Medical Solutions, Excel Fitness, MDVIP free to trade; DuBois tweaks loan amounts

By Sara Rosenberg

New York, Oct. 3 – Medical Solutions reworked its incremental first- and second-lien term loan sizes and firmed the spread on the first-lien debt at the high end of guidance before breaking for trading on Thursday, and deals from Excel Fitness Holdings Inc. and MDVIP LLC surfaced in the secondary market too.

In more happenings, DuBois Chemicals Inc. downsized its first- and second-lien term loans, Iridium Satellite LLC, ProQuest LLC, Syncsort Inc., Flexitallic and Delek US Holdings Inc. disclosed price talk with launch, and Buckeye Partners LP joined the near-term primary calendar.

Medical Solutions revised

Medical Solutions raised its fungible incremental first-lien term loan due June 2024 to $291 million from $270 million and set pricing at Libor plus 450 basis points, the high end of the Libor plus 425 bps to 450 bps talk, according to a market source.

With the first-lien upsizing, the non-fungible incremental second-lien term loan due June 2025 was scaled back to $75 million from $100 million, the source said.

As before, the incremental first-lien term loan has a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and the incremental second-lien term loan is priced at Libor plus 875 bps with a 1% Libor floor and a discount of 98 and has hard call protection of 102 in year one and 101 in year two.

Along with the incremental term loans, the company plans to upsize its revolver by $20 million.

UBS Investment Bank is leading the deal. ING and Madison Capital Funding are joint bookrunners on the revolver and first-lien term loan.

Medical frees up

Recommitments for Medical Solutions’ bank debt were due at 1 p.m. ET on Thursday and the loans broke for trading later in the day, with the incremental first-lien term loan quoted at 99¼ bid, 99¾ offered and the incremental second-lien term loan quoted at 98 bid, par offered, the source added.

Proceeds will be used to fund the acquisition of C&A Industries Inc.

Closing is expected by the end of the third quarter, subject to customary conditions, including regulatory clearance.

In connection with this transaction, pricing on the company’s existing first-lien term loan will increase from Libor plus 375 bps with a 1% Libor floor to match the incremental term loan pricing, while existing second-lien term loan pricing of Libor plus 825 bps with a 1% Libor floor will be unchanged.

Medical Solutions is an Omaha-based health care staffing company. C&A is an Omaha-based staffing and recruitment firm.

Excel Fitness breaks

Excel Fitness’ $260 million six-year first-lien term loan started trading too, with levels seen at 99 bid, par offered, a market source said.

Pricing on the term loan is Libor plus 525 bps with a 1% Libor floor and it was sold at an original issue discount of 99. The loan has 101 soft call protection for one year.

During syndication, pricing on the term loan firmed at the high end of the Libor plus 500 bps to 525 bps talk, the Libor floor was revised from 0%, the maturity was shortened from seven years, and changes were made to restricted payments, incremental, mandatory prepayments and EBITDA definition.

The company’s $270 million of credit facilities (B3/B) also include a $10 million five-year revolver.

Jefferies LLC, Fifth Third Bank and BMO Capital Markets are leading the deal that will be used to refinance the company’s existing credit facility, to fund cash to the balance sheet for growth, to pay a distribution to shareholders and to pay transaction related fees and expenses.

Excel Fitness is an operator and developer of Planet Fitness clubs.

MDVIP hits secondary

MDVIP’s fungible $45 million incremental first-lien term loan (B3/B) due Nov. 15, 2024 broke as well, with levels quoted at 99 bid, par offered, a market source remarked.

Pricing on the incremental term loan is Libor plus 425 bps with a 1% Libor floor, in line with existing first-lien term loan pricing, and it was sold at an original issue discount of 99. The debt has 101 soft call protection for six months.

Jefferies LLC is leading the deal that will be used to fund a distribution to shareholders.

MDVIP is a provider of membership-based private health care services.

DuBois downsizes

Back in the primary market, DuBois Chemicals trimmed its seven-year first-lien term loan B to $510 million from $540 million and its eight-year second-lien term loan to $140 million from $190 million, according to a market source.

Talk on the first-lien term loan is Libor plus 400 bps to 425 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, and talk on the second-lien term loan is Libor plus 825 bps to 850 bps with a 0% Libor floor, a discount of 98.5 and hard call protection of 102 in year one and 101 in year two.

J.P. Morgan Securities LLC is leading the deal that will be used to help fund the buyout of the company by Altas Partners from the Jordan Co. LP.

Due to the decrease in term loan funds, the amount of equity being used for the transaction is being increased, the source added.

Closing is expected this year, subject to customary conditions and regulatory approvals.

DuBois Chemicals is a Sharonville, Ohio-based provider of specialty cleaning chemical solutions.

Iridium reveals talk

Iridium Satellite held its bank meeting on Thursday and released talk on its $1.45 billion seven-year covenant-lite term loan B at Libor plus 425 bps to 450 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, a market source said.

The company’s $1.55 billion of credit facilities (B1/B+) also include a $100 million five-year revolver.

Commitments are due at noon ET on Oct. 17, the source added.

Deutsche Bank Securities Inc., Barclays, Credit Suisse Securities (USA) LLC, Wells Fargo Securities LLC and Societe Generale are leading the deal that will be used with cash on hand to refinance the company’s existing $1.55 billion export credit facility.

Iridium is a McLean, Va.-based satellite communications company.

ProQuest proposed terms

ProQuest came out with talk of Libor plus 350 bps to 375 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months on its $725 million seven-year first-lien term loan B (B2/B) that launched with a morning bank meeting, a market source remarked.

Commitments are due on Oct. 16, the source added.

Goldman Sachs Bank USA is the left lead on the deal, which will be used to refinance an existing term loan B due 2021.

ProQuest is an Ann Arbor, Mich.-based provider of digital content and Software as a Service solutions primarily for the academic community.

Syncsort sets guidance

Syncsort held its bank meeting during the session, launching its fungible $600 million incremental first-lien term loan (B2) due Aug. 16, 2024 at talk of Libor plus 500 bps with a 0% Libor floor and an original issue discount of 99, according to a market source.

Commitments are due on Oct. 17, the source said.

In addition to the incremental first-lien term loan, the company is getting a $125 million upsized revolver due Aug. 16, 2022 and a $100 million privately placed incremental second-lien term loan (Caa2) due Aug. 15, 2025.

Jefferies LLC, Credit Suisse Securities (USA) LLC, Golub Capital LLC, Antares Capital LP, Barclays, Deutsche Bank Securities Inc., SunTrust Robinson Humphrey Inc. and UBS Investment Bank are leading the deal that will be used to help fund the acquisition of Pitney Bowes’ software solutions business.

Closing is expected by year-end, subject to regulatory approvals and other customary conditions.

As part of this transaction, pricing on the company’s existing first-lien term loan will be lifted from Libor plus 450 bps with a 0% Libor floor to match the incremental loan pricing.

Syncsort is a Pearl River, N.Y.-based enterprise software provider.

Flexitallic launches

Flexitallic disclosed talk of Libor plus 600 bps with a 0% Libor floor, an original issue discount of 98 and 101 soft call protection for six months on its $200 million term loan B (B-) in connection with its bank meeting, a market source remarked.

Commitments are due on Oct. 17, the source added.

Natixis and Bank of Ireland are leading the deal that will be used to refinance existing debt.

Flexitallic, a Bridgepoint portfolio company, is a Houston-based manufacturer and supplier of static sealing solutions, primarily selling gaskets across a diverse set of end markets.

Delek OID talk

Delek launched on its afternoon call its fungible $150 million add-on covenant-lite term loan B (BB+) due March 30, 2025 with original issue discount talk of 98.76, a market source said.

The add-on term loan is priced at Libor plus 225 bps with a 0% Libor floor, and has 101 soft call protection for six months.

Commitments are due at 3 p.m. ET on Oct. 10.

Wells Fargo Securities LLC is leading the deal that will be used to add cash to the balance sheet for future investment in gathering and processing assets.

The company’s existing term loan B is sized at $938 million.

Delek is a Brentwood, Tenn.-based Permian-based integrated downstream energy company.

Buckeye readies deal

Buckeye Partners set a bank meeting for 12:30 p.m. ET in New York on Monday to launch $2.35 billion of senior secured credit facilities (//BB+), according to a market source.

The facilities consist of a $600 million revolver, and a $1.75 billion seven-year covenant-lite first-lien term loan talked with a 0% Libor floor and 101 soft call protection for six months, the source said.

Commitments are due at 5 p.m. ET on Oct. 18.

Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, BofA Securities, Inc., CIBC, MUFG, National Australia Bank, SunTrust Robinson Humphrey Inc. and TD Securities (USA) LLC are leading the deal that will be used with $500 million of notes and $4.255 billion of equity to fund the acquisition of Buckeye by IFM Investors for $41.50 per common unit. The all-cash transaction is valued at a $10.3 billion enterprise value and a $6.5 billion equity value.

Closing is expected in the fourth quarter, subject to approval of a majority of the Buckeye unitholders, regulatory approvals and other customary conditions.

Buckeye is a Houston-based owner and operator of integrated midstream assets.

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