truist Insurance Holdings LLC and Groundworks accelerated the commitment deadlines for their loan transactions.

Also, Ivirma, Inmarsat (Connect Finco Sarl/Connect U.S. Finco LLC), AppLovin Corp., Bakelite Synthetics and Bettcher Industries Inc. all released price talk with launch.

Furthermore, SunSource (CD&R Hydra Buyer Inc./STS Operating Inc.) and Zekelman Industries joined this week’s new issue calendar.

Qualtrics tweaked

Qualtrics changed the original issue discount on its fungible $175 million add-on first-lien term loan to 99.875 from talk in the range of 99 to 99.5, according to a market source.

Pricing on the add-on term loan is SOFR plus 350 basis points with a 0% floor.

Commitments were due at 12:30 p.m. ET on Tuesday, accelerated from 5 p.m. ET on Wednesday, the source added.

JPMorgan Chase Bank is leading the deal that will be used for general corporate purposes, including repayment of revolver borrowings.

Qualtrics, based in Provo, Utah, and Seattle, is a cloud-native software provider that helps organizations identify and resolve points of friction across all digital and human touchpoints in their business.

Truist moves deadline

Truist Insurance accelerated the commitment deadline for its $1.9 billion eight-year second-lien term loan to 4 p.m. ET on Wednesday from noon ET on Thursday, a market source remarked.

The second-lien term loan is talked at SOFR plus 500 basis points with an original issue discount of 99.5 to par, and hard call protection of 102 in year one and 101 in year two.

Stone Point is the left lead on the deal that will be used to help fund the buyout of Truist Insurance by Stone Point Capital and Clayton, Dubilier & Rice from Truist Financial Corp. at an implied enterprise value of $15.5 billion. Mubadala Investment Co. and other co-investors are also participating in the investment.

The company also plans on getting a $1.175 billion revolver and a $4 billion term loan B for the buyout.

JPMorgan Chase Bank, Morgan Stanley Senior Funding Inc., Stone Point, BofA Securities Inc., Wells Fargo Securities LLC, Truist Securities Inc., Barclays, RBC Capital Markets, Citigroup Global Markets Inc., Goldman Sachs Bank USA, KKR Capital Markets, BNP Paribas Securities Corp., Mizuho and TD Securities (USA) LLC are leading the term loan B.

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

Truist Insurance is a Charlotte, N.C.-based insurance brokerage.

Groundworks accelerated

Groundworks moved up the commitment deadline for its $1.03 billion of credit facilities (B3/B) to 5 p.m. ET on Tuesday from 5 p.m. ET on Wednesday, a market source said.

The facilities consist of a $65 million five-year revolver, an $815 million seven-year first-lien term loan and a $150 million delayed-draw term loan with 24-month availability.

Talk on the term loans is SOFR plus 375 bps to 400 bps with a 0% floor, an original issue discount of 99 and 101 soft call protection for six months.

KKR Capital Markets, Deutsche Bank Securities Inc., Jefferies LLC, Morgan Stanley Senior Funding Inc., Capital One and Natixis are leading the deal that will be used to refinance existing credit facilities.

Groundworks is a Virginia Beach, Va.-based foundation repair and water management solutions provider.

Ivirma guidance

Ivirma held its lender call on Tuesday morning and announced price talk on its $500 million seven-year term loan B and €550 million seven-year term loan B at SOFR/Euribor plus 450 bps with a 0% floor and an original issue discount of 99, according to a market source.

The term loans (B2/B/B+) have 101 soft call protection for six months.

Commitments are due at 8 a.m. ET on March 15.

KKR Capital Markets is the sole physical bookrunner on the U.S. term loan, with Barclays and BofA Securities Inc. bookrunners. Barclays, BofA Securities and KKR are the physical bookrunners on the euro term loan. CVC Capital Markets, Deutsche Bank Securities Inc., Intesa, Mizuho, Morgan Stanley Senior Funding Inc., MUFG, Santander, SMBC, Societe Generale and UniCredit are passive bookrunners. Santander is the agent.

Proceeds will be used to refinance existing debt and pay the relevant transaction fees and expenses.

IVI America LLC is the U.S. loan borrower, and Inception Finco is the euro loan borrower.

Ivirma, owned by KKR and headquartered in Valencia, Spain, and Basking Ridge, N.J., is a fertility platform.

Inmarsat holds call

Inmarsat emerged in the morning with plans to hold a lender call at 11:30 a.m. ET to launch a $1.4 billion term loan B (B1/B+) due September 2029 talked at SOFR plus 400 bps to 425 bps with a 0.5% floor, an original issue discount of 98.5 and 101 soft call protection for six months, a market source remarked.

Commitments are due at 10 a.m. ET on March 12, the source added.

BofA Securities Inc., Citizens, DnB, Goldman Sachs Bank USA, ING, JPMorgan Chase Bank, MUFG and NatWest are leading the deal that will be used to extend all or a portion of the company’s existing outstanding term loans and to pay transaction costs.

Inmarsat, part of the ViaSat group, is a provider of mobile satellite communications services.

AppLovin launches

AppLovin came out in the morning with plans to hold a lender call at 1 p.m. ET to launch a $1.474 billion term loan B due October 2028 and $2.093 billion term loan B due August 2030, according to a market source.

The 2028 term loan will be used to reprice an existing term loan due October 2028 down from SOFR plus 310 bps with a 0.5% floor. Of the total 2030 term loan amount, $1.493 billion is to reprice an existing term loan B due August 2030 down from SOFR plus 310 bps with a 0.5% floor and $600 million is a fungible add-on that will be used to pay down revolver borrowings.

Talk on the 2028 and 2030 term loans is SOFR plus 250 bps to 275 bps with a 0.5% floor and 101 soft call protection for six months, the source said. The 2028 term loan and repricing portion of the 2030 term loan are talked with a par issue price, and the 2030 add-on term loan is talked with an original issue discount of 99.5 to 99.75.

Commitments will be due early in the week of March 11, another source added.

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

AppLovin is a Palo Alto, Calif.-based provider of marketing software.

Bakelite talk

Bakelite Synthetics launched on its morning call its fungible $110 million incremental first-lien term loan (B1/BB-/BB+) due May 2029 with original issue discount talk of 99 to 99.25, a market source said.

Pricing on the incremental term loan is SOFR+CSA plus 400 bps with a 0.5% floor, in line with existing term loan pricing.

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

Goldman Sachs Bank USA is the left lead on the deal that will be used to fund a distribution to shareholders, pay down drawn portions of the ABL and pay related fees and expenses.

Black Diamond and Investindustrial are the sponsors.

Bakelite is an Atlanta-based producer of thermoset specialty resins, solutions and engineered thermoset molding compounds.

Bettcher proposed terms

Bettcher Industries released original issue discount talk of 99.03 on its fungible $85 million add-on first-lien term loan due December 2028 that launched with a call in the morning, according to a market source.

Pricing on the add-on term loan is SOFR plus 400 bps with a 0.5% floor, in line with pricing on an existing term loan.

Commitments are due at 5 p.m. ET on March 12, the source added.

KKR Capital Markets is leading the deal that will be used to fund an acquisition.

Bettcher Industries is a Birmingham, Ohio-based manufacturer and supplier of food processing equipment and associated aftermarket parts and consumables.

SunSource readies deal

SunSource scheduled a bank meeting for 10 a.m. ET on Wednesday to launch $2.185 billion of credit facilities, a market source remarked.

The facilities consist of a $500 million five-year ABL revolver and a $1.685 billion seven-year first-lien term loan (B3/B), the source added.

UBS Investment Bank is the left lead on the deal that will be used to refinance the company’s existing capital structure, to fund a distribution to shareholders, to pay original issue discount, fees and expenses, and to add cash to the balance sheet.

SunSource is an Addison, Ill.-based distributor of highly technical products, solutions and services.

Zekelman on deck

Zekelman set a lender call for 10 a.m. ET on Wednesday to launch a $900 million term loan B due 2031, according to a market source.

Goldman Sachs Bank USA and BofA Securities Inc. are leading the deal that will be used to amend, extend and modestly upsize the company’s its existing senior secured term loan B.

Zekelman Industries is a Chicago-based steel and pipe producer.

Secondary better

In other news, the secondary market in general was stronger on Tuesday with levels feeling like they were about an eighth of a point to a quarter of a point higher across the board, according to a trader.

The trader attributed the rise in levels to better buying interest, mostly from CLOs.

In addition, the trader said that there will be a roughly $400 million BWIC on Wednesday.

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