HUB, ClubCorp, ThoughtWorks, Heartland, Cable One, Pelican Products, Mastronardi free up

By Sara Rosenberg

New York, April 19 – HUB International Ltd. increased the size of its U.S. term loan B as the decision was made to cancel plans for a Canadian term loan B, firmed pricing at the tight side of talk, adjusted the issue price and broke for trading on Thursday.

Also, ClubCorp Holdings Inc. finalized the spread on its term loan B at the low end of talk and removed a pricing step-down, ThoughtWorks Inc. firmed pricing on its incremental term loan and repriced term loan at the wide side of talk and modified the ticking fee on the delayed-draw tranche, and Heartland Dental LLC set the spread on its term loans at the high end of talk, and then these deals freed up for trading as well.

Additionally, Cable One Inc. finalized the spread on its term loan B at the tight end of guidance before hitting the secondary market, and deals from Pelican Products Inc. and Mastronardi Produce broke too.

Furthermore, Samsonite International SA set the spread on its term loan B at the low end of talk and tightened the original issue discount, Ferro Corp. revised the issue price on its term loan B-2 and term loan B-3, and SRAM LLC set the spread on its term loan B at the low side of guidance.

In more happenings, Laird plc, Berlin Packaging LLC, Consolidated Energy Finance SA and Speedcast International Ltd. released price talk with launch, and Senneca Holdings, HydroChemPSC and USIC Holdings Inc. joined the near-term primary calendar.

HUB reworked

HUB International raised its U.S. seven-year covenant-light term loan B to $3.21 billion from $3.05 billion, firmed pricing at Libor plus 300 basis points, the low end of the Libor plus 300 bps to 325 bps talk, and changed the original issue discount to 99.75 from 99.5, according to a market source.

The U.S. term loan B still has a 25 bps step-down at 4.25 times first-lien net leverage, a 0% Libor floor and 101 soft call protection for six months.

With the U.S. term loan B upsizing, the company eliminated plans for a C$200 million seven-year covenant-light term loan B that was talked at CDOR plus 350 bps to 375 bps with a 0% floor, a discount of 99.5 and 101 soft call protection for six months, the source said.

The company’s $3.7 billion equivalent of senior secured credit facilities (B2/B) also include a $400 million five-year revolver and a C$130 million five-year revolver.

HUB surfaces in secondary

Commitments for HUB International’s term loan B were due at noon ET on Thursday and by late day the loan began trading with levels quoted at 100½ bid, 100¾ offered, a trader added.

Morgan Stanley Senior Funding Inc., Bank of America Merrill Lynch, Barclays, BMO Capital Markets Corp., Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Macquarie Capital (USA) Inc. and Nomura Securities International Inc. are leading the deal that will be used to repay existing revolver and term loan B borrowings, senior unsecured OpCo notes and senior contingent cash pay notes.

Closing is expected on Wednesday.

HUB is a Chicago-based insurance brokerage.

ClubCorp updated, trades

ClubCorp set pricing on its $1,151,000,000 senior secured covenant-light term loan B (B1/B+) due Sept. 18, 2024 at Libor plus 275 bps, the tight end of the Libor plus 275 bps to 300 bps talk, and removed the 25 bps step-down at net first-lien leverage of 3.25 times, while leaving the 0% Libor floor, par issue price and 101 soft call protection for six months unchanged, a market source remarked.

After terms finalized, the loan made its way into the secondary market and levels were seen at 100 1/8 bid, 100½ offered, a trader added.

Citigroup Global Markets Inc. is leading the deal that will be used to reprice an existing term loan down from Libor plus 325 bps with a 0% Libor floor.

Closing is expected on Friday.

ClubCorp is a Dallas-based owner and operator of private golf and country clubs and business, sports and alumni clubs.

ThoughtWorks revised

ThoughtWorks set the spread on its $70 million incremental first-lien term loan (B2) due Oct. 12, 2024 and repricing of its existing $200 million first-lien term loan (B2) due Oct. 12, 2024 at Libor plus 400 bps, the high end of the Libor plus 375 bps to 400 bps talk, a market source said.

Of the total incremental loan amount, $40 million will be funded and $30 million is delayed-draw, and the ticking fee on the delayed-draw piece was modified to half the spread from days 46 to 75 and the full spread thereafter, from half the spread from days 61 to 90, 75% of the spread from days 91 to 120 and the full spread thereafter, the source continued.

The term loans still have a 1% Libor floor and 101 soft call protection for six months, the incremental loan still has an original issue discount of 99.5, and the repricing still has a par issue price.

ThoughtWorks hits secondary

By mid-afternoon, ThoughtWorks’ debt freed to trade, with the repriced loan quoted at 100 1/8 bid, 100 5/8 offered, and the incremental term loan funded and delayed-draw strip quoted at 99 5/8 bid, a trader added.

Credit Suisse Securities, HSBC Securities (USA) Inc. and U.S. Bank are leading the deal.

The incremental loan will be used to fund retention payments, and the repricing will take the existing term loan down from Libor plus 450 bps with a 1% Libor floor.

ThoughtWorks is a Chicago-based software development and digital transformation consulting company.

Heartland finalized, frees up

Heartland Dental firmed pricing on its $1 billion seven-year covenant-light first-lien term loan and $150 million seven-year delayed-draw for two years covenant-light term loan at Libor plus 375 bps, the wide end of the Libor plus 350 bps to 375 bps talk, a market source remarked.

As before, the term loans have a 25 bps step-down at 4.5 times first-lien net leverage, a 0% Libor floor and an original issue discount of 99.5, and the delayed-draw term loan has a ticking fee of half the spread from days 31 to 60 and the full spread thereafter.

Also, the term loan has 101 soft call protection for six months.

The company’s $1,285,000,000 senior secured deal (B2/B-) includes a $135 million revolver as well.

Heartland Dental’s funded and delayed-draw term loan strip began trading on Thursday and levels were quoted at 100¼ bid, 100¾ offered, another source added.

Jefferies LLC, KKR Capital Markets, TD Securities (USA) LLC, BMO Capital Markets and Macquarie Capital are leading the deal that will be used to help fund the buyout of the Effingham, Ill.-based dental support organization by KKR from Ontario Teachers’ Pension Plan and other existing shareholders.

Closing is expected during the week of April 30.

Cable One firms, breaks

Cable One finalized pricing on its $496.3 million term loan B due May 2024 at Libor plus 175 bps, the low side of the Libor plus 175 bps to 200 bps talk, according to a market source.

The term loan continues to have a 0% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months.

Once terms firmed up, the loan emerged in the secondary market and levels were quoted at 100¼ bid, 100 5/8 offered, a trader added.

J.P. Morgan Securities LLC is leading the deal that will be used to reprice an existing term loan B down from Libor plus 225 bps with a 0% Libor floor.

Cable One is a Phoenix-based cable company.

Pelican starts trading

Pelican Products’ credit facilities began trading as well, with the $390 million seven-year covenant-light first-lien term loan B seen at 100¼ bid, 101 offered and the $110 million eight-year covenant-light second-lien term loan seen at par bid, 101 offered, according to a trader.

Pricing on the first-lien term loan is Libor plus 350 bps with a 0% Libor floor and it was sold at an original issue discount of 99.75. The debt has 101 soft call protection for six months.

The second-lien term loan is priced at Libor plus 775 bps with a 0% Libor floor and was issued at a discount of 99. This tranche has hard call protection of 102 in year one and 101 in year two.

During syndication, the first-lien term loan was upsized from $380 million, pricing was trimmed from Libor plus 375 bps, the 25 bps step-down at 3.2 times first-lien net leverage was removed and the discount was tightened from 99.5. Also, the second-lien term loan was downsized from $120 million and the MFN sunset was eliminated from the credit agreement.

Pelican getting revolver

Along with the first-and second-lien term loans, Pelican Products’ $530 million of senior secured credit facilities include a $30 million five-year ABL revolver priced at Libor plus 150 bps, subject to a grid, with a 0% Libor floor.

Morgan Stanley Senior Funding and Jefferies are leading the deal that will be used to refinance existing debt.

Closing is expected during the week of April 23.

Pelican Products is a Torrance, Calif.-based protective case and lighting equipment manufacturer.

Mastronardi tops OID

Mastronardi Produce’s $350 million seven-year covenant-light term loan B also broke, with levels quoted at 100½ bid, 101 offered, a trader remarked.

Pricing on the term loan is Libor plus 325 bps with a 0% Libor floor and it was sold at an original issue discount of 99.75. The loan has 101 soft call protection for six months.

During syndication, the term loan B was upsized from $330 million, the spread was cut from talk in the range of Libor plus 350 bps to 375 bps, and the discount was revised from 99.5.

Bank of America Merrill Lynch, BMO Capital Markets and Rabobank are leading the new senior secured credit facilities that will be used to refinance the company’s existing cash flow revolver, term loan A and other debt.

Mastronardi is a grower and distributor of greenhouse-grown produce to retailers.

Samsonite tweaked

Back in the primary market, Samsonite finalized pricing on its $665 million seven-year covenant-light term loan B (Ba1/BBB-) at Libor plus 175 bps, the low end of the Libor plus 175 bps to 200 bps talk, and moved the original issue discount to 99.875 from 99.75, according to a market source.

As before, the term loan has a 0% Libor floor and 101 soft call protection for six months.

Commitments were due at noon ET on Thursday, the source said.

Bank of America Merrill Lynch, HSBC Bank USA, Morgan Stanley Senior Funding and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to refinance an existing term loan B.

Samsonite is a Hong Kong-based manufacturer of bags and luggage.

Ferro tightens price

Ferro modified the issue price on its $235 million covenant-light term loan B-2 due February 2024 and $230 million covenant-light term loan B-3 due February 2024 to par from 99.75, a market source remarked.

As before, pricing on the term loans B-2 and B-3, as well as on a $355 million covenant-light term loan B-1 due February 2024, is Libor plus 225 bps with a 0% Libor floor, the term loan B-1 has a par issue price and all of the term loans have 101 soft call protection for six months.

Recommitments were due at 3 p.m. ET on Thursday and allocations are targeted for Friday, the source added.

Deutsche Bank Securities Inc. and PNC Bank are leading the $820 million of term loans (Ba3/BB-) that will be used to reprice an existing term loan B-1 down from Libor plus 250 bps with a 0.75% Libor floor, refinance the existing euro term loan and add cash to the balance sheet.

Ferro is a Mayfield Heights, Ohio-based functional coatings and color solutions provider that offers a portfolio of technology-based performance materials.

SRAM sets spread

SRAM firmed pricing on its $498 million term loan B (B+) due March 2024 at Libor plus 275 bps, the low end of the Libor plus 275 bps to 300 bps talk, and left the 1% Libor floor, par issue price and 101 soft call protection for six months intact, according to a market source.

J.P. Morgan Securities is leading the deal that will be used to reprice an existing term loan down from Libor plus 325 bps with a 1% Libor floor.

SRAM is a Chicago-based bicycle components company.

Laird reveals guidance

Laird held its bank meeting on Thursday morning and announced talk of Libor plus 400 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months on its $750 million seven-year first-lien term loan, a market source said.

The company’s $1,026,000,000 of credit facilities also include a $133 million revolver and a $143 million privately placed second-lien term loan.

Commitments are due on May 1, the source added.

Goldman Sachs Bank USA, Citigroup Global Markets, Bank of America Merrill Lynch, HSBC Securities, Lloyds and NatWest are leading the deal that will be used to help fund the buyout of the company by Advent International Corp. for 200 pence in cash per share. The transaction values the entire issued ordinary share capital of Laird at approximately £1 billion on a fully diluted basis.

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

Laird is a London-based provider of products and technology solutions used in network infrastructure, wireless connectivity, displays and industrial controls.

Berlin Packaging talk

Berlin Packaging came out with talk of Libor plus 325 bps to 350 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months on its $815 million 7.5-year covenant-light term loan B (B3/B) that launched with a morning lender call, according to a market source.

Commitments are due on May 3, the source said.

The company’s $1,245,000,000 of senior secured credit facilities also include a $75 million six-year revolver (B3/B) and a $355 million privately placed second-lien term loan.

Morgan Stanley Senior Funding, Goldman Sachs Bank USA and Jefferies are leading the deal that will be used to refinance existing debt and distribute a shareholder dividend.

Berlin Packaging is a Chicago-based hybrid packaging supplier.

Consolidated Energy launches

Consolidated Energy had its lender presentation in the morning, launching its $550 million seven-year covenant-light term loan B at talk of Libor plus 250 bps to 275 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, a market source remarked.

The company’s $750 million of senior secured credit facilities also include an up to $200 million revolver.

Commitments are due on May 3, the source added.

Morgan Stanley Senior Funding and J.P. Morgan Securities are the joint bookrunners on the deal and joint lead arrangers with Deutsche Bank Securities, SMBC and Credit Suisse Securities.

Proceeds will be used to refinance existing Methanol Holdings (Trinidad) Ltd. senior secured facilities.

Consolidated Energy is an acquirer and developer of companies that focus on alternative waste management and energy production.

Speedcast holds meeting

Speedcast revealed talk of Libor plus 250 bps to 275 bps with a 0% Libor floor and an original issue discount of 99.5 on its $425 million seven-year covenant-light first-lien term loan (Ba3/BB-) in connection with its afternoon bank meeting, according to a market source.

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

Commitments are due at 5 p.m. ET on May 2.

Credit Suisse Securities, Citigroup Global Markets, Credit Agricole, ING and Macquarie Capital are leading the deal that will be used to refinance existing debt.

Speedcast is an Australia-based provider of telecommunications managed services.

Senneca readies deal

Senneca Holdings will hold a bank meeting in New York on Tuesday to launch $355 million of first-lien credit facilities, split between a $40 million five-year revolver, a $240 million seven-year covenant-light first-lien term loan and a $75 million delayed-draw first-lien term loan with a two year draw-down period, a market source said.

The company is also getting a $100 million second-lien term loan and a $25 million delayed-draw second-lien term loan that have been privately placed, the source added.

Antares Capital is the lead arranger on the deal, and Golub Capital is a joint lead arranger on the first-lien debt.

The credit facilities will be used to help fund the buyout of the company by Kohlberg & Co.

Senneca is a Cincinnati-based provider of made-to-order specialty commercial door systems and enclosures.

HydroChemPSC on deck

HydroChemPSC set a lender call for noon ET on Monday to launch a repricing of its $459 million first-lien term loan, a market source remarked.

Goldman Sachs Bank USA is leading the deal.

HydroChemPSC is an industrial cleaning and specialty maintenance provider.

USIC joins calendar

USIC Holdings scheduled a lender call for 1 p.m. ET on Monday to launch a fungible $75 million add-on senior secured first-lien term loan and a repricing of its existing $666 million senior secured first-lien term loan, according to a market source.

Goldman Sachs Bank USA is leading the deal.

The add-on term loan will be used for mergers & acquisitions and for general corporate purposes.

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

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