National Response, Tecomet changes surface; Visual Comfort, VICI Properties postpone deals

By Sara Rosenberg

New York, May 30 – In the primary market on Wednesday, National Response Corp. trimmed the size of its term loan B and Tecomet tightened the issue price on its add-on term loan.

Also, Visual Comfort Group Inc. (VC GB Holdings Inc.) and VICI Properties Inc. withdrew their loan transactions from market.

Furthermore, Solenis LLC, TransUnion Inc., Ardent Health Partners LLC, Yak Mat LLC, Vertex Aerospace Services Corp., American Bath Group LLC, Hyperion Insurance Group Ltd., Lyons Magnus Inc., Option Care (HC Group Holdings III Inc.), EVO Payments International LLC, Vantiv LLC, Rough Country, Hoffmaster Group Inc., Russell Investments, CPG International LLC and Ascensus Inc. all released price talk with launch.

In addition, Fortress Investment Group (FinCo I LLC), Uber Technologies Inc., Iqvia Inc., Bob’s Discount Furniture LLC and Southern Graphics Inc. emerged with new deal plans.

National Response revised

National Response lowered the size of its six-year covenant-light term loan B to $308 million from $358 million and made a number of lender-friendly documentation changes to the credit agreement, according to a market source.

As before, the term loan is priced at Libor plus 525 basis points with a 1% Libor floor and an original issue discount of 99 and has 101 soft call protection for six months.

The company’s now $348 million of credit facilities also include a $40 million five-year revolver priced at Libor plus 525 bps with no Libor floor.

BNP Paribas Securities Corp. is leading the deal that will be used to fund the merger of National Response with Sprint Energy Services LLC, which are both owned by J.F. Lehman & Co., to refinance existing debt and to fund a dividend.

The size of the dividend was reduced with the term loan downsizing, the source added.

National Response is a Great River, N.Y.-based provider of specialized environmental and maritime services. Sprint Energy is a Houston-based provider of specialized, technical environmental services to the upstream energy industry.

Tecomet tweaks deal

Tecomet modified the issue price on its $21 million add-on term loan to par from 99.75, a market source remarked.

As before, pricing on the add-on term loan is Libor plus 350 bps with a step-down to Libor plus 325 bps at 4 times net first-lien leverage and a 1% Libor floor, in line with existing term loan pricing.

Commitments were due at 2 p.m. ET on Wednesday, extended from noon ET on Wednesday, the source added.

Jefferies LLC is leading the debt that will be used to fund an acquisition.

Tecomet is a Wilmington, Mass.-based provider of high precision manufacturing solutions serving global medical device and aerospace and defense original equipment manufacturers.

Visual Comfort withdrawn

Visual Comfort Group pulled its $595 million seven-year covenant-light first-lien term loan (B2/B), a market source said.

Talk on the loan was Libor plus 325 bps with a 1% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months.

Deutsche Bank Securities Inc. was leading the deal that was going to be used to refinance existing first- and second-lien term loans.

As a result of this decision, the company will now use cash on hand and upcoming sale leaseback proceeds to pay down the second-lien loan, the source added.

Visual Comfort is a Skokie, Ill., decorative lighting company.

VICI postponed

VICI Properties removed from market the proposed repricing of its $2.1 billion first-lien term loan due Dec. 22, 2024 that was talked at Libor plus 175 bps with a 0% Libor floor, a par issue price and 101 soft call protection for six months.

A source explained that market conditions was the reason behind the postponement.

Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc., Bank of America Merrill Lynch, Citigroup Global Markets Inc. and Barclays were leading the deal that would have repriced the existing term loan down from Libor plus 200 bps with a 0% Libor floor.

The company was also planning on repricing its $400 million revolver.

VICI Properties is a Las Vegas-based real estate investment trust that owns gaming, hospitality and entertainment destinations.

Solenis details surface

Also in the primary market, Solenis held its New York bank meeting on Wednesday and launched $1.85 billion equivalent of senior secured credit facilities, according to a market source. A bank meeting for European investors will take place in London on Thursday.

The facilities consist of a $200 million five-year multi-currency revolver (B-), a $700 million seven-year covenant-light first-lien term loan (B-) talked at Libor plus 350 bps with a 0% Libor floor and an original issue discount of 99.5, a €475 million eight-year covenant-light first-lien term loan (B-) talked at Euribor plus 350 bps with a 0.5% floor and a discount of 99.5, and a $400 million covenant-light second-lien term loan (CCC+) talked at Libor plus 750 bps with a 0% Libor floor and a discount of 99, the source said.

The first-lien term loans have a 25 bps step-up if the combination with BASF Paper & Water doesn’t close and first-lien leverage is more than 4.75 times, and the second-lien term loan has a 25 bps step-up if the combination with BASF Paper & Water doesn’t close and secured leverage is more than 5.75 times.

Also, the first-lien term loans have 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.

Solenis lead banks

Citigroup Global Markets Inc., Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Natixis, RBC Capital Markets, Macquarie Capital (USA) Inc. and ING are the joint lead arrangers on Solenis’ credit facilities, with Citi the left lead on the first-lien debt and Bank of America the left lead on the second-lien debt. Citi is the administrative agent on the revolver and first-lien term loan and Credit Suisse is the agent on the second-lien loan.

Commitments are due at noon ET on June 8, the source added.

The new debt will be used to refinance existing credit facilities in preparation for the company’s combination with BASF’s paper and water chemicals business.

Solenis is a Wilmington, Del.-based producer of specialty chemicals for water intensive industries, including the pulp, paper, oil and gas, chemical processing, mining, biorefining, power and municipal markets.

TransUnion launches

TransUnion revealed price talk on its $400 million term loan A due August 2022 and $1.4 billion seven-year covenant-light term loan B-3 in connection with its afternoon lender call, according to a market source.

Talk on the term loan A is Libor plus 175 bps with a 0% Libor floor and an original issue discount of 99.75, and talk on the term loan B-3 is Libor plus 225 bps with a 0% Libor floor and a discount of 99.5 to 99.75, the source said.

The term loan B-3 has 101 soft call protection for six months.

Deutsche Bank Securities Inc., RBC Capital Markets, Bank of America Merrill Lynch and Capital One are leading the $1.8 billion in term loans (Ba2/BB+). Deutsche is the administrative agent.

Commitments are due at noon ET on June 8.

TransUnion funding acquisitions

Proceeds from TransUnion’s term loan B will be used to finance the purchases of Callcredit Information Group Ltd., a Leeds, U.K.-based consumer credit bureau, for £1 billion, iovation, a Portland, Ore.-based provider of device-based information, and Healthcare Payment Specialists, a Fort Worth, Texas-based company that helps health care providers optimize Medicare reimbursement.

Closing on the Callcredit and iovation transactions is expected late in the second quarter or early in the third quarter, subject to regulatory approval, and closing on the Healthcare Payment acquisition from Nautic Partners is expected in the second quarter, pending regulatory approval.

TransUnion is a Chicago-based provider of information management and risk management services.

Ardent Health guidance

Ardent Health Partners disclosed talk of Libor plus 425 bps to 450 bps with a 1% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months on its $765 million seven-year first-lien term loan (B1/B) that launched with a bank meeting during the session, a market source remarked.

The company’s $990 million of credit facilities also include a $225 million five-year ABL facility.

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

Barclays, Jefferies LLC and Bank of America Merrill Lynch are leading the deal that will be used with $535 million in unsecured debt to refinance existing debt.

Equity Group Investments is the sponsor.

Ardent Health is a Nashville, Tenn.-based owner and operator of hospitals.

Yak Mat sets talk

Yak Mat revealed price talk on its $650 million first-lien term loan B (B2/B) due 2025 and $200 million second-lien term loan (Caa1/CCC+) due 2026 in connection with its morning bank meeting, according to a market source.

Talk on the first-lien term loan is 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, and talk on the second-lien term loan is Libor plus 775 bps to 800 bps with a 0% Libor floor, a discount of 98.5 and hard call protection of 102 in year one and 101 in year two, the source said.

Commitments are due on June 13.

J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Deutsche Bank Securities Inc., Goldman Sachs Bank USA, Citigroup Global Markets Inc. and Nomura are leading the deal, with JPMorgan the left lead on the first-lien loan and Bank of America the left lead on the second-lien loan.

Proceeds will be used to help fund Platinum Equity’s acquisition of a 50.1% stake in the company.

Yak Mat is an East Columbia, Miss.-based specialty equipment leasing and logistics company focused on temporary access solutions to remote construction sites and energy infrastructure.

Vertex proposed terms

Vertex Aerospace Services had its lender presentation in the afternoon and launched its $330 million seven-year covenant-light first-lien term loan B (B) at talk of 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 remarked.

Commitments are due on June 13, the source added.

Morgan Stanley Senior Funding Inc., RBC Capital Markets and Deutsche Bank Securities Inc. are leading the deal that will be used to help fund the buyout of the company by American Industrial Partners from L3 Technologies for $540 million in cash and pay related fees and expenses.

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

Vertex Aerospace is a provider of aviation logistics services, supply chain management, and maintenance, repair and overhaul services.

American Bath launches

American Bath Group came out with talk of Libor plus 425 bps with a 25 bps step-down at 4 times net first-lien leverage and a 1% Libor floor on its $50 million incremental first-lien term loan (B2/B) due Sept. 30, 2023 and repricing of its existing $582 million first-lien term loan (B2/B) due Sept. 30, 2023 a few hours before its afternoon lender call kicked off, a market source said.

The incremental loan is talked with an original issue discount of 99.5 and the repricing is offered at par, the source added.

The term loans have 101 soft call protection for six months.

Commitments are due on June 6.

Credit Suisse Securities (USA) LLC is the left lead on the deal.

The incremental loan will be used to fund a distribution to shareholders and the repricing will take the existing term loan down from Libor plus 525 bps with a 1% Libor floor.

American Bath is a Savannah, Tenn.-based designer and manufacturer of fiberglass reinforced plastic, sheet molded compound and acrylic bathtubs and showers.

Hyperion comes to market

Hyperion Insurance launched a repricing of its $923 million covenant-light term loan B (B) due Dec. 20, 2024 that is talked at Libor plus 325 bps with a 0% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

The company also launched a €50 million add-on covenant-light term loan B (B) due Dec. 20, 2024 talked at Euribor plus 325 bps to 350 bps with a 0% floor and an original issue discount of 99.75, and a repricing of its €200 million covenant-light term loan B (B) due Dec. 20, 2024 talked at Euribor plus 325 bps to 350 bps with a 0% floor and a par issue price, the source said.

Commitments/consents are due at 10 a.m. ET on Friday.

Morgan Stanley Senior Funding Inc., Barclays, J.P. Morgan Securities LLC, RBC Capital Markets, HSBC Securities (USA) Inc. and Lloyds Securities Inc. are leading the deal.

The incremental loan will be used to fund the locked account and pay related fees and expenses.

Hyperion is a London-based insurance intermediary group.

Lyons price guidance

Lyons Magnus announced talk of Libor plus 350 bps to 375 bps with a 25 bps step-down at 3.35 times net first-lien leverage, a 1% Libor floor and 101 soft call protection for six months on its fungible $15 million incremental covenant-light first-lien term loan due Nov. 14, 2024 and repricing of its existing $195 million covenant-light first-lien term loan due Nov. 14, 2024 that launched with an afternoon call, a market source remarked.

The incremental loan is talked with an original issue discount of 99.875 and the repricing is offered at par, the source added.

Commitments are due at 5 p.m. ET on June 6.

RBC Capital Markets is leading the deal.

The incremental loan will be used to repay $15 million of the company’s second-lien term loan and the repricing will take the first-lien loan down from Libor plus 425 bps with a 25 bps step-down and a 1% Libor floor.

Paine Schwartz Partners is the sponsor.

Lyons Magnus is a developer, manufacturer and marketer of fruit and flavor solutions for the foodservice, health care and industrial dairy channels.

Option Care refinancing

Option Care held a lender call in the afternoon to launch a $404 million covenant-light term loan B due April 7, 2022 talked at Libor plus 375 bps to 400 bps with a 0% Libor floor, a par issue price and 101 soft call protection for six months, a market source said.

Commitments are due at noon ET on June 6, the source added.

Bank of America Merrill Lynch is leading the deal that will be used to refinance an existing term loan B.

Option Care is a provider of home and alternate treatment site infusion therapy services.

EVO releases details

EVO Payments had its call in the afternoon and launched to investors a $659.6 million senior secured covenant-light term loan B due December 2023 talked at Libor plus 275 bps to 300 bps with a 25 bps step-down upon achievement of B1/B+ corporate ratings, a 0% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Commitments from existing lenders are due at 5 p.m. ET on June 6 and from new lenders are due at 5 p.m. ET on June 7, the source said.

Citigroup Global Markets Inc. is the left lead on the deal that will be used to reprice an existing term loan B down from Libor plus 400 bps with a 1% Libor floor.

Closing is expected in mid-June.

EVO Payments is an Atlanta-based payments processor and acquirer for merchants, independent sales organizations, financial institutions, government organizations and multinational corporations.

Vantiv loan talk

Vantiv released on its afternoon call price talk of Libor plus 175 bps with a 0% Libor floor on its roughly $6,505,000,000 in term loans (Ba2/BBB-), a market source said.

The debt is split between a roughly $3.3 billion term loan A-5 due Jan. 16, 2023, a $650 million equivalent GBP term loan A-6 due Jan. 16, 2023, a $755 million covenant-light term loan B-3 due Oct. 14, 2023 and a roughly $1.8 billion covenant-light term loan B-4 due Aug. 20, 2024.

The term loan B-3 and term loan B-4 are offered at par, and have 101 soft call protection for six months.

Commitments/consents are due at noon ET on June 13, the source added.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to reprice the company’s existing term loans.

Vantiv is a payments technology company.

Rough Country add-on

Rough Country held a lender call at 3 p.m. ET to launch a fungible $77 million add-on first-lien term loan talked with an original issue discount of 99.5, according to a market source.

Pricing on the add-on loan is in line with existing term loan pricing at Libor plus 375 bps with a 1% Libor floor.

Commitments are due on June 6, the source said.

Golub Capital is leading the deal that will be used with cash from the balance sheet to repay an existing $85 million second-lien term loan.

Including the add-on, the first-lien term loan will total $271 million.

Rough Country is a Dyersburg, Tenn.-based supplier of aftermarket suspension lift kits and components to the off road SUV and light truck enthusiast market.

Hoffmaster repricing

Hoffmaster launched on its afternoon call its $385 million covenant-light first-lien term loan (B2/B) at talk of Libor plus 350 bps to 375 bps with a 0% Libor floor, a par issue price and 101 soft call protection for six months, a market source remarked.

Commitments are due at 5 p.m. ET on June 7, the source added.

RBC Capital Markets is the left lead on the deal that will be used to reprice an existing term loan down from Libor plus 450 bps with a 1% Libor floor.

Hoffmaster is an Oshkosh, Wis.-based producer of specialty disposable tabletop products.

Russell holds call

Russell Investments held its call in the morning, launching its fungible $300 million add-on first-lien term loan B due June 1, 2023 at talk of Libor plus 325 bps with a 1% Libor floor, an original issue discount of 99.05 and 101 soft call protection for one year, according to a market source.

Commitments are due at 5 p.m. ET on June 7, the source said.

Barclays, Credit Suisse Securities (USA) LLC and Macquarie Capital (USA) Inc. are leading the deal that will be used to fund a distribution to shareholders and pay related fees and expenses.

Existing lenders are being offered a 50 bps amendment fee, the source added.

Russell Investments is a Seattle-based asset manager.

CPG discloses discount

CPG International launched on its call its fungible $225 million incremental senior secured first-lien term loan (B2) due May 5, 2024 with original issue discount talk of 99.75, a market source said.

The incremental loan is priced in line with the existing term loan at Libor plus 375 bps with a 1% Libor floor, and the debt is getting 101 soft call protection for six months.

Commitments are due on June 7, the source added.

Jefferies LLC and Barclays are leading the deal that will be used to fund the acquisition of Versatex.

Closing is subject to regulatory review.

CPG is a Skokie, Ill.-based manufacturer of highly engineered low-maintenance building materials. Versatex is an Aliquippa, Pa.-based manufacturer of highly engineered cellular PVC products.

Ascensus floats OID

Ascensus released original issue discount talk of 99.75 on its $200 million incremental first-lien term loan (B2/B-) due December 2022 with its morning lender call, a market source remarked.

Like the existing loan, the incremental loan is priced at Libor plus 350 bps with a 1% Libor floor and has 101 soft call protection through July 19.

Of the total incremental loan amount, $125 million will be funded, and $75 million is delayed draw with a ticking fee of half the margin from days 31 to 60 and the full margin thereafter.

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

Credit Suisse Securities (USA) LLC is leading the deal that will be used to fund tuck-in acquisitions.

Ascensus is a Dresher, Pa.-based service provider of retirement and college savings plans.

Fortress on deck

In more primary happenings, Fortress Investment Group emerged with plans to hold a lender call at 3 p.m. ET on Thursday to launch a $1.2 billion covenant-light term loan B due Dec. 27, 2022 talked at Libor plus 175 bps with a step-down to Libor plus 150 bps if corporate ratings from any two of S&P, Moody’s and Fitch are investment grade, a 0% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Commitments from existing lenders are due at 5 p.m. ET on June 6 and commitments from new lenders are due at 5 p.m. ET on June 7, the source said.

Deutsche Bank Securities Inc. is leading the deal that will be used to reprice an existing term loan B down from Libor plus 250 bps with a 0% Libor floor.

The size of the term loan B being launched represents a $197 million pay down on the existing loan from cash on the balance sheet.

Fortress is a New York-based alternative asset management firm.

Uber joins calendar

Uber Technologies scheduled a lender call for noon ET on Thursday to launch a $1,132,750,000 senior secured term loan B due 2023, according to a market source.

Morgan Stanley Senior Funding Inc., Bank of America Merrill Lynch, Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs Bank USA, HSBC Securities (USA) Inc., J.P. Morgan Securities LLC, RBC Capital Markets and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to reprice an existing term loan B due 2023.

Uber is a San Francisco-based online transportation network company.

Iqvia coming soon

Iqvia will hold a lender call on Thursday to launch a $500 million seven-year term loan B (Ba1/BBB-) talked at Libor plus 175 bps to 200 bps with a 0% Libor floor and an original issue discount of 99.5 to 99.75, and a €435 million seven-year term loan B (Ba1/BBB-) talked at Euribor plus 200 bps with a 0.5% floor and a discount of 99.75, a market source said.

The term loans have 101 soft call protection for six months.

Commitments are due at 5 p.m. ET on June 7, the source added.

J.P. Morgan Securities LLC is leading the deal that will be used to repay revolver borrowings and for general corporate purposes.

Iqvia, previously known as Quintiles IMS Holdings Inc., is an information and technology-enabled health care service provider.

Bob’s readies deal

Bob’s Discount Furniture set a lender call for 9:30 a.m. ET on Thursday to launch an amendment and extension of its existing $257 million term loan B, a market source remarked.

RBC Capital Markets is the left lead on the deal.

Bain Capital is the sponsor.

Bob’s is a Manchester, Conn.-based retailer of furniture and bedding.

Southern Graphics plans call

Southern Graphics scheduled a call for 3 p.m. ET on Thursday for loan lenders, according to a market source.

Bank of America Merrill Lynch is the left lead arranger on the transaction.

Southern Graphics is a Louisville, Ky.-based provider of design-to-print graphics services to the consumer products packaging industry.

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