Aveanna, Wabash, Michaels, Pactiv break; Netsmart, PCI, Barrette, Hyland, Ellucian set talk

By Sara Rosenberg

New York, Sept. 17 – Aveanna Healthcare LLC set the spread and original issue discount on its incremental first-lien term loan at the tight end of guidance, and then the debt made its way into the secondary market on Thursday.

Also, before freeing up for trading, Wabash National Corp. lowered pricing on its first-lien term loan and reduced the Libor floor, and Michaels Cos. Inc. upsized its term loan B. Pactiv Evergreen’s first-lien term loan broke as well during the session.

In other news, ECi Software Solutions finalized the spread on its first-lien term loan at the low end of revised guidance, and Netsmart Technologies Inc., PCI Pharma Services (Packaging Coordinators Midco Inc.), Barrette (LEB Holdings (USA) Inc.), Hyland Software Inc. and Ellucian announced price talk with launch.

Furthermore, Ahead DB Holdings and Cambium Learning Group joined the near-term primary calendar.

Aveanna updated, trades

Aveanna Healthcare finalized pricing on its non-fungible $185 million incremental first-lien term loan (CCC+) due March 16, 2024 at Libor plus 625 basis points, the low end of the Libor plus 625 bps to 650 bps talk, and firmed the original issue discount at 98, the tight end of the 97 to 98 guidance, according to a market source.

As before, the term loan has a 1% Libor floor and 101 soft call protection for one year.

On Thursday, the term loan freed to trade and levels were quoted at 98¼ bid, 99¼ offered, another source added.

Barclays, BMO Capital Markets and Jefferies LLC are leading the deal that will be used for general corporate purposes including tuck-in acquisitions, fees and expenses, and balance sheet cash.

Bain Capital and J.H. Whitney are the sponsors.

Aveanna Healthcare is an Atlanta-based home health care company.

Wabash flexes, breaks

Wabash National trimmed the spread on its $150 million seven-year covenant-lite term loan B (Ba3/BB-) to Libor plus 325 bps from talk in the range of Libor plus 350 bps to 375 bps and cut the Libor floor to 0.75% from 1%, a market source remarked.

The term loan still has an original issue discount of 99 and 101 soft call protection for six months.

Commitments continued to be due at noon ET on Thursday and the debt broke for trading later in the day, with levels quoted at 99¾ bid, par ¼ offered, another source added.

Wells Fargo Securities LLC and J.P. Morgan Securities LLC are leading the deal that will be used to refinance an existing term loan B due 2022 and for general corporate purposes.

Wabash is a Lafayette, Ind.-based manufacturer of commercial trailer products.

Michaels upsized, frees up

Michaels lifted its seven-year covenant-lite term loan B to $1.67 billion from $1.62 billion, and left pricing at Libor plus 350 bps with a 0.75% Libor floor and an original issue discount of 98.5, a market source said.

The term loan still has 101 soft call protection for six months.

During the session, the term loan made its way into the secondary market and was quoted at 98½ bid, 99 offered, the source added.

J.P. Morgan Securities LLC, Wells Fargo Securities LLC, BofA Securities inc., Truist, Goldman Sachs Bank USA, Barclays, US Bank, BMO Capital Markets, Fifth Third, Credit Suisse Securities (USA) LLC and UBS Investement Bank are leading the deal that will be used to help refinance an existing term loan and to pay related fees and expenses.

The company is also using $375 million of notes, which were downsized from $500 million, and cash on hand for the refinancing.

Michaels is an Irving, Tex.-based retailer of arts and crafts supplies and home decor products.

Pactiv hits secondary

Pactiv Evergreen’s $1.25 billion covenant-lite first-lien term loan due February 2026 began trading too, with levels quoted at 99 7/8 bid, par ¼ offered, a market source said.

Pricing on the term loan is Libor plus 325 bps with a 0% Libor floor and it was sold at an original issue discount of 99.75. The debt has 101 soft call protection for six months.

During syndication, the term loan was upsized from $1 billion, pricing was cut from Libor plus 350 bps and the discount was tightened from 99.5.

Credit Suisse Securities (USA) LLC and HSBC Securities (USA) Inc. are leading the deal that will be used to refinance existing debt.

Other funds for the refinancing will come from $1 billion of notes. The notes were downsized to $750 million from $1 billion with the recent term loan upsizing, but were revised back to $1 billion upon pricing on Thursday.

Pactiv, formerly known as Reynolds Group Holdings Inc., is a Lake Forest, Ill.-based manufacturer and distributor of fresh foodservice and food merchandising products and fresh beverage cartons.

ECi finalizes pricing

Back in the primary market, ECi Software Solutions set pricing on its $740 million first-lien term loan at Libor plus 375 bps, the low end of revised talk of Libor plus 375 bps to 400 bps and down from initial talk of Libor plus 400 bps to 425 bps, according to a market source.

In addition, the original issue discount on the term loan finalized at 99.5, tight of initial talk in the range of 98.5 to 99, the source said.

The term loan still has a 0.75% Libor floor.

Earlier in syndication, the term loan was upsized from $710 million.

BofA Securities Inc. is the left lead on the deal that will be used with a privately placed second-lien term loan to refinance existing term loans, fund an acquisition and finance a dividend payment.

ECi is a Fort Worth-based provider of cloud-based business management software for multiple industries.

Netsmart sets guidance

Netsmart Technologies held its lender call on Thursday morning and announced talk on its $915 million seven-year term loan B (B3/B-) at Libor plus 400 bps to 425 bps with a 0.75% Libor floor, an original issue discount of 98.5 to 99 and 101 soft call protection for six months, according to a market source.

The company’s $1.015 billion of credit facilities also include a $100 million revolver.

Commitments are due on Sept. 28, the source added.

Goldman Sachs Bank USA is the left lead on the deal that will be used to repay the company’s existing first- and second-lien term loans and to fund an acquisition.

Netsmart is an Overland Park, Kan.-based provider of software and technology solutions to the human services and post-acute care market.

PCI reveals talk

PCI Pharma Services came out with talk of Libor plus 375 bps to 400 bps with one 25 bps step-down at 0.5x inside closing first-lien net leverage and one 25 bps step-down based on an initial public offering, a 0.75% Libor floor and an original issue discount of 99 on its $870 million seven-year senior secured first-lien term loan that launched with a morning call, a market source said.

The first-lien term loan has 101 soft call protection for six months.

Commitments are due on Oct. 1, the source added.

The company’s $1.345 billion of credit facilities also include a $125 million five-year revolver and a $350 million privately placed eight-year senior secured second-lien term loan.

Jefferies LLC, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Antares Capital Markets are leading the deal that will be used to help fund the buyout of the company by Kohlberg & Co. from Partners Group, Thomas H. Lee Partners and Frazier Healthcare Partners. Mubadala Investment Co. will also become a significant investor in PCI. Partners Group will retain a meaningful minority equity stake in the company.

PCI is a Philadelphia-based provider of outsourced pharmaceutical services.

Barrette proposed terms

Barrette launched on its afternoon call its $405 million seven-year covenant-lite first-lien term loan (B) at talk of Libor plus 425 bps to 450 bps with a 0.75% Libor floor and an original issue discount of 98, according to a market source.

The term loan has 101 soft call protection for six months.

Commitments are due at 5 p.m. ET on Sept. 29.

Credit Suisse Securities (USA) LLC, BMO Capital Markets and KKR Capital Markets are leading the deal that will be used to fund the acquisition of the company by TorQuest Partners and Caisse de depot et placement du Quebec.

Barrette is a manufacturer and distributor of wood alternative fence, railing and other outdoor living products.

Hyland shops loan

Hyland Software held a lender call at 2:30 p.m. ET to launch a $664 million incremental covenant-lite first-lien term loan (B1) due July 2024 talked at Libor plus 350 bps with a 25 bps step-down at 4.75x first-lien net leverage, a 0.75% Libor floor and an original issue discount of 99.3 to 99.5, a market source remarked.

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

Commitments are due at 5 p.m. ET on Sept. 24.

Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, UBS Investment Bank, KKR Capital Markets and Stone Point are leading the deal that will be used to fund the acquisition of Alfresco, a Boston-based content services platform and solutions provider.

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

Pricing on the existing first-lien term loan had stepped down to Libor plus 325 bps and will be reset to Libor plus 350 bps with this transaction.

Hyland is a Westlake, Ohio-based content services platform provider.

Ellucian holds call

Ellucian hosted a lender call during the session to launch a $1.6 billion seven-year first-lien term loan (B) talked at Libor plus 400 bps with a 0.75% Libor floor and an original issue discount of 99, a market source said.

Commitments are due at noon ET on Sept. 24, the source added.

The company is also getting a $150 million five-year revolver (B) and a $540 million privately placed eight-year second-lien term loan.

BofA Securities Inc., J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc., Goldman Sachs Bank USA, UBS Investment Bank, BMO Capital Markets, Barclays, Deutsche Bank Securities Inc. and TPG are leading the deal that will be used to refinance existing debt and fund a dividend.

Ellucian is a Reston, Va.-based provider of higher education software and services.

Ahead readies deal

Also in the primary market, Ahead DB set a lender call for 1 p.m. ET on Sept. 24 to launch $900 million of first-lien credit facilities, split between a $115 million revolver, a $675 million first-lien term loan and a $110 million delayed-draw first-lien term loan, according to a market source.

The company is also getting a $235 million second-lien term loan that has been privately placed, the source continued.

RBC Capital Markets, Deutsche Bank Securities Inc., Barclays, KKR Capital Markets, Macquarie Capital (USA) Inc., Truist, Regions and TD Securities (USA) LLC provided the debt commitment that will be used to help fund the buyout of the company by Centerbridge Partners LP from Court Square Capital Partners. With this transaction, Berkshire Partners LLC will purchase a minority stake in the company and there will be significant rollover from management.

Ahead is a Chicago-based IT solution provider of enterprise hardware and software.

Cambium on deck

Cambium Learning Group emerged with plans to hold a lender call at 10 a.m. ET on Wednesday to launch $575 million of term loans, a market source remarked.

The debt consists of a $425 million incremental first-lien term loan and a $150 million incremental second-lien term loan, the source added.

RBC Capital Markets is the left lead arranger on the deal that will be used with balance sheet cash and equity from Veritas Capital, the current owner of Cambium, to fund the acquisition of Rosetta Stone Inc. for $30 per share, representing an equity value of about $792 million.

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

Cambium is a Dallas-based end-to-end provider of K-12 instructional and assessment solutions. Rosetta is an Arlington, Va.-based provider of digital literacy and language education solutions to K-12, consumer and enterprise customers.

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