Internet Brands, TransDigm, KinderCare, DXP Enterprises, ClubCorp, IPS, RadNet break

By Sara Rosenberg

New York, Aug. 16 – Internet Brands Inc. moved some funds between its first-and second-lien term loans and updated pricing, and TransDigm Inc. revised the original issue discount on its term loan G, and then both of these deals emerged in the secondary market on Wednesday.

Also, before freeing to trade, KinderCare (Kuehg Corp.) shifted funds between its term loans and firmed the spread on its second-lien tranche at the low end of talk, and DXP Enterprises Inc. set pricing on its term loan B at the tight side of guidance, and deals from ClubCorp Holdings Inc., IPS Intermediate Holding Corp. and RadNet Management Inc. broke as well.

In more happenings, Trinseo Materials set pricing on its term loan at the low end of talk and modified the issue price, and Eastern Power LLC set pricing on its term loan at the high end of guidance, widened the issue price and extended the call protection.

Furthermore, Give & Go Prepared Foods Corp. lowered the spread on its term loan and tightened the original issue discount, and Grosvenor Capital Management increased the size of its add-on first-lien term loan and tightened the original issue discount.

Internet Brands restructured

Internet Brands lifted its seven-year covenant-light first-lien term loan to $1,115,000,000 from $1.04 billion, set pricing at Libor plus 375 basis points, the high end of the Libor plus 350 bps to 375 bps talk, and added a 25 bps step-down at 4.25 times first-lien net leverage, according to a market source.

Additionally, the company downsized its eight-year covenant-light second-lien term loan to $575 million from $650 million and firmed pricing at Libor plus 750 bps, the low end of the Libor plus 750 bps to 775 bps talk, the source continued.

The first-lien term loan still has a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, and the second-lien term loan still has a 0% Libor floor, a discount of 99 and call protection of 102 in year one and 101 in year two.

Recommitments were due at noon ET on Wednesday.

Along with the new term loans, the company is amending and extending its existing first-lien term loan to make it fungible with the new tranche, and the amended and extended term loan has an original issue discount of 99.5.

Internet Brands starts trading

With final terms in place, Internet Brands’ new debt freed to trade, with the first-lien term loan quoted at 99¾ bid, par 1/8 offered and the second-lien term loan quoted at 99 bid, 99½ offered, a trader added.

Credit Suisse Securities (USA) LLC, RBC Capital Markets LLC, Citigroup Global Markets Inc., Bank of America Merrill Lynch, KKR Capital Markets LLC, Macquarie Capital (USA) Inc. and Mizuho Bank Ltd. are leading the deal, with Credit Suisse the left lead on the first-lien loan and RBC the left lead on the second-lien loan.

Proceeds from the new term loans and equity will be used to fund the acquisition of WebMD Health Corp. for $66.50 per share, or about $2.8 billion.

Closing is expected in the fourth quarter, subject to customary conditions.

The borrowers are MH Sub I LLC and Micro Holding Corp.

Internet Brands, a KKR portfolio company, is an El Segundo, Calif.-based provider of vertically focused online media and software services. WebMD is a New York-based provider of health information services.

TransDigm tweaked, tops OID

TransDigm adjusted the original issue discount on its $1,819,000,000 seven-year first-lien term loan G (Ba2/B+) to 99.75 from 99.5, a market source remarked.

As before, the term loan G is priced at Libor plus 300 bps with a 0.75% Libor floor and has 101 soft call protection for six months.

Recommitments were due at noon ET on Wednesday, and the loan began trading in the afternoon with levels seen at par bid, par ¼ offered before moving up to par 1/8 bid, par 3/8 offered, other sources added.

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to refinance an existing term loan C and fund a shareholder distribution.

Consenting term loan D, term loan E and term loan F lenders were offered a 12.5 bps amendment fee.

TransDigm is a Cleveland-based designer, producer and supplier of highly engineered aircraft components for use on commercial and military aircraft.

KinderCare updated

KinderCare upsized its fungible incremental first-lien term loan due August 2022 to $100 million from $50 million, downsized its eight-year covenant-light second-lien term loan to $210 million from $260 million and firmed second-lien pricing at Libor plus 825 bps, the low end of the Libor plus 825 bps to 850 bps talk, according to a market source.

Pricing on the incremental first-lien term loan is still Libor plus 375 bps with a 1% Libor floor, in line with existing first-lien term loan pricing, and an original issue discount of 99.5, and the debt still includes 101 soft call protection for one year.

The second-lien term loan still has a 1% Libor floor, an original issue discount of 99 and call protection of 102 in year one and 101 in year two.

Recommitments were due at 2 p.m. ET on Wednesday, the source said.

KinderCare frees up

By late day, KinderCare’s new debt began trading, with the first-lien term quoted at 99¾ bid, par ¼ offered and the second-lien term loan quoted at 99½ bid, par offered, another source added.

Credit Suisse Securities (USA) LLC and Barclays are leading the deal that will be used to fund a shareholder distribution.

In connection with this transaction, the company sought an amendment to its existing credit agreement to allow for the distribution, and existing first-lien lenders were offered a 25 bps consent fee.

KinderCare, formerly known as Knowledge Universe, is a Portland, Ore.-based provider of early childhood care and education services.

DXP firms spread, breaks

DXP Enterprises set pricing on its $250 million six-year senior secured term loan B (B3/B+) at Libor plus 550 bps, the low end of the Libor plus 550 bps to 600 bps talk, and left the 1% Libor floor, original issue discount of 99 and 101 soft call protection for six months unchanged, according to a market source.

The company’s $335 million of credit facilities also include an $85 million five-year ABL revolver.

In the afternoon, the term loan made its way into the secondary market and was quoted at 99½ bid, another source added.

Goldman Sachs Bank USA, BMO Capital Markets Corp. and Bank of America Merrill Lynch are leading the deal that will be used to refinance existing debt and for general corporate purposes.

Closing is expected during the week of Aug. 21.

DXP is a Houston-based provider of technical products and services for MRO, OEM and capital equipment customers.

ClubCorp hits secondary

ClubCorp’s credit facilities began trading too, with the $1,175,000,000 seven-year covenant-light term loan B quoted at 99¾ bid, par ¼ offered, a market source said.

Pricing on the term loan is Libor plus 325 bps with a step-down to Libor plus 300 bps at less than 3.25 times net first-lien leverage and a 0% Libor floor. The debt was sold at an original issue discount of 99.5 and has 101 soft call protection for six months.

On Tuesday, the term loan was upsized from $1,125,000,000 as the company’s bond offering was downsized to $425 million from $475 million.

The company’s $1.35 billion senior secured deal (B1/B+) also includes a $175 million revolver.

Citigroup Global Markets Inc., RBC Capital Markets LLC, Barclays, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Goldman Sachs Bank USA are leading the deal that will be used with about $675 million of equity to fund the buyout of the company by Apollo Global Management LLC for $17.12 per share in cash, or about $1.1 billion.

Closing is expected in mid-September, subject to shareholder approval and other conditions.

ClubCorp is a Dallas-based owner and operator of private golf and country clubs and business, sports and alumni clubs.

IPS levels surface

IPS’ fungible $80 million incremental term loan (B2/B) due Dec. 20, 2023 emerged in the secondary as well, with levels seen at par ¼ bid, 101¼ offered, according to a market source.

Pricing on the incremental loan is Libor plus 525 bps with a 1% Libor floor, in line with existing term loan pricing, and the new debt was sold at an original issue discount of 99.5. The loan has 101 soft call protection through Dec. 21.

Jefferies LLC is leading the deal that will be used to fund the acquisition of Dura Plastic Products.

IPS, a portfolio company of Nautic Partners LLC, is a Compton, Calif.-based manufacturer of solvent cements, primers and sealants, plumbing and roofing products, and structural and assembly adhesives.

RadNet breaks

RadNet’s $170 million incremental first-lien term loan (B1) due June 30, 2023 broke, with levels quoted at par bid, 101 offered, a market source said.

Pricing on the term loan is Libor plus 375 bps with a 1% Libor floor, and it was sold at an original issue discount of 99.75. The term loan has a step-up to Libor plus 450 bps if first-lien leverage is more than 5.5 times, and step-downs to Libor plus 350 bps if first-lien leverage is greater than 3.5 times but equal to 4 times and Libor plus 325 bps if first-lien leverage is 3.5 times. Also included in the term loan is 101 soft call protection for one year.

Barclays is leading the deal that will be used to refinance a second-lien term loan.

With this transaction, the company sought an amendment to permit the proposed incremental loan as well as various other requests.

Lenders were offered a 25 bps amendment fee.

RadNet is a Los Angeles-based owner and operator of outpatient diagnostic imaging centers.

Gardner Denver softens

Also in trading, Gardner Denver Inc.’s $1,285,500,000 term loan (B2/B+) due July 2024 was quoted at par bid, par 3/8 offered, down from levels of par 1/8 bid, par ½ offered after it broke for trading on Tuesday, a trader remarked.

Pricing on the term loan is Libor plus 275 bps with a 0% Libor floor and it was issued at par. The debt has 101 soft call protection for six months.

The company is also getting a €615 million term loan (B2/B+) due July 2024 priced at Euribor plus 300 bps with a 0% floor and issued at par. This tranche has 101 soft call protection for six months too.

During syndication, the U.S. term loan was upsized from $1,243,000,000, the euro term loan was downsized from €660 million, the issue price on both loans was tightened from 99.75 and pricing on the euro term loan was reduced from Euribor plus 350 bps.

UBS Investment Bank and KKR Capital Markets are leading the deal that will be used to extend from 2020 and reprice an existing U.S. term loan from Libor plus 325 bps with a 1% Libor floor and an existing euro term loan from Euribor plus 375 bps with a 1% floor.

Gardner Denver is a Milwaukee-based provider of mission-critical flow control and compression equipment and associated aftermarket parts, consumables and services.

Trinseo reworked

Back in the primary market, Trinseo Materials finalized pricing on its $700 million seven-year covenant-light first-lien term loan at Libor plus 250 bps, the low end of the Libor plus 250 bps to 275 bps talk, moved the issue price to par from 99.75 and extended the MFN sunset to 18 months from 12 months, a market source said.

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

On Tuesday, the term loan was downsized from $750 million when the company’s senior notes offering was upsized to $500 million from $450 million.

The company’s $1,075,000,000 of credit facilities also provide for a $375 million revolver.

Final commitments and comments to the credit agreement were due by noon ET on Wednesday, the source added.

Barclays and Deutsche Bank Securities Inc. are leading the deal that will be used to refinance existing debt, including 6.375% euro senior notes, 6.75% U.S. senior notes and credit facilities borrowings.

Trinseo is a Berwyn, Pa.-based materials solutions provider and manufacturer of plastics, latex binders and synthetic rubber.

Eastern Power sets changes

Eastern Power finalized pricing on its $1,636,716,543 senior secured term loan B (B1/BB-) due Oct. 2, 2023 at Libor plus 375 bps, the high end of the Libor plus 350 bps to 375 bps talk, widened the issue price to 99.875 from par and extended the 101 soft call protection to one year from six months, a market source said.

The term loan still has a 1% Libor floor.

Commitments and consents were due at 4 p.m. ET on Wednesday, the source added.

Morgan Stanley Senior Funding Inc. and Goldman Sachs Bank USA are leading the deal that will be used to reprice an existing term loan B down from Libor plus 400 bps with a 1% Libor floor.

Eastern Power is an owner of gas-fired electric generating stations.

Give & Go revises loan

Give & Go Prepared Foods trimmed pricing on its $475 million covenant-light first-lien term loan (B1/B) due July 2023 to Libor plus 425 bps from Libor plus 450 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 1% Libor floor and 101 soft call protection for six months.

Commitments were due at the close of business on Wednesday, the source said.

Deutsche Bank Securities Inc. is the left lead on the deal that will be used for a recapitalization.

Give & Go is a Toronto-based manufacturer of value-added baked goods.

Grosvenor modified

Grosvenor Capital Management raised its fungible add-on first-lien term loan due August 2023 to $100 million from $75 million and changed the original issue discount to 99.75 from 99.5, a market source remarked.

Like the existing term loan, the add-on term loan is priced at Libor plus 300 bps with a 1% Libor floor.

Recommitments were due at 2 p.m. ET on Wednesday, the source added.

Goldman Sachs Bank USA and UBS Investment Bank are leading the deal that will be used to fund a dividend.

Closing is expected during the week of Aug. 21.

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

Aptos allocates

In other news, Aptos Inc. allocated on Wednesday its $83 million incremental term loan B, a market source said.

Pricing on the incremental loan is Libor plus 675 bps with a 1% Libor floor and an original issue discount of 98.5.

The spread and floor on the incremental loan match existing term loan B pricing.

Macquarie Capital (USA) Inc. and Antares Capital are leading the deal that will be used to fund the acquisition of TXT Retail.

Aptos is an Atlanta-based retail technology solutions company.

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