Radiology Partners, Netsmart break; Charter NEX, BGIS, Twin River, Midcoast tweak deals

By Sara Rosenberg

New York, May 2 – Radiology Partners Inc. modified the original issue discount on its incremental first-lien term loan B, and then the debt emerged in the secondary market on Thursday, and Netsmart Inc.’s add-on term loan freed up too.

In more happenings, Charter NEX US Inc. increased the size of its incremental first-lien term loan, lowered the spread and tightened the issue price, and BGIS (Brookfield Global Integrated Solutions) reduced pricing on its first-lien term loan and adjusted the original issue discount.

Additionally, Twin River Management Group Inc. revised the spread and original issue discount on its term loan B, and AL Midcoast Holdings LLC changed the issue price on its incremental first-lien term loan.

Furthermore, Tamko Building Products Inc. and API Technologies Corp. moved up the commitment deadlines for their first-lien term loans B, and Stats LLC emerged with new deal plans.

Radiology tweaked, trades

Radiology Partners adjusted the original issue discount on its $240 million incremental first-lien term loan B (B) to 99.5 from 99, a market source remarked.

As before, the incremental first-lien term loan is priced at Libor plus 475 basis points with a 0% Libor floor, and has 101 soft call protection until Aug. 12, 2019.

Recommitments were due at noon ET on Thursday and, later in the session, the new debt freed to trade, with levels quoted at 99¾ bid, 100½ offered, a trader added.

Barclays, Deutsche Bank Securities Inc., Fifth Third Bank and Golub are leading the debt that will be used with a $120 million privately placed incremental second-lien term loan (CCC+) to fund acquisitions currently under letters of intent.

New Enterprise Associates is the sponsor.

Radiology Partners is an El Segundo, Calif.-based radiology physician practice management company.

Netsmart frees up

Netsmart’s fungible $48 million add-on covenant-lite first-lien term loan (B2/B-) broke for trading, with levels quoted at 99 3/8 bid, par offered, according to a market source.

Pricing on the add-on first-lien term loan is Libor plus 375 bps with a 1% Libor floor, which matches existing first-lien term loan pricing. The add-on debt was sold at an original issue discount of 99.375.

Golub Capital is leading the deal that will be used for an acquisition.

GI Partners and TA Associates are the sponsors.

Netsmart is an Overland Park, Kan.-based IT company focused on health and human services.

Charter NEX updated

Charter NEX raised its non-fungible incremental first-lien term loan due May 16, 2024 to $675 million from $660 million, cut pricing to Libor plus 350 bps from Libor plus 375 bps and changed the original issue discount to 99.5 from 99, a market source said.

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

The company is also getting a $25 million incremental revolver due May 16, 2022.

Recommitments were due at noon ET on Thursday, the source added.

Jefferies LLC and Nomura are leading the deal that will be used with $35 million of privately placed notes, downsized from $50 million with the term loan upsizing, to fund the merger of Charter NEX and Next Generation Films.

Leonard Green and Oak Hill are the sponsors.

Charter NEX is a manufacturer of highly engineered specialty films, focused on the stable food and medical end-markets.

BGIS modifies loan

BGIS trimmed pricing on its $455 million seven-year senior secured covenant-lite first-lien term loan (B1/B) to Libor plus 375 bps from talk in the range of Libor plus 400 bps to 425 bps and moved the original issue discount to 99.75 from 99, a market source remarked.

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

The term loan has no MFN sunset, and a prepayment requirement that includes 100% of asset sale proceeds, with no step-downs, subject to de-minimis thresholds and reinvestment rights within 15 months plus 6 months. And, the company is required to provide quarterly financials with management discussion and analysis and lender call, the source continued.

Recommitments are due at noon ET on Friday, the source added. Allocations are anticipated thereafter.

Citigroup Global Markets Inc., Morgan Stanley Senior Funding Inc., BMO Capital Markets, TD Securities (USA) LLC and MUFG are leading the debt that will be used to help fund the buyout of the company by CCMP Capital Advisors LP from Brookfield Business Partners for about $1 billion.

Closing is expected during the week of May 27, subject to customary conditions.

BGIS is an integrated facilities management company.

Twin River flexes

Twin River Management Group reduced pricing on its $350 million term loan B to Libor plus 275 bps from Libor plus 300 bps and tightened the original issue discount to 99.5 from 99, while leaving the 0% Libor floor and 101 soft call protection for six months intact, a market source said.

The company’s $600 million of credit facilities (Ba2/BB) also include a $250 million revolver.

Recommitments were due at 5 p.m. ET on Thursday, the source added.

Citizens Bank and Credit Suisse Securities (USA) LLC are leading the credit facilities that will be used with $350 million of bonds to refinance existing debt and for general corporate purposes.

Twin River is a Lincoln, R.I.-based owner and operator of casino resorts.

Midcoast revises price

AL Midcoast Holdings modified the issue price on its fungible $50 million incremental first-lien term loan due August 2025 to par from 99.75, according to a market source.

The incremental term loan is priced at Libor plus 550 bps with a 0% Libor floor, in line with the existing first-lien term loan.

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

Credit Suisse Securities (USA) is leading the deal that will be used to refinance revolver borrowings.

Midcoast is a provider of natural gas and natural gas liquids services.

Tamko accelerated

Also in the primary market, Tamko Building Products moved up the commitment deadline for its $600 million seven-year term loan B (B2/BB-) to noon ET on Friday from 5 p.m. ET on Tuesday, a market source remarked.

Talk on the term loan B is Libor plus 350 bps to 375 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance existing debt and fund a redemption of equity interests.

Carlyle Global Partners is becoming a minority investor in the company.

Tamko is a Joplin, Mo.-based manufacturer of residential roofing products, decking and railing products, waterproofing, cements and coatings.

API changes deadline

API Technologies accelerated the commitment deadline for its $245 million first-lien term loan B (B2/B) to 5 p.m. ET on Friday from 5 p.m. ET on Monday as a result of strong demand, a market source said.

Talk on the first-lien term loan is Libor plus 425 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

The company’s $435 million of credit facilities also include a $50 million revolver (B2/B) that will be undrawn at close, a $90 million privately placed second-lien term loan and a $50 million privately placed second-lien delayed-draw term loan, which will be unfunded at close.

RBC Capital Markets, UBS Investment Bank and Antares Capital are leading the deal that will help fund the buyout of the company by AEA Investors from J.F. Lehman & Co.

Closing is expected on May 9.

API is a Marlborough, Mass.-based provider of high-performance RF, microwave, millimeterwave, power and security solutions for defense, aviation, communications and other commercial and industrial end markets.

Stats joins calendar

Stats set a lender presentation for noon ET on Monday to launch a $400 million first-lien term loan, according to a market source.

The company is also getting a £50 million revolver and a $140 million privately placed second-lien term loan.

Morgan Stanley Senior Funding, Bank of America Merrill Lynch, HSBC Bank USA, Mizuho Bank, Barclays and Macquarie Capital (USA) Inc. are leading the deal that will be used to fund the acquisition of Perform, a London-based sports content company, from DAZN Group and to pay fees and expenses related to the transaction.

The acquisition was enabled by an investment from Vista Equity Partners.

Closing is expected in the second half of this year, subject to customary conditions and regulatory approvals.

Stats is a Chicago-based sports data, technology, statistics and content company.

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