PolyOne frees to trade atop OID; Information Resources, AssetMark, PetVet revise deals

By Sara Rosenberg

New York, Nov. 7 – PolyOne Corp. finalized the original issue discount on its term loan B at the wide end of guidance and then the debt made its way into the secondary market on Wednesday, with levels quoted above the issue price.

In more happenings, Information Resources Inc. (IRI Holdings Inc.) widened the spread and original issue discount on its first-lien term loan, AssetMark Financial Holdings Inc. added a pricing step-down to its first-lien term loan and tightened the issue price, and PetVet Care Centers LLC lifted the spread on its incremental first-lien term loan, adjusted the original issue discount and added call protection.

Also, Ducommun Inc., Space Exploration Technologies Corp. (SpaceX), Solenis Holdings LLC, MSX International and SMB Shipping Logistics LLC disclosed price talk with launch.

Furthermore, Imperva Inc., Valeant Pharmaceuticals International (Bausch Health), Evertec Group LLC, Flynn Restaurant Group LP, Dana Inc., Chefs’ Warehouse Inc. and At Home Holding III Inc. joined the near-term primary calendar.

PolyOne updated, breaks

PolyOne set the original issue discount on its $632.6 million covenant-light term loan B due Jan. 30, 2026 at 99.5, the wide end of the 99.5 to 99.75 talk, according to a market source.

The term loan is still priced at Libor plus 175 basis points with a 0% Libor floor and still has 101 soft call protection for six months.

After terms finalized, the loan freed to trade on Wednesday and levels were seen at 99 5/8 bid, 99 7/8 offered, the source said.

Wells Fargo Securities LLC is leading the deal that will be used to amend and extend an existing $632.6 million term loan B.

PolyOne is an Avon Lake, Ohio-based provider of specialized polymer materials, services and solutions.

IRI flexes higher

Information Resources lifted pricing on its $1.21 billion seven-year first-lien term loan (B2/B-) to Libor plus 450 bps from talk in the range of Libor plus 375 bps to 400 bps and changed the original issue discount to 99 from 99.5, according to a market source.

As before, the first-lien term loan has a 0% Libor floor and 101 soft call protection for six months.

Commitments were due at 4 p.m. ET on Wednesday, the source said.

The company’s $1.68 billion of senior secured credit facilities also include an $80 million five-year revolver (B2/B-) and a $390 million privately placed eight-year senior secured second-lien term loan (Caa2/CCC).

Jefferies LLC, Nomura and Ares are leading the deal that will be used to help fund the buyout of the company by Vestar Capital and select co-investors.

Information Resources is a Chicago-based provider of big data, predictive analytics and forward-looking insights that help companies grow their businesses.

AssetMark tweaks loan

AssetMark Financial Holdings added a 25 bps pricing step-down at 0.5 times inside closing gross secured leverage to its $250 million seven-year first-lien term loan (B1/BB+) and modified the original issue discount to 99.75 from 99.5, a market source said.

Initial pricing on the term loan was unchanged at Libor plus 350 bps with a 0% Libor floor, and the loan still has 101 soft call protection for six months.

Commitments were due at 2 p.m. ET on Wednesday, the source added.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to fund a shareholder distribution and for general corporate purposes.

AssetMark is a Concord, Calif.-based provider of wealth management and technology solutions that power independent financial advisers and their clients.

PetVet changes emerge

PetVet Care Centers raised pricing on its $125 million incremental covenant-light first-lien term loan (B2) due February 2025 to Libor plus 325 bps from Libor plus 275 bps, adjusted the original issue discount to 98.5 from 98.6 and added 101 soft call protection for six months, while leaving the 0% Libor floor unchanged, according to a market source.

The incremental loan will be a fully-funded standalone tranche.

Commitments were due at 5 p.m. ET on Wednesday, the source said.

Jefferies LLC and KKR Capital Markets are leading the deal that will be used to add cash to the balance sheet, repay an existing revolving credit facility draw and pay transaction related fees.

PetVet is a Westport, Conn.-based acquirer and operator of general practice and specialty veterinary hospitals for companion animals.

Ducommun guidance

Also in the primary market, Ducommun held its bank meeting on Wednesday and released talk on its $240 million seven-year covenant-light term loan B at Libor plus 350 bps to 375 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, according to a market source.

The company’s $340 million of credit facilities (B2/B+) also include a $100 million revolver.

Commitments are due at noon ET on Nov. 16, the source said.

Bank of America Merrill Lynch, SunTrust Robinson Humphrey Inc. and RBC Capital Markets are leading the deal that will be used to refinance the company’s existing revolver and term loan A.

Ducommun is a Santa Ana, Calif.-based provider of engineering and manufacturing services to aerospace, defense, and diverse technology-driven markets.

SpaceX floats terms

SpaceX announced talk of Libor plus 400 bps to 425 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months on its $750 million term loan B that launched with a bank meeting on Wednesday, according to a market source.

Commitments are due at noon ET on Nov. 16, the source said.

Bank of America Merrill Lynch is leading the deal that will be used for general corporate purposes.

SpaceX is a Hawthorne, Calif.-based designer, manufacturer and launcher of advanced rockets and spacecraft.

Solenis launches

Solenis held its bank meeting in London during the session and announced original issue discount talk of 99.25 on its fungible $170 million incremental covenant-light first-lien term loan (B2/B-) due June 26, 2025 and discount talk of 99.5 to 99.75 on its fungible €330 million incremental covenant-light first-lien term loan (B2/B-) due June 26, 2025, a market source remarked.

The incremental U.S. term loan is priced at Libor plus 400 bps with a 0% Libor floor and the incremental euro term loan is priced at Euribor plus 425 bps with a 0.5% floor.

Commitments are due at noon ET on Nov. 14, the source added.

Bank of America Merrill Lynch, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Natixis, RBC Capital Markets, Macquarie Capital (USA) Inc. and ING are leading the deal that will be used to fund the combination of Solenis with BASF’s paper and water chemicals business.

The maturity of the company’s existing first-lien term loans will spring to June 26, 2025 upon the closing of the combination.

Solenis is a Wilmington, Del.-based specialty chemicals provider serving the pulp & paper and water treatment industries.

MSX reveals talk

MSX International came out with talk of Libor plus 425 bps to 450 bps with a 0% Libor floor and an original issue discount of 99.5 on its $100 million term loan B-4 due January 2024 that launched with a lender call, a market source said.

In addition, talk on the company’s minimum €454 million term loan B-3 due January 2024 emerged at Euribor plus 425 bps to 450 bps with a 0% floor and a discount of 99.75, the source continued.

Both term loans have 101 soft call protection for six months.

Commitments are due at the close of business on Nov. 14.

HSBC and Nomura are the physical bookrunners on the deal. RBC is a bookrunner and the agent.

The new debt will be used to amend and restate senior facilities.

MSX, a Bain Capital portfolio company, is a business process outsourcing company.

SMB holds call

SMB Shipping Logistics hosted its lender call in the afternoon and launched its fungible $60 million incremental first-lien term loan (B-) with original issue discount talk of 99.5, according to a market source.

Like the existing $434 million first-lien term loan, the incremental loan is priced at Libor plus 400 bps with a 1% Libor floor.

Commitments and amendment approvals are due on Nov. 14, the source said.

Existing first-lien lenders who approve the amendment associated with the transaction will receive a 25 bps consent fee.

The company is also getting a $100 million privately placed incremental second-lien term loan. With this transaction, pricing of the pro forma $225 million second-lien term loan (CCC) will be reduced to Libor plus 800 bps with a 1% Libor floor from Libor plus 875 bps with a 1% Libor floor, the source added.

Antares Capital, Deutsche Bank Securities Inc., Citizens Bank and J.P. Morgan Securities LLC are leading the debt that will be used to finance a distribution to existing shareholders.

SMB, a Ridgemont Equity Partners portfolio company, is a Dallas-based provider of small parcel and freight services to the small and medium-sized business market.

Imperva sets meeting

Imperva scheduled a bank meeting for 10 a.m. ET in New York on Friday to launch $1.05 billion of term loans, split between a $760 million seven-year covenant-light first-lien term loan and a $290 million eight-year covenant-light second-lien term loan, a market source remarked.

The company is also expected to get a $100 million revolver.

Bank of America Merrill Lynch, Goldman Sachs Bank USA, Citigroup Global Markets Inc., Jefferies LLC, KKR Capital Markets and Macquarie Capital (USA) Inc. are leading the senior secured deal, with Bank of America left on the first-lien loan and Goldman left on the second-lien loan.

The new loans will be used with equity to fund the buyout of the company by Thoma Bravo LLC for $55.75 per share in cash in a transaction valued at about $2.1 billion.

Closing is expected late in the fourth quarter or early in the first quarter of 2019, subject to approval by Imperva’s stockholders and regulatory authorities and the satisfaction of customary conditions.

Imperva is a Redwood Shores, Calif.-based provider of best-in-class cybersecurity solutions on-premises, in the cloud and across hybrid environments.

Valeant schedules call

Valeant Pharmaceuticals will hold a lender call at 1:30 p.m. ET on Thursday to launch a $750 million incremental senior secured term loan B due June 1, 2025, a market source said.

Barclays and J.P. Morgan Securities LLC are leading the loan that will be used with a potential offering of new secured notes and cash on hand to fund a tender offer for 7.5% unsecured notes due 2021.

Valeant is a Laval, Quebec-based specialty pharmaceutical company.

Evertec joins calendar

Evertec set a bank meeting for 9:30 a.m. ET in New York on Thursday to launch a $425 million six-year covenant-light term loan B (B+), according to a market source.

Bank of America Merrill Lynch, SunTrust Robinson Humphrey Inc., Citigroup Global Markets Inc. and Goldman Sachs Bank USA are leading the deal that will be used to refinance the company’s existing senior secured credit facilities.

Evertec is a Puerto Rico-based end-to-end payment processor and transaction solutions provider.

Flynn readies loans

Flynn Restaurant Group will hold a lender call at 10:30 a.m. ET on Thursday to launch $255 million of fungible term loans, a market source said.

The debt consists of a $205 million add-on covenant-light first-lien term loan due June 29, 2025 and a $50 million add-on covenant-light second-lien term loan due June 29, 2026, the source added.

Bank of America Merrill Lynch, Citizens Bank, Fifth Third, KKR Capital Markets and Wells Fargo Securities LLC are leading the deal that will be used with extra proceeds from the June loan transaction to purchase US Beef, the largest franchisee in the Arby’s restaurant system, for about $580 million.

Flynn Restaurant is a San Francisco-based restaurant franchisee operator.

Dana coming soon

Dana plans to host a lender call at 10 a.m. ET on Thursday to launch a new loan transaction, a market source remarked.

Citigroup Global Markets Inc. is the left bookrunner on the deal.

The company announced in July that it received a commitment from Citigroup for $600 million of new financing to finance its purchase of the Drive Systems segment of the Oerlikon Group for CHF 600 million (about $600 million).

The acquisition is expected to close late this year or during the first quarter of 2019, subject to customary regulatory approvals.

Dana is a Maumee, Ohio-based supplier of drivetrain, sealing and thermal-management technologies.

Chefs’ Warehouse on deck

Chefs’ Warehouse scheduled a lender call for 10 a.m. ET on Thursday to launch a loan repricing transaction, according to a market source.

Jefferies LLC is leading the deal.

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

At Home plans call

At Home set a loan lender call for 11:30 a.m. ET on Thursday to launch a transaction that is being led by Bank of America Merrill Lynch, a market source said.

The company disclosed in a news release that it is planning a new $425 million seven-year senior secured term loan (B2) to refinance an existing term loan due June 2022, reduce outstanding borrowings under its asset-based revolver, and pay fees and expenses associated with the transaction.

At Home is a Plano, Texas-based specialty retailer of home decor products.

Walker & Dunlop closes

In other news, Walker & Dunlop Inc. closed on its $300 million seven-year term loan B, according to a news release.

Pricing on the term loan is Libor plus 225 bps with a 0% Libor 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, the term loan was upsized from $250 million and pricing was set at the low end of the Libor plus 225 bps to 250 bps talk.

Wells Fargo Securities LLC and J.P. Morgan Securities LLC led the deal that is being used to refinance an existing term loan B and for general corporate purposes.

Walker & Dunlop is a Bethesda, Md.-based provider of commercial real estate financial services.

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