Welbilt, BroadStreet, CPA, Consilio, Park Place, Horizon break; United Natural reworked

By Sara Rosenberg

New York, Oct. 17 – Welbilt Inc. trimmed pricing on its term loan and set the issue price at the tight end of talk, BroadStreet Partners Inc. updated the original issue discount on its add-on term loan B for a second time, and CPA Global (Capri Acquisitions Bidco Ltd.) modified the discount on its incremental term loan, and then all of these deals began trading on Wednesday.

Also, Consilio (GI Revelation Acquisition LLC) and Park Place Technologies set issue prices on their add-on term loans at the tight side of guidance before freeing up for trading, and Horizon Pharma Inc.’s term loan B hit the secondary market as well.

In more happenings, United Natural Foods Inc. reworked its term loan B and ABL revolver sizes, added a short-dated tranche to the capital structure and sweetened the spread, original issue discount and call protection on its B loan, and Grocery Outlet Inc. (GOBP Holdings Inc.) tightened the issue price on its first-lien term loan and set the spread on its second-lien term loan at the low end of guidance.

Furthermore, Nexstar Broadcasting Group Inc. firmed the issue price on its term loan B at the tight end of talk, Cision (Canyon Cos. Sarl) finalized spreads on its term loans at the low side of talk, and Paradigm Outcomes (Comet Acquisition Inc.) and Hyland Software Inc. moved up the commitment deadlines on their loan transactions.

Additionally, Sandvine Corp., Athletico Physical Therapy, GFL Environmental Inc., Confie Seguros Holding II Co., Ply Gem, Inc., Delek US Holdings Inc. and MotorCity (CCM Merger Inc.) disclosed price talk with launch, and First Eagle Holdings Inc. and McAfee LLC emerged with new deal plans.

Welbilt flexes, hits secondary

Welbilt cut pricing on its $900 million seven-year term loan (BB-) to Libor plus 250 basis points from Libor plus 275 bps and set the original issue discount at 99.75, the tight end of the 99.5 to 99.75 talk, while leaving the 0% Libor floor and 101 soft call protection for six months unchanged, a market source said.

Once final terms were in place, the term loan started trading and levels were seen at par 3/8 bid, par ¾ offered, the source added.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance existing debt.

Welbilt is a New Port Richey, Fla.-based commercial foodservice equipment company.

BroadStreet tweaked, breaks

BroadStreet Partners changed the original issue discount on its fungible $150 million add-on term loan B due Nov. 8, 2023 to 99.875 from revised talk of 99.75 and initial talk in the range of 99.5 to 99.75 talk, according to a market source.

The add-on term loan is priced at Libor plus 325 bps with a 1% Libor floor, which matches pricing on the company’s existing $591 million term loan B.

Commitments remained due at noon ET on Wednesday and the debt freed to trade in the afternoon, with levels seen at par 1/8 bid, par ½ offered, a trader added.

RBC Capital Markets LLC is the left lead on the deal that will used for acquisitions and to repay drawn revolver borrowings.

BroadStreet is a Columbus, Ohio-based insurance broker.

CPA modified, frees up

CPA Global adjusted the original issue discount on its $120 million incremental term loan (B2/B-) due Nov. 1, 2024 to 99.75 from 99.5, according to a market source.

The incremental loan is priced at Libor plus 325 bps with a 0% Libor floor, in line with existing term loan pricing.

Late in the day, the incremental term loan surfaced in the secondary market, with levels quoted at 99 7/8 bid, par 1/8 offered, the source said.

Jefferies LLC is leading the deal that will be used to fund the acquisition of Clarivate IPMS.

Closing is expected this week.

CPA is an intellectual property management and technology services company.

Consilio sets OID, trades

Consilio firmed the original issue discount on its fungible $150 million incremental first-lien term loan (B2/B) due April 2025 at 99.5, the tight end of the 99.25 to 99.5 talk, a market source remarked.

As before, the incremental term loan is priced at Libor plus 500 bps with a 0% Libor floor, in line with the existing term loan, and has 101 soft call protection until April 2019.

During the session, the incremental loan broke for trading, and levels were quoted at par bid, par ½ offered, the source added.

Jefferies LLC, SunTrust Robinson Humphrey Inc., Goldman Sachs Bank USA and KKR Capital Markets are leading the deal that will be used to fund the acquisition of DiscoverReady LLC.

Consilio is a provider of eDiscovery, document review and legal consulting services.

Park Place firms, breaks

Park Place Technologies set the issue price on its fungible $50 million add-on first-lien term loan and fungible $13 million add-on second-lien term loan at par, the tight end of the 99.75 to par talk, a market source said.

The first-lien term loan is priced at Libor plus 400 bps with a 1% Libor floor and the second-lien term loan is priced at Libor plus 800 bps with a 1% Libor floor.

After terms finalized, the debt emerged in the secondary market and the first-lien tranche was quoted at par 1/8 bid, par ¾ offered, the source added.

Golub Capital is the lead on the $63 million of term loans, which were oversubscribed.

The debt already funded and closed on Oct. 4 and was used for acquisition financing.

Park Place Technologies is a Cleveland-based provider of post-warranty maintenance for storage, server and networking hardware.

Horizon Pharma tops par

Horizon Pharma’s $818 million senior secured covenant-light term loan B (Ba2/BB-) due March 29, 2024 began trading too, with levels quoted at par ¼ bid, par ¾ offered on the break and then it moved to par 3/8 bid, par ¾ offered, according to a market source.

Pricing on the term loan B is Libor plus 300 bps with a 25 bps step-down if total leverage is 3.5 times and a 1% Libor floor, and it was issued at par. The debt has 101 soft call protection for six months.

Citigroup Global Markets Inc. is leading the deal that will be used to reprice an existing term loan B down from Libor plus 325 bps with a 1% Libor floor.

Closing is expected on Friday.

Horizon Pharma is a Dublin-based biopharmaceutical company.

United Natural restructures

United Natural Foods reduced its seven-year term loan B to $1.8 billion from $2.05 billion, raised pricing to Libor plus 425 bps from Libor plus 375 bps, revised the original issue discount to 98 from 99.5, extended the 101 soft call protection to one year from six months and added a springing maturity to December 2024 if the Whole Foods/Amazon contract is not renewed, according to a market source. The tranche still has a 0% Libor floor.

Also, the company added a $150 million 364-day term loan B to the transaction and upsized its ABL revolver to $2.1 billion from $2 billion, the source said.

Commitments are due at the end of the day on Thursday.

Goldman Sachs Bank USA, Bank of America Merrill Lynch and U.S. Bank are leading the deal that will be used to fund the acquisition of SuperValu for $32.50 per share in cash, or about $2.9 billion, including the assumption of outstanding debt and liabilities, and to refinance existing debt.

Closing is expected this quarter, subject to antitrust approvals, SuperValu shareholder approval and other customary conditions.

United Natural Foods is a Providence, R.I.-based wholesale distributor to the natural, organic and specialty food industry. SuperValu is an Eden Prairie, Minn.-based supermarket operator and wholesale grocery distributor.

Grocery Outlet revised

Grocery Outlet moved the original issue discount on its $725 million seven-year covenant-light first-lien term loan (B2/B-) to 99.75 from 99.5 and finalized pricing on its $150 million eight-year covenant-light second-lien term loan (Caa2/CCC) at Libor plus 725 bps, the low end of the Libor plus 725 bps to 750 bps talk, a market source remarked.

The first-lien term loan is still priced at Libor plus 375 bps with a 0% Libor floor and has 101 soft call protection for six months, and the second-lien term loan still has a 0% Libor floor, a discount of 99 and hard call protection of 102 in year one and 101 in year two.

The Emeryville, Calif.-based grocery store operator’s $975 million of senior secured credit facilities also include a $100 million five-year revolver (B2/B-).

Commitments were due at noon ET on Wednesday, the source added.

Morgan Stanley Senior Funding Inc., Bank of America Merrill Lynch, Deutsche Bank Securities Inc. and Jefferies LLC are leading the deal that will be used to refinance existing debt and fund a shareholder distribution.

Closing is expected on Monday.

Nexstar updated

Nexstar Broadcasting Group finalized the issue price on its $1,657,000,000 covenant-light term loan B (Ba3/BB+) due Jan. 17, 2024 at par, the tight end of the 99.875 to par talk, a market source said.

As before, the term loan is priced at Libor plus 225 bps with a 0% Libor floor, and has 101 soft call protection for six months.

Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., SunTrust Robinson Humphrey Inc., Barclays and Wells Fargo Securities LLC are leading the deal that will be used with a term loan A increase to reprice an existing term loan B down from Libor plus 250 bps with a 0% Libor floor and to partially pay down the existing term loan B.

Nexstar is an Irving, Texas-based diversified media company.

Cision sets spreads

Cision firmed pricing on its $974,650,000 covenant-light term loan B due June 2023 at Libor plus 275 bps, the tight end of the Libor plus 275 bps to 300 bps talk, and on its €247.5 million covenant-light term loan B due June 2023 at Euribor plus 300 bps, the low end of the Euribor plus 300 bps to 325 bps talk, a market source remarked.

As before, both term loans have a 0% floor, a par issue price and 101 soft call protection for six months.

U.S. recommitments were due at 4 p.m. ET on Wednesday and euro recommitments are due at noon BST on Thursday, the source added.

Deutsche Bank Securities Inc. is leading the deal that will be used to reprice existing U.S. and euro term loans.

Cision is a Chicago-based software-as-a-service platform for communications professionals.

Paradigm changes deadline

Paradigm Outcomes accelerated the commitment deadline on its $655 million of credit facilities to Friday from Tuesday, a market source said.

The facilities consist of a $50 million revolver (B2/B), a $450 million seven-year covenant-light first-lien term loan (B2/B) and a $155 million eight-year covenant-light second-lien term loan (Caa2/CCC+).

Talk on the first-lien term loan is Libor plus 375 bps to 400 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, and talk on the second-lien term loan is Libor plus 775 bps to 800 bps with a 0% Libor floor, a discount of 99 and call protection of 102 in year one and 101 in year two.

Credit Suisse Securities (USA) LLC and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to help fund the buyout of the company by Omers Private Equity. Summit Partners, Paradigm’s existing majority owner, will continue to be a shareholder in the company.

Paradigm is a Walnut Creek, Calif.-based provider of complex and catastrophic medical management to the workers’ compensation industry.

Hyland accelerated

Hyland Software moved up the commitment deadline on its fungible $97 million incremental first-lien term loan (B-) due July 1, 2024, extension of its existing $1,373,000,000 first-lien term loan (B-) and fungible $275 million incremental second-lien term loan (CCC) due 2025 to Monday from Oct. 24, according to a market source.

The incremental first-lien term loan and extended first-lien term loan due July 1, 2024 are talked at Libor plus 350 bps with a 0.75% Libor floor and 101 soft call protection for six months, and the incremental second-lien term loan is talked at Libor plus 725 bps with a 0.75% Libor floor, an original issue discount of 99.5 and call protection of 102 in year one and 101 in year two.

Original issue discount talk on the incremental first-lien term loan is 99.75, and a 25 bps extension fee is being offered for the extended first-lien term loan.

With this transaction, pricing on the company’s existing $285 million second-lien term loan due 2025 will be increased to Libor plus 725 bps with a 0.75% Libor floor from Libor plus 700 bps with a 0.75% Libor floor.

The incremental loans will fund a shareholder distribution and the extension will push out the maturity on the existing first-lien term loan by two years while raising pricing from Libor plus 325 bps with a 0.75% Libor floor.

Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA and UBS Investment Bank are leading the deal for the Westlake, Ohio-based enterprise content-management software developer.

Sandvine launches

Also in the primary market, Sandvine held its bank meeting on Wednesday and announced talk on its $400 million seven-year first-lien term loan at Libor plus 450 bps with a 0% Libor floor and an original issue discount of 99.5, a market source remarked.

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

Commitments are due on Oct. 31, the source said.

The company’s $540 million of credit facilities also include a $30 million five-year revolver and a $110 million privately placed second-lien term loan.

Jefferies LLC, UBS Investment Bank and Societe Generale are leading the deal that will be used to refinance existing debt and fund a distribution to shareholders.

Sandvine is a Waterloo, Ont.-based provider of active network intelligence solutions for network operators and enterprises.

Athletico reveals guidance

Athletico Physical Therapy came out with talk of Libor plus 325 bps to 350 bps with a 0% Libor floor and an original issue discount of 99.5 on its $390 million seven-year covenant-light term loan B (B1/B) that launched with a morning meeting, according to a market source.

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

Commitments are due at noon ET on Oct. 26, the source said.

Bank of America Merrill Lynch, BMO Capital Markets, J.P. Morgan Securities LLC and PNC are leading the deal that will be used to refinance existing senior secured credit facilities.

Athletico Physical Therapy is an Oak Brook, Ill.-based provider of progressive outpatient rehabilitation and fitness services.

GFL discloses talk

GFL Environmental released original issue discount talk of 99 to 99.25 on its fungible $1.31 billion incremental term loan B (B1/BB-) due May 31, 2025 that launched with a morning call, a market source said.

Like the existing loan, the incremental loan is priced at Libor plus 275 bps with a 1% Libor floor.

Commitments are due at noon ET on Oct. 31, the source added.

Barclays, BMO Capital Markets Corp. and RBC Capital Markets are leading the deal that will be used with new senior notes and additional equity from BC Partners and other equity investors to fund the company’s merger with Waste Industries.

The merger agreement values Waste Industries at $2,825,000,000 and substantially all existing Waste Industries debt is anticipated to be refinanced at closing.

Closing is expected in the fourth quarter, subject to customary regulatory approvals.

GFL is a Toronto-based environmental services company. Waste Industries is a Raleigh, N.C.-based provider of non-hazardous solid waste collection, transfer, recycling and disposal services.

Confie holds call

Confie Seguros launched on its morning lender call its $220 million seven-year second-lien term loan (Caa2/CCC) at talk of Libor plus 850 bps to 875 bps with a 0% Libor floor, an original issue discount of 98.5 and hard call protection of 102 in year one and 101 in year two, according to a market source.

Commitments are due on Oct. 31, the source said.

Goldman Sachs Bank USA and Barclays are leading the deal that will be used with new preferred equity to refinance an existing second-lien term loan and partially repay revolver and first-lien term loan borrowings.

Confie Seguros is a Huntington Beach, Calif.-based personal lines and small to midsize commercial insurance broker.

Ply Gem floats OID

Ply Gem held its call in the morning, launching its fungible $665 million incremental first-lien term loan (B2/B+) due April 12, 2025 with original issue discount talk of 99.5, a market source said.

The incremental term loan is priced at Libor plus 375 bps with a 0% Libor floor, and has 101 soft call protection through April 12, 2019.

Commitments are due at 5 p.m. ET on Oct. 30.

Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, RBC Capital Markets, UBS Investment Bank, Barclays, Bank of America Merrill Lynch, Deutsche Bank Securities Inc., Goldman Sachs Bank USA, Credit Agricole, Jefferies LLC, MUFG, Natixis, Societe Generale and US Bank are leading the deal that will be used to fund the acquisition of NCI Building Systems Inc.

Under the agreement, NCI will issue 58.7 million shares to Ply Gem shareholders. Upon closing, NCI shareholders will own 53% of the company’s common equity and Ply Gem shareholders will own 47%.

Closing is expected in the fourth quarter, subject to approval by NCI shareholders and regulatory approvals.

Ply Gem is a Cary, N.C.-based manufacturer of exterior building products. NCI is a Houston-based manufacturer of metal products for the commercial building industry.

Delek proposed terms

Delek launched on its morning call its $696.5 million covenant-light term loan B due March 30, 2025 at talk of Libor plus 225 bps with no floor, according to a market source.

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

Commitments are due at 4 p.m. ET on Tuesday.

Wells Fargo Securities LLC is leading the deal that will be used to reprice an existing term loan B down from Libor plus 250 bps with no floor.

Delek is a Brentwood, Tenn.-based Permian-based integrated downstream energy company.

MotorCity comes to market

MotorCity held a lender call at 12:30 p.m. ET to launch a $345 million term loan B talked at Libor plus 225 bps with an original issue discount of 99.875 and 101 soft call protection for six months, a market source said.

Commitments are due on Tuesday, the source added.

Bank of America Merrill Lynch is leading the deal that will be used to reprice an existing term loan down from Libor plus 275 bps with a 0.75% Libor floor.

MotorCity is Detroit-based casino and hotel.

First Eagle on deck

First Eagle Holdings scheduled a lender call for 10:30 a.m. ET on Thursday to launch $1.81 billion of senior secured credit facilities, according to a market source.

The facilities consist of a $200 million revolver and a $1.61 billion term loan B, the source said.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to refinance existing debt and for general corporate purposes.

First Eagle is a New York-based independent, privately held asset management firm.

McAfee joins calendar

McAfee set a lender call for 10:30 a.m. ET on Thursday to launch a repricing of its $2,851,013,910 senior secured term loan B and its €650,802,180 senior secured term loan B, a market source remarked.

Morgan Stanley Senior Funding Inc., J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Goldman Sachs Bank USA, Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., RBC Capital Markets LLC, UBS Investment Bank and Mizuho Bank are leading the deal.

McAfee is a Santa Clara, Calif.-based cybersecurity company.

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