TricorBraun tweaks deal; Micro Focus, Griffon, Covis, Trac, Maravai, Simply disclose talk

By Sara Rosenberg

New York, Jan. 10 – In the primary market on Monday, TricorBraun Holdings Inc. revised the original issue discount on its incremental first-lien term loan.

Also, Micro Focus International plc, Griffon Corp., Covis Pharma, Trac (Stonepeak Tarus Lower Holdings LLC), Maravai LifeSciences (Maravai Intermediate Holdings LLC) and Simply Good Foods (Atkins Nutritional) released price talk with launch.

Furthermore, Fluidra (Zodiac Pool Solutions LLC), Summit Behavioral Healthcare LLC, Arxada (Herens US Holdco Corp.), North American Bancard (NAB Holdings LLC) and Crocs Inc. joined this week’s new issue calendar.

TricorBraun tightens

TricorBraun adjusted the original issue discount on its fungible $180 million covenant-lite incremental first-lien term loan due March 3, 2028 (B2/B-) to 99 from 98.65, a market source remarked.

Like the existing term loan, the incremental term loan is priced at Libor plus 325 basis points with a 0.5% Libor floor.

Recommitments are due at noon ET on Tuesday, the source added.

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to repay ABL borrowings.

TricorBraun is a St. Louis-based provider of packaging products.

Micro Focus launches

Micro Focus held a lender call at 10 a.m. ET on Monday to launch a $1.6 billion equivalent U.S. and euro five-year senior secured term loan B, according to an informed source.

The U.S. term loan has a size of $1.1 billion and the euro term loan has a size of €442 million.

Talk on the U.S. term loan is SOFR+CSA plus 375 bps to 400 bps with a 0.5% floor and an original issue discount of 99, and talk on the euro term loan is Euribor plus 400 bps to 425 bps with a 0% floor and a discount of 99.5. Both loans have 101 soft call protection for one year.

CSA on the U.S. term loan is a 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

Commitments are due on Thursday, the source added.

JPMorgan Chase Bank, HSBC, NatWest, Citigroup Global Markets Inc., BofA Securities Inc. and Goldman Sachs are leading the deal that will be used to a refinance a portion of an existing U.S. term loan B due June 2024 and a euro term loan B due June 2024, and pay related fees and expenses.

Micro Focus is a Newbury, England-based enterprise software company.

Griffon guidance

Griffon launched on its morning call its $750 million seven-year covenant-lite term loan B (Ba2/BB) at talk of SOFR+CSA plus 350 bps with a 0.5% floor and an original issue discount of 99 to 99.5, a market source said.

CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

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

Commitments are due at noon ET on Jan. 20, the source added.

BofA Securities Inc., BNP Paribas Securities Corp., Deutsche Bank Securities Inc. and Wells Fargo Securities LLC are leading the deal that will be used with borrowings under the company’s existing revolver and cash on hand to fund the $845 million acquisition of Hunter Fan Co. from MidOcean Partners.

Closing is expected during the week of Jan. 24.

Based on LTM pro forma adjusted EBITDA of $376 million, gross secured leverage is 2.3x and total leverage is 5x. Net secured leverage is 1.8x and net total leverage is 4.6x.

Griffon is a New York-based diversified management and holding company. Hunter Fan is a Memphis-based designer and distributor of residential ceiling, commercial and industrial fans.

Covis sets talk

Covis Pharma came out with talk of SOFR+CSA plus 625 bps with a 0.75% floor, an original issue discount of 98 to 99 and 101 soft call protection for six months on its $350 million five-year senior secured term loan B (B) that launched with a call in the morning, a market source remarked.

CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

Commitments are due at 5 p.m. ET on Jan. 26, the source added.

Barclays is the left lead on the deal, which will be used with $850 million equivalent of U.S. and euro other secured debt to refinance existing debt, including the debt incurred to fund the acquisition of products from AstraZeneca, and to pay fees and expenses.

Covis is a Luxembourg-based pharmaceutical company with a focus on medicines in respiratory and hospital/critical care.

Trac proposed terms

Trac launched on its morning call its $350 million eight-year second-lien term loan (Caa1/B+) at talk of SOFR+CSA of 10 bps plus 700 bps with a 0.5% floor and an original issue discount of 98 to 98.5, according to a market source.

The term loan has call protection of 102 in year one and 101 in year two.

Commitments are due at 5 p.m. ET on Jan. 24.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to fund a distribution to the sponsor.

Trac is a marine chassis pool manager and equipment provider.

Maravai repricing

Maravai LifeSciences launched without a call a $545.5 million senior secured covenant-lite term loan B (B1/B+) due Oct. 19, 2027 talked at SOFR plus 300 bps to 325 bps with a 0.5% floor, a par issue price and 101 soft call protection for six months, a market source said.

The term loan has no CSA.

Commitments are due on Friday, the source added.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to reprice an existing term loan B.

Maravai is a San Diego-based provider of life science reagents and services.

Simply Good holds call

Simply Good Foods emerged in the morning with plans to hold a lender call at 1 p.m. ET to launch a $431.5 million first-lien term loan B due July 7, 2024 talked at SOFR+CSA plus 325 bps with a 0.5% floor, a par issue price and 101 soft call protection for six months, according to a market source.

CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

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

Barclays, Deutsche Bank Securities Inc., BMO Capital Markets and Goldman Sachs Bank USA are leading the deal that will be used to reprice an existing term loan B from Libor plus 375 bps with a 1% Libor floor.

Simply Good is a Denver-based developer, marketer and seller of nutritional foods and snacking products.

Fluidra on deck

Fluidra will hold a lender call at 10 a.m. ET on Wednesday, with small group meeting available on Thursday and Friday, to launch a €650 million equivalent U.S. seven-year covenant-lite term loan B and a €450 million euro seven-year covenant-lite term loan B, a market source remarked.

The U.S. term loan has a 0.5% floor, the euro term loan has a 0% floor and both loans have 101 soft call protection for six months, the source added.

Commitments are due at 10 a.m. ET on Jan. 21.

BBVA, Citigroup Global Markets Inc. and HSBC are the joint global coordinators and bookrunners on the deal, with BBVA the sole sustainability coordinator, Citi the sole left lead on the U.S. term loan and HSBC the sole left lead on the euro term loan. BofA Securities Inc., BNP Paribas Securities Corp., JPMorgan Chase Bank and Santander are joint bookrunners.

The loans will be used to refinance existing debt, for general corporate purposes and to pay related transaction fees and expenses.

Fluidra is a Sabadell, Spain-based provider of pool equipment and wellness solutions.

Summit readies deal

Summit Behavioral set a lender call for 1 p.m. ET on Wednesday to launch a fungible $150 million incremental first-lien term loan, according to a market source.

Pricing on the incremental term loan is Libor plus 475 bps with a 0.75% Libor floor, in line with existing term loan pricing, the source said.

Jefferies LLC is leading the deal that will be used to fund the acquisition of Strategic Behavioral Health.

Pro forma for the transaction, the first-lien term loan will total $609 million.

Summit Behavioral is a Franklin, Tenn.-based behavioral health services provider with a focus on the substance use disorder and acute psychiatric treatment end markets.

Arxada joins calendar

Arxada scheduled a lender call for 9 a.m. ET on Tuesday to launch a fungible CHF 621 million equivalent U.S. and euro add-on term loan B (B) due July 2028, which is expected to be split about 50/50 between U.S. and euro tranches, a market source said.

Pricing on the add-on U.S. term loan is Libor plus 400 bps with a 0.75% Libor floor, and pricing on the add-on euro term loan is Euribor plus 400 bps with a 0% floor, both in line with existing term loan pricing.

Original issue discount talk is not yet available.

Commitments are due at noon ET on Jan. 19, the source added.

Arxada lead banks

Deutsche Bank, UBS Investment Bank, RBC Capital Markets, Credit Suisse, CACIB, Intesa, MUFG, Societe Generale, Standard Chartered and UniCredit are leading Arxada’s transaction, with Deutsche the left lead on the U.S. loan, and Deutsche, UBS, RBC and Credit Suisse the physical bookrunners on the euro loan. Credit Suisse is the agent.

The new debt will be used to help fund the already completed acquisitions of Troy Corp., a manufacturer of microbial control solutions and performance additives, and Enviro Tech Chemical Services, a manufacturer of antimicrobial and biocidal products, and pay acquisition related fees and expenses.

Arxada, formerly known as Lonza Specialty Ingredients, is a Basel, Switzerland-based specialty chemicals company.

NAB coming soon

North American Bancard will hold a lender call at 10:30 a.m. ET on Tuesday to launch a fungible $300 million incremental covenant-lite first-lien term loan (B1/B+) due Nov. 23, 2028, according to a market source.

Pricing on the incremental term loan is SOFR+CSA plus 300 bps with a 25 bps step-down at 2.85x net senior secured leverage and a 0.5% floor, which matches existing term loan pricing. Original issue discount talk is not yet available

CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

The incremental term loan has 101 soft call protection through May 23, 2022.

Commitments are due at 5 p.m. ET on Jan. 18, the source added.

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to fund the acquisition of CardWorks.

North American Bancard is a Troy, Mich.-based provider of payment processing solutions.

Crocs sets call

Crocs scheduled a lender call for 12:30 p.m. ET on Tuesday to launch its previously announced $2 billion senior secured first-lien term loan B (Ba2), a market source remarked.

Citigroup Global Markets Inc. is the left lead on the deal that will be used with $50 million of borrowings under the company’s existing senior revolver to help fund the acquisition of Heydude, a casual footwear brand, for $2.5 billion, split between $2.05 billion in cash and $450 million in Crocs shares.

Closing is expected this quarter, subject to customary conditions and regulatory approval.

Net debt is anticipated to be about 3x.

Crocs is a Broomfield, Colo.-based casual footwear company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.