Doosan Bobcat launches $1.24 billion; Delos Finance, Cypress Semiconductor bring repricings

By Paul A. Harris

Portland, Ore., Feb. 26 – The technical tailwind in the bank loan market found investors marking loan prices higher on Monday, a trader said.

The W.R. Grace & Co. term loan B was par 1/8 bid, up from the 99 7/8 issue price.

The daily cash flows of the dedicated bank loan funds were positive at $86 million on Friday, the most recent session for which data was available at press time.

In an active new issue market Doosan Bobcat disclosed plans to launch a $1,235,000,000 term loan B on a Tuesday lender call.

And Delos Finance Sarl along with Cypress Semiconductor Corp. came with repricing deals.

Doosan Bobcat launches Tuesday

Doosan Bobcat plans to launch a $1,235,000,000 term loan B on a Tuesday lender call.

The deal, being led by BofA Merrill Lynch, is coming with a spread of Libor plus 200 basis points at par.

Bobcat Co., a West Fargo, N.D.-based manufacturer of farm and construction equipment plans to use the proceeds to refinance debt.

AerCap’s Delos launches repricing

Delos Finance Sarl launched a repricing of its $1.5 billion term loan B due October 2023 (Baa2/BBB-) without a call on Monday.

The repricing is talked at Libor plus 175 basis points, down from Libor plus 200 bps at present.

The 0% Libor floor will be retained, and the repriced loan is offered at par.

Soft call protection at 101 will be refreshed for six months.

Deutsche Bank is left lead arranger and RBC is also a lead arranger.

Commitments are due by 12 p.m. ET on March 2.

Cypress brings repricings

Cypress Semiconductor Corp. plans to launch $1,045,098,684 of loan repricings on a lender call scheduled to get underway at 11 a.m. ET on Tuesday.

The deal includes a $540 million senior secured revolver and a $505,098,684 senior secured term loan B.

Morgan Stanley Senior Funding, Inc., Barclays Bank PLC, and SunTrust Robinson Humphrey, Inc. are arranging the transaction.

Cypress is a San Jose, Calif.-based semiconductor manufacturer.

Pro Mach upsizes

Pro Mach Group Inc. upsized its seven-year covenant-light first-lien term loan B to $810 million from $760 million.

Talk tightened to Libor plus 300 basis points. Previous talk had the loan coming at Libor plus 325 bps with a step-down to Libor plus 300 bps at 0.5 times inside closing net first-lien leverage.

Pricing is finalized at 99.75, the cheap end of the 99.5 to 99.75 price talk.

Commitments were due at Monday's close. Previously books had been expected to remain open until Wednesday.

Morgan Stanley Senior Funding Inc. and Goldman Sachs Bank USA are the joint lead arrangers and bookrunners on the deal.

Proceeds will be used to fund the buyout of the company by Leonard Green & Partners from AEA Investors and to pay related fees and expenses.

Learning Care dividend deal

Learning Care Group, Inc. plans to launch a $520 million term loan B on a lender call scheduled to get underway at 2:30 p.m. ET on Tuesday.

Morgan Stanley Senior Funding, Inc., Bank of America Merrill Lynch, N.A., BMO Capital Markets Corp., Credit Suisse Securities (USA) LLC, and Goldman Sachs Bank USA are arranging the deal.

The $595 million senior secured credit facility also includes a $75 million revolver.

The Novi, Mich.-based provider of early education and childcare services plans to use the proceeds, alongside a privately placed $160 million second lien term loan and $300 million of preferred equity, to pay a distribution to shareholders and refinance debt.

Air Medical fixes terms

Air Medical Group Holdings Inc. fixed terms in the repricing of about $1.921 billion of term loan debt.

The deal, as previously structured, includes a $933,371,662 senior secured covenant-light term loan B-1 due April 28, 2022.

In addition the company is repricing a $984,750,000 term loan B.

Both are set to reprice at Libor plus 325 basis points, with a 1% Libor floor at par.

There is also an amendment that would create one fungible tranche.

Recommitments are due at noon ET on Wednesday.

Morgan Stanley Senior Funding Inc. and KKR Capital Markets LLC are the joint lead arrangers and bookrunners on the deal.

Shutterfly finalizes pricing

Shutterfly Inc. set pricing on its $825 million senior secured covenant-light term loan B-2 due Aug. 17, 2024 (Ba3/BB-).

The deal comes with a 275 basis points spread to Libor, at the tight end of the 275 to 300 bps spread talk. The spread steps down to 250 bps if leverage falls to 0.5-times inside of closing secured net leverage.

The reoffer price is 99.75, rich to the 99.5 price talk.

The deal features a 0% Libor floor, as well as 101 soft call protection for six months, amortization of 1% per annum and a ticking fee of half the margin from days 46 to 90 and the full margin thereafter.

Commitments were due at Monday's close.

Morgan Stanley Senior Funding Inc. and SunTrust Robinson Humphrey Inc. are the joint lead arrangers and bookrunners on the deal.

Proceeds will be used to help fund the acquisition of Lifetouch for $825 million in cash and refinance certain debt at Lifetouch.

Cullligan add-on and repricings

Arrangers plan a lender call at 2 p.m. ET Tuesday to launch transactions related to $713,137,500 of Culligan bank debt.

The deal includes a $72 million add-on to the AI Aqua Merger Sub, Inc. senior secured term loan B-1, as well as a repricing of $344,137,500 of the AI Aqua Merger Sub senior secured term loan B, and a repricing of $297 million of the AI Aqua Merger Sub senior secured term loan B-1.

Morgan Stanley Senior Funding, Inc., Royal Bank of Canada, BMO Capital Markets Corp., and Citigroup Global Markets Inc. are the arrangers.

The proceeds from the add-on will be used to finance the acquisition of Paragon Water Systems.

Delek launches Wednesday

Delek US Holdings, Inc. plans to launch a $650 million seven-year term loan B with a bank meeting and lender call set to get underway at 11 a.m. ET on Wednesday.

Wells Fargo Securities LLC is the left lead arranger.

Proceeds will be used to refinance debt.

Genworth tightens pricing

Genworth Financial Inc. tightened pricing on its $450 million five-year senior secured term loan (Ba3/B+) to Libor plus 450 basis points from talk of Libor plus 475 bps to 500 bps.

Genworth also tightened the original issue discount to 99.5 from the talked level of 98.5.

The hard call price after one year was trimmed to 101 from 102 previously.

All other terms were left unchanged.

Recommitments were due at 5 p.m. ET on Monday.

Goldman Sachs Bank USA and JPMorgan Chase Bank are the joint lead arrangers and bookrunners on the deal with Goldman on the left. Co-managers include Barclays, Credit Suisse Securities (USA) LLC and Bank of America Merrill Lynch.

Proceeds will be used with cash on hand to repay existing debt and transaction fees and expenses, and could be used to pay the company’s 6.515% senior notes due May 2018.

Zest Dental sets talk

Zest Dental Solutions launched a $430 million credit facility at a bank meeting on Monday and set talk.

The facility includes a $265 million seven-year senior secured first-lien term loan (B2/B) talked at Libor plus 350 basis points with a 0% Libor floor and offered at a price of 99.5, a $115 million eight-year senior secured second-lien term loan (Caa2/CCC+) talked at Libor plus 750 bps with a 0% Libor floor and offered at 99 and a $55 million senior secured revolving credit facility.

Both tranches are covenant light.

Ivory Merger Sub, Inc. is the borrower for the facility and will be merged into Charger Acquisition Corp. on the closing date.

Proceeds will be used to fund BC Partners’ acquisition of Zest Dental from Avista Capital Partners.

Citigroup is left lead arranger and administrative agent on the first-lien term loan while RBC is left lead arranger and administrative agent on the second-lien tranche. The two banks are joined as lead arrangers by Credit Suisse and Jefferies.

Commitments are due by 5 p.m. ET on March 7.

Telenet launches at 99.75

Telenet launched a $301 million fungible add-on to its term loan B due March 2026 with a lender call.

The loan, designated term loan AL2, has a coupon of Libor plus 250 basis points with a 0% Libor floor, and the add-on is talked at an original issue discount of 99.75.

Proceeds will be used to refinance the company’s senior secured notes due 2024.

Goldman Sachs, BNP Paribas, Scotia and Societe Generale are lead arrangers with Goldman on the left.

Commitments are due by 12 p.m. ET on March 1.

VAC upsizes loan

VAC (VAC Germany Holding GmbH and New VAC US LLC) upsized its seven-year covenant-light first-lien term loan to $225 million from $200 million.

Pricing was finalized at Libor plus 400 basis points with a 1% Libor floor and an original issue discount of 99.5.

Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. are the leads on the deal.

Recommitments were due on Monday.

Proceeds will be used to refinance existing debt.

Arctic Glacier to launch Tuesday

Arctic Glacier LLC plans to launch a new credit facility with a lender call at 10:30 a.m. ET on Tuesday.

Credit Suisse is leading the transaction.

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