Vertiv, Indicor, XPO, Flexera, Alliant, Authentic Brands break; BMC, BroadStreet revised

By Sara Rosenberg

New York, Dec. 7 – Vertiv Group Corp. firmed pricing on its term loan B at the high end of guidance, Indicor LLC finalized the issue price on its U.S. and euro term loans at the tight end of talk, and XPO Inc. modified the issue price on its first-lien term loan B, and then these deals freed to trade on Thursday.

Also, Flexera Software LLC set the spread on its incremental first-lien term loan at the low end of talk and updated the original issue discount before breaking for trading, and deals from Alliant Holdings Intermediate LLC and Authentic Brands Group (ABG Intermediate Holdings 2 LLC) surfaced in the secondary market as well.

In more happenings, BMC Software upsized its U.S. and euro term loans two times, firmed spreads at the low end of guidance, added pricing step-downs and tightened the original issue discount on both tranches, and BroadStreet Partners Inc. increased the size of its incremental add-on term loan B-3 in the morning and then again in the afternoon.

Additionally, R1 RCM Inc., Sundyne (Star US Bidco LLC), HighTower Holding LLC and Marlink Group (Venga Finance) released price talk with launch, and Forefront Dermatology (Dermatology Intermediate Holdings III Inc.) and Medallion Midland Acquisition LP joined this week’s new issue calendar.

Vertiv finalized, frees

Vertiv Group set pricing on its $2.123 billion senior secured covenant-lite term loan B (Ba3/BB) due March 2027 at SOFR plus 250 bps, the high end of the SOFR plus 225 bps to 250 bps talk, according to a market source.

The term loan still has a 0% floor, ARRC CSA of 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate, a par issue price and 101 soft call protection for six months.

On Thursday, the term loan began trading, with levels quoted at par 1/8 bid, par ½ offered, a trader added.

Citigroup Global Markets Inc., JPMorgan Chase Bank, BofA Securities Inc. and Goldman Sachs Bank USA are leading the deal that will be used to reprice an existing term loan B due March 2027 down from SOFR+ARRC CSA plus 275 bps with a 0% floor.

Closing is expected on Wednesday.

Vertiv is a Westerville, Ohio-based provider of critical digital infrastructure and continuity solutions.

Indicor updated, breaks

Indicor firmed the issue price on its roughly $1.224 billion first-lien term loan Nov. 22, 2029 and roughly €299 million first-lien term loan Nov. 22, 2029 at par, the tight end of the 99.75 to par talk, a market source said.

The U.S. term loan is still priced at SOFR plus 400 bps with a 0.5% floor, the euro term loan is still priced at Euribor plus 450 bps with a 0% floor, and both loans still have 101 soft call protection for six months.

During the session, the U.S. term loan broke for trading, with levels quoted at par 1/8 bid, par ¼ offered, another source added.

UBS Investment Bank, BNP Paribas Securities Corp., RBC Capital Markets, BMO Capital Markets, Mizuho, TD Securities and Santander are leading the deal, with UBS the left lead on the U.S. loan and BNP left on the euro loan. UBS is the administrative agent.

The loans will be used to reprice an existing U.S. term loan down from SOFR plus 450 bps with a 0.5% floor and an existing euro term loan down from Euribor plus 500 bps with a 0% floor.

Indicor is a diversified industrial solutions company providing specialized, mission-critical products for industrial manufacturers.

XPO tweaked, trades

XPO tightened the issue price on its $400 million senior secured first-lien term loan B (Ba1/BBB-/BBB-) due February 2031 to par from talk in the range of 99.5 to 99.75, a market source remarked.

The term loan, which is expected to close in mid-December, is still priced at SOFR plus 200 bps with a 0% floor, and still has 101 soft call protection for six months.

Recommitments were due at noon ET on Thursday and the term loan freed to trade in the afternoon, with levels quoted at par ¼ bid, par ¾ offered, another source added.

Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc. and Credit Agricole are leading the deal that will be used with $585 million of senior notes to fund the potential acquisition of certain real property assets of Yellow Corp. and/or repay amounts outstanding under a bridge facility, to refinance 6¼% senior unsecured notes due 2025, for general corporate purposes, and to pay fees, costs and expenses.

At auctions held on Nov. 28, XPO was selected as the successful bidder for 28 service centers of Yellow Corp. for an aggregate purchase price of $870 million.

XPO is a Greenwich, Conn.-based provider of freight transportation services.

Flexera revised, frees

Flexera Software firmed pricing on its $425 million incremental first-lien term loan (B1/B-) due March 2028 at SOFR plus 375 bps, the low end of the SOFR plus 375 bps to 400 bps talk, and set the original issue discount at 99.54, including a 50 bps ticking fee upon allocation, versus initial talk in the range of 98.5 to 99.04, according to a market source.

The incremental term loan still has a 0.75% floor, and CSA of 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate, and ticking fees of half the spread from days 61 to 90 and the full spread thereafter.

The incremental term loan broke for trading in the afternoon, with levels quoted t 99 5/8 bid, 99 7/8 offered, another source added.

Jefferies LLC, Barclays, UBS Investment Bank, Goldman Sachs Bank USA and Mizuho are leading the deal that will be used with equity to fund an acquisition.

Flexera is an Itasca, Ill.-based provider of SaaS-based IT management solutions that enable enterprises to accelerate digital transformation and multiply the value of their technology investments.

Alliant hits secondary

Alliant Holdings’ $2,377,124,282 senior secured covenant-lite first-lien term loan B-6 (B2/B) due Nov. 6, 2030 began trading during the session, with levels quoted at par 1/8 bid, par 3/8 offered, a market source remarked.

Pricing on the term loan B-6 is SOFR plus 350 bps with a 0.5% floor and it was issued at par. The debt has 101 soft call protection for six months.

During syndication, the issue price on the term loan was revised from 99.75.

Morgan Stanley Senior Funding Inc., JPMorgan Chase Bank, StonePoint, BofA Securities Inc., Capital One, Fifth Third, Goldman Sachs Bank USA, KKR Capital Markets, Macquarie Capital (USA) Inc., RBC Capital Markets and Truist Securities are leading the deal that will be used with $750 million of senior secured notes to refinance/amend and extend an existing term loan B-4 due 2027 and an existing term loan B-5 due 2027.

Closing is expected during the week of Dec. 11.

Alliant is a Newport Beach, Calif.-based specialty insurance brokerage firm.

Authentic Brands breaks

Authentic Brands’ $1.696 billion term loan due Dec. 21, 2028 emerged in the secondary market as well, with levels quoted at par ¼ bid, par 5/8 offered, a market source said.

Pricing on the term loan is SOFR+CSA plus 350 bps with a 0% floor and it was issued at par. CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

Proceeds will be used to reprice an existing term loan B-2 due Dec. 21, 2028 down from SOFR plus 400 bps with a 0% floor, and combination of the tranche with the company’s existing term loan B-1 due Dec. 21, 2028 that is currently priced at SOFR+CSA (10/15/25) plus 350 bps with a 0% floor, resulting in a new total term loan B-1 size of $3.35 billion.

The combined term loan will have 101 soft call protection for six months.

BofA Securities Inc. is the left lead on the deal.

Authentic Brands is a New York-based brand development, marketing and entertainment company.

BMC reworked

BMC Software raised its U.S. term loan B due December 2028 to $3.09 billion from a revised amount of $2.75 billion and an initial size of $2 billion, and firmed pricing at SOFR plus 425 basis points, the low end of the SOFR plus 425 bps to 450 bps talk, according to a market source.

The company also upsized its euro term loan B due December 2028 to €1.5 billion ($1.617 billion equivalent) from a revised amount of €1.4 billion ($1.507 billion equivalent) and an initial size of $1 billion equivalent, and set pricing at Euribor plus 450 bps, the low end of the Euribor plus 450 bps to 475 bps talk.

Furthermore, both term loans (B1/B-) saw the addition of a 25 bps step-down at 0.5x inside closing date net leverage and a 25 bps step-down upon consummation of a qualifying initial public offering, and the original issue discount on both loans was revised to 99 from 98.5, the source continued.

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

BMC readies allocations

Books for BMC’s term loans closed at 12:30 p.m. ET on Thursday and allocations are expected on Friday morning (ET), the source added.

Goldman Sachs Bank USA, KKR Capital Markets, Macquarie Capital, Mizuho, Morgan Stanley Senior Funding Inc., UBS Investment Bank, Barclays, BNP Paribas Securities Corp., Citigroup Global Markets Inc., HSBC Securities, Jefferies LLC, RBC Capital Markets and Sumitomo Mitsui are leading the deal that will be used to amend and extend a portion of the company’s existing $3.038 billion term loan B due October 2025 and $1.634 billion equivalent euro term loan B due October 2025.

KKR is the sponsor.

BMC is a Houston-based provider of IT software solutions.

BroadStreet upsized

BroadStreet Partners raised its fungible incremental add-on term loan B-3 due January 2029 to $350 million from a revised amount of $300 million and an initial size of $100 million, while keeping the original issue discount at 99.75, a market source remarked.

Pricing on the add-on term loan B-3, as well as on the repricing of the company’s existing $933 million term loan B-3 due January 2029, remained at SOFR plus 375 bps with a 0% floor, and the repricing is still offered with a par issue price.

The total $1.283 billion term loan B-3 has 101 soft call protection for six months.

Commitments continued to be due at 5 p.m. ET on Thursday, the source added.

RBC Capital Markets is the left lead on the deal.

The add-on term loan will be used to repay revolver borrowings and to add cash to the balance sheet, and the repricing will take the existing term loan down from SOFR plus 400 bps with a 0% floor.

OTPP, Century Equity and Penfund are the sponsors.

BroadStreet is a Columbus, Ohio-based insurance broker.

R1 RCM guidance

R1 RCM held its lender call on Thursday morning and announced talk on its non-fungible $500 million incremental senior secured first-lien term loan B (Ba3/B+/BBB-) due June 2029 at SOFR plus 325 bps to 350 bps with a 0% floor, an original issue discount of 98.5 and 101 soft call protection for six months, a market source said.

The incremental term loan has a ticking fee of half the margin from days 46 to 90 and the full margin thereafter, the source added.

Commitments are due at 5 p.m. ET on Dec. 14.

JPMorgan Chase Bank, BofA Securities Inc. and Barclays provided the debt commitment. BofA Securities is the administrative agent.

The term loan will be used with borrowings under the company’s existing revolver and cash on hand to fund the acquisition of Acclara, a provider of revenue cycle management solutions to the health care industry, from Providence for $675 million in cash and warrants to purchase 12.2 million shares of R1 RCM stock.

Closing is expected in early 2024, subject to customary conditions.

R1 RCM is a Murray, Utah-based provider of technology-driven solutions that transform the patient experience and financial performance of health care providers.

Sundyne shops add-on

Sundyne launched during the session a fungible $150 million add-on senior secured covenant-lite first-lien term loan B due March 2027 talked with an original issue discount of 99.27, according to a market source.

Pricing on the add-on term loan is SOFR+10 bps CSA plus 425 bps with a 1% floor.

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

Morgan Stanley Senior Funding Inc. is the left lead on the deal that will be used to refinance the company’s existing second-lien term loan due 2028, to fund a shareholder distribution, and to pay related fees and expenses.

Sundyne is an Arvada, Colo.-based designer and manufacturer of mission critical pumps and compressors.

HighTower holds call

HighTower held a lender call at noon ET, launching a fungible $150 million add-on term loan B (B2) due April 2028 with original issue discount talk of 99.03, a market source remarked.

Pricing on the add-on term loan is SOFR+CSA plus 400 bps with a 0.75% 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 has 101 soft call protection for six months, the source said.

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

JPMorgan Chase Bank is leading the deal that will be used to repay some revolver borrowings and for general corporate purposes, including acquisition activity.

HighTower is a Chicago-based registered investment adviser that owns and provides a suite of mission critical services to independent advisory practices.

Marlink launches

Marlink Group launched a fungible $50 million incremental first-lien term loan B due June 29, 2029 talked with an original issue discount of 97.75 to 98, a market source said.

Pricing on the incremental term loan is SOFR+CSA plus 475 bps with a 0.75% floor, in line with existing term loan pricing. CSA is ARRC standard of 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

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

BofA Securities Inc. and KKR Capital Markets are leading the deal that will be used to repay revolver borrowings and to pay transaction fees and expenses.

Marlink is a provider of end-to-end managed smart network and IT services solutions to maritime, enterprise and government customers in remote places.

Forefront on deck

Forefront Dermatology set a bank meeting for 10 a.m. ET on Friday to launch a non-fungible $100 million incremental first-lien term loan due April 2, 2029, according to a market source.

The incremental term loan has 101 soft call protection for six months, the source said.

UBS Investment Bank is leading the deal that will be used to repay revolver borrowings and to fund acquisitions under letters of intent.

Partners Group is the sponsor.

Forefront Dermatology is a Manitowoc, Wis.-based dermatology physician practice.

Medallion joins calendar

Medallion Midland scheduled a lender call for 11 a.m. ET on Friday to launch a roughly $822 million first-lien term loan due Oct. 18, 2028, a market source said.

The term loan has 101 soft call protection for six months, the source added.

Jefferies LLC is leading the deal that will be used to reprice an existing roughly $822 million first-lien term loan.

Medallion Midland is a crude oil gathering/intra-basin transport system in the core of the Midland Basin of the Permian.

Arcis Golf allocates

In other news, Arcis Golf LLC allocated its $495 million covenant-lite term loan B (B2/B+) due November 2028, according to a market source.

Pricing on the term loan is SOFR+CSA plus 375 bps with a 0.5% floor and it was issued at par. 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 term loan has 101 soft call protection for six months.

Deutsche Bank Securities Inc., JPMorgan Chase Bank and Wells Fargo Securities LLC are leading the deal that will be used to reprice an existing term loan B due November 2028 down from SOFR+ARRC CSA plus 425 bps with a 0.5% floor.

Arcis is a Dallas-based owner and operator in the U.S. golf market with 31 private and 37 daily fee clubs.

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