Quest Software, Golden Nugget, Cano Health, Hudson River Trading disclose price talk

By Sara Rosenberg

New York, Jan. 5 – On the new-issue front on Wednesday, Quest Software, Golden Nugget LLC, Cano Health LLC and Hudson River Trading LLC all released price talk in connection with their lender calls.

Additionally, SRS Distribution Inc., RV Retailer, TricorBraun Holdings Inc. and Vaco Holdings LLC joined this week’s primary calendar.

Quest guidance

Quest Software held its lender call on Wednesday morning and announced price talk on its $2.71 billion seven-year first-lien term loan B (B2/B-) and $865 million eight-year second-lien term loan (Caa2/CCC+), according to a market source.

Talk on the first-lien term loan is SOFR plus 400 basis points to 425 bps with a 25 bps step-down at 0.5x inside closing date first-lien leverage and a 25 bps step-down upon an initial public offering, a 0.5% floor and an original issue discount of 99 to 99.5, and talk on the second-lien term loan is SOFR plus 725 bps to 750 bps with a 0.5% floor and a discount of 98.5 to 99, the source said.

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.

Commitments are due on Jan. 19, the source added.

Quest lead banks

Lead arrangers on Quest Software’s term loans are Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc., BofA Securities Inc., BMO Capital Markets, Barclays, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Golub Capital, HSBC Securities (USA) Inc., Security Benefit, Wells Fargo Securities LLC, Citizens Bank, Clearlake Capital, Antares Capital, Deutsche Bank Securities Inc., CBAM, BNP Paribas Securities Corp., SVB, UBS Investment Bank and SPC, with Goldman the left lead on the first-lien and Morgan Stanley the left lead on the second-lien.

The new debt will be used to help fund the buyout of the company by Clearlake Capital Group LP from Francisco Partners.

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

Quest Software is a cybersecurity, data intelligence and IT operations management software provider.

Golden Nugget talk

Golden Nugget launched on a 4 p.m. ET lender call $2.35 billion of credit facilities (B+), split between a $500 million five-year revolver and a $1.85 billion seven-year first-lien term loan, a market source remarked.

Talk on the term loan is SOFR+CSA plus 400 bps with two leverage-based step-downs, a 0.5% floor, an original issue discount of 99.5 and 101 soft call protection for six months, the source continued.

CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

Commitments are due at 3 p.m. ET on Jan. 12, the source added.

Jefferies LLC is the left lead on the deal that will be used with $1.85 billion of senior secured notes and $1.85 billion of senior unsecured notes to refinance existing debt.

Golden Nugget is a diversified restaurant, hospitality, entertainment and gaming company.

Cano holds call

Cano Health emerged in the morning with plans to hold a lender call at 2:30 p.m. ET to launch a $644 million covenant-lite first-lien term loan (B2/B) due November 2027 talked at SOFR+CSA plus 400 bps with a 25 bps step-down at B2/B stable ratings, a 0.5% SOFR+CSA floor and a par issue price, according to a market source.

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

CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

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

Credit Suisse Securities (USA) LLC is leading the deal that will be used to reprice an existing term loan from Libor plus 450 bps with a 25 bps step-down at B2/B stable ratings and a 0.75% Libor floor.

Cano Health is a Miami-based tech-powered, value-based care delivery platform.

Hudson proposed terms

Hudson River Trading launched on its morning call its fungible $100 million incremental first-lien term loan B due March 18, 2028 at talk of SOFR+CSA plus 300 bps with a 0% floor and an original issue discount of 98.56, a market source said.

CSA is 0.11448% for one month, 0.26161% for three months and 0.42826% for six months, the source continued.

The company is also seeking an amendment to its existing facility to migrate to SOFR subject to a negative consent amendment, and seeking an amendment to its revolver to allow for the securing of a pari passu revolver under the existing general liens basket.

Commitments and consents are due at 5 p.m. ET on Jan. 12, the source added.

Goldman Sachs Bank USA, BofA Securities Inc. and JPMorgan Chase Bank are leading the deal.

The incremental loan will be used for general corporate purposes, including additional trading capital.

Hudson River Trading is a New York-based electronic market maker and liquidity provider.

SRS readies loan

SRS Distribution scheduled a lender call for noon ET on Thursday to launch a non-fungible $700 million incremental term loan (B2/B-) due 2028, according to a market source.

The term loan has 101 soft call protection for six months, the source said.

BofA Securities Inc. and Barclays are leading the deal that will be used to help fund acquisitions, including the recently completed purchase of AquaCentral, a distributor of pool equipment and supplies, from Tenex Capital Management.

SRS Distribution is a McKinney, Tex.-based building materials distributor.

RV Retailer on deck

RV Retailer set a lender call for 11 a.m. ET on Thursday to launch a fungible $200 million incremental term loan B and a repricing of its existing $596 million term loan B, a market source remarked.

Goldman Sachs Bank USA is leading the deal.

The incremental term loan will be used to fund the company’s near-term acquisition pipeline.

Redwood Capital is the sponsor.

RV Retailer is a recreational vehicle retail company.

TricorBraun joins calendar

TricorBraun will hold a lender call at 10 a.m. ET on Thursday to launch a fungible $180 million covenant-lite incremental first-lien term loan due March 3, 2028 (B2/B-) talked with an original issue discount of 98.65, according to a market source.

Pricing on the incremental term loan is Libor plus 325 bps with a 0.5% Libor floor, in line with existing term loan pricing.

Commitments are due at 5 p.m. ET on Jan. 12, the source added.

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to repay ABL borrowings.

TricorBraun is a St. Louis-based provider of packaging products.

Vaco coming soon

Vaco Holdings scheduled a lender call for 11 a.m. ET on Friday to launch $640 million of credit facilities, a market source said.

The facilities consist of a $40 million five-year revolver and a $600 million seven-year first-lien term loan, the source added.

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

Jefferies LLC, Antares Capital and KKR Capital Markets are leading the deal that will be used primarily to repay existing debt and make a shareholder distribution.

Vaco is a provider of staffing and consulting services.

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