Kestra, NVA, Livingston, Sound Physicians free to trade; Flexera moves commitment deadline

By Sara Rosenberg

New York, April 29 – Deals from Kestra Financial Inc. (Kestra Advisor Services Holdings A Inc.), NVA Holdings Inc. and Livingston International Inc. broke for trading on Monday, and Sound Physicians’ incremental first-lien term loan emerged in the secondary market after the original issue discount firmed at the tight end of revised talk.

In more happenings, Flexera Software LLC accelerated the commitment deadline for its incremental first-and second-lien term loans, and Mister Car Wash Holdings Inc. and Verifone Systems Inc. released price talk with launch.

Additionally, Catalent Pharma Solutions Inc., Oryx Midstream Services (Lower Cadence Holdings LLC), Avolon and Royalty Pharma joined this week’s primary calendar.

Kestra hits secondary

Kestra’s credit facilities began trading on Monday, with the $425 million seven-year term loan quoted at 99½ bid, par offered, according to a trader.

Pricing on the term loan is Libor plus 425 basis points with a 0% Libor floor, and it was sold at an original issue discount of 99. The debt has 101 soft call protection for six months.

During syndication, the term loan was upsized from $410 million and the spread firmed at the low end of the Libor plus 425 bps to 450 bps talk.

The company’s $500 million of credit facilities (B3/B+) also include a $75 million five-year revolver.

UBS Investment Bank, Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch, Goldman Sachs Bank USA and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to help fund the buyout of the company by Warburg Pincus LLC and add cash to the balance sheet. Stone Point Capital LLC, Kestra Financial’s current majority owner, will maintain a minority stake in the company.

Closing is expected this quarter or early in the third quarter, subject to customary regulatory approvals.

Kestra is an Austin, Texas-based provider of an advisor platform to financial professionals.

NVA frees up

NVA Holdings’ non-fungible $300 million incremental first-lien term loan due February 2025 also broke, with levels seen at 99¼ bid, par offered, a trader remarked.

Pricing on the term loan is Libor plus 350 bps with a 1% Libor floor and it was sold at an original issue discount of 99.

During syndication, the term loan was upsized from $200 million, the spread was reduced from talk in the range of Libor plus 375 bps to 400 bps and the discount firmed at the tight end of the 98.5 to 99 talk.

Bank of America Merrill Lynch is the left lead on the deal that will be used to fund acquisitions under signed letters of intent, to refinance revolver borrowings and for general corporate purposes.

NVA is an Agoura Hills, Calif.-based owner of independent freestanding veterinary hospitals.

Livingston starts trading

Livingston International’s $265 million first-lien term loan (B1/B-) surfaced in the secondary market as well, with levels quoted at 98 bid, 99 offered, a market source said.

Pricing on the first-lien term loan is Libor plus 575 bps with a 0% Libor floor and it was sold at an original issue discount of 98.

BMO Capital Markets is the left lead on the deal that will be used to help fund the buyout of the company by Platinum Equity.

Livingston is a Toronto-based trade-services firm.

Sound Physicians updated, breaks

Sound Physicians set the original issue discount on its fungible $35 million incremental first-lien term loan (Ba3/B) due June 2025 at 99.75, the tight side of revised talk of 99.5 to 99.75 and tight of initial talk of 99, according to a market source.

The incremental term loan is priced at Libor plus 275 bps with a 0% Libor floor, in line with existing first-lien term loan pricing.

Late in the day, the incremental term loan freed to trade, with levels quoted at 99¾ bid, par ¾ offered, another source added.

Goldman Sachs Bank USA is leading the deal that will be used to fund tuck in acquisitions currently under letter of intent.

Closing is expected this week.

Sound Physicians is a Tacoma, Wash.-based provider of hospital medicine services in the U.S. with services addressing the entire acute episode of care.

Flexera revises deadline

In other news, Flexera Software moved up the commitment deadline for its fungible $220 million incremental first-lien term loan (B-) due February 2025 and fungible $40 million incremental second-lien term loan (CCC+) due February 2026 to 5 p.m. ET on Monday from 3 p.m. ET on Tuesday, a market source said.

Signatures for the corresponding amendment remained due at 3 p.m. ET on Monday, the source added.

The incremental first-lien term loan is talked at Libor plus 350 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and the incremental second-lien term loan is talked at Libor plus 725 bps with a 0% Libor floor, in line with existing pricing, and a discount of 98.75. Call protection on the incremental second-lien term loan will match the existing second-lien call protection.

Jefferies LLC is leading the deal that will be used to fund a distribution to shareholders.

With this transaction, pricing on the company’s existing first-lien term loan is being lifted to Libor plus 350 bps from Libor plus 325 bps.

Lenders are offered a 15 bps consent fee for the amendment.

Flexera is an Itasca, Ill.-based provider of software and services that enable software publishers and device makers to install, enforce and deploy software licenses.

Mister Car reveals talk

Mister Car Wash held its lender call on Monday and announced price talk for its $775 million seven-year first-lien term loan and $40 million delayed-draw first-lien term loan 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, the source said.

The delayed-draw term loan availability is for 24 months and the ticking fee is half the spread for days 46 to 90 and the full spread thereafter.

Commitments are due at 3 p.m. ET on May 7, the source added.

The company’s $1.14 billion of credit facilities also include a $75 million revolver and a $250 million eight-year privately placed second-lien term loan.

Jefferies LLC, BMO Capital Markets, Nomura and UBS Investment Bank are leading the deal that will be used to refinance existing debt and pay a distribution to shareholders.

Mister Car Wash is a Tucson, Ariz.-based car wash company.

Verifone OID guidance

Verifone Systems came out with original issue discount talk of 99 to 99.5 on its fungible $300 million incremental first-lien term loan due Aug. 20, 2025 that launched with a morning call, a market source remarked.

The incremental term loan has a ticking fee of half the margin from days 46 to 90 and the full margin thereafter, the source added.

Like the existing first-lien term loan, the incremental term loan is priced at Libor plus 400 bps with a 0% Libor floor.

Commitments are due at 5 p.m. ET on Thursday.

Credit Suisse Securities (USA) LLC is the left lead on the deal, which will be used for general corporate purposes including potential mergers and acquisitions.

Verifone is a San Jose, Calif.-based company that makes secure electronic payment equipment.

Catalent coming soon

Catalent Pharma Solutions surfaced with plans to hold a lender call at 11 a.m. ET on Tuesday to launch its $650 million seven-year first-lien term loan B and talk emerged at Libor plus 250 bps to 275 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, a market source said.

Commitments are due at noon ET on May 10, the source added.

J.P. Morgan Securities LLC is leading the loan, which will be used with convertible preferred stock to fund the $1.2 billion acquisition of Paragon Bioservices Inc.

Closing is expected this quarter, subject to customary conditions.

Pro forma net leverage is expected to be about 4 times.

Catalent is a Somerset, N.J.-based provider of advanced delivery technologies and development solutions for drugs, biologics and consumer health products. Paragon is a Baltimore-based viral vector development and manufacturing partner for gene therapies.

Oryx on deck

Oryx Midstream set a bank meeting on Tuesday to launch its previously announced $1.5 billion seven-year term loan B (B2) and an up to $150 million five-year revolver, according to a market source.

Barclays, Goldman Sachs Bank USA, RBC Capital Markets and Jefferies LLC are leading the up to $1.65 billion of credit facilities that will be used to help fund the acquisition of the company by Stonepeak Infrastructure Partners, to refinance the existing Oryx Southern Delaware Holdings LLC facility, to consolidate Oryx Southern Delaware Holdings and Oryx Delaware Holdings LLC into a single borrower, to fund the required reserve accounts and for general corporate purposes.

Oryx, a Midland, Texas-based midstream crude operator in the Permian Basin, is being bought from Quantum Energy Partners, Post Oak Energy Capital, Concho Resources, WPX Energy and other investors for about $3.6 billion.

Avolon readies deal

Avolon scheduled a lender call for 10:30 a.m. ET on Tuesday to launch a $3,381,768,173 term loan B-3, a market source remarked.

Morgan Stanley Senior Funding Inc. is leading the debt that will be used to reprice an existing term loan B-3 from Libor plus 200 bps with a 0.75% Libor floor.

Avolon is an Ireland-based provider of aircraft leasing and lease management services.

Royalty Pharma sets launch

Royalty Pharma plans to hold a lender meeting on Tuesday to launch an $800 million seven-year incremental term loan B, according to a market source.

Bank of America Merrill Lynch is the left lead on the deal that will be used with a $200 million term loan A and cash on hand to fund the potential acquisition of a royalty stream in Keytruda, a medicine that may treat certain cancers by working with your immune system.

Royalty Pharma is a New York-based acquirer of royalty interests in marketed and late-stage biopharmaceutical products.

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