Apollo Commercial, Alliant, PlayPower free to trade; Mister Car, II-VI changes emerge

By Sara Rosenberg

New York, May 7 – Apollo Commercial Real Estate Finance Inc. increased the size of its term loan B, set the spread at the low end of guidance and tightened the original issue discount before freeing the debt up for trading on Tuesday afternoon.

Also, Alliant Holdings Intermediate LLC’s incremental term loan B surfaced in the secondary market after an upsizing, and PlayPower Inc.’s credit facilities broke for trading as well.

In more happenings, Mister Car Wash Holdings Inc. shifted some funds between its funded first-lien term loan and privately placed second-lien term loan and revised the spread and issue price on its first-lien debt, and II-VI Inc. reworked sizes of its term loans while sweetening pricing and call protection on the B tranche.

Furthermore, BioScrip/Option Care Enterprises Inc. (HC Group Holdings II LLC), Globalfoundries, Liqui-Box, WEX Inc., Delek US Holdings Inc., Edgewater Generation LLC and Omnia Partners Inc. announced price talk with launch.

Additionally, Sirius Computer Solutions Inc., Jefferies Finance LLC and Worley Claims Services LLC joined this week’s new-issue calendar.

Apollo revised, trades

Apollo Commercial Real Estate Finance raised its seven-year senior secured term loan B to $500 million from $400 million, finalized pricing at Libor plus 275 basis points, the low end of the Libor plus 275 bps to 300 bps talk, and moved the original issue discount to 99.5 from 99, according to a market source.

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

Books closed at 2 p.m. ET on Tuesday and the term loan B freed to trade in the late afternoon, with levels quoted at 99¾ bid, par ¼ offered, a trader added.

J.P. Morgan Securities LLC is leading the loan that will be used for general corporate purposes.

Apollo Commercial is a New York-based real estate investment trust that primarily originates, acquires, invests in and manages performing commercial real estate mortgage loans, subordinate financings and other commercial real estate-related debt investments.

Alliant upsizes, breaks

Alliant Holdings increased its incremental senior secured covenant-lite term loan B due May 2025 to $530 million from $505 million, a market source remarked.

The incremental term loan is still priced at Libor plus 325 bps with a 0% Libor floor and an original issue discount of 99, and has 101 soft call protection for six months.

Recommitments were due at 2:30 p.m. ET on Tuesday and the loan broke for trading late day at 99 1/8 bid, 99 5/8 offered, a trader added.

Morgan Stanley Senior Funding Inc., SunTrust Robinson Humphrey Inc., Bank of America Merrill Lynch, Capital One, Fifth Third, RBC Capital Markets, KKR Capital Markets, Jefferies LLC, Macquarie Capital (USA) Inc. and Nomura are the leads on the deal that will be used to fund a distribution, repay outstanding revolver borrowings, fund general corporate purposes and pay related fees and expenses.

Closing is expected on Friday.

Alliant is a Newport Beach, Calif.-based specialty insurance brokerage firm.

PlayPower hits secondary

PlayPower’s credit facilities broke for trading too, with the $400 million seven-year covenant-lite first-lien term loan (B3) quoted at 99½ bid, par ½ offered, according to a market source.

Pricing on the term loan is Libor plus 550 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 six months.

During syndication, the first-lien term loan was upsized from $340 million and pricing was increased from Libor plus 475 bps, and a $100 million privately placed 7.5-year second-lien term loan was eliminated from the transaction.

The company’s $445 million of credit facilities also include a $45 million revolver.

SG Americas Securities LLC is leading the deal that will be used to fund a dividend and refinance existing debt.

PlayPower is a Huntersville, N.C.-based manufacturer of commercial playground equipment, shade structures and floating dock systems.

Mister Car reworked

Back in the primary market, Mister Car Wash lifted its funded seven-year first-lien term loan to $800 million from $775 million and trimmed its privately placed eight-year second-lien term loan to $225 million from $250 million, a market source said.

Also, pricing on the funded first-lien term loan and on a $40 million delayed-draw first-lien term loan was cut to Libor plus 350 bps from talk in the range of Libor plus 375 bps to 400 bps, the debt now has one leverage-based step-down in pricing instead of two leverage-based step-downs, and the original issue discount was modified to 99.75 from 99.5, the source added.

The first-lien term loan debt still has a 0% Libor floor and 101 soft call protection for six months.

Delayed-draw term loan availability is for 24 months and the delayed-draw ticking fee is half the spread for days 46 to 90 and the full spread onwards.

The company’s $1.14 billion of credit facilities also include a $75 million revolver.

Recommitments are due at 2 p.m. ET on Wednesday.

Jefferies LLC, BMO Capital Markets, Nomura and UBS Investment Bank are leading the deal that will be used by the Tucson-based car wash company to refinance existing debt and pay a distribution to shareholders.

II-VI tweaks deal

II-VI trimmed its seven-year covenant-lite term loan B (B1/BB-/BB+) to $720 million from $800 million, flexed pricing to Libor plus 350 bps from Libor plus 300 bps, extended the 101 soft call protection to one year from six months, and changed the ticking fee to half the margin from days 31 to 60, the full margin from days 61 to 90 and the full margin plus Libor thereafter, from half the margin from days 46 to 75, the full margin from days 76 to 100 and the full margin plus Libor thereafter, a market source remarked.

The term loan B still has a 0% Libor floor and an original issue discount of 99.

The company is also getting a $450 million five-year revolver and a $1,255,000,000 five-year term loan A, which was upsized from $1,175,000,000 with the term loan B downsizing.

Bank of America Merrill Lynch, PNC Bank, BMO Capital Markets, Citizens Bank, Fifth Third, MUFG, SunTrust Robinson Humphrey Inc. and TD Securities (USA) LLC are leading the credit facilities that will be used with $1 billion of combined balance sheet cash to fund the acquisition of Finisar Corp. for $15.60 in cash and 0.2218 shares of II-VI common stock per share. The transaction is valued at about $3.2 billion.

Net total leverage at close is expected to be around 3.5 times.

Closing is targeted mid-year, subject to regulatory approvals and other customary conditions.

II-VI is a Saxonburg, Pa.-based engineered materials and optoelectronic components company. Finisar is a Sunnyvale, Calif.-based optical communications company.

BioScrip/Option floats terms

BioScrip/Option Care held its bank meeting on Tuesday and disclosed talk on its $925 million seven-year covenant-lite first-lien term loan at Libor plus 400 bps to 425 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, according to a market source.

Commitments are due at noon ET on May 21, the source said.

The company is also getting a $150 million five-year asset-based revolver with initial pricing of Libor plus 250 bps. The spread can range from Libor plus 225 bps to 275 bps based on average excess availability.

Bank of America Merrill Lynch is leading the deal that will be used with $400 million of privately placed eight-year senior secured second-lien PIK toggle notes to support the merger of BioScrip and Option Care.

Under the agreement, BioScrip will issue new shares to Option Care’s shareholder, which is owned by Madison Dearborn Partners LLC and Walgreens Boots Alliance Inc., in an all-stock transaction.

Closing is expected in the third quarter, subject to regulatory approvals and BioScrip shareholder approval.

First-lien leverage is 4.3 times and total leverage is 6.2 times.

BioScrip and Option Care are providers of home and alternate treatment site infusion therapy services.

Globalfoundries guidance

Globalfoundries held its lender presentation in the morning and announced talk on its $750 million seven-year senior secured covenant-lite term loan B at Libor plus 375 bps to 400 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, a market source remarked.

Commitments are due at 5 p.m. ET on May 22, the source added.

Morgan Stanley Senior Funding Inc., MUFG and First Abu Dhabi Bank USA are leading the deal that will be used to refinance an existing 364-day bridge facility and other existing debt, and to pay related fees and expenses.

Globalfoundries is a full-service semiconductor foundry.

Liqui-Box price talk

Liqui-Box released talk of Libor plus 450 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months on its $530 million seven-year term loan B that launched with a morning bank meeting, according to a market source.

The company’s $605 million of senior secured credit facilities also include a $75 million five-year revolver.

Commitments are due on May 21, the source said.

Antares Capital is leading the deal, which will be used to refinance existing debt and support the acquisition of DS Smith’s plastics division.

Liqui-Box, an Olympus Partners portfolio company, is a Richmond, Va.-based provider of liquid packaging solutions to a variety of blue-chip customers across the beverage, dairy and foodservice end markets. DS Smith Plastics is a provider of Bag-in-Box and dispensing solutions, fitments and returnable rigid plastic packaging.

WEX comes to market

WEX held a lender call in the afternoon to launch a $1,318,000,000 covenant-lite term loan B due 2026 talked at Libor plus 225 bps with a 0% Libor floor, an original issue discount in the 99.25 area and 101 soft call protection for six months, sources said.

Commitments are due at noon ET on Monday, sources added.

Bank of America Merrill Lynch is the left lead on the deal that will be used to amend and extend an existing $1,318,000,000 term loan B due 2023 priced at Libor plus 225 bps with a 0% Libor floor.

The amendment would revise the consolidated secured leverage ratio definition, the consolidated leverage ratio definition, the designated borrower sublimit, permitted indebtedness, the indebtedness definition and the permitted investments covenant.

Secured and total debt to LTM adjusted EBITDA is 4.13 times.

WEX is a South Portland, Maine-based provider of corporate payment solutions.

Delek OID guidance

Delek US Holdings came out with original issue discount talk of 99 to 99.5 on its fungible $250 million add-on covenant-lite term loan B (BBB-) due March 30, 2025 that launched with a morning call, according to a market source.

The add-on term loan is priced at Libor plus 225 bps with a 0% Libor floor and has 101 soft call protection for six months.

Commitments are due at noon ET on May 15.

Wells Fargo Securities LLC is leading the deal that will be used to repay borrowings under the company’s ABL facility and pay transaction-related fees and expenses.

The company’s existing term loan B is sized at $693 million.

Delek is a Brentwood, Tenn.-based Permian-based integrated downstream energy company.

Edgewater holds call

Edgewater Generation surfaced in the morning with plans to hold a lender call at 3 p.m. ET to launch a fungible $250 million incremental first-lien term loan due Dec. 13, 2025 talked with an original issue discount of 99.5, a market source remarked.

Like the existing term loan, the incremental term loan is priced at Libor plus 375 bps with a 0% Libor floor and has 101 soft call protection through June 10.

The incremental loan includes a ticking fee of half the margin from days 46 to 90 and the full margin thereafter.

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

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used for acquisition financing.

Lenders are offered a 12.5 bps amendment fee.

Edgewater is a portfolio of gas-fired merchant power generation assets.

Omnia sets talk

Omnia Partners launched with a call its $160 million add-on first-lien term loan (B2/B) at talk of Libor plus 375 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

Commitments are due at 5 p.m. ET on May 14, the source said.

Barclays, Jefferies LLC and Fifth Third are leading the deal that will be used with a $46 million pre-placed add-on second-lien term loan (Caa2/CCC+) to fund a distribution to shareholders.

TA Associates is the sponsor.

Omnia is a Franklin, Tenn.-based group purchasing organization.

Sirius readies deal

Also in the primary market, Sirius Computer Solutions set a bank meeting for 10 a.m. ET in New York on Wednesday to launch $940 million of credit facilities, according to a market source.

The facilities consist of a $190 million revolver, and a $750 million seven-year covenant-lite first-lien term loan that has 101 soft call protection for six months, the source said.

Commitments are due at 5 p.m. ET on May 20.

Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., UBS Investment Bank, Barclays, Deutsche Bank Securities Inc., Goldman Sachs Bank USA, ING, Macquarie Capital (USA) Inc., MUFG, Natixis, Nomura, RBC Capital Markets and SunTrust Robinson Humphrey Inc. are leading the debt, which will be used to help fund the buyout of the company by Clayton, Dubilier & Rice from Kelso & Co.

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

Sirius is a San Antonio, Texas-based provider of mission-critical IT infrastructure solutions.

Jefferies Finance on deck

Jefferies Finance scheduled a bank meeting for Wednesday to launch $975 million of credit facilities, a market source remarked.

The facilities consist of a $275 million three-year revolver and a $700 million seven-year first-lien term loan, the source added.

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

Jefferies LLC, Citigroup Global Markets Inc. and HSBC Securities (USA) Inc. are leading the credit facilities that will be used with cash on hand and a planned high-yield offering to refinance existing debt and reduce non-funding debt.

Jefferies is a New York-based leveraged loan arranger and investor with over $11 billion of managed capital equally owned by Jefferies Group LLC and Massachusetts Mutual Life Insurance Co.

Worley joins calendar

Worley Claims Services scheduled a bank meeting in New York for Thursday to launch $400 million of first-lien senior secured credit facilities, a market source said.

The debt consists of a $50 million five-year revolver, a $300 million seven-year covenant-lite first-lien term loan and a $50 million delayed-draw seven-year first-lien term loan, the source added.

The company is also getting a $120 million second-lien term loan that has been privately placed.

Antares Capital is leading the deal that will be used to help fund the buyout of the company by Kohlberg & Co. and Worley’s management team.

Worley is a Fishers, Ind.-based provider of insurance claims management services.

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