PODS, Innocor break; Dell, Change Healthcare, Harland, Worldwide among deals to set updates

By Sara Rosenberg

New York, Feb. 2 – PODS LLC set pricing on the term loan B-2 at the high end of talk, and then the debt freed up for trading on Thursday above its issue price, and Innocor Inc.’s credit facility hit the secondary market as well.

Over in the primary market, Dell Technologies finalized pricing on its term loan debt at the low end of guidance, Change Healthcare and Harland Clarke Holdings Corp. upsized their term loans, and Worldwide Express tightened the spread and original issue discount on its first-lien term loan.

Also, Milk Specialties firmed the spread on its term loan at the tight side of talk, Time Manufacturing Co. set pricing on its term loan at the low end of guidance while tightening the original issue discount, and WME IMG LLC and Leslie’s Poolmart Inc. raised spreads on their term loan repricing transactions.

In addition, Curo Health Services, Royal Adhesive Inc. and PGT Inc. announced and launched loan transactions during the session, and SRS Distribution Inc. came out with price talk on its incremental term loans.

Furthermore, Gateway Casinos & Entertainment Ltd., Wall Street Systems Inc., Hemisphere Media Group Inc. and ION Trading Finance Ltd. joined the primary calendar.

PODS sets spread, trades

PODS firmed pricing on its $620,770,858 senior secured covenant-light term loan B-2 due Feb. 2, 2022 at Libor plus 325 basis points, the high end of the Libor plus 300 bps to 325 bps talk, according to a market source.

The term loan still 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 B-2 broke for trading on Thursday, and levels were quoted at par ¼ bid, par ¾ offered, a trader added.

Morgan Stanley Senior Funding Inc. and Barclays are leading the deal that will be used to reprice an existing term loan B due 2022 from Libor plus 350 bps with a 1% Libor floor.

Closing is expected on Tuesday.

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

Innocor frees up

Innocor’s credit facility began trading, with the $450 million seven-year covenant-light first-lien term loan quoted at 99¾ bid, par ½ offered and the $100 million eight-year covenant-light second-lien term loan quoted at 96¼ bid, 97 offered, according to a trader.

Pricing on the first-lien term loan is Libor plus 475 bps with a 1% Libor floor, and it was sold at an original issue discount of 99. The debt has 101 soft call protection for one year.

The second-lien term loan is priced at Libor plus 1,000 bps with a 1% Libor floor, and it was issued at a discount of 96. This tranche has hard call protection of 102 in year one and 101 in year two.

The company’s $675 million senior secured credit facility also provides for a $125 million asset-based revolver.

Innocor being acquired

Proceeds from Innocor’s credit facility will be used to help fund its buyout by Bain Capital Private Equity from Sun Capital Partners Inc., which is expected to close this quarter.

Barclays, Bank of America Merrill Lynch, Macquarie Capital (USA) Inc., Mizuho and Wells Fargo Securities LLC are leading the debt, with Barclays left on the first-lien and Bank of America left on the second-lien.

During syndication, the first-lien term loan was upsized from $425 million, and the call protection was extended from six months. Also, the second-lien term loan was downsized from $125 million, pricing was increased from Libor plus 900 bps and the discount widened from 98.

Other changes made during syndication included removing the 12-month MFN sunset and applying the 50 bps MFN to all pari passu loans, revising the incremental unlimited ratio basket to up to 3 times first-lien leverage, 4 times junior lien and 4.5 times unsecured from up to 3.25 times first-lien, 4.25 times junior-lien and 4.5 times unsecured, and modifying the asset-sale step-down.

Innocor is a Red Bank, N.J.-based designer and manufacturer of advanced foam products.

Booz Allen holds steady

Booz Allen Hamilton Inc.’s repriced $399 million term loan B was quoted at par 1/8 bid, par 5/8 offered, in line with where it broke for trading on Wednesday, a trader said.

Pricing on the loan is Libor plus 225 bps with no Libor floor, and the debt has 101 soft call protection for six months.

Bank of America Merrill Lynch is leading the deal that will reprice the existing term loan down from Libor plus 275 bps with no Libor floor.

Booz Allen Hamilton is a McLean, Va.-based provider of management and technology consulting services, and engineering services to governments, corporations and not-for-profit organizations.

Dell updates deal

Moving to the primary market, Dell Technologies firmed pricing on its fungible $500 million incremental first-lien term loan due Sept. 7, 2023 and repricing of its existing $5 billion first-lien term loan due Sept. 7, 2023 at Libor plus 250 bps, the low end of the Libor plus 250 bps to 275 bps talk, according to a market source.

The term loan debt still has a 0.75% Libor floor, an original issue discount of 99.875 and 101 soft call protection for six months.

Recommitments were due at noon ET on Thursday, the source said.

Credit Suisse Securities (USA) LLC is the left lead bank on the deal (Baa3/BBB-/BBB-).

The incremental loan will be used to refinance existing debt, and the repricing will take the existing term loan down from Libor plus 325 bps with a 0.75% Libor floor.

Dell Technologies is a Round Rock, Texas-based private technology company.

Change Healthcare upsized

Change Healthcare lifted its seven-year covenant-light term loan B to $5.1 billion from $4,865,000,000 and trimmed its senior unsecured notes offering to $1 billion from $1,235,000,000, according to a market source.

The term loan B is talked at Libor plus 275 bps to 300 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

The company’s now $5.6 billion credit facility, up from $5,365,000,000 also includes a $500 million revolver.

Bank of America Merrill Lynch, Goldman Sachs Bank USA, Barclays, Citigroup Global Markets Inc., RBC Capital Markets and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to refinance existing debt and to help fund the creation of the company through the merger of Change Healthcare Holdings Inc. and the majority of McKesson Technology Solutions.

Closing on the merger is expected in the first half of this year, subject to customary conditions.

Change Healthcare is a health care information technology company.

Harland lifts loan amount

Harland Clarke raised its five-year covenant-light first-lien term loan to $550 million from $370 million, a market source said.

Pricing on the term loan is still Libor plus 550 bps with a 1% Libor floor and an original issue discount of 99, and there is still 101 soft call protection for six months.

Previously in syndication, pricing on the term loan was cut from Libor plus 600 bps and the discount was revised from 98.

Recommitments are due at 10 a.m. ET on Friday, the source added.

Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Deutsche Bank Securities Inc., Citigroup Global Markets Inc., Wells Fargo Securities LLC, Macquarie Capital and Jefferies Finance LLC are leading the deal that will be used to pay down existing term loans, including the term B-4.

Harland Clarke is a San Antonio-based provider of media delivery, payment solutions and marketing services.

Worldwide reworks first-lien

Worldwide Express reduced pricing on its $360 million seven-year first-lien term loan (B1/B) to Libor plus 450 bps from Libor plus 475 bps, changed the original issue discount to 99.5 from 99 and removed the MFN sunset, a market source said.

The first-lien term loan still has a 1% Libor floor and 101 soft call protection for six months.

The company’s $545 million credit facility also includes a $60 million revolver (B1/B), and a $125 million privately placed eight-year second-lien term loan (Caa1/CCC+) priced at Libor plus 875 bps with a 1% Libor floor and a discount of 98.5. The second-lien debt has call protection of 102 in year one and 101 in year two.

Antares Capital, Deutsche Bank Securities Inc. and Citizens Bank are leading the deal, with Antares the left lead on the first-lien debt and Deutsche the left lead on the second-lien loan.

Allocations went out on Thursday, and closing is targeted for Friday, the source added.

Worldwide funding buyout

Proceeds from Worldwide Express’ credit facility will be used to help fund its buyout by Ridgemont Equity Partners from Quad-C Management.

As part of the transaction, Worldwide Express will be combined with Unishippers Global Logistics, an existing portfolio company of Ridgemont.

Dallas-based Worldwide Express and Salt Lake City-based Unishippers are non-asset-based third-party logistics providers.

Milk finalizes spread

Milk Specialties set pricing on its $475 million covenant-light first-lien term loan due Aug. 16, 2023 at Libor plus 400 bps, the low end of the Libor plus 400 bps to 425 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.

Commitments were due at 5 p.m. ET on Thursday.

Credit Suisse Securities (USA) LLC is leading the deal that will reprice an existing first-lien term loan from Libor plus 500 bps with a 1% Libor floor.

Milk Specialties is an Eden Prairie, Minn.-based human and animal nutrition company.

Time Manufacturing revised

Time Manufacturing firmed the spread on its $81 million six-year term loan at Libor plus 500 bps, the tight end of the Libor plus 500 bps to 525 bps talk, and moved the original issue discount to 99.5 from 99, a market source said.

The term loan still has a 1% Libor floor and 101 soft call protection for six months.

The company’s $111 million credit facility also includes a $30 million five-year revolver.

Recommitments were due by the end of the day on Thursday, the source added.

BNP Paribas Securities Corp. is leading the deal that will be used with $38 million in privately placed mezzanine debt to fund the buyout of the company by the Sterling Group.

Time Manufacturing is a Waco, Texas-based aerial lift manufacturer.

WME IMG flexes up

WME IMG lifted pricing on its term loan B repricing to Libor plus 325 bps from Libor plus 300 bps, and left the 1% Libor floor, par issue price and 101 soft call protection for six months unchanged, according to a market source.

Commitments were due on Thursday.

KKR Capital Markets is leading the deal that will reprice the existing term loan down from Libor plus 425 bps with a 1% Libor floor.

WME IMG is an entertainment, sports and fashion company.

Leslie’s modifies pricing

Leslie’s Poolmart raised the spread on its $858 million term loan B to Libor plus 375 bps from Libor plus 325 bps, according to a market source.

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

Commitments are due on Friday, the source said.

Nomura is leading the deal that will be used to reprice an existing term loan B down from Libor plus 425 bps with a 1% Libor floor.

Leslie’s Poolmart is a Phoenix-based retailer of swimming pool supplies and related products.

Curo comes to market

Also in the primary market, Curo Health Services announced in the morning that it would hold a lender call at 2 p.m. ET on Thursday to launch a fungible $60 million incremental first-lien term loan B (B) due Feb. 5, 2022 and repricing of its existing $373 million term loan B (B2/B) due Feb. 5, 2022, a market source remarked.

The term loan debt is talked at Libor plus 475 bps to 500 bps with a 1% Libor floor and 101 soft call protection for six months, the source continued. The incremental term loan is talked with an original issue discount of 99.5, and the repricing is offered at par.

Goldman Sachs Bank USA, Jefferies Finance LLC, SunTrust Robinson Humphrey Inc., Nomura, Citizens and Credit Suisse Securities (USA) LLC are leading the deal.

The incremental loan will be used to repay second-lien notes, and the repricing will take the existing term loan down from Libor plus 550 bps with a 1% Libor floor.

Curo Health is a Mooresville, N.C.-based pure play hospice provider.

Royal Adhesive holds call

Royal Adhesive surfaced in the morning with plans to hold a lender call at 1 p.m. ET to launch a repricing of its $552 million covenant-light first-lien term loan due June 2022 talked at Libor plus 325 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

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

Credit Suisse Securities (USA) LLC is the left lead bank on the deal that will reprice the existing term loan down from Libor plus 350 bps with a 1% Libor floor.

Royal Adhesive is a South Bend, Ind.-based producer of specialty adhesives and sealants.

PGT launches

PGT hosted a lender call at 1 p.m. ET, launching a repricing of its $264 million term loan due February 2022 at talk of Libor plus 475 bps with a 1% Libor floor, a par issue price and 101 soft call protection for one year, a source remarked.

Commitments are due at noon ET on Feb. 9, the source added.

Deutsche Bank Securities Inc. is leading the deal that will reprice the existing term loan down from Libor plus 575 bps with a 1% Libor floor.

PGT is a Venice, Fla.-based manufacturer and supplier of residential impact-resistant windows and doors.

SRS releases talk

SRS Distribution came out with price talk on its fungible $140 million covenant-light incremental first-lien term loan due Aug. 25, 2022 and its fungible $40 million covenant-light incremental second-lien term loan due Feb. 24, 2023 with its afternoon lender call, according to a market source.

The incremental first-lien loan is talked at Libor plus 425 bps with a 1% Libor floor, an original issue discount talk of 99.75 and 101 soft call protection until June 21, 2017, and the incremental second-lien term loan is talked at Libor plus 875 bps with a 1% Libor floor, a discount of 99.5 and call protection of 103 until June 21, 2017, then 102 for a year and 101 for a year, the source said.

Spreads, floors and call protection on the incremental loans match the existing loans.

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

Barclays and UBS Investment Bank are leading the debt that will fund a distribution to shareholders.

Berkshire Partners is the sponsor.

SRS Distribution is a McKinney, Texas-based roofing products distributor.

Gateway readies deal

Gateway Casinos & Entertainment will hold a lenders’ presentation at 10 a.m. ET on Friday to launch a $440 million first-lien term loan B, a market source said.

The company’s senior secured facility also includes a C$125 million revolver.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to refinance existing debt, fund the acquisition of two “Gaming Bundles” from the Ontario Lottery and Gaming Corp., increase available liquidity for future growth capital expenditures and fund a dividend to shareholders.

Gateway is a Burnaby, B.C.-based owner of gaming properties.

Wall Street on deck

Wall Street Systems set a lender call for 10 a.m. ET on Friday to launch a repricing of its $329.5 million first-lien term loan and €279.3 million first-lien term loan, according to a market source.

UBS Investment Bank is leading the deal.

Current pricing on the U.S. and euro term loans is Libor/Euribor plus 375 basis points with a 1% floor.

Wall Street Systems is a provider of treasury management, central banking and FX trade processing solutions with U.S. headquarters in New York.

Hemisphere coming soon

Hemisphere Media Group will hold a lender call on Friday to launch a $225 million seven-year term loan B talked at Libor plus 325 bps to 350 bps with no Libor floor, an original issue discount of 99.5 to 99.75 and 101 soft call protection for six months, a market source remarked.

J.P. Morgan Securities LLC is leading the deal.

Proceeds will be used to reprice and extend an existing term loan B due 2020 that is priced at Libor plus 400 bps with a 1% Libor floor.

Hemisphere Media is a Coral Gables, Fla.-based Spanish-language media company.

ION joins calendar

ION Trading Finance scheduled a lender call for 9 a.m. ET on Friday to launch a repricing of its $349.1 million first-lien term loan and €651 million first-lien term loan, according to a market source.

UBS Investment Bank is leading the deal.

Current pricing on the term loans is Libor/Euribor plus 325 bps with a 1% floor.

ION Trading is a software provider of trading, treasury and workflow solutions.

Windstream right leads

In other news, right leads on Windstream Services LLC’s $580 million seven-year first-lien term loan (BB) surfaced, with the list including J.P. Morgan Securities LLC, Barclays, Bank of America Merrill Lynch, Morgan Stanley Senior Funding Inc., Citigroup Global Markets Inc., RBC Capital Markets, CoBank, SunTrust Robinson Humphrey Inc., MUFG, BNP Paribas Securities Corp. and Deutsche Bank Securities Inc., a market source remarked.

As previously reported, Credit Suisse Securities (USA) LLC is the left lead bank on the deal.

The loan, which launched with a lender call on Wednesday, 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.

Proceeds will be used to refinance an existing term loan.

Commitments are due at 5 p.m. ET on Tuesday.

Windstream is a Little Rock, Ark.-based provider of advanced communication and broadband, phone and digital TV services.

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