Cambium breaks; Triton, Win Waste, Watlow updated; PODS, Denali Water, SiteOne accelerated

By Sara Rosenberg

New York, March 16 – Cambium Learning Group Inc.’s add-on first-lien term loan B made its way into the secondary market on Tuesday, with levels quoted above its original issue discount.

Switching to the primary market, Triton Water Holdings Inc. increased the size of its first-lien term loan B, lowered the spread and set the issue price at the tight end of guidance, and Win Waste Innovations (Granite Acquisition Inc.) reduced pricing on its first-lien term loan.

Also, Watlow set the spread on its term loan B at the low end of talk, and PODS LLC, Denali Water Solutions LLC and SiteOne Landscape Supply accelerated the commitment deadlines for their loan transactions.

In addition, Autokiniton US Holdings Inc. and Orion Advisor Solutions (GT Polaris Inc.) details surfaced with launch, and Aegion Corp., Atlantic Power Corp. (Thermal Asset portfolio), Sinclair Television Group Inc. and Teneo joined this week’s primary calendar.

Cambium frees up

Cambium Learning Group’s fungible $350 million add-on first-lien term loan B (B3) due December 2025 broke for trading on Tuesday, with levels quoted at 99 7/8 bid, par 3/8 offered, a trader said.

Pricing on the add-on term loan is Libor plus 450 basis points with a 0.75% Libor floor, and the debt was sold at an original issue discount of 99.75. The add-on loan has 101 soft call protection through Sept. 21.

RBC Capital Markets, Deutsche Bank Securities Inc., Barclays, BMO Capital Markets, Macquarie Capital (USA) Inc. and KKR Capital Markets are leading the deal that will be used to refinance $348 million of existing second-lien term loans.

Pro forma for the transaction, the first-lien term loan will total $1.324 billion.

Cambium is a Dallas-based end-to-end provider of K-12 instructional and assessment solutions.

Triton revised

Meanwhile, in the primary market, Triton Water raised its seven-year covenant-lite first-lien term loan B (B1/B) to $2.55 billion from $1.8 billion, trimmed pricing to Libor plus 350 bps from Libor plus 375 bps and firmed the original issue discount at 99.5, the tight end of the 99 to 99.5 talk, according to a market source.

The term loan still has a 25 bps pricing step-down at 0.5x inside closing date first-lien net leverage and a 25 bps step-down upon the consummation of a qualifying initial public offering, a 0.5% Libor floor and 101 soft call protection for six months.

Recommitments were due at 5 p.m. ET on Tuesday and allocations are expected on Wednesday, the source added.

The company’s now $2.9 billion of senior secured credit facilities also include a $350 million ABL revolver.

Triton lead banks

Morgan Stanley Senior Funding Inc., BofA Securities Inc., Jefferies LLC, RBC Capital Markets, Mizuho and Credit Suisse Securities (USA) LLC are leading Triton Water’s credit facilities.

Proceeds will be used to help fund the buyout of Triton (Nestle Waters North America) by One Rock Capital Partners LLC and Metropoulos & Co. from Nestle SA for $4.3 billion.

The company also plans to issue $670 million of senior unsecured notes for the transaction. Plans for a $750 million senior secured notes offering were terminated as a result of the term loan upsizing.

Closing is expected in the Spring, subject to customary conditions.

Triton is a Stamford, Conn., provider of bottled water.

Win Waste flexes

Win Waste Innovations cut pricing on its $1 billion seven-year covenant-lite first-lien term loan to Libor plus 275 bps from Libor plus 325 bps, and left the 0.5% Libor floor, original issue discount of 99.5 and 101 soft call protection for six months unchanged, a market source remarked.

The company’s $1.4 billion of credit facilities (B1/B+) also include a $400 million revolver.

Commitments were due at 5 p.m. ET on Tuesday, the source added.

Credit Suisse Securities (USA) LLC, JPMorgan Chase Bank, Mizuho, MUFG, RBC Capital Markets, Deutsche Bank Securities Inc. and Truist are leading the deal that will be used to recapitalize the legacy Wheelabrator business, to refinance Tunnel Hill Partners debt, for general corporate purposes and to pay fees and expenses.

Win Waste is a vertically-integrated waste services provider.

Watlow updated

Watlow finalized pricing on its $515 million seven-year term loan B (B2/B) at Libor plus 400 bps, the low end of the Libor plus 400 bps to 425 bps talk, a market source said.

As before, the term loan has a 0.5% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

BMO Capital Markets, BofA Securities Inc., Barclays and Citizens Bank are leading the deal that will be used to help fund the buyout of the company by Tinicum LP.

Watlow is a St. Louis-based designer and manufacturer of complete thermal systems.

PODS tweaks timing

PODS moved up the commitment deadline for its $1.165 billion seven-year covenant-lite first-lien term loan B to 5 p.m. ET on Thursday from March 24, according to a market source.

The term loan is talked at Libor plus 325 bps with a 0.75% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

The company’s $1.265 billion of senior secured credit facilities (B2/B) also include a $100 million five-year revolver.

Morgan Stanley Senior Funding Inc., Credit Suisse Securities (USA) LLC and Barclays are leading the deal that will be used to refinance an existing first-lien term loan, fund a distribution to shareholders and pay related fees and expenses.

PODS is a Clearwater, Fla.-based provider of storage and moving containers.

Denali moves deadline

Denali Water Solutions accelerated the commitment deadline for its $395 million first-lien term loan to 5 p.m. ET on Tuesday from 5 p.m. ET on Wednesday, a market source said.

Talk on the term loan is Libor plus 450 bps to 475 bps with a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

The company’s $455 million of credit facilities (B3/B-) also include a $60 million revolver.

UBS Investment Bank, BMO Capital Markets and KeyBanc Capital Markets are leading the deal that will be used to fund the acquisition of Organix Recycling LLC, a food waste collector and recycler, and to refinance Denali’s existing credit facility.

Denali Water Solutions, a TPG portfolio company, is a Russellville, Ark.-based specialty waste and environmental services company.

SiteOne accelerated

SiteOne Landscape Supply changed the commitment deadline for its $300 million seven-year first-lien term loan B (B1/BB+) to noon ET Wednesday from noon ET on Thursday, a market source remarked.

Talk on the term loan is Libor plus 225 bps to 250 bps with a 0.5% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months.

JPMorgan Chase Bank is leading the deal that will be used to refinance an existing term loan B due Oct. 29, 2024 priced at Libor plus 275 bps with a 1% Libor floor.

SiteOne is a Roswell, Ga.-based distributor of wholesale irrigation, landscape lighting, nursery, hardscapes, maintenance products and supplies for the green industry.

Autokiniton launches

Autokiniton held its call on Tuesday and launched an $810 million seven-year second secured covenant-lite term loan B (B) at talk of Libor plus 475 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 at noon ET on March 25, the source added.

Citigroup Global Markets Inc., BofA Securities Inc., Barclays, Goldman Sachs Bank USA and RBC Capital Markets are leading the deal that will be used to refinance an existing term loan A, term loan B-1 and term loan B-2.

Closing is expected during the week of March 29.

Autokiniton is a New Boston, Mich.-based provider of automotive components and assembly solutions.

Orion proposed terms

Orion Advisor Solutions revealed in the morning that it would be launching on its 1 p.m. ET lender call a fungible $100 million covenant-lite incremental first-lien term loan due September 2027 and a repricing of its existing $748 million covenant-lite first-lien term loan due September 2027, a market source said.

Talk on the term loan debt is Libor plus 375 bps with a 0.75% Libor floor and 101 soft call protection for six months, the source added. The incremental term loan is talked with an original issue discount of 99.75 and the repricing is offered at par.

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

Credit Suisse Securities (USA) LLC is leading the deal.

The incremental term loan will be used to fund tuck-in mergers and acquisitions, and the repricing will take the existing term loan down from Libor plus 400 bps with a 1% Libor floor.

Orion is a provider of a tech-enabled fiduciary solutions that support financial advisers.

Aegion on deck

Aegion set a lender call for Wednesday to launch $725 million of credit facilities, split between a $75 million five-year revolver and a $650 million seven-year first-lien term loan, according to a market source.

Jefferies LLC, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., MUFG, SMFG and KeyBanc Capital Markets are leading the deal that will be used with equity to fund the buyout of the company by New Mountain Capital LLC for $27.00 per share in cash. The transaction has a total enterprise value of $995 million, including net debt.

Closing is expected in the second quarter, subject to Aegion stockholder approval, regulatory approvals and other customary conditions.

Aegion is a Chesterfield, Mo.-based provider of infrastructure maintenance, rehabilitation and protection solutions, primarily serving municipal water and wastewater entities.

Atlantic readies deal

Atlantic Power scheduled a bank meeting for 10 a.m. ET on Thursday to launch a $405 million of credit facilities, a market source remarked.

The facilities consist of a $45 million revolver, which is expected to be undrawn, and a $360 million term loan B, the source added.

RBC Capital Markets and MUFG are leading the deal that will be used to help fund the buyout of the company by I Squared Capital for $3.03 per share in cash, or about $961 million.

The transaction will be consummated by two separate entities, the Thermal Asset portfolio and the Hydro Asset portfolio. The Hydro Asset portfolio will be separately capitalized and will not be included in the term loan B credit group.

Closing is expected in the second quarter, subject to court approval of the arrangement, regulatory approvals, shareholder approval and certain third-party consents.

Atlantic Power is a Dedham, Mass.-based power producer.

Sinclair joins calendar

Sinclair Television Group will hold a lender call at 10:30 a.m. ET on Wednesday to launch a $1.119 billion seven-year first-lien term loan B (BB-) talked at Libor plus 275 bps to 300 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, according to a market source.

Commitments are due at 5 p.m. ET on March 24, the source added.

JPMorgan Chase Bank, BoA Securities Inc., Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Citizens, Deutsche Bank Securities Inc., Fifth Third, Goldman Sachs Bank USA, Mizuho, RBC Capital Markets, Truist and Wells Fargo Securities LLC are leading the deal that will be used to refinance an existing $1.119 billion term loan B-1 due Jan.3, 2024.

Sinclair Television is a Hunt Valley, Md.-based broadcaster that owns, operates and/or provides services to 186 television stations in 87 markets.

Teneo coming soon

Teneo set a lender call for 1 p.m. ET on Wednesday to launch a fungible $150 million incremental first-lien term loan, a market source said.

Goldman Sachs Bank USA is leading the deal that will be used to fund the acquisition of Deloitte UK’s restructuring services business.

CVC Capital Partners is the sponsor.

Teneo is a New York-based CEO advisory firm.

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