Thor, Syncsort break; Gray Television, Walker, Cabot tweak deals; Sedgwick accelerated

By Sara Rosenberg

New York, Nov. 1 – Thor Industries Inc.’s U.S. term loan B made its way into the secondary market on Thursday and was quoted above its original issue discount, and Syncsort Inc.’s term loan freed up as well.

Switching to the primary market, Gray Television Inc. scaled back the size of its term loan B in connection with a decision to issue notes, and Walker & Dunlop Inc. increased the size of its term loan B and set pricing at the low end of guidance.

In addition, Cabot Microelectronics Corp. finalized the spread on its term loan B at the wide side of talk, and Sedgwick Claims Management Services Inc. moved up the commitment deadline on its term loan B.

Also, Celestica Inc., Openlink Financial LLC and Crown Paper Group released price talk with launch, and Algoma joined the near-term primary calendar.

Thor Industries frees up

Thor Industries’ $1,515,000,000 seven-year term loan B began trading on Thursday, with levels quoted at 99¼ bid, 99¾ offered, according to a trader.

Pricing on the term loan is Libor plus 375 basis points with a 0% Libor floor and it was sold at an original issue discount of 99. The debt has 101 soft call protection for one year.

The company is also getting a €675 million seven-year term loan B priced at Euribor plus 400 bps with a 0% floor and issued at a discount of 99. This tranche has 101 soft call protection for one year as well.

On Wednesday, the U.S. term loan was downsized from $1,866,000,000 and pricing was raised from talk in the range of Libor plus 300 bps to 325 bps, the euro term loan was upsized from €350 million and pricing was increased from talk in the range of Euribor plus 300 bps to 325 bps, the discount on both loans widened from 99.5 and the call protection on both loans was extended from six months.

Thor buying Erwin

Proceeds from Thor Industries’ term loans will be used to help fund the acquisition of Erwin Hymer Group SE for about €2.1 billion in cash and equity.

J.P. Morgan Securities LLC, Barclays, BMO Capital Markets, U.S. Bank and Wells Fargo Securities LLC are leading the debt.

Closing is expected near year-end, subject to customary conditions, including regulatory approvals.

Thor Industries is an Elkhart, Ind.-based manufacturer of recreational vehicles. Erwin Hymer is a Bad Waldsee, Germany-based manufacturer of recreational vehicles.

Syncsort hits secondary

Syncsort’s $765 million covenant-light term loan B (B2/B-) due Aug. 16, 2024 broke too, with levels seen at par bid, par ¾ offered, a trader remarked.

Pricing on the term loan B is Libor plus 450 bps with a 0% Libor floor and it was sold at an original issue discount of 99.75. The loan has 101 soft call protection for six months.

On Wednesday, the spread on the term loan finalized at the high end of the Libor plus 425 bps to 450 bps talk.

Bank of America Merrill Lynch is the left lead on the deal that will be used to reprice an existing term loan B.

Syncsort is a Pearl River, N.Y.-based enterprise software provider.

Gray Television downsizes

Moving to the primary market, Gray Television trimmed its seven-year incremental covenant-light term loan B to $1.4 billion from a revised amount of $1.65 billion and an initial amount of $2.15 billion, and left pricing at Libor plus 250 bps with a 0% Libor floor and an original issue discount of 99.75, according to a market source.

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

Previously in syndication, pricing on the term loan firmed at the high end of the Libor plus 225 bps to 250 bps talk and the discount was revised from 99.5.

The term loan downsizing was done as a result of the company’s decision to sell senior notes due May 2027. The notes were sized at $500 million when announced in the morning and then were increased to $750 million in the afternoon.

As before, the company is also getting a $200 million five-year revolver that is pari passu with the term loan to replace its existing $100 million priority revolver due February 2022.

Gray lead banks

Wells Fargo Securities LLC, Bank of America Merrill Lynch, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and RBC Capital Markets are leading the bank debt.

Proceeds from the term loan will be used with the bonds to help fund the acquisition of Raycom Media Inc. and refinance debt. Raycom is being bought for $3,647,000,000 in total proceeds, consisting of $3,547,000,000 in enterprise value and $100 million of Raycom cash. The consideration will consist of $2.85 billion in cash, $650 million in a new series of preferred stock and 11.5 million shares of Gray common stock.

Closing is expected this quarter, subject to customary conditions and regulatory approvals.

Gray Television is an Atlanta-based television broadcast company. Raycom is a Montgomery, Ala.-based broadcaster and owner and operator of television stations.

Walker & Dunlop revised

Walker & Dunlop raised its seven-year term loan B to $300 million from $250 million and firmed pricing at Libor plus 225 bps, the low end of the Libor plus 225 bps to 250 bps talk, according to a market source.

The term loan still has a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

Recommitments are due at 10 a.m. ET on Friday, the source said.

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 and for general corporate purposes.

Walker & Dunlop is a Bethesda, Md.-based provider of commercial real estate financial services.

Cabot updated

Cabot Microelectronics set pricing on its $1,065,000,000 seven-year term loan B at Libor plus 225 bps, the high end of the Libor plus 200 bps to 225 bps talk, and left the 0% Libor floor, original issue discount of 99.75 and 101 soft call protection for six months unchanged, according to a market source.

The company’s $1,265,000,000 of senior secured credit facilities (Ba2/BB+) also include a $200 million revolver.

J.P. Morgan Securities LLC, Bank of America Merrill Lynch and Goldman Sachs Bank USA are leading the deal that will be used to help fund the acquisition of KMG Chemicals Inc. for $55.65 in cash and 0.2 of a share of Cabot Microelectronics common stock, or about $1.6 billion, and to refinance KMG’s existing debt.

Closing is subject to customary conditions, including HSR clearance and approval by KMG shareholders.

Cabot is an Aurora, Ill.-based supplier of chemical mechanical planarization polishing slurries and CMP pads to the semiconductor industry. KMG is a Fort Worth-based producer and distributor of specialty chemicals and performance materials for the semiconductor, industrial wood preservation, and pipeline and energy markets.

Sedgwick moves deadline

Sedgwick Claims Management Services accelerated the commitment deadline on its $2.34 billion seven-year covenant-light term loan B (B2/B) to noon ET on Monday from noon ET on Nov. 7, a market source said.

Talk on the term loan B is Libor plus 325 bps to 350 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

Bank of America Merrill Lynch, KKR Capital Markets, Morgan Stanley Senior Funding Inc. and SunTrust Robinson Humphrey Inc. are leading the loan that will be used with equity to fund the buyout of the company by the Carlyle Group from KKR in a transaction valued at about $6.7 billion.

Closing is expected later this year, subject to customary conditions, including regulatory approvals.

Funds managed by Stone Point Capital LLC and Caisse de depot et placement du Québec (CDPQ), together with Sedgwick management, will remain minority investors in the company.

Sedgwick is a Memphis, Tenn.-based provider of claims management solutions to corporations, public entities and insurance carriers.

Celestica sets talk

Also in the primary market, Celestica held its lender call on Thursday, launching its $350 million non-fungible covenant-light term loan B (Ba1/BB) due June 27, 2025 at talk of Libor plus 225 bps with an original issue discount of 99 to 99.5 and 101 soft call protection for six months, according to a market source.

Commitments are due at 5 p.m. ET on Nov. 8, the source said.

Bank of America Merrill Lynch and Citigroup Global Markets Inc. are leading the deal that will be used to fund the acquisition of Impakt Holdings LLC for $329 million from Graycliff Partners, to pay related fees and expenses, and for general corporate purposes.

Closing is expected this quarter, subject to regulatory approvals and other customary conditions.

Celestica is a Toronto-based designer and manufacturer of electronic components. Impakt is a Santa Clara, Calif.-based provider of manufacturing solutions for the display, semiconductor, solar and other capital equipment industries.

Openlink guidance

Openlink Financial came out with talk on its $514 million equivalent U.S. and euro term loan with its lender call on Thursday, a market source said.

The roughly $343 million U.S. term loan is talked at Libor plus 425 bps to 450 bps and the roughly €148 million euro term loan is talked at Euribor plus 375 bps, the source continued. Both loans are talked with a 1% floor, a par issue price and 101 soft call protection for six months.

Commitments are due on Nov. 8, the source added.

UBS Investment Bank is leading the deal that will be used to reprice an existing U.S. term loan down from Libor plus 475 bps with a 1% Libor floor and an existing euro term loan down from Euribor plus 425 bps with a 1% Libor floor.

Openlink is a Uniondale, N.Y.-based provider of trading and risk management solutions.

Crown Paper holds call

Crown Paper Group hosted a lender call during the session to launch a $94 million term loan talked at Libor plus 475 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, a market source remarked.

Commitments are due on Nov. 15, the source added.

Citizens Bank is leading the deal that will be used to fund a dividend.

Crown Paper is a paper and packaging company.

Algoma on deck

Algoma set a bank meeting for noon ET in New York on Monday to launch a $300 million covenant-light first-lien term loan, according to a market source.

Goldman Sachs Bank USA, Barclays and BMO Capital Markets are leading the deal that will be used for exit financing.

Algoma is a Sault Ste. Marie, Ont.-based steel producer.

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