Lucid Energy frees up; Sirius Computer, Stats, IAA Spinco, Core & Main revisions emerge

By Sara Rosenberg

New York, May 21 – Lucid Energy Group II Borrower LLC increased the size of its term loan B-2 and finalized the original issue discount at the midpoint of guidance, and then the surfaced in the secondary market on Tuesday.

In more happenings, Sirius Computer Solutions Inc. set the spread on its term loan at the low end of talk, added a pricing a step-down and adjusted the issue price, and Stats LLC raised the spread on its first-lien term loan, widened original issue discount guidance and extended the call protection.

Also, IAA Spinco Inc. lowered pricing on its term loan B and revised the issue price, and Core & Main LP tightened the original issue discount on its add-on term loan B.

Furthermore, Victory Capital Holdings Inc., United Planet Fitness Partners (United PF Holdings LLC) and Smart & Final Grocery (Saffron Borrowco LLC) announced price talk with launch.

Lucid tweaked, breaks

Lucid Energy raised its non-fungible term loan B-2 (B2/B/BB-) due Feb. 19, 2025 to $125 million from $100 million and firmed the original issue discount at 95.75, the middle of the 95.25 to 96.25 talk, according to a market source.

As before, the term loan B-2 is priced at Libor plus 300 basis points with a 1% Libor floor and has 101 soft call protection for six months.

The term loan B-2 freed to trade during the session and was quoted at 96 bid, another source added.

Jefferies LLC is leading the deal that will be used for general corporate purposes including the funding of capital expenditures.

Closing is expected this week.

Lucid Energy is a Dallas-based natural gas gathering and processing company operating in the Northern Delaware Basin.

Sirius revised

Sirius Computer firmed pricing on its $750 million seven-year covenant-lite first-lien term loan at Libor plus 425 bps, the low end of the Libor plus 425 bps to 450 bps talk, added a step-down to Libor plus 400 bps at 5 times total net leverage, and moved the original issue discount to 99.75 from 99.5, a market source remarked.

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

The company’s $940 million of credit facilities (Ba3/B) also include a $190 million revolver.

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

Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., UBS Investment Bank, Barclays, Deutsche Bank Securities Inc., Goldman Sachs Bank USA, ING, Macquarie Capital (USA) Inc., MUFG, Natixis, Nomura, RBC Capital Markets and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to help fund the buyout of the company by Clayton, Dubilier & Rice from Kelso & Co.

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

Sirius is a San Antonio-based provider of mission-critical IT infrastructure solutions.

Stats changes surface

Stats lifted pricing on its $400 million seven-year covenant-lite first-lien term loan B (B2/B-) to Libor plus 525 bps from talk in the range of Libor plus 450 bps to 475 bps, modified the original issue discount talk to a range of 97 to 98 from initial talk of 99 and extended the 101 soft call protection to one year from six months, a market source said. The 0% Libor floor was unchanged.

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

The Chicago-based sports data, technology, statistics and content company is also getting a £50 million five-year revolver and a $140 million privately placed second-lien term loan.

Morgan Stanley Senior Funding Inc., 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 of Perform 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.

IAA modifies loan

IAA Spinco trimmed pricing on its $900 million seven-year term loan B (Ba2/BB/BB+) to Libor plus 225 bps from revised talk in the range of Libor plus 250 bps to 275 bps and initial talk of Libor plus 275 bps and tightened the original issue discount to 99.75 from 99, according to a market source.

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

J.P. Morgan Securities is leading the loan that will be used with $400 million of senior notes to pay a dividend to KAR Auction Services in connection with the company’s spinoff from KAR.

IAA Spinco is a Westchester, Ill.-based provider of salvage car auction solutions for total loss, damaged and low-value vehicles.

Core & Main updated

Core & Main changed the original issue discount on its fungible $225 million add-on term loan B (B2) due August 2024 to 99.75 from talk in the range of 99.25 to 99.5, a market source remarked.

The add-on term loan is priced at Libor plus 300 bps with a 25 bps step-down when total net leverage is less than 5.75 times and a 1% Libor floor, in line with pricing on the company’s existing $1.06 billion term loan B.

J.P. Morgan Securities LLC is leading the deal that will be used to fund the acquisition of Long Island Pipe Supply Inc., a provider of fire protection products and fabrication services.

Closing on the acquisition is subject to regulatory approval and other customary conditions.

Core & Main, formerly known as HD Supply Waterworks, is a St. Louis-based distributor of water, sewer and fire protection products.

Victory reveals talk

Also in the primary market, Victory Capital held its bank meeting on Tuesday morning and announced talk on its $1.13 billion seven-year term loan B at Libor plus 350 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

The company’s $1.23 billion of senior secured credit facilities (Ba3/BB-) also include a $100 million five-year revolver.

Commitments are due at 5 p.m. ET on June 5, the source said.

Barclays, RBC Capital Markets and BMO Capital Markets are leading the deal that will be used to fund the acquisition of USAA Asset Management Co. for $850 million plus the opportunity for additional contingent payments based on future business performance.

Closing is expected on July 1, subject to regulatory approval and other customary conditions.

Victory Capital is a Brooklyn, Ohio-based asset management firm. USAA Asset Management is a San Antonio-based investment firm.

United Planet guidance

United Planet Fitness Partners disclosed price talk on its first-and second-lien term loans with its morning bank meeting, a market source said.

Talk on the $465 million seven-year first-lien term loan (B) and $75 million delayed-draw seven-year first-lien term loan (B), which are being sold as a strip, is Libor plus 425 bps to 450 bps with a 0% Libor floor and an original issue discount of 99, and talk on the $110 million eight-year second-lien term loan (CCC+) is Libor plus 825 bps to 850 bps with a 0% Libor floor and a discount of 98.5, the source continued.

The delayed-draw term loan availability is 24 months and the tranche has a ticking fee of half the spread for days 61 to 120 and the full spread thereafter.

Included in the first-lien term loan is 101 soft call protection for six months, and the second-lien term loan has call protection of 102 in year one and 101 in year two.

United Planet leads

Jefferies LLC and Fifth Third are leading United Planet Fitness Partners’ $670 million of credit facilities, which also provide for a $20 million five-year revolver (B).

Commitments are due on June 4, the source added.

The new credit facilities will be used to refinance existing debt and fund club acquisitions.

United Planet Fitness Partners is an Austin, Texas-based operator of Planet Fitness Clubs in the U.S.

Smart & Final launches

Smart & Final Grocery came out with talk of Libor plus 650 bps with a 0% Libor floor, an original issue discount of 97 to 98 and 101 soft call protection for one year on its $380 million seven-year covenant-lite term loan B (B3/B) that launched with a morning bank meeting, according to a market source.

Commitments are due at noon ET on June 5, the source said.

The company’s $530 million of senior secured credit facilities also include a $150 million ABL revolver.

Deutsche Bank Securities Inc., BMO Capital Markets Corp., RBC Capital Markets, Bank of America Merrill Lynch, Barclays, Credit Suisse Securities (USA) LLC and UBS Investment Bank are leading the deal that will be used to help fund the buyout of Smart & Final Stores Inc. by Apollo Global Management LLC.

Closing is expected by the third quarter, subject to more than 50% of the company’s shares being tendered, regulatory approvals and other customary conditions.

Smart & Final Grocery is a Commerce, Calif.-based food retailer operating smaller-box, warehouse-style club stores.

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