Internet, Adtalem, ProAmpac, Jadex, Precision Medicine, Wheel Pros, GrafTech and more break

By Sara Rosenberg

New York, Feb. 12 – Internet Brands finalized the original issue discount on its second-lien term loan at the tight end of revised talk and Adtalem Global Education Inc. downsized its term loan B, and both of these deals freed to trade on Friday.

Also, before breaking for trading, ProAmpac increased the size of its incremental first-lien term loan and modified the issue price, and Jadex Inc. firmed the spread on its first-lien term loan at the high end of talk and extended the call protection.

Additionally, Precision Medicine Group LLC set the spread on its term loan debt at the high side of guidance and Wheel Pros Inc. finalized the original issue discount on its incremental first-lien term loan at the tight end of talk and GrafTech Finance Inc. firmed pricing on its term loan B at the low side of guidance, and then these deals also hit the secondary market.

Furthermore, Gainwell Technologies set pricing on its incremental first-lien term loan at the narrow end of talk ahead of freeing to trade, and deals from Dell Technologies Inc. and Cotiviti Inc. surfaced in the secondary as well.

In more happenings, DigiCert Inc. (Dcert Buyer Inc.) shifted some funds between its incremental first-and second-lien term loans, added a refinancing of its existing second-lien term loan and updated pricing, and Thryv Inc. widened the original issue discount on its term loan B and sweetened the call protection and amortization.

And, Compassus LLC firmed pricing on its term loan debt at the low end of guidance and the discount on its incremental tranche at the tight side of revised talk, American Trailer Works accelerated the commitment deadline for its first-lien term loan, and Hillman Group Inc., AHP Health Partners Inc. and Array Technologies joined the near-term primary calendar.

Internet Brands updated

Internet Brands firmed the original issue discount on its $575 million eight-year second-lien term loan (Caa2/CCC+) at 99.75, the tight end of revised talk of 99.5 to 99.75 and tighter than initial talk of 99.5, a market source remarked.

Pricing on the second-lien term loan is Libor plus 625 basis points with a 0% Libor floor, and the debt has hard call protection of 102 in year one and 101 in year two.

The company is also getting a fungible $450 million incremental covenant-lite first-lien term loan due September 2024 that is priced at Libor plus 375 bps with a 1% Libor floor and a par issue price, and has 101 soft call protection through June 18.

During syndication, the incremental first-lien term loan was upsized from $300 million.

Internet Brands frees up

On Friday, Internet Brands’ bank debt made its way into the secondary market with the incremental first-lien term loan quoted by one source at par ¼ bid, par ¾ offered, and the second-lien term loan quoted by another source at par bid, 101½ offered.

Credit Suisse Securities (USA) LLC, RBC Capital Markets and KKR Capital Markets are leading the deal. Credit Suisse is the left lead on the incremental first-lien term loan and RBC is the left lead on the second-lien term loan.

The incremental first-lien term loan will be used to fund tuck-in acquisitions and for general corporate purposes, and the second-lien term loan will be used to refinance existing debt.

Internet Brands is an El Segundo, Calif.-based online media and software services organization.

Adtalem downsizes

Adtalem trimmed its seven-year covenant-lite term loan B to $850 million from $1 billion and lifted its senior secured notes offering to $800 million from $650 million, a market source said.

The term loan is priced at Libor plus 450 bps with a 0.75% Libor floor and an original issue discount of 99, and has 101 soft call protection for six months.

Previously in syndication, pricing on the term loan was increased from talk of Libor plus 350 bps to 375 bps and the discount widened from 99.5.

The company’s now $1.25 billion of senior secured credit facilities (B1/BB-) also include a $400 million five-year revolver.

Morgan Stanley Senior Funding Inc., Barclays, Credit Suisse Securities (USA) LLC, MUFG and Fifth Third are leading the deal.

Adtalem starts trading

Adtalem’s term loan B hit the secondary market in the afternoon, with levels quoted at 99 1/8 bid, 99 5/8 offered, a trader added.

The new loan and bonds will be used with cash on the balance sheet to fund the acquisition of Walden University from Laureate Education Inc. for $1.48 billion and refinance Adtalem’s existing credit agreement.

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

Net leverage is anticipated to be 2.8x and total gross leverage is expected to be 3.6x.

Adtalem is a Chicago-based workforce solutions provider. Walden University is an online health care education provider.

ProAmpac modified, trades

ProAmpac raised its fungible incremental first-lien term loan to $420 million from $380 million and changed the issue price to par from 99.75, according to a market source.

Pricing on the incremental term loan is Libor plus 400 bps with a 1% Libor floor, in line with the existing term loan, and the debt has 101 soft call protection through May 2.

Recommitments were due at noon ET on Friday and the incremental term loan started trading in the afternoon, with levels quoted at par 1/8 bid, par 5/8 offered, a trader added.

Antares Capital is the left lead on the deal that will be used to fund acquisitions, repay the non-extended term loan, term out the revolver and pay transaction fees and expenses.

Pro forma for the transaction, the first-lien term loan will total about $1.814 billion.

ProAmpac, a Pritzker Private Capital portfolio company, is a Cincinnati-based supplier of flexible packaging products.

Jadex tweaked, breaks

Jadex set pricing on its $450 million seven-year covenant-lite first-lien term loan at Libor plus 475 bps, the wide end of the Libor plus 450 bps to 475 bps talk, and extended the 101 soft call protection to one year from six months, a market source said.

The term loan still has a 0.75% Libor floor and an original issue discount of 99.

The company’s $510 million of credit facilities (B2/B-) also include a $60 million revolver.

During the session, the term loan broke for trading, with levels quoted at 99¼ bid, par offered, another source added.

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to refinance an existing term loan and fund a shareholder distribution.

Jadex, formerly known as Process Solutions, is a Greer, S.C.-based advanced manufacturing and materials sciences company.

Precision finalized

Precision Medicine Group firmed pricing on its fungible $75 million add-on covenant-lite first-lien term loan B due November 2027 and repricing of its existing $575 million covenant-lite funded term loan B due November 2027 and $75 million covenant-lite delayed-draw term loan due November 2027 at Libor plus 300 bps, the high end of the Libor plus 275 bps to 300 bps talk, according to a market source.

As before, the term loan debt has a 0.75% Libor floor, a par issue price and 101 soft call protection for six months.

Earlier in syndication, pricing on the add-on term loan was cut from Libor plus 375 bps and the issue price was set at the tight end of the 99.75 to par talk, the repricing was added, and the call protection was revised from through May 18.

Morgan Stanley Senior Funding Inc., Goldman Sachs Bank USA, Blackstone Securities Partners LP and Mizuho are leading the deal (B2/B-).

Precision hits secondary

Precision Medicine Group’s add-on term loan and repriced loans freed to trade in the afternoon, with levels quoted at par ¼ bid, par 5/8 offered, a trader added.

Proceeds from the add-on term loan will be used to repay revolver drawings incurred in conjunction with an acquisition, fund cash to the balance sheet and pay related transaction fees and expenses, and the repricing will take the existing term loans down from Libor plus 375 bps with a 0.75% Libor floor.

The ticking fee on the delayed-draw term loan is remaining at 3.75%.

Closing is expected during the week of Feb. 15, the source added.

Precision Medicine is a specialized health care services company that provides product development and commercialization support for pharmaceutical and life sciences businesses.

Wheel Pros firms, breaks

Wheel Pros set the original issue discount on its fungible $200 million incremental first-lien term loan (B-) due November 2027 at 99.5, the tight end of the 99 to 99.5 talk, according to a market source.

Like the existing term loan, the incremental term loan is priced at Libor plus 525 bps with a 1% Libor floor.

The incremental term loan broke for trading on Friday, with levels quoted at 99 7/8 bid, par 3/8 offered, another source added.

UBS Investment Bank and Jefferies LLC are leading the deal that will be used to repay a second-lien term loan.

Wheel Pros, a Clearlake Capital portfolio company, is a Denver-based distributor of proprietary branded wheels and performance tires.

GrafTech updated, trades

GrafTech finalized pricing on its $794 million term loan B (Ba3/BB) due 2025 at Libor plus 300 bps points, the low end of the Libor plus 300 bps to 325 bps talk, and left the 0.5% Libor floor, par issue price and 101 soft call protection for six months unchanged a market source said.

The term loan freed up during the day, with levels quoted at par ¼ bid, par ¾ offered, another source added.

J.P. Morgan Securities LLC is leading the deal that will be used to reprice an existing term loan down from Libor plus 350 bps with a 1% Libor floor following a $150 million paydown of the debt to $794 million with cash on hand.

GrafTech is a Brooklyn Heights, Ohio-based manufacturer of graphite electrodes and petroleum coke.

Gainwell sets spread, breaks

Gainwell Technologies firmed pricing on its fungible $1.827 billion incremental first-lien term loan (B2//BB-) at Libor plus 400 bps, the low end of the Libor plus 400 bps to 425 bps talk, according to a market source.

The incremental term loan still has a 0.75% Libor floor and an original issue discount of 98.56.

On Friday, the incremental term loan began trading, with levels quoted at 99¼ bid, 99¾ offered, another source added.

J.P. Morgan Securities LLC is leading the deal that will be used to help fund the acquisition of HMS’ capabilities focused on the Medicaid market, including solutions delivered to states and managed care organizations.

Closing is expected in the first half of this year, subject to the approval of HMS shareholders and the satisfaction of customary conditions, including regulatory approvals.

The company’s existing first-lien term loan is currently priced at Libor plus 400 bps with a 0.75% Libor floor.

Gainwell is a provider of solutions to the administration and operations of health and human services programs.

Dell tops par

Dell Technologies’ $3.143 billion covenant-lite first-lien term loan (Baa3/BBB-/BBB-) due September 2025 also emerged in the secondary market, with levels quoted at par ¼ bid, par ½ offered, a market source remarked.

Pricing on the term loan is Libor plus 175 bps with a 0.25% Libor floor and it was issued at par. The loan has 101 soft call protection for six months.

During syndication, the Libor floor on the term loan was reduced from 0.5%.

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to reprice an existing term loan down from Libor plus 200 bps with a 0.75% Libor floor.

Dell Technologies is a Round Rock, Tex.-based technology company.

Cotiviti frees up

Cotiviti’s fungible $550 million add-on first-lien term loan (B2/B+/BB-) and repriced $3.143 billion first-lien term loan began trading as well, with levels quoted at par ¼ bid, par ¾ offered, a market source said.

The first-lien term loan debt is priced at Libor plus 400 bps with a 0% Libor floor and was issued at par. The debt has 101 soft call protection for six months.

During syndication, pricing on the add-on term loan was flexed from Libor plus 450 bps and the issue price was revised from talk in the range of 99 to 99.5, the repricing of the existing term loan from Libor plus 450 bps was added to the transaction, and then pricing on all of the first-lien term debt was cut to Libor plus 400 bps from Libor plus 425 bps.

The company is also getting a $325 million privately placed second-lien term loan, which was upsized from $275 million as its preferred equity was downsized to $100 million from $150 million. Pricing on the second-lien term loan is Libor plus 700 bps.

Cotiviti funding acquisition

Proceeds from Cotiviti’s add-on term loan, second-lien term loan and equity will be used to finance the acquisition of HMS’ capabilities focused on the commercial, Medicare and federal markets.

J.P. Morgan Securities LLC is leading the bank debt.

Closing is expected in the first half of this year, subject to the approval of HMS shareholders and the satisfaction of customary conditions, including regulatory approvals.

Cotiviti is a South Jordan, Utah-based health care analytics company.

DigiCert reworked

Back in the primary market, DigiCert lifted its fungible incremental first-lien term loan (B2/B-/BB-) due October 2026 to $427 million from $337 million and tightened the issue price to par from talk in the range of 99.5 to 99.75, according to a market source.

As before, the incremental first-lien term loan is priced at Libor plus 400 bps with a 0% Libor floor, in line with the existing first-lien term loan, and has 101 soft call protection for six months.

Regarding the second-lien debt, the company scaled back its fungible incremental second-lien term loan to $40 million from $130 million and is now offering a $475 million eight-year second-lien term loan to the market that would refinance its existing $475 million second-lien term loan due October 2027, the source said. Pro forma for the transaction, the second-lien term loan (Caa2/CCC/CCC+) totals $515 million.

The maturity on the incremental second-lien term loan was changed to eight years from October 2027.

DigiCert second-lien talk

Price talk on DigiCert’s entire second-lien term loan is Libor plus 700 bps with a 0% Libor floor and an original issue discount of 99.5 to 99.75, the source continued. By comparison, incremental second-lien term loan was previously talked at Libor plus 800 bps with a 0% Libor floor, which is where the existing second-lien term loan is currently priced, and the original issue discount was talked at 99.5.

Also, all of the second-lien term loan debt is getting call protection of 102 in year one and 101 in year two, revised from call protection of 101 through October.

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

Credit Suisse Securities (USA) LLC is the left lead on the deal.

The incremental term loan debt will be used to fund a shareholder distribution.

DigiCert is a Lehi, Utah-based provider of digital certificates, certificate management solutions and public-key infrastructure solutions.

Thryv floats changes

Thryv widened the original issue discount on its $700 million five-year term loan B (B3/B) to 97 from 98, revised the call protection to a soft call of 102 in year one and 101 in year two from 101 for one year, and increased amortization to 10% per annum from 7.5%, according to a market source.

Pricing on the term loan remained at Libor plus 850 bps with a 1% Libor floor.

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

Wells Fargo Securities LLC is leading the deal that will be used to refinance existing debt, fund the acquisition of Sensis Holding Ltd., a provider of marketing solutions serving small- to medium-sized businesses in Australia, and pay related transaction fees and expenses.

Thryv is a Dallas-based provider of print and digital marketing solutions and Software as a Service end-to-end customer experience tools to small- to medium-sized businesses.

Compassus sets terms

Compassus finalized pricing on its $150 million incremental term loan (B2) and repricing of its existing $400 million term loan at Libor plus 425 bps, the low end of the Libor plus 425 bps to 450 bps talk, and set the original issue discount on the incremental loan at 99.75, the tight end of the revised 99.5 to 99.75 talk and tighter than initial talk of 99.5, a market source said.

The term loan debt still has a 0.75% Libor floor and the repricing still has a par issue price.

Earlier in syndication, pricing on the incremental term loan was cut from Libor plus 500 bps, the Libor floor was revised from 1% and the repricing of the existing term loan down from Libor plus 500 bps with a 1% Libor floor was added to the transaction.

BofA Securities Inc. is leading the deal.

The incremental term loan will be used to refinance existing notes due 2028, to fund a dividend and/or acquisitions and to pay related fees and expenses.

Compassus is a Nashville-based post-acute care company.

American Trailer accelerated

American Trailer Works moved up the commitment deadline for its $750 million seven-year first-lien term loan (B3/B) to 5 p.m. ET on Tuesday from noon ET on Wednesday, a market source remarked.

Talk on the term loan is Libor plus 450 bps to 475 bps with a 0.75% Libor floor and an original issue discount of 99.

Goldman Sachs Bank USA, Barclays and Truist are leading the deal that will be used to refinance existing senior secured notes, add cash to the balance sheet and pay related fees and expenses.

Bain Capital is the sponsor.

American Trailer Works is Richardson, Tex.-based manufacturer and distributor of professional grade trailers, consumer grade trailers, truck equipment and retail parts.

Hillman on deck

Hillman Group scheduled a lender call for 1:30 p.m. ET on Tuesday to launch $1.435 billion of credit facilities, according to a market source.

The facilities consist of a $250 million five-year ABL revolver, an $835 million seven-year first-lien term loan B-1, a $150 million seven-year first-lien term loan B-2 and a $200 million first-lien delayed-draw term loan with availability for 24 months, the source said. All three term loan tranches will be allocated as a strip.

Jefferies LLC and Barclays are leading the deal that will be used for the merger with Landcadia Holdings III Inc., a publicly traded special purpose acquisition company, that implies an enterprise valuation for Hillman of $2.642 billion.

Closing is expected in the second quarter, subject to approval of the stockholders of Landcadia III and of Hillman and other customary conditions.

Hillman is a Cincinnati-based distributor of hardware and home improvement products, personal protective equipment and robotic kiosk technologies.

AHP joins calendar

AHP Health Partners set a lender call for 10:30 a.m. ET on Tuesday to launch a $797 million first-lien term loan B due June 30, 2025 talked at Libor plus 375 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, a market source said.

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

Barclays is the left lead on the deal that will be used to reprice an existing term loan B down from Libor plus 450 bps with a 1% Libor floor.

AHP Health is a Nashville, Tenn.-based provider of comprehensive, cost-effective healthcare and related services.

Array readies deal

Array Technologies plans to hold a lender call at noon ET on Tuesday to launch a $460 million first-lien term loan B due October 2027 talked at Libor plus 325 bps to 350 bps with a 0.75% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Commitments are due at noon ET on Feb. 19, the source added.

Goldman Sachs Bank USA is the left lead on the deal that will be used to reprice an existing term loan B down from Libor plus 400 bps with a 1% Libor floor.

Lenders will be repaid at the 101 call premium that applies to the existing term loan B.

Array Technologies is an Albuquerque-based designer and manufacturer of solar tracking systems.

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