Motus, Acuren, MW Industries break; United Site, Summit Behavioral deal updates emerge

By Sara Rosenberg

New York, Nov. 3 – Motus Group LLC’s first-lien term loan made its way into the secondary market on Wednesday, with levels quoted above its original issue discount, and deals from Acuren (Rockwood Service Corp.) and MW Industries Inc. (Helix Acquisition Holdings) freed up as well.

In other news, United Site Services (PECF USS Intermediate Holding III Corp.) increased the size of its term loan B and updated price talk, and Summit Behavioral Healthcare LLC reworked its funded term loan sizes, spread and original issue discounts, removed its delayed-draw term loans from the capital structure and made a number of changes to documentation.

Furthermore, Ultra Electronics, Pelican Products Inc., Howden Group Holdings Ltd. (Hyperion Refinance Sarl) and Compassus LLC disclosed price talk with launch, and NEP Group Inc. and C.H. Guenther & Son emerged with new deal plans.

Motus hits secondary

Motus’ $390 million seven-year first-lien term loan (B2/B-/B+) freed to trade on Wednesday, with levels quoted at 99¾ bid, par ¼ offered, according to a trader.

Pricing on the first-lien term loan is Libor plus 400 basis points with a 25 bps step-down at 4.75x first-lien leverage and a 0.5% Libor floor. The debt was sold at an original issue discount of 99.5 and has 101 soft call protection for six months.

During syndication, pricing on the term loan firmed at the high end of the Libor plus 375 bps to 400 bps talk, the step-down was added and the discount was tightened from 99.

The company’s $575 million of credit facilities also include a $50 million revolver and a $135 million privately placed second-lien term loan.

RBC Capital Markets, Barclays, Owl Rock and Thoma Bravo Credit are leading the deal that will help fund a significant strategic investment in Motus by Permira. As part of the transaction, existing investor Thoma Bravo plans to reinvest and remain a significant investor in the company.

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

Motus is a Boston-based reimbursement software platform for the anywhere workforce.

Acuren starts trading

Acuren’s fungible $100 million add-on covenant-lite term loan B due January 2027 hit the secondary market too, with levels quoted at par bid, par ½ offered, a market source said.

Pricing on the term loan is Libor plus 400 bps with a step-up to Libor plus 425 bps at greater than 3.5x first-lien net leverage and a 0% Libor floor. The add-on term loan was sold at an original issue discount of 99.75. The add-on and existing term loans are getting 101 soft call protection for six months.

During syndication, the discount on the add-on term loan was tightened from talk in the range of 99 to 99.5.

BofA Securities Inc. is the left lead on the deal that will be used to fund the acquisition of Premium Inspection & Testing Group, a provider of nondestructive testing, inspection and calibration services.

Acuren is a provider of testing services to energy and industrial markets.

MW Industries frees up

MW Industries’ non-fungible $95 million first-lien term loan (B2) due Sept. 29, 2024 also broke for trading, with levels quoted at 99¼ bid, par offered, a trader remarked.

Pricing on the term loan is Libor plus 425 bps with a 0.5% Libor floor and it was sold at an original issue discount of 99. The debt has 101 soft call protection for six months.

RBC Capital Markets is leading the deal that will be used to fund acquisitions and add cash to the balance sheet.

American Securities is the sponsor.

MW Industries is a Charlotte, N.C.-based manufacturer and designer of engineered compression and other springs, fasteners, and precision components across diverse end markets.

United Site upsizes

Moving to the primary market, United Site Services increased its seven-year term loan B (B2/B-) to $1.8 billion from $1.25 billion as plans for a $550 million senior secured notes offering were eliminated, changed price talk to Libor plus 450 bps from talk in the range of Libor plus 450 bps to 475 bps and revised original issue discount talk to a range of 99 to 99.5 from just 99, according to a market source.

The 0.5% Libor floor and 101 soft call protection for six months on the term loan were unchanged.

Commitments are due at noon ET on Thursday, moved up from 5 p.m. ET on Thursday, the source added.

BofA Securities Inc., Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc., Barclays, Deutsche Bank Securities Inc. and Jefferies LLC are leading the deal that will be used with $750 million of senior unsecured notes to fund the acquisition of the company by a Platinum Equity Continuation Fund, to refinance existing debt, and to pay certain fees, commissions and expenses related to the transaction.

United Site Services is a Westborough, Mass.-based provider of portable restrooms, temporary fence and related site services.

Summit Behavioral reworked

Summit Behavioral Healthcare raised its seven-year first-lien term loan to $459 million from $450 million, lifted pricing to Libor plus 475 bps from talk in the range of Libor plus 400 bps to 425 bps, removed the one leverage-based step-down and one initial public offering-based step-down, and widened the original issue discount to 97 from 99.5, a market source said.

The company also upsized its eight-year second-lien term loan to $185 million from $180 million, increased pricing to Libor plus 775 bps from talk in the range of Libor plus 700 bps to 725 bps, and adjusted the discount to 94 from 99, the source continued.

Furthermore, the company 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, changes were made to incremental, MFN, mandatory prepayments, restricted payments, restricted debt payments, investments, indebtedness, second-lien cushion, EBITDA definition, unrestricted subsidiaries and release of non-wholly owned guarantors.

The term loans still have a 0.75% Libor floor. 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.

Summit Behavioral leads

Jefferies LLC, BofA Securities Inc. and Credit Suisse Securities (USA) LLC are leading Summit Behavioral’s now $719 million of credit facilities, which also include a $75 million five-year revolver.

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

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.

Ultra Electronics guidance

Ultra Electronics held its call on Wednesday morning and released price talk on its $855 million seven-year term loan B and a €475 million seven-year term loan B, according to a market source.

Talk on the U.S. term loan is Libor plus 375 bps to 400 bps with a 0.5% Libor floor and an original issue discount of 99.5, and talk on the euro term loan is Euribor plus 375 bps to 400 bps with a 0% floor and a discount of 99.5, the source said. Both term loans (B1/B-) have 101 soft call protection for six months.

Commitments are due at noon ET on Nov. 16.

Barclays is the physical bookrunner on the U.S. term loan. Barclays, BNP Paribas Securities Corp., Credit Suisse and HSBC are physical bookrunners on the euro term loan. Goldman Sachs, Jefferies LLC, Lloyds, Morgan Stanley Senior Funding Inc., NatWest, RBC Capital Markets, SMBC and UniCredit are mandated lead arrangers. Credit Suisse is the administrative agent.

The loans will be used to help fund the acquisition of the company by Advent, refinance existing debt and pay transaction fees and expenses.

Ultra Electronics is a London-based manufacturer of electronic and electromechanical systems, sub-systems, and products for defense, security and aerospace applications.

Pelican Products talk

Pelican Products came out with talk of Libor plus 425 bps to 450 bps with a 0.5% Libor floor and an original issue discount of 99 on its $525 million seven-year first-lien term loan (B) that launched with a call in the afternoon, a market source said.

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

Commitments are due at 11 a.m. ET on Nov. 16, the source added.

BofA Securities Inc., Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc., Houlihan Lokey, Ares and Goldman Sachs Bank USA are leading the deal that will be used to help fund the buyout of the company by Platinum Equity.

Closing is expected by the end of the fourth quarter.

Pelican Products is a Torrance, Calif.-based designer and manufacturer of high-performance protective cases and rugged gear for professionals and outdoor enthusiasts, and temperature-controlled supply chain solutions for the health care industry.

Howden Group holds call

Howden Group hosted a lender call at 1 p.m. ET, launching a fungible $550 million add-on covenant-lite term loan B (B2/B) due Nov. 12, 2027 with original issue discount talk of 98.79, according to a market source.

Pricing on the add-on term loan is Libor plus 325 bps with a 0.75% Libor floor, and the add-on and existing term loan are getting 101 soft call protection for six months, the source said.

Ticking fees on the add-on term loan are half the margin from days 31 to 60 and the full margin and Libor floor thereafter.

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

Morgan Stanley Senior Funding Inc., Barclays, RBC Capital Markets, Lloyds, ING and NatWest are leading the deal that will be used with an $85 million add-on to the company’s privately placed second-lien term loan and a new privately placed £390 million HoldCo PIK facility to support the acquisition of Aston Lark from Goldman Sachs Asset Management and Bowmark Capital, and add cash to the locked account.

Pro forma for the transaction, the U.S. term loan B will total $2.761 billion.

Howden Group is a London-based insurance intermediary group. Aston Lark is commercial and private client broker in the UK.

Compassus proposed terms

Compassus launched on a 2 p.m. ET lender call a $542 million term loan B talked at Libor plus 375 bps to 400 bps with a 0.5% Libor floor, a par issue price and 101 soft call protection for six months, a market source remarked.

Commitments are due at 5 p.m. ET on Nov. 10, the source added.

BofA Securities Inc. is leading the deal that will be used to reprice an existing term loan down from Libor plus 425 bps with a 0.75% Libor floor.

Compassus is a Nashville-based post-acute care company.

NEP joins calendar

NEP Group set a lender call for 10 a.m. ET on Thursday to launch a non-fungible $210 million incremental term loan B (B3//B) due Oct. 19, 2025, according to a market source.

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

Barclays, JPMorgan Chase Bank, HSBC Securities (USA) Inc., Macquarie Capital (USA) Inc., MUFG and Mizuho are leading the deal that will be used for general corporate purposes, including acquisitions and capital expenditures, and to pay down revolver borrowings.

NEP is a Pittsburgh-based provider of outsourced live and broadcast production solutions.

C.H. Guenther on deck

C.H. Guenther & Son will hold a lender call at 11 a.m. ET on Thursday to launch a $910 million seven-year first-lien term loan (B1/B) talked at Libor plus 300 bps to 325 bps with 25 bps step-downs at 0.5x and 1x inside closing date first-lien net leverage, a 0.5% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, a market source said.

Commitments are due at 11 a.m. ET on Nov. 16, the source added.

JPMorgan Chase Bank is leading the deal that will be used to help refinance existing term loans in connection with a minority equity recapitalization of the company, and for general corporate purposes.

C.H. Guenther, a Pritzker Private Capital portfolio company, is a San Antonio, Tex.-based diversified food manufacturer.

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