Spartech, Allied Universal, SmartBear break; Conair, DMG, Kenan Advantage release price talk

By Sara Rosenberg

New York, May 5 – Spartech finalized the spread on its term loan B at the high end of guidance and extended the call protection before breaking for trading, and deals from Allied Universal and SmartBear (AQA Acquisition Holdings Inc.) emerged in the secondary market as well.

In more happenings, Conair Corp., Divisions Maintenance Group (DMG) and Kenan Advantage Group Inc. announced price talk with launch, and Columbus McKinnon Corp. and Sound Physicians joined the near-term primary calendar.

Spartech updated, trades

Spartech set pricing on its $345 million seven-year covenant-lite term loan B at Libor plus 475 basis points, the high end of the Libor plus 450 bps to 475 bps talk, and extended the 101 soft call protection to one year from six months, a market source said.

As before, the term loan has a 0.75% Libor floor and an original issue discount of 99.

The company’s $405 million of credit facilities (B2/B) also include a $60 million five-year revolver.

On Wednesday, the bank debt made its way into the secondary market, with the term loan B quoted at 99¼ bid, 99¾ offered, another source added.

BNP Paribas Securities Corp. is leading the deal that will be used to help fund the buyout of the company by The Jordan Co.

Spartech is a Maryland Heights, Mo.-based plastics manufacturer.

Allied frees up

Allied Universal’s $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 broke for trading too, with levels quoted at 99¾ bid, par 1/8 offered, according to a market source.

Pricing on the term loan debt is Libor plus 375 bps with 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, and a 0.5% Libor floor. The incremental term loan was sold at an original issue discount of 99.5, 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.

During syndication, pricing on the incremental term loan was set at the low end of the Libor plus 375 bps to 400 bps talk, the Libor floor was reduced from 0.75%, the discount was tightened 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, and the pricing step-downs were added to all of the debt.

Allied lead banks

Credit Suisse, Morgan Stanley, Deutsche Bank, BNP Paribas, HSBC Securities, Mizuho, Societe Generale, ING Capital LLC, MUFG and Truist Securities are leading Allied Universal’s bank debt.

Along with the U.S. loans, the company 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. This tranche has 101 soft call protection for six months as well.

During syndication, the spread on the euro term loan finalized at the low end of the Euribor plus 375 bps to 400 bps talk and the discount was revised from 99.

Proceeds from the incremental term loan debt and $2.96 billion of notes in multiple tranches will be used to fund 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.

Santa Ana, Calif.-based and London-based G4S are providers of security services.

SmartBear hits secondary

SmartBear’s fungible $75 million covenant-lite incremental first-lien term loan (B2/B-) due March 2, 2028 also freed to trade, with levels quoted at par bid, par ½ offered, a market source remarked.

Pricing on the incremental term loan is Libor plus 425 bps with a 0.5% Libor floor, in line with existing first-lien term loan pricing, and the new debt was issued at par. The incremental loan has 101 soft call protection through Sept. 2, 2021.

During syndication, the incremental first-lien term loan was upsized from $70 million and the issue price was tightened from talk in the range of 99.5 to 99.75.

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.

Conair sets talk

Back in the primary market, Conair held its call on Wednesday morning and announced price talk on its $1.165 billion seven-year senior secured first-lien term loan (B1/B) at Libor plus 375 bps to 400 bps with a 0.5% Libor floor and an original issue discount of 99, according to a market source.

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

Commitments are due at noon ET on May 13, 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.

DMG proposed terms

Divisions Maintenance Group came out with talk of Libor plus 475 bps to 500 bps with a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for six months on its $365 million seven-year covenant-lite first-lien term loan B that launched with a call in the morning, a market source said.

The company’s $405 million of senior secured credit facilities (B3/B) also include a $40 million five-year revolver.

Commitments are due at 5 p.m. ET on May 19, the source added.

Morgan Stanley Senior Funding Inc. is leading the deal, which 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.

Kenan guidance

Kenan Advantage Group launched on its afternoon call its fungible $100 million incremental term loan B due March 24, 2026 with original issue discount talk of 99.25 to 99.5, a market source remarked.

The incremental term loan is priced at Libor plus 375 bps with a 0.75% Libor floor and 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.

Columbus readies loan

Columbus McKinnon set a lender call for 11:30 a.m. ET on Thursday to launch a $450 million seven-year term loan B (Ba2/B+), according to a market source.

The term loan has 101 soft call protection for six months, the source said.

Commitments are due at noon ET on May 13.

JPMorgan Chase Bank, Wells Fargo Securities LLC and PNC Bank are leading the deal that will be used to help refinance existing debt and support the recently completed $485 million acquisition of Dorner Manufacturing Corp. from EQT.

Columbus McKinnon is a Getzville, N.Y.-based designer, manufacturer and marketer of intelligent motion solutions that efficiently and ergonomically move, lift, position, and secure materials. Dorner is a Hartland, Wis.-based manufacturer of high-precision, specialty conveyor systems.

Sound Physicians on deck

Sound Physicians scheduled a lender call for 1:30 p.m. ET on Thursday to launch a $150 million add-on term loan B (B), a market source said.

Goldman Sachs Bank USA and Credit Suisse Securities (USA) LLC are leading the deal that will be used to fund acquisitions.

Sound Physicians is a Tacoma, Wash.-based provider of physician staffing services to hospitals.

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