KinderCare, Navicure free up; Web.com, Hillman changes emerge; Quorum accelerates timing

By Sara Rosenberg

New York, Sept. 14 – KinderCare (Kuehg Corp.) and Navicure modified issue prices on their incremental first-lien term loans, and then both of these deals made their way into the secondary market on Friday.

In more happenings, Web.com Group Inc. raised the size of its first-lien term loan and adjusted pricing and original issue discounts on its first- and second-lien term loan tranches.

Also, Hillman Group Inc. widened the spread and issue price on its incremental term loan B and is lifting pricing on its existing term loan B to match the incremental spread, and Quorum Business Solutions (QBS Parent Inc.) moved up the commitment deadline on its first-lien term loan.

KinderCare tweaked, trades

KinderCare adjusted the original issue discount on its $205 million incremental first-lien term loan (B2/B-) due February 2025 to 99.75 from 99.5, according to a market source.

The incremental loan and extended $972 million first-lien term loan (B2/B-) due February 2025 are still priced at Libor plus 375 basis points with a 1% Libor floor, the extended term loan is still offered at par with a 25 bps amendment fee, and all of the debt is still getting 101 soft call protection for six months.

Recommitments were due at noon ET on Friday and around mid-afternoon the term loan debt broke for trading, with levels seen at par bid, par ½ offered before moving up to par ¼ bid, par ¾ offered, a trader added.

Credit Suisse Securities (USA) LLC and Barclays are the leads on the deal.

The incremental term loan will be used to support the recently completed acquisition of Rainbow Child Care Center, a Troy, Mich.-based child care provider, and the extension of the existing term loan will move the maturity out from August 2022 while keeping pricing at Libor plus 375 bps with a 1% Libor floor.

KinderCare is a Portland, Ore.-based provider of early childhood care and education services.

Navicure updated, breaks

Navicure changed the issue price on its fungible $108 million incremental first-lien term loan (B) due Nov. 1, 2024 to par from 99.5, a market source said.

The incremental loan is priced at Libor plus 375 bps with a 1% Libor floor.

After terms finalized, the incremental loan freed to trade and levels were quoted at par ¼ bid, par ¾ offered, the source added.

Antares Capital is leading the deal that will be used to finance an acquisition.

Closing is expected on Monday.

The company’s existing first-lien term loan is sized at $433 million.

Navicure, a portfolio company of Bain Capital, is a Duluth, Ga.-based provider of SaaS-based revenue cycle management services.

Web.com revises deal

Web.com Group lifted its seven-year covenant-light first-lien term loan B to $1,095,000,000 from $1.08 billion, cut pricing to Libor plus 375 bps from talk in the range of Libor plus 400 bps to 425 bps and revised the original issue discount to 99.75 from talk in the range of 99 to 99.5, while leaving the 0% Libor floor and 101 soft call protection for six months intact, a market source remarked.

Regarding the $420 million eight-year covenant-light second-lien term loan, the spread was lowered to Libor plus 775 bps from talk in the range of Libor plus 800 bps to 825 bps and the discount was changed to 99.25 from talk in the range of 98.5 to 99, the source continued. This tranche still has a 0% Libor floor and hard call protection of 102 in year one and 101 in year two.

The company’s now $1,615,000,000 of senior secured credit facilities also include a $100 million five-year revolver.

Commitments were due at 4 p.m. ET on Friday.

Web.com being acquired

Proceeds from Web.Com’s credit facilities, along with equity and cash on hand, will be used to fund its buyout by Siris Capital Group LLC for $25.00 per share in cash, or about $2 billion, and to refinance existing debt. The funds from the first-lien term loan upsizing will reduce revolver borrowings, the source added.

Morgan Stanley Senior Funding Inc., RBC Capital Markets and Macquarie Capital (USA) Inc. are leading the deal.

Closing is expected in the fourth quarter, subject to approval by Web.com shareholders, regulatory approvals and customary conditions.

Web.com is a Jacksonville, Fla.-based provider of a full range of internet services and online marketing solutions for small and medium sized businesses.

Hillman reworked

Hillman raised pricing on its fungible $365 million incremental term loan B (B-/B) due May 31, 2025 to Libor plus 400 bps from Libor plus 350 bps and changed the original issue discount to 97.5 from 99, according to a market source.

As before, the incremental loan has a 0% Libor floor and 101 soft call protection for six months.

In addition, the company will now widen pricing on its existing $695 million term loan B to Libor plus 400 bps with a 0% Libor floor from Libor plus 350 bps with a 0% Libor floor so as to match the incremental loan terms, the source said.

Commitments are due at 4 p.m. ET on Monday. The original deadline had been Sept. 13.

Jefferies LLC is leading the loan that will be used to fund the acquisition of Big Time Products, a provider of personal protection and work gear products.

Closing is subject to customary conditions and regulatory approvals.

Hillman is a Cincinnati-based distributor of fasteners, keys, engravable tags, letters, numbers, signs and other hardware-related items.

Quorum changes deadline

Quorum Business Solutions accelerated the commitment deadline on its $230 million seven-year covenant-light first-lien term loan (B2/B/BB-) to noon ET on Monday from 5 p.m. ET on Wednesday, a market source said.

Talk on the term loan is Libor plus 450 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC and Macquarie Capital (USA) Inc. are leading the deal that will be used to help fund the buyout of the company by Thoma Bravo LLC from Silver Lake.

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

Quorum is a provider of finance, operations and accounting software to energy companies.

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