QualTek frees to trade; Next Level Apparel revises deal; Bomgar accelerates deadline

By Sara Rosenberg

New York, July 16 – QualTek USA LLC’s term loan B made its way into the secondary market on Monday and the debt was seen trading above its original issue discount.

Over in the primary market, Next Level Apparel (YS Garments Inc.) widened pricing on its term loan, added-a step-down and extended the call protection, and Bomgar moved up the commitment deadline for new lenders on its incremental first-lien term loan.

In addition, Alera Group, WorldStrides, GlobalLogic Inc. and Horizon Global Corp. surfaced with new deal plans.

QualTek tops OID

QualTek’s $280 million seven-year first-lien term loan B (B3/B) broke for trading on Monday, with levels quoted at 98¼ bid, 99 offered, according to a market source.

Pricing on the term loan B is Libor plus 575 basis points with a 1% Libor floor, and it was sold at an original issue discount of 98. The debt has 101 soft call protection for one year and amortization of 2.5% per annum.

During syndication, the term loan was downsized from $290 million as the delayed-draw piece under the tranche was reduced to $35 million from $45 million, the spread was increased from talk in the range of Libor plus 525 bps to 550 bps, the discount was revised from 99, the call protection was extended from six months and the 12-months MFN sunset was eliminated.

Fifth Third Bank is leading the term loan.

The company is also getting a $65 million ABL revolver for which PNC is the lead arranger.

Proceeds will be used to help fund the buyout of the company by Brightstar Capital Partners and the delayed-draw tranche will be used to fund two acquisitions, which are expected to close on or around the same date as the buyout.

QualTek is a King of Prussia, Pa.-based provider of turnkey solutions, including engineering, installation, fulfillment and program management, to the telecommunications and power sectors.

OWIC announced

Also in trading, a $320 million Offers Wanted in Competition emerged in the morning and offers are due at 1 p.m. ET on Tuesday, a trader remarked.

Some of the names in the portfolio are B&G Foods, Acadia Healthcare Co. Inc., Harsco Corp. and Leidos Innovations Corp.

There are about 14 issuers in the OWIC, the trader added.

Next Level reworked

Moving to the primary market, Next Level Apparel raised pricing on its $330 million term loan to Libor plus 600 bps from talk in the range of Libor plus 400 bps to 425 bps, added a pricing step-down to Libor plus 550 bps when leverage is less than 3 times, pushed out the 101 soft call protection to one year from six months and sweetened amortization to 2.5% per annum from 1% per annum, a market source said.

The term loan still has a 1% Libor floor and an original issue discount 99.

The company’s $380 million credit facilities (B2/B) also include a $50 million revolver priced at Libor plus 600 bps with a step-down to Libor plus 550 bps when leverage is less than 3 times and a discount of 99.

Earlier in syndication, the incremental free and clear prong was cut to $40 million from $83 million, MFN was set for the life of the facilities, the excess cash flow sweep was set at 75% with step-downs, the available amounts starter basket was lowered to $15 million from $25 million, and the total net leverage ratio for restricted payments was trimmed to 2.5 times from 3.25 times.

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

BNP Paribas Securities Corp. is leading the deal that will be used to help fund the buyout of the Gardena, Calif.-based apparel company by Blue Point Capital Partners.

Bomgar moves deadline

Bomgar accelerated the commitment deadline for new lenders on its $105 million incremental first-lien term loan (B2/B-) to noon ET on Tuesday from 4 p.m. ET on Wednesday, according to a market source.

The incremental term loan is priced at Libor plus 400 bps with a 0% Libor floor, and is talked with an original issue discount of 99.5.

Jefferies LLC is leading the deal that will be used to help fund the acquisition of Avecto, a provider of endpoint privilege management.

Closing is expected on July 31.

Bomgar is a provider of remote support and privileged access management solutions to enterprise customers.

Alera joins calendar

Alera Group will hold a lender call on Wednesday to launch a $425 million term loan B (B) that is talked at Libor plus 450 bps to 475 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, a market source remarked.

Commitments are due at noon ET on July 27, the source added.

J.P. Morgan Securities LLC, Barclays and BMO Capital Markets are leading the deal, which will be used to refinance existing bank debt and fund acquisitions.

Alera is a Deerfield, Ill.-based insurance brokerage and wealth management firm.

WorldStrides readies loan

WorldStrides set a lender call for 11 a.m. ET on Tuesday to launch to launch a fungible $85 million add-on senior secured term loan B, according to a market source.

Goldman Sachs Bank USA is leading the deal that will be used to fund the acquisition of Envision.

WorldStrides is a Charlottesville, Va.-based educational student travel and study abroad organization.

GlobalLogic on deck

GlobalLogic scheduled a bank meeting for Wednesday to launch $600 million in term loans, a market source said.

The debt is split between a $525 million seven-year term loan and a $75 million delayed-draw term loan, the source added.

Commitments are due at noon ET on July 27.

J.P. Morgan Securities LLC is leading the deal that will be used to help fund the acquisition by Partners Group of Apax Partners’ stake in the company and to refinance existing debt.

The transaction values GlobalLogic at over $2 billion, and upon closing, Partners Group will be an equal shareholder with existing investor Canada Pension Plan Investment Board.

GlobalLogic is a San Jose, Calif.-based digital product engineering services provider.

Horizon coming soon

Horizon Global will hold a lender call on Tuesday to launch a $50 million add-on term loan talked at Libor plus 550 bps to 600 bps with a 1% Libor floor and an original issue discount of 99, according to a market source.

Commitments are due on July 26, the source said.

J.P. Morgan Securities LLC is leading the deal that will be used to repay asset-based facility borrowings.

Horizon is a Troy, Mich.-based manufacturer of branded towing and trailering equipment.

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