United Pacific, Ahead DB, Insulet, Mitratech break; PQ, Cubic, Alliant updates surface

By Sara Rosenberg

New York, April 29 – United Pacific firmed the spread on its term loan B debt and modified the Libor floor before freeing up for trading on Thursday, and deals from Ahead DB Holdings LLC, Insulet Corp. and Mitratech made their way into the secondary market as well.

In more happenings, PQ Performance Chemicals lowered pricing on its first-lien term loan, removed one step-down and tightened the original issue discount, Cubic Corp. set the spread on its term loans at the high side of talk., and Alliant Holdings upsized its add-on first-lien term loan B-3 and set the issue price at the tight end of guidance.

Also, Therapy Brands Holdings LLC, Cordis (Bayou Intermediate II LLC), Socotec, ANI Pharmaceuticals Inc. and SmartBear (AQA Acquisition Holdings Inc.) released price talk with launch, and HelpSystems joined the near-term primary calendar.

United Pacific tweaked, trades

United Pacific set pricing on its fungible $105 million add-on term loan B (B2/B) due November 2026 and repricing of its existing $445 million term loan B (B2/B) due November 2026 at Libor plus 375 basis points, the high end of the Libor plus 350 bps to 375 bps talk, and changed the Libor floor to 0.75% from 0.5%, a market source remarked.

As before, the add-on term loan has an original issue discount of 99, the repricing has a par issue price, all of the term loan debt has 101 soft call protection for six months, and existing lenders who rolled are getting a 25 bps amendment fee.

On Thursday, the term loan debt began trading, with levels quoted at par bid, par ½ offered, another source added.

Goldman Sachs Bank USA is leading the deal.

The add-on term loan will be used to fund a dividend and the repricing will take the existing term loan down from Libor plus 400 bps with a 1% Libor floor.

United Pacific is a Long Beach, Calif.-based operator of gas stations and convenience stores.

Ahead hits secondary

Ahead DB Holdings’ $630.7 million first-lien term loan (B1/B+) due Oct. 16, 2027 broke for trading, with levels quoted at par 1/8 bid, par 3/8 offered, according to a trader.

Pricing on the term loan is Libor plus 375 bps with a 0.75% Libor floor and it was issued at par. The debt has 101 soft call protection for six months.

During syndication, pricing on the loan was cut from talk in the range of Libor plus 400 bps to 425 bps.

RBC Capital Markets, Barclays, Deutsche Bank Securities Inc., KKR Capital Markets, Macquarie Capital (USA) Inc., Truist, Regions Bank, Credit Suisse Securities (USA) LLC, TD Securities (USA) LLC and PNC Bank are leading the deal that will be used to reprice an existing first-lien term loan down from Libor plus 500 bps with a 1% Libor floor, which will result in lenders being paid out at the existing 101 soft call premium.

The term loan is being paid down from $785 million with a portion of the proceeds from a recent $400 million senior notes offering

Centerbridge Partners and Berkshire Partners are the sponsors.

Ahead DB is a Chicago-based IT solutions provider of enterprise hardware and software.

Insulet frees up

Insulet’s $500 million seven-year senior secured covenant-lite first-lien term loan B (Ba3/B+) also began trading, with levels quoted at par 1/8 bid, par 5/8 offered, a trader said.

Pricing on the term loan is Libor plus 325 bps with a 0.5% Libor floor and it was sold at an original issue discount of 99.75. The term loan has 101 soft call protection for six months.

During syndication, pricing on the term loan was lowered from talk in the range of Libor plus 350 bps to 375 bps, and the discount was tightened from revised talk of 99.5 and initial talk in the range of 99 to 99.5.

The company is also getting a $60 million senior secured revolver with pricing that ranges from Libor plus 275 bps to 325 bps based on total net leverage.

Morgan Stanley Senior Funding Inc. and Citigroup Global Markets Inc. are leading the deal that will be used for general corporate purposes, including to retire debt and/or to fund investments.

Closing is expected during the week of May 3.

Insulet is an Acton, Mass.-based medical device company dedicated to simplifying life for people with diabetes and other conditions.

Mitratech starts trading

Mitratech’s bank debt made its way into the secondary market too, with the $450 million seven-year covenant-lite first-lien term loan and $75 million privately placed covenant-lite delayed-draw first-lien term loan quoted at 99¾ bid, par ½ offered, and the $185 million eight-year covenant-lite second-lien term loan and $30 million privately placed delayed-draw second-lien term loan quoted at 101 bid, according to a market source.

Pricing on the first-lien term loan debt (B2/B-) is Libor plus 375 bps with a 25 bps leverage-based step-down and a 0.75% Libor floor. The debt was sold at an original issue discount of 99.5 and has 101 soft call for six months.

The second-lien term loan debt (Caa2/CCC) is priced at Libor plus 675 bps with a 0.75% Libor floor and was sold at a discount of 99.5. This tranche has hard call protection of 102 in year one and 101 in year two.

The company’s $780 million of credit facilities also include a $40 million five-year revolver, a and a.

During syndication, the first-lien term loan was upsized from $445 million and pricing firmed at the low end of the Libor plus 375 bps to 400 bps talk, the discount on the second-lien term loan was revised from 99, and the delayed-draw second-lien term loan was added to the structure.

Mitratech leads

Golub Capital, UBS Investment Bank, Barclays and Deutsche Bank Securities Inc. are leading Mitratech’s credit facilities.

Proceeds will be used to help fund the buyout of the company by Ontario Teachers’ Pension Plan Board. Current investor Hg Capital is rolling a portion of its position in the company as part of the transaction. TA Associates is selling its minority investment in the business.

Closing is subject to customary conditions.

Mitratech is an Austin, Tex.-based provider of legal, compliance and operational risk software solutions for law firms and corporate in-house legal departments.

PQ changes emerge

Back in the primary market, PQ Performance Chemicals trimmed pricing on its $750 million seven-year first-lien term loan (B1/B+) to Libor plus 350 bps from talk in the range of Libor plus 375 bps to 400 bps and revised the original issue discount to 99.5 from 99, a market source remarked.

Additionally, the term loan now has one 25 bps step-down at 0.5x inside closing date first-lien net leverage, modified from two 25 bps step-downs at 0.5x and 1x inside closing date first-lien net leverage, the source continued.

The term loan still has a 0.75% Libor floor, 101 soft call protection for six months, and a ticking fee of half the margin from days 46 to 90 and the full margin thereafter.

Recommitments were due at 5 p.m. ET on Thursday and allocations are expected on Friday morning, the source added.

PQ being acquired

PQ Performance Chemicals will use the term loan with equity to fund its $1.1 billion acquisition by a partnership established by Koch Minerals & Trading LLC and Cerberus Capital Management LP from PQ Group Holdings Inc.

Goldman Sachs Bank USA, Barclays, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., RBC Capital Markets, BMO Capital Markets, KeyBanc Capital Markets, Macquarie Capital (USA) Inc. and BNP Paribas Securities Corp. are leading the debt.

Closing is expected this year.

PQ Performance Chemicals is a producer of sodium silicates, specialty silicas and zeolites and supports a broad range of end uses, including personal and industrial cleaning products, fuel efficient tires, surface coatings, and food and beverage products.

Cubic finalizes spread

Cubic set pricing on its $1.475 billion seven-year first-lien term loan B (B3/B/BB) and $300 million seven-year first-lien term loan C (Ba3/B+) at Libor plus 425 bps, the high end of the Libor plus 400 bps to 425 bps talk, and made some changes to documentation, according to a market source.

As before, the senior secured term loan debt, which will trade as a strip, has a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

Recommitments were due on Thursday, the source added.

Barclays, Credit Suisse Securities (USA) LLC, BMO Capital Markets, KKR Capital Markets, Mizuho, RBC Capital Markets and Truist Securities Inc. are leading the deal that will be used to help fund the buyout of the company by Veritas Capital and Evergreen Coast Capital Corp. for $70.00 per share in cash. The all-cash transaction is valued at $2.8 billion, including the assumption of debt.

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

Cubic is a San Diego-based provider of integrated solutions that increase situational understanding for transportation, defense C4ISR and training customers.

Alliant revised

Alliant Holdings increased its fungible add-on first-lien term loan B-3 to $875 million from $800 million and firmed the original issue discount at 99.5, the tight end of the 99.25 to 99.5 talk, a market source said.

The add-on term loan is priced at Libor plus 375 bps with a 0.5% Libor floor and has 101 soft call protection until November 2021.

JPMorgan Chase Bank is leading the deal that will be used to fund the acquisition of Confie, a Huntington Beach, Calif.-based personal lines insurance distributor, from Abry Partners.

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

Alliant is a Newport Beach, Calif.-based specialty insurance brokerage firm.

Therapy proposed terms

Therapy Brands held its bank meeting on Thursday morning and announced price talk on its first-and second-lien term loans, according to a market source.

Talk on the $235 million seven-year first-lien term loan (B2/B-) and $60 million delayed-draw first-lien term loan (B2/B-) with a 24-month commitment period, which are being sold as a strip, is Libor plus 400 bps to 425 bps with a 25 bps step-down at 4.55x first-lien leverage, a 0.75% Libor floor and an original issue discount of 99.5, the source said.

The first-lien term loan has 101 soft call protection for six months, and ticking fees on the delayed-draw first-lien term loan are half the margin from days 61 to 120 and the full margin thereafter.

Price talk on the $85 million eight-year second-lien term loan (Caa2/CCC) and $20 million delayed-draw second-lien term loan (Caa2/CCC) with a 24-month commitment period, which are being sold as a strip, is Libor plus 675 bps with a 0.75% Libor floor and a discount of 99, the source continued.

The second-lien term loan has soft call protection of 102 in year one and 101 in year two, and the delayed-draw second-lien term loan has a ticking fee of 75 bps starting on day 61.

Therapy getting revolver

In addition to the first-and second-lien term loan, Therapy Brands’ $440 million of senior secured credit facilities include a $40 million five-year revolver (B2/B-).

Commitments are due at noon ET on May 11, the source added.

Jefferies LLC, KKR Capital Markets, Societe Generale and Stone Point are leading the deal, with Jefferies the left lead on the first-lien and KKR the left lead on the second-lien.

The new debt will be used to help fund the buyout of the company by KKR from Lightyear Capital LLC, Oak HC/FT and Greater Sum Ventures.

Therapy Brands is a Birmingham, Ala.-based provider of integrated practice management software and payment solutions to the mental health, behavioral health and rehabilitation markets.

Cordis guidance

Cordis launched on its call its $350 million seven-year covenant-lite first-lien term loan B (B2/B-/BB+) at talk of Libor plus 450 bps to 475 bps with a 0.75% Libor floor and an original issue discount of 99, a market source remarked.

The term loan has 101 soft call protection for six months.

Commitments are due at 5 p.m. ET on May 12.

Deutsche Bank Securities Inc., UBS Investment Bank, Credit Suisse Securities (USA) LLC and Golub Capital are leading the deal that will be used to help fund the buyout of the company by Hellman & Friedman from Cardinal Health for about $1 billion.

Closing is expected in Cardinal Health’s fiscal year 2022, subject to customary conditions and regulatory clearances.

Cordis is a developer and manufacturer of interventional vascular technology.

Socotec launches

Socotec disclosed price talk on its $300 million term loan B (B2/B) and €550 million term loan B (B2/B) in connection with its morning lender call, according to a market source.

Talk on the U.S. term loan is Libor plus 425 bps to 450 bps with a 0.75% Libor floor and an original issue discount of 99.5, and talk on the euro term loan is Euribor plus 375 bps to 400 bps with a 0% floor and a discount of 99.5, the source said.

Commitments are due at 10 a.m. ET on May 7.

JPMorgan Chase Bank is the left lead on the U.S. term loan, and BNP Paribas is the left lead on the euro term loan. BNP is the administrative agent.

The loans will be used to refinance existing debt and fund a dividend.

Socotec is a France-based provider of testing, inspection and compliance services, offering comprehensive solutions for the infrastructure and environment & safety sectors.

ANI holds call

ANI Pharmaceuticals held its call in the afternoon, launching its $300 million six-year term loan B at talk of Libor plus 525 bps to 550 bps with a 0.75% Libor floor, an original issue discount of 98.5 and 101 soft call protection for six months, a market source remarked.

The company’s $340 million of credit facilities (B2/B+) also include a $40 million five-year revolver.

Commitments are due on May 13, the source added.

Truist Securities, Regions Capital Markets and Huntington Securities are leading the deal that will be used with a $25 million PIPE investment to refinance existing ANI debt and fund the acquisition of Novitium Pharma, an East Windsor, N.J.-based pharmaceutical company, for $89.5 million in cash and $74 million in equity, plus two potential future cash earn-outs of up to $46.5 million.

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

ANI is a Baudette, Minn.-based specialty pharmaceutical company developing, manufacturing, and marketing branded and generic prescription pharmaceuticals.

SmartBear OID talk

SmartBear came out with original issue discount talk of 99.5 to 99.75 on its fungible $70 million covenant-lite incremental first-lien term loan (B2/B-) due March 2, 2028 a few hours before its 1 p.m. ET lender call to launch the transaction took place, a market source said.

Like the existing first-lien term loan, pricing on the incremental term loan is Libor plus 425 bps with a 0.5% Libor floor and the debt has 101 soft call protection through Sept. 2, 2021.

Commitments are due at noon ET on May 6.

Credit Suisse Securities (USA) LLC and Antares Capital are leading the deal that will be used with a $54 million privately placed incremental second-lien term loan to fund the acquisition of Bugsnag.

SmartBear is a Somerville, Mass.-based provider of software development and quality tools. Bugsnag is a San Francisco-based provider of application stability management.

HelpSystems on deck

HelpSystems set a lender call for 10:30 a.m. ET on Monday to launch $300 million of incremental term loans, according to a market source.

The debt is split between a fungible $170 million incremental first-lien term loan and a non-fungible $130 million incremental second-lien term loan, the source said.

Golub Capital is leading the deal.

HelpSystems, a portfolio company of TA Associates, HGGC and Charlesbank, is an Eden Prairie, Minn.-based provider of IT operations management and monitoring, cybersecurity and business intelligence software.

Idera allocates

In other news, Idera Inc. allocated its fungible $145 million incremental first-lien term loan (B2/B-) due March 2028 that is priced at Libor plus 375 bps with a 0.75% Libor floor, in line with the existing term loan, and was sold at an original issue discount of 99. The debt has 101 soft call protection until September 2021.

The company is also getting a fungible $60 million pre-placed incremental second-lien term loan (Caa2/CCC) due March 2029 priced at Libor plus 675 bps with a 0.75% Libor floor, same as the existing second-lien loan. This tranche has 102 hard call protection until March 2022.

Jefferies LLC is leading the deal that will be used to fund an acquisition.

Pro forma for the transaction, the first-lien term loan will total about $1,261,800,000 and the second-lien term loan will total $410 million.

Idera is a Houston-based provider of database, application development and testing software.

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