MRO firms terms; U.S. Renal, Imperial Dade, Covenant Surgical, AccentCare, ABC set talk

By Sara Rosenberg

New York, May 30 – On Thursday, MRO Holdings Inc. finalized the spread on its term loan B at the wide end of guidance, and U.S. Renal Care Inc., Imperial Dade (BCPE Empire Holdings Inc.), Covenant Surgical Partners Inc., AccentCare Inc. and ABC Financial Inc. disclosed price talk with launch.

Also, WaterBridge Operating LLC, Corel Corp. and Tortoise Borrower LLC joined the near-term primary calendar.

MRO updated

MRO Holdings set pricing on its $360 million senior secured term loan B (B2/BB-) at Libor plus 500 basis points, the high end of the Libor plus 475 bps to 500 bps talk, and left the 0% Libor floor, original issue discount of 99.5 and 101 soft call protection for six months unchanged, according to a market source.

RBC Capital Markets and Credit Suisse Securities (USA) LLC are leading the deal that will be used to refinance existing debt and fund a distribution to shareholders.

Closing is expected on Friday.

Caoba Capital is the sponsor.

MRO Holdings is a provider of maintenance, repair and overhaul services to the airline and freight carrier industries.

U.S. Renal launches

U.S. Renal Care held its bank meeting on Thursday afternoon and released talk on its $1.62 billion first-lien term loan B at Libor plus 450 bps to 475 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, a market source said.

The company’s $1.77 billion of credit facilities (B2/B) also include a $150 million revolver.

Commitments are due at 5 p.m. ET on June 13, the source added.

Barclays, Bank of America Merrill Lynch, BMO Capital Markets, Macquarie Capital (USA) Inc., RBC Capital Markets and SunTrust Robinson Humphrey Inc. are leading the credit facilities that will be used with $510 million of unsecured debt to help fund the buyout of the company by Chris Brengard and management, along with Bain Capital Private Equity, Summit Partners, Revelstoke Capital Partners and Mark Caputo.

Closing is subject to customary closing conditions, including regulatory approvals.

U.S. Renal is a Plano, Texas-based provider of dialysis services.

Imperial Dade guidance

Imperial Dade came out with talk of Libor plus 400 bps to 425 bps with a 0% Libor floor and an original issue discount of 99 on its $790 million seven-year covenant-lite first-lien term loan (B3/B), of which $130 million is delayed-draw, shortly before its morning bank meeting began, a market source remarked.

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

Commitments are due at 5 p.m. ET on June 12.

The company’s $1,265,000,000 of credit facilities also include a $175 million ABL revolver, a privately placed $250 million second-lien term loan (Caa2/CCC+) and a privately placed $50 million delayed-draw second-lien term loan (Caa2/CCC+).

Credit Suisse Securities (USA) LLC, Barclays and Citizens Bank are leading the deal that will be used to help fund the buyout of the company by Bain Capital. Audax Private Equity will retain a stake in the company.

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

Imperial Dade is a distributor of disposable food service and janitorial supplies with headquarters in Jersey City, N.J., and Miami.

Covenant Surgical talk

Covenant Surgical Partners launched at its morning bank meeting its $250 million first-lien term loan (B2/B-) at talk of Libor plus 400 bps to 425 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 on June 13, the source said.

The company’s $385 million of credit facilities also include a $35 million revolver (B2/B-) and a $100 million privately placed second-lien term loan (Caa2/CCC).

KKR Capital Markets is leading the deal that will be used to refinance existing debt and fund acquisitions under letters of intent.

Covenant Surgical is a Nashville, Tenn.-based acquirer and operator of ambulatory surgery centers and physician practices.

AccentCare proposed terms

AccentCare held its meeting in the morning and launched its $355 million seven-year first-lien term loan at talk of Libor plus 425 bps to 450 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, a market source said.

J.P. Morgan Securities LLC is leading the deal that will be used to help fund the buyout of the company by Advent International from Oak Hill Capital Partners.

AccentCare is a Dallas-based provider of post-acute health care.

ABC holds call

ABC Financial announced original issue discount talk of 99.25 to 99.5 on its fungible $115 million incremental first-lien term loan (B3/B-) that launched with a lender call in the morning, according to a market source.

Like the existing first-lien term loan, the incremental term loan is priced at Libor plus 425 bps with a 1% Libor floor.

The first-lien term loan debt is getting 101 soft call protection for six months, the source said.

Commitments are due at 3 p.m. ET on June 6.

Jefferies LLC is leading the deal that will be used to refinance an existing second-lien term loan.

ABC Financial is a Little Rock, Ark.-based software and payment processing company.

WaterBridge on deck

WaterBridge scheduled a bank meeting for Monday to launch $1.15 billion of credit facilities, a market source remarked.

The facilities consist of a $150 million five-year revolver and a $1 billion seven-year term loan B (B1), the source added.

Barclays, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, ING, RBC Capital Markets, SunTrust Robinson Humphrey Inc. and Wells Fargo Securities LLC are leading the deal that will be used to repay an existing revolver and term loan A, to fund the acquisition of water infrastructure assets from PDC Energy for $125 million and to prefund capital expenditures.

Closing is expected in mid-2019.

Five Point Energy is the sponsor.

WaterBridge is a Houston-based midstream company that owns and operates extensive permanent water infrastructure systems strategically located in the Delaware and Arkoma basins.

Corel coming soon

Corel surfaced with plans to hold a bank meeting at 10:30 a.m. ET in New York on Monday to launch $610 million of first-lien credit facilities, according to sources.

The facilities consist of a $60 million revolver (B2) and a $550 million first-lien term loan (B2), sources said.

The company is also getting a $135 million privately placed second-lien term loan.

Citigroup Global Markets Inc., KKR Capital Markets and Barclays are leading the deal that will be used to help fund the buyout of the company by KKR from Vector Capital.

Corel is an Ottawa-based software company.

Tortoise readies loan

Tortoise set a lender call for 11 a.m. ET on Monday to launch a $40 million incremental term loan B, a market source said.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to fund the acquisition of the midstream energy asset management business of Advisory Research Inc., a subsidiary of Piper Jaffray Cos.

Closing is expected in the second half of the year, subject to regulatory approval and customary conditions, including fund board/shareholder approval.

Tortoise is a Leawood, Kan.-based provider of investment solutions and market insights.

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