Aimbridge breaks; Garda, Kantar, Upstream Rehabilitation, Ontic deal updates surface

By Sara Rosenberg

New York, Oct. 23 – Aimbridge Hospitality’s add-on term loan B made its way into the secondary market on Wednesday, with levels quoted above its original issue discount.

In more happenings, Garda World Security Corp. set pricing on its term loan B at the low end of revised guidance, and Kantar reduced the size of its U.S. term loan B and its term loan A.

Also, Upstream Rehabilitation moved some funds between its first- and second-lien term loans, set the spread on the first-lien debt at the low end of talk, added a step-down and tightened the original issue discount, and Ontic (Bleriot US Bidco Inc.) upsized its first-lien term loan B and firmed pricing on its second-lien term loan at the high side of guidance.

Furthermore, ABC Supply (American Builders & Contractors Supply Co. Inc.), Edgewood Partners Holdings LLC (EPIC) and GoodRx released price talk with launch, and Genesee & Wyoming Inc. and National Seating & Mobility Inc. joined this week’s primary calendar.

Aimbridge frees up

Aimbridge Hospitality’s $425 million add-on covenant-lite term loan B due February 2026 began trading on Wednesday, with levels seen at par bid, par ˝ offered, a market source said.

Pricing on the add-on term loan is Libor plus 375 basis points with a 25 bps step-down at 5.6x total leverage and a 0% Libor floor. The debt was sold at an original issue discount of 99.75.

During syndication, the add-on term loan was upsized from $400 million and the discount was tightened from talk in the range of 99 to 99.5.

J.P. Morgan Securities LLC is leading the deal that will be used to help fund the company’s merger with Interstate Hotels & Resorts.

Closing is expected by the end of this year, subject to regulatory approval and customary conditions.

Aimbridge is a Dallas-based hotel management firm. Interstate is an Arlington, Va.-based hotel operator.

Garda updated

Moving to the primary market, Garda World Security firmed pricing on its $1,438,000,000 seven-year term loan B at Libor plus 475 bps, the low end of revised talk of Libor plus 475 bps to 500 bps but higher than initial talk of Libor plus 400 bps, according to a market source.

The term loan has a 0% Libor floor, an original issue discount of 98 and 101 soft call protection for one year.

Previously in syndication, the discount on the term loan was changed from 99 and the call protection was extended from six months.

The company’s $1.773 billion of senior secured credit facilities (B1/B) also include a $335 million five-year revolver.

J.P. Morgan Securities LLC, BofA Securities, Inc., Barclays, TD Securities (USA) LLC, Jefferies LLC, RBC Capital Markets, Bank of Nova Scotia and UBS Investment Bank are leading the deal.

Garda funding buyout

Proceeds from Garda’s credit facilities and $779 million of senior notes will be used to help finance its acquisition by BC Partners from Rhone Capital and refinance existing loans and senior notes. The recapitalization is valued at C$5.2 billion.

Upon completion, BC Partners will have a 51% common equity interest in Garda, and Stephan Cretier, founder, chairman and chief executive officer, together with select members of management, will hold 49%.

Closing is expected late this year, subject to customary conditions.

Garda is a Montreal-based provider of cash logistics and security solutions.

Kantar revised

Kantar cut its U.S. seven-year term loan B to $250 million from a revised amount of $500 million, and left pricing at Libor plus 500 bps with a 0% Libor floor and an original issue discount of 96, a market source remarked.

The company also trimmed its five-year term loan A to $300 million from $350 million, while keeping pricing at Libor plus 425 bps with a 0% floor and a discount of 98.5.

The proposed credit facilities also include a $400 million revolver, and a €750 million seven-year term loan B priced at Euribor plus 500 bps with a 0% floor and a discount of 97.

Previously in syndication, the term loan B debt was downsized from a total of $2.1 billion equivalent, pricing was set at the high end of revised talk of Libor/Euribor plus 475 bps to 500 bps and higher than initial talk in the range of Libor/Euribor plus 425 bps to 450 bps, the discounts on the B loans widened from revised talk of 98 and initial talk of 99, and the term loan A was added to the transaction.

Kantar leads

BofA Securities, Inc., Goldman Sachs, Morgan Stanley, Barclays, Credit Suisse, Deutsche Bank, HSBC, Mizuho, Natwest, Nomura and RBC are leading Kantar’s credit facilities, with BofA left on the U.S. loan and Goldman left on the euro loan.

Proceeds will be used with €1 billion of secured notes, upsized from €750 million, and €475 million of unsecured notes to help fund the buyout of the company by Bain Capital from WPP.

Kantar is a data, research, consulting and analytics company.

Upstream reworked

Upstream Rehabilitation lifted its seven-year covenant-lite first-lien term loan to $555 million from $520 million, firmed the spread at Libor plus 450 bps, the low end of the Libor plus 450 bps to 475 bps talk, added a step-down to Libor plus 425 bps after 0.75x of total net leverage deleveraging and moved the original issue discount to 99.5 from 99, according to a market source.

The first-lien term loan still has a 0% Libor floor and 101 soft call protection for six months.

Regarding the eight-year covenant-lite second-lien term loan, it was scaled back to $140 million from $175 million, while pricing remained at Libor plus 850 bps with a 0% Libor floor and a discount of 99, and call protection stayed at 102 in year one and 101 in year two, the source said.

The company’s $745 million of credit facilities also include a $50 million revolver.

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

Credit Suisse Securities (USA) LLC, Ally Bank, Athyrium Capital and Northwestern Mutual are leading the deal that will be used to help fund the buyout of the company by funds managed by Revelstoke Capital Partners.

Upstream is a Birmingham, Ala.-based provider of outpatient rehabilitation services.

Ontic tweaked

Ontic raised its seven-year covenant-lite first-lien term loan B (B2/B-) to $480 million from $475 million, and set pricing on its $175 million eight-year covenant-lite second-lien term loan (Caa2/CCC) at Libor plus 850 basis points, the high end of the Libor plus 825 bps to 850 bps talk, a market source said.

As before, the first-lien term loan B and a $75 million covenant-lite delayed-draw first-lien term loan B (B2/B-) are priced at Libor plus 475 bps with a 0% Libor floor and an original issue discount of 99, and have 101 soft call protection for six months, and the second-lien term loan has a 0% Libor floor, a discount of 98 and hard call protection of 102 in year one and 101 in year two.

Delayed-draw term loan availability is for 12 months post-closing subject to first-lien net leverage being no greater than the ratio at closing, and the delayed-draw ticking fee is half the spread for days 31 to 90 and the full spread thereafter.

The company’s now $815 million of credit facilities also include an $85 million five-year revolver (B2/B-).

Ontic being acquired

Ontic will use its new credit facilities to help fund its buyout by CVC Fund VII from BBA Aviation plc for an enterprise value of $1.365 billion.

Nomura Securities, Barclays and Macquarie Capital (USA) Inc. are leading the debt.

Allocations are expected on Thursday, the source added.

Closing is expected during the week of Oct. 28.

Ontic is a provider of high-quality, OEM-licensed parts and MRO services largely for legacy aerospace & defense platforms.

ABC holds call

In more primary news, ABC Supply hosted a lender call on Wednesday to launch a roughly $1.48 billion covenant-lite term loan B (B1/B+) due January 2027 talked at Libor plus 200 bps with a 0% Libor floor, an original issue discount of 99.25 to 99.5 and 101 soft call protection for six months, according to a market source.

BofA Securities, Inc. is the left lead on the deal that will be used to amend and extend an existing term loan B due Oct. 2023.

ABC Supply is a Beloit, Wis.-based building products distributor.

Edgewood sets talk

Edgewood Partners held its lender call during the session, launching its fungible $140 million incremental first-lien term loan with original issue discount talk of 99.03, a market source remarked.

The incremental term loan is priced at Libor plus 425 bps with a 1% Libor floor.

Commitments are due on Oct. 30, the source added.

Antares Capital and Golub Capital are leading the first-lien deal.

The company is also getting a $35 million incremental second-lien term loan.

The new debt will be used with funding under an existing $99 million first-lien delayed-draw term loan and $50 million second-lien delayed-draw term loan to finance an acquisition.

Edgewood Partners, a portfolio company of Oak Hill Capital Partners, is a San Francisco-based insurance, risk management and employee benefits brokerage and consulting firm.

GoodRx guidance

GoodRx came out with original issue discount talk in the range of 99 to 99.5 on its fungible $155 million incremental first-lien term loan due October 2025 that launched with a call in the morning, according to a market source.

Like the existing loan, the incremental term loan is priced at Libor plus 300 bps with a step-down to Libor plus 275 bps at 4x net first-lien leverage and a 0% Libor floor.

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

Commitments are due at noon ET on Oct. 30.

Goldman Sachs Bank USA, Barclays, BofA Securities Inc., Credit Suisse Securities (USA) LLC, KKR Capital Markets, Citizens Bank and SunTrust Robinson Humphrey Inc. are leading the deal that will be used with cash on hand to refinance an existing second-lien term loan.

GoodRx is a Santa Monica, Calif.-based operator of a prescription drug price comparison and coupon platform.

Parts Town deadline

Parts Town set a commitment deadline of Nov. 7 for its $788 million unitranche first-lien term loan that launched with a lender meeting on Wednesday, a market source said.

As reported earlier, the term loan, which already funded, is talked at Libor plus 550 bps with a 1% Libor floor and an original issue discount of 99.

Golub Capital is leading the deal that is being used with additional cash and rollover equity to fund the acquisition of Heritage Foodservice Group and refinance existing debt.

Berkshire Partners is the sponsor.

Parts Town is an Addison, Ill.-based OEM parts distributor and service provider to the foodservice equipment market. Heritage Parts is a Fort Wayne, Ind.-based provider of replacement parts for commercial and institutional kitchen equipment.

Genesee timing emerges

Genesee & Wyoming will hold a bank meeting at 12:30 p.m. ET in New York on Thursday to launch its previously announced $3.15 billion of senior secured credit facilities, according to a market source.

The facilities consist of a $600 million revolver, and a $2.55 billion seven-year covenant-lite first-lien term loan talked with a 0% Libor floor and 101 soft call protection for six months, the source said.

Commitments are due at 5 p.m. ET on Nov. 6.

Credit Suisse Securities (USA) LLC, Wells Fargo Securities LLC, RBC Capital Markets, Citigroup Global Markets Inc., BMO Capital Markets, Bank of Nova Scotia, TD Securities (USA) LLC, Barclays and MUFG are leading the deal, with Credit Suisse and Wells Fargo the joint left leads.

The new debt will be used with about $5.53 billion of equity to fund the buyout of the company by Brookfield Infrastructure and GIC for $112 per share in cash, or about $8.4 billion including debt.

Closing is expected by year-end, subject to customary closing conditions, such as approval by G&W stockholders, required regulatory approvals, and certain competition and antitrust approvals.

Genesee & Wyoming is a Darien, Conn.-based owner of short line railroads.

National Seating on deck

National Seating & Mobility scheduled a bank meeting for 10 a.m. ET in New York on Thursday to launch a $420 million seven-year covenant-lite first-lien term loan that is talked with a 0% Libor floor and 101 soft call protection for six months, a market source remarked.

Commitments are due at 5 p.m. ET on Nov. 7, the source added.

The company’s $532.5 million of credit facilities also include a $75 million revolver and a $37.5 million privately placed delayed-draw term loan.

Credit Suisse Securities (USA) LLC, Golub Capital, Antares Capital, Jefferies LLC and Credit Agricole are leading the deal, which will be used to help fund the buyout of the company by Cinven.

National Seating is a Nashville-based provider of complex rehabilitation mobility and accessibility solutions.

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