Ashland, Albertsons, PPD, Hyland, ATS, Zodiac, Planet Fitness, TRC, Berlin, Air Canada break

By Sara Rosenberg

New York, May 25 – A number of deals emerged in the secondary market on Thursday, including Ashland LLC, Albertsons Cos. LLC, Pharmaceutical Product Development LLC (PPD/Jaguar Holding Co. II), Hyland Software Inc., American Traffic Solutions (ATS), Zodiac Pool Solutions LLC, Planet Fitness Holdings LLC and TRC Cos. Inc.

Additionally, Berlin Packaging LLC firmed the spread on its term loan B at the wide end of guidance and Air Canada finalized pricing on its term loan B at the low side of talk, and then both of these deals freed up for trading.

In other news, All Metro Health Care withdrew its credit facilities from market, and Superior Industries International Inc. and Endurance International Group (EIG Investors Corp.) joined the near-term primary calendar.

Ashland hits secondary

Ashland’s $600 million seven-year senior secured covenant-light term loan B (Ba1/BB+) broke for trading on Thursday, with levels quoted at par ½ bid, 101 offered, according to a trader.

Pricing on the term loan is Libor plus 200 basis points with a 0% Libor floor, and it was issued at par. The debt has 101 soft call protection for six months.

On Tuesday, pricing on the loan firmed at the low end of the Libor plus 200 bps to 225 bps talk, and the issue price was changed from 99.5.

Citigroup Global Markets Inc., Bank of Nova Scotia, Bank of America Merrill Lynch, Deutsche Bank Securities Inc. and PNC Bank are leading the deal that will be used to retire 3 7/8% senior notes due 2018.

Closing is expected in early June.

Ashland is a Covington, Ky.-based specialty chemicals company.

Albertsons above par

Albertsons’ term debt (Ba3/BB) also freed to trade, with the $3,014,000,000 term loan B-4 due August 2021 quoted at par 3/8 bid, par ¾ offered, and both the $1,139,000,000 term loan B-5 due December 2022 and the $1,596,000,000 term loan B-6 due June 2023 quoted at par ½ bid, par 7/8 offered, a trader remarked.

Pricing on the term loan B-4 is Libor plus 275 bps, and pricing on the B-5 and B-6 loans is Libor plus 300 bps, with all tranches having a 0.75% Libor floor and 101 soft call protection for six months. All of the loans were issued at par.

Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch, Citigroup Global Markets Inc., Morgan Stanley Senior Funding Inc., Goldman Sachs Bank USA, Deutsche Bank Securities Inc. and Barclays are leading the term loans that will be used to reprice an existing term loan B-4, which is being reduced from $3,264,000,000, from Libor plus 300 bps with a 0.75% Libor floor, and to reprice existing B-5 and B-6 loans from Libor plus 325 bps with a 0.75% Libor floor.

Albertsons is a Boise, Idaho-based food and drug retailer.

Pharmaceutical Product breaks

Pharmaceutical Product Development’s $3,186,000,000 covenant-light first-lien term loan (Ba3/B) due Aug. 18, 2022 began trading as well, with levels seen at par 1/8 bid, par 5/8 offered, a trader said.

Pricing on the term loan is Libor plus 275 bps with a 1% Libor floor, and it was issued at par. The debt has 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Barclays, Goldman Sachs Bank USA, UBS Investment Bank, Morgan Stanley Senior Funding Inc. and Deutsche Bank Securities Inc. are leading the deal that will be used to reprice an existing term loan from Libor plus 325 bps with a 1% Libor floor.

Pharmaceutical Product Development is a Wilmington, N.C.-based contract research organization focused on clinical development and laboratory services.

Hyland starts trading

Hyland Software’s term debt freed to trade too, with the $490 million incremental first-lien term loan due July 2022 quoted at par ¼ bid, 101 offered and then it moved up to par ½ bid, 101¼ offered, and the $210 million eight-year covenant-light second-lien term loan quoted at par ¼ bid, 101¼ offered and then it moved up to 101 bid, 102 offered, according to market sources.

Pricing on the incremental first-lien term loan is Libor plus 325 bps with a 0.75% Libor floor, and it was sold at an original issue discount of 99.75. The loan has 101 soft call protection for six months.

The second-lien term loan is priced at Libor plus 700 bps with a 0.75% Libor floor and was issued at a discount of 99.5. This tranche has call protection of 102 in year one and 101 in year two.

On Monday, the incremental first-lien term loan was upsized from $460 million, and the discount was revised from 99.5, and the second-lien term loan was downsized from $240 million, pricing was cut from talk of Libor plus 750 bps to 775 bps and the discount was tightened from 99.

The term loans still have a ticking fee of half the margin from days 31 to 60 and the full margin thereafter.

Hyland getting revolver

In addition to the first-and second-lien term loan debt, Hyland Software is getting a $60 million incremental revolving credit facility.

Credit Suisse Securities, Goldman Sachs Bank USA and UBS Investment Bank are leading the deal that will be used to fund the acquisition of Perceptive Software from Lexmark International Inc.

Existing lenders are being offered a 12.5 bps amendment fee.

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

Hyland, a Thoma Bravo portfolio company, is a Westlake, Ohio-based enterprise content-management software developer.

American Traffic frees up

American Traffic Solutions’ credit facilities emerged in the secondary market, with the $325 million seven-year covenant-light first-lien term loan quoted at 99½ bid, par offered, and the $125 million eight-year covenant-light second-lien term loan quoted at 98¾ bid, a market source remarked.

Pricing on the first-lien term loan is Libor plus 450 bps with a 1% Libor floor, and it was sold at an original issue discount of 99. This tranche has 101 soft call protection for six months.

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

During syndication, the second-lien term loan was upsized from $100 million as the equity being used for the company’s buyout by Platinum Equity was reduced, and the 12-month MFN sunset was eliminated.

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 debt.

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

Zodiac tops issue price

Zodiac Pool Solutions’ $519 million covenant-light first-lien term loan (B3/B) due Dec. 20, 2023 was another deal to free up, with levels seen at par ¼ bid, 101 offered, according to a trader.

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

On Wednesday, the spread on the term loan was increased from talk of Libor plus 350 bps to 375 bps.

Credit Suisse Securities (USA) LLC is leading 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.

Planet Fitness breaks

Planet Fitness’ $714.9 million covenant-light term loan due March 2021 began trading too, with levels quoted at par 3/8 bid, par 5/8 offered, a market source remarked.

Pricing on the loan is Libor plus 300 bps with a step-down to Libor plus 275 bps at less than 3.5 times net leverage and a 0.75% Libor floor. The debt was issued at par and has 101 soft call protection for six months.

J.P. Morgan Securities LLC is the leading the deal that will be used to reprice an existing term loan from Libor plus 350 bps with a 0.75% Libor floor.

Planet Fitness is a Newington, N.H.-based operator of health clubs.

TRC surfaces in secondary

TRC’s credit facilities broke, with the $325 million seven-year covenant-light first-lien term loan quoted at par bid, par ½ offered, according to a market source.

Pricing on the term loan is Libor plus 400 bps with a 1% Libor floor, and it was sold at an original issue discount of 99.5. The loan has 101 soft call protection for six months.

The company’s $385 million in credit facilities (B2/B) also include a $60 million five-year revolver priced at Libor plus 400 bps.

On Wednesday, the term loan was upsized from $315 million and the discount was tightened from 99, and the spread on the term loan and the revolver was cut from Libor plus 475 bps.

UBS Investment Bank, Barclays and Citizens are leading the deal that will help fund the buyout of the company by New Mountain Capital LLC for $17.55 per common stock share, and, due to the recent term loan upsizing, to add cash to the balance sheet.

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

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

Berlin firms spread, trades

Berlin Packaging set pricing on its $819,175,000 senior secured covenant-light term loan B (B2/B) due Oct. 1, 2021 at Libor plus 325 bps, the high end of the Libor plus 300 bps to 325 bps talk, 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.

With final terms in place, the term loan made its way into the secondary market, and levels were quoted at par ¼ bid, par ¾ offered, a trader added.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to reprice an existing term loan B due 2021 from Libor plus 350 bps with a 1% Libor floor.

Closing is expected during the week of May 29.

Berlin Packaging is a Chicago-based hybrid packaging supplier.

Air Canada updated, breaks

Air Canada finalized the spread on its $800 million term loan B at Libor plus 225 bps, the low end of the Libor plus 225 bps to 250 bps talk, and left the 0.75% Libor floor, par issue price and 101 soft call protection for six months unchanged, a market source said.

The loan then freed up for trading, with levels quoted at par 3/8 bid, par ¾ offered, the source added.

J.P. Morgan Securities LLC is leading the deal that will be used to reprice an existing term loan B from Libor plus 275 bps with a 0.75% Libor floor.

Air Canada is a Montreal-based airline company.

All Metro pulled

In more happenings, All Metro Health Care removed its $255 million credit facilities from market that consisted of a $30 million five-year revolver at Libor plus 475 bps with no floor and an original issue discount of 99, and a $225 million six-year term loan B at Libor plus 475 bps with a 1% Libor floor, a discount of 99 and 101 soft call protection for six months, a market source remarked.

The transaction was fully syndicated after the company lifted pricing on the revolver and term loan from Libor plus 450 bps.

However, the company opted to stay with its existing privately-placed bank debt on revised terms instead of refinancing with the new transaction, the source explained.

Capital One and BMO Capital Markets Corp. were leading the deal.

All Metro, a One Equity Partners portfolio company, is a Valley Stream, N.Y.-based provider of home care services in New York, Pennsylvania, New Jersey and Florida.

Superior Industries on deck

Superior Industries set a bank meeting for 11 a.m. ET in New York on Wednesday to launch a $400 million seven-year senior secured term loan B, a market source said.

According to on an 8-K filed with the Securities and Exchange Commission on Thursday, the company is also expected to get a $160 million five-year senior secured revolver.

Citigroup Global Markets Inc. is leading the deal that will be used to help fund the $715 million acquisition of Uniwheels AG, which is also expected to be funded with €240 million in senior unsecured notes and $150 million of preferred equity.

Net debt to adjusted EBITDA will be 3.1 times at the close of the transaction.

Closing on the acquisition is expected on May 30, subject to customary conditions.

Superior Industries is a Southfield, Mich.-based manufacturer of aluminum wheels for passenger cars and light-duty vehicles. Uniwheels is a Germany-based supplier and manufacturer of aluminum wheels for the automotive aftermarket.

Endurance readies launch

Endurance International Group scheduled a bank meeting for 1:30 p.m. ET in New York on Tuesday to launch a $1,697,000,000 first-lien term loan due February 2023 that has a 1% Libor floor and 101 soft call protection for six months, according to a market source.

Commitments are due at 5 p.m. ET on June 8, the source said.

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to refinance existing first-lien term loans.

Endurance is a Burlington, Mass.-based provider of cloud-based platform solutions designed to help small and medium-sized businesses succeed online.

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