Rocket, ANI, Digital Media, break; American Rock tweaked; MetroNet, West Marine accelerated

By Sara Rosenberg

New York, May 24 – Rocket Software Inc. reduced the size of its U.S. incremental first-lien term loan B and increased the size of its euro first-lien term loan, and then the debt made its way into the secondary market on Monday.

Other deals to free up for trading during the session included ANI Pharmaceuticals Inc. and Digital Media Solutions LLC.

In more happenings, American Rock Salt Co. LLC upsized its first-and second-lien term loans and tightened the original issue discount on the first-lien tranche, and MetroNet and West Marine Inc. (Rising Tide Holdings Inc.) accelerated the commitment deadlines for their term loans.

Also, Sovos Brands Intermediate Inc., HelpSystems, Baldwin Risk Partners LLC and Xperi Corp. released price talk on their loan transactions, and Mission Broadcasting Inc. and System One Holdings LLC joined the near-term primary calendar.

Rocket retranches

Rocket Software trimmed its U.S. incremental first-lien term loan B due Nov. 28, 2025 to $470 million from a revised amount of roughly $490 million and an initial size of $825 million, and lifted its euro first-lien term loan due Nov. 28, 2025 to €300 million from €275 million, according to a market source.

As before, the U.S. term loan is priced at Libor plus 425 basis points with a 0.5% Libor floor and an original issue discount of 97.5, the euro term loan is priced at Euribor plus 425 bps with a 0% floor and a discount of 97.5, and both loans have 101 soft call protection for six months.

Previously in syndication, the Libor floor on the U.S. term loan was revised from 0%, the discount on both term loans widened from 98, and the euro term loan was added to the capital structure.

RBC Capital Markets and Deutsche Bank Securities Inc. are leading the deal. Credit Suisse is the administrative agent.

Rocket hits secondary

On Monday, Rocket Software’s bank debt allocated and freed to trade, with the U.S. incremental term loan quoted at 98 bid, 99 offered, and the euro term loan quoted at 97½ bid, 98 offered, a trader added.

The new loans will be used with some of the company’s excess balance sheet cash to fund the acquisition of ASG Technologies, a Naples, Fla.-based provider of information management and mainframe systems performance management, from Evergreen Coast Capital.

Closing is subject to receipt of applicable regulatory approvals and other customary conditions.

Bain Capital is the sponsor.

Rocket Software is a Waltham, Mass.-based provider of enterprise infrastructure software.

ANI starts trading

ANI Pharmaceuticals’ bank debt also broke, with the $300 million six-year term loan B quoted at 98¼ bid, 99¼ offered, a market source said.

Pricing on the term loan B is Libor plus 600 bps with a 0.75% Libor floor and it was sold at an original issue discount of 98. The loan has 101 soft call protection for one year and a ticking fee of half the margin from days 46 to 90 and the full margin thereafter.

During syndication, pricing on the term loan was increased from talk in the range of Libor plus 525 bps to 550 bps, the discount widened from 98.5, the call protection was extended from six months, a 4.75x maximum total net leverage covenant was added to the initially covenant-lite term loan, the 50 bps MFN was revised to life with no carve-outs from a 12-month sunset with certain carve-outs, and changes were made to incremental, investments and restricted payments.

The company’s $340 million of credit facilities (B2/B+) also include a $40 million five-year revolver.

ANI lead banks

Truist Securities, Regions Capital Markets and Huntington Securities are leading ANI’s credit facilities that will be used to help fund the acquisition of Novitium Pharma and refinance existing ANI debt.

Novitium, an East Windsor, N.J.-based pharmaceutical company, is being purchased for $89.5 million in cash and $74 million in equity, plus two potential future cash earn-outs of up to $46.5 million.

Other funds for the transaction will come from a $25 million PIPE investment by Ampersand Capital Partners.

Closing is expected in the second half of this year, subject to regulatory approvals and approval by ANI shareholders.

ANI is a Baudette, Minn.-based specialty pharmaceutical company developing, manufacturing and marketing branded and generic prescription pharmaceuticals.

Digital Media frees up

Digital Media Solutions’ bank debt began trading too, with the $225 million five-year term loan B quoted at 99 bid, par offered, according to a market source.

Pricing on the term loan is Libor plus 500 bps with a 0.75% Libor floor and it was sold at an original issue discount of 99. The debt has 101 soft call protection for one year.

During syndication, pricing on the term loan was raised from talk in the range of Libor plus 450 bps to 475 bps, the call protection was extended from six months and the maturity was shortened from seven years.

The company’s $275 million of credit facilities (B2/B) also include a $50 million revolver.

Truist and Fifth Third are leading the deal that will be used to refinance existing debt.

Digital Media is a Clearwater, Fla.-based adtech company.

American Rock revised

Moving back to the primary market, American Rock Salt increased its covenant-lite first-lien term loan B to $485 million from $470 million and adjusted the original issue discount to 99.75 from 99.5, a market source remarked.

In addition, the privately placed second-lien term loan was upsized to $115 million from $100 million.

The first-lien term loan is still priced at Libor plus 400 bps with a 0.75% Libor floor, and has 101 soft call protection for six months.

Commitments continue to be due at 5 p.m. ET on Tuesday, the source added.

Citizens Bank is leading the deal that will be used to refinance existing debt and fund a distribution to shareholders.

American Rock Salt is a Mount Morris, N.Y.-based producer of de-icing salt.

MetroNet accelerated

MetroNet moved up the commitment deadline for its $585 million seven-year first-lien term loan B (B2/B-) and $65 million first-lien delayed-draw term loan (B2/B-) to close of business on Tuesday from Wednesday, a market source said.

Talk on the first-lien term loan debt is Libor plus 375 bps to 400 bps with a 0.75% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months.

The company is also getting an $85 million privately placed second-lien term loan and a $175 million privately placed second-lien delayed-draw term loan.

Goldman Sachs Bank USA, TD Securities (USA) LLC, KKR Capital Markets, Citizens Bank and Fifth Third are leading the deal that will be used to refinance existing debt and for general corporate purposes.

The company announced last month that it is getting an investment from KKR and a new investment from its current investor Oak Hill Capital.

Closing is expected in the third quarter, subject to regulatory approvals and other customary conditions.

MetroNet is an Evansville, Ind.-based provider of fiber optic high-speed broadband services.

West Marine tweaks timing

West Marine accelerated the commitment deadline for its $385 million first-lien term loan (B2/B-) and $120 million second-lien term loan (Caa2/CCC) to 5 p.m. ET on Tuesday from 5 p.m. ET on Wednesday, according to a market source.

Talk on the first-lien term loan is Libor plus 475 bps to 500 bps with a 0.75% Libor floor, an original issue discount of 99 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 0.75% Libor floor, a discount of 98 to 98.5 and hard call protection of 102 in year one and 101 in year two.

Barclays, Golub Capital LLC and Nomura are leading the deal that will be used to help fund the buyout of the company by L Catterton from Monomoy Capital Partners.

Closing is expected this month, subject to customary conditions.

West Marine is an omni-channel provider of aftermarket products and services to the boating, fishing, sailing and watersports markets platform.

Sovos holds call

Sovos Brands emerged in the morning with plans to hold a lender call at noon ET on Monday to launch a $580 million seven-year covenant-lite first-lien term loan (B) talked at Libor plus 475 bps with a 0.75% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months, according to a market source.

Commitments are due at noon ET on June 4, the source added.

The company is also getting a $200 million privately placed second-lien term loan (CCC+).

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to repay existing debt and fund a distribution to shareholders.

Sovos is a Berkeley, Calif.-based food company.

HelpSystems guidance

HelpSystems announced price talk on it $1,365,465,000 senior secured first-lien term loan (B2/B-) due November 2026 at Libor plus 375 bps to 400 bps with a 0.75% Libor floor and a par issue price, a market source said.

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

The transaction was announced on Friday, but price talk was not available until Monday. No lender call was held for the loan.

Consents and commitments are due at noon ET on Thursday.

Jefferies LLC is leading the deal that will be used to reprice an existing first-lien term loan down from Libor plus 475 bps with a 1% Libor floor.

HelpSystems, a portfolio company of TA Associates, HGGC and Charlesbank, is an Eden Prairie, Minn.-based provider of IT operations management and monitoring, cybersecurity and business intelligence software.

Baldwin proposed terms

Baldwin Risk Partners hosted a lender call on Monday, launching a $500 million senior secured first-lien term loan B due 2027 talked at Libor plus 375 bps with a 0.5% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months, according to a market source.

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

JPMorgan Chase Bank is leading the deal that will be used for general corporate purposes, including acquisitions and investments, and to reprice an existing $400 million term loan B down from Libor plus 400 bps with a 0.75% Libor floor.

Baldwin Risk, a subsidiary of BRP Group Inc., is a Tampa, Fla.-based insurance distribution firm.

Xperi launches

Xperi held a lender call during the session to launch an $810 million seven-year term loan B (Ba3) talked at Libor plus 300 bps to 325 bps with a 0% Libor floor, an original issue discount of 99.5 to 99.75 and 101 soft call protection for six months, a market source remarked.

Commitments are due at 5 p.m. ET on June 3, the source added.

BofA Securities Inc., RBC Capital Markets, Barclays and Wells Fargo Securities LLC are leading the deal that will be used to help refinance an existing term loan due 2025 that is priced at Libor plus 400 bps with a 0% Libor floor.

Xperi is a San Jose, Calif.-based licenser of technologies and intellectual property.

Mission readies loan

Mission Broadcasting set a lender call for Tuesday to launch a $300 million term loan B (BBB-), according to a market source.

BofA Securities Inc. is leading the deal that will be used to repay some revolver borrowings.

Mission Broadcasting is a Wichita, Falls, Tex.-based television broadcasting company.

System One on deck

System One scheduled a lender call for Tuesday to launch a $30 million incremental term loan B, a market source said.

Truist Securities is leading the deal that will be used for acquisition financing.

System One is a Pittsburgh-based provider of specialized workforce solutions and integrated services.

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