Therapy Brands breaks; Club Car, Cordis, SRAM revised; Sound Physicians tweaks timing

By Sara Rosenberg

New York, May 12 – Therapy Brands Holdings LLC finalized the spread on its first-lien term loan debt at the low side of talk, and then its first-and second-lien term loans hit the secondary market with levels quoted above their original issue discounts.

In more happenings, Club Car revised the issue price on its term loan and added a ticking fee, and Cordis (Bayou Intermediate II LLC) increased the size of its first-lien term loan B, firmed the spread at the low end of guidance and tightened the original issue discount.

Also, SRAM LLC modified spread talk and issue price on its term loan B, Sound Physicians accelerated the commitment deadline for its add-on term loan B, and MetroNet and Ascensus released price guidance with launch.

Furthermore, Camping World Holdings Inc., West Marine Inc. (Rising Tide Holdings Inc.), ProAmpac, Maximus Inc. and American Rock Salt Co. LLC joined this week’s primary calendar.

Therapy Brands updated

Therapy Brands firmed pricing on its $235 million seven-year first-lien term loan (B2/B-) and $60 million delayed-draw first-lien term loan (B2/B-) with a 24-month commitment period at Libor plus 400 basis points, the low end of the Libor plus 400 bps to 425 bps talk, according to market source.

The first-lien term loans, which were sold as a strip, still have a 25 bps step-down at 4.55x first-lien leverage, a 0.75% Libor floor and an original issue discount of 99.5. The first-lien loan has 101 soft call protection for six months, and ticking fees on the delayed-draw piece are half the margin from days 61 to 120 and the full margin thereafter.

The company’s $470 million of senior secured credit facilities also include a $40 million five-year revolver (B2/B-), a $95 million eight-year second-lien term loan (Caa2/CCC) and a $40 million delayed-draw second-lien term loan (Caa2/CCC) with a 24-month commitment period.

Pricing on the second-lien term loan debt, which was sold as a strip, is Libor plus 675 bps with a 0.75% Libor floor and a discount of 99. The debt has soft call protection of 102 in year one and 101 in year two, and the delayed-draw second-lien loan has a ticking fee of 75 bps starting on day 61.

Previously in syndication, the funded second-lien term loan was upsized from $85 million and the delayed-draw second-lien term loan was upsized from $20 million.

Therapy Brands frees up

On Wednesday, Therapy Brands’ bank debt broke for trading, with the strip of first-lien term loan debt quoted at 99¾ bid, par ¼ offered and the strip of second-lien term loan debt quoted at 99½ bid, par ½ offered, another source added.

Jefferies LLC, KKR Capital Markets, Societe Generale and Stone Point are leading the deal, with Jefferies the left lead on the first-lien and KKR the left lead on the second-lien.

The new debt will be used to help fund the buyout of the company by KKR from Lightyear Capital LLC, Oak HC/FT and Greater Sum Ventures.

Therapy Brands is a Birmingham, Ala.-based provider of integrated practice management software and payment solutions to the mental health, behavioral health and rehabilitation markets.

Club Car modified

In other news, Club Car changed the original issue discount on its $775 million seven-year senior secured term loan (B2/B) to 99.5 from 99 and added a ticking fee of half the margin from days 46 to 90 and the full margin thereafter, a market source remarked.

Pricing on the term loan remained at Libor plus 400 bps with a 0.5% Libor floor, and the debt still has 101 soft call protection for six months.

Recommitments were due at 3:15 p.m. ET on Wednesday, the source added.

Goldman Sachs Bank USA, BofA Securities Inc., Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC and Citigroup Global Markets Inc. are leading the deal that will be used with notes and equity to fund the $1.7 billion buyout of the company by Platinum Equity from Ingersoll Rand.

Closing is expected in the third quarter, subject to standard conditions.

Club Car is an Augusta, Ga.-based manufacturer of golf cars, utility, personal transportation and other low-speed vehicles, including all-electric models, and related aftermarket parts and services.

Cordis revised

Cordis raised its seven-year covenant-lite first-lien term loan B (B2/B-/BB+) to $375 million from $350 million, set pricing at Libor plus 450 bps, the low end of the Libor plus 450 bps to 475 bps talk, and modified the original issue discount to 99.5 from 99, according to a market source.

In addition, some changes were made to documentation, the source said.

As before, the term loan has a 0.75% Libor floor and 101 soft call protection for six months.

Commitments remained due at 5 p.m. ET on Wednesday, the source added.

Deutsche Bank Securities Inc., UBS Investment Bank, Credit Suisse Securities (USA) LLC and Golub Capital are leading the deal that will be used to help fund the buyout of the company by Hellman & Friedman from Cardinal Health for about $1 billion.

The equity portion of the buyout financing is being reduced with the funds from the term loan upsizing.

Closing is expected in Cardinal Health’s fiscal year 2022, subject to customary conditions and regulatory clearances.

Cordis is a developer and manufacturer of interventional vascular technology.

SRAM tweaked

SRAM revised price talk on its $1.1 billion seven-year senior secured term loan B (B1/BB-) to a range of Libor plus 275 bps to 300 bps from a range of Libor plus 300 bps to 325 bps and adjusted the original issue discount to 99.75 from 99.5, a market source remarked.

The term loan still has a 0.5% Libor floor and 101 soft call protection for six months.

JPMorgan Chase Bank is leading the deal that will be used to refinance existing debt and fund a dividend.

SRAM is a Chicago-based bicycle components company.

Sound Physicians accelerated

Sound Physicians moved up the commitment deadline for its $150 million add-on term loan B (Ba3/B) due June 2025 to 5 p.m. ET on Wednesday from Thursday, a market source said.

The add-on term loan is talked at Libor plus 325 bps with a 0.5% Libor floor, an original issue discount of 98.5 and 101 soft call protection for six months.

Goldman Sachs Bank USA and Credit Suisse Securities (USA) LLC are leading the deal that will be used to fund acquisitions and other general corporate purposes.

Sound Physicians is a Tacoma, Wash.-based provider of physician staffing services to hospitals.

MetroNet guidance

MetroNet held its call on Wednesday afternoon and announced talk on its $585 million seven-year first-lien term loan B (B2/B-) and $65 million first-lien delayed-draw term loan (B2/B-) at Libor plus 375 bps to 400 bps with a 0.75% Libor floor, 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 on May 26, the source added.

The company is also getting an $85 million privately placed second-lien term loan and a $175 million privately placed second-lien delayed-draw term loan.

Goldman Sachs Bank USA, TD Securities (USA) LLC, KKR Capital Markets, Citizens Bank and Fifth Third are leading the deal that will be used to refinance existing debt and for general corporate purposes.

The company announced last month that it is getting an investment from KKR and a new investment from its current investor Oak Hill Capital.

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

MetroNet is an Evansville, Ind.-based provider of fiber optic high-speed broadband services.

Ascensus talk

Ascensus came out with talk of Libor plus 375 bps with a 0.5% Libor floor and an original issue discount of 99 to 99.5 on its $1.05 billion seven-year first-lien term loan (B2/B-) that launched with a call during the session, a market source said.

JPMorgan Chase Bank is the left lead on the deal.

The first-lien loan will be used with a privately placed second-lien term loan (Caa2) to help fund the buyout of the company by Stone Point Capital and GIC from Genstar Capital, Aquiline Capital Partners and Atlas Merchant Capital. Genstar and Aquiline will maintain a minority stake in the company.

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

Ascensus is a Dresher, Pa.-based tech-enabled solutions provider focused on recordkeeping and administration in the U.S. tax advantages savings market.

Camping World on deck

Camping World will hold a lender call at 11 a.m. ET on Thursday to launch a $1.1 billion term loan B (Ba3), according to a market source.

Goldman Sachs Bank USA and JPMorgan Chase Bank are leading the deal that will be used to refinance an existing term loan B due 2023.

The company is also seeking an amendment to its revolver that would increase revolver capacity and extend the maturity date.

Closing is expected this month.

Camping World is a Lincolnshire, Ill.-based retailer of recreational vehicles and related products and services.

West Marine readies deal

West Marine scheduled a lender call for 1 p.m. ET on Thursday to launch $505 million of term loans, a market source remarked.

The debt consists of a $385 million first-lien term loan (B-) with 101 soft call protection for six months, and a $120 million second-lien term loan (CCC) with hard call protection of 102 in year one and 101 in year two, the source added.

Barclays, Golub Capital LLC and Nomura are leading the deal that will be used to help fund the buyout of the company by L Catterton from Monomoy Capital Partners.

Closing is expected in May, subject to customary conditions.

West Marine is an omni-channel provider of aftermarket products and services to the boating, fishing, sailing and watersports markets platform.

ProAmpac joins calendar

ProAmpac set a lender call for 9 a.m. ET on Thursday to launch a $1.8 billion term loan, according to a market source.

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

ProAmpac, a Pritzker Private Capital portfolio company, is a Cincinnati-based manufacturer of flexible packaging and material science solutions.

Maximus coming soon

Maximus will hold a lender call at 11 a.m. ET on Thursday to launch a $400 million seven-year first-lien term loan B talked at Libor plus 225 bps with a 0.5% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months, a market source said.

Commitments are due at 5 p.m. ET on May 26, the source added.

The company’s $2.1 billion of credit facilities (Ba2/BB+) also include a $600 million revolver and a $1.1 billion term loan A.

JPMorgan Chase Bank is leading the deal that will be used to help fund the acquisition of Veterans Evaluation Services Inc. for $1.4 billion, subject to certain adjustments, and to refinance existing debt.

Closing is expected in the company’s third fiscal quarter, subject to U.S. antitrust filing requirements and customary conditions.

Maximus is a Reston, Va.-based government contractor focused on health and human services programs. Veterans Evaluation Services is a provider of medical disability examinations.

American Rock on deck

American Rock Salt plans to hold a lender meeting at 10 a.m. ET on Thursday to launch a $470 million covenant-lite first-lien term loan (B2/B), according to a market source.

The company is also getting a $100 million privately placed second-lien term loan (Caa1/CCC+), the source added.

Citizens Bank is leading the deal that will be used to refinance existing debt and fund a distribution to shareholders.

American Rock Salt is a Mount Morris, N.Y.-based producer of de-icing salt.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.