Evoqua, Accudyne, Eyemart break; PQ, Certara revise deals; Carestream Dental moves deadline

By Sara Rosenberg

New York, Aug. 2 – Evoqua Water Technologies (EWT Holdings III Corp.) tightened the issue price on its tack-on first-lien term loan and then freed up for trading on Wednesday, and Accudyne Industries LLC and Eyemart Express LLC emerged in the secondary market as well.

In more happenings, PQ Corp. cut pricing on its U.S. term loan, revised floors on the U.S. loan and on a euro loan and removed step-downs, and Certara trimmed the spread on its first-lien term loan and modified original issue discount talk.

Also, Carestream Dental Equipment Inc. accelerated the commitment deadline on its loan transaction, and Staples Inc., ATI Holdings Acquisition Inc., Sparta Systems Inc., P.F. Chang’s, SpecialtyCare, KinderCare (Kuehg Corp.) and Russell Investments disclosed price talk with launch, and DXP Enterprises released guidance ahead of its bank meeting.

Furthermore, Wilsonart LLC, Vectra Co. (Duke Finance LLC), Trinseo Materials, Give & Go Prepared Foods Corp., Brown Jordan International Inc., Limetree Bay Terminals LLC, BHI Energy Inc. and BBB Industries LLC joined the near-term primary calendar.

Evoqua tweaked, trades

Evoqua Water Technologies modified the issue price on its $80 million tack-on first-lien term loan (B2/B) due Jan. 15, 2021 to par from 99.75, according to a market source.

As before, pricing on the tack-on loan as well as on the repricing of the company’s $183 million incremental first-lien term loan (B2/B) due Jan. 15, 2021 is Libor plus 375 basis points with a 1% Libor floor, and the repricing is offered at par.

The term debt has 101 soft call protection for six months that includes an IPO carve-out.

Recommitments were due at noon ET on Wednesday and then the debt broke for trading with levels quoted at par ½ bid, 101 offered, another source added.

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

The tack-on loan will be used to repay revolver borrowings and for general corporate purposes, and the repricing will take the incremental term loan down from Libor plus 450 bps with a 1% Libor floor.

The tack-on loan and the repriced loan will be fungible with the company’s existing $636 million term loan that is priced at Libor plus 375 bps with a 1% Libor floor.

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

Accudyne hits secondary

Accudyne’s credit facilities freed to trade as well, with the $825 million seven-year covenant-light first-lien term loan (B3/B) quoted at par ¼ bid, par ¾ offered, a trader remarked.

Pricing on the term loan is Libor plus 375 bps with a step-down to Libor plus 350 bps at 0.75 times below closing net total leverage and a 1% Libor floor. The debt was sold at an original issue discount of 99.75 and has 101 soft call protection for six months.

During syndication, the first-lien term loan was upsized from $705 million as the company terminated plans for a $120 million eight-year covenant-light second-lien term loan, pricing was firmed at the low end of the Libor plus 375 bps to 400 bps talk and the discount was tightened from 99.5.

Talk on the cancelled second-lien term loan was Libor plus 775 bps to 800 bps with a 1% Libor floor, a discount of 99 and hard call protection of 102 in year one and 101 in year two.

Accudyne getting revolver

In addition to the first-lien term loan, Accudyne’s $975 million of senior secured credit facilities include a $150 million five-year revolver.

Morgan Stanley Senior Funding Inc., Deutsche Bank Securities Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA and RBC Capital Markets are leading the deal.

Proceeds will be used to refinance existing debt, for working capital and for general corporate purposes.

Closing is expected in late August.

Accudyne is a Dallas-based provider of precision engineered, process-critical and technologically advanced flow control systems and industrial compressors.

Eyemart frees up

Eyemart Express $355 million seven-year covenant-light first-lien term loan (B1/B) began trading too, with levels quoted at par bid, par 7/8 offered, according to a trader.

Pricing on the term loan is Libor plus 300 bps with a 1% Libor floor and it was sold at an original issue discount of 99.75. The debt has 101 soft call protection for six months.

During syndication, pricing on the term loan was lowered from Libor plus 325 bps and the discount was revised from 99.5.

Barclays and Wells Fargo Securities LLC are leading the deal that will be used to refinance existing debt, fund a distribution to shareholders and pay related fees and expenses.

Eyemart is a Farmers Branch, Texas-based optical retailer.

PQ reworks loans

Back in the primary market, PQ reverse flexed pricing on its $920.8 million senior secured covenant-light term loan (B2/B+) due Nov. 4, 2022 to Libor plus 325 bps from Libor plus 350 bps and reduced the Libor floor to 0% from 1%, according to a market source.

The company’s €281.2 million senior secured covenant-light term loan (B2/B+) due Nov. 4, 2022 is still priced at Euribor plus 325 bps but the floor was scaled back to 0.75% from 1%, the source said.

Also, the company removed the 25 bps step-down at 4.75 times total net leverage from both loans.

The term loans are still offered at par and have 101 soft call protection for six months.

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

Citigroup Global Markets Inc. is leading the deal that will be used to reprice an existing U.S. term loan down from Libor plus 425 bps with a 1% Libor floor and an existing euro term loan down from Euribor plus 400 bps with a 1% floor.

Closing is expected during the week of Aug. 7.

PQ is a Malvern, Pa.-based producer of specialty inorganic performance chemicals and catalysts.

Certara updates deal

Certara trimmed pricing on its $250 million seven-year senior secured first-lien term loan (B2/B) to Libor plus 400 bps from talk of Libor plus 425 bps to 450 bps, and revised original issue discount talk to a range of 99 to 99.5 from just 99, a market source said.

The term loan still has a 1% Libor floor and 101 soft call protection for six months.

Commitments are due at noon ET on Thursday, moved up from Friday, the source added.

The company’s credit facilities also include a $20 million five-year senior secured revolver (B2/B) and a $100 million pre-placed eight-year HoldCo unsecured term loan.

Jefferies LLC and Golub are leading the deal that will be used to help fund the buyout of the company by EQT from Arsenal Capital Partners for $850 million. Arsenal Capital will retain a minority ownership stake in the company.

Certara is a Princeton, N.J.-based provider of technology-driven decision support solutions for drug development.

Carestream modifies deadline

Carestream Dental Equipment accelerated the commitment deadline on its $455 million of credit facilities (B2/B) to 5 p.m. ET on Thursday from 5 p.m. ET on Monday, a market source said.

The facilities include an $80 million revolver, and a $375 million seven-year covenant-light first-lien term loan talked at Libor plus 375 bps to 400 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., HSBC Securities (USA) Inc., ING, Goldman Sachs Bank USA and Jefferies LLC are leading the deal that will be used to help fund the buyout of the company by Clayton, Dubilier & Rice and CareCapital Advisors Ltd. from Carestream.

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

Carestream Dental is a provider of imaging systems, practice management software and other services to the dental market.

Staples discloses talk

Also in the primary market, Staples held its bank meeting on Wednesday, launching its $2.4 billion seven-year first-lien term loan at talk of Libor plus 425 bps with a 1% 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 on Aug. 14, the source added.

UBS Investment Bank, Bank of America Merrill Lynch, Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, RBC Capital Markets, Jefferies LLC, Fifth Third Bank, Goldman Sachs Bank USA, Citigroup Global Markets Inc., KKR Capital Markets and Natixis are leading the deal.

Along with the term loan, the company is getting a $1.2 billion ABL facility for which Wells Fargo is the left lead.

Staples being acquired

Proceeds from Staples credit facilities will be used to help fund its buyout by Sycamore Partners for $10.25 in cash per share of common stock. The transaction is valued at about $6.9 billion.

As part of the financing packaging, the company has received a commitment for a $1.6 billion unsecured bridge loan for which Bank of America is the left lead.

In connection with the acquisition, there will be an internal reorganization under which the U.S. Retail, Canadian Retail, and North American Delivery business will be separated into stand-alone entities.

The debt financing is for the North American Delivery business, which will have pro forma leverage of around 4 times.

Closing is expected no later than December, subject to customary conditions, including the receipt of regulatory and stockholder approval. The transaction is not subject to a financing condition.

Staples is a Framingham, Mass.-based retailer of office supplies.

ATI reveals guidance

ATI Holdings came out with talk of Libor plus 350 bps to 375 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months on its $758 million term loan B due May 10, 2023 that launched with a morning call, a market source remarked.

Commitments/consents are due at noon ET on Aug. 9, the source added.

Barclays, Jefferies LLC and HSBC Securities (USA) LLC are leading the deal that will be used to reprice an existing term loan B down from Libor plus 450 bps with a 1% Libor floor.

Advent International is the sponsor.

ATI is a Bolingbrook, Ill.-based outpatient physical therapy provider.

Sparta Systems launches

Sparta Systems launched at its bank meeting its $240 million seven-year first-lien term loan (B-) at talk of Libor plus 425 bps with a 1% Libor floor and an original issue discount of 99, a market source said.

As previously reported, the term loan has 101 soft call protection for six months.

The company’s senior secured credit facilities also include a $25 million revolver (B-) and a privately placed $75 million eight-year second-lien term loan (CCC).

Commitments are due on Aug. 16, the source added.

Jefferies LLC, Ares and BMO Capital Markets are leading the deal that will be used to help fund the buyout of Sparta Systems by New Mountain Capital LLC from Thoma Bravo LLC, which will retain a minority stake in the company.

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

Sparta Systems is a Hamilton N.J.-based provider of quality management system software to the pharmaceutical, medical device and CPG industries.

P.F. Chang’s holds call

P.F. Chang’s had its call in the afternoon, launching a $325 million five-year first-lien term loan at talk of Libor plus 500 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, a market source remarked.

The company’s $380 million of credit facilities also include a $55 million revolver.

Commitments are due at noon ET on Aug. 14, the source added.

Barclays, Deutsche Bank Securities Inc., KeyBanc Capital Markets and BMO Capital Markets are leading the deal that will be used to refinance existing bank debt.

Net first-lien leverage is 2 times and net total leverage is 4.3 times.

P.F. Chang’s, a Centerbridge Partners portfolio company, is a Scottsdale, Ariz.-based restaurant company.

SpecialtyCare reveals talk

SpecialtyCare announced price talk on its $212 million six-year covenant-light first-lien term loan and $83 million seven-year second-lien term loan with its bank meeting on Wednesday, a market source said.

Talk on the first-lien term loan is Libor plus 425 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, and talk on the second-lien term loan is Libor plus 825 bps with a 1% Libor floor, a discount of 98.5 to 99 and hard call protection of 102 in year one and 101 in year two, the source added.

The company’s $340 million of credit facilities also include a $45 million five-year revolver.

Commitments are due on Aug. 14.

Antares Capital is leading the deal that will be used to help fund the buyout of the company by Kohlberg & Co.

SpecialtyCare is a Nashville, Tenn.-based provider of outsourced clinical services to hospitals and health systems.

KinderCare details emerge

KinderCare held its call in the afternoon, and a few hours before the event kicked off, it was revealed that the company would be approaching lenders with a fungible $50 million incremental first-lien term loan (B1) due August 2022 and a $260 million eight-year covenant-light second-lien term loan (Caa2), according to a market source.

Talk on the incremental first-lien term loan is Libor plus 375 bps with a 1% Libor floor, in line with existing first-lien term loan pricing, an original issue discount of 99.5 and 101 soft call protection for one year, and talk on the second-lien term loan is Libor plus 825 bps to 850 bps with a 1% Libor floor, a discount of 99 and call protection of 102 in year one and 101 in year two, the source said.

Commitments are due on Aug. 16, the source added.

Credit Suisse Securities (USA) LLC and Barclays are leading the deal that will fund a shareholder distribution.

The company is seeking an amendment to its existing credit agreement to allow for the distribution and existing lenders are offered a 25 bps consent fee.

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

Russell releases terms

Russell Investments disclosed talk of Libor plus 425 bps to 450 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months on its $843 million term loan B (Ba2/BB/BB) due June 1, 2023 that launched with a late morning call, according to a market source.

Commitments/consents are due at noon ET on Aug. 9, the source said.

Barclays is leading the deal that will be used to reprice an existing term loan from Libor plus 575 bps with a 1% Libor floor.

Russell Investments is a Seattle-based asset manager.

DXP floats talk

DXP Enterprises released talk on its $250 million six-year senior secured term loan B (B3/B+) at Libor plus 550 bps to 600 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months ahead of its Thursday bank meeting, according to a market source.

The company’s $335 million of credit facilities also include an $85 million five-year ABL revolver.

Commitments are due on Aug. 15, the source said.

Goldman Sachs Bank USA, BMO Capital Markets and Bank of America Merrill Lynch are leading the deal that will be used to refinance existing debt and for general corporate purposes.

DXP is a Houston-based provider of technical products and services for MRO, OEM and capital equipment customers.

Wilsonart coming soon

Wilsonart scheduled a lender call for 9:30 a.m. ET on Thursday to launch a $1,194,000,000 covenant-light term loan B due December 2023 talked at Libor plus 300 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 Aug. 10, the source said.

Deutsche Bank Securities Inc. is the left lead on the deal that will be used to reprice an existing term loan B down from Libor plus 350 bps with a 1% Libor floor.

Wilsonart is a Temple, Texas-based engineered surfaces company.

Vectra joins calendar

Vectra emerged with plans to hold a lender call at noon ET on Thursday to launch a $474 million first-lien term loan (B2/B) due Feb. 21, 2024 talked at Libor plus 425 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, a market source said.

Commitments are due on Aug. 10, the source added.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to reprice an existing term loan down from Libor plus 500 bps with a 1% Libor floor.

Vectra, formerly known as OM Group Inc., is a St. Louis-based technology-driven specialty materials and specialty chemicals company.

Trinseo refinancing

Trinseo Materials will hold a bank meeting at 12:30 p.m. ET on Monday to launch a $700 to $800 million seven-year first-lien term loan, according to a market source.

Barclays and Deutsche Bank Securities Inc. are leading the deal that will be used to refinance existing debt.

Trinseo is a Berwyn, Pa.-based materials solutions provider and manufacturer of plastics, latex binders and synthetic rubber.

Give & Go readies deal

Give & Go Prepared Foods set a bank meeting for 12:30 p.m. ET in New York on Thursday to launch a $475 million covenant-light first-lien term loan due July 2023, a market source remarked.

The term loan has 101 soft call protection for six months, the source added.

Deutsche Bank Securities Inc. is the left lead on the deal that will be used for a recapitalization.

Give & Go is a Toronto-based manufacturer of value-added baked goods.

Brown Jordan on deck

Brown Jordan scheduled a lender call for 10:30 a.m. ET on Thursday to launch a repricing of its $165 million term loan B (B2/B) due 2023, according to a market source.

Commitments are due at noon ET on Aug. 9, the source said.

Goldman Sachs Bank USA is leading the deal.

Brown Jordan is a St. Augustine, Fla.-based manufacturer of indoor and outdoor furniture.

Limetree repricing

Limetree Bay Terminals set a lender call for 2:30 p.m. ET on Thursday to launch a repricing of its $465 million term loan B, according to a market source.

Cashless roll is available for the repricing, the source said.

Barclays is leading the deal.

Limetree Bay is a Christiansted, Virgin Islands-based owner of the oil terminal at Limetree Bay, St. Croix, U.S. Virgin Islands.

BHI deal surfaces

BHI Energy scheduled a conference call for Thursday to launch $224 million of first-lien credit facilities, a market source said.

The debt consists of a $70 million five-year revolver and a $174 million seven-year first-lien term loan, the source continued.

In addition, the company separately placed a $65 million second-lien term loan.

Antares Capital is leading the deal that will be used to help fund the buyout of the company by AE Industrial Partners.

BHI Energy is a Weymouth, Mass.-based provider of critical on-site services needed to support the daily operations, routine maintenance and capital investment requirements for the power generation, oil & gas and transmission & distribution end markets.

BBB plans call

BBB Industries will hold a call at 10 a.m. ET on Thursday for credit facility lenders, a market source remarked.

Nomura is leading the transaction.

BBB is a Daphne, Ala.-based remanufacturer of automotive products for the North American aftermarket.

Peak 10 closes

In other news, Peak 10 Holding Corp. completed its acquisition of ViaWest Inc. from Shaw Communications Inc. for $1,675,000,000, a news release said.

To help fund the transaction and refinance existing debt, Peak 10 got $1.51 billion in term loans split between a $1.2 billion seven-year first-lien term loan and a $310 million eight-year second-lien term loan.

Pricing on the first-lien term loan is Libor plus 350 bps with a 0% Libor floor and it was sold at an original issue discount of 99.5, and pricing on the second-lien term loan is Libor plus 725 bps with a 1% Libor floor and it was issued at a discount of 99.

The first-lien term loan has 101 soft call protection for six months and the second-lien term loan has hard call protection of 102 in year one and 101 in year two.

Peak 10 lead banks

J.P. Morgan Securities LLC, Citigroup Global Markets Inc., ING and SunTrust Robinson Humphrey Inc. led Peak 10’s term loans, with JPMorgan left lead on the first-lien and Citigroup left lead on the second-lien.

During syndication, the first-lien term loan was upsized from $1.12 billion and pricing was cut from talk of Libor plus 375 bps to 400 bps, and the second-lien term loan was downsized from $390 million while pricing was flexed from talk of Libor plus 750 bps to 775 bps.

Peak 10, a portfolio company of GI Partners, is a Charlotte, N.C.-based IT infrastructure and cloud provider. ViaWest is a Greenwood Village, Colo.-based IT and infrastructure solutions provider.

© 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.