Weld North Education, 24-7 Intouch free up; Zurn Water changes surface; CHG, Orion set talk

By Sara Rosenberg

New York, Sept. 14 – Weld North Education LLC’s first-lien term loan made its way into the secondary market on Tuesday, with levels quoted above its issue price, and 24-7 Intouch Inc.’s add-on first-lien term loan B broke as well.

Meanwhile, in the primary market, Zurn Water Solutions trimmed the spread on its term loan B, added a leverage-based step-down and tightened the original issue discount.

Also, CHG Healthcare Services Inc. and Orion Engineered Carbons SA came out with price talk on their loan transactions.

Furthermore, Agiliti Inc., Consilio (GI Consilio Parent LLC), American Bath Group (CP Atlas Buyer Inc.) and Xplornet Communications Inc. joined this week’s new issue calendar.

Weld hits secondary

Weld North Education’s $945 million first-lien term loan due December 2027 began trading in the morning, with levels quoted at par ¼ bid, par ½ offered, according to a trader.

Pricing on the term loan is Libor plus 375 basis points with a 0.5% Libor floor and it was issued at par. The debt has 101 soft call protection for six months.

RBC Capital Markets, Macquarie Capital (USA) Inc., BMO Capital Markets, Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA and KKR Capital Markets are leading the deal that will be used to reprice an existing term loan down from Libor plus 400 bps with a 0.75% Libor floor.

Weld North Education, a portfolio company of Silver Lake Partners and Onex Corp., is an education technology company focused on digital curriculum for grades K-12.

24-7 frees up

24-7 Intouch’s $40 million add-on first-lien term loan B (B2/B) due August 2025 also broke for trading, with levels quoted at 99¼ bid, par offered, a trader remarked.

Pricing on the add-on term loan is Libor plus 475 bps with a 0% Libor floor, in line with existing term loan B pricing, and the new debt was sold at an original issue discount of 99.

RBC Capital Markets is leading the deal that is being used to fund an acquisition.

Pro forma for the transaction, the term loan B totals $352 million.

24-7 Intouch is a provider of technology enabled, omnichannel, outsourced customer care to consumer-facing businesses.

Zurn flexes

Switching to the primary market, Zurn Water Solutions lowered pricing on its $550 million seven-year covenant-lite senior secured term loan B (Ba3/BB) to Libor plus 225 bps from talk in the range of Libor plus 250 bps to 275 bps, added a 25 bps step-down at 0.5x inside closing total net leverage and changed the original issue discount to 99.75 from 99.5, a market source said.

As before, the term loan has a 0.5% Libor floor and 101 soft call protection for six months.

Recommitments are due at 11 a.m. ET on Wednesday, the source added.

Credit Suisse Securities (USA) LLC, Barclays, Mizuho, Citigroup Global Markets Inc. and BMO Capital Markets are leading the deal that will be used to help fund the redemption and refinancing of existing debt.

Zurn Water is a Milwaukee-based pure play water management platform.

CHG releases guidance

CHG Healthcare Services held its lender call on Tuesday afternoon and announced talk on its $1.58 billion seven-year first-lien term loan (B1/B) at Libor plus 375 bps to 400 bps with a 25 bps step-down at 0.5x inside closing date first-lien leverage, a 0.5% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

Commitments are due at 10 a.m. ET on Sept. 23, the source added.

The company is also getting a $430 million privately placed second-lien term loan.

Goldman Sachs Bank USA, JPMorgan Chase Bank, Barclays, BMO Capital Markets and Citigroup Global Markets Inc. are leading the deal that will be used with cash on the balance sheet to refinance existing debt and pay a dividend to shareholders.

CHG is a Salt Lake City-based locum tenens staffing company.

Orion proposed terms

Orion Engineered Carbons released price talk on its $650 million equivalent U.S. and euro seven-year senior secured term B (Ba2) in connection with its morning call, a market source remarked.

Talk on the U.S. portion of the loan is Libor plus 225 bps with a 0.5% Libor floor and an original issue discount of 99 to 99.5, and talk on the euro portion of the loan is Euribor plus 250 bps with a 0% floor and a discount of 99 to 99.5, the source added.

The term loan debt has a SDG-linked margin ratchet of plus/minus 10 bps linked to meeting two KPIs, and 101 soft call protection for six months.

Commitments and consents are due at 10 a.m. ET on Sept. 24.

Goldman Sachs Bank USA is the sole bookrunner on the deal and a mandated lead arranger with Deutsche Bank Securities Inc., ING and UniCredit.

The transaction will be used to refinance an existing roughly $652 million equivalent term loan B.

Orion is a Luxembourg-based producer of specialty and high-performance carbon black products.

Agiliti readies loan

Agiliti set a lender call for 11 a.m. ET on Wednesday to launch a fungible $150 million incremental term loan due January 2026 that is talked with an original issue discount of 99.027, according to a market source.

Pricing on the incremental term loan is Libor plus 300 bps with a 0% Libor floor.

Commitments are due at noon ET on Sept. 22, the source added.

JPMorgan Chase Bank is leading the deal that will be used with cash on hand to fund the acquisition of Sizewise Rentals LLC, a Lenexa, Kan.-based manufacturer and distributor of specialty hospital beds, surfaces and patient handling equipment, in a stock purchase transaction valued at $230 million.

Closing is expected on Oct. 1, subject to customary conditions.

Agiliti is a Minneapolis-based essential service provider to the U.S. healthcare industry.

Consilio joins calendar

Consilio will hold a lender call at 3 p.m. ET on Wednesday to launch a fungible $160 million incremental first-lien term loan due May 2028, a market source said.

Pricing on the incremental term loan is Libor plus 400 bps with a 0.5% Libor floor, in line with existing first-lien term loan pricing, and the debt has 101 soft call protection through November 2021.

Original issue discount talk on the incremental term loan is not yet available.

Commitments are due at 5 p.m. ET on Sept. 22, the source added.

Credit Suisse Securities (USA) LLC and Stone Point are leading the deal that will be used to fund a tuck-in acquisition.

Consilio is a Washington, D.C.-based provider of eDiscovery and document review solutions.

American Bath on deck

American Bath Group scheduled a lender call for 10 a.m. ET on Wednesday to launch a fungible $150 million incremental covenant-lite first-lien term loan (B2/B-) due December 2027, according to a market source.

Like the existing first-lien term loan, the incremental term loan is priced at Libor plus 375 bps with a 0.5% Libor floor.

Original issue discount talk on the incremental term loan is still to be announced.

Commitments are due at 5 p.m. ET on Sept. 22, the source added.

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to fund tuck-in acquisitions and repay revolver borrowings.

American Bath is an Arlington, Tex.-based manufacturer of showers, bathtubs and related accessories.

Xplornet plans call

Xplornet Communications set a lender call for 2 p.m. ET on Wednesday to launch C$1.525 billion equivalent U.S. dollar term loans, split between a C$1.175 billion equivalent U.S. seven-year first-lien term loan and a C$350 million equivalent U.S. eight-year second-lien term loan, a market source remarked.

The first-lien term loan has 101 soft call protection for six months and the second-lien term loan has hard call protection of 102 in year one and 101 in year two, the source added.

Barclays is the left lead on the deal that will be used to finance the acquisition of spectrum, fund a tuck-in acquisition and refinance an existing first-lien term loan.

Xplornet is a Woodstock, New Brunswick-based broadband service provider in Canada.

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