CityMD, CommScope, eviCore, KAR, Montreign break; TRC, Zodiac, American Traffic revised

By Sara Rosenberg

New York, May 24 – CityMD’s credit facilities began trading during Wednesday’s market hours, with the first-lien term loan quoted above its original issue discount, and deals from CommScope Inc., eviCore and KAR Auction Services Inc. broke too.

In addition, Montreign Operating Co. LLC firmed the original issue discount on its incremental term loan B at the tight end of guidance, and then it too freed to trade.

Also, TRC Cos. Inc. increased the size of its term loan, trimmed the spread and tightened the issue price, and reduced pricing on its revolver as well, Zodiac Pool Solutions LLC increased pricing on its first-lien term loan repricing proposal, and American Traffic Solutions upsized its second-lien term loan.

Furthermore, Plasman Group released price talk on its term loan with launch, International Seaways Inc. came out with new deal plans and Medical Solutions surfaced with timing on the bank meeting for its credit facilities.

CityMD frees up

CityMD’s credit facilities emerged in the secondary market on Wednesday, with the $225 million seven-year covenant-light first-lien term loan seen at par ¼ bid, par ¾ offered, a market source said.

Pricing on the term loan is Libor plus 400 basis points with a 1% Libor floor, and it was sold at an original issue discount of 99.75. The loan has 101 soft call protection for six months.

On Tuesday, the spread on the term loan was trimmed from Libor plus 450 bps, and the discount was tightened from 99.

The company’s $255 million in credit facilities (B3/B-) also include a $30 million revolver.

Credit Suisse Securities (USA) LLC and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to help fund the buyout of the company by Warburg Pincus.

CityMD is an urgent care provider in the New York Metro area.

CommScope tops par

CommScope’s $1,096,000,000 term loan B began trading as well, with levels quoted at par 3/8 bid, par ¾ offered, according to a market source.

The term loan is priced at Libor plus 200 bps with no Libor floor, and it was issued at par. The debt has 101 soft call protection for six months.

On Tuesday, the spread on the loan finalized at the tight end of the Libor plus 200 bps to 225 bps talk.

Wells Fargo Securities LLC and J.P. Morgan Securities LLC are leading the deal that will be used to reprice an existing term loan B from Libor plus 250 bps with a 0.75% Libor floor.

CommScope is a Hickory, N.C.-based provider of infrastructure services for communication networks.

eviCore breaks

eviCore’s repriced $834 million first-lien term loan due March 2021 also hit the secondary market, with levels seen at par ½ bid, 101 offered, a trader remarked.

Pricing on the term loan is Libor plus 400 bps with a 1% Libor floor, and it was issued at par. The debt includes 101 soft call protection for six months.

On Tuesday, the spread on the loan was lifted from Libor plus 375 bps.

RBC Capital Markets LLC is leading the deal that will reprice the existing term loan down from Libor plus 450 bps with a 1% Libor floor.

eviCore, previously known as CareCore, is a Bluffton, S.C.-based provider of specialty benefits management services to managed care organizations, self-insured entities and risk-bearing provider organizations.

KAR levels surface

Another deal to start trading was KAR Auction Services, with both its $720 million term loan B-2 and $1.05 billion term loan B-3 seen at par 3/8 bid, par 5/8 offered, a market source said.

Pricing on the term loan B-2 is Libor plus 225 bps with a 0% Libor floor and pricing on the term loan B-3 is Libor plus 250 bps with a 0% Libor floor, and both tranches were issued at par.

During syndication, the term loan B-3 was upsized from $897 million, and the issue price on both loans firmed at the tight end of the 99.875 to par talk.

J.P. Morgan Securities LLC is leading the deal that will be used to reprice an existing term loan B-2 due 2021 from Libor plus 317.75 with a 0.75% Libor floor and an existing term loan B-3 due 2023 from Libor plus 350 bps with a 0.75% Libor floor and, due to the recent upsizing, for general corporate purposes.

As of Dec. 31, there was $1.08 billion outstanding under the term loan B-2 and $1.34 billion outstanding under the term loan B-3, but a portion of the debt is being paid down with some of the proceeds from a $950 million senior notes offering.

KAR is a Carmel, Ind.-based provider of vehicle auction services and floorplan financing.

Montreign updated, trades

Montreign Operating set the original issue discount on its fungible $35 million incremental first-lien term loan B due January 2023 at 99.75, the tight end of the 99.5 to 99.75 talk, according to a market source.

As before, the incremental loan is priced at Libor plus 825 bps with a 1% Libor floor and is non-callable through July 23, 2019, then at 102 through July 23, 2020 and at 101 through July 23, 2021.

With final terms in place, the incremental loan allocated and broke for trading at 101 bid, 101½ offered, the source said.

Credit Suisse Securities (USA) LLC, Fifth Third and Nomura are leading the deal that will be used to reduce an equity contribution.

Existing lenders were offered a 5 bps amendment fee.

Montreign Operating is a casino operator in the Hudson Valley.

TRC changes emerge

In more happenings, TRC lifted its seven-year covenant-light first-lien term loan to $325 million from $315 million, lowered pricing to Libor plus 400 bps from Libor plus 475 bps and adjusted the original issue discount to 99.5 from 99, while leaving the 1% Libor floor and 101 soft call protection for six months unchanged, a market source said.

Additionally, the company reduced pricing on its $60 million five-year revolver to Libor plus 400 bps from Libor plus 475 bps.

Recommitments were due at 3 p.m. ET on Wednesday, the source continued.

UBS Investment Bank, Barclays and Citizens are leading the now $385 million in credit facilities (B2/B) that will help fund the buyout of the company by New Mountain Capital LLC for $17.55 per common stock share.

Funds from the term loan upsizing will be used to add cash to the balance sheet, the source added.

Closing is expected by June 30, subject to stockholder approval, regulatory approval and other customary conditions.

TRC is a Windsor, Conn.-based engineering, environmental consulting and construction management firm.

Zodiac revises spread

Zodiac Pool Solutions increased pricing on its $519 million covenant-light first-lien term loan (B3/B) due Dec. 20, 2023 to Libor plus 400 bps from talk of Libor plus 350 bps to 375 bps, according to a market source.

As before, the term loan has a 1% Libor floor, a par issue price and 101 soft call protection for six months.

Recommitments are due at noon ET on Thursday, the source added.

Credit Suisse Securities (USA) LLC is the left lead bank on the deal that will be used to reprice an existing first-lien term loan from Libor plus 450 bps with a 1% Libor floor.

Zodiac Pool is a Paris-based manufacturer of residential pool equipment and automation solutions.

American Traffic upsizes

American Traffic Solutions lifted its eight-year covenant-light second-lien term loan to $125 million from $100 million and reduced the equity being used for its buyout, a market source said.

The second-lien term loan is still priced at Libor plus 850 bps with a 1% Libor floor and an original issue discount of 98 and has call protection of 103 in year one, 102 in year two and 101 in year three.

The company is also getting a $325 million seven-year covenant-light first-lien term loan priced at Libor plus 450 bps with a 1% Libor floor and a discount of 99. This tranche has 101 soft call protection for six months.

Along with the upsizing, the 12-month MFN sunset was eliminated, the source added.

Bank of America Merrill Lynch, BMO Capital Markets, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Morgan Stanley Senior Funding Inc. are leading the loans that will be used to help fund the buyout of the company by Platinum Equity.

American Traffic Solutions is a Mesa, Ariz.-based provider of road safety cameras and toll and violations management solutions.

Plasman reveals talk

Also in the primary market, Plasman Group held its bank meeting on Wednesday, launching its $325 million senior secured term loan B due Dec. 31, 2022 at talk of Libor plus 550 bps with a 1% Libor floor, an original issue discount of 98.5 to 99 and 101 soft call protection for six months, according to a market source.

Commitments are due at 5 p.m. ET on June 12, the source said.

Barclays is leading the deal that will be used to repay existing debt and fund a one-time dividend to shareholders.

Plasman is a Windsor, Ont.-based full-service supplier of Class A automotive exterior trim, fascia and precision components and systems to OEMs.

International Seaways on deck

International Seaways will hold a bank meeting on Tuesday afternoon to launch a $550 million term loan, a market source remarked.

Jefferies LLC is the left lead on the deal that will be used to refinance existing bank debt and for general corporate purposes, including fleet renewal and growth.

International Seaways is a New York-based tanker company.

Medical Solutions sets timing

Medical Solutions set a bank meeting for 10:30 a.m. ET in New York on May 31 to launch its senior secured credit facilities, according to a market source.

UBS Investment Bank and Sun Trust Robinson Humphrey Inc. are leading the deal that will be used to help fund the buyout of the company by TPG Growth. The company’s current owner, Beecken Petty O’Keefe & Co., will retain an equity stake in Medical Solutions post-close.

Closing is expected this quarter, subject to standard conditions, including regulatory clearance.

Medical Solutions is an Omaha-based provider of health care staffing solutions for hospitals.

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