DT Midstream, Camping break; Carnival, Insight revised; Maximus, U.S. Concrete accelerated

By Sara Rosenberg

New York, May 25 – DT Midstream Inc. lowered the spread on its term loan B and finalized the original issue discount at the tight end of talk, and Camping World Holdings Inc. set pricing on its term loan B at the low side of guidance, and then both of these deals freed to trade on Tuesday.

Also in the secondary market, Culligan Holding Inc. (AI Aqua Merger Sub Inc.) saw all of its term loan levels shift in trading following news of a buyout by BDT Capital Partners LLC.

In other news, Carnival Corp. trimmed price talk on its U.S. term loan B, set the spread on its euro term loan B at the low end of talk and tightened original issue discounts on both tranches, and Insight Global (IG Investments Holdings LLC) increased the size of its incremental first-lien term loan, reduced pricing and modified the issue price, and added a repricing of its existing first-lien term loan to the mix.

Additionally, Maximus Inc. and U.S. Concrete Inc. moved up the commitment deadlines for their loan transactions, Mission Broadcasting Inc. and System One Holdings LLC announced price talk with launch and Aimbridge Hospitality emerged with repricing plans.

DT flexes, frees up

DT Midstream trimmed pricing on its $1 billion seven-year senior secured term loan B (Baa2/BBB-/BBB-) to Libor plus 200 basis points from talk in the range of Libor plus 225 bps to 250 bps and set the original issue discount at 99.5, the tight end of the 99 to 99.5 talk, according to a market source.

The term loan still has a 0.5% Libor floor and 101 soft call protection for six months.

Commitments were due at noon ET on Tuesday and the term loan B began trading later in the day, with levels quoted at 99 5/8 bid, par ¼ offered, another source added.

Barclays, BofA Securities Inc., Citigroup Global Markets Inc., JPMorgan Chase Bank and Wells Fargo Securities LLC are the lead bookrunners on the deal. CoBank, Fifth Third, Mizuho, MUFG, PNC Capital Markets, Bank of Nova Scotia, TD Securities (USA) LLC, Truist and U.S. Bank are joint bookrunners.

The loan will be used with $2.1 billion of senior notes to make a payment to DTE Energy and to pay related transaction costs, fees and expenses.

DT Midstream is a large-scale platform connecting supply basins to the natural gas demand markets.

Camping updated, trades

Camping World set pricing on its $1.1 billion seven-year term loan B (Ba3/BB-) at Libor plus 250 bps, the low end of the Libor plus 250 bps to 275 bps talk, according to a market source.

The term loan still has a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

In the afternoon, the term loan freed to trade, with levels quoted at 99 1/8 bid, 99 5/8 offered, another source added.

Goldman Sachs Bank USA and JPMorgan Chase Bank are leading the deal that will be used to refinance an existing term loan B due 2023.

The company is also amending its revolving credit facility to increase the revolver capacity and extend the maturity date.

Camping World is a Lincolnshire, Ill.-based retailer of recreational vehicles and related products and services.

Culligan heads to par

Also in trading, Culligan’s term loans all moved to par bid, par ½ offered after the company announced that it is being acquired by BDT Capital, a trader said. Prior to the news, the Libor plus 325 bps priced term debt were quoted at 99¾ bid, par ¼ offered, the Libor plus 375 bps priced term debt was quoted at par ¼ bid, par 5/8 offered and the Libor plus 425 bps priced term debt was quoted at par 1/8 bid, par 5/8 offered.

Culligan is being purchased from Advent International and Centerbridge Partners LP. However, as part of the agreement, Advent will reinvest to acquire a minority stake in the business.

Financial terms of the agreement were not disclosed.

Morgan Stanley & Co. LLC is serving as lead financial advisor to Culligan and Citibank is also serving as a financial advisor. Davis Polk & Wardwell LLP is serving as lead transaction counsel to BDT.

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

Carnival tweaked

Back in the primary market, Carnival lowered price talk on its $1.9 billion senior secured term loan B due June 30, 2025 to a range of Libor plus 300 bps to 325 bps from a range of Libor plus 375 bps to 400 bps, firmed pricing on its €794 million senior secured term loan B due June 30, 2025 at Euribor plus 400 bps, the low end of the Euribor plus 400 bps to 425 bps talk, and revised the original issue discount on both term loans to 99.75 from 99.5, according to a market source.

As before, the U.S. term loan has a 0.75% Libor floor, the euro term loan has a 0% floor and both loans have 101 hard call protection for one year.

Commitments for the U.S. term loan were due at 5 p.m. ET on Tuesday, the source added.

JPMorgan Chase Bank and Barclays are leading the deal, with JPMorgan the left lead on the U.S. loan and Barclays the left lead on the euro loan. JPMorgan is the administrative agent.

Carnival, a Miami-based cruise operator, will use the debt to reprice its existing U.S. term loan down from Libor plus 750 bps with a 1% Libor floor and its existing euro term loan down from Euribor plus 750 bps with a 0% floor.

Insight Global reworked

Insight Global lifted its fungible covenant-lite incremental first-lien term loan (B2/B-) due May 2025 to $600 million from $550 million, cut pricing to Libor plus 375 bps from Libor plus 400 bps and changed the original issue discount to 99.5 from 99.27, a market source remarked.

Also, the Atlanta-based professional services company added a repricing of its existing $1.085 billion covenant-lite first-lien term loan (B2/B-) due May 2025 talked at Libor plus 375 bps with a 1% Libor floor and a 37.5 bps amendment fee, the source continued.

As before, the incremental term loan has a 1% Libor floor and all of the first-lien term loan debt is getting 101 soft call protection for six months.

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

Credit Suisse Securities (USA) LLC, BofA Securities Inc., Truist, Wells Fargo Securities LLC, BMO Capital Markets and Goldman Sachs Bank USA are leading the deal.

The incremental term loan will be used to fund a distribution to shareholders and the repricing will take the existing term loan down from Libor plus 400 bps with a 1% Libor floor.

Maximus moves deadline

Maximus accelerated the commitment deadline for its $400 million seven-year first-lien term loan B to noon ET on Wednesday from 5 p.m. ET on Wednesday, according to a market source.

Talk on the term loan B is Libor plus 225 bps with a 0.5% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months.

The company’s $2.1 billion of credit facilities (Ba2/BB+) also include a $600 million revolver and a $1.1 billion term loan A.

JPMorgan Chase Bank is leading the deal that will be used to help fund the acquisition of Veterans Evaluation Services Inc. for $1.4 billion, subject to certain adjustments, and to refinance existing debt.

Closing is expected in the company’s third fiscal quarter, subject to U.S. antitrust filing requirements and customary conditions.

Maximus is a Reston, Va.-based provider of government services. Veterans Evaluation Services is a provider of medical disability examinations to determine veterans’ eligibility for compensation and pension benefits.

U.S. Concrete accelerated

U.S. Concrete moved up the commitment deadline for its $300 million seven-year term loan B (Ba3/BB+) to noon ET on Wednesday from 5 p.m. ET on Wednesday, a market source said.

Talk on the term loan is Libor plus 275 bps to 300 bps with a 0.5% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

JPMorgan Chase Bank is leading the deal that will be used to redeem bonds and repay ABL borrowings.

U.S. Concrete is a Euless, Tex.-based supplier of aggregates and high-performance concrete for large-scale commercial, residential and infrastructure projects.

Mission guidance

Mission Broadcasting held its call on Tuesday and announced talk on its $300 million term loan B (Ba2/BBB-) at Libor plus 275 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.

Commitments are due at 11 a.m. ET on Thursday, the source added.

BofA Securities Inc. is leading the deal that will be used to repay some revolver borrowings.

Mission Broadcasting is a Wichita, Falls, Tex.-based television broadcasting company.

System One talk

System One came out with original issue discount talk of 99.75 on its $30 million add-on term loan B that launched with a call during the session, a market source said.

The add-on term loan is priced at Libor plus 450 bps with a 0.75% Libor floor and has 101 soft call protection through Sept. 2.

Commitments are due on June 3, the source added.

Truist Securities is leading the deal, which will be used for acquisition financing.

System One is a Pittsburgh-based provider of specialized workforce solutions and integrated services.

Aimbridge on deck

Aimbridge Hospitality set a lender call for Wednesday to launch a $199 million term loan B due 2026 talked at Libor plus 475 bps to 500 bps with a 0.75% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

JPMorgan Chase Bank is leading the deal that will be used to reprice an existing term loan down from Libor plus 600 bps with a 0.75% Libor floor.

Aimbridge is a Plano, Tex.-based hotel management firm.

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