Varsity, Harsco, GTL break; BMC, WorldStrides, SunSource, Jeld-Wen, McGraw, Sequa updated

By Sara Rosenberg

New York, Dec. 7 – Varsity Brands Inc. trimmed the spread on its term loan and then freed to trade on Thursday above its original issue discount, and deals from Harsco Corp. and Global Tel*Link Corp. Inc. hit the secondary market as well.

In more happenings, BMC Software updated pricing terms on its U.S. and euro loans, WorldStrides reduced the spread on its term loans, added a step-down and changed the original issue discount, and SunSource Holdings Inc. modified the MFN and asset sale sweep under its term loan.

Also, Jeld-Wen Inc. set the spread on its term loan B at the low side of guidance and revised the issue price, McGraw-Hill Global Education Holdings LLC adjusted the original issue discount on its incremental first-lien term loan, and Mortgage Contracting Services downsized its add-on first-lien term loan and tightened the issue price.

Furthermore, Sequa Corp. removed the ratings step-down from its term loan B, Hargray Communications Group Inc. withdrew its term loan repricing from market, Presidio Inc. moved up the commitment deadline for new money commitments for its term loan, and Learfield Communications LLC released the ticking fee on its incremental term loan.

Additionally, Western Dental Services (Premier Dental Services Inc.), Chefs’ Warehouse Inc., Ascensus Inc., Royal Oak Enterprises LLC (Ozark Holdings LLC), Arris Group Inc., Innovative XCessories & Services LLC and Tradesmen International LLC disclosed price talk with launch, and Evoqua Water Technologies (EWT Holding III Corp.) emerged with new deal plans.

Varsity cuts spread, trades

Varsity Brands lowered pricing on its $1,125,000,000 seven-year first-lien term loan (B1/B) to Libor plus 350 basis points from talk in the range of Libor plus 375 bps to 400 bps and left the 1% Libor floor, original issue discount of 99.5 and 101 soft call protection for six months unchanged, according to a market source.

Recommitments were due at noon ET on Thursday and the loan emerged in the secondary market in the afternoon with levels quoted at par ¼ bid, 101 offered, another source added.

Jefferies LLC, Barclays and Cowen are leading the deal that will be used with a $500 million privately placed eight-year second-lien term loan to repay existing debt.

The second-lien term loan has call protection of 102 in year one and 101 in year two.

Varsity Brands is a Memphis, Tenn.-based provider of sports, cheerleading and achievement-related products to schools.

Harsco frees up

Harsco’s $546 million senior secured term loan (Ba1/BB+/BB+) due December 2024 also began trading, with levels quoted by one trader at par ½ bid, 101 offered and by another trader at par ¾ bid, 101¼ offered.

Pricing on the term loan is Libor plus 300 bps with a 1% Libor floor and it was issued at par. The debt has 101 soft call protection for six months.

On Wednesday, pricing on the loan was reduced from Libor plus 325 bps, a 25 bps pricing step-down if net leverage is below 2 times was eliminated and the issue price was revised from 99.75.

Goldman Sachs Bank USA, Citigroup Global Markets Inc., HSBC Securities (USA) Inc., Bank of America Merrill Lynch, RBC Capital Markets, U.S. Bank and KeyBanc Capital Markets are leading the deal that will be used amend and extend and reprice an existing term loan due November 2023 that is priced at Libor plus 500 bps with a 25 bps step-down if net leverage is below 2 times and a 1% Libor floor.

Harsco is a Camp Hill, Pa.-based diversified industrial company providing a range of onsite services and engineered products to the global steel, energy and railway sectors.

Global Tel*Link breaks

Global Tel*Link’s bank debt broke as well, with the fungible $240 million incremental first-lien term loan due May 21, 2020 quoted at par ¼ bid, par ¾ offered and the $25 million incremental second-lien term loan due Nov. 20, 2020 quoted at par bid, par ½ offered, a trader remarked.

Pricing on the first-lien term loan is Libor plus 400 bps with a 1.25% Libor floor, in line with existing term loan pricing, and it was sold at an original issue discount of 99.75. The debt has 101 soft call protection for six months.

The second-lien term loan, which was just added to the transaction on Wednesday, is priced at Libor plus 825 bps with a 1.25% Libor floor and was issued at a discount of 99.5.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to fund a shareholder distribution.

First-lien lenders are getting a 12.5 bps consent fee and second-lien lenders are getting a 25 bps consent fee in addition to the coupon bump to Libor plus 825 bps.

Global Tel*Link is a Reston, Va.-based provider of technology solutions to the corrections industry.

BMC finalizes terms

Back in the primary market, BMC Software set pricing on its $150 million tack-on term loan due September 2022 and repricing of its existing $2,332,000,000 term loan due September 2022 at Libor plus 325 bps, the low end of the Libor plus 325 bps to 350 bps talk, and modified the original issue discount on the tack-on loan to 99.75 from 99.5, a market source remarked.

Additionally, the issue price on the company’s €240 million tack-on term loan due September 2022 and repricing of its existing €684 million term loan due September 2022 firmed at par, the tight end of the 99.75 to par talk, the source continued

As before, all of the term loan debt has a 0% floor and is getting 101 soft call protection for six months, the U.S. term loan repricing is offered at par and the euro term loans are priced at Euribor plus 375 bps.

Recommitments were due at 2 p.m. ET on Thursday, the source added.

Credit Suisse is the left lead on the deal (B1/B+). Other leads include Goldman Sachs, HSBC and Mizuho.

The tack-on loans will be used to refinance existing debt, the U.S. term loan repricing will take the existing loan down from Libor plus 375 bps with a 1% Libor floor and the euro loan repricing will take the existing loan down from Euribor plus 450 bps with a 0% floor.

BMC is a Houston-based provider of IT digital enterprise management solutions.

WorldStrides reworked

WorldStrides trimmed pricing on its $460 million in seven-year senior secured term loans (B1/B) to Libor plus 400 bps from talk in the range of Libor plus 425 bps to 450 bps, added a step-down to Libor plus 375 bps subject to first-lien net leverage 0.5 times inside day one closing first-lien net leverage, and revised the original issue discount to 99.75 from 99.5, according to a market source.

Furthermore, the 50 bps MFN was set for life with no carve-outs, the inside maturity clause on the incremental was eliminated, and the leverage based asset sale step-downs were removed, the source said.

As before, the term loan debt has a 1% Libor floor and 101 soft call protection for six months.

The debt is split between a $425 million term loan B, and a $35 million delayed-draw term loan B that has a ticking fee of half the spread from days 31 to 75 and the full spread thereafter.

Recommitments were due by end of day on Thursday, the source added.

Goldman Sachs Bank USA and BNP Paribas Securities Corp. are leading the deal that will be used to help fund a strategic investment from Eurazeo and Primavera Capital Group.

Closing is expected by year end.

WorldStrides is a Charlottesville, Va.-based educational student travel and study abroad organization.

SunSource tweaked

SunSource revised the MFN on its $235 million seven-year first-lien term loan (B2/B) to 50 bps with a 24 month sunset from 75 bps with a 12 month sunset, a market source said.

The company also changed the asset sale sweep to 100%, stepping down to 50% at 4.5 times leverage and 0% at 4 times, from 50% at 4.75 times leverage and 0% at 4.25 times, the source continued.

Pricing on the loan remained at Libor plus 375 bps with a 1% Libor floor and an original issue discount of 99.5, and the debt still has 101 soft call protection for six months.

Final commitments were due at noon ET on Thursday.

Barclays, Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, ING, Natixis and UBS Investment Bank are leading the deal that will be used to help fund the buyout of the company by Clayton, Dubilier & Rice.

SunSource is an Addison, Ill.-based distributor of fluid power and motion control technologies.

Jeld-Wen updated

Jeld-Wen set pricing on its $440 million covenant-light term loan B (Ba2/BB+) due December 2024 at Libor plus 200 bps, the low end of the Libor plus 200 bps to 225 bps talk, and revised the issue price to par from talk in the range of 99.5 to 99.75, a market source remarked.

The term loan still has a 25 bps step-down at Ba2/BB corporate ratings, a 0% Libor floor and 101 soft call protection for six months.

Current corporate ratings are Ba3/BB-.

Commitments were due at 4 p.m. ET, the source added.

Bank of America Merrill Lynch, Wells Fargo Securities LLC, Barclays and J.P. Morgan Securities LLC are leading the deal that will be used with $800 million in notes and cash on hand to refinance an existing term loan so as to extend the maturity date and reduce the interest rates.

Jeld-Wen is a Charlotte, N.C.-based door and window manufacturer.

McGraw modified

McGraw-Hill Global Education changed the original issue discount on its fungible $150 million incremental first-lien term loan due May 4, 2022 to 99.75 from 99.5, according to a market source.

The incremental loan is priced at Libor plus 400 bps with a 1% Libor floor, in line with existing term loan pricing.

Recommitments were due at noon ET on Thursday, the source said.

Jefferies LLC is leading the deal that will be used with $250 million of senior PIK toggle notes and cash from the balance sheet to refinance existing HoldCo notes and pay fees and expenses.

McGraw-Hill is a New York-based provider of education materials.

Mortgage Contracting revised

Mortgage Contracting Services decreased its add-on first-lien term loan (B2/B) due May 18, 2024 to $55 million from $65 million and moved the issue price to par from 99.5, a market source said.

The add-on term loan is priced at Libor plus 475 bps with a 1% Libor floor, in line with existing first-lien loan pricing, and all of the debt is getting 101 soft call protection for six months.

Recommitments were due at noon ET on Thursday, the source added.

Goldman Sachs Bank USA, Jefferies LLC and Deutsche Bank Securities Inc. are leading the deal that will be used to fund the acquisition of certain assets of Carrington Home Solutions’ field services division.

In connection with this transaction, the company has received lender approval of an amendment that will reset the incremental basket so that the $55 million add-on will not use up the $85 million freebie and that the $12.5 million in Carrington related earn-outs will not count towards $20 million earn-out capacity.

Mortgage Contracting Services is a Lewisville, Texas-based provider of critical specialized services to mortgage servicers and originators.

Sequa eliminates step

Sequa removed the 50 bps pricing step-down if corporate ratings are B3/B-/B- or better with a stable outlook from its roughly $918 million senior secured term loan B (B3/B-/B) due Nov. 28, 2021, a market source remarked.

Initial pricing on the loan remained at Libor plus 500 bps with a, a 1% Libor floor and a par issue price, and the debt still has 101 soft call protection for six months.

Recommitments were scheduled to be due at 5 p.m. ET on Thursday, the source added.

Barclays is leading the deal that will be used to reprice an existing term loan B down from Libor plus 550 bps with a 1% Libor floor.

Sequa is a Palm Beach Gardens, Fla.-based aerospace and diversified industrial company.

Hargray pulled

Hargray Communications removed its $450 million term loan repricing from market, a source said.

The transaction was talked at Libor plus 250 bps to 275 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months.

SunTrust Robinson Humphrey Inc. was leading the deal that would have repriced the loan down from Libor plus 300 bps with a 1% Libor floor.

Hargray is a Hilton Head Island, S.C.-based broadband communications and entertainment provider.

Presidio accelerated

Presidio revised the new money commitment deadline for its $741.6 million senior secured covenant-light term loan B (B+) due Feb. 2, 2024 to 5 p.m. ET on Thursday from noon ET on Friday, according to a market source.

Existing lender commitments continued to be due at 5 p.m. ET on Thursday, the source said.

Talk on the term loan is Libor plus 275 bps with a 1% Libor floor, an original issue discount of 99.5 to 99.75 and 101 soft call protection for six months.

Citigroup Global Markets Inc. is leading the deal that will be used to amend and extend by two years an existing term loan B due 2022 and finance the redemption of the company’s $125 million of outstanding 10¼% senior notes due 2023.

As part of the transaction, the first-lien incurrence test covenant will be revised to 3.75 times first-lien net leverage from 3.25 times and a technical amendment will be sought after to permit ordinary course non-recourse lease transactions consistent with past practices.

Closing is targeted for Jan. 5.

Presidio is a New York-based IT infrastructure solutions provider.

Learfield outlines ticking fee

Learfield Communications disclosed that its in-market $364 million incremental covenant-light first-lien term loan due Dec. 1, 2023 will include a ticking fee of half the spread from days 31 to 90 and the full spread thereafter, a market source remarked.

As previously reported, the incremental loan is priced at Libor plus 325 bps with a 1% Libor floor, in line with existing first-lien term loan pricing, and is talked with an original issue discount of 99.5. The debt is getting 101 soft call protection for six months.

Including the incremental loan, the first-lien term loan will total $837 million.

Commitments are due at noon ET on Tuesday.

Learfield lead banks

Deutsche Bank Securities Inc., UBS Investment Bank, KKR Capital Markets, Antares Capital, SunTrust Robinson Humphrey Inc., Barclays, Jefferies LLC, J.P. Morgan Securities LLC and RBC Capital Markets are leading Learfield’s term loan.

Proceeds will be used to fund the merger of Learfield and IMG College, a subsidiary of WME | IMG.

The company is also seeking an amendment from first-and second-lien loan lenders regarding the restricted payments made in connection with the transaction and the incremental equivalent debt incurred in the transaction.

Learfield is a Plano, Texas-based provider of collegiate sports multimedia rights administration and marketing services. IMG College represents schools, conferences and other collegiate institutions across multimedia rights, licensing, marketing, ticketing, seating, publishing, radio and digital.

Western Dental sets talk

Also in the primary market, Western Dental Services held its lender call in the morning, launching its $352.2 million term loan B (B3/B-) due June 30, 2023 at talk of Libor plus 425 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Commitments are due at noon ET on Dec. 13, the source added.

RBC Capital Markets is leading the deal that will be used to reprice an existing term loan down from Libor plus 525 basis points with a 1% Libor floor.

Western Dental, a portfolio company of New Mountain Capital, is an Orange, Calif.-based dental services organization.

Chefs’ Warehouse guidance

Chefs’ Warehouse launched on its call a $289.2 million first-lien term loan at talk of Libor plus 400 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, a market source said.

Consents are due at 3 p.m. ET on Tuesday.

Jefferies LLC is leading the deal that will be used to reprice an existing term loan down from Libor plus 475 bps with a 1% Libor floor.

Chefs’ Warehouse is a Ridgefield, Conn.-based distributor of specialty food products.

Ascensus comes to market

Ascensus surfaced early with intentions to hold a lender call at 2:30 p.m. ET to launch a $150 million incremental first-lien term loan due December 2022 and a repricing of its existing $460 million first-lien term loan due December 2022, according to a market source.

Talk on the term loan debt is Libor plus 350 bps to 375 bps with a 1% Libor floor and 101 soft call protection for six months, the source said. The incremental loan is talked with an original issue discount of 99.5 to 99.75 and the repricing is offered at par.

Also, of the total incremental loan amount, $100 million will be funded, and $50 million is delayed-draw with a ticking fee of half the margin from days 31 to 60 and the full margin thereafter.

Commitments are due at 5 p.m. ET on Dec. 14, the source added.

Credit Suisse Securities (USA) LLC is leading the deal.

The incremental loan will be used to fund tuck-in acquisitions and the repricing will take the existing term loan down from Libor plus 400 bps with a 1% Libor floor.

Ascensus is a Dresher, Pa.-based service provider of retirement and college savings plans.

Royal Oak holds call

Royal Oak Enterprises emerged in the morning with plans to hold a lender call at 1 p.m. ET to launch a $371.5 million term loan B due July 1, 2023 talked at Libor plus 325 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 at noon ET on Dec. 15, the source added.

Barclays and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to refinance an existing term loan B.

Royal Oak is a Roswell, Ga.-based maker of charcoal products.

Arris details surface

Arris Group launched on its call a $543 million term loan talked at Libor plus 225 bps with a step-down to Libor plus 200 bps at 1.5 times leverage, a 0% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Commitments are due at 5 p.m. ET on Dec. 15, the source said.

Bank of America Merrill Lynch, J.P. Morgan Securities LLC, MUFG and RBC Capital Markets are leading the deal that will be used to reprice an existing term loan from Libor plus 250 bps with a 0% Libor floor.

Arris is a Suwanee, Ga.-based telecommunications company.

Innovative XCessories OID

Innovative XCessories came out with original issue discount talk of 99.5 on its fungible $235 million incremental senior secured first-lien term loan (B) due Nov. 29, 2022 that launched with a morning call, a market source said.

Pricing on the incremental loan is Libor plus 475 bps with a 1% Libor floor, in line with existing first-lien term loan pricing, and all of the debt is getting 101 soft call protection for six months.

Jefferies LLC is leading the deal that will be used to fund an acquisition and a distribution to shareholders.

Signatures for the amendment are due by noon ET on Tuesday and new money commitments are due by 5 p.m. ET on Dec. 14, the source added.

Innovative XCessories, an Olympus Partners portfolio company, is a Huntsville, Ala.-based provider of upfit services and accessories to the automotive aftermarket and original equipment manufacturers.

Tradesmen discount talk

Tradesmen International launched on its call its $90 million incremental first-lien term loan due February 2024 at original issue discount talk of 99.5, according to a market source.

The incremental loan is priced at Libor plus 450 bps with a 1% Libor floor, in line with the existing first-lien term loan, and all of the debt is getting 101 soft call protection for six months.

Commitments are due at 5 p.m. ET on Wednesday.

Deutsche Bank Securities Inc., Macquarie Capital (USA) Inc., HSBC Securities (USA) Inc., Goldman Sachs Bank USA and Credit Suisse Securities (USA) LLC are leading the deal that will be used for acquisition financing.

Including the incremental loan, the first-lien term loan will total $344 million.

Tradesmen is a Macedonia, Ohio-based agency-based provider of outsourced skilled craftsmen to non-residential construction and industrial contractors.

Evoqua joins calendar

Evoqua Water Technologies set a lender call for 10 a.m. ET on Friday to launch a $796 million covenant-light first-lien term loan (B2/B) due December 2024 talked at Libor plus 300 bps to 325 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Commitments are due on Dec. 14, the source said.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to extend an existing term loan from January 2021 and reprice the debt from Libor plus 375 bps with a 1% Libor floor.

Lenders will be offered a 25 bps amendment fee, the source added.

Evoqua is a Warrendale, Pa.-based provider of equipment and services for water treatment.

TRC wraps

In other news, TRC Cos. Inc. completed syndication of its $325 million term loan at talk of Libor plus 350 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

UBS Investment Bank is leading the deal that will be used to reprice an existing term loan down from Libor plus 400 bps with a 1% Libor floor.

TRC is a Windsor, Conn.-based engineering, environmental consulting and construction management firm.

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