Atlantic Aviation floats proposed loan terms; new issue calendar for the week builds

By Sara Rosenberg

New York, July 6 – In the primary market on Tuesday, Atlantic Aviation came out with price talk on its first-and second-lien term loans in connection with its afternoon lender call.

Also, Flutter Entertainment, ATI Physical Therapy (ATI Holdings Acquisition Inc.), Navitas Midstream Midland Basin LLC, Healthcare Royalty Inc., Confluence Technologies Inc., AmWINS Group Inc., Meridian Adhesives Group Inc., SVP Worldwide and Lereta LLC joined this week’s primary calendar.

Atlantic Aviation guidance

Atlantic Aviation held its call on Tuesday afternoon and announced price talk on its $1.3 billion seven-year first-lien term loan (B1/B+) and $350 million eight-year second-lien term loan (Caa1/CCC+), a market source said.

The first-lien term loan is talked at Libor plus 300 basis points to 325 bps with leverage-based step-downs and an initial public offering step-down, a 0.5% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, and the second-lien term loan is talked at Libor plus 600 bps to 625 bps with an IPO-based step-down, a 0.5% Libor floor, a discount of 99.5 and call protection of 102 in year one and 101 in year two, the source continued.

The company’s $1.875 billion of credit facilities also include a $225 million five-year revolver (B1/B+).

Commitments are due at noon ET on July 16, the source added.

Atlantic Aviation leads

Jefferies LLC, KKR Capital Markets, Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc., HSBC Securities (USA) Inc., Mizuho, BNP Paribas Securities Corp., ING, Societe Generale, SMBC and Wells Fargo Securities LLC are leading Atlantic Aviation’s credit facilities, with Jefferies the left lead on the first-lien term loan and KKR the left lead on the second-lien term loan.

The new debt will be used to help fund the buyout of the company by KKR from Macquarie Infrastructure Corp. for $4.475 billion in cash and assumed debt and reorganization obligations.

Closing is expected in the fourth quarter, subject to customary regulatory approvals and approval from Macquarie Infrastructure shareholders.

Atlantic Aviation is an operator of fixed base operations, providing a full suite of critical services to the private aviation sector.

Flutter coming soon

Flutter Entertainment set a global lender call for 10 a.m. ET on Wednesday to launch a $1.5 billion equivalent U.S. and euro five-year incremental covenant-lite term loan B, and a repricing and extension of its existing $1.438 billion covenant-lite term loan B and existing €507 million covenant-lite term loan B, according to a market source.

The U.S. and euro term loan debt will have a 0% floor and 101 soft call protection for six months.

The currency split of the incremental term loan is still to be determined, the source said.

Commitments for the term loans (Ba1/BBB-) are due at 10 a.m. ET on July 15, the source added.

Deutsche Bank Securities Inc. is the U.S. sole physical bookrunner, and Barclays and JPMorgan Chase Bank are joint physical bookrunners on the euro. AIB, BofA Securities Inc., BMO Capital Markets, Bank of Ireland, Goldmans Sachs, Lloyds, Mediobanca, Natwest Markets and Santander are bookrunners.

The incremental term loan will be used by the Dublin-based sports betting and gaming operator to fully redeem its existing unsecured notes and for general corporate purposes. The extension will push out the maturity on the existing U.S. and euro term loans by one year to five years.

ATI readies loan

ATI Physical Therapy will hold a lender call at 11 a.m. ET on Thursday to launch a $570 million seven-year first-lien term loan (B), a market source remarked.

The term loan has 101 soft call protection for six months, the source added.

Barclays is the left lead on the deal that will be used to refinance the company’s existing capital structure.

ATI is a Bolingbrook, Ill.-based outpatient physical therapy provider.

Navitas joins calendar

Navitas Midstream scheduled a lender call for 10 a.m. ET on Wednesday to launch a fungible $90 million incremental senior secured term loan B due Dec. 13, 2024 and a repricing of its existing roughly $685 million senior secured term loan B due Dec. 13, 2024, according to a market source.

The term loan debt is getting 101 soft call protection for six months, the source said.

Jefferies LLC, Barclays and PNC Capital Markets are leading the deal.

The incremental term loan will be used to repay a $39 million term loan B-2 and retire up to $50 million of series D equity units.

Navitas is a The Woodlands, Tex.-based natural gas gathering and processing company in the Midland Basin.

Healthcare Royalty on deck

Healthcare Royalty emerged with plans to hold a lender call at 10 a.m. ET on Wednesday to launch a new loan to prospective lenders, a market source said.

Citigroup Global Markets Inc. is the left lead on the deal.

Recently, the company filed an S-1 with the Securities and Exchange Commission and revealed that, prior to its initial public offering of shares of class A common stock, it plans to get a new senior secured revolver and a new senior secured term loan, and issue senior notes due 2029.

Funds from the new debt and IPO will be used to repurchase Holdings LP class B units as part of a reorganization buyback transaction.

Healthcare Royalty is a Stamford, Conn.-based royalty acquisition company focused on the biopharmaceutical industry.

Confluence sets call

Confluence Technologies will hold a lender call at 1 p.m. ET on Thursday to launch $435 million of credit facilities, for which Golub Capital is the left lead, according to a market source.

The facilities consist of a $40 million revolver, a $290 million covenant-lite first-lien term loan and a $105 million covenant-lite second-lien term loan, the source said.

The company is also getting a $75 million first-lien delayed-draw term loan that has been privately placed with Golub.

Proceeds will be used to help fund the buyout of the company by Clearlake Capital Group LP from TA Associates. TA will retain a minority equity stake in the company.

Closing is expected in the third quarter, subject to customary regulatory approvals and conditions.

Confluence is a Pittsburgh-based software provider of performance reporting, analytics, regulatory reporting, risk and data solutions for financial services companies.

AmWINS plans add-on

AmWINS scheduled a lender call for 1 p.m. ET on Wednesday to launch a $500 million add-on term loan B, a market source remarked.

Goldman Sachs Bank USA, Barclays, Wells Fargo Securities LLC, Morgan Stanley Senior Funding Inc. and JPMorgan Chase Bank are leading the deal.

The loan will be used with $890 million of other unsecured debt to repay existing senior unsecured notes, to pay related transaction expenses, to make restricted payments of up to $750 million, and for general corporate purposes, including to fund one or more acquisitions. The company plans to determine the amount of restricted payments based on available acquisition opportunities.

AmWINS is a Charlotte, N.C.-based specialty insurance broker.

Meridian readies deal

Meridian Adhesives set a lender call for 1 p.m. ET on Wednesday to launch a $300 million term loan (B2) talked at Libor plus 375 bps with a 0.75% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months, according to a market source.

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

JPMorgan Chase Bank, RBC Capital Markets and Jefferies LLC are leading the deal that will be used to refinance existing debt and fund acquisitions.

Meridian Adhesives is a manufacturer of high-value adhesive technologies.

SVP on deck

SVP Worldwide plans to hold a lender call at noon ET on Wednesday to launch a $350 million seven-year term loan B, a market source said.

The term loan has 101 soft call protection for six months, the source added.

BofA Securities Inc. is leading the deal that will be used to help fund the buyout of the company by Platinum Equity.

Closing is expected in the third quarter.

SVP is a Nashville, Tenn.-based sewing machine company.

Lereta joins calendar

Lereta set a lender call for 1 p.m. ET on Thursday to launch $280 million of credit facilities (B-), according to a market source.

The facilities consist of a $30 million five-year revolver and a $250 million seven-year term loan B, the source said.

Truist Securities is leading the deal that will be used to help fund the buyout of the company by Flexpoint Ford and Vestar Capital Partners from equity holders, including Tarsadia Investments LLC.

Closing is expected within 30 days.

Lereta is a Pomona, Calif.-based provider of real estate tax and flood services for mortgage servicers.

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