Foundation, Pretium, Navitas, Rackspace, Parexel break; ION, Idera, Kloeckner updated

By Sara Rosenberg

New York, Feb. 3 – Foundation Building Materials Inc. upsized the delayed-draw portion of its first-lien term loan, reduced the spread, added a step-down and tightened the original issue discount, and Pretium Packaging (Pretium Pkg Holdings Inc.) increased the size of its incremental first-lien term loan, and then these deals freed to trade on Wednesday.

Also, Navitas Midstream Midland Basin LLC upsized its incremental term loan B before breaking for trading, and deals from Rackspace Technology Global Inc. and Parexel International Corp. hit the secondary market as well.

In more happenings, ION Analytics moved some funds between its U.S. and euro term loans, cut pricing on the debt, added a step-down, tightened the issue price on the U.S. tranche and modified original issue discount guidance on the euro tranche.

Furthermore, Idera Inc. finalized the spread on its first-lien term loan debt at the low end of guidance, trimmed pricing on its second-lien term loan and revised original issue discounts, and Kloeckner Pentaplast set its U.S. term loan size and pricing.

Additionally, Advisor Group Holdings Inc. firmed pricing on its first-lien term loan at the wide end of talk, LogMeIn Inc. upsized its incremental first-lien term loan B and finalized the issue price at the midpoint of talk, and Rent-A-Center Inc. increased the size of its term loan B.

And, Ontic (Bleriot US Bidco Inc.), Lummus Technology (Illuminate Buyer LLC), Herbalife Nutrition Ltd., AppLovin Corp., Catalent Pharma Solutions Inc. and Aptean disclosed price talk with launch, and Adtalem Global Education Inc., Liftoff Mobile Inc., ProAmpac, Waystar and Ensemble Health joined this week’s primary calendar.

Foundation Building reworked

Foundation Building Materials raised its seven-year covenant-lite first-lien term loan (B2/B) to $1.31 billion from $1.26 billion by increasing the delayed-draw portion of the loan to $480 million from $430 million, according to a market source.

In addition, pricing on the term loan debt was lowered to Libor plus 325 basis points from talk in the range of Libor plus 350 bps to 375 bps, a 25 bps step-down was added at B1/B+ ratings with stable outlooks and the original issue discount was revised to 99.75 from 99.5, the source said.

The term loan still has a 0.5% Libor floor and 101 soft call protection for six months.

Recommitments were due at noon ET on Wednesday.

Credit Suisse Securities (USA) LLC, BofA Securities Inc., Deutsche Bank Securities Inc. and Truist are leading the deal.

Foundation frees up

On Wednesday, Foundation Building’s term loan broke for trading, with levels quoted at par bid, par ½ offered, another source added.

The term loan debt will be to help fund the buyout of the company by American Securities LLC for $19.25 per share in an all-cash transaction valued at $1.37 billion, including outstanding debt, which was recently completed, and the acquisition of Beacon’s interior construction products business for $850 million.

Other funds for the transaction will come from $400 million of senior notes, downsized from $420 million, and $579 million of equity, downsized from $634 million as a result of the increase in total debt being used and lower fees and expenses.

Foundation Building is a Santa Ana, Calif.-based distributor of specialty building products, including wallboard, suspended ceiling systems, metal framing and other products.

Pretium upsizes, trades

Pretium lifted its fungible incremental covenant-lite first-lien term loan (B3/B) due Nov. 5, 2027 to $125 million from $75 million, a market source remarked.

As before, the incremental term loan is priced at Libor plus 400 bps with a 0.75% Libor floor and an original issue discount of 99.75, and has 101 soft call protection through May 5.

Earlier in syndication, pricing on the incremental term loan was flexed up from talk in the range of Libor plus 325 bps to 350 bps, the call protection was changed from a 101 soft call for six months, and plans were cancelled to reprice an existing $540 million covenant-lite first-lien term loan down from Libor plus 400 bps.

Commitments were due at noon ET on Wednesday, accelerated from 5 p.m. ET on Wednesday, and the debt broke for trading in the afternoon, with levels quoted at par ¼ bid, 101 offered, another source added.

Credit Suisse Securities (USA) LLC and KKR Capital Markets are leading the deal that will be used to repay some second-lien term loan borrowings.

Pretium is a Chesterfield, Mo.-based designer and manufacturer of rigid plastic packaging solutions.

Navitas tweaked, breaks

Navitas Midstream increased its fungible incremental senior secured term loan B due Dec. 13, 2024 to $300 million from $265 million, according to a market source.

The incremental term loan is priced at Libor plus 450 bps with a 1% Libor floor and an original issue discount of 99.28.

Recommitments were due at 10 a.m. ET on Wednesday and the term loan freed up shortly thereafter, with levels quoted at 99 3/8 bid, 99 7/8 offered, another source added.

Jefferies LLC, Barclays, Credit Suisse Securities (USA) LLC and PNC are leading the deal that will be used to repay the company’s $37 million term loan C, finance the construction of the next 200 MMcf/d cryogenic natural gas processing plant and retire a portion of the series D equity units.

Navitas is a The Woodlands, Tex.-based natural gas gathering and processing company.

Rackspace hits secondary

Rackspace Technology’s $2.3 billion seven-year senior secured covenant-lite first-lien term loan (B1/B+) began trading too, with levels quoted at 99 5/8 bid, par 1/8 offered, a market source said.

Pricing on the term loan is Libor plus 275 bps with a 0.75% Libor floor and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months.

During syndication, the term loan was upsized from $2.2 billion and the spread firmed at the low end of the Libor plus 275 bps to 300 bps talk.

Citigroup Global Markets Inc., Barclays, BMO Capital Markets, MUFG, J.P. Morgan Securities LLC, Goldman Sachs Bank USA, Mizuho, RBC Capital Markets, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., HSBC Securities (USA) Inc. and Apollo are leading the deal that will be used with $550 million of senior secured notes, which were recently downsized from $650 million, to repay all borrowings outstanding under the company’s existing term loan B and pay related fees and expenses.

Closing is expected on Tuesday.

Rackspace is a Windcrest, Tex.-based end-to-end multicloud technology services company.

Parexel tops OID

Parexel’s fungible $475 million add-on term loan broke as well, with levels quoted at 99½ bid, 99 7/8 offered, according to a market source.

Pricing on the add-on term loan is Libor plus 275 bps with a 0% Libor floor and it was sold at an original issue discount of 99.25.

During syndication, the company switched to an add-on term loan from a new $2.3 billion term loan B that was talked at Libor plus 275 bps to 300 bps with a 0% Libor floor and an original issue discount of 99 to 99.5.

BofA Securities Inc. is the lead on the deal.

Proceeds will be used to help refinance 6 3/8% notes due 2025. The existing term loan due 2024 that was originally expected to be refinanced is staying in place.

Parexel is a Durham, N.C.-based biopharmaceutical services company.

ION restructured

Back in the primary market, ION Analytics upsized its U.S. seven-year first-lien covenant-lite term loan to $910 million from $850 million, downsized its euro seven-year first-lien covenant-lite term loan to €780 million from €865 million, lowered pricing on the debt to Libor/Euribor plus 400 bps from Libor/Euribor plus 425 bps and added a 25 bps step-down at 4.75x first-lien net leverage, according to a market source.

Also, the original issue discount on the U.S. term loan was revised to 99.5 from 99, and the discount talk on the euro term loan was changed to a range of 99 to 99.5 from 98.5.

The U.S. term loan still has a 0.5% Libor floor, the euro term loan still has a 0% floor and both term loans still have 101 soft call protection for six months.

Recommitments for the U.S. term loan were due at noon ET on Wednesday and recommitments for the euro term loan are due at 5 a.m. ET on Thursday, the source added.

Credit Suisse is the global coordinator on the deal that will be used to refinance existing debt and pay transactions fees and expenses. Credit Suisse and UBS Investment Bank are the joint bookrunners.

London-based ION Analytics is a provider of capital markets data, content and intelligence.

Idera revised

Idera set the spread on its fungible $330 million seven-year incremental first-lien term loan and repricing and extension of its existing roughly $787 million first-lien term loan at Libor plus 375 bps, the low end of the Libor plus 375 bps to 400 bps talk, and modified the original issue discount on the incremental first-lien loan to 99.75 from 99.5, a market source said.

Furthermore, the company cut pricing on its $350 million eight-year second-lien term loan (Caa2/CCC) to Libor plus 675 bps from Libor plus 725 bps and tightened the discount to 99.25 from talk in the range of 98.5 to 99.

As before, the first-lien term loan debt (B2/B-) has a 0.75% Libor floor and 101 soft call protection for six months, and the second-lien term loan has a 0.75% Libor floor and hard call protection of 102 in year one and 101 in year two.

The company’s $1.567 billion of credit facilities also include a $100 million five-year revolver (B2/B-).

Idera shuts books

Recommitments for Idera’s credit facilities were due at 2 p.m. ET on Wednesday, the source added.

Jefferies LLC is leading the deal that will be used to fund the majority acquisition of Idera by Partners Group AG. Current shareholders HGGC and TA Associates will continue as significant equity investors in the company, along with Idera’s management team.

In addition to extending the existing first-lien term loan to 2028 from June 2024 to be coterminous with the new incremental term loan and repricing the debt from Libor plus 400 bps with a 1% Libor floor, the company’s amendment would permit the new debt financing and related distribution to existing shareholders, and adjust basket and ratio sizing to reflect the increased scale and new capitalization of the business.

Existing first-lien term loan lenders were offered a 37.5 bps consent fee.

Idera is a Houston-based provider of database, application development and testing software.

Kloeckner tweaks deal

Kloeckner Pentaplast set its U.S. term loan at $725 million, finalized pricing at Libor plus 475 bps, the low end of the Libor plus 475 bps talk and moved the original issue discount to 99.5 from 98.5, according to a market source.

Also, the company set its euro term loan at €600 million, firmed pricing at Euribor plus 475 bps, the tight end of the Euribor plus 475 bps to 500 bps talk and revised discount talk to a range of 98.5 to 99 from 98.5, the source said.

The U.S. term loan still has a 0.5% Libor floor, the euro loan still has a 0% floor and both loans still have 101 soft call protection for six months.

J.P. Morgan Securities LLC, Credit Suisse, Deutsche Bank, Goldman Sachs, BofA Securities, Wells Fargo and Rabobank are leading the deal that will be used to refinance the company’s existing capital structure.

Kloeckner Pentaplast is a Montabaur, Germany-based manufacturer of rigid plastic film solutions.

Advisor updated

Advisor Group firmed pricing on its $1.485 billion first-lien term loan (B2/B-) due August 2026 at Libor plus 450 bps, the high end of the Libor plus 425 bps to 450 bps talk, a market source remarked.

The term loan still has a 0% Libor floor, a par issue price and 101 soft call protection for six months.

Allocations went out on Wednesday, the source added.

UBS Investment Bank is leading the deal that will be used to reprice an existing term loan down from Libor plus 500 bps with a 0% Libor floor.

Reverence Capital is the sponsor.

Advisor Group is a Phoenix-based network of independent financial advisers.

LogMeIn modified

LogMeIn raised its fungible incremental senior secured first-lien term loan B due Aug. 31, 2027 to $500 million from $200 million and set the original issue discount at 99.25, the middle of the 99 to 99.5 talk, a market source remarked.

Pricing on the incremental term loan is Libor plus 475 bps with a 0% Libor floor, in line with existing term loan pricing, and the incremental term loan has 101 soft call protection through August.

Final commitments were due at noon ET on Wednesday, the source added.

Barclays, RBC Capital Markets, Deutsche Bank Securities Inc., Jefferies LLC and Mizuho Bank Ltd. are leading the deal that will be used to repay in full the company’s $500 million second-lien term loan due 2028.

Francisco Partners is the sponsor.

LogMeIn is a Boston-based provider of cloud-based connectivity.

Rent-A-Center upsizes

Rent-A-Center raised its term loan B to $875 million from $575 million, and left talk at Libor plus 450 bps with a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

Commitments are due at noon ET on Thursday, accelerated from 5 p.m. ET on Thursday, the source added.

J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC and HSBC Securities (USA) Inc. are leading the deal that will be used to help fund the acquisition of Acima Holdings LLC for $1.273 billion in cash and about 10.8 million shares of Rent-A-Center common stock.

Closing is expected in the first half of this year subject to customary conditions, including clearance under the Hart-Scott-Rodino Antitrust Improvements Act.

Rent-A-Center is a Plano, Tex.-based omni-channel lease-to-own provider for the credit constrained customer. Acima is a Salt Lake City-based provider of virtual lease-to-own solutions.

Ontic guidance

Ontic held its lender call on Wednesday and announced price talk on its $551 million covenant-lite first-lien term loan due October 2026 at Libor plus 400 bps to 425 bps with a 0% Libor floor and an original issue discount of 99.75 to par, a market source said.

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

Commitments are due at noon ET on Feb. 12, the source added.

Nomura Securities is leading the deal that will be used to reprice an existing term loan down from Libor plus 475 bps with a 0% Libor floor.

Ontic is a provider of OEM-licensed parts and aftermarket services for mature aerospace and defense platforms.

Lummus holds call

Lummus Technology emerged in the morning with plans to hold a lender call at 2 p.m. ET to launch a $1.047 billion covenant-lite first-lien term loan (B1/B+) due June 2027 talked at Libor plus 350 bps with a 0% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Commitments are due at 5 p.m. ET on Monday, 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 400 bps with a 0% Libor floor.

Lummus is a developer and licensor of mission essential technologies for the refining and petrochemical industries and a supplier of catalysts and proprietary equipment.

Herbalife repricing

Herbalife announced in the morning that it would hold a lender call at noon ET to launch a $733,125,000 senior secured first-lien term loan due August 2025 talked at Libor plus 250 bps with a 0% Libor floor, a par issue price and 101 soft call protection for six months, a market source said.

Consents and new money commitments are due at 4 p.m. ET on Monday, the source added.

Jefferies LLC is leading the deal that will be used to reprice an existing term loan down from Libor plus 275 bps with a 0% Libor floor,

Herbalife is a Los Angeles-based nutrition and weight management company.

AppLovin launches

AppLovin held a lender call at 1 p.m. ET to launch a fungible $300 million add-on term loan that is talked with an original issue discount of 99.75, according to a market source.

Pricing on the incremental term loan is Libor plus 400 bps with a 0% Libor floor, in line with existing term loan pricing.

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

J.P. Morgan Securities LLC, BofA Securities Inc. and KKR Capital Markets are leading the deal that will be used for acquisition funding and general corporate purposes.

AppLovin is a Palo Alto, Calif.-based mobile monetization platform that enables performance-based user acquisition campaigns for mobile game and other app developers.

Catalent hits market

Catalent Pharma launched on a call at 11 a.m. ET a $933 million term loan due May 2026 talked at Libor plus 200 bps to 225 bps with a 0.5% Libor floor, a par issue price and 101 soft call protection for six months, a market source remarked.

Commitments are due at noon ET on Wednesday, the source added,

J.P. Morgan Securities LLC, Barclays, BofA Securities Inc., RBC Capital Markets, Mizuho, Goldman Sachs Bank USA and Wells Fargo Securities LLC are leading the deal that will be used to reprice an existing term loan from Libor plus 225 bps with a 1% Libor floor.

Catalent is a Somerset, N.J.-based provider of advanced delivery technologies and development solutions for drugs, biologics and consumer health products.

Aptean sets talk

Aptean came out with issue price talk of par on its fungible $100 million incremental first-lien term loan that launched with a call during the session, a market source said.

Pricing on the incremental term loan is Libor plus 425 bps with a 0% Libor floor, and the debt has 101 soft call protection through May.

Commitments are due at 4 p.m. ET on Monday, the source added.

Golub Capital is the left lead on the deal that will be used to refinance an existing non-fungible $80 million first-lien term loan-2 and to put cash on balance sheet.

Pro forma for the transaction, the first-lien term loan will total $845 million.

Aptean is an Alpharetta, Ga.-based provider of mission-critical enterprise software solutions.

Adtalem timing surfaces

Adtalem set a lender call for 1 p.m. ET on Thursday to launch its previously announced $1.4 billion of senior secured credit facilities (B1), according to a market source.

The facilities consist of a $400 million revolver and a $1 billion term loan B.

Morgan Stanley Senior Funding Inc. is the left lead arranger on the deal. Other lead arrangers include Barclays, Credit Suisse Securities (USA) LLC and MUFG.

Proceeds will be used to help fund the acquisition of Walden University from Laureate Education Inc. for $1.48 billion and refinance Adtalem’s existing credit agreement.

Other funds for the transaction are expected to come from cash on the balance sheet and $650 million of senior secured notes.

Closing is expected in the first quarter of fiscal year 2022, subject to regulatory approvals and other customary conditions.

Adtalem is a Chicago-based workforce solutions provider. Walden University is an online health care education provider.

Liftoff readies deal

Liftoff Mobile will hold a lender call at 10 a.m. ET on Thursday to launch $350 million of senior secured credit facilities, according to a market source.

The facilities consist of a $50 million revolver and a $300 million first-lien term loan B, the source said.

Morgan Stanley Senior Funding Inc. is the left lead on the deal that will be used to finance the majority investment in Liftoff by Blackstone and pay fees and expenses related to the transaction.

Closing is subject to customary conditions.

Liftoff is a Redwood City, Calif.-based performance-based mobile app marketing optimization platform.

ProAmpac on deck

ProAmpac scheduled a lender call for 2 p.m. ET on Thursday to launch a fungible $380 million incremental first-lien term loan, a market source remarked.

Antares Capital is the left lead on the deal that will be used to fund acquisitions, repay the non-extended term loan, term out the revolver and pay transaction fees and expenses.

ProAmpac, a Pritzker Private Capital portfolio company, is a Cincinnati-based supplier of flexible packaging products to a diverse set of end markets, including food, pet food, consumer, medical, pharmaceutical, industrial and specialty retail.

Waystar coming soon

Waystar set a lender call for 10:30 a.m. ET on Thursday to launch a repricing of its $618 million incremental first-lien term loan B, according to a market source.

Talk on the term loan is Libor plus 400 bps with a 0% Libor floor, an original issue discount of 99.75 to par and 101 soft call protection for six months, the source said.

Commitments are due at noon ET on Wednesday.

J.P. Morgan Securities LLC is leading the deal.

The repricing will take the incremental term loan down from Libor plus 400 bps with a 0.75% Libor floor and make it fungible with an existing $918 million term loan that is already priced at Libor plus 400 bps with a 0% Libor floor to create one $1.536 billion term loan tranche.

Waystar is a provider of health care payments software.

Ensemble joins calendar

Ensemble Health will hold a lender call at 1 p.m. ET on Thursday to launch an incremental term loan, a market source said.

Goldman Sachs Bank USA, Antares Capital, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Guggenheim and Mizuho are leading the deal.

Golden Gate Capital is the sponsor.

Ensemble Health is a Cincinnati-based provider of technology-enabled revenue cycle management services to hospitals and health systems.

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