PODS, Angus break; Advanced Computer, Global Knowledge update deals; Acadia reveals talk

By Sara Rosenberg

New York, Jan. 28 – PODS LLC’s credit facility emerged in the secondary market on Wednesday with both the first- and second-lien term loans quoted above their original issue discounts, and Angus Chemical Co. saw its loan free up as well.

Over in the primary market, Advanced Computer Software Group widened spreads as well as offer prices and sweetened call premiums on its U.S. dollar-equivalent first- and second-lien term loans, and Global Knowledge Training LLC modified the original issue discount on its first-lien term loan.

Also, Acadia Healthcare Co. Inc. released talk with launch, Select Staffing (Koosharem LLC) revealed original issue discount talk on its in-market tack-on term loan, and AssuredPartners Capital Inc. joined this week’s calendar.

PODS starts trading

PODS’ credit facility broke for trading on Wednesday with the $410 million seven-year first-lien covenant-light term loan B (B1/B+) quoted at par bid, par ½ offered and the $150 million eight-year second-lien covenant-light term loan (Caa1/CCC+) quoted at par ¼ bid, 101¼ offered, according to one trader.

A second trader had the first-lien term loan at par ¼ bid, par ¾ offered and the second-lien loan at 101 bid.

Pricing on the first-lien term loan is Libor plus 425 basis points with a 1% Libor floor and it was sold at an original issue discount of 99½. There is 101 soft call protection for one year.

The second-lien term loan is priced at Libor plus 825 bps with a 1% Libor floor and was sold at a discount of 99. This tranche has hard call protection of 102 in year one and 101 in year two.

Recently, the first-lien term loan was upsized from $390 million, pricing was reduced from talk of Libor plus 450 bps to 475 bps, the discount was tightened from 99 and the call protection was extended from six months.

Also, the second-lien term loan was downsized from $170 million, the spread was cut from talk in the Libor plus 850 bps area and the discount was modified from 98½.

PODS getting revolver

Along with the first- and second-lien term loans, PODS’ $610 million senior credit facility provides for a $50 million revolver (B1/B+).

Morgan Stanley Senior Funding Inc., Barclays and Goldman Sachs Bank USA are the lead banks on the deal, with Morgan Stanley left lead on the term loan B and Barclays left lead on the second-lien loan.

Proceeds will be used to help fund the buyout of the company by Ontario Teachers’ Pension Plan.

Closing is expected this quarter.

PODS is a Clearwater, Fla.-based provider of storage and moving containers.

Angus frees up

Angus Chemical’s credit facility began trading too, with the $335 million U.S. dollar term loan quoted at par bid, par ½ offered, according to a trader.

Pricing on the U.S. term loan, as well as on a $170 million euro-equivalent term loan, is Libor/Euribor plus 425 bps with a 1% floor and the debt was sold at an original issue discount of 99½. The loans have 101 soft call protection for one year.

During syndication, the U.S. loan was downsized from $355 million, the euro loan was upsized from $150 million, and pricing on both tranches was tightened from Libor/Euribor plus 450 bps with a discount of 99.

The company’s $570 million credit facility (B1/B+) also includes a $65 million revolver.

J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc. and Deutsche Bank Securities Inc. are leading the deal that will be used with $225 million of senior notes to help fund the $1,215,000,000 buyout of the company by Golden Gate Capital from the Dow Chemical Co.

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

Angus is a Buffalo Grove, Ill.-based manufacturer and distributor of nitroalkanes and their derivatives.

Advanced Computer revised

Moving to the primary, Advanced Computer Software lifted pricing on its £220.5 million U.S. dollar equivalent seven-year first-lien term loan B to Libor plus 550 bps from talk of Libor plus 500 bps to 525 bps, changed the original issue discount talk to 97 to 98 from 99 and extended the 101 soft call protection to one year from six months, according to a market source.

This tranche still has a 1% Libor floor.

As for the £128 million U.S. dollar equivalent eight-year second-lien term loan, pricing was increased to Libor plus 950 bps from talk of Libor plus 875 bps to 900 bps, the discount guidance was moved to 95 to 96 from 98, and the call protection was modified to non-callable for one year, then at 102 in year two and 101 in year three from hard call protection of 102 in year one and 101 in year two, the source said. This debt also continues to have a 1% Libor floor.

The term loans include a ticking fee of half the spread from days 31 to 60 and the full spread thereafter.

Other changes made were that there is no MFN sunset provision, the incremental debt starter basket was cut to $75 million from $95 million, the incremental unlimited prong was lowered to 4.75 times from 5 times, and the initial excess cash flow sweep was raised to 75% from 50%, the source continued.

Advanced Computer leads

Morgan Stanley Senior Funding Inc. and Goldman Sachs Bank USA are leading Advanced Computer’s credit facility, with Morgan Stanley left lead on the term loan B and Goldman Sachs the left lead on the second-lien loan.

Along with the U.S. equivalent term loans, the company’s senior secured credit facility provides for a $50 million five-year revolver and a £100 million seven-year first-lien term loan B.

Recommitments are due at 10 a.m. ET on Friday, the source added.

Proceeds will be used to help fund the buyout of the company by Vista Funds for 140 pence per share, or about £725 million.

Advanced Computer is a U.K.-based provider of software and IT services.

Global Knowledge tweaked

Global Knowledge tightened the offer price on its $175 million six-year first-lien term loan (B1/B+) to 99 from revised talk of 98½, however, it now matches the initial talk of 99, according to a market source, who said the debt is still priced at Libor plus 550 bps with a 1% Libor floor and has 101 soft call protection for one year.

The company’s $245 million credit facility also includes a $20 million revolver (B1/B+), and a $50 million seven-year second-lien term loan (Caa1/B) priced at Libor plus 950 bps with a 1% Libor floor and a discount of 98. The second-lien loan has call protection of 103 in year one, 102 in year two and 101 in year three.

Last week, pricing on the first-lien term loan was lifted from Libor plus 525 bps, pricing on the second-lien term loan was increased from Libor plus 900 bps and the discount was revised from 98½, and a maximum total leverage covenant was added to the initially covenant-light term loans.

Recommitments were due at 5 p.m. ET on Wednesday, the source added.

Credit Suisse Securities (USA) LLC, Macquarie Capital and ING are leading the deal that will help fund the buyout of the company by Rhone Capital LLC from MidOcean Partners.

Global Knowledge is a Cary, N.C.-based provider of IT and business skills training.

Acadia discloses talk

In more primary news, Acadia Healthcare held its bank meeting on Wednesday, launching its $500 million seven-year covenant-light term loan B (Ba2/BB-) with talk of Libor plus 400 with a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, according to a market source.

Commitments are due on Feb. 5, the source said.

Bank of America Merrill Lynch, Jefferies Finance LLC, Citigroup Global Markets Inc. and Deutsche Bank Securities Inc. are leading the deal that will be used to help fund the acquisition of CRC Health Group Inc. for $1,175,000,000, consisting of up to about 6.3 million shares of Acadia’s common stock and the assumption of CRC’s debt.

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

Acadia is a Franklin, Tenn.-based provider of inpatient behavioral health care services. CRC is a Cupertino, Calif.-based operator of addiction recovery centers.

Select Staffing floats OID

Select Staffing came out with original issue discount talk of 98½ on its $255 million tack-on senior secured term loan due May 2020 (B3/B-), a source said. The offer price was previously described as to be determined.

As already reported, pricing on the tack-on term loan is Libor plus 650 bps with a 1% Libor floor, which matches pricing on the existing term loan, and the debt includes call protection of 102 through May 2015 and a 101 soft call for six months thereafter.

The deal launched with a call on Jan. 21 and has a Tuesday commitment deadline.

Credit Suisse Securities (USA) LLC and RBC Capital Markets LLC are leading the tack-on loan that will be used to help fund the company’s acquisition of EmployBridge Inc. from Morgan Stanley Global Private Equity and Constitution Capital, which is expected to close in February.

With the tack-on loan, the company is seeking an amendment to its existing $370 million term loan due May 2020 for which the consent fee is 25 bps, the source added.

Select Staffing is a provider of workforce management services. EmployBridge is a provider of specialty staffing services. The combined company will be based in Atlanta.

AssuredPartners on deck

AssuredPartners surfaced with plans to hold a call at 2 p.m. ET on Thursday to launch a $125 million incremental first-lien covenant-light term loan due April 1, 2021, according to a market source.

The incremental loan is not expected to be fungible with the company’s existing first-lien term loan, the source said.

Bank of America Merrill Lynch, J.P. Morgan Securities LLC, BMO Capital Markets, RBC Capital Markets and Madison Capital are leading the deal that will be used to pay down revolver borrowings, to fund acquisitions and to add cash to the balance sheet.

AssuredPartners is a Lake Mary, Fla.-based full-service retail broker acting as an intermediary between middle-market clients seeking insurance coverage and insurance carriers.

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