Inmarsat, Closure Systems break; Access CIG, Quickbase updated; SunSource accelerated

By Sara Rosenberg

New York, March 13 – Inmarsat (Connect Finco Sarl/Connect U.S. Finco LLC) reduced the size of its term loan B, lifted the spread and widened the original issue discount, and Closure Systems International Group Inc. trimmed the spread on its first-lien term loan and added a leverage-based step-down, and then these deals freed to trade on Wednesday.

In more happenings, Access CIG LLC set the issue price on its incremental first-lien term loan at the tight side of talk, Quickbase finalized the original issue discount on its first-lien term loan at the tight end of guidance, and SunSource (CD&R Hydra Buyer Inc./STS Operating Inc.) moved up the commitment deadline for its first-lien term loan.

Additionally, Installed Building Products Inc., Perforce Software LLC and Iridium Communications Inc. released price talk with launch, and KinderCare Learning Cos. Inc. (Kuehg Corp.), Kodiak Building Partners, Miter Brands, Mister Car Wash Holdings Inc. and StandardAero (Dynasty Acquisition Co.) joined this week’s new issue calendar.

Inmarsat reworked, frees

Inmarsat scaled back its term loan B due September 2029 to $1.3 billion from $1.4 billion, raised pricing to SOFR plus 450 basis points from talk in the range of SOFR plus 400 bps to 425 bps, moved the original issue discount to 98 from 98.5 and made some changes to documentation, according to a market source.

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

Recommitments were due at 11:30 a.m. ET on Wednesday and the term loan broke for trading in the afternoon, with levels quoted at 98¼ bid, 98¾ offered, another source added.

BofA Securities Inc., Citizens, DNB, Goldman Sachs Bank USA, ING, JPMorgan Chase Bank, MUFG and NatWest are leading the deal that will be used to extend a portion of the company’s existing outstanding term loans and to pay transaction costs.

The company will have a $300 million non-extended term loan at close, versus roughly $284 million under the original plans as cash will be used to refinance some of the non-extended term loan debt.

Inmarsat, part of the ViaSat group, is a provider of mobile satellite communications services.

Closure Systems revised

Closure Systems lowered pricing on its $500 million first-lien term loan due March 2029 to SOFR plus 400 bps from talk in the range of SOFR plus 425 bps to 450 bps and added a 25 bps step-down at 0.5x inside closing date first-lien net leverage, a market source remarked.

As before, the term loan has a 0% floor, an original issue discount of 99.5 and 101 soft call protection for six months.

Recommitments were due at 10 a.m. ET on Wednesday and the term loan began trading later in the day, with levels quoted at par bid, par ½ offered, another source added.

The company’s $620 million of credit facilities (B2/B) also include a $120 million extended revolver due September 2028.

UBS Investment Bank, Goldman Sachs Bank USA, BNP Paribas Securities Corp., Deutsche Bank Securities Inc., RBC Capital Markets, BMO Capital Markets, KKR Capital Markets and Stifel are leading the deal that will be used to refinance the company’s existing first-lien credit facilities.

Closure Systems, backed by Cerberus Capital Management LP, is an Indianapolis-based designer and manufacturer of plastic and aluminum closures and capping equipment/application systems.

Access CIG finalized

Access CIG firmed the original issue discount on its fungible $125 million incremental first-lien term loan due Aug. 18, 2028 (B3/B) at 99.5, the tight end of the 99.25 to 99.5 talk, according to a market source.

Pricing on the incremental term loan is SOFR plus 500 bps with a 0.5% floor, and the debt has 101 soft call protection for one year.

Jefferies LLC, Macquarie Capital (USA) Inc., Golub, Nomura and KKR Capital Markets are leading the deal that will be used to repay in full the company’s existing second-lien term loan.

Pro forma for the transaction, the first-lien term loan will total $1.447 billion.

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.

Quickbase updated

Quickbase set the original issue discount on its $415 million first-lien term loan (B3/B-) at 99.5, the tight end of the 99.05 to 99.5 talk, according to a market source.

Pricing on the term loan remained at SOFR plus 400 bps with a 0.5% floor, and the debt still has 101 soft call protection for six months.

Allocations went out on Wednesday, the source added.

Golub Capital is the left lead on the deal.

Of the total term loan amount, $152 million is a fungible incremental tranche that will refinance an existing second-lien term loan and the remainder is to extend the company’s existing $263 million first-lien term loan.

Vista Equity Partners is the majority owner of the company, and WCAS is a minority owner.

Quickbase is a Boston-based provider of Platform-as-a-Service application development tools that allow non-technical users to develop and deploy their own highly configurable apps.

SunSource tweaks timing

SunSource accelerated the commitment deadline for its $1.685 billion seven-year first-lien term loan (B3/B) to noon ET on Thursday from 5 p.m. ET on Friday, a market source said.

Talk on the term loan is SOFR plus 425 bps to 450 bps with a 0% floor, an original issue discount of 99 and 101 soft call protection for six months.

The company’s $2.185 billion of credit facilities also include a $500 million five-year ABL revolver.

UBS Investment Bank is the left lead on the deal that will be used to refinance the company’s existing capital structure, to fund a distribution to shareholders, to pay original issue discount, fees and expenses, and to add cash to the balance sheet.

SunSource is an Addison, Ill.-based distributor of highly technical products, solutions and services.

Installed Building launches

Installed Building Products held a lender call at 10 a.m. ET on Wednesday to launch a $500 million seven-year covenant-lite term loan B (Ba1/BB+) talked at SOFR plus 200 bps with a 0% floor, an original issue discount of 99.5 to 99.75 and 101 soft call protection for six months, according to a market source.

Commitments are due at 5 p.m. ET on March 21, the source added.

RBC Capital Markets is the left lead on the deal that will be used to refinance an existing $490 million term loan B and to pay fees and expenses.

Expected secured leverage is 1.2x, expected secured net leverage is 0.4x, expected total leverage is 1.8x and expected total net leverage is 1x.

Installed Building Products is a Columbus, Ohio-based installer of insulation and complementary building products.

Perforce guidance

Perforce Software came out with talk of SOFR plus 475 bps with no floor, an original issue discount of 99 and 101 soft call protection for six months on its non-fungible $375 million incremental first-lien term loan (B2/B-) that launched with a call in the afternoon, a market source said.

Commitments are due at 5 p.m. ET on March 21.

Antares Capital is leading the deal, which will be used to fund an acquisition and pay down outstanding revolver borrowings.

Perforce Software, backed by Francisco Partners and Clearlake Capital, is a Minneapolis-based developer of software used for application development.

Iridium holds call

Iridium Communications emerged in the morning with plans to hold a lender call at 3 p.m. ET to launch a fungible $125 million add-on covenant-lite first-lien term loan B due Sept. 20, 2030 talked with an original issue discount in the 99.75 area, a market source remarked.

Like the existing term loan B, the add-on term loan is priced at SOFR plus 250 bps with a 0.75% floor.

Commitments are due at noon ET on Thursday, accelerated from 5 p.m. ET on Thursday shortly after the lender call took place, the source added.

Deutsche Bank Securities Inc., Barclays, RBC Capital Markets and Wells Fargo Securities LLC are leading the deal that will be used to fund the roughly $115 million acquisition of 80% of Satelles Inc. Iridium already owns around 20% in Satelles from three previous investments in the company.

Closing is expected in the next few weeks.

Pro forma for the transaction, the term loan B will total $1.625 billion.

Iridium is a McLean, Va.-based provider of voice and data satellite communications. Satelles is a provider of highly secure satellite-based time and location services.

KinderCare joins calendar

KinderCare Learning set a lender call for 11:30 a.m. ET on Thursday to launch a fungible $250 million incremental first-lien term loan B due June 12, 2030, according to a market source.

Pricing on the incremental term loan is SOFR plus 500 bps with a 0.5% floor, in line with existing term loan pricing.

Barclays, Macquarie Capital (USA) Inc., Goldman Sachs Bank USA, Deutsche Bank Securities Inc., UBS Investment Bank, Jefferies LLC, KKR Capital Markets and Citizens are leading the deal that will be used for general corporate purposes, including a potential distribution to shareholders and/or potential mergers and acquisitions, and to pay transaction expenses.

Pro forma for the transaction, the term loan will total $1.572 billion.

KinderCare is a Lake Oswego, Ore.-based provider of private early childhood care and education.

Kodiak readies deal

Kodiak Building Partners scheduled a lender call for 10 a.m. ET on Thursday to launch a non-fungible $350 million incremental term loan B-2, a market source remarked.

RBC Capital Markets is leading the deal that will be used to fund a dividend to sponsor Court Square Capital Partners.

Kodiak Building is a Highlands Ranch, Colo.-based building products distribution platform and provider of fabrication and assembly services.

Miter on deck

Miter Brands will hold a lender call at noon ET on Thursday to launch a non-fungible $1.3 billion incremental term loan B-2, a market source said.

RBC Capital Markets is the left lead on the deal that will be used with $500 million of other senior secured debt and equity from Koch Equity Development LLC, a current investor in Miter, to fund the acquisition of PGT Innovations Inc. for $42.00 per share in cash, or an enterprise value of about $3.1 billion.

Closing is expected by mid-year, subject to PGT shareholder approval, regulatory approval and customary conditions.

Miter is a manufacturer of precision-built windows and doors. PGT is a North Venice, Fla.-based designer and manufacturer of patio door and window solutions.

Mister Car refinancing

Mister Car Wash surfaced with plans to hold a lender call at 1 p.m. ET on Thursday to launch a $901 million seven-year term loan B, according to market sources.

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

BofA Securities Inc. is the left lead on the deal that will be used to refinance the company’s outstanding term loans.

Mister Car Wash is a Tucson-based car wash operator.

StandardAero coming soon

StandardAero scheduled a lender call for 10 a.m. ET on Thursday to launch $2,762,125,000 of first-lien term loans due August 2028, a market source said.

Of the total term loan amount, $200 million is a fungible incremental term loan that will be used to repay existing unsecured notes, $1,793,487,500 is a repricing of the term loan B-1 at the U.S. borrower down from SOFR plus 400 bps with a 0% floor, and $768,637,500 is a repricing of the term loan B-2 at the Canadian borrower down from SOFR plus 400 bps with a 0% floor.

Talk on the term loan debt is SOFR plus 350 bps with a 0% floor, an original issue discount of 99.75 to par on rolled positions, a discount of 99.5 on new commitments and 101 soft call protection for six months.

The B-1 and B-2 tranches will be sold pro rata and will trade as a strip.

Commitments/consents are due at 5 p.m. ET on Tuesday, the source added.

UBS and Carlyle are leading the deal. Credit Suisse is the administrative agent.

StandardAero is a Scottsdale, Ariz.-based provider of aircraft engine maintenance, repair and overhaul services for the aerospace and defense industries.

Bettcher allocates

In other news, Bettcher Industries Inc. allocated on Wednesday its fungible $85 million add-on first-lien term loan due December 2028 that was sold at an original issue discount of 99.03, a market source remarked.

Pricing on the add-on term loan is SOFR plus 400 bps with a 0.5% floor, in line with pricing on an existing term loan.

KKR Capital Markets is leading the deal, which will be used to fund an acquisition.

Bettcher Industries is a Birmingham, Ohio-based manufacturer and supplier of food processing equipment and associated aftermarket parts and consumables.

HireRight deadline

HireRight Holdings Corp. set a commitment deadline of 5 p.m. ET on March 21 for its fungible $250 million incremental first-lien term loan (B2) that launched with a call in the morning, according to an informed source.

Pricing on the company’s existing term loan is SOFR plus 400 bps with a 0% floor.

Goldman Sachs Bank USA, RBC Capital Markets, Stone Point Capital Markets, Barclays, Citizens and Capital One are leading the deal.

The loan will be used to help fund the acquisition of the company by General Atlantic and Stone Point Capital LLC. The sponsors are the beneficial owners of about 75% of the company’s outstanding shares of common stock and will acquire the outstanding shares they do not already own for $14.35 per share in cash, which implies a total enterprise value of around $1.65 billion.

Closing is expected in mid-2024, subject to approval by stockholders of a majority of the shares not owned by the sponsors, receipt of regulatory approvals and other customary conditions.

HireRight is a Nashville-based provider of technology-driven workforce risk management and compliance solutions.

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