FR Refuel, Angus, Summit Behavioral break; PCI changes emerge; Vantage Elevator accelerated

By Sara Rosenberg

New York, Nov. 8 – FR Refuel LLC set the spread on its term loans at the wide end of guidance and Angus Chemical Co. tightened the issue price on its add-on first-lien term loan, and then these deals freed to trade on Monday.

Another transaction to make its way into the secondary market during the session was Summit Behavioral Healthcare LLC.

In other news, PCI Pharma Services (Packaging Coordinators Midco Inc.) shifted some funds between its first- and second-lien term loans, and changed the original issue discount on the first-lien debt, and Vantage Elevator Solutions moved up the commitment deadline for its first-lien term loan.

Also, Brooks Automation Inc. (Altar BidCo Inc.), Kraton Corp., Freeport LNG Investments LLLP, Hard Rock Northern Indiana (Spectacle Gary Holdings LLC) and TRC Cos. Inc. released price talk with launch.

Furthermore, Summit Health (WP CityMD Bidco LLC), Arcis Golf LLC, Plastipak Packaging Inc., Fanatics Commerce, Snap One Holdings Corp., CM Group (CMFPL Aus and Finco US), American Physician Partners LLC, Tank Holding Corp., Eversana (LSCS Holdings Inc.), Cincinnati Bell Inc., Ping Identity Corp., nThrive Inc., US Foods Inc. and Bright Horizons Family Solutions Inc. joined this week’s primary calendar.

FR Refuel updated, trades

FR Refuel firmed pricing on its $265 million seven-year covenant-lite first-lien term loan and $35 million covenant-lite delayed-draw term loan at Libor plus 475 basis points, the high end of the Libor plus 450 bps to 475 bps talk, according to a market source.

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

On Monday, the term loan debt freed up for trading, with levels quoted at 99¼ bid, 99¾ offered, the source added.

Citizens Bank is leading the deal (B3/B) that will be used to refinance existing debt.

First Reserve is the sponsor.

FR Refuel is a Charleston, S.C.-based regional convenience store operator.

Angus tightens, frees

Angus Chemical modified the issue price on its fungible $100 million add-on first-lien term loan (//BB-) due November 2027 to par from revised talk of 99.875 and initial talk of 99.75, a market source said.

The add-on term loan is priced at Libor plus 400 bps with a 0.75% Libor floor and has 101 soft call protection for six months.

During the session, the add-on term loan broke for 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 with $200 million of PIK toggle notes to fund a dividend.

Angus is a Buffalo Grove, Ill.-based specialty and fine chemical company.

Summit Behavioral breaks

Summit Behavioral Healthcare’s bank debt hit the secondary market, with the $459 million seven-year first-lien term loan quoted at 97½ bid, 98½ offered, a market source remarked.

Pricing on the first-lien term loan is Libor plus 475 bps with a 0.75% Libor floor and it was sold at an original issue discount of 97. The debt has 101 soft call protection for one year.

The company’s $719 million of credit facilities include a $75 million five-year revolver and a $185 million eight-year second-lien term loan as well.

The second-lien term loan is priced at Libor plus 775 bps with a 0.75% Libor floor and was issued at a discount of 94. This tranche has hard call protection of 102 in year one and 101 in year two.

Summit leads

Jefferies LLC, BofA Securities Inc. and Credit Suisse Securities (USA) LLC are leading Summit Behavioral’s credit facilities.

During syndication, the first-lien term loan was upsized from $450 million, pricing was lifted from talk in the range of Libor plus 400 bps to 425 bps, the leverage-based step-down and initial public offering-based step-down were removed, the discount widened from 99.5 and the call protection was extended from six months. Additionally, the second-lien term loan was upsized from $180 million, pricing was increased from talk in the range of Libor plus 700 bps to 725 bps and the discount was changed from 99. The company also eliminated plans for a $70 million first-lien 24-month availability delayed-draw term loan and a $25 million second-lien 24-month availability delayed-draw term loan, and made changes to documentation.

Proceeds will be used to help fund the buyout of the company by Patient Square Capital from FFL Partners and Lee Equity Partners.

Summit Behavioral is a Franklin, Tenn.-based behavioral health services provider with a focus on the substance use disorder and acute psychiatric treatment end markets.

PCI Pharma reworked

Back in the primary market, PCI Pharma Services raised its fungible incremental first-lien term loan due November 2027 to $570 million from $510 million and adjusted the original issue discount to 99.75 from 99.5, according to a market source.

The company also scaled back its fungible privately placed incremental second-lien term loan due November 2029 to $80 million from $140 million, the source continued.

As before, pricing on the incremental first-lien term loan is Libor plus 375 bps with a 0.75% Libor floor, in line with existing pricing, and pricing on the incremental second-lien term loan is Libor plus 700 bps with a 0.75% Libor floor, a reduction from current pricing of Libor plus 825 bps with a 1% Libor floor.

Recommitments are due at 11 a.m. ET on Tuesday, the source added.

Jefferies LLC, RBC Capital Markets and Antares Capital are leading the deal that will be used with new cash equity to fund the acquisition of Lyophilization Services of New England Inc., a Bedford, N.H.-based contract development and manufacturing organization, from Permira.

PCI is a Philadelphia-based provider of outsourced pharmaceutical services.

Vantage tweaks timing

Vantage Elevator Solutions accelerated the commitment deadline for its $525 million seven-year first-lien term loan (B2/B-) to noon ET on Wednesday from noon ET on Nov. 16, a market source said.

Talk on the first-lien term loan is Libor plus 375 bps to 400 bps with a 0.5% Libor floor, an original issue discount of 99 and 101 soft call protection for six months

The company’s $820 million of credit facilities also include an $85 million five-year revolver (B2/B-) and a $210 million privately placed eight-year second-lien term loan.

RBC Capital Markets, Jefferies LLC and Antares Capital are leading the deal that will be used to help fund the buyout of the company by Ontario Teachers’ Pension Plan Board. Vantage’s current owner, Golden Gate Capital, will retain a significant minority ownership stake in the company.

Closing is expected before the end of the year.

Vantage is a Bronx, N.Y.-based elevator component manufacturer.

Brooks Automation guidance

Brooks Automation Inc. held its call on Monday afternoon and announced price talk on its $825 million seven-year first-lien term loan (B1/B) and $205 million eight-year second-lien term loan (Caa1/CCC+), according to a market source.

Talk on the first-lien term loan is Libor plus 375 bps with a 0.5% Libor floor and an original issue discount of 99.5, and talk on the second-lien term loan is Libor plus 625 bps to 650 bps with a 0.5% Libor floor and a discount of 99, the source said.

The first-lien term loan has 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.

Ticking fees on the term loans is half the margin from days 46 to 90 and the full margin thereafter.

Commitments are due at noon ET on Nov. 17, the source added.

Brooks funding buyout

Brooks Automation will use the new term loans with about $2 billion of equity to finance its acquisition by Thomas H. Lee Partners LP in a transaction valued at $3 billion.

Barclays, Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., UBS Investment Bank, MUFG, SMBC and Stifel are leading the deal, with Barclays the left lead and administrative agent on the first-lien term loan, and Goldman the left lead and agent on the second-lien term loan.

Closing is expected in the first half of 2022 upon satisfaction of customary conditions and regulatory approvals.

Brooks Automation is a Chelmsford, Mass.-based automation technology company with significant expertise in semiconductors.

Kraton proposed terms

Kraton came out with price talk on its $950 million equivalent U.S. and euro seven-year term loan B (Ba3/BB) in connection with its lender call on Monday morning, a market source remarked.

The U.S. term loan is talked at Libor plus 350 bps to 375 bps with a 0.5% Libor floor and an original issue discount of 99.5, and the euro term loan is talked at Euribor plus 350 bps to 375 bps with a 0% floor and a discount of 99.5, the source continued. Both term loans have 101 soft call protection for six months and ticking fees of half the margin from days 46 to 90 and the full margin thereafter.

The U.S. and euro term loan B sizes are still to be determined, but the expectation is for a roughly €300 million euro tranche.

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

Goldman Sachs, BMO Capital Markets, Deutsche Bank Securities Inc., HSBC Securities, Wells Fargo Securities LLC, BNP Paribas Securities Corp., SMBC, BofA Securities Inc. and Mizuho are leading the deal.

Kraton being acquired

The new term loan debt will be used by Kraton to help fund its acquisition by DL Chemical Co. Ltd. for $46.50 per share. The transaction has an enterprise value of about $2.5 billion.

Kraton will be financed on a stand-alone basis and will be a ring fenced, wholly owned non-guarantor subsidiary of DL Chemical.

Closing is expected in the first half of 2022, subject to customary conditions, including the receipt of stockholder and regulatory approvals.

Kraton is a Houston-based producer of specialty polymers and high-value bio-based products derived from pine wood pulping co-products. DL Chemical is a Korea-based petrochemical company.

Freeport LNG holds call

Freeport LNG emerged in the morning with plans to hold a lender call at 3:30 p.m. ET on Monday to launch a $1.194 billion seven-year first-lien term loan (//B+) talked at Libor plus 400 bps with a 0.5% 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 noon ET on Nov. 19, the source added.

Credit Suisse Securities (USA) LLC, CIBC, Credit Agricole, ING, JPMorgan Chase Bank, MUFG, Natixis and Societe Generale are leading the deal that will be used to refinance existing debt.

Freeport LNG is a limited liability partnership that holds Michael Simth’s limited partnership interests in Freeport LNG Development LP, an operator of a liquefied natural gas receiving and regasification terminal.

Hard Rock talk

Hard Rock Northern Indiana launched on its morning call its $415 million seven-year covenant-lite term loan B (B3/B/B+) at talk of Libor plus 375 bps to 400 bps with a 0.75% Libor floor and an original issue discount of 99, a market source said.

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

Commitments are due at noon ET on Nov. 18.

Wells Fargo Securities LLC is leading the deal that will be used to refinance existing debt and pay related fees and expenses.

Hard Rock Northern Indiana is a 200,000 square foot, full-service gaming facility and entertainment complex located in Gary, Ind.

TRC launches

TRC revealed price talk on its $635 million first-lien term loan (B2/B) and $210 million second-lien term loan (Caa2/CCC+) with its afternoon call, according to a market source.

Talk on the first-lien term loan is Libor plus 375 bps with a 0.5% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, and talk on the second-lien term loan is Libor plus 650 bps to 675 bps with a 0.5% Libor floor, a discount of 99 and hard call protection of 102 in year one and 101 in year two, the source said.

Commitments are due on Nov. 17.

UBS Investment Bank is the left lead on the deal that will be used to help fund the buyout of the company by Warburg Pincus from New Mountain Capital.

Closing is expected in the fourth quarter.

TRC is a Windsor, Conn.-based engineering, environmental consulting and construction management firm.

Summit readies deal

Summit Health set a lender call for 10 a.m. ET on Tuesday to launch a $1.684 billion seven-year first-lien term loan (B1/B), according to a market source.

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

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

Credit Suisse Securities (USA) LLC, Barclays, Goldman Sachs Bank USA, Jefferies LLC, Mizuho, ING, KeyBanc Capital Markets, Golub Capital and Regions Bank leading the deal that will be used to fund tuck-in acquisitions and refinance existing debt, including an existing $884 million first-lien term loan.

Summit is physician-owned multispecialty and urgent care medical practices.

Arcis joins calendar

Arcis Golf will hold a lender call at 10:30 a.m. ET on Tuesday to launch a $300 million seven-year covenant-lite term loan B (B2), a market source remarked.

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

Commitments are due at 5 p.m. ET on Nov. 18.

Deutsche Bank Securities Inc. is the left lead on the deal that will be used to refinance existing debt.

Arcis, privately held by Atairos and Fortress Investment Group, is a Dallas-based owner and operator of golf private and daily fee clubs.

Plastipak on deck

Plastipak Packaging scheduled a lender call for 10 a.m. ET on Tuesday to launch an $850 million seven-year covenant-lite term loan B (Ba3/B+), according to a market source.

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

Commitments are due at noon ET on Nov. 17, the source added.

Wells Fargo Securities LLC is the left lead on the deal that will be used to refinance existing debt and pay related fees and expenses.

Plastipak is a Plymouth, Mich.-based manufacturer and recycler of rigid plastic packaging containers and preforms.

Fanatics coming soon

Fanatics Commerce set a lender call for 11:30 a.m. ET on Tuesday to launch a $500 million senior secured term loan B (Ba3), a market source said.

Citigroup Global Markets Inc. is leading the deal that will be used to fund a dividend.

Fanatics Commerce is a Jacksonville, Fla.-based designer, manufacturer and distributor of fan gear, jerseys, headwear and hardgoods.

Snap One plans call

Snap One Holdings scheduled a lender call for 11 a.m. ET on Tuesday to launch a $465 million senior secured first-lien term loan B (B), according to a market source.

Morgan Stanley Senior Funding Inc. is the left lead on the deal that will be used to refinance existing debt and pay related fees and expenses.

Snap One is a Charlotte, N.C.-based provider of a suite of products, services and software to professional do-it-for-me integrators.

CM readies deals

CM Group surfaced with plans to hold a lender call at 10 a.m. ET on Tuesday to launch $635 million of credit facilities (B), a market source remarked.

The facilities consist of a $45 million five-year revolver and a $590 million seven-year first-lien term loan.

Talk on the term loan is Libor plus 500 bps to 525 bps with a 0.75% Libor floor, an original issue discount of 98.5 and 101 soft call protection for six months, the source added.

Jefferies LLC, CIBC, Fifth Third Bank and Golub Capital are leading the deal that will be used to fund the combination of CM Group with Cheetah Digital and refinance the standalone debt at each entity.

The existing owners of CM Group, including Insight Partners, will remain majority owners of the combined company. Vector Capital, which was previously a majority owner of Cheetah Digital, will become a substantial minority owner of the combined company.

CM Group is a Nashville, Tenn.-based owner of marketing technology brands. Cheetah Digital is a Chicago-based cross channel customer engagement solution provider.

American Physician on deck

American Physician Partners scheduled a lender call for 1 p.m. ET on Tuesday to launch a $520 million seven-year covenant-lite first-lien term loan B, according to a market source.

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

Commitments are due at 5 p.m. ET on Nov. 22, the source added.

Deutsche Bank Securities Inc., Regions Bank and Nomura are leading the deal that will be used to refinance existing debt and fund acquisitions under letters of intent.

American Physician is a Brentwood, Tenn.-based emergency department management platform.

Tank plans unitranche

Tank Holding set a lender presentation for Thursday to launch a $1.685 billion unrated unitranche facility, a market source said.

Antares Capital is leading the deal that will be used to refinance existing credit facilities and pay a dividend.

Tank Holding, backed by Olympus Partners, is a Lincoln, Neb.-based manufacturer of proprietary rotational molded polyethylene and steel storage tanks and containers.

Eversana joins calendar

Eversana will hold a lender call at 1 p.m. ET on Tuesday to launch $1.07 billion of credit facilities, according to a market source.

The facilities consist of a $90 million five-year revolver, a $690 million seven-year first-lien term loan and a $290 million eight-year second-lien term loan, the source said.

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.

Jefferies LLC, KeyBank Capital Markets and RBC Capital Markets are leading the deal that will be used to fund the acquisition of Intouch Group.

Closing is expected by the end of the year.

Eversana is a provider of global services to the life sciences industry. Intouch is an agency network serving the pharmaceutical industry.

Cincinnati Bell refinancing

Cincinnati Bell scheduled a lender call for 1 p.m. ET on Tuesday to launch an $850 million term loan B-2 (B+), a market source remarked.

The company is also getting a $300 million term loan B-1 that is not on offer, the source added.

Goldman Sachs Bank USA, Regions Capital, Societe Generale, CoBank, MUFG, Fifth Third Bank and PNC are leading the deal that will be used to help refinance an existing first-lien term loan and 2024 and 2025 senior secured notes.

Cincinnati Bell is a Cincinnati-based provider of integrated entertainment and communication services and IT solutions.

Ping coming to market

Ping Identity set a lender call for 12:30 p.m. ET on Tuesday to launch a $300 million term loan, according to a market source.

The term loan has 101 soft call protection for six months, the source said.

BofA Securities Inc., RBC Capital Markets and Wells Fargo Securities LLC are leading the deal that will be used to repay borrowings and add cash to the balance sheet for acquisitions.

Ping Identity is a Denver-based software company.

nThrive on deck

nThrive plans to hold a lender call at noon ET on Tuesday to launch $1.725 billion of term loans, split between a $1.265 billion seven-year first-lien term loan and a $460 million eight-year second-lien term loan, a market source said.

Talk on the first-lien term loan is Libor plus 400 bps with 25 bps step-downs at 0.5x and 1x inside closing date first-lien leverage and a 25 bps step-down upon an initial public offering, a 0.5% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, the source continued.

The second-lien term loan is talked at Libor plus 675 bps to 700 bps with a 0.5% Libor floor, a discount of 98.5 and call protection of 102 in year one and 101 in year two.

nThrive lead banks

JPMorgan Chase Bank, Deutsche Bank Securities Inc., Golub, Barclays, BMO Capital Markets, Credit Suisse Securities (USA) LLC and Jefferies LLC are leading nThrive’s term loans, with JPMorgan the left lead on the first-lien and Deutsche Bank the left lead on the second-lien.

The new debt will be used with equity to fund the acquisition of TransUnion Healthcare Inc., the health care data and analytics business of TransUnion, for $1.735 billion in cash.

Closing is expected in the fourth quarter, subject to the customary conditions and regulatory approvals.

nThrive is a health care revenue cycle management software-as-a-service platform backed by Clearlake Capital Group LP.

US Foods joins calendar

US Foods will hold a lender call at 1 p.m. ET on Tuesday to launch a $900 million seven-year incremental senior secured covenant-lite term loan B, according to a market source.

The term loan has 101 soft call protection for six months, the source said.

Commitments are due at noon ET on Nov. 17.

Wells Fargo Securities LLC is the left lead on the deal that will be used with about $400 million of cash on hand and proceeds from new senior unsecured debt to repay an existing term loan due June 27, 2023.

KKR is the sponsor.

US Foods is a Rosemont, Ill.-based foodservice distributor.

Bright Horizons sets call

Bright Horizons Family Solutions scheduled a lender call for 1 p.m. ET on Tuesday to launch $1 billion of term loans, a market source remarked.

The debt consists of a $400 million term loan A and a $600 million seven-year term loan B, the source said.

Included in the term loan B is 101 soft call protection for six months.

BofA Securities Inc., JPMorgan Chase Bank and Citizens Bank are leading the deal that will be used to refinance an existing term loan B due 2023.

Bright Horizons is a Newton, Mass.-based provider of early education and child care, back-up care and workforce education services.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.