Nord Anglia, HireRight, Viasat, Chart, Koppers break; Fogo de Chao, Priority revised

By Sara Rosenberg

New York, Sept. 21 – Nord Anglia Education (Fugue Finance) officially set the issue price on its U.S. term loan B at the tight end of guidance and firmed the spread on its euro term loan B at the low end of revised talk, and HireRight Holdings Corp. increased the size of its first-lien term loan, trimmed the spread, finalized the issue price at the tight side of guidance and extended the maturity, and then these deals freed to trade on Thursday.

Also, before breaking for trading, Viasat Inc. firmed the original issue discount on its term loan B basically in line with revised talk, and Chart Industries Inc. set the spread on its term loan B at the low end of talk, and Koppers Inc.’s term loan B hit the secondary market as well.

In more happenings, Fogo de Chao (BCPE Grill Parent Inc.) trimmed pricing on its term loan B, modified the original issue discount and made some revisions to documentation, and Priority Technology Holdings Inc. upsized its add-on term loan B and revised the issue price.

Furthermore, GeoStabilization International, Watlow Electric Manufacturing Co., Vertex Aerospace Services Corp., Formula 1 and MKS Instruments Inc. released price talk with launch.

Nord Anglia updated

Nord Anglia, as previously expected, finalized the issue price on its $906 million term loan B due January 2028 at par, the tight end of the 99.75 to par talk, according to a market source.

In addition, the company set pricing on its €1.515 billion term loan B due January 2028 at Euribor plus 425 basis points, the low end of revised talk of Euribor plus 425 bps to 450 bps and down from initial talk of Euribor plus 450 bps, the source said.

As before, the U.S. term loan is priced at SOFR plus 400 bps with a 0.5% floor, the euro term loan has a 0% floor and a par issue price, and both term loans have 101 soft call protection for six months.

Earlier in syndication, the issue price on the euro term loan firmed at the tight end of the 99.75 to par talk.

Deutsche Bank Securities Inc. and JPMorgan Chase Bank are joint physical bookrunners on the U.S. loan, and HSBC Bank is a passive bookrunner. HSBC, Deutsche Bank and JPMorgan are joint physical bookrunners on the euro loan. Citigroup Global Markets Inc., DBS, Goldman Sachs, Morgan Stanley Senior Funding Inc., Standard Chartered, BofA Securities Inc. and E. Sun are mandated lead arrangers. HSBC is the administrative agent.

Nord hits secondary

On Thursday, Nord Anglia’s term loan debt freed to trade, with the U.S. term loan quoted at par 1/8 bid, par 3/8 offered and the euro term loan quoted at par 3/8 bid, par ¾ offered, traders added.

The term loans will be used to reprice an existing U.S. term loan due January 2028 down from SOFR plus 450 bps with a 0.5% floor and an existing euro term loan due January 2028 down from Euribor plus 475 bps with a 0% floor.

BPEA EQT and CPP Investments are the sponsors.

Nord Anglia is a London-based K-12 schools platform.

HireRight reworked, frees

HireRight lifted its first-lien term loan to $750 million from $700 million, lowered pricing to SOFR plus 400 bps from SOFR plus 425 bps, set the original issue discount at 98.5, the tight end of the 98 to 98.5 talk, and extended the maturity to seven years from five years, a market source remarked.

The term loan still has a 0% floor and 101 soft call protection for six months.

Recommitments were due at 11 a.m. ET on Thursday and the term loan broke for trading in the afternoon, with levels quoted at 98¾ bid, 99¼ offered, another source added.

Goldman Sachs Bank USA, RBC Capital Markets, SPC Capital Markets, BofA Securities Inc., Barclays, Citizens and Capital One are leading the deal. BofA is the administrative agent.

The term loan will be used to refinance the company’s first-lien term loan due July 2025 and, due to the upsizing, to add cash to the balance sheet.

HireRight is a Nashville-based provider of technology-driven workforce risk management and compliance solutions.

Viasat firms OID, breaks

Viasat firmed the original issue discount on its $616.7 million term loan B due May 30, 2030 (BB/BB+) at 93, compared to revised talk in the 93 area and initial talk in the range of 95 to 96, a market source said.

Pricing on the term loan is SOFR+CSA plus 450 bps with a 0.5% floor, and the debt has 101 soft call protection for one year. CSA is ARRC standard of 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

During the session, the term loan began trading, with levels quoted at 93¾ bid, 94¾ offered, another source added.

BofA Securities Inc., JPMorgan Chase Bank, Barclays, Credit Suisse Securities (USA) LLC, MUFG, Truist Securities Inc. and Citizens Bank are leading the deal.

The term loan funded in May to help fund the acquisition of Inmarsat (Connect Topco Ltd.) for $550.7 million in cash and about 46.36 million shares of common stock.

Viasat is a Carlsbad, Calif.-based communications company. Inmarsat is a London-based provider of global mobile satellite communications services.

Chart finalized, trades

Chart Industries firmed pricing on its $1.781 billion senior secured term loan B due March 17, 2030 at SOFR+10 bps CSA plus 325 bps, the low end of the 325 bps to 350 bps talk, a market source remarked.

The term loan still has a 0.5% floor, an original issue discount of 99.75 and 101 soft call protection for six months.

On Thursday, the term loan broke for trading, with levels quoted at 99 7/8 bid, par 3/8 offered, another source added.

JPMorgan Chase Bank, HSBC Securities (USA) Inc., Morgan Stanley Senior Funding Inc. and PNC Capital Markets are leading the deal that will be used to reprice an existing term loan down from SOFR+10 bps CSA plus 375 bps with a 0.5% floor.

Chart Industries is a Ball Ground, Ga.-based manufacturer of highly engineered equipment servicing multiple applications in the energy and industrial gas markets.

Koppers frees up

Koppers’ $399 million covenant-lite term loan B due April 10, 2030 started trading as well, with levels quoted at par bid, par ½ offered, according to a market source.

Pricing on the term loan is SOFR+10 bps CSA plus 350 bps with a 0.5% floor and it was issued at par. The debt has 101 soft call protection for six months.

Wells Fargo Securities LLC is the left lead on the deal that will be used to reprice an existing term loan B down from SOFR+10 bps CSA plus 400 bps with a 0.5% floor.

Koppers is a Pittsburgh-based provider of treated wood products, wood treatment chemicals and carbon compounds.

Fogo de Chao revised

Fogo de Chao reduced pricing on its $550 million seven-year covenant-lite term loan B (B3/B-) to SOFR plus 475 bps from SOFR plus 500 bps and changed the original issue discount to 98 from 97, a market source said.

Additionally, modifications were made to documentation including to incremental starter basket, incremental ratio basket, general investments basket, ratio investments basket, permitted acquisitions by a non-credit party, available amount starter basket, MFN, non-credit party incurrences of ratio debt, asset sale sweep reinvestment rights, “run rate” cost savings/synergies addback, and the ratio asset sale basket and asset sale sweep step-downs were removed, the source said.

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

Recommitments were due at 12:30 p.m. ET on Thursday and the loan allocated in the afternoon.

Deutsche Bank Securities Inc., Jefferies LLC and UBS Investment Bank are leading the deal that will be used to help fund the buyout of the company by Bain Capital Private Equity from Rhone Capital.

Closing is expected this month, subject to customary conditions, including regulatory approvals.

Fogo de Chao is a Dallas-based restaurant chain focused on fire-roasting high-quality meats.

Priority sets changes

Priority Technology Holdings increased its fungible add-on term loan B due April 2027 to $40 million from $25 million and tightened the original issue discount to 99.5 from 99.3, a market source remarked.

Pricing on the term loan B is SOFR plus 575 bps with a 1% floor.

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

Truist Securities is leading the deal that will be used to repay revolver borrowings and to add cash to the balance sheet.

Priority Technology is an Alpharetta, Ga.-based payments technology company.

GeoStabilization talk

GeoStabilization International launched on its afternoon call its $175 million first-lien term loan due December 2028 at talk of SOFR plus 525 bps with a 0% floor, an original issue discount of 98.5 to 99 and 101 soft call protection for six months, according to a market source.

Commitments are due at noon ET on Sept. 29, the source added.

UBS Investment Bank and KKR Capital Markets are leading the deal that will be used to amend and extend an existing $175 million covenant-lite first-lien term loan due December 2025.

GeoStabilization is a provider of highly specialized, mission-critical, and non-discretionary geohazard mitigation solutions across the United States and Canada.

Watlow guidance

Watlow Electric Manufacturing came out with original issue discount talk of 99.03 to 99.25 on its fungible $175 million add-on covenant-lite term loan B due March 2028 in connection with its lender call in the morning, a market source said.

Like the existing $503 million term loan B, the add-on term loan B is priced at SOFR+CSA plus 375 bps with a 0.5% floor. CSA is ARRC standard of 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

The add-on term loan and existing term loan are getting 101 soft call protection for six months.

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

BMO Capital Markets is leading the deal that will be used to repay an existing non-fungible incremental term loan due March 2028 priced at SOFR+ARRC CSA plus 500 bps with a 0.5% floor.

Tinicum is the sponsor.

Watlow is a St. Louis-based designer and manufacturer of complete thermal systems.

Vertex launches

Vertex Aerospace Services surfaced early in the day with plans to hold a lender call at 2:30 p.m. ET to launch a $913 million term loan B (B1/B+) due Dec. 6, 2028 talked at SOFR+10 bps CSA plus 300 bps with a step-up to SOFR+10 bps CSA plus 325 bps at more than 3.75x first-lien net leverage, a 0.75% floor, an original issue discount of 99.875 and 101 soft call protection for six months, according to a market source.

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

RBC Capital Markets is leading the deal that will be used to reprice an existing $913 million term loan B due Dec. 6, 2028 down from SOFR+10 bps CSA plus 350 bps with a step-up to SOFR+10 bps CSA plus 375 bps at more than 3.75x first-lien net leverage and a 0.75% floor.

Vertex is a McLean, Va.-based provider of solutions across the operations and logistics, aerospace, training, and technology markets to national security, defense, civilian and international clients.

Formula 1 holds call

Formula 1 emerged in the morning with plans to hold a lender call at 11 a.m. ET to launch a $1.7 billion term loan B due January 2030 talked at SOFR plus 225 bps to 250 bps with a 0.5% floor, a par issue price and 101 soft call protection for six months, a market source remarked.

Commitments are due at 10 a.m. ET on Wednesday, the source added.

Goldman Sachs Bank USA is the left lead on the deal that will be used to reprice an existing $1.7 billion term loan B due 2030.

Formula 1 is a media company that is the exclusive commercial rights holder to FIA Formula One World Championship auto racing.

MKS repricing

MKS Instruments held a lender call at 2 p.m., launching a roughly $3.573 billion term loan B due August 2029 talked at SOFR plus 250 bps with a 0.5% floor, an original issue discount of 99.75 to par and 101 soft call protection for six months, according to a market source.

Commitments are due at 5 p.m. ET on Sept. 28, the source added.

JPMorgan Chase Bank is leading the deal that will be used to reprice an existing term loan B down from SOFR plus 275 bps with a 0.5% floor.

MKS is an Andover, Mass.-based provider of technology solutions to semiconductor manufacturing, electronics and packaging, and specialty industrial applications.

Loan indices rise

In other news, IHS Markit’s iBoxx loan indices were stronger on Wednesday, with the Leveraged Loan indexes (MiLLi) closing out the day up 0.02% and the Liquid Leveraged Loan indices (LLLi) closing out the day up 0.02%.

Month to date, the MiLLi is up 1.03% and year to date it is up 9.99%, and the LLLi is up 0.98% month to date and up 9.48% year to date.

Average secondary market bids in the U.S. on Wednesday were 93.17, up 1.42% year to date.

According to the IHS Markit data, some of the top advancers on Wednesday were Air Methods’ April 2017 covenant-lite term loan B at 28.9, up from 27.75, Mallinckrodt’s June 2022 covenant-lite term loan at 73.36, up from 72.63, and Mad Engine’s June 2021 covenant-lite term loan at 70.88, up from 70.3.

Some top decliners on Wednesday were Packers Sanitation Services/PSSI’s March 2021 covenant-lite term loan at 61.21, down from 63.25, Tortoise Investments’ January 2018 covenant-lite term loan at 39.63, down from 40.55, and Avison Young’s January 2019 covenant-lite term loan at 39.57, down from 40.29.

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