TransDigm, Univar, Generation Bridge, Marriott, SunSource, Chefs’, Barnes and more break

By Sara Rosenberg

New York, March 15 – TransDigm Group Inc. set the issue priced on its term loan K and term loan I at the tight side of guidance, and Univar Solutions (Windsor Holdings III LLC) firmed the spread on its U.S. and euro term loans at the low end of talk, and then these deals freed to trade on Friday.

Also, before breaking for trading, Generation Bridge Northeast LLC set the spread on its term loan B at the low side of guidance, and Marriott Ownership Resorts Inc. finalized the original issue discount on its term loan B at the tight end of talk.

Other deals to make their way into the secondary market during the session included SunSource (CD&R Hydra Buyer Inc./STS Operating Inc.), Chefs’ Warehouse Inc. (Dairyland USA Corp.), Barnes Group Inc. and Columbus McKinnon Corp.

In more happenings, Proofpoint Inc. modified the issue price on its incremental term loan B and removed the call protection, and WS Audiology (Auris Lux III Sarl) set U.S. and euro term loan B tranche sizes, finalized the spread on the U.S. loan at the low end of guidance and tightened the issue price on both tranches.

Additionally, Ivirma increased the size of its euro term loan B, and revised the original issue discount on the euro tranche as well as on its U.S. term loan B, and Cengage Learning Inc. upsized its first-lien term loan B, trimmed pricing and made a number of changes to documentation.

Furthermore, Kestra Advisor Services Holdings A Inc., Webpros and Cloud Software Group Inc. (Picard Parent Inc.) moved up the commitment deadlines for their term loan transactions, Hilton Grand Vacations Borrower LLC approached lenders with a repricing of its term loan B, and Kaman Corp. (Ovation Parent Inc.) came out with timing on the launch of its proposed first-lien term loan B.

TransDigm firmed, frees

TransDigm finalized the original issue discount on its $1.708 billion first-lien term loan K due March 2030 at 99.75, the tight end of the 99.5 to 99.75 talk, and set the issue price on its $4.525 billion first-lien term loan I due August 2028 at par, the tight end of the 99.75 to par talk, a market source said.

Both term loans are still priced at SOFR plus 275 basis points with a 0% floor, and have 101 soft call protection for six months.

On Friday, the loans broke for trading, with the term loan K quoted at par bid, par ¼ offered and the term loan I quoted at par 1/8 bid, par 3/8 offered, another source added.

Goldman Sachs Bank USA is the left lead on the deal that will be used to reprice and extend by about three years an existing $1.708 billion first-lien term loan H due Feb. 22, 2027 priced at SOFR plus 325 bps with a 0% floor, and to reprice an existing $4.525 billion first-lien term loan I due Aug. 24, 2028 down from SOFR plus 325 bps with a 0% floor.

TransDigm is a Cleveland-based designer, producer and supplier of highly engineered aircraft components for commercial and military aircraft.

Univar updated, trades

Univar set pricing on its $2.754 billion senior secured term loan B due August 2030 and €1 billion senior secured term loan B due August 2030 at SOFR/Euribor plus 400 bps, the low end of the SOFR/Euribor plus 400 bps to 425 bps talk, according to a market source.

As before, the term loans (B2/B+/BB-) have a 0% floor, a par issue price and 101 soft call protection for six months.

The term loans began trading during market hours, with the U.S. term loan quoted at par 1/8 bid, par 5/8 offered on the open and then it moved up to par ¼ bid, par ¾ offered, another source added.

JPMorgan Chase Bank is the left lead on the deal that will be used to reprice the company’s exiting $2.754 billion and €1 billion term loans due 2030 down from SOFR/Euribor plus 450 bps with a 0% floor.

Univar is a Downers Grover, Ill.-based distributor of commodity and specialty chemicals and ingredients.

Generation finalized, breaks

Generation Bridge Northeast firmed pricing on its roughly $846.3 million senior secured term loan B due Aug. 22, 2029 (Ba2/BB) at SOFR plus 350 bps, the low end of the SOFR plus 350 bps to 375 bps talk, according to a market source.

The term loan still has a 0% floor, an original issue discount of 99.75 for new money, a par issue price for existing lenders and 101 soft call protection for six months.

During the session, the term loan made its way into the secondary market, with levels quoted at par bid, par 3/8 offered, another source added.

Jefferies LLC, BMO Capital Markets, Goldman Sachs Bank USA and MUFG are leading the deal that will be used to reprice an existing term loan B down from SOFR plus 425 bps with a 0% floor.

Generation Bridge Northeast is an owner of power generation facilities in the Northeast representing about 5 GW of generation capacity diversified across three ISO markets.

Marriott sets OID, trades

Marriott Ownership Resorts firmed the original issue discount on its $800 million seven-year term loan B (BB+) at 99.5, the tight end of the 99 to 99.5 talk, a market source remarked.

Pricing on the term loan remained at SOFR plus 225 bps with a 0% floor, and the debt still has 101 soft call protection for six months.

On Friday, the term loan broke for trading, with levels quoted at 99½ bid, par offered, another source added.

JPMorgan Chase Bank, BofA Securities Inc., Wells Fargo Securities LLC and Truist Securities are leading the deal that will be used to refinance an existing term loan B due 2025 and to pay related fees and expenses.

Marriott Ownership, a subsidiary of Marriott Vacations Worldwide Corp., is an Orlando, Fla.-based pure-play vacation ownership company.

SunSource hits secondary

SunSource’s $1.685 billion seven-year first-lien term loan (B3/B) began trading as well, with levels quoted at par bid, par ½ offered, a market source said.

Pricing on the term loan is SOFR plus 400 bps with a 0% floor and it was sold at an original issue discount of 99.5. The loan has 101 soft call protection for six months.

During syndication, pricing on the term loan was reduced from talk in the range of SOFR plus 425 bps to 450 bps and the discount was revised from 99.

The company’s $2.185 billion of credit facilities also include a $500 million five-year ABL revolver.

UBS Investment Bank, Deutsche Bank Securities Inc., BofA Securities Inc., Barclays, BNP Paribas Securities Corp., Goldman Sachs Bank USA, Jefferies LLC, Mizuho, Natixis, RBC Capital Markets, Wells Fargo Securities LLC, US Bank and ING are leading the deal that will be used to refinance the company’s existing capital structure, to fund a distribution to shareholders, to pay original issue discount, fees and expenses, and to add cash to the balance sheet.

SunSource is an Addison, Ill.-based distributor of highly technical products, solutions and services.

Chefs’ Warehouse breaks

Chefs’ Warehouse’s $272.25 million first-lien term loan due Aug. 23, 2029 (B2/BB-) also freed up, with levels quoted at par bid, par ¾ offered, according to a market source.

Pricing on the term loan is SOFR plus 400 bps with a 0.5% floor and it was issued at par. The debt has 101 soft call protection for six months and no CSA.

During syndication, pricing on the term loan was lowered from SOFR plus 425 bps.

Jefferies LLC is leading the deal that will be used to reprice the company’s existing first-lien term loan due Aug. 23, 2029 down from SOFR+CSA plus 475 bps with a 0.5% floor. CSA on the existing term loan is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

Chefs’ Warehouse is a Ridgefield, Conn.-based distributor of specialty food products.

Barnes Group trades

Barnes Group’s roughly $648 million first-lien term loan due Aug. 31, 2030 was another deal to break, with levels quoted at par bid, par ½ offered, a market source remarked.

Pricing on the term loan is SOFR plus 250 bps with a 0% floor and it was issued at par. The debt has 101 soft call protection for six months and no CSA.

BofA Securities Inc. is the left lead on the deal that will be used to reprice an existing term loan B due Aug. 31, 2030 down from SOFR+10 bps CSA plus 300 bps with a 0% floor.

Barnes is a Bristol, Conn.-based developer of advanced processes, automation solutions and applied technologies for industries ranging from medical and personal care to mobility, packaging and aerospace.

Columbus hits secondary

Columbus McKinnon’s roughly $498 million term loan due May 2028 freed to trade, with levels quoted at par 1/8 bid, par 5/8 offered, according to a market source.

Pricing on the term loan is SOFR plus 250 bps with a 0.5% floor and it was issued at par. The loan has 101 soft call protection for six months.

JPMorgan Chase Bank, PNC and Wells Fargo Securities LLC are leading the deal that will be used to reprice an existing term loan down from SOFR plus 275 bps with a 0.5% floor.

Columbus McKinnon is a Getzville, N.Y.-based designer, manufacturer and marketer of intelligent motion solutions for material handling.

Proofpoint revised

Proofpoint tightened the issue price on its fungible $800 million incremental term loan B due August 2028 (B2//B+) to par from talk in the range of 99.04 to 99.5 and eliminated the 101 soft call protection for six months so that there is no call protection, a market source remarked.

Pricing on the term loan B is SOFR+CSA plus 325 bps with a 0.5% floor. CSA is ARRC standard of 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

Recommitments were due at 10:30 a.m. ET on Friday, and allocations went out later in the day, the source added.

Goldman Sachs Bank USA, Macquarie Capital (USA) Inc., BofA Securities Inc., RBC Capital Markets, Jefferies LLC, Barclays, UBS Investment Bank, HSBC Securities (USA) Inc., BMO Capital Markets, Antares Capital, Mizuho, Golub Capital, KKR Capital Markets and Stone Point Capital are leading the deal that will be used to refinance an existing $800 million second-lien term loan.

Proofpoint is a Sunnyvale, Calif.-based cybersecurity provider.

WS Audiology modified

WS Audiology set tranche sizes under its €2.768 billion equivalent U.S. and euro term loan B due February 2029 (B3/B-), with the U.S. loan sized at $1.05 billion and the euro loan sized at €1.83 billion, versus minimum $500 million and minimum €1 billion at launch, according to a market source.

Furthermore, pricing on the U.S. term loan finalized at SOFR plus 425 bps, the low end of the SOFR plus 425 bps to 450 bps talk, and the original issue discount was tightened to 99.5 from 99, the source said.

Recommitments for the U.S. term loan were due at 10 a.m. ET on Friday.

Also, the issue price talk on the euro term loan was changed to a range of 99.5 to par from a range of 99 to 99.5, and then firmed at par following the 8 a.m. ET euro recommitment deadline, the source continued.

Pricing on the euro term loan remained at Euribor plus 450 bps, and both term loans still have a 25 bps step-down at 4.75x senior net leverage and 101 soft call protection for six months.

Allocations went out on Friday, the source added.

WS Audiology leads

Goldman Sachs is the physical bookrunner on WS Audiology’s U.S. loan. Deutsche Bank, Danske Bank and JPMorgan Chase Bank are the physical bookrunners on the euro loan. HSBC Securities, Jyske Bank, Mizuho, Nordea, Nykredit, RBC Capital Markets, Santander and UBS Investment Bank are passive bookrunners. Citigroup Global Markets Inc. and MUFG are mandated lead arrangers. Deutsche Bank is the agent.

The term loans will be used to extend existing $1.2 billion and €2.1 billion term loans due February 2026, in conjunction with a €500 million equity contribution used to reduce the outstanding term loan debt by €360 million, to repay revolving credit facility borrowings and to pay transaction costs.

In addition, the company is getting a €525 million privately placed Holdco PIK financing to refinance its existing second-lien term loan.

WS Audiology is a Denmark and Singapore-based provider of hearing aids and solutions for people with hearing challenges.

Ivirma tweaked

Ivirma upsized its euro seven-year term loan B to €565 million from €550 million, and changed the original issue discount on the euro loan and on its $500 million seven-year term loan B to 99.5 from 99, a market source said.

Pricing on the U.S. and euro term loans (B2/B/B+) remained at SOFR/Euribor plus 450 bps with a 0% floor, and the debt still has 101 soft call protection for six months.

Commitments were due at 10 a.m. ET on Friday and allocations went out later in the day, the source added.

KKR Capital Markets is the sole physical bookrunner on the U.S. term loan, with Barclays and BofA Securities Inc. bookrunners. Barclays, BofA Securities and KKR are the physical bookrunners on the euro term loan. CVC Capital Markets, Deutsche Bank Securities Inc., Intesa, Mizuho, Morgan Stanley Senior Funding Inc., MUFG, Santander, SMBC, Societe Generale and UniCredit are passive bookrunners. Santander is the agent.

The loans will be used to refinance existing debt and pay the relevant transaction fees and expenses.

IVI America LLC is the U.S. loan borrower, and Inception Finco is the euro loan borrower.

Ivirma, backed by KKR and based in Valencia, Spain, and Basking Ridge, N.J., is a fertility platform.

Cengage reworked

Cengage Learning raised its senior secured covenant-lite first-lien term loan B due March 2031 (B2/B) to $1.645 billion from $1.613 billion and cut pricing to SOFR plus 425 bps from talk in the range of SOFR plus 450 bps to 475 bps, according to a market source.

Also, changes were made to documentation, including to incremental, inside maturity basket, MFN, general debt basket, available restricted payment capacity debt basket, ratio investment basket, ratio restricted payment basket, ratio RDP basket, J. Crew protection, EBITDA and asset sale sweep, the source said.

The term loan still has a 1% floor, an original issue discount of 99 and 101 soft call protection for six months.

Recommitments were due at 5 p.m. ET on Friday, with allocations expected on Monday, the source added.

Morgan Stanley Senior Funding Inc., BMO Capital Markets, Wells Fargo Securities LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs Bank USA, Standard Chartered, UBS Investment Bank, Apollo and KKR Capital Markets are leading the deal that will be used to refinance the company’s existing $1.613 billion term loan B and, due to the upsizing, to pay related fees and expenses.

Cengage is a Boston-based educational content, technology and services company.

Kestra accelerated

Kestra changed the commitment deadline for its $825 million seven-year first-lien term loan to 2 p.m. ET on Monday from noon ET on Tuesday, a market source said.

Talk on the term loan is SOFR plus 425 bps with a 0% floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months.

The company’s $922.5 million of credit facilities (B2/B-) also include a $97.5 million five-year revolver.

UBS Investment Bank is the left lead on the deal that will be used to refinance the company’s existing first-lien credit facilities.

Kestra, a Warburg Pincus LLC portfolio company, is an Austin, Tex.-based wealth management platform supporting a broad range of independent financial advisers.

Webpros deadline changed

Webpros accelerated the commitment deadline for its $515 million seven-year term loan B (B1//BB) to 5 p.m. ET on Monday from 5 p.m. ET on Tuesday, according to a market source.

Talk on the term loan is SOFR plus 425 bps with a 25 bps step-down at 0.5x inside closing date first-lien net leverage, a 0% floor, an original issue discount of 99 and 101 soft call protection for six months.

Goldman Sachs Bank USA is the left lead on the deal that will be used to refinance an existing $489 million first-lien term loan and to pay down revolving credit facility borrowings.

Webpros is a provider of web hosting automation software, web billing and other web applications.

Cloud timing revised

Cloud Software moved up the commitment deadline for its $1 billion seven-year first-lien term loan B (B2) to 2 p.m. ET on Monday from noon ET on Tuesday, a market source remarked.

Talk on the term loan is SOFR plus 450 bps with a 0.5% floor, an original issue discount of 98.5 and 101 soft call protection for six months.

BofA Securities Inc., Goldman Sachs Bank USA, UBS Investment Bank and others are leading the deal that will be used to partially repay preferred equity.

Cloud Software, formed in 2022 through the combination of Citrix Systems Inc. and Tibco Software Inc., is a provider of software franchises for and across data, automation, insight and collaboration serving enterprises across private, public, managed and sovereign cloud environments.

Hilton holds call

Hilton Grand Vacations emerged in the morning with plans to hold a lender call at noon ET on Friday to launch a $1.271 billion term loan B due Aug. 2, 2028 talked at SOFR plus 250 bps with no CSA, a 0% floor, a par issue price and 101 soft call protection for six months, a market source said.

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

BofA Securities Inc. is the left lead on the deal that will be used to reprice an existing $1.271 billion term loan B down from SOFR+CSA plus 275 bps with a 0% floor. Current CSA is ARRC standard of 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

Hilton Grand Vacations is an Orlando, Fla.-based timeshare company.

Kaman on deck

Kaman will hold a lender call at 10 a.m. ET on Tuesday to launch a $790 million seven-year senior secured first-lien term loan B, according to a market source.

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

Based on filings with the Securities and Exchange Commission, the company is also expected to get a $150 million revolver.

The credit facilities will be used with equity to fund the buyout of the company by Arcline Investment Management LP for $46.00 per share in cash. The transaction has a total enterprise value of about $1.8 billion.

Closing is expected in the first half of this year, subject to customary conditions, including approval by Kaman shareholders and receipt of required regulatory approvals.

Kaman is a Bloomfield, Conn.-based OEM and producer of subassemblies, components and parts for the aerospace & defense, industrial and medical markets.

Genesys allocates

Genesys allocated on Friday afternoon its $2.619 billion term loan B due December 2027, a market source remarked.

Pricing on the term loan is SOFR plus 350 bps with a 0.75% floor and it was issued at par. The debt has 101 soft call protection for six months and no CSA.

Goldman Sachs Bank USA is leading the deal that will be used to reprice an existing $2.619 billion term loan B due December 2027 down from SOFR+CSA plus 400 bps with a 0.75% floor. Current CSA is ARRC standard of 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

Genesys is a Daly City, Calif.-based provider of AI-powered experience orchestration.

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