Imperial Dade, Compuware, MoneyGram free to trade; Press Ganey better on buyout news

By Sara Rosenberg

New York, June 11 – Imperial Dade (BCPE Empire Holdings Inc.) set the spread on its first-lien term loan at the low end of guidance and Compuware Corp. finalized the issue price on its incremental first-lien term loan at the tight side of guidance, and then both of these deals began trading on Tuesday.

Also in the secondary market, MoneyGram International Inc.’s first-lien term loan freed to trade during the session, and Press Ganey Associates Inc.’s first-lien term loan was higher after news surfaced that the company is being acquired.

In other news, Compania Espanola de Petroleos SAU (Cepsa) lowered the spread on its term loan, added a step-down and modified the original issue discount, and Avantor firmed pricing on its U.S. and euro term loans at the tight side of talk and added a leverage-based step-down.

Furthermore, Crosby US Acquisition Corp. reduced the size of its first-lien term loan while also updating price talk and added a second-lien term loan to the structure, and Kindred At Home (Gentiva Health Services Inc.) changed the original issue discount on its add-on first-lien term loan.

Additionally, US Anesthesia Partners released price talk on its add-on term loan B with launch, and Upland Software Inc. and BRP Inc. joined this week’s primary calendar.

Imperial Dade updated, breaks

Imperial Dade firmed pricing on its $790 million seven-year covenant-lite first-lien term loan (B3/B) at Libor plus 400 basis points, the low end of the Libor plus 400 bps to 425 bps talk, and left the 0% Libor floor, original issue discount of 99 and 101 soft call protection for six months unchanged, according to a market source.

Of the total first-lien term loan amount, $130 million is delayed-draw.

Recommitments were due at noon ET on Tuesday and then the debt freed to trade, with the strip of funded and delayed-draw first-lien term loan quoted at 99½ bid, par ¼ offered, another source added.

The company’s $1,265,000,000 of credit facilities also include a $175 million ABL revolver and a privately placed $300 million second-lien term loan (Caa2/CCC+), of which $50 million is delayed-draw.

Credit Suisse Securities (USA) LLC, Barclays and Citizens Bank are leading the deal that will help fund the buyout of the company by Bain Capital. Audax Private Equity will retain a stake in the company.

Closing is expected this quarter, subject to customary conditions and regulatory approvals.

Imperial Dade is a distributor of disposable food service and janitorial supplies with headquarters in Jersey City, N.J., and Miami.

Compuware firms, frees up

Compuware finalized the original issue discount on its fungible $230 million incremental first-lien term loan (B2/B) due Aug. 23, 2025 at 99.5, the tight end of the 99.25 to 99.5 talk, a market source remarked.

The term loan is priced at Libor plus 400 bps with a 0% Libor floor, and has 101 soft call protection for six months.

Commitments were due at noon ET on Tuesday, accelerated from 3 p.m. ET, and, later in the day, the term loan broke for trading, with levels quoted at 99¾ bid, par ¼ offered, another source added.

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

As part of this transaction, pricing on the company’s existing first-lien term loan is being increased to Libor plus 400 bps from Libor plus 350 bps for fungibility.

Compuware is a Detroit-based technology performance company.

MoneyGram hits secondary

MoneyGram’s $645 million first-lien term loan due May 2023 freed up as well, with levels quoted at 98½ bid, 99 offered, according to a market source.

Pricing on the term loan is Libor plus 600 bps with a 1% Libor floor, and it was sold at an original issue discount of 98.5. The debt is non-callable for one year, with a 104 option in year one for a change of control, then at 102 in year two and 101 in year three.

During syndication, the loan was downsized from talk at launch of $650 million to $675 million, pricing was lifted from Libor plus 550 bps, the discount widened from 99 and the call protection was changed from a 101 soft call for one year.

Bank of America Merrill Lynch and Wells Fargo Securities LLC are leading the deal that amend and extend an existing first-lien term loan due March 2020 priced at Libor plus 325 bps with a 1% Libor floor.

There is about $900 million outstanding under the existing first-lien term loan, but MoneyGram will repay $245 million of the debt with proceeds from a $245 million senior secured second-lien term loan (Caa2/CCC+) priced at an annual interest rate of 13%, a portion of which would be payable in kind at the company’s option.

MoneyGram is a Dallas-based money transfer company.

Press Ganey rises

Also in trading, Press Ganey’s first-lien term loan strengthened to 99¾ bid, par 1/8 offered from 99½ bid, par offered following an announcement that the company is being bought by Leonard Green & Partners LP and Ares Management Corp. from EQT VII, a market source said.

Closing on the buyout is expected in the third quarter, subject to customary approvals.

Barclays and Goldman Sachs are acting as financial advisers to Press Ganey.

Press Ganey is a Wakefield, Mass.-based provider of safety, quality, patient experience and workforce engagement solutions for healthcare organizations.

Cepsa changes emerge

Back in the primary market, Cepsa cut pricing on its roughly $605 million term loan B (€540 million equivalent) (BB-/BB) to Libor plus 475 bps from Libor plus 500 bps, added a step-down to Libor plus 450 bps based on leverage and moved the original issue discount to 99 from 98.5, according to a market source.

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

Commitments are due on Wednesday, the source said.

HSBC Securities (USA) Inc., BNP Paribas Securities Corp., Citigroup Global Markets, Deutsche Bank Securities, RBC Capital Markets and Santander are leading the deal that will be used with equity to fund the acquisition of a significant minority interest in the company by the Carlyle Group from Mubadala Investment Co.

Closing is expected by year-end, subject to regulatory approvals.

Cepsa is a Madrid, Spain-based privately owned integrated oil & gas company.

Avantor tweaks deal

Avantor finalized the spread on its $810 million term loan B (Ba2/B+/BB+) due November 2024 at Libor plus 300 bps, the low end of the Libor plus 300 bps to 325 bps talk, a market source said.

Furthermore, the company firmed its €418 million term loan B (Ba2/B+/BB+) due November 2024 at Euribor plus 325 bps, the low end of the Euribor plus 325 bps to 350 bps talk.

And, a 25 bps step-down was added to both term loans at 0.5x inside closing date net first-lien leverage, the source continued.

As before, the U.S. term loan has a 1% Libor floor, the euro term loan has a 0% floor, and both term loans have a par issue price and 101 soft call protection for six months.

Recommitments were due at 2 p.m. ET on Tuesday, the source added.

Goldman Sachs Bank USA is leading the deal that will reprice an existing U.S. term loan down from Libor plus 375 bps with a 1% Libor floor and an existing euro term loan down from Euribor plus 375 bps with a 0% floor.

Avantor is a Radnor, Pa.-based provider of integrated, tailored solutions for the life sciences and advanced technology industries.

Crosby restructures

Crosby US Acquisition cut its seven-year first-lien term loan to $475 million from $625 million and changed price talk to a range of Libor plus 450 bps to 475 bps from just Libor plus 475 bps, according to a market source.

Also, the company added a $150 million privately placed second-lien term loan to the capital structure, the source said.

The first-lien term loan is still talked with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

Commitments are due by the end of the day on Friday, the source added.

UBS Investment Bank and KKR Capital Markets are leading the deal that will be used to refinance existing debt.

Crosby is a Tulsa, Okla.-based provider of lifting, rigging and material handling hardware.

Kindred revised

Kindred At Home adjusted the original issue discount on its fungible $410 million add-on first-lien term loan due July 2025 to 99.875 from talk in the range of 99 to 99.5, a market source remarked.

The add-on term loan is priced at Libor plus 375 bps with a 0% Libor floor, in line with the existing term loan, and all of the debt is getting 101 soft call protection for six months.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance an existing second-lien term loan.

Kindred At Home is a provider of home health and hospice.

US Anesthesia guidance

US Anesthesia Partners held its lender call on Tuesday and announced original issue discount talk of 99 to 99.5 on its fungible $200 million add-on senior secured first-lien term loan B (B1/B) due June 23, 2024, a market source said.

Like the existing term loan, the add-on loan is priced at Libor plus 300 bps with a 1% Libor floor.

Commitments are due on Monday, the source said.

Goldman Sachs Bank USA, Barclays, J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc., BMO Capital Markets, Capital One and Antares Capital are leading the deal that will be used to fund tuck-in and platform acquisitions, repay an outstanding revolver balance, and pay related fees and expenses.

US Anesthesia is a Fort Lauderdale, Fla.-based physician-service organization that focuses on providing anesthesia and pain management services to patients.

Upland Software on deck

Upland Software set a bank meeting for 10:30 a.m. ET in New York on Wednesday to launch $380 million of credit facilities (B2/B), according to a market source.

The facilities consist of a $30 million revolver, and a $350 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, the source said.

Commitments are due at 5 p.m. ET on June 26.

Credit Suisse Securities (USA) LLC is the left lead on the deal, which will be used to refinance existing debt.

Upland Software is an Austin, Texas-based SaaS provider of enterprise work management software.

BRP readies loan

BRP scheduled a lender call for 2:30 p.m. ET on Wednesday to launch a non-fungible $335 million incremental term loan B-2 due May 23, 2025, a market source said.

Commitments are due on June 21, the source added.

RBC Capital Markets and BMO Capital Markets are leading the deal that will be used to fund a substantial issuer bid to purchase for cancellation up to C$300 million of the company’s subordinate voting shares and for general corporate purposes.

Closing is expected during the week of July 22.

BRP is a Valcourt, Quebec-based designer, manufacturer, distributor and marketer of motorized recreational vehicles and powersports engines.

Justrite sets deadline

Justrite Safety Group outlined a commitment deadline of June 25 for its $495 million of first-lien credit facilities (B2/B) that launched with a bank meeting on Tuesday afternoon, a market source remarked.

The facilities consist of a $35 million revolver, a $410 million seven-year first-lien term loan B and a $50 million delayed-draw first-lien term loan B with two-year availability.

As previously reported, talk on the term loan B debt is Libor plus 425 bps to 450 bps with a 0% Libor floor and an original issue discount of 99. The term loan B has 101 soft call protection for six months.

The funded and delayed-draw term loan B are being sold as a strip.

Citizens Bank and Golub are leading the deal that will be used with a $127.5 million privately placed second-lien term loan to refinance existing debt.

Justrite is a Des Plaines, Ill.-based manufacturer and supplier of non-personal protective equipment solutions for industrial and compliance-oriented end markets. The company was acquired by Audax Group in 2015.

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