Culligan upsizes tap, prices $741 million three-part deal; McDermott $2.15 billion launches Monday

By Paul A. Harris

Portland, Ore., March 2 – In Friday's leveraged loan market Culligan priced an upsized $741,137,500 three-part bank debt package.

And McDermott International Inc. set a Monday lender call for a $2.15 billion seven-year first-lien term loan.

Culligan prices three-part deal

Culligan priced an upsized $741,137,500 three-part bank debt package.

The deal, which was upsized from $713,137,500, saw spreads on all three tranches set at Libor plus 325 basis points with 25 bps leverage step-downs, atop 1% Libor floors.

All tranches mature on Dec. 13, 2023.

All three tranches priced at par.

The deal included:

• $297 million of the AI Aqua Merger Sub senior secured term loan B-1;

• $344,137,500 of AI Aqua Merger Sub incremental term loan B; and

• An upsized $100 million (from $72 million) term loan B add-on.

Joint lead arranger and joint bookrunner Morgan Stanley Senior Funding, Inc. is the administrative agent. Royal Bank of Canada, BMO Capital Markets Corp. and Citigroup Global Markets Inc. are also joint lead arrangers and joint bookrunners.

The proceeds from the add-on will be used to finance the acquisition of Paragon Water Systems. With the additional proceeds resulting from the $28 million upsizing of the term loan B add-on a contemplated second lien loan tranche was abandoned.

McDermott launches Monday

McDermott International will hold a lender call on Monday for a $2.15 billion seven-year first-lien term loan.

Barclays, Credit Agricole, Goldman Sachs, MUFG, ABN Amro, RBC and Standard Chartered are lead arrangers. Barclays is on the left and also has the role of administrative agent.

Commitments are due March 21.

Proceeds from the loan will be used to refinance existing debt, to cash collateralize letters of credit and to pay fees and expenses.

Boardriders launches Tuesday

Boardriders, Inc. will launch a $450 million term loan B at a bank meeting on Tuesday, according to a market source.

Deutsche Bank, BofA Merrill Lynch and Macquarie are bookrunners with Deutsche on the left.

The term loan has a total net leverage covenant.

Boardriders will use the proceeds to acquire Billabong International Ltd.

Cypress Semiconductor sets final terms

Cypress Semiconductor Corp. completed the repricing of its $505,098,684 senior secured term loan B (Ba2/BB) repricing with a Libor plus 225 basis points spread at par.

The spread came at the tight end of the Libor plus 225 bps to 250 bps spread talk. The reoffer price came on top of price talk.

Joint lead arranger and joint bookrunner Morgan Stanley is the administrative agent. Barclays Bank plc and SunTrust Robinson Humphrey, Inc. are also joint lead arrangers and joint bookrunners.

Learning Care upsizes

Learning Care Group, Inc. upsized its seven-year term loan B (B2/B-) to $550 million from $520 million, with the additional proceeds earmarked to increase the size of the distribution the company intends to make to its shareholders.

Meanwhile the spread tightened to 325 basis points from 350 bps. The reoffer price increased to 99.75 from 99.5.

Timing is moved ahead. Commitments are due at 5 p.m. ET Tuesday. The books previously were expected to remain open until Thursday.

Morgan Stanley Senior Funding, Inc. is the administrative agent. Bank of America Merrill Lynch, NA, BMO Capital Markets Corp., Credit Suisse Securities (USA) LLC and Goldman Sachs Bank USA are joint bookrunners and arrangers.

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.

Hyland add-on launching

Hyland Software, Inc. plans a $205 million incremental bank loan financing.

The deal will launch with a lender call at 2:30 p.m. ET on Monday.

Included in the transaction is a $110 million incremental first-lien term loan due July 1, 2022 at Libor plus 325 basis points with a 0.75% Libor floor and a $95 million incremental second-lien term loan due July 7, 2025 at Libor plus 700 bps with a 0.75% Libor floor.

Both tranches are fungible with the existing loans.

Credit Suisse, Goldman Sachs and UBS are the arrangers.

Proceeds will be used to finance the acquisition of OneContent.

Arctic Glacier sets terms

Arctic Glacier LLC set final pricing on its $437 million term loan due March 2024 (B2/B-) at the tight end of talk.

The transaction includes a repricing of the company’s $412 million first-lien term loan and a $25 million incremental first-lien term loan.

Final terms are for a coupon of Libor plus 350 basis points, at the low end of talk for a coupon of Libor plus 350 bps to 375 bps. The term loan is currently priced at Libor plus 425 bps.

Other terms are as announced.

The incremental loan is being offered at 99.75 while the repricing is at par.

Both parts have a 1% Libor floor, unchanged from the existing loan.

Proceeds from the add-on will be used to finance tuck-in acquisitions.

Credit Suisse is leading the transaction.

Commitments were Friday.

Life Time $200 million add on

Life Time, Inc. will launch a $200 million add-on to its term loan B due June 15, 2022 on Tuesday.

The call will also cover the company’s fourth quarter results.

With the add-on, the term loan B will increase to $1,517,000,000 in size.

The coupon is Libor plus 275 basis points, and there is a 1% floor for Libor.

The loan has no financial covenants.

Proceeds will be used to repay the $18 million currently drawn on the company’s revolver and to add cash to the balance sheet in order to increase working capital flexibility. The company is looking to extend the time from club openings to sale leasebacks to six months from approximately one month.

Deutsche Bank, BMO, Jefferies, KKR, Macquarie, Mizuho and Nomura are bookrunners with Deutsche on the left. Other banks are to be announced.

Circet €680 million

Circet Groupe will hold a lender meeting on Tuesday in London for a €680 million credit facility.

It includes a €110 million 6.5-year revolver and a €570 million seven-year term loan B.

Deutsche Bank, UBS, NatWest, Societe Generale are physical bookrunners and are joined as bookrunners by Natixis, Credit Agricole, ING, Bank of Ireland, UniCredit and Credit Lyonnais.

Proceeds will be used to help finance the acquisition of Circet by Advent and to pay fees and expenses.

Flora moves up timing

Flora Food Group (currently Unilever’s spreads business) moved up timing on its €4.6 billion equivalent of credit facilities (B1/B+/BB-).

The deadline is now Monday, whereas the book was previously expected to remain open until Tuesday.

As reported, the €700 million 6.5-year revolver is talked at Euribor plus 300 basis points with a 0% floor; the €600 million equivalent U.S. dollar seven-year first-lien term loan is talked at Libor plus 325 bps with a 0% Libor floor; the €2 billion seven-year first-lien term loan is talked at Euribor plus 350 bps with a 0% floor; the €500 million equivalent Polish zloty seven-year first-lien term loan is talked at W plus 350 bps with a 0% floor; and the €800 million equivalent British pound sterling seven-year first-lien term loan is talked at Libor plus 400 bps with a 0% floor, the source said.

All of the term loans are talked with an original issue discount of 99.5 and are covenant-light.

Credit Suisse, Deutsche Bank and KKR are the physical bookrunners on the deal. Bookrunners on the deal are BNP Paribas, Credit Agricole, Goldman Sachs, HSBC, ING, Lloyds, Mizuho, RBC, Societe Generale and UniCredit. Mandated lead arrangers include Commerzbank, mBank, Mediobanca, Rabobank and Raiffeisen.

Proceeds will be used to help fund the acquisition of Unilever’s spreads business by KKR for €6,825,000,000 on a cash-free, debt-free basis and to refinance existing debt.

Albea Beauty dollar, euro refinancing

Albea Beauty Holdings SA will launch a refinancing of its $406 million first-lien term loan and its €385 million first-lien term loan at a bank meeting on Tuesday and an investor call on Wednesday.

The sizes of the new loans (B2/B) match those of the existing tranches, and the maturity dates will be left unchanged at April 2024 in each case.

Credit Suisse and BNP Paribas are bookrunners with BNP Paribas acting as administrative agent.

Commitments are due on March 14.

Cushman & Wakefield launches add-on

Cushman & Wakefield launched a $200 million add-on to its Libor plus 325 basis points first lien term loan due November 2021 at 99.28, a market source said on Friday.

Commitments are due March 9.

The spread and a 1% Libor floor are identical to the outstanding loan paper.

The tap will increase the overall size to $2,586,000,000.

UBS is the lead left bookrunner. TPG, Barclays, Citigroup, Credit Suisse, Fifth Third, HSBC, JP Morgan, BofA Merrill Lynch and Mizuho are the joint bookrunners.

The Chicago-based commercial real estate services company plans to use the proceeds for general corporate purposes.

Pike sets lender call

Pike Corp. plans to launch a new $935 million term loan B on a Monday lender call.

Morgan Stanley Senior Funding, Inc., KeyBanc Capital Markets Inc., SunTrust Robinson Humphrey, and Fifth Third Bank are the arrangers.

The Mount Airy, N.C.-based specialty construction and engineering firm plans to use the proceeds to refinance its existing term loan and preferred securities.

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