Element Materials, Wrench Group break; Mavis updates surface; ArcLight, VXI release talk

By Sara Rosenberg

New York, April 12 – Element Materials changed the original issue discount on its U.S. and euro term loans before freeing up for trading on Tuesday, and Wrench Group LLC’s incremental first-lien term loan made its way into the secondary market as well.

In more happenings, Mavis Tire Express Services TopCo Corp. increased the size of its incremental first-lien term loan and firmed the original issue discount at the tight end of guidance.

Also, ArcLight GCX (AL GCX Holdings LLC) and VXI Global Solutions announced price talk with launch, and Vizient Inc. and Penn National Gaming Inc. emerged with new deal plans.

Element Materials tweaked

Element Materials modified the original issue discount on its $1.425 billion seven-year term loan to 99.5 from revised talk in the range of 98.5 to 99 and initial talk in the range of 97.5 to 98, according to a market source.

Also, the original issue discount talk on the $400 million equivalent euro seven-year term loan was modified to a range of 99 to 99.5 from revised talk in the range of 98.5 to 99 and initial talk of 98, and then firmed at 99.5, the source said.

The U.S. term loan is priced at SOFR+10 basis points CSA plus 425 bps with a 25 bps step-down at 4.5x first-lien leverage and a 0.5% floor, and the euro term loan is priced at Euribor plus 425 bps with a 25 bps step-down at 4.5x first-lien leverage and a 0% floor. Both loans have 101 soft call protection for six months and ticking fees of half the spread from days 46 to 90 and the full spread thereafter.

Earlier in syndication, pricing on the U.S. term loan was cut from SOFR plus 450 bps and a 25 bps pricing step-down at 5x first-lien leverage was eliminated, pricing on the euro term loan was lowered from Euribor plus 450 bps and 25 bps step-downs at 5x and 4x first-lien leverage were removed, ticking fees were changed from half the spread from days 91 to 150 and the full spread thereafter, and some revisions were made to documentation.

Element hits secondary

Recommitments for Element Materials’ term loans were due at 11 a.m. ET on Tuesday and the debt freed to trade in the afternoon, with the U.S. term loan quoted at 99 7/8 bid, par 3/8 offered, a trader added.

BofA Securities Inc., Goldman Sachs and ING are physical bookrunners on the $1.825 billion equivalent of term loans (B1/B), with BofA the left lead on the U.S. loan. Credit Agricole and Lloyds are passive bookrunners, and Bank of Ireland, HSBC, SMBC and Standard Chartered are mandated lead arrangers.

The term loans will be used to help fund the buyout of the company by Temasek from Bridgepoint.

Element Materials is a London-based provider of testing, inspection and certification services.

Wrench Group frees

Wrench Group’s fungible $54 million incremental first-lien term loan (B2/B-) due April 30, 2026 began trading during the session, with levels quoted at 99¼ bid, 99¾ offered, a market source said.

Pricing on the incremental term loan is Libor plus 400 bps with a 0% Libor floor, in line with existing term loan pricing, and the new debt was sold at an original issue discount of 99.05.

Jefferies LLC is leading the deal that will be used to fund an acquisition.

Pro forma for the transaction, the first-lien term loan totals about $760 million.

Wrench Group is a provider of home maintenance and repair services specializing in heating, ventilation and air conditioning, plumbing, electrical and water quality services.

Mavis upsizes

In other news, Mavis Tire raised its fungible incremental first-lien term loan due May 2028 to $315 million from $275 million and set the original issue discount at 99.25, the tight end of the 99 to 99.25 talk, according to a market source.

Pricing on the incremental term loan is SOFR+CSA plus 400 bps with a 0.75% floor, with CSA being 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

Commitments continue to be due at noon ET on Wednesday, the source added.

Jefferies LLC is leading the deal that will be used to fund an acquisition, to repay existing revolver borrowings and, as a result of the upsizing, to add cash to the balance sheet.

With the incremental term loan, the company is converting through a negative consent process its existing loans to SOFR from Libor with CSA of 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

Mavis is a Millwood, N.Y.-based tire and service retailer.

ArcLight GCX guidance

ArcLight GCX held its lender call on Tuesday morning and released price talk on its $630 million seven-year senior secured term loan B (Ba3/B+) at SOFR+CSA plus 400 bps with a 0.5% floor and an original issue discount of 98 to 98.5, a market source remarked.

CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

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

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

Barclays, Macquarie Capital (USA) Inc., Jefferies LLC, Morgan Stanley Senior Funding Inc. and RBC Capital Markets are leading the deal that will be used to fund the acquisition of a 25% stake in Gulf Coast Express Pipeline LLC.

ArcLight is the sponsor.

ArcLight GCX is a new-build 450-mile Permian natural gas pipeline.

VXI proposed terms

VXI Global Solutions came out with price talk of SOFR+10 bps CSA plus 475 bps with a 0.5% floor and an original issue discount of 97 to 97.5 on its $615 million seven-year term loan B (B3/B) that launched with a call in the morning, a market source said.

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

Commitments are due at noon ET on April 26, the source added.

BofA Securities Inc., Citigroup Global Markets Inc. and HSBC Securities (USA) Inc. are leading the deal, which will be used to help fund the buyout of the company by Bain Capital from Carlyle Group.

VXI is a Los Angeles-based provider of customer care and customer experience solutions.

Vizient joins calendar

Vizient set a lender call for 1 p.m. ET on Wednesday to launch $900 million of term loans, split between a $600 million seven-year term loan B and a $300 million five-year term loan A, according to a market source.

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

Barclays, BofA Securities Inc., JPMorgan Chase Bank, BMO Capital Markets, Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc., Citigroup Global Markets Inc., Fifth Third, Truist and Wells Fargo Securities LLC are leading the deal, with Barclays the left lead on the term loan B and BofA the left lead on the term loan A. Barclays is the administrative agent.

The loans will be used to refinance the company’s existing capital structure.

Vizient is an Irving, Tex.-based member driven health care performance improvement company.

Penn National on deck

Penn National Gaming will hold a lender call at 1 p.m. ET on Wednesday to launch a $1 billion seven-year term loan B, a market source remarked.

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

BofA Securities Inc. is leading the deal that will be used to help refinance existing loans.

Penn National is a Wyomissing, Pa.-based owner and operator of gaming and racing facilities.

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