Focus Financial, Ensemble Health break; Nascar, Pregis, BroadStreet Partners revise deals

By Sara Rosenberg

New York, July 24 – Focus Financial Partners Inc. increased the size of its add-on term loan B and then the debt freed up for trading on Wednesday, and Ensemble Health Partners emerged in the secondary market as well.

Moving to the primary market, Nascar Holdings Inc. trimmed the spread on its term loan, added a pricing step-down and tightened the original issue discount, and Pregis LLC firmed the spread on its first-lien term loan at the low end of guidance, added a step-down and revised the issue price.

Also, BroadStreet Partners Inc. modified the original issue discount on its add-on term loan B, and LegalShield accelerated the commitment deadline for its add-on term loan B.

Furthermore, DaVita Inc., Kaman Distribution Group (Ruby Holdings II LLC) and Jaggaer revealed price talk with launch, and UGI Energy Services LLC, Franklin Energy Group and DynCorp International joined this week’s primary calendar.

Focus upsized, trades

Focus Financial lifted its fungible add-on term loan B due July 2024 to $350 million from $300 million, according to a market source.

As before, the add-on term loan is priced at Libor plus 250 basis points with a 0% Libor floor and an original issue discount of 99.75, and has 101 soft call protection for six months.

Previously in syndication, the discount on the term loan was set at the tight end of the 99.5 to 99.75 talk.

Following the upsize on Wednesday, the add-on term loan B hit the secondary market and levels were seen at par 1/8 bid, par 3/8 offered, a trader added.

RBC Capital Markets, BMO Capital Markets, BofA Securities Inc., SunTrust Robinson Humphrey Inc., Capital One, KKR Capital Markets, Fifth Third, Goldman Sachs Bank USA, MUFG and Regions Bank are leading the deal that will be used to repay revolver borrowings and, due to the upsizing, for general corporate purposes.

The upsize is net leverage neutral.

Closing is expected this month.

Pro forma for the transaction, the term loan B will be sized at around $1,145,000,000.

Focus Financial is a New York-based partnership of independent, fiduciary wealth management firms.

Ensemble frees up

Ensemble Health Partners’ $672 million seven-year first-lien term loan (B2/B) also broke for trading, with levels quoted at 99¾ bid, par ¾ offered, a market source remarked.

Pricing on the term loan is Libor plus 375 bps with a 25 bps step-down upon a qualifying initial public offering and a 0% Libor floor. The loan was sold at an original issue discount of 99.5.

During syndication, the spread on the loan was lowered from talk in the range of Libor plus 400 bps to 425 bps, a 25 bps leverage-based step-down was eliminated and the discount was revised from 99.

Goldman Sachs Bank USA, Antares Capital, Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and Guggenheim are leading the deal that will be used to help fund the buyout of a majority stake in the company by Golden Gate Capital from Bon Secours Mercy Health.

Closing is expected during the week of July 29, subject to regulatory approvals.

Ensemble Health is a revenue cycle management provider.

Nascar tweaks loan

Switching to the primary market, Nascar lowered pricing on its $1.41 billion seven-year first-lien term loan (Ba2/BB) to Libor plus 275 bps from talk in the range of Libor plus 300 bps to 325 bps, added a 25 bps step-down when first-lien net leverage is 3.5x and moved the original issue discount to 99.5 from 99, according to a market source.

The term loan still has a 0% Libor floor, 101 soft call protection for six months and a ticking fee of half the margin for days 46 through 90 and the full margin thereafter.

Commitments are due at 5 p.m. ET on Thursday, accelerated from Friday, the source said.

Goldman Sachs Bank USA, BofA Securities Inc. and PNC Capital Markets are leading the deal that will be used to help fund the acquisition of International Speedway Corp., a Daytona Beach, Fla.-based promoter of motorsports activities, for $45 in cash per share. The transaction is valued at about $2 billion.

Closing is expected this year, subject to International Speedway shareholder approval and customary conditions.

Nascar is a Daytona Beach, Fla.-based sports sanctioning body and provider of news, statistics and information services on races, drivers, teams and industry events.

Pregis sets changes

Pregis firmed pricing on its $615 million seven-year covenant-lite first-lien term loan (B2/B) at Libor plus 400 bps, the low end of the Libor plus 400 bps to 425 bps talk, added a 25 bps step-down and modified the original issue discount to 99.5 from 99, a market source said.

The term loan still has a 0% Libor floor and 101 soft call protection for six months.

Recommitments are due at 10 a.m. ET on Thursday, the source added.

The company’s $955 million of credit facilities also include a $125 million revolver (B2/B) and a $215 million privately placed second-lien term loan.

Credit Suisse Securities (USA) LLC, Barclays, Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc. and UBS Investment Bank are leading the deal that will be used to help fund the buyout of the company by Warburg Pincus from Olympus Partners.

Pregis is a Deerfield, Ill.-based protective packaging materials and automated systems manufacturer.

BroadStreet tightens

BroadStreet Partners changed the original issue discount on its fungible $135 million add-on term loan B (B2) to 99.75 from 99.5, according to a market source.

The add-on term loan is priced at Libor plus 325 bps with a 1% Libor floor, in line with the company’s existing $735 million term loan B, and has 101 soft call protection for six months.

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

RBC Capital Markets LLC, BofA Securities Inc., BMO Capital Markets, Barclays, Bank of Nova Scotia and SunTrust Robinson Humphrey Inc. are leading the deal that will be used for acquisitions and to repay revolver borrowings.

BroadStreet is a Columbus, Ohio-based insurance broker.

LegalShield accelerated

LegalShield moved up the commitment deadline for its fungible $60 million add-on first-lien term loan B due May 1, 2025 to noon ET on Thursday from noon ET on Friday, a market source remarked.

Pricing on the add-on first-lien term loan is Libor plus 325 bps with a 0% Libor floor, and the debt is talked with an original issue discount of 99.5.

RBC Capital Markets, SunTrust Robinson Humphrey Inc., KKR Capital Markets, Capital One and BMO Capital Markets are leading the deal that will be used to repay revolver borrowings and consummate near-term acquisitions.

The company’s existing first-lien term loan B is sized at $678 million.

LegalShield is an Ada, Okla.-based provider of legal plans and identity theft solutions.

DaVita reveals talk

Also on the new deal front, DaVita held its bank meeting on Wednesday morning and announced price talk on its $2.5 billion seven-year term loan B at Libor plus 250 bps with a 0% Libor floor and an original issue discount of 99 to 99.5, according to a market source.

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

Commitments are due at 3 p.m. ET on Aug. 7.

The company’s $5.25 billion of senior secured credit facilities (Ba1/BBB-) also include a $1 billion five-year revolver and a $1.75 billion five-year term loan A with a delayed-draw feature.

Wells Fargo Securities LLC, Credit Agricole, J.P. Morgan Securities LLC, MUFG, BofA Securities Inc., Barclays, Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc. and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to repay revolver and term loan borrowings, to redeem the $1.25 billion 5.75% senior notes due 2022, to buy back common stock, to pay fees and expenses, and for general corporate purposes.

DaVita is a Denver-based provider of kidney dialysis services to patients with chronic kidney failure.

Kaman releases guidance

Kaman Distribution Group came out with price talk on its $320 million seven-year first-lien term loan (B2/B) and $115 million eight-year second-lien term loan (Caa2/CCC+) as it held its bank meeting during the session, a market source said.

The first-lien term loan is talked at Libor plus 425 bps to 450 bps with a 0% Libor floor and an original issue discount of 99, and the second-lien term loan is talked at Libor plus 825 bps to 850 bps with a 0% Libor floor and a discount of 98.5, the source continued.

Included in the first-lien term loan is 101 soft call protection for six months, and the second-lien term loan has hard call protection of 102 in year one and 101 in year two.

The company’s $510 million of credit facilities also include a $75 million five-year ABL revolver,

Commitments are due on Aug. 7, the source added.

Jefferies LLC, Antares Capital and BMO Capital Markets are leading the deal that will be used to help fund the buyout of the company by Littlejohn & Co. from Kaman Corp. for $700 million.

Closing is expected in the third quarter.

Kaman Distribution is a distributor of bearings and power transmission, automation and fluid power products.

Jaggaer proposed terms

Jaggaer held its bank meeting in the morning, launching its $510 million seven-year first-lien term loan (B2/B-) at talk of Libor plus 400 bps to 425 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 on Aug. 7, the source said.

Goldman Sachs Bank USA, UBS Investment Bank, Antares Capital and CPPIB are leading the deal that will be used to help fund the buyout of the company by Cinven from Accel-KKR.

Jaggaer is a Research Triangle Park, N.C.-based cloud-based suite of SaaS solutions to help corporations track, manage, and control vendor expenses.

UGI Energy on deck

UGI Energy Services set a bank meeting for noon ET in New York on Thursday to launch a $700 million seven-year term loan B, a market source remarked.

The term loan has 101 soft call protection for six months and a commitment deadline of 5 p.m. ET on Aug. 7, the source added.

Credit Suisse (USA) LLC is leading the deal that will be used to help fund the acquisition of the equity interests of Columbia Midstream Group LLC from TC Energy Corp. for about $1,275,000,000, subject to customary adjustments at closing.

UGI Energy, a subsidiary of UGI Corp., is a provider of natural gas gathering, processing and energy services in the Appalachian Basin.

Franklin readies deal

Franklin Energy Group scheduled a bank meeting in New York for Thursday to launch $480 million of credit facilities, according to a market source.

The facilities consist of a $35 million five-year revolver, a $325 million seven-year covenant-lite first-lien term loan and a $120 million eight-year second-lien term loan, the source said.

Antares Capital is leading the deal that will be used to help fund the buyout of the company by ABRY Partners.

Franklin Energy is a Port Washington, Wis.-based vertically-integrated demand-side management company offering outsourced program administration services, product fulfillment and customer engagement software.

DynCorp joins calendar

DynCorp International will hold a bank meeting at 10 a.m. ET on Thursday to launch $430 million of senior secured credit facilities (Ba3/BB), a market source said.

The facilities consist of a $70 million five-year revolver, and a $360 million six-year term loan B that has 101 soft call protection for one year, the source added.

BofA Securities Inc., Morgan Stanley Senior Funding Inc., Citigroup Global Markets Inc. and Barclays are leading the deal, which will be used with cash on hand to refinance the company’s capital structure, including its $390.5 million of 11 7/8% senior secured second-lien notes due 2020.

DynCorp is a McLean, Va.-based provider of aviation, logistics, training, intelligence and operational solutions.

Citgo allocates

In other news, Citgo Holding Inc. allocated its $500 million four-year senior secured first-lien term loan (Caa1/B/B+) that is priced at Libor plus 700 bps with a 1% Libor floor and an original issue discount of 98.5, according to a market source.

The loan is non-callable for one year, then at 101 in year two.

During syndication, pricing on the term loan was reduced from talk in the range of Libor plus 725 bps to 750 bps and the discount was tightened from 98.

Jefferies LLC is the left lead on the loan that will be used with a $1.37 billion senior secured notes offering and cash on hand to redeem all of the company’s $1.87 billion 10¾% senior secured notes due 2020 and to pay related accrued interest and redemption premiums.

Closing is expected on Aug. 1.

Citgo is a Houston-based owner and operator of three large-scale, highly complex refineries.

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