Clean Harbors, Groundworks free up; SunSource, Zekelman, ArcLight NGPL release price talk

By Sara Rosenberg

New York, March 6 – Clean Harbors Inc. increased the size of its incremental term loan B and tightened the original issue discount, and Groundworks lowered the spread on its term loan debt, and then both of these deals broke for trading on Wednesday.

In more happenings, SunSource (CD&R Hydra Buyer Inc./STS Operating Inc.), Zekelman Industries and ArcLight NGPL Holdings LLC (AL NGPL Holdings LLC) disclosed price talk with launch.

Also, Vistra Zero Operating Co. LLC, Creative Artists Agency LLC and LegalShield joined this week’s new-issue calendar.

Clean Harbors tweaked

Clean Harbors raised its fungible incremental term loan B (Ba1/BBB-) due October 2028 to $500 million from $400 million and adjusted the original issue discount to 99.875 from the 99.75 area, according to a market source.

Pricing on the incremental term loan is SOFR+CSA plus 175 basis points with a 0% floor, and the debt still has 101 soft call protection for six months.

Goldman Sachs Bank USA, JPMorgan Chase Bank, BofA Securities Inc., Citizens, Truist Securities, Stifel and RBC Capital Markets are leading the deal that will be used to fund the acquisition of Hepaco from Gryphon Investors for $400 million and, due to the upsizing, for general corporate purposes.

Clean Harbors breaks

Commitments for Clean Harbors’ incremental term loan B were due at 1 p.m. ET on Wednesday, accelerated from 5 p.m. ET on Wednesday, and the debt began trading later in the day, with levels quoted at par bid, par ˝ offered, another source added.

Closing on the Hepaco acquisition is expected in the first half of this year, subject to regulatory approval and other customary conditions.

Clean Harbors is a Norwell, Mass.-based provider of environmental and industrial services. Hepaco is a Charlotte, N.C.-based provider of specialized environmental and emergency response services.

Groundworks revised, trades

Groundworks trimmed pricing on its $815 million seven-year first-lien term loan and $150 million delayed-draw with 24-month availability term loan to SOFR plus 350 bps from talk in the range of SOFR plus 375 bps to 400 bps, a market source said.

As before, the term loan debt has a 0% floor, an original issue discount of 99 and 101 soft call protection for six months.

The company’s $1.03 billion of credit facilities (B3/B) also include a $65 million five-year revolver.

Recommitments were due at noon ET on Wednesday and the strip of term loan debt freed up in the afternoon, with levels quoted at 99˝ bid, par offered by late day, another source added.

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.

SunSource guidance

SunSource held its bank meeting on Wednesday morning and announced talk on its $1.685 billion seven-year first-lien term loan (B3/B) at SOFR plus 425 bps to 450 bps with a 0% floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

Commitments are due at 5 p.m. ET on March 15, the source added.

The company’s $2.185 billion of credit facilities also include a $500 million five-year ABL revolver.

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 talk

Zekelman Industries came out with talk of SOFR plus 225 bps with a 0% floor, an original issue discount of 99.5 to 99.75 and 101 soft call protection for six months on its $900 million term loan B due Jan. 24, 2031 that launched with a call in the morning, a market source remarked.

Commitments are due at on March 20, the source added.

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

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

ArcLight NGPL holds call

ArcLight NGPL emerged early in the morning with plans to hold a lender call at 11:30 a.m. ET to launch a roughly $714 million term loan B due April 17, 2028 talked at SOFR plus 325 bps with a 1% floor, a par issue price for existing lenders, an original issue discount of 99.75 to par for new money and 101 soft call protection for six months, according to a market source.

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

Barclays is leading the deal that will be used to reprice the company’s existing roughly $714 million term loan B down from SOFR plus 350 bps with a 1% floor.

NGPL is a FERC-regulated natural gas pipeline system.

Vistra Zero readies deal

Vistra Zero set a lender call for noon ET on Thursday to launch a $700 million senior secured term loan B, a market source said.

Citigroup Global Markets Inc. is leading the deal.

Vistra Zero is a Vistra Corp. subsidiary that holds a 1.4 GW portfolio of six unlevered, operating, solar generation and energy storage assets.

Creative Artists on deck

Creative Artists Agency scheduled a lender call for 11 a.m. ET on Thursday to launch a fungible $125 million incremental first-lien term loan B due Nov. 26, 2028 that is talked with an original issue discount of 99.5, according to a market source.

Pricing on the incremental term loan is SOFR plus 350 bps with a 0% floor, in line with existing term loan B pricing.

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

BofA Securities Inc., BNP Paribas Securities Corp., Credit Agricole, HSBC Securities (USA) Inc., JPMorgan Chase Bank, Mizuho, RBC Capital Markets and Truist Securities are leading the deal, which will be used to pre-fund the remainder of the CMC Capital buyout, fund cash to balance sheet, and pay respective fees and expenses, the source added.

Creative Artists is a Los Angeles-based entertainment and sports agency.

LegalShield joins calendar

LegalShield will hold a lender call at 2 p.m. ET on Thursday to launch a fungible $125 million add-on first-lien term loan due 2028, a market source remarked.

Pricing on the term loan is SOFR+CSA plus 375 bps with a 0.5% floor. CSA is ARRC standard of 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

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

RBC Capital Markets and Stone Point Capital Markets are leading the arranger group.

The add-on term loan will be used to repay a portion of the company’s existing second-lien debt and to pay related fees and expenses.

LegalShield, backed by Stone Point Capital, MidOcean Partners and Further Global Capital Management, is an Ada, Okla.-based provider of legal and identity theft protection plans.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.