SpecialtyCare, Dimora, MGM Growth, NRG, DTI, Certara break; multiple deals undergo changes

By Sara Rosenberg

New York, March 19 – SpecialtyCare upsized its add-on first-and second-lien term loans and adjusted the issue price on the first-lien tranche and Dimora Brands Inc. set pricing on its term loan at the wide end of guidance before, and then these deals freed up for trading on Monday.

Other deals to make their way into the secondary market during the session included MGM Growth Properties Operating Partnership LP, NRG Energy Inc., DTI Holdco Inc. (Epiq) and Certara.

In more happenings, Omnitracs LLC lowered the spread on its term loan B and revised the original issue discount, and Coronado Australia Holdings Pty. Ltd. lifted pricing on its term loans, widened the issue price and sweetened the call protection.

Also, Wells Enterprises Inc. tightened the spread and original issue discount on its term loan, LifeMiles Ltd. increased the size of its add-on term loan B and adjusted the issue price, and Lindblad Expeditions Inc. reduced pricing on its term loan, added a step-down and adjusted the original issue discount.

Furthermore, Inovalon Holdings Inc., American Greetings Corp., Vyaire Medical Inc., Pharmaceutical Product Development LLC (Jaguar Holding Co. II), CDW LLC, Grosvenor Capital Management, Russell Investments, INAP (Internap Corp.) and Tekni-Plex Inc. released price talk with launch.

Additionally, Wyndham Hotels & Resorts Inc., West Corp., Stars Group Inc., Shearer’s Foods LLC, Vivid Seats LLC, Plaskolite LLC and Tailored Brands Inc. joined this week’s primary calendar.

SpecialtyCare tweaked

SpecialtyCare lifted its fungible add-on first-lien term loan to $29 million from roughly $22 million and modified the original issue discount to 99.875 from 99.5, according to a market source.

Also, the company upsized its fungible add-on second-lien term loan to $16 million from about $15 million, the source said.

As before, the add-on first-lien term loan and repricing of the company’s existing roughly $229 million first-lien term loan are priced at Libor plus 375 basis points with a 25 bps step-down when first-lien leverage is 0.5 times the level at closing and a 1% Libor floor, and have 101 soft call protection for six months.

The add-on second-lien term loan is priced in line with the existing second-lien term loan at Libor plus 825 bps with a 1% Libor floor, and has an original issue discount of 99.

SpecialtyCare hits secondary

With final terms in place, SpecialtyCare’s bank debt made its way into the secondary market, with the first-lien term loan quoted at par ¼ bid, and the second-lien term loan quoted at par ½ bid, the source continued.

Antares Capital is leading the deal.

The add-on term loans will be used to fund a distribution to shareholders and pay transaction fees and expenses, and the repricing will take the existing first-lien term loan down from Libor plus 425 bps with a 1% Libor floor.

Consenting first- and second-lien lenders are getting a 12.5 bps amendment fee.

Closing is expected on Tuesday, the source added.

SpecialtyCare is a Nashville, Tenn.-based provider of outsourced clinical services to hospitals and health systems.

Dimora firms, trades

Dimora Brands finalized pricing on its $254 million first-lien term loan (B2/B) due August 2024 at Libor plus 350 bps, the high end of the Libor plus 325 bps to 350 bps talk, and left the 1% Libor floor, par issue price and 101 soft call protection for six months unchanged, according to a market source.

After final terms were put in place, the loan began trading and levels were quoted at par ¼ bid, par ¾ offered, another source said.

Deutsche Bank Securities Inc., Antares Capital and Bank of Ireland are leading the deal that will be used to reprice an existing term loan down from Libor plus 400 bps with a 1% Libor floor.

Closing is expected on Friday.

Dimora is a Dallas-based designer, distributor and manufacturer of decorative and functional hardware as well as decorative wood and other products for the kitchen and bath industry.

MGM Growth tops par

MGM Growth Properties’ $1,818,000,000 seven-year covenant-light term loan B also began trading, with levels quoted at par 1/8 bid, par 3/8 offered, a trader said.

Pricing on the loan is Libor plus 200 bps with a step-down to Libor plus 175 bps upon a corporate family rating upgrade by either agency and a 0% Libor floor. The debt was sold at an original issue discount of 99.75 and has 101 soft call protection for six months.

During syndication, the spread on the loan firmed at the high end of the Libor plus 175 bps to 200 bps talk and the step-down was added.

Bank of America Merrill Lynch is the left lead arranger on the deal that will be used to amend and extend an existing term loan B due April 25, 2023.

MGM Growth Properties is a Las Vegas-based real estate investment trust engaged in the acquisition, ownership and leasing of large-scale destination entertainment and leisure resorts.

NRG begins trading

NRG Energy’s $1,871,500,000 senior secured term loan B due June 2023 emerged in the secondary market, with levels quoted at par bid, par ¼ offered, a market source remarked.

The term loan is priced at Libor plus 175 bps with a 0% Libor floor and was issued at par. The debt has 101 soft call protection for six months.

With this transaction, 50 bps MFN for life was added to the loan documentation, another source added.

Goldman Sachs Bank USA is leading the deal that will be used to reprice an existing term loan B down from Libor plus 225 bps with a 0.75% Libor floor. Citigroup Global Markets Inc. is the administrative agent.

Closing is expected on Wednesday.

NRG is a power producer with headquarters in Princeton, N.J., and Houston.

DTI Holdco breaks

DTI Holdco’s $1.18 billion covenant-light term loan B due Sept. 30, 2023 freed up, with levels seen at par 1/8 bid, par 5/8 offered, according to a trader.

Pricing on the term loan is Libor plus 475 bps with a 1% Libor floor and it was issued at par. The loan has 101 soft call protection for six months.

During syndication, pricing on the term loan firmed at the high end of the Libor plus 450 bps to 475 bps talk and the issue price finalized at the tight end of the 99.75 to par talk.

Bank of America Merrill Lynch is leading the deal that will be used to refinance an existing term loan B priced at Libor plus 525 bps with a 1% Libor floor.

DTI is a Kansas City, Kan.-based provider of integrated technology and services for the legal profession.

Certara frees up

Certara’s fungible $40 million incremental first-lien term loan (B2/B) due Aug. 15, 2024 and repricing of its existing $274,375,000 first-lien term loan (B2/B) due Aug. 15, 2024 broke too, with levels seen at par ¼ bid, 101 offered, a market source remarked.

Pricing on the term loan debt is Libor plus 350 bps with a 0% Libor floor and it was issued at par. The debt has 101 soft call protection for six months.

Jefferies LLC is leading the deal.

Proceeds from the incremental loan will be used to fund an acquisition, and the repricing will take the existing term loan down from Libor plus 400 bps with leverage-based step-downs and a 1% Libor floor.

Certara is a Princeton, N.J.-based provider of technology-driven decision support solutions for drug development.

Omnitracs reduces pricing

Back in the primary market, Omnitracs cut the spread on its $745 million seven-year first-lien term loan B to Libor plus 275 bps from Libor plus 300 bps and modified the original issue discount to 99.75 from 99.5, according to a market source.

As before, the term loan has a 0% Libor floor and 101 soft call protection for six months.

The company’s $795 million of credit facilities (B2/B) also include a $50 million five-year revolver.

Recommitments were scheduled to be due at 5 p.m. ET on Monday, the source said.

Barclays, Credit Suisse Securities (USA) LLC, Macquarie Capital (USA) Inc., ING, Vista and Guggenheim are leading the deal that will be used to repay the company’s existing first- and second-lien term loans.

Omnitracs is a Dallas-based provider of mission-critical fleet and mobile enterprise software.

Coronado reworked

Coronado Australia Holdings raised pricing on its $550 million seven-year term loan B (B1/B+) and $150 million seven-year term loan C (B1/B+) to Libor plus 650 bps from Libor plus 625 bps, moved the original issue discount on the loans to 97 from 99 and changed the call protection to a 101 hard call for one year, with the excess cash flow sweep at par, from a 101 soft call for six months, a market source remarked. The 1% Libor floor was unchanged.

Another change was that the incremental free and clear was reduced to $200 million from $400 million and the unlimited is set at up to secured net leverage Ratio of 0.5 times with a hard dollar amount cap of $500 million including the free and clear. Voluntary repayments do not increase the incremental facility and MFN protection also includes secured notes.

Commitments are due at noon ET on Tuesday and allocations are expected thereafter, the source added.

Deutsche Bank Securities Inc. and Goldman Sachs Bank USA are leading the deal that will be used for the acquisition of the Curragh coal mine in central Queensland, Australia from Wesfarmers Ltd. for A$700 million.

Coronado Australia is a metallurgical coal producer. Parent Coronado Coal, LLC is based in Beckley, W.Va., and is a portfolio company of private equity company Energy & Minerals Group.

Wells Enterprises revised

Wells Enterprises lowered pricing on its $175 million covenant-light term loan (B1/BB) due 2025 to Libor plus 275 bps from talk in the range of Libor plus 300 bps to 325 bps and tightened the original issue discount to 99.75 from 99.5, a market source said.

The term loan still has a 0% Libor floor and 101 soft call protection for six months.

Commitments are due at 5 p.m. ET on Tuesday, accelerated from 5 p.m. ET on Thursday, the source added.

BMO Capital Markets is leading the deal that will be used to refinance existing debt.

Wells Enterprises is a Le Mars, Iowa-based family owned ice cream and frozen treat manufacturer.

LifeMiles modifies loan

LifeMiles lifted its add-on term loan B due August 2022 to $95 million from $65 million and changed the issue price to 101.5 from 101, according to a market source.

Like the existing loan, the add-on loan is priced at Libor plus 550 bps with a 1% Libor floor, and has hard call protection of 102 through August 2018 and 101 through August 2019.

Commitments are due at 5 p.m. ET on Tuesday, moved up from Wednesday, the source said.

Deutsche Bank Securities Inc. is leading the deal that will be used to fund a distribution to shareholders and related fees and expenses alongside an amendment to the credit agreement.

LifeMiles is a Latin American coalition loyalty program and the exclusive operator of Avianca’s frequent flyer program.

Lindblad updated

Lindblad Expeditions trimmed pricing on its $200 million seven-year first-lien term loan to Libor plus 350 bps from talk in the range of Libor plus 375 bps to 400 bps, added a 25 bps step-down at no worse than B1 (stable)/BB- (negative) ratings and revised the original issue discount to 99.75 from 99.5, a market source said.

The term loan still has a 0% Libor floor and 101 soft call protection for six months.

The company’s $245 million of credit facilities (B2/BB) also include a $45 million revolver.

Commitments are due at 5 p.m. ET on Tuesday, accelerated from 5 p.m. ET on Wednesday, the source added.

Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC and Citigroup Global Markets Inc. are leading the deal that will be used to refinance existing debt and add cash to the balance sheet.

Lindblad Expeditions is a New York-based expedition cruising and extraordinary adventure travel company.

Inovalon sets guidance

Also in the primary market, Inovalon Holdings held its lender presentation on Monday and announced price talk on its $100 million five-year revolver and $980 million seven-year covenant-light term loan B at Libor plus 275 bps to 300 bps with a 0% Libor floor, according to a market source.

The term loan B is also talked with an original issue discount of 99.5 and 101 soft call protection for six months, the source said.

Commitments are due at 5 p.m. ET on March 28.

Morgan Stanley Senior Funding Inc., Citigroup Global Markets Inc., Goldman Sachs Bank USA and J.P. Morgan Securities LLC are leading the $1.08 billion of senior secured credit facilities (B) that will be used with cash on hand to fund the acquisition of Ability Network for $1.1 billion in cash and $100 million in restricted Inovalon stock.

Closing is expected in April, subject to customary conditions and regulatory approvals.

Pro forma net debt to adjusted EBITDA will be about 4.1 times at year-end 2018.

Inovalon is a Bowie, Md.-based technology company. Ability is a Minneapolis-based cloud-based software-as-a-service technology company.

American Greetings price talk

American Greetings disclosed talk of Libor plus 375 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months on its $445 million seven-year term loan B that launched with an afternoon bank meeting, a market source said.

The company’s $695 million of credit facilities (Ba3/B+) also include a $250 million revolver.

Commitments are due at noon ET on March 29, the source added.

Barclays, Deutsche Bank Securities Inc., Citizens Bank, ING Capital LLC, Bank of America Merrill Lynch, HSBC Bank USA, Sumitomo Mitsui Financial Group, KeyBanc Capital Markets and CIBC are leading the deal that will be used with $325 million of new senior unsecured notes to fund the acquisition by Clayton, Dubilier & Rice of a 60% ownership stake in the company.

The Weiss Family will retain a 40% stake in the business.

American Greetings is a Cleveland-based designer, manufacturer and distributor of greeting cards, gift packaging, party goods and stationery products.

Vyaire terms surface

Vyaire Medical launched with an afternoon bank meeting its $360 million seven-year covenant-light first-lien term loan B (B2/B-) at talk of Libor plus 425 bps to 450 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, according to a market source.

Commitments are due at noon ET on April 4, the source said.

Bank of America Merrill Lynch, RBC Capital Markets, ING, Natixis and Mizuho are leading the deal that will be used along with a new $90 million second-lien term loan (Caa2/CCC) to finance Apax’s acquisition of the existing minority shareholder’s stake in the company and to fund contemplated acquisitions.

Vyaire Medical is a Mettawa, Ill.-based pure play medical device company in the respiratory space.

Pharmaceutical Product launches

Pharmaceutical Product Development emerged in the morning with plans to hold a lender call at 10:30 a.m. to launch a $3,161,000,000 covenant-light first-lien term loan (Ba3/B) due Aug. 18, 2022 talked at Libor plus 250 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Commitments are due on Thursday, the source said.

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to reprice an existing term loan down from Libor plus 275 bps with a 1% Libor floor.

Pharmaceutical Product Development is a Wilmington, N.C.-based contract research organization focused on clinical development and laboratory services.

CDW holds call

CDW hosted a lender call at 1 p.m. ET on Monday to launch a $1,468,068,625 senior secured covenant-light term loan B due Aug. 17, 2023 talked at Libor plus 175 bps with a 0% Libor floor, a par issue price and 101 soft call protection for six months, a market source said.

Commitments/consents are due at 5 p.m. ET on March 28, the source added.

Morgan Stanley Senior Funding Inc., Barclays, J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Wells Fargo Securities LLC, MUFG, Capital One, Goldman Sachs Bank USA, RBC Capital Markets and U.S. Bank are leading the deal that will be used to reprice an existing term loan B down from Libor plus 200 bps with a 0% Libor floor.

CDW is a Lincolnshire, Ill.-based technology solutions provider to business, government, education and health care organizations.

Grosvenor reveals guidance

Grosvenor Capital Management launched on its call its $466 million senior secured term loan B due March 2025 at talk of Libor plus 275 bps to 300 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, according to a market source.

Commitments are due on March 27, the source said.

Goldman Sachs Bank USA and UBS Investment Bank are leading the deal that will be used to amend and extend an existing term loan B due August 2023 priced at Libor plus 300 bps with a 1% Libor floor.

Grosvenor Capital is a Chicago-based independent alternative asset management firm.

Russell Investments talk

Russell Investments released talk of Libor plus 325 bps to 350 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months on its $838 million first-lien term loan B due June 1, 2023 that launched with an afternoon call, a market source remarked.

Commitments are due at noon ET on Friday.

Barclays, Macquarie Capital (USA) Inc. and Credit Suisse Securities (USA) LLC are leading the deal that will be used to reprice an existing term loan B down from Libor plus 425 bps with a 1% Libor floor.

Russell Investments is a Seattle-based asset manager.

INAP details emerge

INAP launched on its call a $433.5 million first-lien term loan talked at Libor plus 550 bps to 575 bps with a 1% Libor floor and 101 soft call protection for six months, the company revealed in an 8-K filed with the Securities and Exchange Commission.

The term loan is being offered at par, a market source said.

Commitments are due on Friday morning, another source added.

Jefferies LLC is leading the deal that will be used to reprice an existing first-lien term loan down from Libor plus 700 bps with a 1% Libor floor.

Net debt to adjusted EBITDA is 5 times and total debt to adjusted EBITDA is 5.1 times.

INAP is an Atlanta-based provider of IT Infrastructure solutions.

Tekni-Plex floats OID

Tekni-Plex came out with original issue discount talk of 99.75 to par on its $126 million incremental covenant-light first-lien term loan due October 2024 that launched with an afternoon lender call, a market source said.

The incremental term loan, of which $48 million is delayed-draw, is priced at Libor plus 325 bps with a 25 bps leverage-based step-down and a 1% Libor floor, in line with existing term loan pricing, and has 101 soft call protection for six months.

Included in the delayed-draw tranche is a ticking fee of half the margin from days 46 to 75 and the full margin thereafter.

Commitments are due at 5 p.m. ET on March 27.

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to fund tuck-in acquisitions.

Tekni-Plex is a King of Prussia, Pa.-based provider of specialty packaging solutions.

Wyndham coming soon

Wyndham Hotels & Resorts will hold a bank meeting at 10 a.m. ET in New York on Tuesday to launch a $1.6 billion seven-year covenant-light term loan B (Baa3/BBB-), according to a market source.

Bank of America Merrill Lynch, Barclays, Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Wells Fargo Securities LLC, SunTrust Robinson Humphrey Inc., Bank of Nova Scotia, MUFG and US Bank are leading the deal that will be used to help fund the acquisition of La Quinta Holdings Inc.’s hotel franchise and hotel management businesses for $1.95 billion in cash.

Under the transaction, stockholders of La Quinta will receive $8.40 per share in cash, about $1 billion in aggregate, and Wyndham will repay approximately $715 million of La Quinta debt net of cash and set aside a reserve of $240 million for estimated taxes expected to be incurred in connection with the taxable spin-off of La Quinta’s owned real estate assets into CorePoint Lodging Inc.

Closing is expected in the second quarter, subject to approval by La Quinta stockholders, regulatory and government approval and the satisfaction of other customary conditions.

Wyndham Hotels is a Parsippany, N.J.-based hotel franchisor.

West readies loan

West Corp. set a bank meeting for 10 a.m. ET in New York on Tuesday to launch a $350 million incremental first-lien term loan due Oct. 10, 2024 talked at Libor plus 400 bps with a 1% Libor floor and 101 soft call protection through October 2018, a market source remarked. Original issue discount talk on the loan has not yet been announced.

Spread and floor on the incremental loan matches existing term loan pricing.

Commitments are due on March 27, the source added.

Credit Suisse Securities (USA) LLC is leading the deal and RBC Capital Markets is involved as well.

The term loans will be used to fund the acquisition of the public relations and webcasting and webhosting products and services within Nasdaq Inc.’s Corporate Solutions business for about $335 million, subject to adjustments.

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

West is an Omaha-based provider of communication and network infrastructure services.

Stars on deck

Stars Group scheduled a lender call at 10 a.m. ET for Tuesday to launch $2,795,000,000 in term loans (B+), split between a $2,196,000,000 seven-year covenant-light term loan and a $599 million euro equivalent seven-year covenant-light term loan, according to a market source.

The term loans have a 0% floor and 101 soft call protection for six months, the source said.

Commitments are due at 5 p.m. ET on March 28.

Deutsche Bank Securities Inc. and Macquarie Capital (USA) Inc. are leading the deal that will be used to amend and extend a $1,896,000,000 term loan and a $474 million euro equivalent term loan, and the $425 million in incremental debt raised will be used to fund recent acquisitions and repay second-lien term loan borrowings.

Stars Group is a Toronto-based provider of technology-based products and services in the gaming and interactive entertainment industries.

Shearer’s joins calendar

Shearer’s Foods will hold a bank meeting in New York on Thursday to launch a $235 million incremental term loan, a market source said.

Antares Capital and Golub Capital are leading the deal that will be used to redeem in full the $235 million principal amount outstanding under the company’s existing senior secured notes.

Shearer’s Foods, a portfolio company of Ontario Teachers’ Pension Plan, is a Massillon, Ohio-based private label supplier and contract manufacturer of salty snacks, cookies and crackers.

Vivid Seats repricing

Vivid Seats scheduled a lender call for 2 p.m. ET on Tuesday to launch a $522 million first-lien term loan B due June 30, 2024, according to a market source.

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

Barclays, RBC Capital Markets, SunTrust Robinson Humphrey Inc. and Jefferies LLC are leading the deal that will be used to reprice an existing first-lien term loan B.

Vivid Seats is a Chicago-based secondary ticket marketplace for live sports, concerts and theater events.

Plaskolite deal surfaces

Plaskolite set a lender call for Wednesday to launch $246 million of incremental term loans and a repricing of its existing $347 million of term loans, a market source remarked.

Antares Capital and KeyBanc Capital Markets are leading the deal.

The incremental term loans will be used to fund acquisitions and a shareholder distribution.

Plaskolite, a portfolio company of Charlesbank Capital Partners LLC, is a Columbus, Ohio-based manufacturer of custom acrylic and other plastic products servicing a variety of end markets and applications.

Tailored Brands refinancing

Tailored Brands intends to hold a lender meeting on Tuesday to launch $900 million in term loans (Ba3) that will be used to refinance existing term loans, according to an 8-K filed with the Securities and Exchange Commission on Monday.

The debt consists of a $600 million term loan due 2025 talked at Libor plus 325 bps to 350 bps with a 1% Libor floor and an original issue discount of 99.5, and a $300 million fixed-rate term loan due 2025 talked at 6% to 6.25% with a discount of 99.5.

J.P. Morgan Securities LLC, Bank of America Merrill Lynch and Wells Fargo Securities LLC are leading the deal.

Tailored Brands is a Fremont, Calif.-based specialty retailer of men’s tailored clothing.

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