PODS, Tecomet break; Ortho-Clinical, EPIC Y-Grade, Dental Corp., Corel, ION Trading updated

By Sara Rosenberg

New York, May 31 – PODS LLC finalized the original issue discount on its incremental term loan B at the tight end of guidance and then freed to trade on Thursday above that issue price, and Tecomet’s (TecoStar Holdings Inc.) add-on term loan hit the secondary market as well.

In more happenings, Ortho-Clinical Diagnostics firmed the original issue discount on its term loan B at the narrow side of talk and added a leverage-based pricing step-down, and EPIC Y-Grade Services LP widened the spread and issue price on its term loan B and sweetened the call protection.

Also, Dental Corp. of Canada Inc. revised the original issue discount on its first-lien term loan debt and adjusted delayed-draw ticking fees, Corel Corp. increased the size of its term loan, ION Trading Finance Ltd. made some documentation changes to its incremental term loan, and ADS Tactical Inc. postponed syndication of its term loan B.

Furthermore, PowerSchool Group LLC, Uber Technologies Inc., Bob’s Discount Furniture LLC and Acrisure Holdings Inc. disclosed price talk with launch, and Electrical Components International Inc., Standard Media Group LLC, MHS Holdings Inc., Installed Building Products Inc. and OEConnection LLC joined the near-term primary calendar.

PODS updated, trades

PODS set the original issue discount on its $60 million incremental senior secured covenant-light term loan B (B2/B+) due Nov. 21, 2024 at 99.75, the tight end of the 99.5 to 99.75 talk, according to a market source.

As before, the incremental loan and repricing of the company’s existing $781,075,000 senior secured covenant-light term loan B (B2/B+) due Nov. 21, 2024 are priced at Libor plus 275 basis points with a 1% Libor floor, the repricing has a par issue price and all of the term loan B debt is getting 101 soft call protection for six months.

After terms finalized, the term loan debt made its way into the secondary market and was quoted at par bid, par ½ offered, a trader added.

Morgan Stanley Senior Funding Inc. and Barclays are leading the deal.

The incremental loan will be used to support franchise acquisitions, repay revolving credit facility borrowings and pay related fees and expenses, and the repricing will take the existing term loan down from Libor plus 300 bps with a 1% Libor floor.

Closing is expected on Thursday.

PODS is a Clearwater, Fla.-based provider of storage and moving containers.

Tecomet frees up

Tecomet’s fungible $21 million add-on term loan (B2/B) due May 1, 2024 began trading too, with levels seen at par ½ bid, 101 offered, a market source said.

Pricing on the add-on term loan matches existing term loan pricing at Libor plus 350 bps with a step-down to Libor plus 325 bps at 4 times net first-lien leverage and a 1% Libor floor. The add-on loan was issued at par, after tightening during syndication from 99.75.

Jefferies LLC, Antares and KKR Capital Markets are leading the deal that will be used to fund the acquisition of HD Surgical.

Closing is expected in early June.

Including the add-on, the first-lien term loan will total $556,950,000.

Tecomet is a Wilmington, Mass.-based provider of high precision manufacturing solutions serving global medical device and aerospace and defense original equipment manufacturers.

Ortho-Clinical revised

Back in the primary market, Ortho-Clinical Diagnostics finalized the original issue discount on its $2,325,000,000 seven-year term loan B at 99.75, the tight end of the 99.5 to 99.75 talk, and left pricing at Libor plus 325 bps with a 0% Libor floor, a market source remarked.

In addition, the term loan continues to include a 25 bps step-down upon a qualified initial public offering, but now there is also a 25 bps step-down upon 3.75 times first-lien net leverage, and the acquisition/investment carve-out was removed from the 50 bps MFN for 24 months, the source added.

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

The company’s $2,675,000,000 of credit facilities (B1/B-) also include a $350 million five-year revolver.

Final commitments were due at 5 p.m. ET on Thursday, the source added.

Barclays, Goldman Sachs Bank USA, J.P. Morgan Securities LLC, ING, UBS Investment Bank, Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Macquarie Capital (USA) Inc., RBS, Bank of Ireland and Nomura are leading the deal that will be used to refinance existing credit facilities.

Ortho-Clinical Diagnostics, a Carlyle Group portfolio company, is a Raritan, N.J.-based provider of in-vitro diagnostics solutions for screening, diagnosing and monitoring diseases.

EPIC changes emerge

EPIC Y-Grade Services increased pricing on its $650 million seven-year term loan B (B3/B) to Libor plus 550 bps from Libor plus 500 bps, moved the original issue discount to 98 from 99 and modified the call protection to 102 in year one and 101 in year two from a 101 soft call for six months, a market source said.

The term loan still has a 0% Libor floor.

The company’s $690 million of credit facilities also include a $40 million five-year super-priority revolver (Ba3).

Commitments are due on Friday, the source added.

UBS Investment Bank and Deutsche Bank Securities Inc. are leading the deal that will be used to fund the buildout of EPIC Y-Grade Pipeline, which will consist of 700 miles of Y-grade pipeline from the Permian and Eagle Ford Basins to Corpus Christi, Texas, and two Y-grade fractionators in Corpus Christi, currently under construction.

Dental Corp. tweaked

Dental Corp. changed the original issue discount on its $500 million seven-year first-lien term loan (B2/B-) and $125 million seven-year delayed-draw first-lien term loan (B2/B-) to 99.75 from 99.5, and left pricing at Libor plus 375 bps with a 0% Libor floor, according to a market source.

The company’s $925 million of credit facilities also include a $50 million revolver (B2/B-), a $200 million eight-year second-lien term loan (Caa2/CCC) and a $50 million eight-year delayed-draw second-lien term loan (Caa2/CCC).

Pricing on the second-lien term loan debt is Libor plus 750 bps with a 0% Libor floor and a discount of 99.

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.

The company revised the ticking fees on the delayed-draw first-and second-lien term loans to half the spread from days 31 to 60 and the full spread thereafter from half the spread from days 61 to 120 and the full spread thereafter, and is now required to provide management discussion and analysis and hold quarterly calls, the source said. The delayed-draw availability is 24 months.

Dental being acquired

Proceeds from Dental Corp.’s credit facilities will be used to help fund its buyout by L Catterton. Imperial Capital Group Ltd. and OPTrust Private Markets Group, together with management and Dental Corp.’s dentist shareholders, will continue to hold a significant equity interest in the company.

Jefferies LLC is the left lead arranger on the debt.

Recommitments were due at 1 p.m. ET on Thursday, the source added.

Dental Corp. is a network of general and specialist dental clinics in Canada.

Corel upsizes

Corel lifted its term loan size to $275 million from a revised amount of $250 million, but the loan is still smaller than the original size of $300 million, a market source said.

As before, the term loan is priced at Libor plus 500 bps with a 0% Libor floor and an original issue discount of 99, and has 101 soft call protection for six months.

The company’s now $285 million credit facilities also include a $10 million revolver.

UBS Investment Bank is leading the deal that will be used to refinance existing debt and fund a dividend.

Corel is an Ottawa-based software company.

ION modified

ION Trading made documentation changes to its $2.1 billion equivalent U.S. and euro senior secured incremental covenant-light first-lien term loan, including setting 50 bps MFN with no sunset, requiring quarterly update calls, and outlining ticking fees to be applied from allocation date of half the spread from days 61 to 90 and the full spread thereafter, a market source remarked.

Pricing on the U.S. tranche is Libor plus 400 bps with a 1% Libor floor and an original issue discount of 99.75, and pricing on the euro tranche is Euribor plus 325 bps with a 1% floor and a discount of 99.75. Both loans have 101 soft call protection for six months.

Earlier in syndication, pricing on the U.S. piece firmed at the high end of the Libor plus 375 bps to 400 bps talk, pricing on the euro piece was lowered from Euribor plus 350 bps, the discount on both tranches was tightened from 99.5, and the incremental debt was made to be fungible with the existing U.S. and euro term loans, which is resulting in pricing on the existing term debt to be increased from the current rate of Libor/Euribor plus 275 bps with a 1% floor to match the incremental loan pricing.

ION tranching

Currently it is expected that ION Trading’s $2.1 billion equivalent incremental term loan will be split between a roughly $1.32 billion U.S. tranche and a roughly €670 million tranche, although that breakdown has not yet been finalized, the source added.

UBS Investment Bank is leading the deal that will be used to help fund the acquisition of Fidessa Group plc for £38.703 per share. The transaction is valued at about £1.5 billion.

ION Trading is a software provider of trading, treasury and workflow solutions. Fidessa is provider of trading, investment and information solutions for the financial community.

ADS withdrawn

ADS Tactical put syndication on hold for now of its $250 million seven-year covenant-light term loan B, according to a market source.

Most recent talk on the loan was Libor plus 525 bps with a 1% Libor floor, an original issue discount of 99 and 101 hard call protection for one year.

And, at launch, the loan was sized at $330 million and talked at Libor plus 425 bps with a 1% Libor floor, a discount of 99.5 and 101 soft call protection for six months.

Wells Fargo Securities LLC was leading the deal that would have been used with $75 million of secured notes to refinance existing debt, including ABL revolver borrowings, a term loan due 2022 and senior secured notes due 2022.

ADS is a Virginia Beach, Va.-based provider of value-added logistics and supply chain solutions specializing in tactical & operational equipment and kitted solutions.

PowerSchool sets guidance

Also in the primary market, PowerSchool held its bank meeting on Thursday and announced price talk on its $775 million seven-year first-lien term loan and $365 million eight-year second-lien term loan with its bank meeting on Thursday, according to a market source.

Talk on the first-lien term loan is Libor plus 325 bps to 350 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 675 bps to 700 bps with a 0% Libor floor, a discount of 99 and call protection of 102 in year one and 101 in year two, the source said.

The company’s $1.26 billion of credit facilities also include a $120 million five-year revolver.

Commitments are due at 5 p.m. ET on June 14, the source added.

PowerSchool lead banks

Barclays, Credit Suisse Securities (USA) LLC, Macquarie Capital (USA) Inc., Ares, Golub and Jefferies LLC are leading PowerSchool’s credit facilities, with Barclays the left lead on the first-lien loan and Credit Suisse the left lead on the second-lien loan.

The new debt will be used to help fund the buyout of the company by Onex Corp. and Vista Equity Partners. Vista is the current owner of the company but will invest new capital in the business with the purchase of a stake by Onex.

In connection with the Onex/Vista transaction, PowerSchool will acquire PeopleAdmin, a provider of cloud-based talent management solutions for the education sector.

Closing is expected in the second half of this year, subject to customary conditions and regulatory approvals.

PowerSchool is a Folsom, Calif.-based education technology platform for K-12 schools.

Uber floats terms

Uber Technologies released talk of Libor plus 350 bps to 375 bps with a 0% Libor floor, a par issue price and 101 soft call protection for six months on its $1,132,750,000 senior secured covenant-light term loan B due July 13, 2023 that launched with an afternoon call, a market source said.

Commitments/consents are due at 5 p.m. ET on June 7, the source added.

Morgan Stanley Senior Funding Inc., Bank of America Merrill Lynch, Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs Bank USA, HSBC Securities (USA) Inc., J.P. Morgan Securities LLC, RBC Capital Markets and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to reprice an existing term loan B due 2023.

Uber is a San Francisco-based online transportation network company.

Bob’s reveals talk

Bob’s Discount Furniture came out with talk of Libor plus 500 bps with a 1% Libor floor and a 25 bps amendment fee/original issue discount on its $257 million term loan B (B2/B) due August 2023 that launched with a morning call, a market source remarked.

Commitments are due at noon ET on June 8, the source added.

RBC Capital Markets is the left lead on the deal that will be used to extend an existing term loan B due February 2021 and bump up pricing from Libor plus 475 bps with a 1% Libor floor.

Bain Capital is the sponsor.

Bob’s is a Manchester, Conn.-based retailer of furniture and bedding.

Acrisure holds call

Acrisure held a lender call during the session, launching a $400 million incremental term loan B (B) due November 2023 talked at Libor plus 375 bps to 400 bps with a 1% Libor floor, an original issue discount of 99.875 and 101 soft call protection for six months, according to a market source.

Commitments are due on Wednesday, the source said.

J.P. Morgan Securities LLC is leading the deal that will be used to fund acquisitions.

Acrisure is a Caledonia, Mich.-based insurance brokerage.

Electrical readies deal

Electrical Components International will hold a lender call at 10:30 a.m. ET on Monday to launch $795 million of credit facilities, a market source said.

The facilities consist of a $100 million five-year revolver, a $570 million seven-year first-lien term loan and a $125 million eight-year second-lien term loan, the source added.

Barclays, Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, RBC Capital Markets, Bank of America Merrill Lynch and Jefferies LLC are leading the deal that will be used to help fund the buyout of the company by Cerberus Capital Management LP from KPS Capital Partners LP.

Closing is subject to customary conditions.

Electrical Components is a St. Louis-based manufacturer of wire harnesses, control boxes, and value-added assembly services for consumer appliance and specialty-industrial applications.

Standard Media on deck

Standard Media Group set a bank meeting for 1:30 p.m. ET in New York on Monday to launch $350 million of senior secured credit facilities, according to a market source.

RBC Capital Markets and Capital One are leading the deal that will be used to help fund the acquisition of nine television stations from Sinclair Broadcast Group Inc. for $441.7 million in cash.

Closing is subject to regulatory approval, the closing of the Sinclair/Tribune Media Co. merger and other customary conditions.

Standard Media is a broadcast television company.

MHS joins calendar

MHS Holdings will hold a lender call at 2 p.m. ET on Tuesday to launch a fungible $120 million incremental term loan B, a market source said.

RBC Capital Markets is the left lead on the deal that will be used to fund an acquisition.

Thomas H. Lee Partners LP is the sponsor.

MHS is a Louisville, Ky.-based provider of e-commerce infrastructure.

Installed Building coming soon

Installed Building Products scheduled a lender call for 11 a.m. ET on Monday to launch a fungible $100 million incremental term loan B and a repricing and extension of its existing $298 million term loan B, according to a market source.

RBC Capital Markets is leading the deal.

Installed Building Products is a Columbus, Ohio-based installer of insulation products.

OEConnection plans call

OEConnection will hold a lender call at 2 p.m. ET on Tuesday to launch an amendment and repricing of its $300 million term loan, a market source remarked.

Antares Capital is leading the deal.

OEConnection, a Providence Equity Partners LLC portfolio company, is a Richfield, Ohio-based provider of SaaS solutions that help drive genuine OE parts sales and services across the automotive system.

Wyndham Hotels closes

In other news, Wyndham Hotels & Resorts Inc. completed its acquisition of La Quinta Holdings Inc.’s hotel franchise and hotel management businesses for $1.95 billion in cash, a news release said.

To help fund the transaction Wyndham Hotels got a new $1.6 billion seven-year covenant-light term loan B (Baa3/BBB-) priced at Libor plus 175 bps with a 0% Libor floor. The loan was issued at par and has 101 soft call protection for six months.

During syndication, pricing on the term loan was lowered from Libor plus 200 bps and the issue price was tightened from 99.75.

Bank of America Merrill Lynch, Barclays, Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Wells Fargo Securities LLC, SunTrust Robinson Humphrey Inc., Bank of Nova Scotia, MUFG and U.S. Bank led the deal.

Wyndham Hotels is a Parsippany, N.J.-based hotel franchisor.

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