Hunterstown, Jo-Ann Stores, R1 RCM, United Airlines break; Owens & Minor, CityMD revised

By Sara Rosenberg

New York, May 2 – A few deals made their way into the secondary market on Wednesday, including Hunterstown Generation (Kestrel Acquisition LLC), Jo-Ann Stores LLC, R1 RCM Inc. and United Airlines Inc.

Moving to the primary market, Owens & Minor Inc. raised the spread on its term loan B, widened the original issue discount and extended the call protection, CityMD (WP CityMD Bidco LLC) finalized pricing on its term loan debt at the wide side of guidance, added a step-down and tightened the issue price on the incremental tranche, and Albertsons Cos. Inc. trimmed the spread on its term loan.

Additionally, Brazos Midstream (Bison Midstream Holdings LLC), Hillman Group Inc., Aristocrat Leisure Ltd., CHG Healthcare Services Inc. and ADS Tactical Inc. disclosed price talk on their deals, and Springs Window Fashions (SIWF Holdings Inc.), ION Trading Finance Ltd. and L&W Inc. joined the near-term primary calendar.

Hunterstown frees up

Hunterstown Generation’s credit facilities began trading on Wednesday, with the $400 million seven-year term loan B quoted at par bid, par ¾ offered, according to a trader.

Pricing on the term loan is Libor plus 425 basis points with a 1% Libor floor and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months and a ticking fee of half the spread from days 46 to 75 and the full spread thereafter.

On Tuesday, the term loan was upsized from $375 million, pricing was cut from talk in the range of Libor plus 450 bps to 475 bps and the discount was revised from 99.

The company’s $440 million senior secured deal also includes a $40 million five-year revolver.

Morgan Stanley Senior Funding Inc. and Goldman Sachs Bank USA are leading the deal that will be used to fund Platinum Equity’s acquisition of the Hunterstown generation facility from GenOn Energy. Platinum Equity has partnered with AOS Energy Partners to acquire the asset.

The funds from the recent term loan B upsizing will be used to reduce the equity check for the transaction.

Hunterstown is an 810 MW natural gas-fired combined cycle power plant located in the PJM-MAAC capacity region in Gettysburg, Pa.

Jo-Ann hits secondary

Jo-Ann Stores’ $225 million six-year covenant-light second-lien term loan (Caa1/CCC+) also broke, with levels seen at 98¾ bid, 99¾ offered, a trader remarked.

Pricing on the term loan is Libor plus 925 bps with a 1% Libor floor and it was sold at an original issue discount of 98.5. The loan has call protection of 102 in year one and 101 in year two.

On Tuesday, the spread on the term loan firmed at the high end of the Libor plus 900 bps to 925 bps talk.

Bank of America Merrill Lynch, Barclays and J.P. Morgan Securities LLC are leading the deal that will be used with a $58 million draw on the company’s existing $400 million asset-based lending facilities to refinance $274 million HoldCo senior PIK toggle notes.

Jo-Ann Stores is a Hudson, Ohio-based specialty retailer of fabrics and crafts.

R1 RCM starts trading

R1 RCM’s credit facilities freed up as well, with the $270 million seven-year term loan B quoted at 97½ bid, 98 offered, according to a trader.

Pricing on the term loan is Libor plus 525 bps with a 0% Libor floor and it was sold at an original issue discount of 97. The debt has 101 soft call protection for one year.

During syndication, pricing on the term loan finalized at the low end of revised talk of Libor plus 525 bps to 550 bps and wide of initial talk in the range of Libor plus 475 bps to 500 bps, the discount was changed from 99.5, the call protection was extended from six months and a maximum net first-lien leverage covenant was added to the originally covenant-light loan.

The company’s $295 million of credit facilities (B1/B) also include a $25 million five-year revolver.

Bank of America Merrill Lynch and Ares are leading the deal that will be used with $104 million of cash on hand and $110 million of privately placed eight-year subordinated PIK toggle notes to fund the acquisition of the health care division of Intermedix Corp.

First-lien leverage is 3.4 times and total leverage is 4.8 times based on fiscal year Dec. 31, 2017 pro forma adjusted EBITDA of $79 million, including $15 million of expected synergies.

R1 RCM, a Chicago-based provider of revenue cycle management and physician advisory services, expects to close on the transaction this week.

United Airlines breaks

United Airlines’ $1,485,000,000 senior secured term loan (Baa3/BBB-) due April 1, 2024 began trading too, with levels quoted at par 3/8 bid, par 7/8 offered, a trader said.

Pricing on the term loan is Libor plus 175 bps with a 0% Libor floor and it was issued at par. The debt has 101 soft call protection for six months.

Barclays and J.P. Morgan Securities LLC are leading the deal that will be used to reprice an existing term loan down from Libor plus 200 bps with a 0% Libor floor. JPMorgan is the agent.

United Airlines is a Chicago-based airline operator.

Owens & Minor revised

Switching to the primary market, Owens & Minor lifted pricing on its $500 million seven-year term loan B (B1/BB) to Libor plus 450 bps from talk in the range of Libor plus 350 bps to 375 bps, moved the original issue discount to 98 from 99, extended the 101 soft call protection to one year from six months and added a maximum total leverage ratio covenant to the previously covenant-light loan, according to a market source.

The term loan still has a 0% Libor floor.

Recommitments are due at 5 p.m. ET on Thursday, the source said.

Bank of America Merrill Lynch, Wells Fargo Securities LLC, J.P. Morgan Securities LLC and SunTrust Robinson Humphrey Inc. are leading the debt that will be used with a new term loan A to fund the recently completed acquisition of the surgical and infection prevention business of Halyard Health Inc.

Owens & Minor is a Mechanicsville, Va.-based health care solutions company.

CityMD tweaks deal

CityMD firmed pricing on its $120 million incremental first-lien term loan (B3/B-) due June 2024 and repricing of its existing $224 million first-lien term loan (B3/B-) due June 2024 at Libor plus 350 bps, the high end of the Libor plus 325 bps to 350 bps talk, added a 25 bps step-down at 0.5 times inside closing net leverage and changed the issue price on the incremental loan to par from 99.75, a market source remarked.

The term loans still have a 1% Libor floor and 101 soft call protection for six months, and the repricing is still offered at par.

Recommitments were due at 3:30 p.m. ET on Wednesday and allocations are targeted for Thursday, the source added.

Credit Suisse Securities (USA) LLC, SunTrust Robinson Humphrey Inc. and ING are leading the deal.

The incremental loan will be used to fund a tuck-in acquisition, and the repricing will take the existing term loan down from Libor plus 400 bps with a 1% Libor floor.

CityMD is an urgent care provider in the New York Metro area.

Albertsons flexes

Albertsons lowered pricing on its $1.5 billion five-year asset-based last-out term loan to Libor plus 300 bps from Libor plus 350 bps, and left the 0% Libor floor, original issue discount of 99.5, 101 soft call protection for six months, and ticking fee of half the margin from days 46 to 75, the full margin from days 76 to 105 and the full margin plus Libor thereafter unchanged, a market source said.

The term loan will fund into segregated account after day 106.

Previously in syndication, the term loan was upsized from $1.2 billion.

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

Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc., Barclays, Deutsche Bank Securities Inc., RBC Capital Markets LLC, Wells Fargo Securities LLC and MUFG are leading the deal that will be used to refinance existing debt at Rite Aid Corp. and, if applicable, fund the cash portion of the Rite Aid merger.

Albertsons is a Boise, Idaho-based food and drug retailer. Rite Aid is a Camp Hill, Pa., national drugstore chain.

Brazos sets guidance

Brazos Midstream held its bank meeting on Wednesday morning and launched its $900 million seven-year first-lien term loan (B2//BB-) at talk of Libor plus 400 bps with a 0% Libor floor and an original issue discount of 99.5, according to a market source.

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

The company’s $950 million of credit facilities also include a $50 million super-priority revolver.

Commitments are due on May 16, the source said.

Jefferies LLC and RBC Capital Markets are leading the deal that will be used to help fund the roughly $1.75 billion acquisition of the company by North Haven Infrastructure Partners II, an investment fund managed by Morgan Stanley Infrastructure, and to fund $165 million of cash into a funded capex and interest reserve account.

Closing is expected in the second quarter, subject to customary approvals and conditions.

Brazos Midstream is a Fort Worth, Texas-based natural gas and crude oil midstream company.

Hillman reveals talk

Hillman Group came out with talk of Libor plus 350 bps with a 0% Libor floor and an original issue discount of 99.5 on its $530 million senior secured term loan B due 2025 and $165 million delayed-draw term loan due 2025 that launched with a morning lender call, a market source said.

Included in the term loan is 101 soft call protection for six months and the delayed-draw loan has a ticking fee of half the margin from days 46 to 75 and the full margin from days 76 to 365, the source continued.

The company’s $845 million of credit facilities also provide for a $150 million asset-based revolver due 2023.

Commitments are due at noon ET on May 15, the source added.

Barclays, Jefferies LLC, Citizens Bank and MUFG are leading the deal that will be used to refinance an existing revolver and a term loan B, and the delayed-draw term loan is to fund a contemplated acquisition in an existing line of business.

Hillman Group, a CCMP Capital portfolio company, is a Cincinnati-based distributor of fasteners, keys, engravable tags, letters, numbers, signs and other hardware-related items.

Aristocrat launches

Aristocrat Leisure held its call in the morning, launching an extension of its $950 million term loan to October 2024 from 2021 and repricing at talk of Libor plus 175 bps with a 0% Libor floor and an original issue discount of 99.875 to extending lenders, according to a market source.

Additionally, the company launched a repricing of its $1.3 billion term loan due October 2024 at talk of Libor plus 175 bps with a 0% Libor floor and a par issue price, the source said.

The term loans will include 101 soft call protection for six months, and, with this transaction, will be combined into one fungible tranche.

Commitments are due on Tuesday, the source added.

UBS Investment Bank is leading the deal.

Current pricing on both term loans is Libor plus 200 bps with a 0% Libor floor.

Aristocrat Leisure is a Sydney, Australia-based provider of gaming solutions.

CHG discloses OID

CHG Healthcare Services released original issue discount talk of 99.75 on its fungible $270 million add-on covenant-light first-lien term loan due June 2023 that launched with a morning call, a market source said.

The add-on term loan is priced at Libor plus 300 bps with a 1% Libor floor, in line with existing term loan pricing, and all of the first-lien term loan debt is getting 101 soft call protection for six months.

Jefferies LLC, Goldman Sachs Bank USA, Barclays and Citigroup Global Markets Inc. are leading the deal that will be used to repay second-lien notes.

Along with the add-on, the company is looking to amend its existing credit agreement to allow incremental ratio debt up to 5.5 times and to permit the repayment of the notes.

Commitments/consents are due at noon ET on May 9, the source added.

The first-lien term loan will total $1,577,200,000 including the add-on loan.

CHG is a Salt Lake City-based health care staffing firm.

ADS floats terms

ADS Tactical revealed ahead of its Thursday bank meeting in New York that its $330 million seven-year covenant-light term loan B (B3/B) is talked at Libor plus 425 bps with a 1% Libor floor and an original issue discount of 99.5, according to a market source.

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

Commitments are due at 3 p.m. ET on May 17.

Wells Fargo Securities LLC is leading the deal that will be used 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.

Springs Window on deck

Also in the primary market, Springs Window Fashions set a bank meeting for 10 a.m. ET on Friday to launch $1.27 billion of credit facilities, according to a market source.

The facilities consist of a $125 million five-year ABL revolver, an $840 million seven-year first-lien term loan (B) and a $305 million eight-year second-lien term loan (CCC+), the source said.

Barclays, Deutsche Bank Securities Inc. and Nomura are leading the deal that will be used to help fund the buyout of the company by AEA Investors LP and British Columbia Investment Management Corp. from Golden Gate Capital.

Closing is expected in June, subject to customary regulatory approvals.

Springs Window is a Middleton, Wis.-based manufacturer and seller of custom and stock window coverings and drapery hardware.

ION timing surfaces

ION Trading Finance emerged with plans to hold a bank meeting in New York on Tuesday and a bank meeting in London on May 10 to launch its previously announced $2.1 billion equivalent U.S. and euro senior secured incremental covenant-light first-lien term loan, a market source remarked.

The term loan already has some syndication momentum, 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.

Along with the term loan, the company has received a commitment for a €20 million incremental revolver, and ION Investment Corp. Sarl has received a commitment for a $200 million 180-day senior unsecured bridge loan that is not expected to be sold.

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.

L&W coming soon

L&W scheduled a bank meeting for 10 a.m. ET on Friday to launch $525 million of credit facilities, according to a market source.

The facilities consist of a $75 million ABL revolver and a $450 million first-lien term loan, the source said.

Goldman Sachs Bank USA, Bank of America Merrill Lynch, Barclays and RBC Capital Markets are leading the deal that will be used to help fund the buyout of the company by KPS Capital Partners LP.

L&W is a New Boston, Mich.-based automotive supplier specializing in hot and cold metal stampings and welded assemblies.

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