System One breaks; Sovos, Solera revised; Heartland, Dole, EverCommerce, Interior set talk

By Sara Rosenberg

New York, June 2 – System One Holdings LLC’s add-on term loan B made its way into the secondary market on Wednesday, with levels quoted above its issue price.

Meanwhile, in the primary market, Sovos Brands Intermediate Inc. lowered the spread on its first-lien term loan and modified the original issue discount, and Solera updated price talk on its term loans.

Also, Heartland Dental LLC, Dole plc, EverCommerce Inc., Interior Logic Group (Signal Parent Inc.), Boyd Corp. (LTI Holdings Inc.) and ERM released price talk with launch.

Furthermore, Osmose Utilities Services, Madison IAQ, Fairbanks Morse Defense (Arcline FM Holding LLC), Prestige Brands Inc. and Nuvei Corp. joined this week’s calendar.

System One frees up

System One’s fungible $30 million add-on term loan B began trading, with levels quoted at par 3/8 bid, 101 offered, according to a market source.

Pricing on the add-on term loan is Libor plus 450 basis points with a 0.75% Libor floor and it was issued at par. The debt has 101 soft call protection through Sept. 2.

During syndication, the issue price on the add-on term loan was tightened from 99.75.

Truist Securities is leading the deal that will be used for acquisition financing.

System One is a Pittsburgh-based provider of specialized workforce solutions and integrated services.

Sovos flexes

Switching to primary happenings, Sovos Brands trimmed pricing on its $580 million seven-year covenant-lite first-lien term loan (B2/B) to Libor plus 425 bps from Libor plus 475 bps and changed the original issue discount to 99.75 from talk in the range of 99 to 99.5, according to a market source.

As before, the first-lien term loan has a 25 bps step-down at 3.8x first-lien net leverage and a 50 bps step-down upon an initial public offering, a 0.75% Libor floor and 101 soft call protection for six months.

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

The company is also getting a $200 million privately placed second-lien term loan (CCC+).

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to repay existing debt and fund a distribution to shareholders.

Sovos is a Berkeley, Calif.-based food company.

Solera tweaked

Solera set pricing on its $3.38 billion seven-year term loan (B2/B-) at Libor plus 400 bps, the low end of the Libor plus 400 bps to 425 bps talk, cut the Libor floor to 0.5% from 0.75% and changed the original issue discount to 99.5 from 99, a market source said.

The U.S. term loan still has a 25 bps step-down at 4.5x first-lien net leverage.

In addition, pricing on the company’s €1.2 billion seven-year term loan (B2/B-) firmed at Euribor plus 400 bps, the low end of the Euribor plus 400 bps to 425 bps talk, and original issue discount talk was modified to a range of 99 to 99.5 from 99. The 0% floor was unchanged.

Also, the issue price talk on the £300 million seven-year term loan (B2/B-) was changed to a range of 99 to 99.25 from 99, the source continued. This tranche is still priced at Sonia plus 525 bps with a 0% floor.

All of the term loans continue to include 101 soft call protection for six months.

Solera lead banks

Goldman Sachs, JPMorgan Chase Bank, Barclays, BNP Paribas Securities Corp., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Guggenheim, HSBC Securities, Nomura, Macquarie, Jefferies LLC and KKR Capital Markets are leading Solera’s term loans, with Goldman the left lead on the U.S. loan and JPMorgan the left lead on the euro and GBP loans.

Recommitments for the U.S. term loan were due at 5 p.m. ET on Wednesday, and recommitments for the euro and GBP term loans are due at 5 a.m. ET on Thursday, the source added. Allocations are expected on Thursday.

The loans will be used to refinance existing debt and for other general corporate purposes such as funding certain acquisitions and to pay for related transaction fees and expenses.

Solera is a Westlake, Tex.-based provider of integrated vehicle lifecycle management.

Heartland guidance

Heartland Dental held its lender call on Wednesday and announced price talk on its $660 million incremental first-lien term loan due April 30, 2025 at Libor plus 400 bps with a 0% Libor floor and an original issue discount of 99, according to a market source.

The incremental term loan has 101 soft call protection for six months.

Commitments are due on June 9, the source added.

Jefferies LLC, KKR Capital Markets LLC, TD Securities (USA) LLC, BMO Capital Markets and Macquarie Capital (USA) Inc. are leading the deal that will be used to fund the acquisition of American Dental Partners Inc.

Closing is expected this quarter, subject to customary conditions.

Heartland Dental is an Effingham, Ill.-based dental support organization. American Dental is a Wakefield, Mass.-based dental support organization.

Dole price talk

Dole launched on its call its $540 million term loan B due 2028 at talk of Libor plus 225 bps to 250 bps with a 0.5% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months, a market source said.

Commitments are due at 5 p.m. ET on June 10, the source added.

The company’s $1.44 billion of credit facilities (BB+) also include a $600 million revolver due 2026 and a $300 million term loan A due 2026, the source said.

BofA Securities Inc., Rabobank and Goldman Sachs Bank USA are leading the deal that will be used to help fund the merger of Dole Food Co. Inc. and Total Produce plc to create Dole plc and refinance existing debt at the companies.

Under the merger, Total Produce shareholders will receive 82.5% of Dole plc shares and Castle & Cooke Inc. shareholders, which own a 55% interest in Dole’s parent company, will receive 17.5% of Dole plc shares.

Closing is subject to Total Produce shareholders approval, regulatory approvals and customary conditions.

Dole plc is a Dublin, Ireland-based fresh produce company.

EverCommerce launches

EverCommerce came out with talk of Libor plus 350 bps to 375 bps with a 0.5% Libor floor, an original issue discount of 99 and 101 soft call protection for six months on its $300 million seven-year term loan (B1/B+) that launched with a call in the morning, a market source remarked.

Commitments are due on June 15, the source added.

KKR Capital Markets and RBC Capital Markets are leading the deal that, which will be used for a recapitalization in connection with the company’s initial public offering of common stock.

EverCommerce is a Denver-based service commerce platform.

Interior proposed terms

Interior Logic Group launched on its afternoon call its $230 million incremental senior secured covenant-lite first-lien term loan B (B1) due April 1, 2028 with original issue discount talk of 98 to 98.5, according to a market source.

The incremental term loan is priced at Libor plus 350 bps with a 0.75% Libor floor, in line with the existing term loan, and has 101 soft call protection until Oct. 1.

Commitments are due at 5 p.m. ET on June 9, the source added.

Citigroup Global Markets Inc., Goldman Sachs Bank USA, BofA Securities Inc., RBC Capital Markets and US Bank are leading the deal that will be used to fund the acquisition of Residential Design Services from Select Interior Concepts Inc. for about $215 million.

Closing is expected in mid-June.

Interior Logic is an Irvine, Calif.-based provider of interior design, supply chain and installation management solutions to single-family homebuilders.

Boyd holds call

Boyd hosted a lender call at 10 a.m. ET on Wednesday to launch a $125 million add-on first-lien term loan (B2/B-) due 2026 and a $75 million delayed-draw term loan (B2/B-) due 2026 with 12-month availability, both talked with an original issue discount of 99, a market source said.

Pricing on the term loans is Libor plus 475 bps with a 0% Libor floor, and the delayed-draw term loan has a ticking fee of half the spread from days 31 to 60 and the full spread thereafter.

Upon the fully drawn delayed-draw term loan, both tranches are expected to be fungible with the company’s existing first-lien term loan due 2026, and all of this debt is getting 101 soft call protection for six months.

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

JPMorgan Chase Bank, RBC Capital Markets and Jefferies LLC are leading the deal that will be used to fund an acquisition.

Boyd is a Pleasanton, Calif.-based provider of highly engineered thermal management and environmental sealing solutions.

ERM sets talk

ERM launched on its morning call its $75 million equivalent incremental term loan that can be denominated in U.S. dollars or euros at talk of Libor/Euribor plus 350 bps with a 0% floor and an original issue discount of 99.75, according to a market source.

The company also launched an extension of its $500 million first-lien term loan by two years to 2028 and its €180 million first-lien term loan by two years to 2028, and is offering lenders a 25 bps consent fee.

Commitments are due on June 10, the source added.

KKR Capital Markets, BofA Securities Inc., Citigroup Global Markets Inc., HSBC Securities, ING, JPMorgan Chase Bank and SMBC are leading the deal.

The incremental term loan will be used to repay some second-lien term loan borrowings.

ERM is a pure play sustainability consultancy.

Osmose readies deal

Osmose Utilities set a lender call for 1 p.m. ET on Thursday to launch a $760 million first-lien term loan (B2/B), according to a market source.

The company is also getting a $270 million privately placed second-lien term loan, the source said.

Goldman Sachs Bank USA, RBC Capital Markets, UBS Investment Bank and Societe Generale are leading the deal that will be used to refinance the company’s existing capital structure and fund a distribution to shareholders.

EQT Infrastructure is the sponsor.

Osmose Utilites is a Peachtree City, Ga.-based provider of structural integrity management and resiliency services for utility and telecommunications infrastructure within the U.S.

Madison IAQ on deck

Madison IAQ will hold a lender call at 11 a.m. ET on Thursday to launch a $1.925 billion first-lien term loan (B1), a market source remarked.

Goldman Sachs Bank USA, Citigroup Global Markets Inc., CIBC, Barclays, BofA Securities Inc., HSBC Securities (USA) Inc., MUFG, Capital One, Golub and Stifel are leading the deal.

The term loan will be used with $600 million of other secured debt, $885 million of unsecured debt and equity from Madison Industries to fund the acquisition of Nortek Air from Melrose Industries plc and refinance Madison IAQ’s existing debt.

Closing is expected this summer.

Madison IAQ is a provider of indoor air quality solutions. Nortek Air is a provider of critical air management, thermal and HVAC solutions.

Fairbanks joins calendar

Fairbanks Morse Defense will hold a bank meeting at 10:30 a.m. ET on Friday to launch $740 million of credit facilities, according to a market source.

The facilities consist of a $75 million five-year revolver (B2/B), a $510 million seven-year senior secured first-lien term loan (B2/B) and a $155 million eight-year second-lien term loan (Caa2/CCC+), the source said.

Included in the first-lien term loan is 101 soft call protection for six months, and the second-lien term loan has hard call protection of 102 in year one and 101 in year two.

Jefferies LLC, BMO Capital Markets and UBS Investment Bank are leading the deal that will be used to refinance existing debt and fund a distribution to shareholders.

Fairbanks Morse Defense is a Beloit, Wis.-based provider of propulsion systems, ancillary power, motors and controllers for the U.S. Navy and U.S. Coast Guard, and provider of associated parts and maintenance services.

Prestige coming soon

Prestige Brands surfaced with plans to hold a lender call at 11 a.m. ET on Thursday to launch a $600 million seven-year senior secured term loan, a market source said.

The term loan has 101 soft call protection for six months.

Commitments are due at noon ET on June 11, the source added.

Barclays is the left lead on the deal that will be used to fund the acquisition of a portfolio of over-the-counter brands from Akorn Operating Co. LLC for $230 million in cash and refinance an existing senior secured term loan B.

Closing is expected during the company’s fiscal second quarter, subject to customary conditions, including clearance under the Hart-Scott Rodino Antitrust Improvements Act of 1976.

Prestige Brands is a Tarrytown, N.Y.-based marketer and distributor of over-the-counter healthcare and household cleaning products.

Nuvei plans call

Nuvei scheduled a lender call for 2 p.m. ET on Thursday to launch a loan transaction, according to a market source.

BMO Capital Markets is leading the deal.

Nuvei is a Montreal-based payment technology company.

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