Advanced Drainage Systems, Autokiniton, Edgewell, Cerence, UFC, Jeld-Wen disclose price talk

By Sara Rosenberg

New York, Sept. 9 – In the primary market on Monday, Advanced Drainage Systems Inc., Autokiniton Global Group, Edgewell Personal Care Co., Cerence Inc., UFC and Jeld-Wen Inc. all released price guidance with launch.

Virtu Financial LLC (VFH Parent LLC), Cumulus Media Inc., Ahead/Data Blue, HighTower Holdings LLC and Concentra Group Holdings LLC joined this week’s primary calendar.

Advanced Drainage guidance

Advanced Drainage Systems held its bank meeting on Monday morning and announced talk on its $700 million seven-year first-lien term loan at Libor plus 275 basis points to 300 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

The company’s $1.05 billion of credit facilities (Ba1/BB) also includes a $350 million five-year revolver.

Commitments are due at 5 p.m. ET on Sept. 19, the source said.

Barclays, Morgan Stanley Senior Funding Inc., BofA Securities Inc., PNC Capital Markets, BMO Capital Markets, Fifth Third Bank and HSBC Securities (USA) Inc. are leading the deal that will be used with an upcoming senior notes offering and a recently completed equity offering to support the acquisition of Infiltrator Water Technologies Ultimate Holdings Inc. and to pay related fees and expenses.

Infiltrator Water, an Old Saybrook, Conn.-based on-site septic wastewater treatment company, was bought on July 31 for about $1.08 billion from Ontario Teachers’ Pension Plan and other stockholders.

Advanced Drainage is a Hilliard, Ohio-based manufacturer of water management products and drainage solutions for use in the construction and infrastructure marketplace.

Autokiniton reveals talk

Autokiniton came out with talk of Libor plus 525 bps to 550 bps with a 0% Libor floor, an original issue discount of 98.5 and 101 soft call protection for six months on its $400 million incremental first-lien term loan (B2/B+) due May 2025 that launched with an afternoon bank meeting, a market source remarked.

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

The company’s $525 million of senior secured credit facilities also include a $125 million incremental ABL revolver.

Goldman Sachs Bank USA, BofA Securities, Barclays, RBC Capital Markets and KKR Capital Markets are leading the deal.

With this transaction, existing lenders are being approached with an opportunistic amendment.

Autokiniton buying Tower

Autokiniton’s credit facilities will be used with $267 million of equity to fund the acquisition of Tower International Inc. for $31.00 per share in cash. Including Tower’s debt and pension-related liabilities, the total value of the transaction is about $900 million.

Closing is expected in September or October, subject to the tender of at least a majority of the outstanding shares of Tower common stock and regulatory approval.

Autokiniton, a portfolio company of KPS Capital Partners, is a New Boston, Mich.-based supplier of metal-formed components and complex assemblies to the automotive industry. Tower is a Livonia, Mich.-based manufacturer of engineered automotive structural metal components and assemblies.

Edgewell launches

Edgewell Personal Care held its bank meeting in the morning, launching its $610 million seven-year covenant-lite term loan B at talk of Libor plus 300 bps to 325 bps with a 0% Libor floor, an original issue discount of 99, 101 soft call protection for six months and a ticking fee of half the spread from days 46 to 75, the full spread from days 76 to 100 and the full spread plus Libor thereafter, a market source said.

The company’s $1.6 billion of senior secured credit facilities (BB-) also include a $425 million revolver and a $565 million term loan A.

Commitments are due at noon ET on Sept. 19, the source added.

BofA Securities, MUFG, Barclays, TD Securities (USA) LLC, Standard Chartered, BMO Capital Markets, SunTrust Robinson Humphrey Inc. and Wells Fargo Securities LLC are leading the debt that will be used with cash on hand to fund the acquisition of Harry’s Inc. in a transaction that values Harry’s at $1.37 billion. About 79% of the total value of the transaction will be paid in cash, and 21% will be paid in Edgewell common stock.

Closing is expected by the end of the first quarter of 2020, subject to customary conditions and regulatory approval.

Edgewell is a Shelton, Conn.-based pure-play consumer products company. Harry’s is a New York-based seller of shaving tools and skin care products.

Cerence proposed terms

Cerence launched at its morning meeting its $425 million first-lien term loan B at talk of Libor plus 375 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.

The company’s $500 million of credit facilities also include a $75 million revolver.

Commitments are due at 5 p.m. ET on Sept. 23, the source said.

Barclays is the left lead on the deal that will be used to support the spinoff of Nuance Communications Inc.’s automotive software business segment into a new, independent, publicly traded company named Cerence based in Burlington, Mass.

UFC comes to market

UFC held a lender call at 3:30 p.m. ET and launched a fungible $465 million add-on first-lien term loan B (B2/B) due April 2026 talked with an original issue discount in the range of 99.5 to 99.75, a market source said.

The add-on term loan is priced at Libor plus 325 bps with a 1% Libor floor, in line with the existing $1.87 billion first-lien term loan B, and all of the debt is getting 101 soft call protection for six months.

Commitments are due on Friday, the source added.

Goldman Sachs Bank USA and KKR Capital Markets are leading the deal that will be used to redeem outstanding preferred equity.

UFC is a Las Vegas-based mixed martial arts organization and pay-per-view event provider.

Jeld-Wen holds call

Jeld-Wen emerged in the morning with plans to hold a lender call at 3 p.m. ET to launch a fungible $100 million add-on covenant-lite term loan B due Dec. 14, 2024 talked with an original issue discount of 99 to 99.25, according to a market source.

The add-on term loan is priced at Libor plus 200 bps with a 0% Libor floor and has 101 soft call protection for six months.

Commitments are due at noon ET on Friday, the source said.

Wells Fargo and BofA Securities are leading the deal that will be used to repay existing debt. BofA is the administrative agent.

The company’s existing term loan B due Dec. 14, 2024 is sized at $433 million.

Jeld-Wen is a Charlotte, N.C.-based door and window manufacturer.

Virtu readies deal

Also in the primary market, Virtu Financial scheduled a lender call for 12:30 p.m. ET on Tuesday to launch a fungible $525 million incremental senior secured first-lien term loan due March 1, 2026, a market source remarked.

Like the existing term loan, the incremental term loan is priced at Libor plus 350 bps.

Commitments are due at 2 p.m. ET on Sept. 17, the source added.

Jefferies LLC is leading the deal that will be used to redeem second-lien notes due 2022.

Virtu is a New York-based financial services firm.

Cumulus joins calendar

Cumulus Media will hold a bank meeting on Tuesday to launch a $525 million term loan B, according to a market source.

BofA Securities is leading the deal that will be used to repay an existing term loan.

Cumulus Media is an Atlanta-based radio broadcaster.

Ahead/Data Blue on deck

Ahead/Data Blue surfaced with plans to hold a bank meeting on Wednesday to launch a $440 million seven-year term loan B, a market source said.

BofA Securities and TD Securities (USA) are leading the deal that will be used to help fund the merger of the two Court Square Capital portfolio companies and to pay a dividend.

Ahead is a Chicago-based consulting company that helps enterprises transform how and where they run applications and infrastructure. Data Blue is an Atlanta-based designer and provider of IT infrastructure solutions for large enterprise clients.

HighTower plans meeting

HighTower Holdings set a bank meeting in New York for Wednesday to launch $180 million of fungible incremental term loans, according to a market source.

The debt consists of a $135 million incremental first-lien term loan and a $45 million incremental delayed-draw first-lien term loan, the source said.

Antares Capital is leading the deal that will be used to fund planned acquisitions.

The company is also considering issuing up to $20 million of incremental second-lien debt as part of the acquisition financing, the source added.

Existing financing at the company includes a $50 million revolver, about $371 million of combined first-lien term loan and delayed-draw term loan facilities, and an $87.5 million second-lien term loan.

HighTower, a Thomas H. Lee Partners portfolio company, is a Chicago-based provider of a wealth management platform to financial advisers and their clients.

Concentra seeks add-on

Concentra scheduled a lender call for Tuesday to launch a $100 million add-on covenant-lite term loan B (B+) talked with an original issue discount in the range of 99 to 99.51, a market source remarked.

The add-on term loan is priced at Libor plus 275 bps with a step-down to Libor plus 250 bps at B1/B+ corporate ratings and a 0% Libor floor.

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

J.P. Morgan Securities LLC is leading the deal that will be used with cash on hand to repay a second-lien term loan.

Concentra is an Addison, Tex.-based occupational medicine and urgent care service provider that was created through a joint venture between Select Medical Corp., Welsh, Carson, Anderson & Stowe and other minority equity holders including Cressey & Co.

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