Carnival, MetroNet, West Marine, Maximus, Certara, U.S. Concrete break; PQ, Conduent revised

By Sara Rosenberg

New York, May 26 – Carnival Corp. set pricing on its U.S. term loan B at the narrow side of revised talk and lowered the spread on its euro term loan B, and MetroNet set the spread on its first-lien term loan debt at the low end of talk and revised the original issue discount, and then both of these deals freed to trade on Wednesday.

Also, before breaking for trading, West Marine Inc. (Rising Tide Holdings Inc.) increased the size of its first-lien term loan and set pricing at the low end of talk, and finalized the spread and original issue discount on its second-lien term loan at the tight side of guidance.

In addition, Maximus Inc. set the issue price on its first-lien term loan B at the tight end of talk, Certara firmed the spread on its term loan at the high side of guidance and the original issue discount at the tight end of talk, and U.S. Concrete Inc. finalized the spread on its term loan B at the low end of talk and adjusted the issue price, and then these deals began trading as well.

Furthermore, PQ Corp. firmed pricing on its term loan B at the low end of talk and tightened the issue price, Conduent widened price talk on its term loan B, and Protective Industrial Products and Ilpea Industries Inc. surfaced with new deal plans.

Carnival updated

Carnival finalized pricing on its $1.9 billion senior secured term loan B due June 30, 2025 at Libor plus 300 basis points, the low end of revised talk of Libor plus 300 bps to 325 bps and down from initial talk in the range of Libor plus 375 bps to 400 bps, according to a market source.

Additionally, the company cut pricing on its €794 million senior secured term loan B due June 30, 2025 to Euribor plus 375 bps from initial talk at launch in the range of Euribor plus 400 bps to 425 bps, the source said.

The U.S. term loan still has a 0.75% Libor floor, the euro term loan still has a 0% floor, and both loans still have an original issue discount of 99.75 and 101 hard call protection for one year.

Earlier in syndication, the original issue discount on both term loans was modified from 99.5.

Carnival trades

On Wednesday, Carnival’s term loans allocated and broke for trading, with the U.S. term loan B quoted at par 3/8 bid, par 7/8 offered, a trader added.

JPMorgan Chase Bank and Barclays are leading the deal, with JPMorgan left lead on the U.S. loan and Barclays left on the euro loan. JPMorgan is the administrative agent.

The debt will be used to reprice an existing U.S. term loan down from Libor plus 750 bps with a 1% Libor floor and an existing euro term loan down from Euribor plus 750 bps with a 0% floor.

Carnival is a Miami-based cruise operator.

MetroNet modified

MetroNet finalized pricing on its $585 million seven-year first-lien term loan B (B2/B-) and $65 million first-lien delayed-draw term loan (B2/B-) at Libor plus 375 bps, the low end of the Libor plus 375 bps to 400 bps talk, and revised the original issue discount to 99.75 from talk in the range of 99 to 99.5, a market source remarked. The discount on the delayed-draw term loan will be paid at the time of trade settlement.

The first-lien term loan debt still has a 0.75% Libor floor and 101 soft call protection for six months.

Ticking fees on the delayed-draw term loan are half the margin from days 46 to 75 and the full margin thereafter.

The company is also getting an $85 million privately placed second-lien term loan and a $175 million privately placed second-lien delayed-draw term loan.

MetroNet hits secondary

Recommitments for MetroNet’s first-lien term loans were due at 12:30 p.m. ET on Wednesday and the debt freed up later in the session, with levels quoted at par bid, par ¾ offered, another source added.

Goldman Sachs Bank USA, TD Securities (USA) LLC, KKR Capital Markets, Citizens Bank and Fifth Third are leading the deal that will be used to refinance existing debt and for general corporate purposes.

The Evansville, Ind.-based provider of fiber optic high-speed broadband services announced last month that it is getting an investment from KKR and a new investment from its current investor Oak Hill Capital.

Closing is expected in the third quarter, subject to regulatory approvals and other customary conditions.

West Marine tweaked

West Marine raised its first-lien term loan to $400 million from $385 million and finalized pricing at Libor plus 475 bps, the low end of the Libor plus 475 bps to 500 bps talk, according to a market source.

In addition, pricing on the company’s $120 million second-lien term loan firmed at Libor plus 825 bps, the low end of the Libor plus 825 bps to 850 bps talk, and the original issue discount was set at 98.5, the tight end of the 98 to 98.5 talk, the source said.

Also, some changes were made to documentation.

As before, the first-lien term loan has a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and 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.

West Marine frees up

Final commitments for West Marine’s loans were due at noon ET on Wednesday and the debt began trading later in the day with the first-lien term loan quoted at 99¼ bid, par ¼ offered, another source added.

Barclays, Golub Capital LLC and Nomura are leading the deal that will be used to help fund the buyout of the company by L Catterton from Monomoy Capital Partners. The equity portion of the buyout financing is being reduced due to the first-lien term loan upsizing.

Closing is expected this month, subject to customary conditions.

West Marine is an omni-channel provider of aftermarket products and services to the boating, fishing, sailing and watersports markets platform.

Maximus firms, breaks

Maximus finalized the original issue discount on its $400 million seven-year first-lien term loan B at 99.5, the tight end of the 99 to 99.5 talk, a market source said.

Pricing on the term loan B was reduced to Libor plus 200 bps from Libor plus 225 bps, and the debt still has a 0.5% Libor floor and 101 soft call protection for six months.

The company’s $2.1 billion of credit facilities (Ba2/BB+) also include a $600 million revolver and a $1.1 billion term loan A.

The term loan B made its way into the secondary market during the session, with levels quoted at 99¾ bid, par ½ offered, another source added.

JPMorgan Chase Bank is leading the deal that will be used to help fund the acquisition of Veterans Evaluation Services Inc. for $1.4 billion, subject to certain adjustments, and to refinance existing debt.

Closing is expected in the company’s third fiscal quarter, subject to customary conditions.

Maximus is a Reston, Va.-based provider of government services. Veterans Evaluation Services is a provider of medical disability examinations to determine veterans’ eligibility for compensation and pension benefits.

Certara sets terms, trades

Certara firmed pricing on its $303 million term loan at Libor plus 350 bps, the high end of the Libor plus 325 bps to 350 bps talk, and set the original issue discount on the term loan at 99.75, the tight end of the 99.5 to 99.75 talk, according to a market source.

The term loan still has a 0% Libor floor.

On Wednesday, the term loan broke for trading, with levels quoted at 99 7/8 bid, par 3/8 offered, another source added.

BofA Securities Inc. is leading the deal that will be used to refinance existing debt.

Certara is a Princeton, N.J.-based provider of technology-driven decision support solutions for drug development.

U.S. Concrete revised, frees

U.S. Concrete set pricing on its $300 million seven-year term loan B (Ba3/BB+) at Libor plus 275 bps, the low end of the Libor plus 275 bps to 300 bps talk, and tightened the original issue discount to 99.75 from 99.5, a market source remarked.

The 0.5% Libor floor and 101 soft call protection for six months on the term loan were unchanged.

The term loan started trading during the day, with levels quoted at par bid, par ¾ offered, another source added.

JPMorgan Chase Bank is leading the deal that will be used to redeem bonds and repay ABL borrowings.

U.S. Concrete is a Euless, Tex.-based supplier of aggregates and high-performance concrete for large-scale commercial, residential and infrastructure projects.

PQ changes emerge

PQ firmed the spread on its $900 million seven-year senior secured covenant-lite term loan B (B1/BB-) at Libor plus 275 bps, the low end of the Libor plus 275 bps to 300 bps talk, and adjusted the original issue discount to 99.75 from 99.5, a market source said.

The term loan still has a 25 bps step-down at 0.5x inside closing date first-lien net leverage, a 0.5% Libor floor and 101 soft call protection for six months.

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

Citigroup Global Markets Inc. is leading the deal. Credit Suisse Securities (USA) LLC is the administrative agent.

The new debt will be used to refinance a portion of the company’s existing term loan B’s due in 2027.

Closing is expected during the week of May 31.

PQ is a Malvern, Pa.-based producer of specialty inorganic performance chemicals and catalysts.

Conduent widens talk

Conduent lifted price talk on its $750 million seven-year term loan B (B1/BB-) to a range of Libor plus 400 bps to 425 bps from a range of Libor plus 350 bps to 375 bps, a market source remarked.

The term loan is still talked with a 0.5% Libor floor and an original issue discount of 99 to 99.5.

BofA Securities Inc., Citigroup Global Markets Inc., Mizuho, MUFG, Truist and Wells Fargo Securities LLC are leading the deal that will be used with $750 million of senior secured notes to refinance existing debt.

Conduent is a provider of business process services.

Protective Industrial on deck

Protective Industrial Products set a lender call for 1 p.m. ET on Tuesday to launch a fungible $135 million incremental term loan B talked with an original issue discount of 99.5 to 99.75, according to a market source.

Like the existing term loan, the incremental term loan is priced at Libor plus 400 bps with a 0.75% Libor floor.

The incremental term loan and the existing term loan are getting 101 soft call protection for six months.

Antares Capital, Citizens Bank and Bank of Ireland are leading the deal that will be used to fund an acquisition.

Pro forma for the transaction, the term loan B will total $570 million.

Protective Industrial Products is a Latham, N.Y.-based provider of personal protective equipment and industrial safety products.

Ilpea readies loan

Ilpea Industries will hold a lender call on Thursday to launch a $220 million term loan B, a market source said.

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

Ilpea is a Scottsburg, Ind.-based producer of custom plastic extrusions for the appliance and construction industries.

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