California Resources, BroadStreet, Utz, ON Semi, Wabash break; National Vision revised

By Sara Rosenberg

New York, Nov. 14 – California Resources Corp. firmed the spread on its term loan at the low end of revised guidance and BroadStreet Partners Inc. set pricing on its term debt at the tight side of talk, and then both of these deals freed up for trading on Tuesday.

Other deals to emerge in the secondary market during the session included Utz Quality Foods LLC, ON Semiconductor Corp. and Wabash National Corp.

Back in the primary market, National Vision Inc. raised pricing on its first-lien term loan and added a rating-based step-down, and Packers Sanitation Services Inc., ExGen Renewables IV LLC and Excelitas Technologies Corp. accelerated the commitment deadlines on their loans.

Also, US Foods Inc., Go Daddy Operating Co. LLC, Blucora Inc., Veresen Midstream LP, Lions Gate Entertainment Corp., 84 Lumber Co., NXT Capital Inc., Equinox Holdings Inc. and Alight Solutions released price talk with launch.

Furthermore, Lantheus Medical Imaging Inc., Diamond Resorts International Inc. and Floor & Decor emerged with new deal plans.

California Resources updated, trades

California Resources set pricing on its $1.3 billion five-year term loan (B2/B) at Libor plus 475 basis points, the tight end of revised talk of Libor plus 475 bps to 500 bps and down from initial talk of Libor plus 550 bps, according to a market source.

The term loan still has a 1% Libor floor, an original issue discount of 98 and 102 call protection that steps down to par 90 days prior to maturity.

Earlier in syndication, the term loan was upsized from $1 billion and the discount was changed from 97.

With final terms in place, the loan broke for trading and levels were seen at 99 bid, par offered, another source said.

Goldman Sachs Bank USA and J.P. Morgan Securities LLC are leading the deal that will be used to refinance existing debt, including, due to the recent upsizing, a $200 million term loan A in full and $100 million of RBL borrowings.

Closing is expected on Friday.

California Resources is a Los Angeles-based oil and natural gas exploration and production company.

BroadStreet firms, frees up

BroadStreet Partners finalized the spread on its fungible $175 million add-on term loan B (B2/B) due November 2023 and repricing of its existing $407 million term loan B (B2/B) due November 2023 at Libor plus 375 bps, the low end of the Libor plus 375 bps to 400 bps talk, a market source said.

As before, the debt has a 1% Libor floor and 101 soft call protection for six months, the add-on has an original issue discount of 99.75 and the repricing has a par issue price.

After terms were set, the term debt made its way into the secondary market and levels were quoted at par 1/8 bid, par 5/8 offered, a trader added.

RBC Capital Markets, Bank of America Merrill Lynch and SunTrust Robinson Humphrey Inc. are leading the deal.

The add-on loan will be used to repay revolver borrowings and to fund a shareholder distribution, and the repricing will take the existing term loan down from Libor plus 425 bps with a 1% Libor floor.

BroadStreet is a Columbus, Ohio-based insurance broker.

Utz hits secondary

Utz Quality Foods’ term debt began trading, with the $535 million seven-year covenant-light first-lien term loan (B2/B) quoted at par bid, par ˝ offered and the $125 million eight-year covenant-light second-lien term loan (Caa1/CCC+) quoted at 99˝ bid, par ˝ offered, a market source remarked.

Pricing on the first-lien term loan is Libor plus 350 bps with a 0% Libor floor and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months.

The second-lien term loan is priced at Libor plus 725 bps with a 0% Libor floor and was issued at a discount of 98.75. This tranche has hard call protection of 102 in year one and 101 in year two.

During syndication, pricing on the first-lien term loan was lowered from Libor plus 375 bps and the discount on the second-lien loan firmed at the midpoint of the 98.5 to 99 talk.

Bank of America Merrill Lynch is leading the deal that will be used to fund the acquisition of Inventure Foods Inc., a Phoenix-based specialty food marketer and manufacturer, for $4.00 per share in cash, to finance the purchase of Metropoulos and Co.’s minority stake in Utz and to refinance existing debt.

Closing is expected this quarter, subject to customary conditions.

Utz is a Hanover, Pa.-based salty snack manufacturer and marketer.

ON Semiconductor breaks

ON Semiconductor’s $1,205,000,000 covenant-light term loan B (Ba1/BB) due March 2023 freed to trade too, with levels quoted at par 3/8 bid, par 5/8 offered, according to a market source.

The term loan is priced at Libor plus 200 bps with a 0% Libor floor and was issued at par. The debt includes 101 soft call protection for six months.

Deutsche Bank Securities Inc., Bank of America Merrill Lynch, BMO Capital Markets Corp., HSBC Securities (USA) Inc., SMBC and MUFG are leading the deal that will be used to reprice an existing term loan down from Libor plus 225 bps with a 0% Libor floor.

Closing is expected on Nov. 30.

With the repricing, the term loan B is being paid down by $400 million to the $1,205,000,000 amount with funds from a revolver draw.

The company is upsizing its revolver to $1 billion from $600 million as part of this transaction, so its liquidity position will be unchanged as it is essentially drawing the same amount as the upsize.

ON Semiconductor is a Phoenix-based semiconductor company.

Wabash starts trading

Wabash National’s $188 million covenant-light term loan B due March 19, 2022 also broke, with levels seen at par 1/8 bid, par ˝ offered, a market source remarked.

Pricing on the loan is Libor plus 225 bps with a 0% Libor floor and it was issued at par. The debt has 101 soft call protection for six months.

Wells Fargo Securities LLC is leading the deal that will be used to reprice an existing term loan B down from Libor plus 275 bps with a 0% Libor floor.

Wabash is a Lafayette, Ind.-based diversified industrial manufacturer and a producer of semi-trailers and liquid transportation systems.

National Vision tweaked

Returning to the primary market, National Vision lifted pricing on its $570 million first-lien term loan (B1/B+) due November 2024 to Libor plus 275 bps from talk of Libor plus 250 bps and added a step-down to Libor plus 250 bps if Moody’s corporate rating of Ba3 is achieved, according to a market source.

As before, the term loan has a 0% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months.

Recommitments were due at 5 p.m. ET on Tuesday, the source said.

Goldman Sachs Bank USA, KKR Capital Markets, Bank of America Merrill Lynch, Citigroup Global Markets Inc., Morgan Stanley Senior Funding Inc., Jefferies LLC, UBS Investment Bank, Wells Fargo Securities LLC, Mizuho and Macquarie Capital (USA) Inc. are leading the deal that will be used to amend/refinance an existing term loan due March 2021 that is priced at Libor plus 300 bps with a 1% Libor floor.

National Vision is a Duluth, Ga.-based optical retailer.

Packers moves deadline

Packers Sanitation Services accelerated the commitment deadline on its $625 million of credit facilities (B-/B+) to 1 p.m. ET on Wednesday from Friday, a market source remarked.

The facilities consist of a $50 million revolver and a $575 million seven-year first-lien term loan.

Talk on the term loan is Libor plus 325 bps to 350 bps with a 25 bps step-down at 4.5 times net first-lien leverage, a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

Jefferies LLC and Nomura are leading the deal that will be used to recapitalize the structure of the company and fund a distribution to shareholders.

Other funds for the transaction will come from $280 million of privately placed senior unsecured notes.

Packers Sanitation is a Kieler, Wis.-based provider of mission-critical outsourced cleaning and sanitation services to the food processing industry.

ExGen changes timing

ExGen Renewables revised the commitment deadline on its $750 million seven-year senior secured term loan B (Ba2/BB+) to noon ET on Thursday from noon ET on Friday, a market source said.

Talk on the loan is Libor plus 325 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to make a distribution to Exelon Corp., fund debt service reserve and liquidity accounts and pay related transaction fees and expenses.

ExGen Renewables, an indirect wholly owned subsidiary of Exelon, indirectly owns a material interest in 33 operating renewable generation projects located within the U.S. with a total capacity of about 1,791 MW.

Excelitas accelerated

Excelitas Technologies moved up the commitment deadline on its $505 million seven-year first-lien term loan (B-), €250 million seven-year first-lien term loan (B-) and $260 million eight-year second-lien term loan (CCC+) to Wednesday from noon ET on Friday, according to a market source.

The U.S. first-lien term loan is talked at Libor plus 375 bps to 400 bps with a 1% Libor floor and an original issue discount of 99.5, the euro first-lien term loan is talked at Euribor plus 375 bps to 400 bps with a 0% floor and a discount of 99.5, and the second-lien term loan is talked at Libor plus 775 bps to 800 bps with a 1% Libor floor and a discount of 99.

Included in the first-lien term loans is 101 soft call protection for six months, and the second-lien term loan has hard call protection of 102 in year one and 101 in year two.

J.P. Morgan Securities LLC is the left lead on the deal that will be used to help fund the buyout of the company by AEA Investors from Veritas Capital.

Closing is expected this quarter.

Excelitas is a Waltham, Mass.-based optoelectronics provider to military and defense customers and commercial original equipment manufacturers.

US Foods launches

Also in the primary market, US Foods launched in the morning a $2,173,000,000 senior secured covenant-light term loan B (B1/BB) due June 27, 2023 at talk of Libor plus 225 bps with a 0% Libor floor, a par issue price and 101 soft call protection for six months, a market source said.

Citigroup Global Markets Inc. is leading the deal that will be used to reprice an existing term loan down from Libor plus 275 bps with a 0.75% Libor floor.

Cashless roll commitments are due at 5 p.m. ET on Monday and new money commitments are due at noon ET on Nov. 21, the source added.

Closing is expected on Nov. 30.

US Foods is a Chicago-based broadline foodservice distributor.

Go Daddy repricing

Go Daddy launched without a call a $2,489,000,000 senior secured covenant-light term loan B due February 2024 at talk of Libor plus 200 bps with a 0% Libor floor, an original issue discount of 99.875 to par and 101 soft call protection for six months, according to a market source.

Proceeds will be used to reprice an existing term loan down from Libor plus 250 bps with a 0% Libor floor.

Commitments from existing lenders are due at noon ET on Thursday and from new lenders are due at noon ET on Friday, the source said.

Deutsche Bank Securities Inc. and KKR Capital Markets are the joint lead arrangers on the deal and joint bookrunners with Barclays, Morgan Stanley Senior Funding Inc., RBC Capital Markets, J.P. Morgan Securities LLC, Citigroup Global Markets Inc., HSBC Securities (USA) Inc. and Societe Generale.

Go Daddy is Scottsdale, Ariz.-based provider of web hosting and domain names.

Blucora reveals guidance

Blucora came out with talk of Libor plus 300 bps to 325 bps with a 1% Libor floor and a par issue price on its $350 million covenant-light first-lien term loan (B1/BB-) due May 2024 in the morning, a few hours ahead of its afternoon lender call, according to a market source.

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

Commitments are due on Friday.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to reprice an existing first-lien term loan down from Libor plus 375 bps with a 1% Libor floor.

Blucora is a Bellevue, Wash.-based technology-enabled financial solutions provider focused on tax preparation and financial advisory services.

Veresen holds call

Veresen Midstream emerged in the morning with plans to hold a lender call at 1 p.m. ET to launch a $709 million term loan B (Ba3/BB-) due March 21, 2022 talked at Libor plus 300 bps with no Libor floor, a par issue price and 101 soft call protection for six months, a market source said.

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

RBC Capital Markets, TD Securities (USA) LLC, HSBC Securities (USA) Inc. and KKR Capital Markets are leading the deal that will be used to reprice an existing term loan down from Libor plus 350 bps with a 1% Libor floor.

Veresen is a Calgary, Alta.-based jointly owned limited partnership between Veresen Inc. and Kohlberg Kravis Roberts & Co. LP that was formed in March 2015 to build, own and operate natural gas gathering and processing infrastructure in Western Canada.

Lions Gate comes to market

Lions Gate hosted a lender call during the session to launch a $925 million term loan B (Ba2/BB-) due December 2023 at talk of Libor plus 225 bps to 250 bps with a 0.75% Libor floor and 101 soft call protection for six months, according to an 8-K filed with the Securities and Exchange Commission.

Commitments are due on Monday.

J.P. Morgan Securities LLC is the administrative agent on the deal that will be used to reprice an existing term loan B down from Libor plus 300 bps with a 0.75% Libor floor.

Closing is expected on Dec. 8.

Lions Gate is a Santa Monica, Calif.-based entertainment company.

84 Lumber sets talk

84 Lumber released talk of Libor plus 475 bps with a 1% Libor floor and a par issue price on its $343.4 million covenant-light term loan B due Oct. 25, 2023 that launched with a morning lender call, according to a market source.

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

Commitments are due at noon ET on Friday.

Wells Fargo Securities LLC is leading the deal that will be used to reprice an existing term loan B down from Libor plus 575 bps with a 1% Libor floor.

84 Lumber is an Eighty Four, Pa.-based supplier of building materials, manufactured components and services for single and multi-family residences and commercial buildings.

NXT details emerge

NXT Capital launched on its afternoon call a $373 million term loan B due November 2022 at talk of Libor plus 350 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, a market source remarked.

Commitments are due on Nov. 21, the source added.

RBC Capital Markets LLC is leading the deal that will be used to reprice an existing term loan B down from Libor plus 450 bps with a 1% Libor floor.

NXT is a Chicago-based middle-market focused direct lender and asset manager.

Equinox launches loan

Equinox Holdings held a lender call to launch a $796 million first-lien term loan B at talk of Libor plus 275 bps to 300 bps with a 1% Libor floor and 101 soft call protection for six months, a market source said.

Commitments are due on Friday, the source added.

Bank of America Merrill Lynch is leading the deal that will be used to reprice an existing first-lien term loan down from Libor plus 325 bps with a 1% Libor floor.

Equinox is a New York-based exercise and fitness company.

Alight seeks add-on

Alight Solutions launched a fungible $185 million add-on covenant-light term loan B at talk of Libor plus 300 bps with a step-down to Libor plus 275 bps at 4.25 times net first-lien leverage, a 0% Libor floor and an original issue discount of 99.5, according to a market source.

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

Bank of America Merrill Lynch is the left lead on the deal that will be used to with a $200 million add-on 6.75% senior unsecured notes offering and $25 million of cash on hand to fund a return of capital to shareholders.

Alight Solutions, formerly known as Tempo Acquisition LLC, is a Lincolnshire, Ill.-based provider of benefits outsourcing services plans.

Lantheus joins calendar

Lantheus Medical Imaging will hold a lender call at 11:30 a.m. ET on Wednesday to launch a $274 million term loan (B+), a market source remarked.

Citizens Bank and Wells Fargo Securities LLC are leading the deal that will be used to reprice an existing term loan from Libor plus 450 bps with a 1% Libor floor.

Lantheus Medical is a North Billerica, Mass.-based developer, manufacturer, seller and distributor of diagnostic imaging agents.

Diamond readies deal

Diamond Resorts set a lender call for 1 p.m. ET on Wednesday to launch a repricing of its existing term loan B due 2023, according to a market source.

RBC Capital Markets, Barclays and Apollo Global Securities are leading the deal.

Diamond Resorts is a Las Vegas-based hospitality and vacation ownership company.

Floor & Decor on deck

Floor & Decor scheduled a lender call for 11 a.m. ET on Wednesday to launch a repricing of its term loan B, a market source said.

UBS Investment Bank is leading the deal.

Floor & Decor is an Atlanta-based specialty retailer in the hard surface flooring market.

Intralinks closes

In other news, the buyout of Intralinks Holdings Inc. by Siris Capital Group LLC from Synchronoss Technologies Inc. for about $1 billion has been completed, according to a news release.

To help fund the transaction, Intralinks got $675 million of senior secured credit facilities that include a $50 million five-year revolver, a $475 million seven-year covenant-light first-lien term loan and a $150 million eight-year covenant-light second-lien term loan.

Pricing on the first-lien term loan is Libor plus 400 bps with a 1% Libor floor, and it was sold at an original issue discount of 99.5. The loan has 101 soft call protection for six months.

The second-lien term loan is priced at Libor plus 800 bps with a 1% Libor floor and was issued at a discount of 99. This tranche has call protection of 102 in year one and 101 in year two.

During syndication, the first-lien term loan was upsized from $450 million and pricing was set at the low end of the Libor plus 400 bps to 425 bps talk, and pricing on the second-lien loan firmed at the tight end of the Libor plus 800 bps to 825 bps talk.

RBC Capital Markets, Golub Capital and Macquarie Capital led the deal for the New York-based provider of cloud-based virtual data room and secure team collaboration solutions to financial institutions and enterprises.

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