International Car Wash breaks; McAfee, Cast & Crew, Trilliant Food deal revisions emerge

By Sara Rosenberg

New York, Sept. 25 – International Car Wash Group’s credit facilities surfaced in the secondary market on Monday, with the first-lien term loan quoted above its original issue discount.

Moving to the primary market, McAfee LLC revised first-and second-lien term loan size and price talk, and Cast & Crew Entertainment Services LLC tightened the spread and original issue discount on its term loan B.

Also, Trilliant Food & Nutrition increased the size of its term loan B, lowered pricing and added a step-down, and Lion Copolymer LLC pulled its term loan B from market.

Furthermore, Tekni-Plex Inc., Paradigm Outcomes (Paradigm Acquisition Corp.), Sterling Talent Solutions and National Veterinary Associates revealed price talk with launch, and Duff & Phelps Corp., Plastipak Holdings Inc., Charah LLC, ThoughtWorks Inc., Renfro Corp. and Lighthouse Network LLC joined this week’s primary calendar.

International Car frees up

International Car Wash Group’s credit facilities broke for trading on Monday, with the $475 million seven-year first-lien term loan seen at par bid, 101 offered, according to a market source.

Pricing on the first-lien term loan is Libor plus 350 basis points with a 1% Libor floor and an original issue discount of 99.75. The debt has 101 soft call protection for six months.

The United Kingdom-based car wash operator’s $725 million of senior secured credit facilities also include a $75 million revolver (B1/B) and a $175 million eight-year second-lien term loan (Caa1/CCC+).

The second-lien term loan is priced at Libor plus 750 bps with a 1% Libor floor and was issued at a discount of 98.5. This tranche has hard call protection of 102 in year one and 101 in year two.

During syndication, the first-lien term loan was upsized from $450 million, the spread was reduced from talk of Libor plus 375 bps to 400 bps and the discount was tightened from 99.5, and the second-lien term loan was downsized from $200 million while pricing was trimmed from talk of Libor plus 775 bps to 800 bps.

Goldman Sachs Bank USA, Jefferies LLC, Barclays and Credit Suisse Securities (USA) LLC are leading the deal that will be used to help fund the buyout of the company by Roark Capital Group from TDR Capital LLP.

Closing is expected in the fourth quarter.

McAfee restructures

Switching to the primary market, McAfee scaled back its U.S. seven-year covenant-light first-lien term loan B to $2,555,000,000 from a revised amount of $3.05 billion and an original amount of $3.5 billion, revised talk to a range of Libor plus 450 bps to 475 bps from a range of Libor plus 375 bps to 400 bps, updated the original issue discount to 99 from talk in the range of 99 to 99.5 and extended the 101 soft call protection to one year from six months, according to a market source. The tranche still has a 1% Libor floor.

The company also upsized its euro seven-year covenant-light first-lien term loan B that was added to the capital structure earlier in syndication to €500 million ($595 million equivalent) from €375 million ($450 million equivalent), adjusted price talk to Euribor plus 425 bps to 450 bps from Euribor plus 375 bps to 400 bps, and extended the 101 soft call protection to one year from six months, the source said. This loan still has a 0% floor and an original issue discount of 99.5.

Regarding the eight-year covenant-light second-lien term loan, it was downsized to $600 million from $750 million, price talk was raised to Libor plus 850 bps to 875 bps from Libor plus 775 bps to 800 bps, and the discount talk was revised to a range of 98 to 98.5 from just 98.5. This tranche continues to include a 1% Libor floor and hard call protection of 102 in year one and 101 in year two.

McAfee revolver update

In addition to the term loan, McAfee’s now $4.25 billion of senior secured credit facilities include a $500 million five-year revolver that saw price talk increased to Libor plus 450 bps to 475 bps from Libor plus 375 bps to 400 bps, the source continued. This tranche still has a 0% Libor floor.

Another change was that the MFN sunset was removed from the credit agreement.

Commitments are due at 3 p.m. ET on Tuesday, the source added.

Morgan Stanley Senior Funding Inc., J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Goldman Sachs Bank USA, Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., RBC Capital Markets LLC, UBS Investment Bank and Mizuho Bank Ltd. are leading the deal, with Morgan Stanley the left lead on the first-lien and JPMorgan the left lead on the second-lien.

Proceeds will be used to refinance the existing Intel seller financing, pay a dividend to equity holders, which was reduced with the downsizing to the total amount of term loan debt, and to pay fees and expenses.

McAfee is a Santa Clara, Calif.-based cybersecurity company.

Cast & Crew modified

Cast & Crew Entertainment Services cut pricing on its $495 million seven-year covenant-light first-lien term loan B (B2/B+) to Libor plus 300 bps from Libor plus 325 bps, moved the original issue discount to 99.75 from 99.5, reduced the MFN carve-out to $60 million from $75 million and extended the MFN sunset to 24 months from six months, a market source remarked.

As before, the term loan has a 0% Libor floor and 101 soft call protection for six months.

Recommitments were due at 5 p.m. ET on Monday, the source added.

RBC Capital Markets LLC is the left lead on the deal that will be used to refinance the company’s existing first-lien term loan, second-lien term loan and second-lien notes.

Cast & Crew, a Silver Lake portfolio company, is a Burbank, Calif.-based provider of technology-enabled payroll, production accounting and related value-added services to the entertainment industry.

Trilliant changes surface

Trilliant Food & Nutrition lifted its seven-year covenant-light term loan B to $270 million from $250 million, reduced pricing to Libor plus 400 bps from talk in the range of Libor plus 425 bps to 450 bps and added a step-down to Libor plus 375 bps if the corporate family rating is revised to B2/B or greater with stable outlook, according to a market source.

The term loan still has a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

Commitments are due at 2 p.m. ET on Tuesday.

Wells Fargo Securities LLC and Credit Suisse Securities (USA) LLC are leading the deal that will be used to help fund a recapitalization with which Blackstone is making an equity investment. The additional amount raised through the upsizing will be used to prefund Horseshoe capital expenditures, the source added.

Along with the term loan, the Little Chute, Wis.-based beverage company plans on getting an ABL revolver for working capital and other general corporate purposes.

Lion Copolymer withdrawn

Lion Copolymer pulled from the primary market its $215 million term loan B (B2/B+) that was talked at Libor plus 400 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, a market source said.

Bank of America Merrill Lynch was leading the deal that would have refinanced existing debt.

Lion Copolymer is a Geismar, La.-based manufacturer of synthetic rubber products.

Tekni-Plex sets talk

Also in the primary market, Tekni-Plex came out with price talk on its $413 million seven-year covenant light first lien term loan (B) and $295 million equivalent euro-denominated seven-year covenant-light first lien term loan (B) a few hours before its Monday afternoon New York bank meeting began, according to a market source.

A bank meeting for European investors will take place in London on Wednesday.

Talk on the U.S. term loan is Libor plus 350 bps with a 1% Libor floor and an original issue discount of 99.5, and talk on the euro term loan is Euribor plus 375 bps with a 0% floor and a discount of 99.5, the source said. Both term loans have 101 soft call protection for six months.

The company’s $768 million of credit facilities also include a $60 million ABL revolver.

Commitments are due at 5 p.m. ET on Oct. 10.

Credit Suisse Securities (USA) LLC, Jefferies LLC and BMO Capital Markets are leading the deal that will be used to help fund the buyout of the company by Genstar Capital from American Securities.

Tekni-Plex is a King of Prussia, Pa.-based provider of specialty packaging solutions.

Paradigm guidance emerges

Paradigm Outcomes held its bank meeting in the afternoon, and shortly before the event kicked off, talk on its $350 million seven-year covenant-light first-lien term loan (B2) and $80 million eight-year covenant-light second-lien term loan (Caa2) was announced, a market source remarked.

The first-lien term loan is talked at Libor plus 425 bps to 450 bps with a 1% Libor floor and an original issue discount of 99.5, and the second-lien term loan is talked at Libor plus 825 bps to 850 bps with a 1% Libor floor and a discount of 99, the source added.

As previously reported, the first-lien term loan has 101 soft call protection for six months, and the second-lien term loan has call protection of 102 in year one and 101 in year two.

The company’s $455 million of credit facilities also include a $25 million revolver (B2).

Commitments are due on Oct. 5.

Credit Suisse Securities (USA) LLC and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to fund an acquisition and refinance existing debt.

Paradigm is a Walnut Creek, Calif.-based provider of catastrophic and complex case management for the workers’ compensation industry.

Sterling floats terms

Sterling Talent Solutions released talk of Libor plus 325 bps to 350 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months on its $647 million first-lien term loan due June 2024 that launched with an afternoon lender call, according to a market source.

Commitments are due on Oct. 2, the source said.

Goldman Sachs Bank USA and KeyBanc Capital Markets LLC are leading the deal that will be used to reprice an existing term loan down from Libor plus 425 bps with a 1% Libor floor.

Sterling Talent Solutions is a Seattle-based provider of comprehensive employment and background screening services.

National Veterinary launches

National Veterinary Associates held a lender call at 11:30 a.m. ET to launch a $115 million add-on term loan B-2 (B1) due August 2021 talked at Libor plus 350 bps with a 1% Libor floor and an original issue discount of 99.5, a market source said.

Bank of America Merrill Lynch, Jefferies LLC, RBC Capital Markets and Nomura are leading the deal that will be used to fund acquisitions, repay revolving credit facility borrowings and add cash to the balance sheet.

National Veterinary is an Agoura Hills, Calif.-based owner of independent freestanding veterinary hospitals.

Duff & Phelps on deck

Duff & Phelps set a bank meeting for 10 a.m. ET in New York on Tuesday to launch $950 million of credit facilities (B2/B), according to a market source.

The facilities consist of a $100 million revolver and an $850 million first-lien term loan, the source said.

Goldman Sachs Bank USA is leading the deal that will be used to refinance existing bank debt and to fund a dividend.

Duff & Phelps is a New York-based independent advisor with expertise in the areas of valuation, corporate finance, disputes and investigations, compliance and regulatory matters, and other governance-related issues.

Plastipak schedules meeting

Plastipak plans to hold a bank meeting at 2 p.m. ET in New York on Wednesday to launch a $650 million seven-year covenant-light term loan B that includes 101 soft call protection for six months, according to a market source.

Commitments are due at noon ET Oct. 6, the source said.

Wells Fargo Securities LLC is the left lead on the deal that will be used to partially redeem Goldman Sachs’s $650 million equity stake and to refinance existing debt.

Plastipak is a Plymouth, Mich.-based designer, manufacturer and supplier of rigid plastic packaging containers.

Charah joins calendar

Charah will hold a bank meeting at 12:30 p.m. ET in New York on Tuesday to launch a $250 million seven-year first-lien term loan that is talked at Libor plus 550 bps to 575 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, a market source said.

Commitments are due at 5 p.m. ET on Oct. 11, the source added.

Credit Suisse Securities (USA) LLC, Jefferies LLC and Regions Bank are leading the deal that will be used to refinance existing debt and fund a dividend.

Charah is a Louisville, Ky.-based service provider to the regulated utility industry.

ThoughtWorks readies deal

ThoughtWorks emerged with plans to hold a bank meeting at 10 a.m. ET in New York on Tuesday to launch $235 million of credit facilities, a market source remarked.

The facilities consist of a $35 million revolver, and a $200 million seven-year covenant-light first-lien term loan that includes a 1% Libor floor and 101 soft call protection for six months, the source added.

Commitments are due at 5 p.m. ET on Oct. 10.

Credit Suisse Securities (USA) LLC, HSBC and Nomura are leading the deal that will be used to help fund the buyout of the company by Apax Partners.

Closing is expected in the fourth quarter, subject to customary conditions.

ThoughtWorks is a Chicago-based software development and digital transformation consulting company.

Renfro plans extension

Renfro scheduled a lender call for 3 p.m. ET on Tuesday to launch a $160 million term loan B (B3/B) due March 2021 talked at Libor plus 525 bps to 550 bps with a 1.25% Libor floor, an original issue discount of 99.5 for new lenders, a 50 bps consent fee for existing lenders and 101 soft call protection for six months, a market source said.

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

RBC Capital Markets is the left lead on the deal that will be used to amend and extend an existing term loan B due March 2019 priced at Libor plus450 bps with a 1.25% Libor floor.

Renfro is a Mount Airy, N.C.-based designer, manufacturer and marketer of socks.

Lighthouse coming soon

Lighthouse Network scheduled a lender call for 10 a.m. ET on Tuesday to launch $80 million in fungible incremental term loans, according to a market source.

The debt consists of a $60 million incremental first-lien term loan due October 2023 priced at Libor plus 475 bps with a 1% Libor floor and a $20 million incremental second-lien term loan due October 2024 priced at Libor plus 950 bps with a 1% Libor floor, the source said. Original issue discount talk is still to be determined.

Spreads and floors on the incremental loans match existing term loan pricing.

Commitments are due on Oct. 3, the source added.

Credit Suisse Securities (USA) LLC and Citizens Bank are leading the debt that will be used to fund tuck-in acquisitions.

Lighthouse, formerly known as Harbortouch LLC, is an Allentown, Pa.-based independent merchant acquirer and payment solutions provider.

Mitel closes

In other news, Mitel Networks Corp. completed its acquisition of ShoreTel for $7.50 per share, or a total equity value of about $530 million and a total enterprise value of around $430 million, a news release said.

To help fund the transaction, Mitel got a new $300 million six-year covenant-light term loan B (B1/B+) priced at Libor plus 375 bps with a 1% Libor floor and an original issue discount of 99.5. The debt has 101 soft call protection for six months.

During syndication, pricing on the loan was lowered from talk of Libor plus 400 bps to 425 bps.

BMO Capital Markets Corp., Citizens Bank, HSBC Bank and CIBC led the deal.

Mitel is an Ottawa-based provider of communications software solutions. ShoreTel is a Sunnyvale, Calif.-based provider of communication solutions.

Arch Coal wraps

Arch Coal Inc. closed on its $299 million covenant-light first-lien term loan B (B1/BB-) due March 2024 priced at Libor plus 325 bps with a 1% Libor floor and issued at par, according to an 8-K filed with the Securities and Exchange Commission.

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

Credit Suisse Securities (USA) LLC led the deal that was used to reprice an existing term loan B down from Libor plus 400 bps with a 1% Libor floor.

Arch Coal is a St. Louis-based coal producer.

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