Allied Universal, Duravant, SmartBear, Pabst revisions surface; Doosan Bobcat sets talk

By Sara Rosenberg

New York, May 4 – In the primary market on Tuesday, Allied Universal added pricing step-downs to U.S. first-lien term loans, and Duravant LLC (Engineered Machinery Holdings Inc.) revised spread talk and original issue discount on its second-lien term loan.

Also, SmartBear (AQA Acquisition Holdings Inc.) increased the size of its incremental first-lien term loan and tightened the issue price, and Pabst Blue Ribbon widened price talk and original issue discount on its term loan B.

Additionally, Doosan Bobcat released price talk with launch, and Divisions Maintenance Group (DMG), Ensono Holdings LLC, SRAM LLC, Conair Corp. and Kenan Advantage Group Inc. joined this week’s primary calendar.

Allied Universal revised

Allied Universal added a 25 bps step-down after 0.5x of total net leverage deleveraging and a 25 bps step-down at B1/B+ ratings with stable outlooks to its $950 million incremental covenant-lite first-lien term loan B (B2/B/BB-) due May 2028 and repriced and extended $2.192 billion first-lien term loan (B2/B/BB-) due May 2028, a market source said.

Initial pricing on the term loan debt remained at Libor plus 375 basis points with a 0.5% Libor floor. The incremental term loan has an original issue discount of 99.5 and the repriced and extended term loan has a 25 bps extension fee, and all of the debt has 101 soft call protection for six months.

Earlier in syndication, pricing on the incremental term loan firmed at the low end of the Libor plus 375 bps to 400 bps talk, the Libor floor was cut from 0.75%, the discount was changed from 99 and the debt was made fungible with the existing first-lien term loan B. Also, the repricing and extension of the existing term loan was added to the transaction.

Recommitments are due at 10 a.m. ET on Wednesday.

Allied euro loan

In addition to the U.S. term loan debt, Allied Universal is getting a €715.5 million seven-year covenant-lite first-lien term loan B (B2/B/BB-) priced at Euribor plus 375 bps with a 0% floor and a discount of 99.5, another source added.

Pricing on the euro term loan finalized at the low end of the Euribor plus 375 bps to 400 bps talk and the discount was tightened from 99.

Credit Suisse, Morgan Stanley, Deutsche Bank, BNP Paribas, HSBC Securities, Mizuho, Societe Generale, ING Capital LLC, MUFG and Truist Securities are leading the deal.

The incremental term loans and $2.96 billion of notes in multiple tranches will be used to support the recently completed acquisition of G4S plc for 245 pence in cash per share in a transaction valued at £3.8 billion, and the repricing and extension will reprice the existing term loan from Libor plus 425 bps with a 0% Libor floor and extend the maturity from July 2026.

Warburg Pincus and CDPQ are the sponsors.

Allied Universal is a Santa Ana, Calif.-based provider of security services. G4S is a London-based security services company.

Duravant tweaks loan

Duravant lowered price talk on its $175 million eight-year incremental second-lien term loan (CCC+) to a range of Libor plus 650 bps to 675 bps from earlier talk of Libor plus 725 bps and adjusted the original issue discount to 99.5 from 99, according to a market source.

As before, the second-lien term loan has a 0.75% Libor floor and hard call protection of 102 in year one and 101 in year two.

Commitments continue to be due at noon ET on Wednesday, the source added.

The company is also getting a $235 million five-year revolver (B-), and a $570 million equivalent euro seven-year incremental first-lien term loan (B-) talked at Euribor plus 400 bps to 425 bps with a 0% floor and a discount of 99.5.

Duravant lead banks

Jefferies LLC, Credit Suisse, Societe Generale, Citigroup Global Markets Inc., KeyBanc Capital Markets, MUFG and Antares Capital are leading Duravant’s credit facilities, with Jefferies the left lead on the second-lien term loan and Credit Suisse listed left on the first-lien term loan. Jefferies is the agent.

The new debt will be used to fund the acquisition of Foodmate, a manufacturer of poultry processing equipment dual-headquartered in Numansdorp, the Netherlands, and Ball Ground, Ga., for working capital, to add cash to the balance sheet and for other general corporate purposes.

Duravant is a Downers Grove, Ill.-based engineered equipment and automation solutions provider to the food processing, packaging and material handling sectors.

SmartBear sets changes

SmartBear raised its fungible covenant-lite incremental first-lien term loan (B2/B-) due March 2, 2028 to $75 million from $70 million and modified the issue price to par from talk in the range of 99.5 to 99.75, a market source remarked.

Like the Pricing existing first-lien term loan, the incremental term loan is priced at Libor plus 425 bps with a 0.5% Libor floor and has 101 soft call protection through Sept. 2, 2021.

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

Credit Suisse Securities (USA) LLC and Antares Capital are leading the deal that will be used with a $54 million privately placed incremental second-lien term loan to fund the acquisition of Bugsnag.

SmartBear is a Somerville, Mass.-based provider of software development and quality tools. Bugsnag is a San Francisco-based provider of application stability management.

Pabst reworked

Pabst Blue Ribbon lifted price talk on its $368 million seven-year term loan B (B2/B) to a range of Libor plus 575 bps to 600 bps from talk of Libor plus 500 bps and revised the original issue discount to 97.5 from talk in the range of 98.5 to 99, a market source said.

Also, the call protection on the term loan was changed to non-callable for one year from a 101 soft call for six months, and amortization was sweetened to 2.5% in year one and 5% per annum thereafter from 1% per annum.

The term loan still has a 0.75% Libor floor.

JPMorgan Chase Bank is leading the deal that will be used to refinance an existing term loan due 2021.

Pabst Blue Ribbon is a brewing company.

Doosan proposed terms

Doosan Bobcat held a lender call at 11 a.m. ET on Tuesday, launching a non-fungible $500 million incremental senior secured term loan B (Ba3/BB) at talk of Libor plus 225 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 at noon ET on May 13, the source added.

BofA Securities Inc. is leading the deal that will be used to help fund the acquisition of Doosan Corp.’s forklift business, for about KRW 750 billion

Doosan Bobcat is a manufacturer of compact farm and construction equipment.

DMG joins calendar

Divisions Maintenance Group set a lender call for 10 a.m. ET on Wednesday to launch $405 million of senior secured credit facilities (B3), according to a market source.

The facilities consist of a $40 million revolver and a $365 million first-lien term loan B, the source said.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to refinance the company’s existing debt and fund a shareholder distribution.

Divisions Maintenance is a Newport, Ky.-based facilities maintenance company.

Ensono timing emerges

Ensono scheduled a lender call for 2 p.m. ET on Thursday to launch $823 million of senior secured first-lien credit facilities, split between a $100 million revolver (B) and a $723 million first-lien term loan B (B), a market source said.

The company is also getting a $250 million privately placed second-lien term loan (CCC).

Morgan Stanley Senior Funding Inc., UBS Investment Bank and KKR Capital Markets are leading the deal that will be used to help fund the buyout of the company by KKR from Charlesbank Capital Partners and M/C Partners and refinance existing credit facilities.

Leverage is expected to be 6x.

Closing is targeted for this quarter, subject to regulatory approvals and other customary conditions.

Ensono is a Chicago-based hybrid IT services provider.

SRAM on deck

SRAM will hold a lender call on Wednesday to launch a $1.1 billion seven-year senior secured term loan B (B1/BB-) talked at Libor plus 300 bps to 325 bps with a 0.5% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, according to a market source.

Commitments are due at 5 p.m. ET on May 12, the source added.

JPMorgan Chase Bank is leading the deal that will be used to refinance existing debt and fund a dividend.

SRAM is a Chicago-based bicycle components company.

Conair readies deal

Conair set a lender call for 11:30 a.m. ET on Wednesday to launch a $1.165 billion seven-year senior secured first-lien term loan (B1/B), a market source remarked.

The first-lien term loan has 101 soft call protection for six months, the source added.

BofA Securities Inc., Credit Suisse Securities (USA) LLC, RBC Capital Markets, Barclays, Jefferies LLC and Stifel are leading the deal that will be used with a $430 million privately placed second-lien term loan and equity to fund the buyout of the company by American Securities LLC.

Conair is a Stamford, Conn.-based designer, manufacturer, and marketer of personal care and small kitchen appliances, cookware, hair brushes & accessories, cosmetic bags, and travel accessories.

Kenan coming soon

Kenan Advantage Group surfaced with plans to hold an investor call at 2 p.m. ET on Wednesday to launch a fungible $100 million incremental term loan B due March 24, 2026, according to a market source.

Pricing on the incremental term loan is Libor plus 375 bps with a 0.75% Libor floor, and the debt has 101 soft call protection until Sept. 24.

KeyBanc Capital Markets LLC is the left lead on the deal that will be used for acquisitions and general corporate purposes.

The incremental term loan is fungible with the company’s existing $957.6 million term loan B.

Kenan Advantage is a North Canton, Ohio-based provider of liquid bulk transportation services to the fuels, chemicals, liquid foods and merchant gas markets.

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