ProAmpac, Priority Tech break; Fleetpride revised; Heritage-Crystal, J.D. and more set talk

By Sara Rosenberg

New York, Sept. 26 – ProAmpac’s first-lien term loan made its way into the secondary market on Tuesday, with levels quoted above its original issue discount, and Priority Technology Holdings Inc.’s add-on term loan B freed up as well.

Moving to the primary market, Fleetpride increased the size of its first-lien term loan, reduced the spread and set the original issue discount at the tight end of guidance.

Also, Heritage-Crystal Clean Inc. (JFL-Tiger Acquisition Co. Inc.), J.D. Power, International-Matex Tank Terminals (ITT Holdings LLC), Berry Global Group Inc., LifePoint Health Inc., GIP III Stetson, AssuredPartners Inc., CDK Global Inc., Gates Global, Patriot Rail and The Knot released price talk with launch.

Furthermore, PowerSchool Holdings Inc. (Severin Acquisition LLC), Aramsco Inc., DXP Enterprises Inc., Evertec Inc. and BJ’s Wholesale Club Inc. joined this week’s primary calendar.

ProAmpac frees up

ProAmpac’s $2.24 billion first-lien term loan due 2028 broke for trading on Tuesday, with levels quoted at 99¼ bid, 99 5/8 offered, a market source remarked.

Pricing on the term loan is SOFR plus 450 basis points with a 0.75% floor, and it was sold at an original issue discount of 99. The debt has 101 soft call protection for six months.

During syndication, the term loan was upsized from $2.085 billion, pricing was lowered from SOFR plus 475 bps and the discount on was revised from 98.

JPMorgan Chase Bank, Antares Capital and others are leading the deal that will be used to amend and extend an existing $2.105 billion first-lien term loan due 2025, to repay 2025 notes and to repay revolver borrowings.

ProAmpac is a Cincinnati-based manufacturer of flexible packaging and material science solutions.

Priority Technology breaks

Priority Technology’s fungible $50 million add-on term loan B due April 2027 freed to trade too, with levels quoted at 99½ bid, par offered, according to a market source.

Pricing on the term loan B is SOFR plus 575 bps with a 1% floor, and the new debt was sold at an original issue discount of 99.5.

During syndication, the term loan was upsized from a revised amount of $40 million and an initial amount of $25 million, and the discount was tightened from 99.3.

Truist Securities is leading the deal that will be used to repay outstanding revolver borrowings so as to provide additional liquidity for general corporate purposes and acquisition activity, and to add cash to the balance sheet.

Priority Technology is an Alpharetta, Ga.-based payments technology company.

Fleetpride reworked

Meanwhile, in the primary market, Fleetpride raised its first-lien term loan (B3/B-) due September 2028 to $920 million from $870 million, trimmed pricing to SOFR plus 450 bps from SOFR plus 475 bps and firmed the original issue discount at 98.5, the tight end of the 98 to 98.5 talk, a market source said.

As before, the term loan has a 0.5% floor and 101 soft call protection for six months.

Recommitments were due at 5 p.m. ET on Tuesday, the source added.

RBC Capital Markets is the left lead on the deal that will be used to extend the maturity of an existing $594 million first-lien term loan due January 2026 and to repay existing ABL revolving credit facility borrowings. The amount of the revolver paydown was increased with the term loan upsizing.

Fleetpride, owned by American Securities, is an Irving, Tex.-based distributor of aftermarket heavy-duty truck and trailer parts.

Heritage-Crystal guidance

Heritage-Crystal Clean held its lender call on Tuesday afternoon and announced talk on its $600 million seven-year first-lien term loan at SOFR plus 525 bps with a 0.5% floor, an original issue discount of 97 to 97.5 and 101 soft call protection for six months, according to a market source.

The company’s $700 million of credit facilities (B2/B) also include a $100 million five-year revolver.

Commitments are due at 10 a.m. ET on Oct. 6.

Jefferies Finance LLC and SMBC are leading the deal that will be used with up to $551.4 million of equity to fund the buyout of the company by J.F. Lehman & Co. for $45.50 per share in cash. The transaction values the company at about $1.2 billion.

Closing is expected in the fourth quarter, subject to customary conditions, including approval by shareholders.

Heritage-Crystal Clean is a Hoffman Estates, Ill.-based provider of provider of specialized environmental and waste management services.

J.D. Power launches

J.D. Power released original issue discount talk of 99.51 on its fungible $525 million incremental first-lien term loan (B2/B-/BB-) due May 2026 that launched with a call in the afternoon, a market source remarked.

Pricing on the term loan is SOFR+CSA plus 350 bps with a 0.5% floor. CSA is ARRC standard 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

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

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

RBC Capital Markets, UBS Investment Bank, TD Securities (USA) LLC, Truist Securities and KKR Capital Markets are leading the deal, which will be used to fund the acquisition of Autovista Group, a pan-European and Australian automotive data, analytics and industry insights provider, from Hayfin Capital Management.

Closing is expected this year, subject to customary conditions and regulatory approval.

Thoma Bravo is the sponsor.

J.D. Power is a Troy, Mich.-based provider of consumer insights, advisory services and data and analytics.

International-Matex talk

International-Matex Tank Terminals launched on its afternoon lender call its $750 million seven-year sustainability-linked term loan B (Ba2) at talk of SOFR plus 300 bps to 325 bps with a 0.5% floor and an original issue discount of 98 to 98.25, according to a market source.

The term loan has 101 soft call protection for six months, and two sustainability KPIs that are based on capital expenditures related to renewable and low carbon capacity, and supplier diversity, which will be tested annually and provide for pricing adjustments of up to +/- 7.5 bps.

Commitments are due at noon ET on Oct. 5.

Wells Fargo Securities LLC, CIBC and MUFG are leading the deal that will be used to refinance an existing senior secured term loan B due 2028 and to fund cash to the balance sheet.

International-Matex is a New Orleans-based pure play bulk liquid storage and handling provider.

Berry proposed terms

Berry Global came out with talk of SOFR+CSA plus 175 bps with a 0% floor, an original issue discount of 99.75 to 99.875 and 101 soft call protection for six months on its $3.09 billion first-lien term loan due July 2029 shortly before its 11:30 a.m. ET lender call began, a market source said. CSA is 11 bps one-month rate, 26 bps three-month rate and 43 bps six-month rate.

Commitments are due at 10:30 a.m. ET on Friday, the source added.

Goldman Sachs Bank USA is the left lead on the deal that will be used to amend and extend an existing first-lien term loan due July 2026.

Berry Global is an Evansville, Ind.-based, supplier of rigid, flexible and non-woven products sold into consumer-oriented end markets.

LifePoint details emerge

LifePoint launched on its 9:30 a.m. ET lender call a $2 billion senior secured covenant-lite term loan B due November 2028 talked at SOFR plus 525 bps to 550 bps with a 0% floor, an original issue discount of 97 and 101 soft call protection for six months, according to a market source.

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

Citigroup Global Markets Inc. is the left lead on the deal that will be used to extend an existing term loan by three years.

LifePoint is a Brentwood, Tenn.-based operator of general acute care hospitals, community hospitals, regional health systems, physician practices, outpatient centers and post-acute care facilities.

GIP III talk

GIP III Stetson launched on its morning lender call its $700 million five-year term loan B (B2) at talk of SOFR+10 bps CSA plus 425 bps with a 0% floor and an original issue discount of 98.5 to 99, a market source remarked.

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

Commitments are due at 10 a.m. ET on Oct. 5, the source added.

BofA Securities Inc., MUFG and others to be announced are leading the deal that will be used to amend and extend an existing Stetson HoldCo term loan B due 2025.

Stetson Midstream is a Global Infrastructure Partners owned HoldCo with a controlling ownership stake in EnLink, an operator of a midstream business underpinned by a portfolio of assets across Texas, New Mexico, Louisiana, and Oklahoma.

AssuredPartners holds call

AssuredPartners held a lender call at 10 a.m. ET on Tuesday, launching an $896,250,000 senior secured covenant-lite first-lien term loan B-4 (B2/B) due Feb. 13, 2027, split between a fungible $400 million incremental term loan B and a $496,250,000 repriced term loan B-4, a market source said.

Talk on the term loan debt is SOFR plus 375 bps with a 0.5% floor, an original issue discount of 99.75 on the incremental, a par issue price on the repriced loan and 101 soft call protection for six months, the source added.

Commitments are due at noon ET on Thursday.

Morgan Stanley Senior Funding Inc. is the left lead on the deal. BofA Securities Inc. is the agent.

The incremental term loan will be used to fund acquisitions under letters of intent and for general corporate purposes, and the repricing will take the existing term loan down from SOFR plus 425 bps with a 0.5% floor.

AssuredPartners is a Lake Mary, Fla.-based insurance brokerage firm.

CDK comes to market

CDK Global surfaced early in the day with plans to hold a lender call at 1 p.m. ET to launch a $3.582 billion term loan B due July 2029 talked at SOFR plus 375 bps to 400 bps with a 0% floor, an original issue discount of 99.875 to par and 101 soft call protection for six months, according to a market source.

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

Goldman Sachs Bank USA is the left lead on the deal that will be used to reprice an existing $3.582 billion term loan B due July 2029.

CDK is a Hoffman Estates, Ill.-based provider of a fully integrated cloud-based software platform to auto dealerships and original equipment manufacturers.

Gates repricing

Gates Global emerged in the morning with plans to hold a lender call at 9:30 a.m. ET to launch a $570.6 million senior secured term loan B-4 (Ba3/B+) due November 2029 talked at SOFR plus 300 bps to 325 bps with a 0.5% floor, a par issue price and 101 soft call protection for six months, a market source remarked.

Commitments from existing lenders are due at 5 p.m. ET on Thursday and commitments from new lenders are due at noon ET on Friday, the source added.

Citigroup Global Markets Inc. is the left lead on the deal. Credit Suisse is the administrative agent.

The term loan will be used to reprice an existing term loan down from SOFR plus 350 bps with a 0.5% floor.

Closing is expected during the week of Oct. 2.

Gates is a Denver-based manufacturer of application-specific fluid power and power transmission solutions.

Patriot shops add-on

Patriot Rail held a lender call at 2 p.m. ET, launching a fungible $100 million add-on term loan B due Oct. 18, 2026 talked with an original issue discount of 99.27, according to a market source.

Pricing on the add-on term loan is SOFR+CSA plus 400 bps with a 0.25% floor, in line with existing term loan B pricing. CSA is ARRC standard 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

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

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

RBC Capital Markets is leading the deal that will be used for general corporate purposes and to fund a dividend.

Pro forma for the transaction, the term loan B will total about $395 million.

Patriot Rail is a Jacksonville, Fla.-based owner of a portfolio of short-line railroads, port terminals and related infrastructure assets, providing transportation and logistics solutions.

The Knot launches

The Knot held a lender call at 11 a.m. ET to launch a $765 million term loan B (B2) due January 2028 talked at SOFR plus 425 bps to 450 bps with a 0% floor, an original issue discount of 99.5 and 101 soft call protection for six months, a market source said.

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

JPMorgan Chase Bank is leading the deal that will be used to extend an existing $605 million term loan due December 2025 and to fund a dividend.

The Knot is a multiplatform wedding resource.

PowerSchool on deck

PowerSchool scheduled a lender call for 11 a.m. ET on Wednesday to launch an $840 million first-lien term loan due Aug. 1, 2027, according to a market source.

Barclays is the left lead on the deal that will be used to amend and extend an existing $840 million first-lien term loan due August 2025.

PowerSchool is a Folsom, Calif.-based provider of cloud-based software for K-12 education.

Aramsco joins calendar

Aramsco will hold a lender call at 10 a.m. ET on Wednesday to launch $585 million of credit facilities, a market source remarked.

The facilities consist of an $80 million five-year ABL revolver, a $430 million seven-year first-lien term loan (B-) and a $75 million seven-year with 24-month availability first-lien delayed-draw term loan (B-), the source continued.

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

Commitments are due at noon ET on Oct. 5, the source added.

Jefferies LLC, Goldman Sachs Bank USA, Antares Capital, KeyBanc Capital Markets and SMBC are leading the deal that will be used to help fund the buyout of the company by American Securities.

Aramsco is a Paulsboro, N.J.-based distributor to specialty contractors and facility maintenance professionals throughout the U.S. and Canada.

DXP readies deal

DXP Enterprises set a lender call for 10:30 a.m. ET on Wednesday to launch a $550 million term loan B (B2/B) due 2030, according to a market source.

Goldman Sachs Bank USA is the left lead on the deal that will be used with cash on the balance sheet to refinance a roughly $426 million term loan B, to add about $125 million of cash to the balance sheet to pre-fund tuck-in acquisitions under letters of intent or committed, and to pay transaction fees, expenses and original issue discount.

DXP is a Houston-based products and services distributor that adds value and cost savings solutions to industrial customers.

Evertec coming soon

Evertec scheduled a lender call for 10 a.m. ET on Thursday to launch its previously announced $600 million term loan B (Ba3/BB-), a market source remarked.

Truist Securities Inc. is leading the deal that will be used with cash on hand to fund the acquisition of Sinqia for R$27.19 per share, increased by a customary daily “ticking fee” of up to R$1.00 per share depending on the timing of the closing, subject to certain limited exceptions. Consideration will be in the form of 90% cash and 10% Evertec shares.

Based on the closing price of Sinqia shares on July 19, Sinqia has an equity valuation of R$2.326 billion (U.S. $485 million) and an enterprise value of R$2.835 billion (U.S. $591 million).

Closing is expected in the fourth quarter, subject to satisfaction of customary conditions and approvals.

Evertec is a Puerto Rico-based full-service transaction processing company. Sinqia is a Brazil-based provider of technology for financial institutions.

BJ’s plans refinancing

BJ’s Wholesale Club set a lender call for 11:30 a.m. ET on Wednesday to launch a $400 million covenant-lite term loan B due February 2029, according to a market source.

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

Deutsche Bank Securities Inc. is the left lead on the deal that will be used to refinance existing debt.

Commitments from existing lenders are due at 5 p.m. ET on Monday and commitments from new lenders and banks are due at noon ET on Oct. 5, the source added.

BJ’s is a Marlborough, Mass.-based warehouse club operator.

St. Joseph allocates

St. Joseph Energy Center allocated on Tuesday its $337 million first-lien term loan B (Ba3) due September 2028 that is priced at SOFR+CSA plus 425 bps with a 0.75% floor and an original issue discount of 97, a market source remarked. CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

The term loan has 101 soft call protection for one year.

During syndication, the floor on the term loan firmed at the wide end of guidance of 0.5% or 0.75%.

BNP Paribas Securities Corp. is leading the deal, which will be used to amend and extend an existing $337 million first-lien term loan B due 2025.

The company is also amending and extending its existing revolving credit facilities.

St. Joseph Energy Center, owned by Ares EIF Management LLC & Toyota Tsusho America Inc., is the owner of a 740.5 MW highly efficient combined cycle gas-fired power plant located in New Carlisle, Ind.

Fund flows

In other news, actively managed loan fund flows on Monday were positive $7 million and loan ETFs were negative $31 million, market sources said.

Inflows for loan funds week-to-date total an estimated $122 million, compared to inflows in the prior week of $539 million, sources added.

Loan indices rise

IHS Markit’s iBoxx loan indices were stronger on Monday, with the Leveraged Loan indexes (MiLLi) closing out the day up 0.05% and the Liquid Leveraged Loan indices (LLLi) closing out the day up 0.05%.

Month to date, the MiLLi is up 1.02% and year to date it is up 9.97%, and the LLLi is up 0.9% month to date and up 9.39% year to date.

Average secondary market bids in the U.S. on Monday were 93.14, down 0.01% from the previous day and up 1.38% year to date.

According to the IHS Markit data, some of the top advancers on Monday were Tradesmen/Tribe Buyer’s February 2017 term loan at 52.08, up from 50, Tortoise Investments’ January 2018 covenant-lite term loan at 40.4, up from 39.63, and Weight Watchers’ April 2021 covenant-lite term loan at 75.96, up from 74.83.

Some top decliners on Monday were At Home Group’s July 2021 covenant-lite term loan B at 45.33, down from 49, Mobileum’s March 2022 covenant-lite term loan at 66, down from 67.5, and Lucky Bucks’ July 2021 covenant-lite term loan at 27.88, down from 28.3.

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