Restoration Hardware, Walker & Dunlop, Aggreko break; Pathway Vet updates surface

By Sara Rosenberg

New York, Oct. 15 – Restoration Hardware Inc. upsized its term loan B and lowered pricing, Walker & Dunlop Inc. tightened the spread and original issue discount on its term loan B, and Aggreko plc outlined U.S. and euro term loan tranche sizes, set spreads at the high end of revised talk and extended the call protection, and then these deals freed to trade on Friday.

In more happenings, Pathway Vet Alliance LLC increased the size of its incremental first-lien term loan and finalized the original issue discount at the tight end of guidance.

Additionally, GreenWaste Recovery and MeridianLink Inc. disclosed price talk with launch, and Confluent Health, Summit Behavioral Healthcare LLC, System1 Inc. and LifeScan Global joined the near-term primary calendar.

Restoration reworked, frees

Restoration Hardware raised its seven-year term loan B to $2 billion from $1.5 billion and modified price talk to a range of Libor plus 225 basis points to 250 bps from Libor plus 275 bps, before finalizing at Libor plus 250 bps, according to a market source.

The 0.5% Libor floor, original issue discount of 99.5 and 101 soft call protection for six months on the term loan were unchanged.

Recommitments were due at noon ET on Friday and the term loan B emerged in the secondary market in the afternoon, with levels quoted at 99 7/8 bid, par ¼ offered, another source added.

BofA Securities Inc. is the left lead on the deal that will be used to refinance convertible notes and for general corporate purposes.

Restoration Hardware, which does business as RH, is a Corte Madera, Calif.-based upscale home furnishings company.

Walker revised, trades

Walker & Dunlop trimmed pricing on its $600 million term loan B (BBB-) due 2028 to SOFR plus 225 bps from SOFR plus 250 bps, and changed the original issue discount talk to a range of 99.5 to 99.75 from a range of 99 to 99.5, before firming at 99.75, a market source said.

The term loan pricing includes SOFR plus 10 bps CSA for one-month SOFR, 15 bps for three months and 25 bps for six months, revised earlier in syndication from SOFR plus 10 bps CSA.

As before, the term loan has a 50 bps SOFR+CSA floor and 101 soft call protection for six months.

Recommitments were due at 11 a.m. ET on Friday and the term loan began trading later in the day, with levels quoted at par bid, par ¼ offered, another source added.

JPMorgan Chase Bank is leading the deal that will be used to fund the acquisition of Alliant Capital Ltd. and to refinance an existing term loan B due 2025.

Closing is expected in November.

Walker & Dunlop is a Bethesda, Md.-based commercial real estate and multi-family finance company. Alliant is a Woodland Hills, Calif.-based investment management firm.

Aggreko updated

Aggreko set its U.S. five-year covenant-lite first-lien term loan size at $750 million and its euro five-year covenant-lite first-lien term loan size at €500 million, versus a prior description of £1 billion equivalent (roughly $1.35 billion) in total U.S. and euro term debt, with tranching to be determined, according to market sources.

Also, pricing on the U.S. and euro term loans (B1/BB-/BB+) firmed at Libor/Euribor plus 525 bps, the high end of revised talk of Libor/Euribor plus 500 bps to 525 bps and up from initial talk of Libor/Euribor plus 425 bps to 450 bps, two 25 bps step-downs were removed and the 101 soft call protection was extended to one year from six months, sources said.

In addition, changes were made to MFN, the EBITDA definition, acquisition debt, debt incurrence, restricted payments and the excess cash flow sweep, J. Crew protection was added, the numerical basket size was removed and an annual budgets requirement was added.

The U.S. term loan still has a 0.5% Libor floor, the euro term loan still has a 0% floor, and both tranches still have an original issue discount of 98.5.

Earlier in syndication, the discount on the U.S. and euro term loan debt widened from talk in the range of 99 to 99.5.

Aggreko hits secondary

Recommitments for Aggreko’s term loans were due at 11:30 a.m. ET on Friday and the U.S. term loan broke in the afternoon, with levels quoted at 98 7/8 bid, 99 3/8 offered, another source added.

BofA Securities Inc. and Barclays are the joint global coordinators on the deal. Deutsche Bank Securities Inc., Goldman Sachs, HSBC, Santander, Lloyds, SMBC and Standard Chartered are joint bookrunners.

The term loans will be used to help fund the buyout of the company by TDR Capital LLP and I Squared Capital for 880 pence per share in cash. The transaction values the company at £2.322 billion on a fully diluted basis.

The company is also getting $565 million of senior secured notes, €450 million of senior secured notes and $450 million of senior unsecured notes.

Aggreko is a U.K.-based provider of mobile power, heating and cooling solutions.

Pathway upsizes

Pathway Vet lifted its fungible incremental first-lien term loan due March 2027 to $300 million from $250 million and firmed the original issue discount at 99.5, the tight end of the 99.25 to 99.5 talk, a market source remarked.

Pricing on the incremental term loan is Libor plus 375 bps with a 0% Libor floor.

Allocations are expected on Monday, the source added.

Jefferies LLC is leading the deal that will be used to fund cash to the balance sheet for general corporate purposes, which may include acquisitions.

Pathway is an Austin, Tex.-based veterinary management group.

GreenWaste guidance

GreenWaste Recovery held its lender call on Friday morning and announced talk on its $400 million seven-year covenant-lite term loan B at Libor plus 350 bps to 375 bps with a 0.5% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

The company’s $500 million of credit facilities (B2/B+) also include a $100 million five-year revolver.

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

Truist Securities, RBC Capital Markets, Fifth Third and MUFG are leading the deal that will be used to help fund the acquisition of the company by MIP V, a fund managed by Macquarie Asset Management.

GreenWaste is a San Jose, Calif.-based provider of solid waste collection and recycling solutions for homes and businesses.

MeridianLink talk

MeridianLink came out with price talk of Libor plus 325 bps to 350 bps with a 0.5% Libor floor and an original issue discount of 99.5 on its $435 million seven-year term loan B (B2/BB-/BB+) that launched with a call in the morning, a market source remarked.

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

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

BofA Securities Inc. is the left lead on the deal, which will be used to refinance existing debt.

MeridianLink is a Costa Mesa, Calif.-based provider of SaaS-based solutions to financial institutions that simplify loan decisioning, deposit and loan originations and workflow challenges.

Confluent readies deal

Confluent Health set a lender call for 3 p.m. ET on Monday to launch $565 million of covenant-lite term loans, according to a market source.

The debt is split between a $465 million seven-year first-lien term loan B and a $100 million delayed-draw term loan, the source said.

Included in the term loan debt is 101 soft call protection for six months.

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

Deutsche Bank Securities Inc. is the left bookrunner on the deal that will be used to refinance an existing term loan B and fund identified acquisitions.

Confluent Health is a Louisville, Ky.-based outpatient physical therapy provider.

Summit coming soon

Summit Behavioral Healthcare will hold a lender call at 1 p.m. ET on Monday to launch $800 million of credit facilities, a market source said.

The facilities consist of a $75 million five-year revolver (B2/B-), a $450 million seven-year first-lien term loan (B2/B-), a $70 million first-lien delayed-draw term loan (B2/B-) available for 24 months, a $180 million eight-year second-lien term loan (Caa2/CCC) and a $25 million second-lien delayed-draw term loan (Caa2/CCC) available for 24 months, the source added.

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

Jefferies LLC, BofA Securities Inc. and Credit Suisse Securities (USA) LLC are leading the deal that will help fund the buyout of the company by Patient Square Capital from FFL Partners and Lee Equity Partners.

Summit Behavioral is a Franklin, Tenn.-based behavioral health services provider with a focus on the substance use disorder and acute psychiatric treatment end markets.

System1 on deck

System1 Inc. scheduled a lender call for 3 p.m. ET on Monday to launch a $400 million seven-year term loan B, according to a market source.

The term loan has 101 soft call protection for six months, the source said.

Based on filings with the Securities and Exchange Commission, the company is also expected to get a $50 million five-year revolver.

BofA Securities Inc. is leading the deal that is being done in connection with the acquisition of the company by Trebia Acquisition Corp., a special purpose acquisition company formed by entities affiliated with William P. Foley II and Frank Martire Jr. Concurrent with this transaction, System1 will be combining with Protected.net, a developer of security and privacy subscription products.

The new credit facilities will be used to help repay the company’s existing credit facility, fund redemptions of Trebia class A ordinary shares, provide cash for working capital and pay transaction fees.

System1 is a Venice, Calif.-based omnichannel customer acquisition marketing platform.

LifeScan joins calendar

LifeScan set a lender call for 11 a.m. ET on Monday to launch an $800 million five-year term loan B, a market source remarked.

BofA Securities Inc. is leading the deal that will be used to refinance existing debt.

LifeScan is a Malvern, Pa.-based diagnostics systems manufacturer with a focus on glucose monitoring and diabetes management.

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