Calpine, Citadel, Light & Wonder, Arconic, Internet Brands, Whatabrands free to trade

By Sara Rosenberg

New York, Jan. 11 – Calpine Corp. lowered pricing on its term loan B-9 and finalized the original issue discount at the tight end of talk, Citadel set the issue price on its term loan B at the tight end of guidance, and Light & Wonder Inc. firmed the issue price on its first-lien term loan B at the tight side of talk, and then all of these deals broke for trading on Wednesday

Also, Arconic Corp. trimmed the spread on its term loan B before freeing up for trading, and deals from Internet Brands (MH SUB I LLC) and Whatabrands LLC (Whataburger) made their way into the secondary market as well.

In more happenings, Signature Aviation plc reduced the spread on its term loan B-2, and Dealer Tire set pricing on its term loan B at the low end of guidance and modified the original issue discount.

Furthermore, Ensemble, Solenis, Parexel, Access CIG LLC and Rough Country released price talk with launch, and Kohler Energy (Discovery Energy Holding Corp.) and Vistage Worldwide joined the near-term primary calendar.

Calpine flexed, frees

Calpine cut pricing on its $925 million seven-year senior secured covenant-lite term loan B-9 (Ba2/BB+/BB+) to SOFR plus 200 basis points from SOFR plus 225 bps, changed the original issue discount talk to a range of 99.5 to 99.75 from a range of 99.25 to 99.75, and then firmed the discount at 99.75 following the noon ET recommitment deadline, according to a market source.

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

On Thursday, the term loan B-9 broke for trading, with levels quoted at 99 7/8 bid, par 1/8 offered, a trader added.

Citigroup Global Markets Inc., BofA Securities Inc., Barclays, BMO Capital Markets, BNP Paribas Securities Corp., Credit Agricole, Deutsche Bank Securities Inc., Goldman Sachs Bank USA, JPMorgan Chase Bank, Mizuho, Morgan Stanley Senior Funding Inc., MUFG, Natixis, RBC Capital Markets, Santander and SMBC are leading the deal. Credit Suisse is the agent.

The term loan, which is expected to close on Jan. 31, will be used to refinance an existing secured term loan B-9 due April 2026 priced at SOFR plus 200 bps with a 0% Libor floor, and to pay related fees and expenses.

Calpine is a Houston-based provider of power generation services.

Citadel updated, breaks

Citadel finalized the issue price on its $4.041 billion term loan B due July 2030 at par, the tight end of the 99.875 to par talk, a market source said.

Pricing on the term loan remained at SOFR plus 225 bps with no CSA and a 0% floor, and the debt still has 101 soft call protection for six months.

In the afternoon, the term loan freed to trade, with levels quoted at par 1/8 bid, par 3/8 offered, another source added.

Goldman Sachs Bank USA is the left lead on the deal. BofA Securities is the administrative agent.

The loan will be used to reprice an existing $4.041 billion term loan B due 2030 down from SOFR+ARRC CSA plus 250 bps with a 0% floor.

Closing is expected during the week of Jan. 29.

Citadel is a Miami-based market maker in equities, options and fixed-income products.

Light & Wonder firms, trades

Light & Wonder set the issue price on its $2.167 billion first-lien term loan B due 2029 at par, the tight end of the 99.75 to par talk, according to a market source.

The term loan is still priced at SOFR plus 275 bps with no CSA and a 0.5% floor, and still has 101 soft call protection for six months.

During the session, the term loan began trading, with levels quoted at par ¼ bid, par ¾ offered, another source added.

JPMorgan Chase Bank is leading the deal that will be used to reprice an existing term loan B down from SOFR+CSA plus 300 bps with a 0.5% floor. CSA on the existing loan is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

Light & Wonder is a Las Vegas-based cross-platform games and entertainment company.

Arconic modified, frees

Arconic lowered pricing on its $1.421 billion term loan B to SOFR plus 375 bps from SOFR plus 400 bps, a market source remarked.

The term loan still has a 0% floor, a par issue price and 101 soft call protection for six months.

On Thursday, the term loan B made its way into the secondary market, with levels quoted at par bid, par ½ offered, another source added.

JPMorgan Chase Bank is leading the deal that will be used to reprice an existing term loan B down from SOFR plus 450 bps with a 0% floor.

Arconic is a Pittsburgh-based provider of aluminum sheet, plate and extrusions as well as architectural products.

Internet Brands breaks

Internet Brands’ fungible $600 million add-on term loan B-3 (B1/B) due May 2028 broke as well, with levels quoted at 98 3/8 bid, 98 7/8 offered, according to a trader.

Pricing on the add-on term loan B-3 is SOFR plus 425 bps with a 0.5% floor, in line with existing term loan B-3 pricing, and the new debt was sold at an original issue discount of 98. The term loan debt is getting 101 soft call protection for six months.

During syndication, the add-on term loan was upsized from $300 million plus.

RBC Capital Markets and KKR Capital Markets are leading the deal that will be used to fully refinance an existing term loan B-1 and term loan B-2, with a combined total amount of $498 million, and the remaining roughly $100 million will be put on the balance sheet for future mergers and acquisitions.

Pro forma for the transaction, the term loan B-3 will be sized at about $4.7 billion.

Internet Brands is an El Segundo, Calif.-based provider of software as a service and traffic driven marketplace/media offerings across health, legal, dental and media verticals.

Whatabrands hits secondary

Whatabrands’ fungible $340 million incremental senior secured covenant-lite first-lien term loan B due Aug. 3, 2028 freed up too, with levels quoted at par bid, par ½ offered, a trader said.

Pricing on the incremental term loan is SOFR+CSA plus 325 bps if total net first-lien leverage is more than 5x and SOFR+CSA plus 300 bps if total net first-lien leverage is 5x or lower, with a 0.5% floor, in line with existing term loan pricing. CSA is 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate. The new debt was sold at an original issue discount of 99.75.

During syndication, the discount on the incremental term loan was revised from 99.03.

Morgan Stanley Senior Funding Inc., JPMorgan Chase Bank, BofA Securities Inc., Citigroup Global Markets Inc. and UBS Investment Bank are leading the deal that will be used to fund a partial redemption of preferred equity and to pay fees and expenses.

Closing is expected in late January.

Whatabrands is a San Antonio-based restaurant company.

Signature Aviation revised

In other news, Signature Aviation trimmed pricing on its $1.663 billion term loan B-2 (B2/B+) due July 2029 to SOFR plus 300 bps from SOFR plus 325 bps, a market source remarked.

Of the total term loan amount, $1.483 billion is a repricing of the company’s existing term loan B-2 due July 2029 down from SOFR plus 375 bps with a 0.5% floor, and $180 million is a fungible add-on that will be used primarily to repay revolver borrowings.

As before, the term loan has a 0.5% floor, a par issue price for the repricing, an original issue discount of 99.75 for new money orders and 101 soft call protection for six months.

Commitments continue to be due at noon ET on Friday, the source added.

RBC Capital Markets is the left lead on the deal.

Blackstone, Global Infrastructure Partners and Cascade are the sponsors.

Signature Aviation is a London-based aviation services company.

Dealer Tire modified

Dealer Tire firmed pricing on its roughly $1.415 billion term loan B due December 2027 at SOFR plus 375 bps, the low end of the SOFR plus 375 bps to 400 bps talk, and moved the original issue discount to 99.75 from 99.5, a market source said.

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

Commitments continued to be due at 5 p.m. ET on Thursday, the source added.

JPMorgan Chase Bank is leading the deal that will be used to reprice an existing term loan B down from SOFR plus 450 bps with a 0.5% floor.

Dealer Tire is a Cleveland-based manager of replacement tire and parts programs for automotive OEMs.

Ensemble proposed terms

Ensemble held its lender call on Thursday morning and announced talk on its $1.7 billion term loan B due August 2029 at SOFR plus 325 bps to 350 bps with no CSA, a 0% floor, an original issue discount of 99.5 and 101 soft call protection for six months, according to a market source.

Commitments are due at 5 p.m. ET on Jan. 18, the source added.

Goldman Sachs Bank USA is the left lead on the deal that will be used to refinance an existing $1.7 billion term loan B due 2026 priced at SOFR+10 bps CSA plus 375 bps with a 0% floor.

Berkshire Partners, Warburg Pincus and Golden Gate Capital are the sponsors.

Ensemble is a Cincinnati-based provider of technology-enabled, end-to-end revenue cycle management services to hospitals and health systems.

Solenis guidance

Solenis came out with talk of SOFR plus 425 bps with a 0.5% floor, an original issue discount of 99.75 to par and 101 soft call protection for six months on its $796 million term loan B (B3/B-) due November 2028 that launched with a lender call in the morning, a market source said.

Commitments are due at 5 p.m. ET on Jan. 18, the source added.

Goldman Sachs Bank USA, BofA Securities Inc., BMO Capital Markets, HSBC Securities (USA) Inc., Citigroup Global Markets Inc., Macquarie Capital (USA) Inc. and Nomura are leading the deal, which will be used to reprice and combine the company’s $500 million 2023 incremental term loan B due 2028 and $296 million 2022 incremental term loan B due 2028.

Solenis, a Platinum Equity portfolio company, is a Wilmington, Del.-based provider of services for water intensive and disinfection end markets.

Parexel talk

Parexel launched on its morning call its fungible $550 million add-on term loan B (B2/B) due November 2028 with original issue discount talk of 99.03 to 99.5, according to a market source.

Like the existing term loan B, the add-on term loan is priced at SOFR plus 325 bps with a 0.5% floor.

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

Commitments are due at noon ET on July 18, the source added.

Goldman Sachs Bank USA, Barclays, UBS Investment Bank, DNB, Jefferies LLC, BofA Securities Inc., BNP Paribas Securities Corp., RBC Capital Markets, ING, PNC and Mizuho are leading the deal that will be used to refinance a portion of the company’s second-lien term loan due November 2029.

EQT and Goldman Sachs Asset Management are the sponsors.

Parexel is a Durham, N.C.-based biopharmaceutical services company that provides clinical research and logistics, medical communications, consulting, commercialization, and advanced technology products and services.

Access CIG holds call

Access CIG held its lender call in the afternoon, launching its fungible $125 million incremental first-lien term loan due Aug. 18, 2028 with original issue discount talk of 98.5 to 99, a market source remarked.

Like the existing term loan, the incremental term loan is priced at SOFR plus 500 bps with a 0.5% floor and has 101 soft call protection through Feb. 18.

Commitments are due at noon ET on Jan. 18.

Jefferies LLC is leading the deal that will be used to refinance a portion of the company’s existing second-lien term loan.

Access CIG is a Livermore, Calif.-based provider of records and information management solutions for highly regulated industries including health care, financial services, law, consumer, and materials & industries.

Rough Country launches

Rough Country launched on its afternoon call its fungible $100 million add-on term loan due July 28, 2028 with original issue discount talk of 99.03, according to a market source.

Pricing on the add-on term loan is SOFR+CSA plus 350 bps with a 0.75% floor, in line with existing term loan pricing. CSA is ARRC standard of 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

Commitments are due at 5 p.m. ET on Jan. 18, the source added.

Golub Capital and Jefferies LLC are leading the deal that will be used to repay a portion of the company’s existing second-lien term loan.

Rough Country is a Dyersburg, Tenn.-based manufacturer and distributor of off-road accessories and suspension systems.

Kohler Energy on deck

Kohler Energy set a lender call for 9:30 a.m. ET on Tuesday to launch a $1.625 billion seven-year term loan B, market sources said.

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

BofA Securities Inc., Goldman Sachs Bank USA, BMO Capital Markets, Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., Mizuho, Nomura, Santander, Stifel and UBS Investment Bank are leading the deal that will be used to help fund the acquisition of a majority stake in Kohler Co.’s energy division by Platinum Equity. Kohler will continue to stay invested in the energy business following completion of the transaction.

Closing is expected in the first half of this year.

Kohler Energy is a provider of mission critical power solutions to homes, businesses, and equipment.

Vistage joins calendar

Vistage Worldwide will hold a lender call at 3 p.m. ET on Wednesday to launch a fungible $125 million add-on first-lien term loan due July 2029, according to a market source.

Pricing on the term loan is SOFR+CSA plus 525 bps with a 0.75% floor. CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

Golub Capital is leading the deal that will be used to refinance second-lien term loan borrowings.

Vistage is a San Diego-based member-based advisory company for executives of small- and medium-sized businesses.

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