Advisor Group, PLZ Aeroscience, Grocery Outlet reveal price guidance; Boyd sets OID talk

By Sara Rosenberg

New York, July 11 – Advisor Group Inc. reduced the size of its first-lien term loan shortly before its bank meeting on Thursday and then released price talk on the debt later in the day, and Grocery Outlet Inc. (GOBP Holdings Inc.) and PLZ Aeroscience Corp. also disclosed pricing guidance with launch.

In more happenings, original issue discount talk surfaced on Boyd Corp.’s (LTI Holdings Inc.) incremental term loan, and Wawona Packing Co./Gerawan Farming (MVK Intermediate Holdings LLC) joined the near-term primary calendar.

Advisor Group launches

Advisor Group held its bank meeting on Thursday afternoon, launching a downsized $1.2 billion first-lien term loan at talk of Libor plus 425 basis points to 450 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 term loan was originally expected to be sized at $1.25 billion but was reduced in favor of a larger senior unsecured bridge loan commitment of $400 million, which was revised from $350 million, the source said.

The company’s now $1,425,000,000 of credit facilities also includes a $225 million revolver.

Commitments are due on July 25, the source added.

Leverage is expected to be around 5.5 times.

Advisor Group leads

UBS Investment Bank, Goldman Sachs Bank USA, Barclays, Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, RBC Capital Markets, BofA Securities Inc. and SunTrust Robinson Humphrey Inc. are leading Advisor Group’s credit facilities.

The new debt will be used to help fund the buyout of 75% of the company by Reverence Capital Partners. Lightyear Capital and PSP Investments are expected to maintain up to a 25% stake in the company.

Closing is expected in the third quarter, subject to regulatory and other customary approvals.

Advisor Group is a Phoenix-based wealth management platform, which supports over 7,000 financial advisers with $268 billion of client assets.

Grocer Outlet talk

Grocery Outlet came out with talk of Libor plus 325 bps to 350 bps with a 0% Libor floor, a par issue price and 101 soft call protection for six months on its $475,187,500 covenant-lite first-lien term loan B (B2/B+) due Oct. 22, 2025 that launched with an afternoon call, a market source said.

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

Morgan Stanley Senior Funding Inc. is leading the deal, which will be used to reprice an existing term loan B down from Libor plus 375 bps with a 0% Libor floor.

Grocery Outlet is an Emeryville, Calif.-based grocery store operator.

PLZ discloses guidance

PLZ Aeroscience launched on its morning lender call its $644 million seven-year covenant-lite term loan at talk of Libor plus 350 bps with a step-down to Libor plus 325 bps at less than 3.75x total net leverage, a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, according to a market source.

The company’s $719 million of credit facilities also include a $75 million five-year revolver.

Commitments are due on July 23, the source said.

Antares Capital and BMO Capital Markets are leading the deal that will be used to refinance existing debt, including an existing $30 million revolver.

PLZ, a portfolio company of Pritzker Private Capital, is a Downers Grove, Ill.-based producer of specialty aerosol products.

Boyd floats OID

Boyd is talking its non-fungible $125 million seven-year incremental first-lien term loan at an original issue discount of 96, a market source remarked.

As reported earlier, price talk on the loan is Libor plus 475 bps with step-downs based on leverage and an initial public offering, and a 0% Libor floor.

Commitments are due at noon ET on Wednesday.

J.P. Morgan Securities LLC is the leading that launched with a lender call on Wednesday. RBC Capital Markets is the administrative agent.

The new debt will be used to fund the acquisition of Lytron Inc. and to pay related fees and expenses.

Boyd is a Pleasanton, Calif.-based provider of highly engineered thermal management and environmental sealing solutions.

Wawona/Gerawan on deck

Wawona Packing/Gerawan Farming set a bank meeting for 10 a.m. ET in New York on Tuesday to launch $395 million of credit facilities, according to a market source.

The facilities consist of a $60 million revolver and a $335 million OpCo term loan, the source said.

RBC Capital Markets, Rabobank and Jefferies LLC are leading the deal that will be used to help fund the merger of Wawona Packing, an existing Paine Schwartz Partners portfolio company, and Gerawan Farming.

Cutler, Calif.-based Wawona Packing and Fresno, Calif.-based Gerawan Farming are fresh fruit companies.

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