Allsup’s, SBA, Univar break; Houghton Mifflin, Blackstone Mortgage Trust revise deals

By Sara Rosenberg

New York, Nov. 15 – Allsup’s set the original issue discount on its first-lien term loan B at the wide end of revised talk, and then freed to trade on Friday, and deals from SBA Communications Corp. and Univar Inc. hit the secondary market as well.

In other news, Houghton Mifflin Harcourt Publishers Inc. increased the Libor floor on its term loan B and set the original issue discount at the wide end of guidance, and Blackstone Mortgage Trust Inc. increased the size of its add-on term loan B and tightened the original issue discount.

Furthermore, US Foods Inc. came to market with a repricing transaction, and One Sky Flight LLC and Element Solutions Inc. surfaced with new deal plans.

Allsup’s updated

Allsup’s set the original issue discount on its $525 million five-year first-lien term loan B (B2/B) at 96, the wide end of the revised 96 to 97 talk and wide of initial talk of 98, according to a market source.

The term loan is priced at Libor plus 625 basis points with a 1% Libor floor, and has hard call protection of 102 in year one and 101 in year two.

Previously in syndication, pricing on the term loan was lifted from talk in the range of Libor plus 550 bps to 575 bps, the call protection was changed from a 101 soft call for one year, the maturity was shortened from seven years, amortization was revised to 5% per annum from 1%, and the total net leverage ratio covenant was modified to 6x with step-downs to 5.75x in year two and 5.5x in year three from 6.25x. Also, changes were made to the excess cash flow sweep, the incremental freebie, the first-lien ratio basket, the general restricted payments basket and the EBITDA definition.

Allsup’s frees up

On Friday, Allsup’s term loan B broke for trading and levels were quoted at 96½ bid, 97½ offered, another source added.

Goldman Sachs Bank USA and RBC Capital Markets are leading the deal that will be used to help fund the acquisition of the company by Yesway, a portfolio company of Brookwood.

Closing is expected during the week of Nov. 18.

Allsup’s is a Clovis, N.M.-based operator of 305 gas stations and convenience stores throughout New Mexico, Texas and Oklahoma. Yesway is a Des Moines-based convenience store chain.

SBA starts trading

SBA Communications’ $2.37 billion term loan B due April 2025 freed up as well, with levels seen at par bid, par ¼ offered, a trader remarked.

The term loan B is priced at Libor plus 175 bps with a 0% Libor floor and was issued at par.

TD Securities (USA) LLC is leading the deal that will be used to reprice an existing term loan B down from Libor plus 200 bps.

SBA is a Boca Raton, Fla.-based owner and operator of wireless communications infrastructure.

Univar tops OID

Univar’s $400 million seven-year first-lien term loan B-5 (Ba3//BB+) also emerged in the secondary market, with levels quoted at par bid, par ¼ offered, according to a trader.

Pricing on the term loan is Libor plus 200 bps with a 0% Libor floor and it was sold at an original issue discount of 99.75. The debt has 101 soft call protection for six months.

During syndication, pricing on the term loan was reduced from talk in the range of Libor plus 225 bps to 250 bps and the discount was tightened from 99.5.

Goldman Sachs Bank USA, BofA Securities, Inc., Deutsche Bank Securities Inc., Wells Fargo Securities LLC, J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc., Citigroup Global Markets Inc., U.S. Bank, HSBC Securities (USA) Inc. and BMO Capital Markets are leading the deal that will be used to refinance an existing euro term loan due 2024.

Closing is expected during the week of Nov. 18.

Univar is a Downers Grove, Ill.-based chemical and ingredients distributor and provider of value-added services.

ASGN levels emerge

ASGN Inc. completed the repricing of its $490.3 million covenant-lite term loan B due April 2, 2025, but the debt will continue to trade as a term loan B-2 until Nov. 22 when the transaction officially settles, whereupon it will transfer to the term loan B-3, a market source said.

Post completion, the term loan was quoted on Friday afternoon at par bid, par ½ offered in trading, the source added.

Pricing on the repriced term loan is Libor plus 175 bps with a 0% Libor floor and it was issued at par. The debt has 101 soft call protection for six months.

During syndication, the term loan was reduced from $540.3 million as the company upsized its senior notes offering to $550 million from $500 million.

Wells Fargo Securities LLC is the left lead on the deal that will reprice an existing term loan B down from Libor plus 200 bps. The existing loan is being paid down from about $787 million with a portion of the proceeds from the notes offering. The notes will also be used to repay all revolver borrowings and a term loan due 2022.

ASGN is a Calabasas, Calif.-based provider of information technology and professional staffing services in the technology, digital, creative, engineering and life sciences fields across commercial and government sectors.

Houghton tweaked

Back in the primary market, Houghton Mifflin lifted the Libor floor on its $330 million five-year senior secured term loan B (B3/B/BB-) to 1% from 0%, finalized the original issue discount at 97, the wide end of the 97 to 98 talk, and made some revisions to documentation, according to a market source.

As before, the term loan is priced at Libor plus 600 bps and has 101 soft call protection for one year.

Recommitments were due at 2 p.m. ET on Friday, the source added.

Citigroup Global Markets Inc., Morgan Stanley Senior Funding Inc., BofA Securities, Inc. and Wells Fargo Securities LLC are leading the deal that will be used with $350 million of senior secured notes to refinance an existing term loan B due May 29, 2021 that is priced at Libor plus 300 bps with a 1% Libor floor.

The company had about $766 million outstanding under the existing term loan B as of Sept. 30.

Closing is expected during the week of Nov. 18.

Houghton Mifflin is a Boston-based provider of K-12 core curriculum, supplemental and intervention solutions and professional learning services.

Blackstone Mortgage revised

Blackstone Mortgage Trust raised its add-on term loan B due April 2026 to $250 million from $150 million and changed the original issue discount to 99.875 from 99.75, a market source remarked.

The add-on term loan and repricing of the company’s existing roughly $499 million term loan B due April 2026 are still priced at Libor plus 225 bps with a 0% Libor floor and include 101 soft call protection for six months. The repricing is still offered at par.

Recommitments were due at 11 a.m. ET on Friday, the source added.

J.P. Morgan Securities LLC is leading the deal

Proceeds from the add-on term loan will be used for general corporate purposes, and the repricing will take the existing term loan down from Libor plus 250 bps.

Blackstone Mortgage Trust is a New York-based real estate finance company.

US Foods repricing

US Foods launched without a call on Friday a $2.134 billion senior secured covenant-lite term loan B (Ba3/BB+) due June 27, 2023 talked at Libor plus 175 bps with a 0% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Citigroup Global Markets Inc. is leading the deal that will be used to reprice an existing term loan down from Libor plus 200 bps.

Commitments from existing lenders are due at 5 p.m. ET on Thursday and commitments from new lenders are due at noon ET Nov. 22, the source said.

Closing is targeted for Nov. 26.

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

One Sky on deck

One Sky Flight set a bank meeting for 10:30 a.m. ET in New York on Wednesday to launch a $425 million seven-year senior secured first-lien term loan (B2), a market source said.

The term loan has 101 soft call protection for one year, the source added.

Jefferies LLC, Guggenheim and CIBC are leading the deal that will be used to refinance existing debt, purchase aircraft currently leased and fund cash to the balance sheet to support future growth.

One Sky is a full-service private aviation company.

Element readies loan

Element Solutions scheduled a lender call for Monday to launch a $744.4 million first-lien term loan B due Jan. 31, 2026, according to a market source.

Commitments are due at noon ET on Nov. 22, the source said.

Barclays and Credit Suisse Securities (USA) LLC are leading the deal that will be used to refinance/reprice an existing term loan B.

Element Solutions is a Fort Lauderdale, Fla.-based provider of specialty chemical solutions.

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