Press Ganey frees to trade; Ensemble Health, Citgo, Mannington Mills deal updates emerge

By Sara Rosenberg

New York, July 23 – Press Ganey Associates Inc. (Emerald TopCo Inc.) saw allocations go out on its credit facilities on Tuesday, and the first-lien term loan broke for trading, with levels quoted above its original issue discount.

Over in the primary market, Ensemble Health Partners reduced pricing on its term loan, removed a leverage-based step-down and revised the issue price, and Citgo Holding Inc. lowered the spread on its term loan and modified the original issue discount.

Also, Mannington Mills firmed pricing on its term loan B at the tight end of guidance, and BroadStreet Partners Inc., Midcontinent Communications and Veritext Corp. moved up the commitment deadlines for their term loans.

Additionally, CityMD (WP CityMD Bidco LLC), Chief Power Finance LLC, AmWINS Group LLC, Knowlton Development Corp. and Janus International Group released price talk with launch, and Claros Mortgage Trust Inc. surfaced with new deal plans.

Press Ganey breaks

Press Ganey’s credit facilities began trading on Tuesday, with the $1.25 billion seven-year first-lien term loan quoted at 99 5/8 bid, par 1/8 offered, according to a market source.

Pricing on the term loan is Libor plus 350 basis points with a 0% Libor floor, and it was sold at an original issue discount of 99.5. The loan has 101 soft call protection for six months.

On Monday, pricing on the term loan was reduced from talk in the range of Libor plus 375 bps to 400 bps, the discount was revised from 99, the MFN was modified to 50 bps for 12 months from 75 bps, and the company made some other documentation changes.

Barclays, Citigroup Global Markets Inc., Goldman Sachs Bank USA, J.P. Morgan Securities LLC, BMO Capital Markets and Deutsche Bank Securities Inc. are leading the $1.5 billion of credit facilities (B2/B), which also include a $250 million revolver.

Proceeds will be used with $453 million of privately placed second-lien notes to help fund the buyout of the company by Leonard Green & Partners LP and Ares Management Corp.

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

Press Ganey is a South Bend, Ind.-based provider of patient experience measurement and performance improvement solutions to health care organizations.

Ensemble tweaks loan

Switching to the primary market, Ensemble Health Partners lowered pricing on its $672 million seven-year first-lien term loan (B2/B) to Libor plus 375 bps from talk in the range of Libor plus 400 bps to 425 bps, eliminated a 25 bps leverage-based step-down and tightened the original issue discount to 99.5 from 99, a market source remarked.

The term loan still has a 25 bps step-down upon a qualifying initial public offering and a 0% Libor floor.

Recommitments are due at 10 a.m. ET on Wednesday, with allocations expected thereafter, the source added.

Goldman Sachs Bank USA, Antares Capital, Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and Guggenheim are leading the deal that will be used to help fund the buyout of a majority stake in the company by Golden Gate Capital from Bon Secours Mercy Health.

Closing is subject to regulatory approvals.

Ensemble Health is a revenue cycle management provider.

Citgo changes emerge

Citgo cut pricing on its $500 million four-year senior secured first-lien term loan (Caa1/B/B+) to Libor plus 700 bps from talk in the range of Libor plus 725 bps to 750 bps and adjusted the original issue discount to 98.5 from 98, according to a market source.

As before, the term loan has a 1% Libor floor and call protection of non-callable for one year, then at 101 in year two.

Recommitments are due at 10 a.m. ET on Wednesday, the source said.

Jefferies LLC is the left lead on the loan that will be used with a $1.37 billion senior secured notes offering and cash on hand to redeem all of the company’s $1.87 billion 10¾% senior secured notes due 2020 and to pay related accrued interest and redemption premiums.

Citgo is a Houston-based owner and operator of three large-scale, highly complex refineries.

Mannington Mills updated

Mannington Mills firmed pricing on its $300 million seven-year term loan B (B1/BB-) at Libor plus 400 bps, the low end of the Libor plus 400 bps to 425 bps talk, a market source said.

The term loan still has a 0% Libor floor and an original issue discount of 99.

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

The company’s $425 million of credit facilities also include a $125 million asset-based revolver.

RBC Capital Markets Corp. and SunTrust Robinson Humphrey Inc. are leading the term loan, and BofA Securities Inc. is the left lead on the revolver.

The credit facilities will be used to refinance existing debt.

Closing is expected this week.

Pro forma net leverage is 3.2x.

Mannington is a Salem, N.J.-based manufacturer of flooring solutions to customers in both the commercial and residential construction markets.

BroadStreet revises deadline

BroadStreet Partners accelerated the commitment deadline for its fungible $135 million add-on term loan B (B2) to noon ET on Wednesday from noon ET on Thursday, a market source remarked.

Pricing on the add-on term loan is Libor plus 325 basis points with a 1% Libor floor, in line with the company’s existing $735 million term loan B.

The add-on term loan is still talked with an original issue discount of 99.5 and 101 soft call protection for six months.

RBC Capital Markets LLC is the left lead on the deal that will be used for acquisitions and to repay revolver borrowings.

BroadStreet is a Columbus, Ohio-based insurance broker.

Midcontinent accelerated

Midcontinent Communications moved up the commitment deadline for its $685 million seven-year covenant-lite first-lien term loan B to noon ET on Thursday from Monday, according to a market source.

Talk on the term loan is Libor plus 225 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

SunTrust Robinson Humphrey Inc., Wells Fargo Securities LLC, CoBank, TD Securities (USA) LLC and MUFG are leading the deal that will be used to repay an existing term loan and notes.

Midcontinent Communications is a Sioux Falls, S.D.-based provider of cable television, local and long-distance digital telephone service and high-speed internet access.

Veritext adjusts timing

Veritext accelerated the commitment deadline for its fungible $50 million add-on term loan to noon ET on Wednesday from Thursday, a market source said.

Pricing on the add-on term loan is Libor plus 375 bps with a 0% Libor floor.

The add-on term loan is talked with an original issue discount of 99.5 and has 101 soft call protection for six months.

BNP Paribas Securities Corp. is leading the deal that will be used to repay revolver borrowings.

Veritext is a Livingston, N.J.-based provider of deposition and litigation support solutions for law firms and corporations.

CityMD sets guidance

In more primary happenings, CityMD held its bank meeting on Tuesday afternoon and announced price talk on its $900 million seven-year covenant-lite first-lien term loan at Libor plus 400 bps to 425 bps with a 0% Libor floor and an original issue discount of 99.5, according to a market source.

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

The company’s $1.05 billion of credit facilities (B2/B-) also include a $150 million revolver.

Commitments are due at 5 p.m. ET on Aug. 6.

Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, BofA Securities Inc., Jefferies LLC, KeyBanc Capital Markets, ING, SunTrust Robinson Humphrey Inc., Regions Bank and Houlihan Lokey are leading the deal that will be used to fund the acquisition of Summit Medical Group, a multispecialty medical group, and to refinance existing debt.

CityMD is an urgent care provider.

Chief Power talk

Chief Power Finance launched at its morning bank meeting its $335 million five-year term loan B with talk of Libor plus 800 bps to 825 bps with a 2% Libor floor, an original issue discount of 98 and call protection of non-callable for one year, then at 102 in year two and 101 in year three, a market source said.

The company’s $380 million of credit facilities also include a $45 million 4.5-year super senior revolver that will be undrawn at close.

Commitments are due at noon ET on Aug. 6, the source added.

Barclays and Morgan Stanley Senior Funding Inc. are leading the deal that will be used to refinance existing credit facilities and partially finance the acquisitions of PSEG’s KeyCon ownership interests. The refinancing transaction also contemplates the un-levered contribution of KeyCon’s O&M contract into Chief.

ArcLight Energy Partners Fund V LP is the sponsor.

Chief Power is the indirect owner of undivided ownership interests in two coal-fired generating facilities in PJM.

AmWINS proposed terms

AmWINS held its call in the afternoon, launching its fungible $250 million incremental first-lien term loan (B1/B+) due January 2024 at original issue discount talk of 99.05, according to a market source.

The incremental term loan is priced at Libor plus 275 bps with a 1% Libor floor, and has 101 soft call protection for six months.

Commitments are due at the close of business on Monday, the source said.

Goldman Sachs Bank USA, Barclays, J.P. Morgan Securities LLC and Wells Fargo Securities LLC are leading the deal that will be used for general corporate purposes, which will include acquisitions currently under letters of intent.

AmWINS is a Charlotte, N.C.-based specialty insurance broker.

Knowlton launches

Knowlton came out with original issue discount talk of 99.5 on its fungible $85 million incremental first-lien term loan (B) due Dec. 21, 2025 shortly before launching the debt on a morning lender call, a market source said.

The incremental term loan is priced at Libor plus 425 bps with a 0% Libor floor.

Commitments are due on July 30, the source added.

Jefferies LLC is the left lead on the deal that will be used to fund an acquisition.

Knowlton Development is a Quebec-based custom formulator and solution services partner to beauty, personal care and home/industrial care companies.

Janus holds call

Janus International Group hosted its lender call in the afternoon and launched its $180 million incremental first-lien term loan (B) at talk of Libor plus 375 bps with an original issue discount of 99, according to a market source.

UBS Investment Bank and Morgan Stanley Senior Funding Inc. are leading the deal that will be used to repay an existing second-lien term loan and fund a dividend.

Janus is a Temple, Ga.-based manufacturer of roll up and swing doors, hallway systems and re-locatable storage units for the self-storage industry.

Claros joins calendar

Claros Mortgage Trust set a lender call for 11 a.m. ET on Wednesday to launch a $350 million seven-year senior secured term loan B (Ba3/BB-) talked at Libor plus 325 bps with a 0% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months, according to a market source.

Commitments are due on Aug. 5, the source said.

J.P. Morgan Securities LLC is leading the deal that will be used for general corporate purposes and new loan origination.

Claros Mortgage Trust is a commercial mortgage real estate investment trust with a focus on lending on large scale, transitional assets.

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