Midwest Vet, ImageFirst free up; TKC tweaked; Cable One, Cabinetworks, Drive, Ahead set talk

By Sara Rosenberg

New York, April 26 – Midwest Veterinary Partners LLC’s first-lien term loan broke for trading on Monday, with levels quoted above its original issue discount, and ImageFirst Holdings LLC’s first-lien term loan debt surfaced in the secondary market too.

Meanwhile, in the primary market, TKC Holdings Inc. reduced the size of its first-lien term loan in favor of a larger bond offering.

Also, Cable One Inc., Cabinetworks Group, Drive Chassis Holdco LLC, Ahead DB Holdings LLC and Greystone Select Financial LLC released price talk with launch, and Digital Media Solutions LLC and USIC Holdings Inc. joined this week’s new issue calendar.

Midwest Veterinary breaks

Midwest Veterinary Partners’ $340 million seven-year first-lien term loan (B2/B-) began trading on Monday, with levels quoted at 99¾ bid, par ½ offered, according to a market source.

Pricing on the first-lien term loan is Libor plus 400 basis points 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.

The company’s $525 million of senior secured credit facilities also include a $20 million five-year revolver (B2/B-), a $75 million privately placed delayed-draw first-lien term loan (B2/B-) with an 18-month commitment period and a $90 million privately placed eight-year second-lien term loan.

Jefferies LLC and Golub Capital are leading the deal that will be used to refinance the company’s existing debt and place cash on the balance sheet to fund near-term letters of intent pipeline.

Midwest Veterinary, doing business as Mission Veterinary Partners, is a Novi, Mich.-based network of general practice animal hospitals.

ImageFirst hits secondary

ImageFirst’s $220 million funded covenant-lite first-lien term loan and $50 million delayed-draw covenant-lite first-lien term loan freed to trade as well, with levels quoted at 99¾ bid, par ¼ offered, a market source remarked.

Pricing on the term loan debt is Libor plus 450 bps with a 0.75% Libor floor and it was sold at an original issue discount of 99.5. The term loan has 101 soft call protection for six months, and the delayed-draw term loan has a ticking fee of half the margin from days 30 to 60 and the full margin thereafter.

During syndication, the funded term loan was upsized from $210 million, the discount was tightened from 99, the delayed-draw ticking fee was revised and a quarterly lender calls requirement was added.

The company’s $320 million of credit facilities (B3/B) also include a $50 million revolver.

Antares Capital and KeyBanc Capital Markets are leading the deal that will be used to refinance existing first-lien credit facilities.

ImageFirst, a Calera Capital portfolio company, is a King of Prussia, Pa.-based provider of outsourced laundry and textile rental services with a focus on outpatient and specialty health care.

TKC downsizes

Switching to the primary market, TKC Holdings scaled back its seven-year first-lien term loan to $925 million from $1.125 billion and lifted its senior unsecured notes offering to $700 million from $500 million, according to a market source.

Talk on the term loan was unchanged at Libor plus 475 bps to 500 bps with a 0.75% Libor floor, an original issue discount of 98.5 and 101 soft call protection for six months.

The company’s now $975 million of credit facilities also include a $50 million five-year revolver.

Commitments remain due at 2 p.m. ET on Wednesday, the source added.

Jefferies LLC is leading the deal that will be used to refinance the company’s existing capital structure.

TKC is a St. Louis-based provider of commissary, food service and related technology products to the corrections industry.

Cable One guidance

Cable One launched on its Monday afternoon call its $600 million seven-year covenant-lite term loan B-4 (Ba2/BB+) at talk of Libor plus 200 bps to 225 bps with a 0% Libor floor and an original issue discount of 99.5, a market source said.

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

Commitments are due at noon ET on April 30.

Wells Fargo Securities LLC, JPMorgan Chase Bank, BofA Securities Inc., Credit Suisse Securities (USA) LLC, TD Securities (USA) LLC, Truist and U.S. Bank are leading the deal that will be used to repay the $589 million term loan B that can be assumed with the purchase of Hargray Communications, a regional communications provider, to pay related fees and expenses and for general corporate purposes.

In February, the Phoenix-based broadband communications provider announced an agreement to purchase the roughly 85% of Hargray that it does not already own. The transaction implies a $2.2 billion total enterprise value for 100% of the equity interests of Hargray on a debt-free and cash-free basis.

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

Cabinetworks launches

Cabinetworks Group launched a $1.4 billion term loan talked at Libor plus 375 bps to 400 bps with a 0.5% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months, according to a market source.

Commitments are due on May 6, the source added.

BofA Securities Inc., Citigroup Global Markets Inc., Barclays, Deutsche Bank Securities Inc., Goldman Sachs Bank USA, KKR Capital Markets, BMO Capital Markets, Jefferies LLC and RBC Capital Markets are leading the deal that will be used with $550 million of senior notes and equity to fund the buyout of the company by Platinum Equity from American Industrial Partners, GIC and other equity holders.

Closing is expected this quarter, subject to customary conditions.

Cabinetworks is an Ann Arbor, Mich.-based manufacturer and distributor of kitchen and bath cabinets.

Drive Chassis holds call

Drive Chassis hosted a lender call at 2:30 p.m. ET, launching an $825 million senior secured covenant-lite second-lien term loan (Caa1/B) due April 10, 2026 talked at Libor plus 700 bps to 725 bps with a 25 bps step-down when total secured net leverage is less than or equal to 4.75x, a 0% Libor floor, a par issue price and 101 hard call protection until April 10, 2022, a market source remarked.

Citigroup Global Markets Inc. is leading the deal that will be used to reprice an existing second-lien term loan down from Libor plus 825 bps with a 0% Libor floor and made some modifications to covenants.

Commitment and consents are due at noon ET on Friday, the source added.

Closing is expected on May 5.

Drive Chassis is a Charlotte, N.C.-based provider of chassis equipment to the intermodal transportation industry.

Ahead DB sets talk

Ahead DB came out with talk of Libor plus 400 bps to 425 bps with a 0.75% Libor floor, a par issue price and 101 soft call protection for six months on its roughly $631 million first-lien term loan (B1/B+) that launched with a call in the afternoon, according to a market source.

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

RBC Capital Markets, Barclays, Deutsche Bank Securities Inc., KKR Capital Markets, Macquarie Capital (USA) Inc., Truist, Regions Bank, Credit Suisse Securities (USA) LLC, TD Securities (USA) LLC and PNC Bank are leading the deal.

Proceeds will be used to reprice an existing first-lien term loan, which is being paid down from $785 million with some proceeds from a $400 million senior notes offering. Current pricing on the first-lien term loan is Libor plus 500 bps with a 1% Libor floor and lenders will be paid out at the existing 101 soft call premium.

Centerbridge Partners and Berkshire Partners are the sponsors.

Ahead DB is a Chicago-based IT solutions provider of enterprise hardware and software.

Greystone proposed terms

Greystone Select Financial held a call during the session to launch a $325 million term loan B (Ba2) talked at Libor plus 475 bps to 500 bps with a 0.75% Libor floor, an original issue discount of 98.5 to 99 and 101 soft call protection for six months, a market source said.

Commitments are due at 5 p.m. ET on May 6, the source added.

JPMorgan Chase Bank is leading the deal that will be used to refinance existing debt and for general corporate purposes.

Greystone is a New York-based commercial real estate finance and investment company.

Digital Media on deck

Digital Media Solutions set a lender call for at 2 p.m. ET on Tuesday to launch $275 million of credit facilities (B2/B), according to a market source.

The facilities consist of a $50 million five-year revolver and a $225 million seven-year term loan B, the source said.

Truist and Fifth Third are leading the deal that will be used to refinance existing debt.

Digital Media is a Clearwater, Fla.-based adtech company.

USIC joins calendar

USIC Holdings will hold a lender call at 1 p.m. ET on Tuesday to launch $1.29 billion of term loans, a market source remarked.

The debt is split between a $955 million first-lien term loan and a $335 million second-lien term loan, the source added.

Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc., BofA Securities Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., MUFG, Antares Capital, ING and Citizens are leading the deal that will be used to refinance an existing first-lien term loan due 2023 and an existing second-lien term loan due 2024, and to fund a distribution to shareholders.

Partners Group is the sponsor.

USIC is an Indianapolis-based provider of underground utility locating services.

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