Curo Health, Linxens, Mueller Water, Ineos, HCA, Creative Artists, Ennis-Flint break

By Sara Rosenberg

New York, Feb. 10 – Curo Health Services Holdings Inc. finalized the spread on its term loan debt at the low end of talk and tightened the issue price on the incremental piece, Linxens set pricing on its term loan at the high end of talk and Mueller Water Products Inc. firmed pricing on its term loan B at the tight side of guidance, and then all of these deals freed up for trading on Friday.

Other deals to make their way into the secondary market during the session included Ineos Group Holdings SA, HCA Inc., Creative Artists Agency LLC and Ennis-Flint.

In more happenings, Select Medical Holdings Corp. set the spread on its term loan at the low end of talk and extended the call protection, and Tradesmen International Inc. moved some funds between its first-and second-lien term loans, lifted pricing on both tranches and widened the original issue discount on the second-lien debt.

Also, Sesac Holdings shifted funds between its terms loans and updated pricing, US Foods Inc. removed the step-down from its term loan B, Royal Adhesive Inc. added an incremental first-lien term loan request to its in market repricing proposal, and Neustar Inc., Veresen Midstream LP and Solera Holdings Inc. joined the near-term calendar.

Curo updated, frees up

Curo Health Services set pricing on its fungible $60 million incremental first-lien term loan B due Feb. 5, 2022 and repricing of its existing $373 million term loan B due Feb. 5, 2022 at Libor plus 475 basis points, the low end of the Libor plus 475 bps to 500 bps talk, and changed the issue price on the incremental loan to par from 99.5, a market source said.

As before, the repricing is offered at par, and all of the term debt has a 1% Libor floor and 101 soft call protection for six months.

Following the release of updated terms, the total $433 million term loan B (B2/B) began trading, with levels quoted at par bid, par ½ offered, the source added.

Goldman Sachs Bank USA, Jefferies Finance LLC, SunTrust Robinson Humphrey Inc., Nomura, Citizens and Credit Suisse Securities (USA) LLC are leading the deal.

The incremental loan will be used to repay second-lien notes, and the repricing will take the existing term loan down from Libor plus 550 bps with a 1% Libor floor.

Curo Health is a Mooresville, N.C.-based pure play hospice provider.

Linxens firms, trades

Linxens finalized the spread on its $545 million first-lien term loan due October 2022 at Libor plus 350 bps, the high end of the Libor plus 325 bps to 350 bps talk, a market source remarked.

The term loan still has a pricing step-down, a 1% Libor floor, a par issue price and 101 soft call protection for six months.

With firm terms in place, the first-lien term loan made its way into the secondary market, and levels were seen at par 1/8 bid, par ½ offered, the source added.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to reprice an existing first-lien term loan from Libor plus 400 bps with a step-down and a 1% Libor floor.

Linxens is a France-based designer and manufacturer of flexible connectors for smart cards.

Mueller sets spread, breaks

Mueller Water Products finalized pricing on its $491 million term loan B at Libor plus 250 bps, the low end of the Libor plus 250 bps to 275 bps talk, according to a market source.

The term loan still has a 0.75% Libor floor, a par issue price and 101 soft call protection for six months.

After terms finalized, the term loan B freed to trade, and levels were quoted at par 1/8 bid, par 5/8 offered, a trader added.

Bank of America Merrill Lynch, J.P. Morgan Securities LLC and Wells Fargo Securities LLC are leading the deal that will be used to reprice an existing term loan down from Libor plus 325 bps with a 0.75% Libor floor.

Mueller Water is an Atlanta-based manufacturer and marketer of drinking water transmission, distribution and treatment facilities.

Ineos tops issue prices

Ineos’ U.S. term loans began trading as well, with the $555 million U.S. term loan B due 2024 quoted at par ¼ bid, par ¾ offered and the $1.45 billion U.S. term loan due March 31, 2022 quoted at par ½ bid, 101 offered, a source remarked.

Pricing on the term loans is Libor plus 275 bps with step-downs to Libor plus 275 bps at 2 times consolidated total net leverage and Libor plus 250 bps at less than 2 times and no Libor floor. The debt was issued at par.

During syndication, the size of the U.S. 2024 term loan was revised from €575 million U.S. dollar-equivalent, pricing was set at the low end of the Libor plus 275 bps to 300 bps talk, and the issue price was revised from 99.75, and the size of the U.S. 2022 term loan firmed from up to $1,489,000,000 at launch while the spread was set at the low end of the Libor plus 275 bps to 300 bps talk.

Ineos euro term loans

Along with the U.S. term loans, Ineos is getting an €875 million term loan B due 2024 and a €1,725,000,000 term loan due March 31, 2022, both priced at Euribor plus 250 bps with step-downs to Euribor plus 250 bps at 2 times consolidated total net leverage and Euribor plus 225 bps at less than 2 times, a 0.75% floor and issued at par.

The 2024 euro term loan was increased from €575 million during syndication, the 2022 euro term loan firmed from a size of up to €1,934,000,000 at launch, pricing on both tranches was set at the tight end of the Euribor plus 250 bps to 275 bps talk, and the issue price on the 2024 loan was revised from 99.75.

Barclays and Bank of America Merrill Lynch are the global coordinators and joint lead arrangers on the deal and joint bookrunners with Credit Suisse, Goldman Sachs, J.P. Morgan Securities LLC and Lloyds.

Proceeds from the 2024 term loans will be used to repay existing notes due 2019, and the 2022 term loans will be used to reprice and extend existing U.S. and euro 2020 term loans and reprice existing U.S. and euro 2022 term loans.

Ineos is a Rolle, Switzerland-based chemical company.

HCA above par

HCA’s $1,197,000,000 term loan B-8 (BBB-) also broke, with levels seen at par 1/8 bid, par ½ offered, according to a trader.

Pricing on the B-8 loan is Libor plus 225 bps with no Libor floor, and it was issued at par. The debt has 101 soft call protection for six months.

Bank of America Merrill Lynch is the lead bank on the deal that will be used to refinance a term loan B-7 priced at Libor plus 275 bps with no Libor floor.

HCA is a Nashville, Tenn.-based health care services provider.

Creative Artists breaks

Creative Artists Agency’s $777.9 million seven-year covenant-light term loan B (B2) freed up too, with levels quoted at par bid, par ½ offered and then it moved up to par ¼ bid, par ¾ offered, a trader said.

Pricing on the loan is Libor plus 350 bps with a 1% Libor floor, and it was sold at an original issue discount of 99.75. The debt includes 101 soft call protection for six months.

During syndication, pricing on the loan was reduced from Libor plus 375 bps.

Bank of America Merrill Lynch, Mizuho, Nomura, Credit Suisse Securities (USA) LLC, UBS Investment Bank, SunTrust Robinson Humphrey Inc. and M&T Bank are leading the deal that will be used to refinance an existing term loan B and to fund a distribution to shareholders.

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

Ennis-Flint frees up

Ennis-Flint’s $487 million senior secured term loan B due June 2023 hit the secondary market, with levels seen at par ¼ bid, 101 offered, according to a market source.

Pricing on the loan is Libor plus 350 bps with a 1% Libor floor, and it was issued at par. Included in the debt is 101 soft call protection for six months.

Goldman Sachs Bank USA, Antares Capital and Jefferies Finance LLC are leading the deal that will be used to reprice the existing term loan down from Libor plus 400 bps with a 1% Libor floor.

Ennis-Flint is a Thomasville, N.C.-based pavement marking company.

Select Medical modified

Back in the primary market, Select Medical set pricing on its $1.15 billion seven-year term loan (Ba2/BB-) at Libor plus 350 bps, the low end of the Libor plus 350 bps to 375 bps talk, extended the 101 soft call protection to one year from six months and removed the MFN sunset, a source said.

The term loan still has a 1% Libor floor and an original issue discount of 99.5.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance existing term loan E and term loan F borrowings.

Select Medical is a Mechanicsburg, Pa.-based health care company.

Tradesmen reworks deal

Tradesmen lifted its seven-year first-lien term loan to $255 million from $230 million, raised pricing to Libor plus 450 bps from Libor plus 425 bps and eliminated the step-down, while leaving the 1% Libor floor, original issue discount of 99 and 101 soft call protection for six months unchanged, according to a market source.

As for the eight-year second-lien term loan, it was scaled back to $55 million from $80 million, pricing was increased to Libor plus 1,000 bps from talk of Libor plus 850 bps to 875 bps, and the discount was revised to 98 from 98.5, the source said. This tranche still has a 1% Libor floor and call protection of 102 in year one and 101 in year two.

Other changes include eliminating the MFN sunset, reducing the free/clear accordion basket to $40 million from $60 million, eliminating the 1 times of EBITDA accordion grower, eliminating the inside maturity debt prong in the accordion, increasing the excess cash flow sweep to 75%, and capping add-backs to EBITDA at 25%, the source continued.

Tradesmen getting revolver

Along with the first-and second-lien term loans, Tradesmen’s $350 million credit facility provides for a $40 million cash flow revolver.

Recommitments were due by 4 p.m. ET on Friday, the source added.

Deutsche Bank Securities Inc., Macquarie Capital (USA) Inc., HSBC Securities (USA) Inc., Goldman Sachs Bank USA and Credit Suisse Securities (USA) LLC are leading the deal that will be used to help fund the buyout of the company by Blackstone from Wellspring Capital Management LLC.

Closing is expected this quarter.

Tradesmen is a Macedonia, Ohio-based agency-based provider of outsourced skilled craftsmen to non-residential construction and industrial contractors.

Sesac changes emerge

Sesac Holdings upsized its first-lien term loan to $385 million from $365 million, set pricing at Libor plus 325 bps, the low end of the Libor plus 325 bps to 350 bps talk, and tightened the original issue discount to 99.75 from 99.5, a market source remarked. This tranche still has a 1% Libor floor and 101 soft call protection for six month.

Also, the company downsized its second-lien term loan to $140 million from $160 million and trimmed pricing to Libor plus 725 bps from Libor plus 750 bps, while keeping the 1% Libor floor, discount of 99 and hard call protection of 102 in year one and 101 in year two intact, the source continued.

The company’s $565 million credit facility also includes a $40 million revolver.

Commitments were due at 3 p.m. ET on Friday, the source added.

Jefferies Finance LLC and Guggenheim are leading the deal that will be used to help fund the buyout of the Nashville, Tenn.-based music rights organization by Blackstone from Rizvi Traverse Management.

Closing is expected by the end of this quarter.

US Foods removes step

US Foods eliminated the 25 bps step-down when consolidated secured leverage is 2.25 times from its $2,189,000,000 senior secured covenant-light term loan B (BB) due June 27, 2023, according to a market source.

Pricing on the loan is still Libor plus 275 bps with a 0.75% Libor floor and a par issue price, and the debt still has 101 soft call protection for six months.

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

Citigroup Global Markets Inc., KKR Capital Markets, BMO Capital Markets, Goldman Sachs Bank USA, ING, J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Morgan Stanley Senior Funding Inc. and Wells Fargo Securities LLC are leading the deal that will reprice the existing term loan down from Libor plus 300 bps with a 0.75% Libor floor.

Closing is targeted for Feb. 17.

US Foods is a Chicago-based broadline foodservice distributor.

Royal Adhesive tweaked

Royal Adhesive is now asking lenders for a $55 million covenant-light incremental first-lien term loan due June 2022 in addition to the previously launched repricing of its $552 million covenant-light first-lien term loan due June 2022, according to a market source.

Pricing on all of the term loan debt is Libor plus 325 bps with a 1% Libor floor and a par issue price, and the debt has 101 soft call protection for six months.

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

The incremental loan will be used to refinance a second-lien term loan, and the repricing will take the existing term loan down from Libor plus 350 bps with a 1% Libor floor.

Royal Adhesive is a South Bend, Ind.-based producer of specialty adhesives and sealants.

Neustar coming soon

Also in the primary market, Neustar surfaced with plans for a bank meeting on Monday to launch $1.65 billion in term loans, according to a market source.

The debt consists of a $350 million first-lien term loan B-1 due in 2019, a $950 million first-lien term loan B-2 due in 2024 and a $350 million second-lien term loan due in 2025, the source said.

Bank of America Merrill Lynch, UBS Investment Bank, Jefferies Finance LLC, Credit Suisse Securities (USA) LLC, Mizuho and Societe Generale are leading the debt that will be used with equity to fund the buyout of the company by Golden Gate Capital for $33.50 per share in cash. The transaction is valued at about $2.9 billion, including debt to be refinanced.

Closing is expected by the end of the third quarter of 2017, subject to shareholder approval, regulatory approvals and other customary conditions.

Neustar is a Sterling, Va.-based provider of real-time information services.

Veresen on deck

Veresen Midstream set a lender call for 10:30 a.m. ET on Monday to launch a repricing of its $714 million term loan B due 2022 talked at Libor plus 350 bps with a 1% 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 Thursday, the source added.

RBC Capital Markets is leading the deal that will reprice the existing term loan down from Libor plus 425 bps with a 1% Libor floor.

Veresen is a Calgary, Alta.-based jointly owned limited partnership between Veresen Inc. and Kohlberg Kravis Roberts & Co. LP that was formed in March 2015 to build, own and operate natural gas gathering and processing infrastructure in Western Canada.

Solera joins calendar

Solera plans to hold a loan lender call on Monday to launch a transaction for which Nomura Securities Co. Ltd. is the left lead, according to a market source.

Solera is a Westlake, Texas-based provider of software and services to the automobile insurance claims processing industry.

Limetree allocates

In other news, Limetree Bay Terminals LLC allocated its $440 million seven-year first-lien senior secured term loan (Ba3/BB-) that is priced at Libor plus 500 bps with a 1% Libor floor and was issued at a discount of 99, according to a market source.

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

During syndication, the discount on the term loan was tightened from 98.

Barclays and Morgan Stanley Senior Funding Inc. are leading the deal that will be used to fund future growth capital expenditure needs, to pay related fees and expenses and to provide a distribution to the sponsor, ArcLight Capital Partners.

Closing is expected on Wednesday, the source added.

Limetree Bay is a Christiansted, Virgin Islands-based owner of the oil terminal at Limetree Bay, St. Croix, U.S. Virgin Islands.

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