Avantor, TruGreen, Precision Medicine, OneDigital, Zywave, Veracode, Resolute, Wrench break

By Sara Rosenberg

New York, Oct. 30 – Avantor Funding Inc. reduced the size of its term loan B and set the original issue discount at the wide end of talk, and TruGreen LP finalized the spread on its second-lien term loan at the low side of guidance, and then both of these deals broke for trading on Friday.

Also, before hitting the secondary market, Precision Medicine Group LLC moved some funds between its funded and delayed-draw first-lien term loans, firmed pricing at the high side of talk, eliminated a step-down and revised the issue price, and OneDigital widened the spread and issue price on its first-lien term loan debt and sweetened the call protection.

Additionally, Zywave Inc. raised pricing on its first-lien term loan B and revised the original issue discount, and Veracode (Valkyr Purchaser LLC) firmed pricing on its first-lien term loan B at the low end of talk, and then freed to trade as well.

Other deals to surface in the secondary market during the session included Resolute Investment Managers Inc. and Wrench Group LLC.

In more happenings, Park Place Technologies LLC set the spread on its first-lien term loan at the high end of guidance, modified the original issue discount and extended the call protection, Capstone Logistics LLC upsized its first-lien delayed-draw term loan and revolver, and firmed first-lien term loan pricing at the low end of talk, and PetSmart Inc. withdrew its term loan B from market.

Avantor finalized, trades

Avantor trimmed its seven-year term loan B (Ba2/BB-/BB+) to $1.175 billion from $1.35 billion and firmed the original issue discount at 99, the wide end of the 99 to 99.5 talk, a market source said.

Pricing on the term loan remained at Libor plus 250 basis points with a 25 bps step-down upon a Moody’s upgrade to Ba3 corporate and a 1% Libor floor.

Commitments were due at noon ET on Friday and the term loan B broke for trading in the afternoon, with levels quoted at 99 1/8 bid, 99 5/8 offered, another source added.

Goldman Sachs Bank USA and Citigroup Global Markets Inc. are leading the deal that will be used with €650 million of senior secured notes, upsized from €550 million, and a $57 million increase in an accounts receivable facility draw to refinance the company’s existing U.S. and euro secured notes.

Avantor is a Radnor, Pa.-based provider of mission critical products and services to customers in the life sciences, advanced technologies and applied materials industries.

TruGreen updated, breaks

TruGreen firmed the spread on its $275 million eight-year second-lien term loan (Caa1/CCC+) at Libor plus 850 bps, the low end of the Libor plus 850 bps to 875 bps talk, according to a market source.

As before, the second-lien term loan has a 0.75% Libor floor, an original issue discount of 98 and call protection of non-callable for one year, then at 102 in year two and 101 in year three.

The company’s $1.15 billion seven-year first-lien term loan (B1/B) wrapped at talk at Libor plus 400 bps with a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

On Friday, the debt began trading, with the first-lien term loan quoted at 99¼ bid, 99¾ offered, another source added.

J.P. Morgan Securities LLC is the left lead on the $1.425 billion of term loans that will be used to refinance existing bank debt and fund a dividend.

TruGreen is a Memphis, Tenn.-based provider of lawn care, tree & shrub and mosquito services.

Precision Medicine reworked

Precision Medicine Group raised its funded seven-year covenant-lite first-lien term loan to $575 million from $550 million and downsized its delayed-draw covenant-lite first-lien term loan to $75 million from $100 million, according to a market source.

Pricing on the term loan debt finalized at Libor plus 375 bps, the high end of the Libor plus 350 bps to 375 bps talk, a 25 bps step-down at 5x net first-lien leverage was removed, the original issue discount widened to 98.5 from 99 and some revisions were made to documentation, the source said.

Also, the delayed-draw term loan ticking fee was modified to half the margin from days 31 to 60 and the full margin thereafter from 1% from days 61 to 120, half the margin from days 121 to 360 and the full margin thereafter.

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

The company’s $735 million of credit facilities (B2/B-) also include an $85 million five-year revolver.

Precision Medicine frees up

Recommitments for Precision Medicine’s credit facilities were due at 10:30 a.m. ET on Friday and later in the day the debt made its way into the secondary market, with the strip of funded and delayed-draw term loan debt quoted at 98½ bid, 99 offered, a trader added.

Morgan Stanley Senior Funding Inc., Goldman Sachs Bank USA, Mizuho and Blackstone are leading the deal that will be used to help fund the buyout of the company by Blackstone Group and the extra funded term loan portion will add cash to the balance sheet.

Precision Medicine is a specialized health care services company that provides product development and commercialization support for pharmaceutical and life sciences businesses.

OneDigital modified

OneDigital increased pricing on its $1.08 billion first-lien term loan due 2027 and $200 million delayed-draw first-lien term loan to Libor plus 450 bps from talk in the range of Libor plus 400 bps to 425 bps, according to a market source.

Also, original issue discount talk on the term loan debt was changed to a range of 97 to 97.5 from 99, and then firmed up later in the day at 97.5, and the 101 soft call protection was extended to one year from six months, the source said.

The term loan still has a 0.75% Libor floor.

The delayed-draw term loan has a ticking fee of half the spread from days 46 to 60 and the full spread plus Libor floor or Libor thereafter.

The company’s $1.43 billion of credit facilities (B3/B) also include a $150 million five-year revolver.

OneDigital tops OID

OneDigital’s first-lien term loan debt started trading the afternoon, with levels quoted at 97¾ bid, 98¼ offered, another source added.

J.P. Morgan Securities LLC, Barclays, Goldman Sachs Bank USA and Golub are leading the deal that will be used with $960 million of equity to fund the acquisition of the company by Onex Corp. from New Mountain Capital in a transaction that values OneDigital at $2.65 billion.

Closing is expected by the end of the year, subject to customary conditions and regulatory approvals.

OneDigital is an Atlanta-based provider of employee benefits insurance brokerage and retirement consulting services.

Zywave revised, breaks

Zywave lifted pricing on its $340 million seven-year covenant-lite first-lien term loan B to Libor plus 450 bps from Libor plus 400 bps, moved the original issue discount to 98.5 from talk in the range of 99 to 99.5 and made some changes to documentation, a market source remarked.

The term loan, of which $331.5 million is funded and $8.5 million is unfunded, still has a 0.75% Libor floor and 101 soft call protection for six months.

The company’s $390 million senior secured deal (B2/B-) also includes a $50 million five-year revolver.

Commitments were due at 10 a.m. ET on Friday and the strip of funded and unfunded term loan debt freed to trade during the session, with levels quoted at 98½ bid, 99 offered, another source added.

Morgan Stanley Senior Funding Inc., Credit Suisse Securities (USA) LLC, Antares Capital, Ares and Golub are leading the deal that will be used with a privately placed second-lien term loan to fund the acquisition of Zywave, to provide for working capital needs and general corporate purposes, and to pay related fees and expenses.

Closing is expected in mid-November.

Zywave is a Milwaukee-based insurance technology provider.

Veracode firms, trades

Veracode finalized pricing on its $300 million seven-year first-lien term loan B (B2/B-/BB+) at Libor plus 400 bps, the low end of the Libor plus 400 bps to 425 bps talk, and left the 0.75% Libor floor, original issue discount of 99 and 101 soft call protection for six months unchanged, according to a market source.

On Friday, the term loan B emerged in the secondary market and levels were quoted at 99 1/8 bid, 99 5/8 offered, another source added.

Barclays and Deutsche Bank Securities Inc. are leading the deal that will be used to refinance the company’s $300 million of existing borrowings and pay related fees and expenses.

Closing is expected on Thursday.

Veracode is a Burlington, Mass.-based provider of SaaS based application security testing solutions designed to enhance security and proactively prevent security breaches.

Resolute hits secondary

Resolute Investment Managers’ bank debt broke for trading too, with the fungible $25 million add-on first-lien term loan (Ba3/B+) due April 2024 and the extended $280.5 million first-lien term loan (Ba3/B+) due April 2024 quoted at 99½ bid, 99¾ offered, and the extended $105 million second-lien term loan (B3/B-) due April 2025 quoted at 96 bid, 97½ offered, a trader said.

Pricing on the add-on first-lien term loan and extended first-lien term loan is Libor plus 375 bps with a 1% Libor floor. The add-on term loan was sold at an original issue discount of 99.5 and the extended loan was done with a 50 bps extension fee, and all of the debt has 101 soft call protection for six months.

The extended second-lien term loan is priced at Libor plus 800 bps with a 1% Libor floor and lenders were offered a 50 bps extension fee. This tranche has 101 hard call protection for one year.

During syndication, the add-on first-lien term loan was downsized from $50 million.

Resolute lead banks

RBC Capital Markets LLC, Barclays and BMO Capital Markets Corp. are leading Resolute Investment’s debt transaction.

The add-on term loan will be used for general corporate purposes and future acquisitions.

Under the extension, the company is pushing out the maturity on its existing first-lien term loan from April 2022 and increasing pricing from Libor plus 325 bps with a 1% Libor floor, and extending the maturity on its existing second-lien term loan from April 2023 and increasing pricing from Libor plus 750 bps with a 1% Libor floor.

Resolute Investment is an Irving, Tex.-based diversified asset management platform that partners with investment managers on both an affiliated and unaffiliated basis.

Wrench starts trading

Wrench Group’s $120 million non-fungible incremental first-lien term loan (B2/B) due April 30, 2026 freed up as well, with levels quoted at 99¼ bid, par offered, a trader remarked.

Pricing on the incremental term loan is Libor plus 450 bps with a 1% 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 incremental term loan was upsized from $100 million and the discount was tightened from 98.5.

Jefferies LLC, Macquarie Capital (USA) Inc. and Antares Capital are leading the deal that will be used to fund cash to the balance sheet for potential future acquisitions.

Wrench Group is a provider of home maintenance and repair services specializing in heating, ventilation and air conditioning, plumbing, electrical and water quality services.

Park Place sets changes

Returning to the primary market, Park Place Technologies firmed pricing on its $845 million seven-year covenant-lite first-lien term loan (B2/B-) at Libor plus 500 bps, the high end of the Libor plus 475 bps to 500 bps talk, adjusted the original issue discount to 96 from 98 and extended the 101 soft call protection to one year from six months, according to a market source.

The term loan still has a 1% Libor floor.

Allocations are expected on Monday, the source added.

The company’s $1.155 billion of credit facilities also include an $80 million revolver and a $230 million privately placed second-lien term loan (Caa2/CCC).

Credit Suisse Securities (USA) LLC, Jefferies LLC, Morgan Stanley Senior Funding Inc. and UBS Investment Bank are leading the deal that will fund the acquisition of Curvature and refinance existing debt.

Park Place Technologies is a Cleveland-based third-party maintenance provider for data center storage, server and network hardware and tier-one OEM equipment.

Capstone tweaks deal

Capstone Logistics raised its first-lien delayed-draw term loan to $95 million from $70 million and its five-year revolver to $65 million from $60 million, a market source remarked.

Additionally, pricing on the delayed-draw term loan and on the funded $530 million seven-year first-lien term loan finalized at Libor plus 475 bps, the low end of the Libor plus 475 bps to 500 bps talk, the source added.

As before, the first-lien term loan debt has a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year.

The company’s now $890 million of credit facilities also include a $200 million privately placed second-lien term loan, of which $170 million is funded and $30 million is delayed-draw.

Ares Capital Management, Credit Suisse Securities (USA) LLC, Jefferies LLC and KKR Capital Markets are leading the deal that will be used to help fund the buyout of the company by H.I.G. Capital from The Jordan Co.

Capstone is a Peachtree Corners, Ga.-based supply chain solutions partner.

PetSmart pulls loan

PetSmart withdrew its $2 billion six-year term loan B from the market, as well as its $1.5 billion of senior secured notes and $1.15 billion of unsecured notes, a market source said.

Talk on the term loan B was Libor plus 575 bps with a 1% Libor floor, an original issue discount of 98 and hard call protection of 102 in year one and 101 in year two.

Earlier in syndication, the term loan B was downsized from $2.3 billion, pricing was lifted from talk in the range of Libor plus 400 bps to 425 bps, the Libor floor was changed from 0.75%, the discount widened from 99, the call protection was revised from a 101 soft call for six months, the maturity was shortened from seven years and changes were made to documentation.

J.P. Morgan Securities LLC was the left lead on the deal that was going to be used with the notes and $1.3 billion of equity to refinance an existing term loan, an asset-based revolving credit facility, 5 7/8% notes due 2025, 8 7/8% notes due 2025 and 7 1/8% notes due 2023.

PetSmart is a Phoenix-based specialty pet retailer.

Confluent allocates

In other news, Confluent Health LLC allocated its fungible $80 million incremental covenant-lite first-lien term loan B (B3/B-) due July 24, 2026, according to a market source.

Pricing on the incremental loan is Libor plus 500 bps with a 0% Libor floor, in line with existing term loan B pricing, and the new debt was sold at an original issue discount of 98.79. The loan has 101 soft call protection for six months.

Deutsche Bank Securities Inc. is the left lead on the deal that will be used to fund acquisitions.

Closing is expected early in the week of Nov. 2.

Confluent Health is a Louisville, Ky.-based provider of healthcare services.

© 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.