W.R. Grace, Western Dental, Wahoo, RealPage, Unified Women’s break; Parexel, PetVet updated

By Sara Rosenberg

New York, Aug. 11 – W.R. Grace & Co. downsized its term loan B, firmed pricing at the low end of talk and adjusted the issue price, and Western Dental (Premier Dental Services Inc.) lowered the spread and revised the original issue discount on its term loan B, and added a delayed-draw term loan to the transaction, and then these deals freed to trade on Wednesday.

Also, before breaking for trading, Wahoo Fitness Holdings LLC widened spread, Libor floor and original issue discount on its term loan B and extended the call protection, RealPage Inc. firmed the issue price on its add-on first-lien term loan B at the tight end of talk, and Unified Women’s Healthcare LP set the original issue discount on its incremental first-lien term loan at the tight end of guidance.

In more happenings, Parexel firmed pricing on its first-lien term loan at the low side of guidance and removed one step-down, and PetVet Care Centers LLC increased the size of its incremental first-lien term loan B-3.

Furthermore, AIT Worldwide Logistics revised the original issue discount on its add-on first-lien term loan B, and Greatbatch Ltd. (Integer) joined this week’s primary calendar.

W.R. Grace changes

W.R. Grace scaled back its term loan B due 2028 to $1.25 billion from $1.45 billion, finalized the spread at Libor plus 375 basis points, the low end of the Libor plus 375 bps to 400 bps talk, and revised the original issue discount to 99.75 from talk in the range of 99 to 99.5, according to a market source.

The term loan still has two 25 bps step-downs based on leverage, a 0.5% Libor floor and 101 soft call protection for six months.

JPMorgan Chase Bank, BNP Paribas Securities Corp., Deutsche Bank Securities Inc., Citigroup Global Markets Inc., HSBC Securities (USA) Inc. and TD Securities (USA) LLC are leading the deal.

With the term loan downsizing, the company upsized its senior notes offering to $1.155 billion from $955 million.

W.R. Grace hits secondary

On Wednesday, W.R. Grace’s term loan B broke for trading, with levels quoted at par ¼ bid, par ¾ offered, another source added.

The new debt will be used to help fund the acquisition of the company by Standard Industries Holdings Inc. for $70.00 per share in cash. The transaction is valued at about $7 billion.

W.R. Grace will operate as a standalone company within the portfolio of Standard Industries Holdings.

Closing is expected in the fourth quarter, subject to customary conditions, including approval by W.R. Grace shareholders and the receipt of regulatory approvals.

W.R. Grace is a Columbia, Md.-based specialty chemical company. Standard Industries Holdings is a New York-based industrial company.

Western Dental reworked, trades

Western Dental trimmed pricing on its $490 million seven-year term loan B to Libor plus 450 bps from Libor plus 475 bps and adjusted the original issue discount to 99.5 from 99, while leaving the 0.75% Libor floor and 101 soft call protection for six months unchanged, a market source said.

Also, the company added a $50 million delayed-draw term loan to its capital structure with a ticking fee of half the spread from days 46 to 90 and the full spread thereafter, the source continued. Funding of the delayed-draw loan is subject to an incurrence ratio test of 4.25x.

Recommitments were due at 3 p.m. ET on Wednesday and the term loan B began trading later in the day, with levels quoted at 99 5/8 bid, par offered, another source added.

KKR Capital Markets is the left lead on the deal that will be used to refinance existing term loans, and the delayed-draw term loan is available for general corporate purposes and future acquisitions.

Western Dental is an Orange, Calif.-based dental services organization.

Wahoo revised, frees

Wahoo Fitness lifted pricing on its $225 million seven-year term loan B (B2/B+) to Libor plus 575 bps from talk in the range of Libor plus 525 bps to 550 bps, changed the Libor floor to 1% from 0.5%, widened the original issue discount to 97 from 99, extended the 101 soft call protection to one year from six months and made some modifications to documentation, a market source remarked.

The term loan has amortization of 2.5% per annum and a 5x total net leverage covenant.

In the afternoon, the term loan B broke for trading, with levels quoted at 97 bid, 98 offered, a trader added.

RBC Capital Markets is the left lead on the deal that will be used to help fund the buyout of the company by Rhone Group and to add cash to the balance sheet. Wahoo’s current investor, Norwest Equity Partners, will continue to own a minority investment in the company.

Closing is expected in the third quarter.

Pro forma for the transaction, total gross and net leverage will be 2.9x and 2.5x, respectively.

Wahoo is an Atlanta-based provider of fitness technology for indoor cycling and endurance training.

RealPage firms, breaks

RealPage finalized the original issue discount on its fungible $290 million add-on first-lien term loan B (B2/B/B+) due April 2028 at 99, the tight end of the 98.5 to 99 talk, according to a market source.

Pricing on the add-on term loan is Libor plus 325 bps with a 25 bps step-down at first-lien net leverage of 4.6x and a 0.5% Libor floor, in line with the existing first-lien term loan, and the debt has 101 soft call protection until October.

The add-on term loan freed to trade during the session, with levels quoted at 99 3/8 bid, another source added.

Goldman Sachs Bank USA is leading the deal that will be used to support the acquisition of G5 Search Marketing Inc., a Bend, Ore.-based pure-play provider of digital marketing, advertising and analytics solutions to the real estate sector.

Closing is expected in the third quarter, subject to customary conditions.

Thoma Bravo is the sponsor.

RealPage is a Richardson, Tex.-based provider of software and data analytics to the real estate industry.

Unified updated, trades

Unified Women’s Healthcare firmed the original issue discount on its fungible $130 million incremental first-lien term loan due Dec. 18, 2027 at 99.5, the tight end of the 99 to 99.5 talk, a market source said.

The incremental term loan is priced at Libor plus 425 bps with a 0.75% Libor floor.

Commitments were due at noon ET on Wednesday and the incremental term loan started trading in the afternoon, with levels quoted at 99¾ bid, par 1/8 offered, another source added.

Barclays, Credit Suisse Securities (USA) LLC, RBC Capital Markets and Antares Capital are leading the deal that will be used to fund the acquisition of Women’s Health USA, an Avon. Conn.-based provider of value-based care and practice management services.

Unified Women’s Healthcare is a Boca Raton, Fla.-based practice management platform in women’s health care.

Parexel tweaked

In other news, Parexel set the spread on its $2.7 billion seven-year first-lien term loan (B1/B) at Libor plus 350 bps, the low end of the Libor plus 350 bps to 375 bps talk, removed one of two 25 bps leverage-based step-downs so that there is now only one 25 bps step-down at 4.4x first-lien net leverage, and revised the MFN to 50 bps with a 12-month sunset from 100 bps with a six-month sunset, according to a market source.

As before, the term loan has a 0.5% Libor floor, an original issue discount of 99.5, 101 soft-call protection for six months, and a ticking fee of half the margin from days 46 to 90 and the full margin thereafter.

The company’s $4.1 billion of credit facilities also include a $500 million revolver (B1/B) and a $900 million privately placed second-lien term loan.

Goldman Sachs Bank USA, Barclays, UBS Investment Bank, Jefferies LLC, BofA Securities Inc., Credit Suisse Securities (USA) LLC, BNP Paribas Securities Corp., Morgan Stanley Senior Funding Inc., Mizuho and RBC Capital Markets are leading the deal that will help fund the $8.5 billion buyout of the company by EQT and Goldman Sachs Asset Management from Pamplona Capital Management LP.

Parexel is a Durham, N.C.-based biopharmaceutical services company.

PetVet upsizes

PetVet raised its fungible incremental first-lien term loan B-3 (B2/B) due February 2025 to $275 million from $250 million and accelerated the commitment deadline to 10 a.m. ET on Thursday from 4 p.m. ET on Thursday, a market source remarked.

Pricing on the incremental term loan is Libor plus 350 bps with a 0.75% Libor floor, in line with existing term loan B-3 pricing.

The incremental term loan is talked with an original issue discount of 99.265.

Jefferies LLC and KKR Capital Markets are leading the deal that will be used to finance the company’s acquisition pipeline, and the funds from the upsizing will add cash to the balance sheet for future acquisitions and general corporate purposes.

PetVet is a Westport, Conn.-based operator of general practice and specialty veterinary hospitals for companion animals.

AIT tightens OID

AIT Worldwide Logistics moved the original issue discount on its fungible $50 million add-on first-lien term loan B due April 6, 2028 to 99.75 from talk in the 99.5 area, a market source said.

Like the existing term loan B, the add-on term loan is priced at Libor plus 475 bps with a 0.75% Libor floor and has 101 soft call protection until Oct. 6, 2021.

Allocations went out on Wednesday.

Goldman Sachs Bank USA is leading the deal that will be used to repay revolver borrowings and for general corporate purposes.

The Jordan Co. is the sponsor.

AIT Worldwide is an Itasca, Ill.-based non-asset based third party logistics platform, providing an integrated suite of global, end-to-end supply chain services.

Greatbatch on deck

Greatbatch will hold a lender call at 1 p.m. ET on Thursday to launch a $350 million seven-year senior secured covenant-lite term loan B, according to a market source.

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

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

Wells Fargo Securities LLC is the left lead on the deal that will be used to refinance existing debt.

Greatbatch is a Plano, Tex.-based medical device company.

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