Vitech Systems Group, Cypress Performance break; Curium Pharma, Hexion revise deals

By Sara Rosenberg

New York, June 26 – Vitech Systems Group upsized its term loan B and revolver, set the spread on its term loan B at the low end of guidance and added step-downs before freeing up for trading on Wednesday, and Cypress Performance Group’s (Encapsys LLC) incremental first-lien term loan emerged in the secondary market as well.

In more happenings, Curium Pharma shifted some funds between its U.S. and euro term loans and updated pricing, and Hexion Inc. upsized its U.S term loan as the decision was made to downsize its euro term loan.

Additionally, CHG Healthcare Services Inc. approached lenders with an incremental first-lien term loan, and Culligan Holding Inc. (AI Aqua Merger Sub Inc.) emerged with new deal plans.

Vitech updated, trades

Vitech Systems Group raised its seven-year term loan B to $100.5 million from $100 million, finalized pricing at Libor plus 400 basis points, the tight end of the Libor plus 400 bps to 425 bps talk, and added two 25 bps pricing step-downs, according to a market source.

Also, the company upsized its revolver to $30 million from $25 million, the source said.

As before, the term loan B has a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

On Wednesday afternoon, the bank debt broke for trading, with the term loan B quoted at 99¼ bid, par ¼ offered, a trader added.

RBC Capital Markets is leading the deal that will be used to help fund the buyout of the company by CVC Capital Partners.

Closing is expected this summer.

Vitech is a New York-based provider of cloud-based financial administration solutions.

Cypress hits secondary

Cypress Performance Group’s fungible $134 million incremental covenant-lite first-lien term loan (B2/B) due November 2024 began trading, with levels quoted at 99¼ bid, 99¾ offered, a market source remarked.

The incremental term loan is priced at Libor plus 350 bps with a 25 bps step-down at B1/B+ ratings and a 1% Libor floor. The debt was sold at an original issue discount of 99.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Jefferies LLC and M&T Bank are the leads on the deal that will be used to refinance an existing second-lien term loan.

With this transaction, pricing on the company’s existing first-lien term loan is increasing by 25 bps from Libor plus 325 bps to match the incremental term loan pricing.

Cypress Performance is a Baltimore-based company that offers a portfolio of advanced materials and diversified products.

Curium restructures

Back in the primary market, Curium trimmed its U.S. dollar seven-year term loan (B2//BB-) to around $495 million (€435 million equivalent) from around $550 million (€485 million equivalent), set pricing at Libor plus 400 bps, the low end of the Libor plus 400 bps to 425 bps talk, added a 25 bps step-down based on leverage, and changed the original issue discount to 99.25 from 99, a market source said.

As for the euro seven-year term loan (B2//BB-), it was lifted to €300 million from €250 million, price talk was revised to a range of Euribor plus 375 bps to 400 bps from a range of Euribor plus 400 bps to 425 bps and then firmed at Euribor plus 375 bps, two 25 bps step-downs were added based on leverage and the issue price was tightened to par from 99.5, the source continued.

Additionally, changes were made to the incremental facility, excess cash flow sweep, restricted payments, asset sales and financial reporting.

Both term loans continue to include a 0% floor and 101 soft call protection for six months.

Allocations are targeted for Thursday, the source added.

JPMorgan is the physical bookrunner on the U.S. loan, and Barclays and JPMorgan are the physical bookrunners on the euro loan. Citigroup is a bookrunner on the euro loan as well.

Curium, a Paris-based nuclear medicine company, will use the new term loans to refinance existing debt.

Hexion retranches

Hexion increased its U.S. seven-year term loan (Ba3/BB-) to $725 million from $600 million and decreased its euro seven-year term loan (Ba3/BB-) to €425 million from about €540 million, according to a market source.

The U.S. term loan is priced at Libor plus 350 bps and the euro term loan is priced at Euribor plus 400 bps. Both loans have a 0% floor, an original issue discount of 99 and 101 soft call protection for one year.

Previously in syndication, pricing on the U.S. term loan firmed at the low end of the Libor plus 350 bps to 375 bps talk and pricing on the euro term loan finalized at the high end of the Euribor plus 375 bps to 400 bps talk.

Commitments were due at the end of the day on Wednesday and allocations are expected on Thursday morning, the source added.

J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Citigroup Global Markets Inc., Barclays and Deutsche Bank Securities Inc. are leading the deal that will be used to help fund the company’s exit from bankruptcy, fund plan distributions and repay debtor-in-possession facilities.

The Columbus, Ohio-based chemical company is also getting $350 million ABL revolver.

Closing is targeted for Monday.

CHG seeks incremental

CHG Healthcare Services launched in the morning a fungible $50 million incremental first-lien term loan due June 7, 2023 with original issue discount talk of 99.75, according to a market source.

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

Commitments were due at 3 p.m. ET on Wednesday, the source said.

Jefferies LLC is leading the deal that will be used for general corporate purposes.

CHG is a Salt Lake City-based health care staffing firm.

Culligan joins calendar

Culligan set a lender call for 11 a.m. ET on Thursday to launch a $70 million covenant-lite add-on term loan B due Dec. 13, 2023 talked at Libor plus 425 bps to 450 bps with a 1% Libor floor, an original issue discount of 97.5 to 98 and 101 soft call protection for six months, a market source remarked.

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

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to repay revolver borrowings, fund working capital and add cash to the balance sheet.

Culligan is a Rosemont, Ill.-based provider of water treatment products and services.

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