Wheel Pros, Beacon, Liberty Tire, Kissner, U.S. Renal, Resonetics break, ImageFirst revised

By Sara Rosenberg

New York, April 23 – Wheel Pros Inc. set the spread on its first-lien term loan at the low end of guidance and Beacon Roofing Supply Inc. finalized pricing on its term loan B at the high side of talk, and then these deals surfaced in the secondary market on Friday.

Also, before freeing up for trading, Liberty Tire Recycling (LTR Intermediate Holdings Inc.) finalized pricing on its first-lien term loan B at the high end of guidance and removed a leverage-based step-down, and Kissner (SCIH Salt Holdings Inc.) set the issue price on its first-lien term loan B repricing at the wide end of talk.

Additionally, U.S. Renal Care Inc. increased the size of its incremental term loan B, firmed the spread at the low end of talk and then broke during the session, and Resonetics LLC’s bank debt began trading as well.

In other news, ImageFirst Holdings LLC upsized its funded first-lien term loan, tightened the original issue discount on its funded and delayed-draw loans, and revised the delayed-draw ticking fees.

Furthermore, Press Ganey (Azalea TopCo Inc.) accelerated the commitment deadline for its incremental first-lien term loan B, and Cable One Inc. and Ahead DB Holdings LLC joined the near-term primary calendar.

Wheel Pros updated, trades

Wheel Pros finalized pricing on its $1 billion seven-year covenant-lite first-lien term loan (B2/B-) at Libor plus 450 basis points, the low end of the Libor plus 450 bps to 475 bps talk, and left the 0.75% Libor floor, original issue discount of 99 and 101 soft call protection for six months unchanged, according to a market source.

Previously in syndication, the company revised the MFN to 50 bps for 12 months, included J. Crew, Serta and Chewy provisions, and set the inside maturity basket at the greater of $105 million and 50% of EBITDA.

On Friday, the term loan broke for trading, with levels quoted at 99¼ bid, 99¾ offered, another source added.

Deutsche Bank Securities Inc., Jefferies LLC, Credit Suisse Securities (USA) LLC, KKR Capital Markets, UBS Investment Bank and Wells Fargo Securities LLC are leading the deal that will be used with $365 million of senior notes to fund the acquisition of the company by Fund Icon Partners III, a single asset investment vehicle managed by Clearlake Capital Group as general partner, from Clearlake managed funds and refinance existing debt.

Closing is expected this quarter.

Wheel Pros is a Denver-based distributor of proprietary branded wheels and performance tires.

Beacon sets spread, frees

Beacon Roofing Supply firmed pricing on its $1 billion seven-year senior secured covenant-lite term loan B (Ba3/BB-) at Libor plus 250 bps, the high end of the Libor plus 225 bps to 250 bps talk, a market source said.

The term loan still has a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

Late in the session, the term loan B hit the secondary market, with levels quoted at 99 5/8 bid, 99 /78 offered, another source added.

Citigroup Global Markets Inc., BofA Securities Inc., Wells Fargo Securities LLC and JPMorgan Chase Bank are leading the deal that will be used with $350 million of notes to repay an existing term loan and 4 7/8% senior notes due 2025, and to pay related breakage costs, fees and expenses.

The company also plans on getting a $1.3 billion amended and restated senior secured asset-based revolver due 2026.

Closing is expected in mid-May.

Beacon is a Herndon, Va.-based distributor of roofing materials and complementary building products.

Liberty Tire tweaked, breaks

Liberty Tire firmed pricing on its $410 million seven-year covenant-lite green first-lien term loan B at Libor plus 450 bps, the high end of the Libor plus 425 bps to 450 bps talk, eliminated a leverage-based pricing step-down and made some changes to documentation, according to a market source.

The term loan still has a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

The company’s $470 million senior secured deal (B3/B-) also includes a $60 million five-year revolver.

In the afternoon, the term loan B began trading, with levels quoted at 99¼ bid, par offered, another source added.

Morgan Stanley Senior Funding Inc., Credit Suisse Securities (USA) LLC and BMO Capital Markets are leading the deal that will fund the acquisition of the company by Energy Capital Partners from the Carlyle Group.

Closing is expected during the week of May 3.

Liberty Tire is a Pittsburgh-based provider of tire recycling services.

Kissner firms, trades

Kissner finalized the original issue discount on its roughly $893 million covenant-lite first-lien term loan B (B3/B) due March 2027 at 99.5, the wide end of the 99.5 to 99.75 talk, a market source remarked.

Pricing on the term loan is Libor plus 400 bps with a 0.75% Libor floor and the debt has 101 soft call protection for six months.

The repriced term loan freed to trade later in the day, with levels quoted at 99½ bid, par offered, a trader added.

Morgan Stanley Senior Funding Inc., BofA Securities Inc., Deutsche Bank Securities Inc., BMO Capital Markets, Goldman Sachs Bank USA, Citigroup Global Markets Inc., Citizens, Credit Suisse Securities (USA) LLC, JPMorgan Chase Bank, KKR Capital Markets and RBC Capital Markets are leading the deal that will be used to reprice an existing term loan into the company’s recently syndicated $900 million incremental covenant-lite first-lien term loan B (B3/B).

Closing on the incremental bank debt and the repricing is expected during the week of April 26.

Kissner, a subsidiary of Stone Canyon Industries Holdings LLC, is an Overland Park, Kan.-based pure-play producer and supplier of salt.

U.S. Renal revised, frees

U.S. Renal Care raised its non-fungible incremental term loan B due June 26, 2026 to $225 million from $150 million and set pricing at Libor plus 550 bps, the low end of the Libor plus 550 bps to 575 bps talk, according to a market source.

As before, the incremental term loan has a 1% Libor floor, an original issue discount of 98.5 and 101 soft call protection for one year.

Recommitments were due at 11 a.m. ET on Friday and the incremental term loan broke for trading later in the day, with levels quoted at 98¾ bid, 99½ offered, another source added.

Barclays is the left lead on the deal that will be used for general corporate purposes and to pay related fees and expenses.

U.S. Renal is a Plano, Tex.-based provider of dialysis services.

Resonetics hits secondary

Resonetics’ $360 million seven-year covenant-lite first-lien term loan freed to trade, with levels quoted at 99¾ bid, par ½ offered, a market source said.

Pricing on the first-lien term loan is Libor plus 400 bps with a 0.75% Libor floor and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months.

During syndication, the first-lien term loan was upsized from $340 million, pricing firmed at the low end of the Libor plus 400 bps to 425 bps talk and the discount tightened from 99.

The company’s $500 million of credit facilities also include a $50 million revolver and a $90 million privately placed second-lien term loan.

The second-lien loan was downsized from $100 million with the first-lien term loan upsizing.

Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, BMO Capital Markets and Antares Capital are leading the deal that will be used to refinance existing debt and fund a distribution to the holdco.

Resonetics is a MedTech contract manufacturing organization specializing in micro-manufacturing and other highly technical capabilities.

ImageFirst reworked

In more happenings, ImageFirst Holdings lifted its funded covenant-lite first-lien term loan to $220 million from $210 million, and modified the original issue discount on the funded tranche and on its $50 million delayed-draw covenant-lite first-lien term loan to 99.5 from 99, according to a market source.

Additionally, the ticking fee on the delayed-draw term loan was revised to half the margin from days 30 to 60 and the full margin thereafter, and a quarterly lender calls requirement was added, the source said.

Pricing on the term loan debt was unchanged at Libor plus 450 bps with a 0.75% Libor floor.

The company’s now $320 million of credit facilities (B3/B) also include a $50 million revolver.

Recommitments were due at noon ET on Friday and allocations are expected on Monday or Tuesday, the source added.

Antares Capital and KeyBanc Capital Markets are leading the deal that will be used to refinance existing first-lien credit facilities.

ImageFirst, a Calera Capital portfolio company, is a King of Prussia, Pa.-based provider of outsourced laundry and textile rental services with a focus on outpatient and specialty health care.

Press Ganey accelerated

Press Ganey moved up the commitment deadline for its fungible $180 million incremental first-lien term loan B (B) due July 25, 2026 to 5 p.m. ET on Monday from noon ET on Wednesday, a market source said.

Pricing on the incremental term loan is Libor plus 400 bps with a 0.75% Libor floor, in line with existing term loan pricing, and the new debt is talked with an original issue discount of 99 to 99.5.

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

Barclays, Goldman Sachs Bank USA, BMO Capital Markets and Deutsche Bank Securities Inc. are leading the deal that will be used to help fund the acquisition of a health care analytics provider for the Payer vertical.

Press Ganey is a South Bend, Ind.-based provider of patient experience analytics and performance improvement solutions to health care organizations, delivered through a proprietary software suite.

Cable One on deck

Cable One set a lender call for 1 p.m. ET on Monday to launch a $600 million seven-year covenant-lite term loan B-4, according to a market source.

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

Commitments are due at noon ET on April 30.

Wells Fargo Securities LLC, JPMorgan Chase Bank, BofA Securities Inc., Credit Suisse Securities (USA) LLC, TD Securities (USA) LLC, Truist and U.S. Bank are leading the deal that will be used to repay the $589 million term loan B that can be assumed with the purchase of Hargray Communications, a regional communications provider, to pay related fees and expenses, and for general corporate purposes.

In February, the Phoenix-based broadband communications provider announced an agreement to purchase the roughly 85% of Hargray that it does not already own. The transaction implies a $2.2 billion total enterprise value for 100% of the equity interests of Hargray on a debt-free and cash-free basis.

Closing is expected this quarter, subject to regulatory approvals and other customary conditions.

Ahead DB joins calendar

Ahead DB will hold a lender call at 4 p.m. ET on Monday to launch a roughly $631 million first-lien term loan (B1/B+), a market source remarked.

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

RBC Capital Markets, Barclays, Deutsche Bank Securities Inc., KKR Capital Markets, Macquarie Capital (USA) Inc., Truist, Regions Bank, Credit Suisse Securities (USA) LLC, TD Securities (USA) LLC and PNC Bank are leading the deal that will be used to reprice an existing first-lien term loan from Libor plus 500 bps with a 1% Libor floor.

The first-lien term loan is being paid down from $785 million with a portion of the proceeds from a $400 million senior notes offering.

Centerbridge Partners and Berkshire Partners are the sponsors.

Ahead DB is a Chicago-based IT solutions provider of enterprise hardware and software.

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