Petco, Cvent, Microsemi, Grocery Outlet, Global Healthcare, Six Flags, Bob’s free to trade

By Sara Rosenberg

New York, June 16 – Petco Animal Supplies Inc. set pricing on its term loan B-1 and term loan B-2 at the high end of talk and Cvent Inc. firmed the spread on its first-lien term loan B at the low end of guidance. Both deals then freed up for trading on Thursday.

Also, Microsemi Corp. upsized its term loan B and set the issue price at the wide end of revised talk, and Grocery Outlet Inc. (GOBP Holdings Inc.) upsized its add-on first-lien term loan while finalizing the spread at the wide end of talk, and then these deals made their way into the secondary market too.

Other deals to break for trading during the session included Global Healthcare Exchange LLC, Six Flags Entertainment Corp. and Bob’s Discount Furniture Inc.

Meanwhile, in other happenings, Vertafore (VF Holding Corp.) trimmed pricing on its term loan and tightened the original issue discount, and Avantor Performance Materials firmed pricing on its first-lien term loan at the high end of talk and extended the call protection.

Furthermore, Hertz Corp. set the spread on its term loan B at the low side of guidance, added a step-down and modified the issue price, Prime Security Services Borrower LLC (ADT) lifted pricing on its 2021 term loan and Creative Artists Agency LLC finalized the spread on its term loan at the high end of talk and the issue price at the tight end of guidance.

Additionally, MW Industries (MWI Holdings Inc.) and Strategic Partners Acquisition Corp. accelerated the commitment deadlines on their credit facilities and WEX Inc., Royal Oak Enterprises LLC, Global Brass and Copper Holdings Inc. and SeaStar Solutions disclosed price talk with launch.

Petco firms terms, breaks

Petco Animal Supplies finalized pricing on its $1.82 billion covenant-light term loan B-1 due Jan. 26, 2023 at Libor plus 400 basis points, the wide end of the Libor plus 375 bps to 400 bps talk, and on its $698 million covenant-light term loan B-2 due Jan. 26, 2023 at Libor plus 425 bps, the high end of the Libor plus 400 bps to 425 bps talk, according to a market source.

The term loan B-1 has a 1% Libor floor, the term loan B-2 has no Libor floor, and both loans have a 25 bps step-down when first-lien leverage is 4 times, a par issue price and 101 soft call protection until January 2017.

After spreads were set, the $2,518,000,000 in senior secured term loans hit the secondary market, with the term loan B-1 quoted at par bid, par ¼ offered and the term loan B-2 quoted at par bid, par 3/8 offered, a trader said.

Citigroup Global Markets Inc., Barclays, RBC Capital Markets LLC, Credit Suisse Securities (USA) LLC, Nomura and Macquarie Capital (USA) Inc. are leading the deal that will reprice the existing term B-1 from Libor plus 475 bps with a 1% Libor floor and the existing term B-2 from Libor plus 500 bps with no Libor floor.

Petco, a San Diego-based retailer of pet food, supplies and services, expects to close on the loans on Friday.

Cvent sets spread, trades

Cvent finalized pricing on its $375 million seven-year senior secured first-lien term loan B (B1/B) at Libor plus 500 bps, the tight end of the Libor plus 500 bps to 525 bps talk, and left the 1% Libor floor, original issue discount of 99 and 101 soft call protection for six months unchanged, a market source said.

The term loan B has a ticking fee of half the coupon from days 31 to 60 and the full coupon subsequently.

The company’s $645 million credit facility also provides for a $40 million revolver (B1/B) and a privately placed $230 million second-lien term loan that was upsized from $225 million.

With final terms in place, the first-lien term loan B freed up for trading and levels were seen at 99½ bid, par ½ offered, the source added.

Goldman Sachs & Co., Antares Capital, Jefferies Finance LLC and RBC Capital Markets LLC are leading the deal that will help fund the buyout of the Tysons Corner, Va., cloud-based enterprise event management company by Vista Equity Partners for $36 in cash per share, or about $1.65 billion.

Closing is expected in the third quarter, subject Cvent stockholder and regulatory approvals.

Microsemi updated, frees up

Microsemi lifted its senior secured covenant-light term loan B (Ba2/BB) due Jan. 15, 2023 to $1,104,000,000 from $854 million and finalized the original issue discount at 99.5, versus revised talk of 99.5 to 99.75 and initial talk of par, according to a market source.

The term loan B is priced at Libor plus 300 bps with a 0.75% Libor floor and has 101 soft call protection for six months.

Previously in syndication, pricing on the term loan B was reduced from Libor plus 325 bps.

By late day, the term loan B broke for trading, with levels quoted at 99 5/8 bid, par offered, a trader added.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to reprice an existing term loan B.

Closing is expected in late June.

Microsemi is an Aliso Viejo, Calif.-based provider of semiconductor solutions.

Grocery revised, tops OID

Grocery Outlet raised its senior secured add-on first-lien term loan due Oct. 21, 2021 to $90 million from $60 million and firmed pricing at Libor plus 400 bps, the high end of the Libor plus 375 bps to 400 bps talk, while leaving the 1% Libor floor and original issue discount of 98.76 intact, a market source remarked.

With the add-on, pricing on the company’s existing term loan B will be amended to Libor plus 400 bps.

Recommitments/amendment signature pages were due at 3 p.m. ET on Thursday and then the debt freed to trade, with levels quoted at 99 bid, 99½ offered, a trader added.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to help finance a distribution to sponsor Hellman & Freeman and company management.

Closing is expected during the week of June 20.

Grocery Outlet is an Emeryville, Calif.-based grocery store operator.

Global Healthcare starts trading

Global Healthcare Exchange’s $43 million add-on term loan and repriced $373 million term loan emerged in the secondary too, with levels quoted at par bid, par ¼ offered, according to a market source.

Pricing on the term debt is Libor plus 425 bps with a 1% Libor floor and it includes 101 soft call protection for six months. The add-on term loan was sold at an original issue discount of 99.75 and the repricing was issued at par.

SunTrust Robinson Humphrey Inc. is leading the deal (B).

Proceeds from the add-on will be used to fund an acquisition, and the repricing will take the existing term loan down from Libor plus 450 bps with a 1% Libor floor.

Global Healthcare Exchange is a Louisville, Colo.-based provider of health care supply chain solutions.

Six Flags breaks

Another deal to begin trading was Six Flags’ repriced term loan B, with levels seen at par bid, par ½ offered, a source said.

Pricing on the loan is Libor plus 250 bps with a 0.75% Libor floor and it was issued at par. The debt has 101 soft call protection for six months.

Wells Fargo Securities LLC is leading the repricing, which will take the term loan B down from Libor plus 275 bps with a 0.75% Libor floor, and will result in the removal of an existing step-down to Libor plus 250 bps.

The term loan B will be sized at roughly $545 million after a planned $150 million paydown with proceeds from a $300 million senior unsecured notes offering.

Remaining net proceeds from the notes sale will be used to fund repurchases of the company’s common stock from time to time, subject to compliance with its financing agreements, and if not used for stock repurchases the funds can be used for strategic initiatives.

Six Flags is a Grand Prairie, Texas-based regional theme park company.

Bob’s hits secondary

Bob’s Discount Furniture’s fungible $85 million add-on first-lien covenant-light term loan due February 2021 began trading as well, with levels quoted at 99 bid, 99¾ offered, a trader remarked.

Pricing on the add-on term loan is Libor plus 475 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 one year.

During syndication, the add-on term loan was downsized from $190 million and the call protection was extended from six months.

RBC Capital Markets and UBS Investment Bank are leading the deal that will be used to repay an $80 million second-lien term loan. As a result of the recent downsizing, the add-on is no longer being used to fund a distribution to shareholders.

With the add-on, the company is increasing pricing on its existing first-lien term loan to Libor plus 475 bps from Libor plus 425 bps.

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

Vertafore flexes lower

Back in the primary market, Vertafore lowered pricing on its $1.1 billion seven-year covenant-light first-lien term loan to Libor plus 375 bps from talk of Libor plus 400 bps to 425 bps and changed the original issue discount to 99.5 from 99, according to a market source.

As before, the term loan has a 1% Libor floor and 101 soft call protection for six months.

The company’s $1.2 billion credit facility (B2/B-) also includes a $100 million five-year revolver.

Commitments were due at 5 p.m. ET on Thursday, the source said.

Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Morgan Stanley Senior Funding Inc. and Mizuho are leading the deal that will be used to help fund the buyout of the company by Bain Capital Private Equity and Vista Equity Partners from TPG Capital.

Closing is expected in the third quarter.

Vertafore is a Bothell, Wash.-based provider of software and information to the insurance distribution channel.

Avantor reworks deal

Avantor Performance Materials set pricing on its $670 million first-lien covenant-light term loan (B1/B) at Libor plus 500 bps, the wide end of the Libor plus 475 bps to 500 bps talk, extended the 101 soft call protection to one year from six months and shortened the maturity to six years from seven years, a market source said.

The first-lien term loan still has a 1% Libor floor and an original issue discount of 99.

As for the company’s $165 million second-lien covenant-light term loan (Caa1/CCC+), the maturity was shortened to seven years from eight years, the source continued.

The second-lien term loan pricing was unchanged at Libor plus 950 bps with a 1% Libor floor and a discount of 98, and there is still call protection of 103 in year one, 102 in year two and 101 in year three.

The company’s $885 million credit facility also includes a $50 million revolver (B1/B).

Credit Suisse Securities (USA) LLC, Jefferies Finance LLC and KeyBanc Capital Markets LLC are leading the deal that will be used to refinance existing debt and fund a shareholder dividend.

Avantor, a Center Valley, Pa.-based life sciences company focused on the development of specialty performance materials, is expected to allocate the credit facility on Friday.

Hertz sets term B changes

Hertz finalized pricing on its $700 million term loan B at Libor plus 275 bps, the low end of the Libor plus 275 bps to 300 bps talk, added a step-down to Libor plus 250 bps when net corporate leverage is less than or equal to 3.5 times, tightened the original issue discount to 99.75 from 99.5 and removed the 12 month MFN sunset, according to a market source.

The term loan B still has a 0.75% Libor floor and 101 soft call protection for six months.

The company’s $2.4 billion credit facility (Ba1/BB) also includes a $1.7 billion revolver.

Commitments were due at 5 p.m. on Thursday, the source added.

Barclays, Credit Agricole Securities (USA) Inc., Bank of America Merrill Lynch, BMO Capital Markets Corp., BNP Paribas Securities Corp., Citigroup Global Markets Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC and RBC Capital Markets LLC are leading the deal that will be used to refinance existing debt and replace the company’s existing asset-based revolver due 2017 in connection with the spinoff of its equipment rental business.

Hertz is an Estero, Fla.-based car rental company.

Prime Security modified

Prime Security Services raised pricing on its $1,092,000,000 first-lien term loan due 2021 to Libor plus 375 bps from Libor plus 350 bps and left the 1% Libor floor and par issue price intact, according to a market source.

The company’s $1,555,000,000 first-lien term loan due 2022 is still talked at Libor plus 375 bps with a 1% Libor floor and a par issue price, and the $125 million incremental first-lien term loan due 2022 is still talked at Libor plus 375 bps with a 1% Libor floor and an original issue discount of 99.5.

As before, all of the term loans have 101 soft call protection for six months.

There is the ability to replace non consenting lenders in either the 2021 or 2022 tranche with up to $575 million of replacement dollars, which would be eligible to receive the 50 bps original issue discount offered under the incremental term loan, the source said.

Prime Security leads

Barclays, Deutsche Bank Securities Inc. and RBC Capital Markets LLC are leading Prime Security’s $2,772,000,000 in covenant-light term loans.

Commitments were due at 5 p.m. ET Thursday, the source added.

Proceeds will be used to reprice the company’s existing 2021 and 2022 first-lien term loans from Libor plus 450 bps with a 1% Libor floor, and to repay $125 million of existing second-lien term loan borrowings due 2022.

Prime Security is a security services company.

Creative Artists updates pricing

Creative Artists Agency set pricing on its $622.6 million term loan B due December 2021 at Libor plus 400 bps, the wide end of the Libor plus 375 bps to 400 bps talk, and the issue price at par, the tight end of the 99.75 to par talk, a market source remarked.

The term loan still has a 1% Libor floor and 101 soft call protection for six months.

Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Mizuho, Nomura and UBS Investment Bank are leading the deal that will reprice an existing term loan from Libor plus 450 bps with a 1% Libor floor.

Creative Artists is a Los Angeles-based entertainment and sports firm.

MW Industries moves deadline

MW Industries accelerated the commitment deadline on its $470 million senior secured credit facility to Tuesday from June 23, according to a market source.

The facility consists of a $40 million revolver, a $325 million four-year first-lien term loan and a $105 million 4.5-year second-lien term loan.

Talk on the first-lien term loan is Libor plus 525 bps to 550 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, and talk on the second-lien term loan is Libor plus 925 bps with a 1% Libor floor, a discount of 97 to 97.5 and call protection of 102 in year one and 101 in year two.

UBS Investment Bank and Credit Suisse Securities (USA) LLC are leading the deal that will be used to refinance existing debt.

MW Industries, owned by Genstar Capital, is a Logansport, Ind.-based manufacturer of highly engineered springs and fasteners for OEMs and MROs.

Strategic Partners shutting early

Strategic Partners moved up the commitment deadline on its $370 million credit facility to Tuesday from June 23, a source said.

The facility is split between a $45 million revolver and a $325 million seven-year first-lien covenant-light term loan talked at Libor plus 550 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

UBS Investment Bank, Goldman Sachs & Co. and Credit Suisse Securities (USA) LLC are leading the deal that will be used to help fund the buyout of the company by New Mountain Capital.

Strategic Partners is a Chatsworth, Calif.-based designer and manufacturer of medical apparel and footwear and school uniforms.

WEX releases guidance

WEX held its bank meeting on Thursday, launching its $1.21 billion seven-year term loan B with talk of Libor plus 400 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 June 23, the source said.

Bank of America Merrill Lynch, SunTrust Robinson Humphrey Inc., MUFG and Citizens Bank are leading the deal.

The company’s $2,125,000,000 credit facility (Ba3/BB-) also includes a $470 million revolver, under which $200 million will be drawn, and a $445 million term loan A, the company said in a recent filing with the Securities and Exchange Commission.

WEX buying Electronic Funds

Proceeds from WEX’s credit facility will be used to help fund the acquisition of Electronic Funds Source LLC for about $1.1 billion in cash and the issuance of 4 million shares of common stock to investment funds affiliated with Warburg Pincus, Electronic Funds Source’s current owner, to repay existing revolver borrowings of $219 million and to repay an existing $452 million term loan A.

Secured/total debt to adjusted EBITDA is 4.7 times.

Closing on the acquisition is subject to regulatory approvals and other customary conditions.

Upon closing, investment funds affiliated with Warburg Pincus will become WEX’s largest shareholder.

WEX is a South Portland, Maine-based provider of corporate payment solutions. Electronic Funds Source is a provider of payments solutions.

Royal Oak terms emerge

Royal Oak Enterprises launched with a bank meeting its $325 million covenant-light term loan B with talk of Libor plus 475 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

The company’s $365 million credit facility also includes a $40 million revolver.

Commitments are due on June 28, the source said.

SunTrust Robinson Humphrey Inc. is leading the deal that will be used to help fund the buyout of the company by Mariposa Capital.

Royal Oak is a Roswell, Ga.-based maker of charcoal products.

Global Brass reveals talk

Global Brass and Copper came out with talk of Libor plus 450 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year on its $320 million seven-year term loan B (B2/BB-) that launched with a call during the session, a market source remarked.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance existing notes.

Global Brass is a Schaumburg, Ill.-based converter, fabricator, processor and distributor of specialized non-ferrous products.

SeaStar holds call

SeaStar Solutions hosted a lender call on Thursday, launching a fungible $90 million add-on first-lien term loan (B) due 2021 talked at Libor plus 450 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

In connection with the add-on, pricing on the company’s existing first-lien term loan will be lifted to Libor plus 450 bps with a 1% Libor floor from Libor plus 425 bps with a 1% Libor floor, the source said.

Commitments are due on June 23.

RBC Capital Markets, Antares Capital and UBS Investment Bank are leading the deal.

SeaStar, a manufacturer and distributor of marine steering and control systems and engine and drive parts, will use the add-on term loan to fund a dividend.

Yum! closes

In other news, Yum! Brands Inc. closed on its $3.5 billion credit facility (Ba1/BBB-) consisting of a $1 billion revolver, a $500 million term loan A and a $2 billion seven-year senior secured term loan B, a news release said.

Pricing on the term loan B is Libor plus 275 bps with no floor, and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for one year.

During syndication, the term loan B was upsized from $1.5 billion as the term loan A was downsized from $800 million and the company’s senior unsecured notes offering was downsized to $2.1 billion from $2.3 billion, pricing was cut from Libor plus 300 bps and the 0.75% Libor floor was removed.

Goldman Sachs & Co., J.P. Morgan Securities LLC, Citigroup Global Markets Inc. and Wells Fargo Securities LLC led the deal, with Goldman left lead on the term B and JPMorgan left lead on the pro rata debt.

Proceeds were used to fund a return of capital to shareholders, repay revolver borrowings, pay associated transaction fees and expenses and support general corporate purposes.

Yum! Brands is a Louisville, Ky.-based quick-service restaurant operator.

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