Tallgrass Energy, PQ Corp., EyeCare Partners break; Gardner Denver changes emerge

By Sara Rosenberg

New York, Feb. 5 – Tallgrass Energy LP came to market on Wednesday morning with an incremental term loan, upsized the tranche and set the issue price at the tight end of talk in the afternoon, and then freed to trade before day’s end.

Also, PQ Corp. Holdings Inc. set the spread on its term loan B at the wide side of talk before breaking for trading, and EyeCare Partners LLC’s bank debt made its way into the secondary market as well.

In other news, Gardner Denver Inc. (Ingersoll-Rand Services Co.) reduced pricing on its term loans and revised original issue discount guidance.

Additionally, Zayo Group Holdings Inc., Informatica LLC, Savage Enterprises LLC, Evoqua Water Technologies (EWT Holdings III Corp.), Ineos Enterprises Holdings US Finco LLC and ZoomInfo all released price talk with launch, and Cole-Parmer Instrument Co. LLC and Dentalcorp Health Services ULC emerged with new deal plans.

Tallgrass launches, prices

Tallgrass Energy launched in the morning a fungible $300 million incremental first-lien term loan due March 11, 2026 with original issue discount talk of 98.875 to 99, and in the afternoon, the loan was upsized to $375 million and the discount firmed at 99, a market source remarked.

Pricing on the incremental term loan is Libor plus 475 basis points with a step-down to Libor plus 450 bps at 1.75x total net leverage and a 0% Libor floor, and the debt has 101 soft call protection for six months.

Commitments were due at 3:30 p.m. ET on Wednesday and shortly thereafter the debt broke for trading, with levels quoted at 99 1/8 bid, 99 5/8 offered, another source added.

Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Jefferies LLC, MUFG and Blackstone are leading the deal, which will be used to help fund the acquisition of the company by Blackstone Infrastructure Partners together with affiliates of Enagas, GIC, NPS and USS for $22.45 in cash per class A share.

Closing is expected in the second quarter, subject to customary conditions, including approval of the merger by holders of a majority of the outstanding class A and class B shares.

Tallgrass is a Leawood, Kan.-based growth-oriented midstream energy infrastructure company.

PQ updated, trades

PQ finalized pricing on its $947,497,500 seven-year senior secured covenant-lite term loan B (B1/BB-) at Libor plus 225 bps, the high end of the Libor plus 200 bps to 225 bps talk, according to a market source.

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

During the session, the term loan B freed to trade and levels were quoted at par 1/8 bid, par ˝ offered, another source added.

Citigroup Global Markets Inc. is leading the deal that will be used reprice and extend by two years an existing term loan. Credit Suisse Securities (USA) LLC is the administrative agent.

PQ is a Malvern, Pa.-based producer of specialty inorganic performance chemicals and catalysts.

EyeCare frees up

EyeCare Partners’ $925 million seven-year covenant-lite first-lien term loan (B2/B) began trading too, with levels quoted at par 1/8 bid, par 5/8 offered, a market source remarked.

Pricing on the first-lien term loan, which includes a $175 million delayed-draw piece, is Libor plus 375 bps with a 25 bps step-down at B2/B ratings with a stable outlook and a 0% Libor floor. The debt was sold at an original issue discount of 99.875 and has 101 soft call protection for six months. The delayed-draw term loan has a ticking fee of half the margin from days 46 to 90 and the full margin onwards.

The company’s $1.185 billion of credit facilities also include a $110 million revolver and a $150 million privately placed second-lien term loan.

During syndication, the first-lien term loan was upsized from $900 million by increasing the funded portion of the tranche, pricing was lowered from talk in the range of Libor plus 400 bps to 425 bps, the step-down was added and the discount was tightened from 99.5. Also, the second-lien term loan was downsized from $175 million.

EyeCare being acquired

Proceeds from EyeCare Partners’ credit facilities will be used to help fund its buyout by Partners Group, which is expected to close this quarter.

Credit Suisse Securities (USA) LLC, Macquarie Capital (USA) Inc., Barclays, Deutsche Bank Securities Inc., UBS Investment Bank and Nomura are leading the debt.

Current corporate ratings are B3/B.

EyeCare is a St. Louis-based eye care services provider.

Gardner tweaks deal

Back in the primary market, Gardner Denver cut pricing on its $1.9 billion term loan B at SpinCo Borrower and on its $928 million amended and extended term loan B at Gardner Denver Inc. to Libor plus 175 bps from Libor plus 200 bps, and on its $657 million equivalent (€602 million) amended and extended term loan B at Gardner Denver Inc. to Euribor plus 200 bps from Euribor plus 225 bps, a market source said.

Also, the original issue discount talk on all of the term loans was changed to a range of 99.75 to 99.875 from a range of 99.5 to 99.75, the source continued.

As before, the term loans have a 0% floor and 101 soft call protection for six months.

Commitments for the $3.485 billion equivalent of seven-year senior secured covenant-lite term loans (Ba2/BB+) are due at noon ET on Thursday, moved up from 5 p.m. ET on Thursday.

Gardner lead banks

Citigroup Global Markets Inc., KKR Capital Markets, Goldman Sachs Bank USA, HSBC, Mizuho, PNC Capital Markets, BMO Capital Markets, Credit Agricole, MUFG and Standard Chartered are leading Gardner Denver’s term loans.

Ingersoll Rand announced in April it will separate its industrial segment through a spin-off to shareholders and then combine it with Gardner Denver. Ingersol Rand’s HVAC and transport refrigeration assets, Trane Technologies, will then become a pure play leader in climate control solutions for buildings, homes and transportation.

Proceeds from the SpinCo term loan will be used to fund the $1.9 billion of cash proceeds due to Trane Technologies upon completion of the transaction.

Closing is expected on Feb. 28.

Gardner Denver is a Milwaukee, Wis.-based provider of mission-critical flow control and compression equipment and associated aftermarket parts, consumables and services.

Zayo proposed terms

Zayo Group disclosed price talk on its $5.06 billion equivalent of term loans (B1/B) in connection with its New York bank meeting on Wednesday, according to a market source. A bank meeting for European investors will take place at 7:30 a.m. ET in London on Thursday.

Talk on the $4,235,000,000 seven-year covenant-lite first-lien term loan is Libor plus 325 bps and talk on the $825 million euro equivalent seven-year covenant-lite first-lien term loan is Euribor plus 325 bps to 350 bps, the source said. Both loans are talked with a 0% floor, an original issue discount of 99.5 and 101 soft call protection for six months.

Commitments are due at 5 p.m. ET on Feb. 19 for the U.S. loan and at noon ET on Feb. 19 for the euro loan.

Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., SunTrust Robinson Humphrey Inc. and TD Securities (USA) LLC are leading the deal.

Zayo funding buyout

Proceeds from Zayo’s term loans will be used to help fund its acquisition by Digital Colony Partners and the EQT Infrastructure IV fund for $35.00 in cash per share in a transaction valued at $14.3 billion, including the assumption of $5.9 billion of net debt.

Closing is expected in the first half of this year, subject to customary conditions, including regulatory clearance and Zayo shareholder approvals.

Zayo is a Boulder, Colo.-based provider of mission-critical bandwidth to companies.

Informatica guidance

Informatica held its lender call and announced price talk on its $2.875 billion equivalent of credit facilities, according to a market source.

The $150 million revolver (B1) due April 2024 is talked at Libor plus 325 bps with a step-down to Libor plus 300 bps at 4.5x first-lien net leverage and a 0% Libor floor, the $1.725 billion seven-year covenant-lite first-lien term loan B (B1) and $525 million euro equivalent seven-year covenant-lite first-lien term loan B (B1) are talked at Libor/Euribor plus 350 bps with a 0% floor and a discount of 99.5, and the $475 million five-year covenant-lite second-lien term loan (Caa1) is talked at fixed rate of 7.5% with a discount of 99, the source said.

Included in the first-lien term loans is 101 soft call protection for six months and a springing maturity, and the second-lien term loan is non-callable for one year, then at 102 in year two and 101 in year three.

Commitments are due at noon ET on Feb. 19, the source added.

Nomura is leading the deal that will be used to refinance existing term loans and senior notes, to raise cash for general corporate purposes, and to pay related fees and expenses.

Informatica is a Redwood City, Calif.-based provider of enterprise cloud data management software and services.

Savage reveals talk

Savage Enterprises came out with talk of Libor plus 325 bps with a 0% Libor floor, a par issue price and 101 soft call protection for six months on the repricing of its existing first-lien term loan B (B1/BB) due Aug. 1, 2025 that launched with a call during the session, a market source said.

The term loan is currently sized at $885 million but will be paid down by $225 million with proceeds from the recently announced asset sale of the Savage Inland Marine tank barge fleet to Kirby Corp.

Commitments are due at 5 p.m. ET on Feb. 12, the source added.

Morgan Stanley Senior Funding Inc. is leading the deal that will reprice the existing term loan B down from Libor plus 400 bps.

Savage is a Salt Lake City-based supply chain provider.

Evoqua holds call

Evoqua Water Technologies surfaced in the morning with plans to hold a lender call at 2 p.m. ET to launch an $826 million first-lien term loan (B2/B) due December 2024 at talk of Libor plus 275 bps with a 0% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Commitments are due at noon ET on Feb. 12, the source added.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to reprice an existing first-lien term loan down from Libor plus 300 bps with a 1% Libor floor.

Evoqua is a Pittsburgh-based provider of mission critical water treatment solutions.

Ineos comes to market

Ineos Enterprises launched in the morning a roughly $450 million first-lien term loan B due Sept. 3, 2026 at talk of 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 Tuesday, the source added.

Barclays is the left lead on the deal that will be used to reprice an existing term loan B down from Libor plus 400 bps.

Ineos is a Switzerland-based producer of intermediate chemicals.

ZoomInfo repricing

ZoomInfo announced in the morning plans to hold a lender call at 1:30 p.m. ET to launch an $858,512,500 covenant-lite first-lien term loan B due February 2026 talked at Libor plus 400 bps with a step-down to Libor plus 375 bps following a qualified initial public offering, a 0% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Commitments are due at noon ET on Feb. 12, the source said.

Morgan Stanley Senior Funding Inc. is the left lead on the deal that will be used to reprice an existing first-lien term loan B down from Libor plus 450 bps.

ZoomInfo, formally known as DiscoverOrg LLC, is a Vancouver, Wash.-based provider of sales and marketing data.

Cole-Parmer on deck

Cole-Parmer Instrument set a lender call for 3 p.m. ET on Thursday to launch a $105 million incremental first-lien term loan due Nov. 4, 2026, a market source remarked.

Jefferies LLC is leading the deal that will be used to fund an acquisition.

Cole-Parmer is a Vernon Hills, Ill.-based provider of fluid handling, test & measurement, environmental and biosciences instrumentation and associated consumables.

Dentalcorp joins calendar

Dentalcorp Health Services scheduled a lender call for 4 p.m. ET on Thursday to launch a $75 million incremental first-lien term loan due June 6, 2025, according to a market source.

Jefferies LLC, CIBC and TD Securities (USA) LLC are leading the deal that will be used to fund closed and future acquisitions.

Dentalcorp is a dental support organization in Canada providing a full spectrum of dental services.

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