Calpine, Victory break; Presidio, Westinghouse, Element revised; ASM accelerated

By Sara Rosenberg

New York, Jan. 14 – Calpine Corp. finalized the spread on its term loan B-10 at the low end of guidance before freeing up for trading on Tuesday, and Victory Capital Holdings Inc.’s term loan B made its way into the secondary as well.

In more happenings, Presidio Holdings Inc. lowered price talk on its term loan B and tightened the issue price, and Westinghouse (Brookfield WEC Holdings Inc.) firmed pricing on its first-lien term loan at the low end of talk and added step-down.

Also, Element Materials Technology increased the size of its U.S. and euro add-on term loan B debt and revised original issue discount talk on the euro tranche, and ASM Global (SMG) moved up the commitment deadline for its incremental first-lien term loan.

Furthermore, American Airlines Inc., BroadStreet Partners Inc., Red Ventures LLC, Novaria Group, Fluidra (Zodiac Pool Solutions LLC), Ocwen Financial Corp. and Ineos Styrolution announced price talk with launch.

Additionally, Froneri International Ltd. released tranching and price guidance on its credit facilities in preparation for its upcoming bank meetings, and Iridium Satellite LLC and Grocery Outlet Inc. (GOBP Holdings Inc.) surfaced with new deal plans.

Calpine updated, trades

Calpine set pricing on its $748,125,000 first-lien term loan B-10 (Ba2/BB) due Aug. 12, 2026 at Libor plus 200 basis points, the tight end of the Libor plus 200 bps to 225 bps talk, according to a market source.

As before, the term loan B-10 has a 0% Libor floor, a par issue price and 101 soft call protection for six months.

Commitments remained due at noon ET on Tuesday and the loan broke for trading later in the day, with levels quoted at par 3/8 bid, par 5/8 offered, another source added.

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to reprice an existing term loan B-10 down from Libor plus 250 bps.

Calpine is a Houston-based provider of power generation services.

Victory hits secondary

Victory Capital’s roughly $952 million term loan B (Ba3/BB-) due July 1, 2026 began trading too, with levels seen at par ¾ bid, 101¼ offered, a trader remarked.

Pricing on the term loan B is Libor plus 250 bps with a 0% Libor floor and it was issued at par. The debt has 101 soft call protection for six months.

During syndication, the spread on the term loan B was lowered from Libor plus 275 bps.

RBC Capital Markets, Barclays and BMO Capital Markets are leading the deal that will be used to reprice an existing term loan B down from Libor plus 325 bps. Barclays is the administrative agent.

Closing is expected on Friday.

Victory Capital is a Brooklyn, Ohio-based asset management firm.

Presidio reworked

Back in the primary market, Presidio Holdings cut price talk on its $625 million seven-year term loan B (B1/B) to a range of Libor plus 350 bps to 375 bps from Libor plus 450 bps and revised the original issue discount to 99.75 from talk in the range of 98.5 to 99, a market source said.

The term loan still has a 0% Libor floor and 101 soft call protection for six months.

Commitments are due noon ET on Wednesday, moved up from noon ET on Thursday, the source added.

J.P. Morgan Securities LLC, Citigroup Global Markets Inc., RBC Capital Markets, BofA Securities, Inc. and MUFG are leading the loan that will be used with $400 million of senior notes and $400 million of senior secured notes to help fund the already completed acquisition of the company by BC Partners for $16.60 in cash per common share. The transaction is valued at about $2.2 billion, including Presidio’s net debt.

Presidio is a New York-based IT solutions provider.

Westinghouse sets spread

Westinghouse firmed pricing on its $3,031,000,000 first-lien term loan (B2/B/B+) due August 2025 at Libor plus 300 bps, the low end of the Libor plus 300 bps to 325 bps guidance, and added a 25 bps step-down at B1/B+ corporate ratings with stable outlooks, according to a market source.

The term loan still has a 0.75% Libor floor, a par issue price and 101 soft call protection for six months.

Commitments continue to due at noon ET on Wednesday, the source said.

Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Deutsche Bank Securities Inc., BMO Capital Markets, RBC Capital Markets, Barclays, Credit Agricole and BNP Paribas Securities Corp. are leading the deal that will be used to reprice an existing term loan down from Libor plus 350 bps.

Westinghouse is a Pittsburgh-based provider of infrastructure services to a nuclear reactor fleet.

Element tweaks deal

Element Materials Technology lifted its U.S. and euro add-on term loan B due June 2024 to $171 million equivalent from $150 million equivalent and changed the original issue discount talk on the euro piece to a range of 99 to 99.5 from a range of 98.5 to 99, a market source said.

At launch, the add-on split was a $130 million equivalent euro tranche and a $20 million U.S. tranche. The new split will be confirmed closer to the commitment deadline, the source continued.

The add-on euro term loan B is priced at Euribor plus 325 bps with a 0% floor and the add-on U.S. term loan is priced at Libor plus 350 bps with a 0% Libor floor, in line with existing euro and U.S. pricing.

The U.S. add-on loan is talked with an original issue discount of 99.5.

Commitments are due on Wednesday.

HSBC is the physical bookrunner on the deal that will be used to refinance existing debt, including drawings under a capex facility and a revolver. BofA Securities, Inc., Credit Agricole, ING, Mizuho and SMBC are bookrunners on the deal.

Element Materials is a U.K.-based materials testing and product qualification testing provider.

ASM revises deadline

ASM Global accelerated the commitment deadline for its fungible $190 million incremental first-lien term loan (B1/BB-) due January 2025 to 3 p.m. ET on Tuesday from Wednesday, a market source remarked.

Talk on the incremental term loan is Libor plus 275 bps to 300 bps with a 0% Libor floor and an original issue discount of 99.5.

The company’s existing roughly $415 million first-lien term loan is priced at Libor plus 300 bps, but would be repriced to match the incremental loan if the spread firms at Libor plus 275 bps.

All of the first-lien term loan debt is getting 101 soft call protection for six months.

Jefferies LLC, Nomura, BofA Securities, Inc., Goldman Sachs Bank USA and Macquarie Capital (USA) Inc. are leading the deal that will be used to pay down existing second-lien term loan borrowings.

ASM is a venue management company, providing a full range of venue management and food & beverage services.

American holds call

In more primary news, American Airlines held its lender call on Tuesday and launched to investors a $1.215 billion seven-year term loan B at talk of Libor plus 175 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.

Citigroup Global Markets Inc. is leading the deal that will be used to amend and extend an existing $1.202 billion term loan B due 2021 priced at Libor plus 200 bps, and to pay fees and expenses.

Commitments from existing lenders are due at noon ET on Jan. 22 and commitments from new lenders are due at noon ET on Jan. 23, the source added.

Closing is targeted for the week of Jan. 27.

American Airlines is a Fort Worth-based airline company.

BroadStreet reveals talk

BroadStreet Partners announced talk of Libor plus 325 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months on its $1.111 billion seven-year term loan B (B) that launched with a morning call, a market source said.

Commitments are due at 5 p.m. ET on Jan. 23, the source added.

RBC Capital Markets LLC, BMO Capital Markets, Barclays, Bank of Nova Scotia and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to refinance an existing $866 million term loan B and to fund acquisitions.

Ontario Teachers’ Pension Plan and Century Equity Partners are the sponsors.

BroadStreet is a Columbus, Ohio-based insurance broker.

Red Ventures repricing

Red Ventures hosted a lender call during the session to launch a $2.284 billion term loan B talked at Libor plus 250 bps to 275 bps with a 0% Libor floor, an original issue discount of 99.875 to par and 101 soft call protection for six months, according to a market source.

Commitments are due at noon ET on Jan. 22, the source said.

BofA Securities, Inc. is leading the deal that will be used to reprice an existing term loan down from Libor plus 300 bps.

Red Ventures is a Fort Mill, S.C.-based technology-enabled customer acquisition platform.

Novaria launches

Novaria Group held its bank meeting during the session, launching its $220 million seven-year term loan B at talk of Libor plus 550 bps to 575 bps with step-downs, a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, a market source remarked.

The company’s $260 million of credit facilities also include a $40 million revolver.

Commitments are due on Jan. 28, the source added.

RBC Capital Markets and KKR Capital Markets are leading the deal that will be used to help fund the buyout of the company by KKR from Rosewood Private Investments and Tailwind Advisors.

Closing is expected on Jan. 31.

Novaria is a Fort Worth-based manufacturer of specialty aerospace hardware.

Fluidra sets guidance

Fluidra came out with talk of Libor plus 175 bps to 200 bps with a 0% Libor floor and a par issue price on its $492 million first-lien term loan (Ba3/BB) due July 2025 that launched with a morning call, according to a market source.

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

Commitments are due at 5 p.m. ET on Jan. 21.

Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc. and BBVA are leading the deal, which will be used to reprice an existing term loan down from Libor plus 225 bps.

Fluidra is a Sabadell, Spain-based provider of pool equipment and solutions.

Ocwen proposed terms

Ocwen Financial launched on its morning call its amended and extended senior secured term loan B (B2/B+) due May 2022 at talk of Libor plus 600 bps with a 50 bps step-up at 12 months, a 1% Libor floor, an original issue discount/extension fee of 97.5/2.5% and hard call protection of 102 for 24 months, a market source said.

The term loan B is currently sized at $326 million, but the company will make a minimum $103.4 million paydown of the term loan at closing, plus an additional dollar-for-dollar paydown for the amount of the term loan extended above a 90% minimum extension threshold.

This transaction would extend the term loan B maturity from December 2020, raise pricing from Libor plus 500 bps and increase amortization to 10% per annum from 5% per annum, the source added.

Commitments are due at noon ET on Jan. 22.

Barclays is the agent on the deal.

Ocwen is a West Palm Beach, Fla.-based non-bank mortgage servicer and originator.

Ineos Styrolution talk

Ineos Styrolution launched a $202 million term loan (Ba2/BB) and a €500 million term loan (Ba2/BB) at talk of Libor/Euribor plus 225 bps to 250 bps with a 0% floor, an original issue discount of 99.75 and 101 soft call protection for six months, a market source remarked.

Commitments are due on Jan. 22, the source added.

HSBC is the left lead on the U.S. term loan and BNP Paribas is the left lead on the euro term loan. Barclays is the administrative agent.

Proceeds will be used to refinance existing debt and fund a dividend.

Ineos Styrolution is a Germany-based styrenics supplier.

Froneri details emerge

Froneri International announced structure and price talk on its credit facilities that will launch with a bank meeting in New York at 10 a.m. ET on Wednesday and bank meeting in London on Thursday, according to a market source.

The facilities consist of a €600 million equivalent multi-currency 6.5-year revolver (B1/B+), a $1.68 billion seven-year covenant-lite first-lien term loan (B1/B+), a €2.3 billion seven-year covenant-lite first-lien term loan (B1/B+), a £415 million seven-year covenant-lite first-lien term loan (B1/B+), a $355 million eight-year covenant-lite second-lien term loan (B3/B-) and a €430 million eight-year covenant-lite second-lien term loan (B3/B-), the source said.

Talk on the revolver is Euribor plus 275 bps with a 0% floor, talk on the U.S. first-lien term loan is Libor plus 300 bps with a 0% Libor floor and an original issue discount of 99.5, talk on the euro first-lien term loan is Euribor plus 300 bps to 325 bps with a 0% floor and a discount of 99.5, talk on the pound sterling first-lien term loan is Libor plus 375 bps to 400 bps with a 0% floor and a discount of 99, talk on the U.S. second-lien term loan is Libor plus 700 bps with a 0% Libor floor and a discount of 99, and talk on the euro second-lien term loan is Euribor plus 700 bps to 725 bps with a 0% floor and a discount of 99, the source continued.

Froneri call protection

Froneri’s first-lien term loans have 101 soft call protection for six months, and the second-lien term loans have call protection of 102 in year one and 101 in year two.

Commitments are due at noon ET on Jan. 29, the source added.

Credit Suisse is the U.S. physical bookrunner, and Credit Suisse and Goldman Sachs are the European physical bookrunners. BofA Securities, Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., HSBC and J.P. Morgan Securities LLC are joint bookrunners. Credit Suisse is the agent.

The new credit facilities will be used to fund the acquisition of Nestle USA’s ice cream business for $4 billion, to refinance existing debt and for general corporate purposes.

Closing is expected this quarter, subject to customary regulatory approvals.

Froneri, a joint venture between PAI Partners and Nestle, is a U.K.-based ice cream manufacturer.

Iridium on deck

Iridium Satellite set a lender call for 10:30 a.m. ET on Wednesday to launch a $200 million incremental covenant-lite term loan B due November 2026, according to a market source.

Like the existing term loan B, the incremental term loan is priced at Libor plus 375 bps, the source said.

Deutsche Bank Securities Inc., Barclays, Credit Suisse Securities (USA) LLC and Wells Fargo Securities LLC are leading the deal that will be used with cash on hand to redeem the company’s existing $360 million secured notes.

Iridium is a McLean, Va.-based satellite communications company.

Grocery joins calendar

Grocery Outlet will hold a lender call at 2 p.m. ET on Wednesday to launch a repricing of its existing $460,187,500 first-lien term loan B, a market source said.

Morgan Stanley Senior Funding Inc. is the left lead on the deal.

Grocery Outlet is an Emeryville, Calif.-based grocery store operator.

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