Omnitracs breaks; Ellucian, Vistra, Global Medical, GCI, Allegro, Agiliti changes emerge

By Sara Rosenberg

New York, Sept. 23 – Omnitracs LLC moved some funds between its first-and second-lien term loans, set pricing at the narrow side of talk on the loans and tightened the original issue discount on the first-lien debt, and then freed up for trading on Wednesday.

In more happenings, Ellucian reduced pricing on its first-lien term loan and adjusted the issue price, and Vistra increased the amount of incremental first-lien term loan debt it is getting with the amendment and extension of its existing first-lien term loans, and finalized the spread on the borrowings at the low end of guidance.

Also, Global Medical Response and GCI LLC upsized their term loans, Allegro Microsystems Inc. trimmed pricing on its first-lien term loan, added two step-downs and revised the issue price, and Agiliti lifted its add-on term loan size and tightened the original issue discount.

Furthermore, PCI Pharma Services (Packaging Coordinators Midco Inc.) accelerated the commitment deadline for its first-lien term loan, and Cambium Learning Group, HighTower Holdings LLC and Closure Systems International Group Inc. disclosed price talk on their loan transactions with launch.

Additionally, Canada Goose Inc., Array Technologies Inc., BrightSpring Health Services (Phoenix Guarantor Inc.), Red Ventures LLC and RBmedia surfaced with new deal plans.

Omnitracs revised

Omnitracs raised its non-fungible incremental covenant-lite first-lien term loan due March 2025 to $175 million from $160 million, firmed the spread at Libor plus 425 basis points, the low end of the Libor plus 425 bps to 450 bps talk, and changed the original issue discount to 99 from 98.5, according to a market source. The 0% Libor floor and 101 soft call protection for six months were unchanged.

Regarding the eight-year covenant-lite second-lien term loan, the size was scaled back to $180 million from $195 million and pricing finalized at Libor plus 800 bps, the low end of the Libor plus 800 bps to 825 bps talk, the source said. This tranche still has a 0% Libor floor, a discount of 98 and hard call protection of 102 in year one and 101 in year two.

Barclays, Credit Suisse Securities (USA) LLC, Macquarie Capital (USA) Inc. and Guggenheim are leading the deal, with Barclays left on the first-lien loan and Credit Suisse left on the second-lien loan.

Omnitracs frees up

On Wednesday, Omnitracs’ bank debt began trading, with the second-lien term loan quoted at 98¼ bid, 99½ offered, another source added.

Proceeds will be used with cash on hand to fund the acquisition of SmartDrive Systems Inc., a San Diego-based provider of video-based safety and transportation intelligence.

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

Omnitracs is a Dallas-based provider of SaaS-based fleet management and data analytics solutions.

Ellucian cuts pricing

Back in the primary market, Ellucian lowered pricing on its $1.6 billion seven-year first-lien term loan (B2/B) to Libor plus 375 bps from Libor plus 400 bps and revised the original issue discount to 99.25 from 99, according to a market source.

The term loan still has a 0.75% Libor floor.

The company is also getting a $150 million five-year revolver (B2/B) and a $540 million privately placed eight-year second-lien term loan.

BofA Securities, Inc., J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc., Goldman Sachs Bank USA, UBS Investment Bank, BMO Capital Markets, Barclays, Deutsche Bank Securities Inc. and TPG are leading the deal that will be used to refinance existing debt and fund a dividend.

Ellucian is a Reston, Va.-based provider of higher education software and services.

Vistra updated

Vistra lifted its U.S. first-lien term loan B due October 2025 to $573 million from $562 million and its euro first-lien term loan B due October 2025 to €459 million from €411 million, and set pricing on the debt at Libor/Euribor plus 375 bps, the tight end of the Libor/Euribor plus 375 bps to 400 bps talk, a market source remarked.

The U.S. term loan still has a 1% Libor floor, the euro term loan still has a 0% floor, and both loans still have an original issue discount of 99 and 101 soft call protection for six months.

Goldman Sachs Bank USA, HSBC Securities (USA) Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., BNP Paribas Securities Corp. and Morgan Stanley Senior Funding Inc. are leading the deal.

The debt will be used to extend an existing $562 million first-lien term loan B priced at Libor plus 300 bps with a 1% Libor floor and an existing €411 million first-lien term loan B priced at Euribor plus 325 bps with a 0% floor by three years from 2022, and to refinance outstanding second-lien term loans in full.

Initially, the company was seeking a $28 million equivalent U.S. and/or euro incremental first-lien term loan to its existing $562 million and €411 million term loans, but the amount was increased to $68 million equivalent so that a proposed $40 million revolver draw for the second-lien paydown would no longer be needed.

Vistra is an integrated global player in the corporate and trust services industry.

Global Medical tweaked

Global Medical Response upsized its five-year first-lien term loan to $1.5 billion from $1.37 billion, and left talk at Libor plus 450 bps to 475 bps with a 1% Libor floor, an original issue discount of 98 and 101 soft call protection for six months, a market source said.

Commitments were due end of day on Wednesday, moved up from end of day on Thursday, the source added.

KKR Capital Markets LLC and Morgan Stanley Senior Funding Inc. are leading the loan that will be used with $740 million of bonds, upsized from $500 million, to refinance an existing $1.87 billion term loan B due 2022 and, as a result of the additional debt raised, to refinance 6 3/8% senior notes due 2023.

Global Medical, previously known as Air Medical, is a Greenwood Village, Colo.-based provider of medical care, primarily in the areas of emergency and patient relocation services.

GCI upsizes

GCI increased its five-year term loan B to $400 million from $350 million, according to a market source.

As before, the term loan B is talked at Libor plus 275 bps with a 0.75% Libor floor, an original issue discount of 99.5 on new money and 99.75 on existing, and 101 soft call protection for six months.

Recommitments were due at the end of the day on Wednesday, the source added.

Truist Securities, J.P. Morgan Securities LLC, Credit Agricole, BofA Securities Inc., Cobank, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., MUFG and TD Securities (USA) LLC are leading the loan.

Proceeds will be used with $600 million of bonds, upsized from $350 million, to refinance an existing term loan and 2025 notes, and the funds from the additional debt raised will be used to take out 2024 bonds.

GCI is an Anchorage-based telecommunications company.

Allegro flexes

Allegro Microsystems lowered pricing on its $325 million seven-year covenant-lite first-lien term loan (B1/B+) to Libor plus 425 bps from talk in the range of Libor plus 450 bps to 475 bps, added a 25 bps step-down after 0.5x of first-lien net leverage deleveraging and a 25 bps step-down after an initial public offering, and modified the original issue discount to 99 from 98.5, a market source remarked.

The term loan still has a 0.5% Libor floor and 101 soft call protection for six months.

Recommitments were due at 5 p.m. ET on Wednesday, the source added.

Credit Suisse Securities (USA) LLC, Barclays, Mizuho and SMBC are leading the deal that will be used to refinance a revolver draw and to fund a shareholder distribution.

Allegro is a Manchester, N.H.-based provider of magnetic sensor and power integrated circuits.

Agiliti reworked

Agiliti lifted its add-on term loan to $150 million from $125 million and changed the original issue discount to 99 from talk in the range of 98 to 98.5, according to a market source.

Pricing on the term loan is still Libor plus 300 bps with a 0.75% Libor floor.

J.P. Morgan Securities LLC is leading the deal that will be used to repay second-lien term loan borrowings.

Agiliti is a Minneapolis-based provider of health care technology management and service solutions.

PCI changes timing

PCI Pharma Services moved up the commitment deadline for its $870 million seven-year senior secured first-lien term loan (B2) to noon ET on Friday from Oct. 1, a market source said.

Talk on the first-lien term loan is Libor plus 375 bps to 400 bps with one 25 bps step-down at 0.5x inside closing first-lien net leverage and one 25 bps step-down based on an initial public offering, a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

The company’s $1.345 billion of credit facilities also include a $125 million five-year revolver (B2) and a $350 million privately placed eight-year senior secured second-lien term loan.

Jefferies LLC, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Antares Capital Markets are leading the deal that will be used to help fund the buyout of the company by Kohlberg & Co. from Partners Group, Thomas H. Lee Partners and Frazier Healthcare Partners. Mubadala Investment Co. will also become a significant investor in PCI. Partners Group will retain a meaningful minority equity stake in the company.

PCI is a Philadelphia-based provider of outsourced pharmaceutical services.

Cambium proposed terms

In more primary happenings, Cambium Learning Group held its lender call on Wednesday morning and announced price talk on its $575 million of term loans, according to a market source.

The fungible $425 million incremental first-lien term loan due December 2025 is talked with an original issue discount of 98 and 101 soft call protection for six months, the source said. Pricing is Libor plus 450 bps with a 0% Libor floor, in line with pricing on the existing $609 million first-lien term loan.

Talk on the non-fungible $150 million incremental second-lien term loan due December 2026 is Libor plus 850 bps with a 1% Libor floor, a discount of 97 and hard call protection of 102 in year one and 101 in year two.

By comparison, the company’s existing $223 million second-lien term loan is priced at Libor plus 850 bps with a 0% Libor floor.

Commitments are due at noon ET on Oct. 7, the source added.

Cambium lead banks

RBC Capital Markets, Deutsche Bank Securities Inc., KKR Capital Markets, Macquarie Capital (USA) Inc., Barclays and BMO Capital Markets are leading Cambium’s term loans.

The new debt will be used with balance sheet cash and equity from Veritas Capital, the current owner of Cambium, to fund the acquisition of Rosetta Stone Inc. for $30 per share, representing an equity value of about $792 million.

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

Cambium is a Dallas-based end-to-end provider of K-12 instructional and assessment solutions. Rosetta Stone is an Arlington, Va.-based provider of digital literacy and language education solutions to K-12, consumer and enterprise customers.

HighTower holds call

HighTower Holdings hosted a lender call in the morning to launch a fungible $130 million incremental first-lien term loan due Jan. 31, 2025 talked at Libor plus 500 bps with a 1% Libor floor and an original issue discount of 98.5, and a fungible $20 million incremental first-lien delayed-draw term loan due Jan. 31, 2025 that is available for 24 months and is talked with a 1% unused fee and a discount of 98.5, according to a market source.

The spread and floor on the incremental first-lien term loan matches pricing on the company’s existing $520.7 million first-lien term loan.

All of the first-lien term loan debt is getting 101 soft call protection for six months, the source continued.

Commitments are due on Oct. 6.

The company is also getting a fungible $35 million incremental second-lien term loan.

Antares Capital is leading the deal that will be used to fund planned acquisitions.

HighTower, a Thomas H. Lee Partners portfolio company, is a Chicago-based registered investment advisor that owns and provides a suite of mission critical services to independent advisory practices.

Closure Systems launches

Closure Systems surfaced in the morning with plans to hold a lender call at noon ET to launch a $70 million incremental covenant-lite first-lien term loan due December 2026 talked at Libor plus 475 bps with a 0% Libor floor, an original issue discount of 99.5 to 99.75 and 101 soft call protection for six months, a market source said.

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

Credit Suisse Securities (USA) LLC is leading the deal that will be used to fund a dividend.

The spread and floor on the incremental term loan matches existing term loan pricing.

Closure Systems, formerly known as Canister International Group Inc., is a Memphis, Tenn.-based designer and manufacturer of plastic and aluminum closures and capping equipment.

Canada Goose on deck

Canada Goose set a lender call for noon ET on Thursday to launch a $300 million seven-year covenant-lite first-lien term loan (B2/BB) talked at Libor plus 450 bps with a 1% Libor floor, an original issue discount of 98 and 101 soft call protection for six months, according to a market source.

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

Credit Suisse Securities (USA) LLC, CIBC, BofA Securities Inc. and HSBC Securities (USA) Inc. are leading the deal that will be used to refinance existing debt and for general corporate purposes.

Canada Goose is a Toronto-based maker of performance luxury apparel.

Array readies loan

Array Technologies emerged with plans to hold a lender call at 3 p.m. ET on Thursday to launch a $575 million first-lien term loan B, a market source remarked.

Goldman Sachs Bank USA is the left lead on the deal that will be used to support a dividend to shareholders.

Array Technologies is an Albuquerque, N.M.-based manufacturer of ground-mounting systems used in solar energy projects.

BrightSpring joins calendar

BrightSpring Health Services scheduled a lender call for 11 a.m. ET on Thursday to launch $550 million of senior secured term loans (B1/B), according to a market source.

The debt consists of a $475 million first-lien term loan B and a $75 million delayed-draw term loan, the source said.

Morgan Stanley Senior Funding Inc. and KKR Capital Markets LLC are leading the deal that will be used to finance future acquisitions, fund cash to the balance sheet, and pay related fees and expenses.

BrightSpring Health is a Louisville, Ky.-based health care services provider.

Red Ventures coming soon

Red Ventures will hold a lender call on Thursday to launch a $400 million incremental senior secured first-lien term loan (B1), a market source said.

BofA Securities Inc. is the left lead on the deal that will be used to help fund the acquisition of CNET Media Group, a digital media company, from ViacomCBS for $500 million.

Closing is expected in the fourth quarter, subject to regulatory approvals and customary conditions.

Red Ventures is a Fort Mill, S.C.-based portfolio of digital brands.

RBmedia sets call

RBmedia scheduled a lender call for 1 p.m. ET on Thursday to launch a $250 million add-on first-lien term loan, according to a market source.

Goldman Sachs Bank USA, KKR Capital Markets, Morgan Stanley Senior Funding Inc. and Truist are leading the deal that will be used to fund a dividend to existing shareholders.

RBmedia is a Landover, Md.-based digital audiobook and related spoken-word content producer.

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