Spring Education, Sirva, CEVA Logistics, PLH Group, Gateway Casinos float pricing guidance

By Sara Rosenberg

New York, July 10 – In the loan market on Tuesday, Spring Education Group (SSH Group Holdings Inc.), Sirva Worldwide Inc., CEVA Logistics Finance BV, PLH Group and Gateway Casinos & Entertainment Ltd. released price talk on their deals with launch.

Furthermore, naviHealth Inc., VetCor Professional Practices LLC and Bomgar joined this week’s primary calendar.

Spring Education launches

Spring Education Group hosted its bank meeting on Tuesday and disclosed price talk on its $535 million first-lien term loan (B2/B-) and $225 million second-lien term loan (Caa2/CCC), according to a market source.

Talk on the first-lien term loan is Libor plus 425 basis points to 450 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 825 bps to 850 bps with a 0% Libor floor, a discount of 99 and hard call protection of 102 in year one and 101 in year two, the source said.

The company’s $800 million of credit facilities also include a $40 million revolver (B2/B-).

Commitments are due on July 24, the source added.

Macquarie Capital (USA) Inc. is leading the deal that will be used to help fund the acquisition of Nobel Learning Communities Inc., a West Chester, Pa.-based network of private schools, from Investcorp and the purchase of California schools of LePort Montessori.

Spring Education, a Primavera Capital Group portfolio company, is a provider of pre-K through 12 grade education.

Sirva floats terms

Sirva came out with price talk on its $410 million seven-year first-lien term loan (B1/B+) and $135 million eight-year second-lien term loan (Caa1/B-) a few hours before its afternoon bank meeting began, a market source remarked.

The first-lien term loan is talked at Libor plus 500 bps with a 0% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months, and the second-lien term loan is talked at Libor plus 875 bps to 900 bps with a 0% Libor floor, a discount of 98 to 98.5 and call protection of 102 in year one and 101 in year two, the source added.

The company’s $605 million of credit facilities also include a $60 million five-year revolver (B1/B+).

Commitments are due at 5 p.m. ET on July 20.

Barclays, Deutsche Bank Securities Inc. and Bank of America Merrill Lynch are leading the deal that will be used to help fund the buyout of the company by Madison Dearborn Partners from Aurora Resurgence and Equity Group Investments and Sirva’s concurrent acquisition of Team Relocation.

Closing is expected this summer, subject to regulatory approvals.

Sirva is an Oakbrook Terrace, Ill.-based relocation and moving service provider.

CEVA discloses guidance

CEVA held its bank meeting in the morning and shortly before the event kicked off, price talk on its $400 million seven-year first-lien term loan (B1/BB-) was announced at Libor plus 375 bps to 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.

Commitments are due on July 24.

Credit Suisse Securities (USA) LLC and HSBC are leading the deal.

The company also plans on getting a new $600 million senior revolving credit and ancillary facility due 2023 and an additional offering of debt, including by way of senior secured notes, contemplated in euro and in an amount of about $350 million, might follow at a later stage.

The new debt will be used with cash on hand to repay all $580 million term loans due 2021, to fund a tender offer for around $438 million of 9% first-lien senior secured notes due 2020 and for general corporate purposes.

CEVA is a Switzerland-based third-party logistics company.

PLH holds call

PLH Group released talk of Libor plus 475 bps to 500 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months on its $200 million five-year senior secured first-lien term loan (B2/B+) that launched with an afternoon call, according to a market source.

The company’s $260 million of credit facilities also include a $60 million 4.5-year ABL revolver.

Commitments are due at noon ET on July 25, the source said.

Barclays and KeyBanc Capital Markets are leading the deal that will be used to refinance substantially all of the company’s existing debt, fund a distribution to shareholders, and pay transaction fees and expenses.

PLH is an Irving, Texas-based full-service specialty contractor serving the electric power and pipeline industries.

Gateway OID talk

Gateway Casinos released original issue discount talk of 99 to 99.5 on its fungible $80 million add-on term loan B (BB-) due March 13, 2025 that launched with a morning call, a market source remarked.

The add-on term loan B is priced at Libor plus 300 bps with a step-down to Libor plus 275 bps following an initial public offering and a 0% Libor floor, and has 101 soft call protection for six months.

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

Morgan Stanley Senior Funding Inc. is leading the deal. BMO Capital Markets is the administrative agent.

The loan will be used to fund the acquisition of the Ontario Central Gaming Bundle, which consists of two current sites, Georgian Downs and Casino Rama, and one future site, Wasaga Beach/Collingwood, to fund general corporate purposes, and to pay related fees and expenses.

Gateway Casinos is a Burnaby, B.C.-based owner of gaming properties.

Intermedia call protection

In more happenings, Intermedia revealed that its $260 million seven-year term loan B is talked with 101 soft call protection for one year, a market source said.

Price guidance on the term loan is Libor plus 575 bps to 600 bps with a 1% Libor floor and an original issue discount of 98 to 99.

The company’s $285 million of credit facilities (B3/B), which launched with a bank meeting during the session, also include a $25 million five-year revolver.

Commitments are due on July 18.

TD Securities (USA) LLC is leading the deal that will be used to refinance existing first- and second-lien term loans.

Intermedia, a Madison Dearborn Partners portfolio company, is a Mountain View, Calif.-based provider of Unified Communications as a Service and business cloud applications software.

naviHealth on deck

naviHealth set a bank meeting for 10 a.m. ET on Thursday to launch $525 million of credit facilities, according to a market source.

The facilities consist of a $100 million five-year revolver and a $425 million seven-year first-lien term loan, the source said.

Barclays, Morgan Stanley Senior Funding Inc., MUFG, Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch, Deutsche Bank Securities Inc. and Natixis are leading the deal that will be used to fund a joint investment in the company by Clayton, Dubilier & Rice and Cardinal Health Inc.

Under the agreement, Clayton, Dubilier & Rice will acquire about a 55% ownership stake in naviHealth while Cardinal Health will retain around a 45% interest in the business. Also, Cardinal Health will have a call right to reacquire the business.

Closing is expected in the third quarter, subject to customary conditions.

naviHealth is a Brentwood, Tenn.-based manager of post-acute benefits for health plans and a value-based care partner to health systems and providers.

VetCor coming soon

VetCor Professional Practices scheduled a lender call for 10 a.m. ET on Friday to launch a $450 million seven-year first-lien term loan (B2/B), a market source remarked.

The company’s $830 million of senior secured credit facilities also include a $50 million five-year revolver (B2/B), a $95 million pre-placed delayed-draw first-lien term loan (B2/B), a $195 million eight-year pre-placed second-lien term loan (Caa2/CCC+) and a $40 million pre-placed delayed-draw second-lien term loan (Caa2/CCC+).

The first-lien term loan has 101 soft call protection for six months, the second-lien term loan has hard call protection of 102 in year one and 101 in year two, and the delayed-draw availability period is 24 months, the source added.

Jefferies LLC and Golub Capital are leading the deal that will be used to fund the buyout of the company by Oak Hill Capital Partners. The company’s existing shareholders, Harvest Partners LP, Cressey & Co. LP and management, will provide a significant new investment in VetCor in connection with the transaction.

VetCor is a Hingham, Mass.-based owner and operator of veterinary hospitals.

Bomgar joins calendar

Bomgar will hold a lender call at noon ET on Wednesday to launch an incremental term loan (B-), according to a market source.

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.

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