CityMD, Albertsons, Savage, Janus break; WestJet, DaVita, Park Place changes emerge

By Sara Rosenberg

New York, Aug. 7 – CityMD (WP CityMD Bidco LLC) raised pricing on its term loan, revised the Libor floor, widened the original issue discount and extended the call protection before freeing up for trading on Wednesday.

Other deals to make their way into the secondary market during the session included Albertsons Cos. Inc., Savage Enterprises LLC and Janus International Group.

In more happenings, WestJet Airlines Ltd. set the spread on its term loan at the low side of guidance, added a step-down, adjusted the Libor floor and tightened the issue price, and DaVita Inc. increased the size of its term loan B and modified the original issue discount.

Also, Park Place Technologies tightened the issue price on its add-on second-lien term loan, Clear Channel Outdoor Holdings Inc. accelerated the commitment deadline for its credit facilities, Q Holding Co. released price talk on its term loan B with launch, and Idera Inc. surfaced with new deal plans.

CityMD reworked, trades

CityMD flexed pricing on its $900 million seven-year covenant-lite first-lien term loan to Libor plus 450 basis points from talk in the range of Libor plus 400 bps to 425 bps, changed the Libor floor to 1% from 0%, revised the original issue discount to 99 from 99.5 and extended the 101 soft call protection to one year from six months, according to a market source.

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

On Wednesday, the term loan broke for trading and was quoted at 99 bid, 99½ offered, another source added.

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.

Albertsons hits secondary

Albertsons’ term loan debt also freed to trade, with both the $1.6 billion seven-year covenant-lite first-lien term loan B-8 (Ba2/BB) and the $1.5 billion covenant-lite first-lien term loan B-7 due November 2025 quoted at 99 7/8 bid, par 1/8 offered, a market source remarked.

Pricing on both term loans is Libor plus 275 bps with a 0.75% Libor floor, and they were sold at an original issue discount of 99.5. The loans have 101 soft call protection for six months.

During syndication, the term loan B-8 was downsized from $1.7 billion as the company’s senior notes offering was upsized to $750 million from $500 million, pricing on the term loan B-8 was reduced from Libor plus 300 bps, and, following that flex, the term loan B-7 was launched to investors.

Credit Suisse Securities (USA) LLC is the left lead on the deal.

Proceeds from the term loan B-8 will be used with the notes and cash on hand to refinance about $3.2 billion of existing term loan debt, and the term loan B-7 will be used to reprice an existing term loan B-7 down from Libor plus 300 bps with a 0.75% Libor floor.

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

Savage frees up

Savage Enterprises’ $960.25 million first-lien term loan B (B1/B+) due Aug. 1, 2025 broke for trading too, with levels quoted at par 3/8 bid, par 7/8 offered, a trader said.

Pricing on the term loan B is Libor plus 400 bps with a 0% Libor floor and it was sold at an original issue discount of 99.75. The debt has 101 soft call protection for six months.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to reprice an existing term loan B down from Libor plus 450 bps with a 0% Libor floor.

Closing is expected on Friday.

Savage is a Salt Lake City-based supply chain provider.

Janus starts trading

Janus International Group’s fungible $106 million incremental first-lien term loan due February 2025 hit the secondary market as well, with levels quoted at 99 bid, 99½ offered, according to a market source.

Pricing on the incremental term loan is Libor plus 375 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 six months.

During syndication, the incremental term loan was downsized from $180 million as a planned $75 million dividend was removed from the transaction.

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 pay fees and expenses.

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.

WestJet sets changes

Back in the primary market, WestJet Airlines finalized pricing on its $1,955,000,000 seven-year first-lien term loan at Libor plus 300 bps, the low end of the Libor plus 300 bps to 325 bps talk, and added a step-down to Libor plus 275 bps upon achievement of corporate ratings of either Ba2 from Moody’s or BB- from S&P, a market source remarked.

Also, the Libor floor on the term loan was revised to 1% from 0%, the original issue discount was changed to 99.5 from 99, and ticking fees were outlined as half the margin for days 31 to 60 and the full margin thereafter, the source continued.

Additionally, the MFN was modified to 50 bps for life from 75 bps with a six months sunset, the MFN carve-out clause was removed and the inside maturity clause was eliminated.

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

The company’s $2,305,000,000 of credit facilities (Ba2/BB-/BB+) also include a $350 million revolver.

WestJet being acquired

WestJet’s new credit facilities will be used with equity to fund its buyout by Onex Corp. for C$31.00 per share. The transaction is valued at about C$5 billion, including assumed debt.

Barclays, Morgan Stanley Senior Funding Inc., RBC Capital Markets LLC, Citigroup Global Markets Inc., UBS Investment Bank, BMO Capital Markets, Bank of Nova Scotia and TD Securities (USA) LLC are leading the debt.

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

Closing is expected in the latter part of 2019 or early 2020, subject to court and shareholder approval, and regulatory approvals.

WestJet is a Calgary, Alta.-based airline company.

DaVita tweaks loan

DaVita lifted its seven-year term loan B to $2.75 billion from $2.5 billion and changed the original issue discount to 99.75 from revised talk of 99.5 and initial talk in the range of 99 to 99.5, according to a market source.

As before, the term loan B is priced at Libor plus 225 bps with a 0% Libor floor and has 101 soft call protection for six months.

Previously in syndication, pricing on the term loan B was lowered from Libor plus 250 bps.

Recommitments for the term loan B are due at 10 a.m. ET on Thursday, the source said.

The company’s now $5.5 billion of senior secured credit facilities (Ba1/BBB-) also include a $1 billion five-year revolver and a $1.75 billion five-year term loan A, which, based on filings with the Securities and Exchange Commission, are expected to have initial pricing of Libor plus 150 bps.

DaVita lead banks

Wells Fargo Securities LLC, Credit Agricole, J.P. Morgan Securities LLC, MUFG, BofA Securities, Inc., Barclays, Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc. and SunTrust Robinson Humphrey Inc. are leading DaVita’s credit facilities.

Proceeds will be used to repay revolver and term loan borrowings, to redeem $1.25 billion of 5¾% senior notes, to buy back common stock, to pay fees and expenses and for general corporate purposes.

DaVita is a Denver-based provider of kidney dialysis services.

Park Place updated

Park Place Technologies modified the original issue discount on its fungible $30.5 million add-on second-lien term loan to 98.875 from 98.625, according to a market source.

The add-on second-lien term loan is priced at Libor plus 800 bps with a 1% Libor floor.

Recommitments were due at 5 p.m. ET on Wednesday and allocations are expected on Thursday morning, the source said.

The company is also getting a fungible $30.6 million add-on first-lien term loan of which the majority is privately placed with lead arranger Golub Capital.

Pricing on the add-on first-lien term loan is Libor plus 400 bps with a 1% Libor floor, and the add-on as well as existing first-lien term loan are getting 101 soft call protection for six months.

The new debt will be used to fund the acquisition of Entuity Network Analytics and support a minority equity sale to Charlesbank Capital Partners.

Park Place Technologies is a Cleveland-based provider of post-warranty maintenance for storage, server and networking hardware.

Clear Channel accelerated

Clear Channel Outdoor moved up the commitment deadline for its $2.2 billion of credit facilities to 5 p.m. ET on Thursday from noon ET on Tuesday, a market source remarked.

The facilities consist of a $200 million revolver and a $2 billion seven-year covenant-lite first-lien term loan B.

Talk on the term loan B is Libor plus 350 bps to 375 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

Morgan Stanley Senior Funding Inc., Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC are leading the deal that will be used to refinance existing debt and pay related fees and expenses. Deutsche is the administrative agent.

Clear Channel Outdoor is a New York-based outdoor advertising company.

Q Holding guidance

Q Holding held its lender call on Wednesday, launching its $275 million term loan B due December 2023 at talk of Libor plus 450 bps to 475 bps with a 1% Libor floor and 101 soft call protection for six months, a market source said.

RBC Capital Markets and ING Capital are leading the deal that will be used to amend and extend an existing $275 million term loan B due December 2021 that is priced at Libor plus 500 bps with a 1% Libor floor.

Consenting lenders are being offered a 50 bps fee and new money lenders are being offered an original issue discount of 99.5, the source added.

Commitments/consents are due at noon ET on Aug. 15.

Q Holding, a portfolio company of 3i Group, is a Solon, Ohio-based provider of highly engineered products and elastomeric solutions for the global life sciences and electrical management markets.

Idera joins calendar

Idera set a lender call for 11 a.m. ET on Thursday to launch fungible $40 million incremental first-lien term loan due June 2024, according to a market source.

Like the existing first-lien term loan, the incremental term loan is priced at Libor plus 450 bps.

Jefferies LLC is leading the deal that will be used with cash from the balance sheet to fund a strategic acquisition.

Idera is a Houston-based provider of database, application development and testing software.

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