Presidio, Westinghouse break; Sophos, LifePoint Health, ASM Global, OneDigital tweak deals

By Sara Rosenberg

New York, Jan. 15 – Presidio Holdings Inc. set the spread on its term loan B at the low end of revised talk and then freed up for trading on Wednesday, and Westinghouse’s (Brookfield WEC Holdings Inc.) term loan surfaced in the secondary market as well.

In other news, Sophos moved some funds between its first-and second-lien term loans and tightened the spread and original issue discount on its first-lien debt, and LifePoint Health Inc. trimmed pricing on its term loan B.

Also, ASM Global (SMG) reduced the spread on its incremental first-lien term loan and modified the issue price, OneDigital changed the original issue discount on its incremental first-lien term loan, and Zekelman Industries and First Advantage accelerated the commitment deadlines for their term loans.

Furthermore, Grocery Outlet Inc. (GOBP Holdings Inc.), Iridium Satellite LLC, Knowlton Development Corp. (KDC/ONE) and Cable & Wireless Communications Ltd. released price talk with launch, and Lineage Logistics LLC and Pixelle Specialty Solutions LLC joined this week’s primary calendar.

Presidio updated, trades

Presidio Holdings firmed pricing on its $625 million seven-year term loan B (B1/B) at Libor plus 350 basis points, the tight end of the most recent talk of Libor plus 350 bps to 375 bps and lower than original talk of Libor plus 450 bps, 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.

Previously in syndication, the discount on the term loan was revised from talk in the range of 98.5 to 99.

On Wednesday, the term loan broke for trading and levels were quoted at par 5/8 bid, 101 1/8 offered, the source said.

J.P. Morgan Securities LLC, Citigroup Global Markets Inc., RBC Capital Markets, BofA Securities Inc. and MUFG are leading the deal that will be used with $400 million of senior notes and $400 million of senior secured notes to help fund the already completed acquisition of the company by BC Partners for $16.60 in cash per common share. The transaction is valued at about $2.2 billion, including Presidio’s net debt.

Presidio is a New York-based IT solutions provider.

Westinghouse frees up

Westinghouse’s $3,031,000,000 first-lien term loan (B2/B/B+) due August 2025 began trading too, with levels quoted at par ½ bid, par ¾ offered, a market source remarked.

Pricing on the term loan is Libor plus 300 bps with a 25 bps step-down at B1/B+ corporate ratings with stable outlooks and a 0.75% Libor floor. The debt was issued at par and has 101 soft call protection for six months.

During syndication, pricing on the term loan firmed at the low end of the Libor plus 300 bps to 325 bps talk.

Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Deutsche Bank Securities Inc., BMO Capital Markets, RBC Capital Markets, Barclays, Credit Agricole and BNP Paribas Securities Corp. are leading the deal that will be used to reprice an existing term loan down from Libor plus 350 bps.

Westinghouse is a Pittsburgh-based provider of infrastructure services to a nuclear reactor fleet.

Sophos reworked

Back in the primary market, Sophos raised its U.S. and euro seven-year covenant-lite first-lien term loan (B2/B-/B) to $1.53 billion equivalent from $1.43 billion equivalent by increasing the dollar portion of the loan, leaving the euro tranche size at €300 million, a market source said.

Additionally, pricing on the first-lien term loan debt was cut to Libor/Euribor plus 375 bps from talk in the range of Libor/Euribor plus 400 bps to 425 bps, and the original issue discount was adjusted to 99.75 from 99, the source continued.

As before, the first-lien term loan debt has a 25 bps step-down at 0.5x turn inside closing date first-lien net leverage, a 0% floor and 101 soft call protection for six months.

The first-lien term loan debt has a ticking fee of half the margin from days 46 to 90 and the full margin thereafter.

With the first-lien upsizing, the company scaled back its privately placed eight-year covenant-lite second-lien term loan to $420 million from $520 million.

Sophos getting revolver

Along with the first-and second-lien term loans, Sophos’ $2,075,000,000 equivalent of senior secured credit facilities include a $125 million five-year revolver (B2/B-/B).

Recommitments are due at 10 a.m. ET on Thursday and pricing is expected thereafter, the source added.

Goldman Sachs Bank USA, BofA Securities Inc., Barclays, Credit Suisse Securities (USA) LLC and HSBC Securities (USA) Inc. are leading the deal that will be used to help fund the buyout of the company by Thoma Bravo for $7.40 per share, representing an enterprise value of about $3.9 billion.

Sophos is an Oxford, U.K.-based provider of next-generation cybersecurity.

LifePoint cuts spread

LifePoint Health lowered pricing on its $3.115 billion senior secured term loan B (B1/B+) due November 2025 to Libor plus 375 bps from Libor plus 400 bps and modified the MFN to life from six months, according to a market source.

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

Commitments continued to be due at 5 p.m. ET on Wednesday, the source said.

Citigroup Global Markets Inc. is leading the deal that will be used to reprice an existing term loan B down from Libor plus 450 bps.

Currently, the existing term loan B is sized at $3.515 billion, but, with the repricing, there will be a $400 million paydown of the debt.

Closing is expected on Friday.

LifePoint is a Brentwood, Tenn.-based health care provider.

ASM flexes

ASM Global trimmed pricing on its fungible $190 million incremental first-lien term loan (B1/BB-) due January 2025 to Libor plus 250 bps from talk in the range of Libor plus 275 bps to 300 bps and changed the issue price to par from 99.5, according to a market source.

In connection with this transaction, the company’s existing roughly $415 million first-lien term loan is being repriced to Libor plus 250 bps from Libor plus 300 bps to match the incremental loan pricing.

As before, the incremental term loan has a 0% Libor floor and all of the first-lien term loan debt is getting 101 soft call protection for six months.

Jefferies LLC, Nomura, BofA Securities Inc., Goldman Sachs Bank USA and Macquarie Capital (USA) Inc. are leading the deal that will be used to pay down existing second-lien term loan borrowings.

ASM is a venue management company, providing a full range of venue management and food & beverage services.

OneDigital tweaked

OneDigital revised the original issue discount on its fungible $165 million incremental first-lien term loan (B2) to 99.75 from 99.5, a market source remarked.

The incremental term loan is priced at Libor plus 400 bps with a 0% Libor floor, in line with the existing first-lien term loan.

Recommitments were due on Wednesday and allocations are targeted for Thursday morning, the source added.

Golub Capital is leading the deal that will be used to fund acquisitions.

The company also privately placed a new $75 million delayed-draw first-lien term loan (B2) with Golub Capital and PSP Investments Credit USA LLC.

OneDigital is an Atlanta-based employee benefits insurance broker.

Zekelman moves deadline

Zekelman Industries moved up the commitment deadline for its $900 million first-lien term loan (Ba3/BB) due 2027 to 4 p.m. ET on Thursday from noon ET on Jan. 24, according to a market source.

Talk on the term loan is Libor plus 225 bps to 250 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

Goldman Sachs Bank USA and BofA Securities Inc. are leading the deal that will be used to refinance existing debt.

Zekelman Industries is a Chicago-based manufacturer of industrial steel pipe and tubular products.

First Advantage accelerated

First Advantage moved up the commitment deadline for its $620 million first-lien term loan B (B1/B) to Friday from noon ET on Tuesday, a market source said.

The term loan is talked at Libor plus 400 bps to 425 bps with an original issue discount of 99.

BofA Securities Inc., J.P. Morgan Securities LLC, Barclays, Jefferies LLC, RBC Capital Markets, Credit Suisse Securities (USA) LLC, Citizens Bank, HSBC Securities (USA) Inc., KKR Capital Markets and Stifel are leading the deal that will be used to help fund the buyout of the company by Silver Lake from Symphony Technology Group.

Closing is expected this quarter, subject to customary conditions.

First Advantage is an Atlanta-based provider of comprehensive background screening, identity and information solutions.

Grocery Outlet talk

In more primary happenings, Grocery Outlet Inc. held its lender call on Wednesday and released talk on its $460,187,500 covenant-lite first-lien term loan B (B2/BB-) due Oct. 22, 2025 at Libor plus 300 bps with a step-down to Libor plus 275 bps upon a B1 corporate rating by Moody’s Investors Service, a 0% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Commitments/consents are due at 5 p.m. ET on Jan. 22, the source said.

Morgan Stanley Senior Funding Inc., BofA Securities Inc., Deutsche Bank Securities Inc. and Jefferies LLC are leading the deal that will be used to reprice an existing term loan B down from Libor plus 350 bps with a step-down to Libor plus 325 bps upon a corporate rating of B1 from Moody’s.

Grocery Outlet is an Emeryville, Calif.-based grocery store operator.

Iridium reveals guidance

Iridium Satellite came out with issue price talk in the 100.5 area on its $200 million incremental covenant-lite term loan B due November 2026 that launched with a morning call, according to a market source.

The incremental term loan is priced at Libor plus 375 bps, in line with the existing term loan B.

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

Deutsche Bank Securities Inc., Barclays, Credit Suisse Securities (USA) LLC and Wells Fargo Securities LLC are leading the deal that will be used with cash on hand to redeem the company’s existing $360 million unsecured notes.

Iridium is a McLean, Va.-based satellite communications company.

Knowlton launches

Knowlton Development held its bank meeting during the session and launched its fungible $300 million add-on covenant-lite first-lien term loan due Dec. 21, 2025 with original issue discount talk of 99.5, a market source remarked.

The add-on term loan is priced at Libor plus 425 bps with a 0% Libor floor, in line with existing term loan.

Commitments are due on Jan. 24, the source added.

UBS Investment Bank and Jefferies LLC are leading the deal that will be used with new equity from Knowlton Development’s sponsor, Cornell Capital, as well as reinvestment equity from the founder and existing management of HCT Group to help fund the acquisition of HCT.

Closing is expected early this quarter, subject to customary conditions.

Knowlton Development is a Longueuil, Quebec-based manufacturer and custom formulator of color cosmetics, skincare, haircare, bath & body, fragrance, deodorant, home, health, industrial and auto care products. HCT is a Santa Monica, Calif.-based designer, engineer and manufacturer of packaging solutions for beauty brands.

Cable & Wireless talk

Cable & Wireless launched on its lender call a $1.3 billion eight-year senior secured term loan B-5 (Ba3) talked at Libor plus 250 bps to 275 bps with a 0% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months, according to a market source.

Commitments are due on Jan. 21, the source said.

J.P. Morgan Securities LLC is the left lead on the deal that will be used to help repay an existing term loan B-4.

Cable & Wireless is a London-based telecommunications company owned by Liberty Global.

Lineage on deck

Lineage Logistics scheduled a lender call for 11:30 a.m. ET on Thursday to launch a fungible $300 million add-on term loan B (B2/B) due February 2025, a market source said.

Like the existing $730 million term loan B, the add-on term loan is priced at Libor plus 300 bps with a 1% Libor floor.

Commitments are due at 5 p.m. ET on Jan. 27, the source added.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to help fund the acquisition of Emergent Cold.

Lineage Logistics is Novi, Mich.-based cold storage warehousing and logistics company. Emergent Cold is a Dallas-based provider of temperature controlled storage.

Pixelle timing emerges

Pixelle Specialty Solutions set a bank meeting for 10 a.m. ET in New York on Thursday to launch its previously announced fungible $255 million incremental first-lien term loan due October 2024, according to a market source.

The incremental term loan has a 1% Libor floor, the source said.

Commitments are due at 5 p.m. ET on Jan. 30.

The company is also getting a $20 million revolver.

Credit Suisse Securities (USA) LLC and Citizens Bank are leading the deal that will be used with $110 million of equity from Lindsay Goldberg LLC to fund the acquisition of specialty paper mills in Jay, Maine, and Stevens Point, Wis., from Verso Corp. for $365 million in cash and the assumption of $35 million in unfunded pension liabilities, subject to customary adjustments.

Closing is expected this quarter.

Pixelle is a manufacturer of specialty paper products.

DaVita sets deadline

DaVita Inc. is asking for commitments by Jan. 24 for its $2.75 billion term loan B that will launch with a lender call on Thursday, a market source remarked.

The term loan is talked at Libor plus 175 bps with a 0% Libor floor, a par issue price and 101 soft call protection for six months.

Wells Fargo Securities LLC is leading the deal, which will be used to reprice an existing term loan down from Libor plus 225 bps.

DaVita is a Denver-based provider of kidney dialysis services to patients with chronic kidney failure.

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