Simon & Schuster, RealTruck, Watlow, Fleetpride, ChampionX break; Formula 1, Rocket updated

By Sara Rosenberg

New York, Sept. 27 – Simon & Schuster (Century DE Buyer LLC) lowered the spread on its first-lien term loan and tightened the issue price, and RealTruck Group Inc. changed the original issue discount on its incremental first-lien term loan and shortened the call protection, and then these deals freed to trade on Wednesday.

Also, Watlow Electric Manufacturing Co. downsized its add-on term loan B and finalized the original issue discount at the tight end of guidance before breaking for trading, and deals from FleetPride Inc. and ChampionX Corp. made their way into the secondary market as well.

In more happenings, Formula 1 set the spread on its term loan B at the low end of talk, and Rocket Software Inc. reduced the size of its U.S. first-lien term loan B, increased the size of its euro first-lien term loan B and firmed the original issue discount on both tranches at the tight end of guidance.

Furthermore, Aramsco Inc., DXP Enterprises Inc., BJ’s Wholesale Club Inc. and PowerSchool Holdings Inc. (Severin Acquisition LLC) released price talk with launch, and iSolved joined this week’s primary calendar.

Simon tweaked, frees

Simon & Schuster trimmed pricing on its $1.1 billion seven-year first-lien term loan to SOFR plus 400 basis points from SOFR plus 425 bps and moved the original issue discount to 99 from 98.5, according to a market source.

As before, the term loan has a 0% floor, a 25 bps leverage-based pricing step-down, a 25 bps step-down upon an initial public offering and 101 soft call protection for six months.

Recommitments were due at 11 a.m. ET on Wednesday and the term loan broke for trading later in the day, with levels quoted at 99¼ bid, par offered, another source added.

The company’s $1.21 billion of credit facilities (B2/B) also include a $110 million five-year revolver.

Jefferies LLC, KKR Capital Markets, HSBC Securities (USA) Inc., Mizuho, RBC Capital Markets, UBS Investment Bank, Goldman Sachs Bank USA, Credit Agricole and SPC are leading the deal that will be used to help fund the buyout of the company by KKR from Paramount Global for $1.62 billion in an all-cash transaction.

Closing is subject to customary conditions, including regulatory approvals.

Simon & Schuster is a New York-based general interest publishing company.

RealTruck revised, breaks

RealTruck modified the original issue discount on its non-fungible $180 million incremental first-lien term loan (B2/B-) due Jan. 29, 2028 to 97.5 from talk in the range of 96.5 to 97 and changed the 101 soft call protection to six months from one year, a market source said.

Pricing on the incremental term loan remained at SOFR plus 500 bps with a 0.75% floor.

Commitments continued to be due at noon ET on Wednesday and the incremental term loan began trading in the afternoon, with levels quoted at 97½ bid, 98½ offered, another source added.

Jefferies LLC is leading the deal that will be used to fund an acquisition.

RealTruck, formerly known as Truck Hero, is an Ann Arbor, Mich.-based supplier and online destination for retailers of branded functional accessories for pickup trucks and Jeeps/Broncos as well as sport utility vehicles and other lightweight vehicles.

Watlow updated, trades

Watlow Electric Manufacturing scaled back its fungible add-on covenant-lite term loan B (B2/B) due March 2028 to $170 million from $175 million and set the original issue discount at 99.25, the tight end of the 99.03 to 99.25 talk, a market source remarked.

Pricing on the add-on term loan B is SOFR+CSA plus 375 bps with a 0.5% floor, in line with pricing on the company’s existing $503 million term loan B, and the debt is getting 101 soft call protection for six months. CSA is ARRC standard of 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

During the session, the add-on term loan freed to trade, with levels quoted at 99¼ bid, 99 5/8 offered, a trader added.

BMO Capital Markets is leading the deal that will be used to repay an existing non-fungible incremental term loan due March 2028 priced at SOFR+ARRC CSA plus 500 bps with a 0.5% floor.

Tinicum is the sponsor.

Watlow is a St. Louis-based designer and manufacturer of complete thermal systems.

Fleetpride hits secondary

Fleetpride’s $920 million first-lien term loan (B3/B-) due September 2028 broke for trading, with levels quoted at 99 1/8 bid, 99 5/8 offered, according to a trader.

Pricing on the term loan is SOFR plus 450 bps with a 0.5% floor and it was sold at an original issue discount of 98.5. The debt has 101 soft call protection for six months.

During syndication, the term loan was upsized from $870 million, pricing was reduced from SOFR plus 475 bps and the discount firmed at the tight end of the 98 to 98.5 talk.

RBC Capital Markets, Barclays, BofA Securities Inc., US Bank, BMO Capital Markets, Wells Fargo Securities LLC, Regions Bank, Citigroup Global Markets Inc. and Goldman Sachs Bank USA are leading 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 revolver borrowings. The amount of the revolver paydown was increased with the recent term loan upsizing.

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

ChampionX breaks

ChampionX’s $620 million term loan B due June 2029 began trading as well, with levels quoted at par bid, par ½ offered, a market source said.

Pricing on the term loan is SOFR+CSA plus 275 bps with a 0.5% floor and it was issued at par. CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate. The debt has 101 soft call protection for six months.

During syndication, the issue price on the term loan was tightened from 99.75.

JPMorgan Chase Bank is leading the deal that will be used to reprice an existing term loan B down from SOFR+CSA plus 325 with a 0.5% floor. CSA on the existing loan is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

ChampionX is a The Woodlands, Tex.-based provider of chemistry solutions and highly engineered equipment and technologies that help companies drill for and produce oil and gas.

Formula 1 finalized

Formula 1 firmed pricing on its $1.7 billion term loan B due January 2030 at SOFR plus 225 bps, the low end of the SOFR plus 225 bps to 250 bps talk, according to a market source.

The term loan still has a 0.5% floor, a par issue price and 101 soft call protection for six months.

Goldman Sachs Bank USA is the left lead on the deal that will be used to reprice an existing $1.7 billion term loan B due 2030.

Formula 1 is a media company that is the exclusive commercial rights holder to FIA Formula One World Championship auto racing.

Rocket reworked

Rocket Software scaled back its U.S. first-lien term loan B due November 2028 to $1.41 billion from $1.6 billion, lifted its euro first-lien term loan B due November 2028 to €575 million from €400 million and finalized the original issue discount on both tranches at 98.5, the tight end of the 98 to 98.5 talk, a market source remarked.

As before, the U.S. term loan is priced at SOFR plus 475 bps with a 0.5% floor, the euro term loan is priced at Euribor plus 475 bps with a 0% floor, and both term loans (B2/B-) have 101 soft call protection for six months.

Allocations are expected on Thursday morning, the source added.

RBC Capital Markets LLC is the left lead on the deal that will be used to extend existing first-lien term loans from November 2025.

Rocket Software, a Bain Capital portfolio company, is a Waltham, Mass.-based infrastructure software provider.

Aramsco guidance

Aramsco held its lender call on Wednesday morning and, shortly before the call began, talk on its $430 million seven-year first-lien term loan and $75 million seven-year with 24-month availability first-lien delayed-draw term loan was announced at SOFR plus 475 bps with a 25 bps leverage-based step-down, a 25 bps step-down upon an initial public offering, a 0% floor and an original issue discount of 98, according to a market source.

Ticking fees on the delayed-draw term loan are half the margin from days 61 to 120 and the full margin thereafter, and the original issue discount on the delayed-draw loan will be paid at the time of draw, the source said.

The term loan (B3/B-) has 101 soft call protection for six months.

The company’s $585 million of credit facilities also include an $80 million five-year ABL revolver.

Commitments are due at noon ET on Oct. 5.

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 United States and Canada.

DXP proposed terms

DXP Enterprises came out with talk of SOFR+10 bps CSA plus 450 bps to 475 bps with a 1% floor, an original issue discount of 98.5 to 99 and 101 soft call protection for six months on its $550 million term loan B (B2/B) due 2030 that launched with a lender call in the morning, a market source said.

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

Goldman Sachs Bank USA is the left lead on the deal, which 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.

BJ’s sets talk

BJ’s Wholesale Club launched on its morning lender call its $400 million covenant-lite term loan B due February 2029 at talk of SOFR plus 200 bps to 225 bps with a 0% floor and a par issue price, according to a market source.

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

Deutsche Bank Securities Inc., Nomura Securities, BofA Securities Inc. and Wells Fargo Securities LLC are leading the dela 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.

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

PowerSchool launches

PowerSchool released talk of SOFR plus 325 bps with a step-down to SOFR plus 300 bps at 0.25x inside closing total first-lien net leverage, a 0% floor, an original issue discount of 99.5 and 101 soft call protection for six months on its $840 million first-lien term loan (B2) due Aug. 1, 2027 in connection with its morning lender call, a market source remarked.

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

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.

iSolved readies deal

iSolved set a bank meeting for 3:30 p.m. ET on Thursday to launch $625 million of credit facilities, according to a market source.

The facilities consist of a $75 million five-year revolver and a $550 million seven-year first-lien term loan, the source said.

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

UBS Investment Bank, Deutsche Bank Securities Inc., Citigroup Global Markets Inc., Jefferies LLC and JPMorgan Chase Bank are leading the deal that will be used to repay existing debt, to fund cash to the balance sheet and for general corporate purposes.

Accel-KKR is the sponsor.

iSolved is a provider of cloud based human capital management software, focusing on SMB and midmarket organizations.

Fund flows

In other news, actively managed loan fund flows on Tuesday were negative $9 million and loan ETFs were negative $181 million, market sources said.

Loan funds are tracking their first withdrawal in five weeks, sources added.

Loan indices mixed

IHS Markit’s iBoxx loan indices were mixed on Tuesday, with the Leveraged Loan indexes (MiLLi) closing out the day down 0.06% and the Liquid Leveraged Loan indices (LLLi) closing out the day up 0.05%.

Month to date, the MiLLi is up 0.95% and year to date it is up 9.9%, and the LLLi is up 0.77% month to date and up 9.25% year to date.

Average secondary market bids in the U.S. on Tuesday were 93.11, down 0.02% from the previous day and up 1.35% year to date.

According to the IHS Markit data, some of the top advancers on Tuesday were Mallinckrodt’s June 2022 covenant-lite term loan at 75.13, up from 73.85, At Home Group’s July 2021 covenant-lite term loan B at 45.92, up from 45.33, and Cano Health’s January 2022 covenant-lite term loan at 63.3, up from 62.7.

Some top decliners on Tuesday were Tradesmen/Tribe Buyer’s February 2017 term loan at 50.25, down from 52.08, Venator’s June 2017 covenant-lite term loan B at 45, down from 46.31, and Digital Media Solutions’ May 2021 term loan at 66.59, down from 68.34.

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