Ascensus, Conservice break; Veritas, Tutor Perini, GlobalLogic, Smart Start, PetVet revised

By Sara Rosenberg

New York, Aug. 13 – Ascensus (AqGen Ascensus Inc.) upsized its first-lien term loan and firmed the spread at the low side of talk before freeing up for trading on Thursday, and Conservice Midco LLC’s incremental first-lien term loan broke as well.

In other news, Veritas Technologies downsized its U.S. and euro term loans and finalized pricing on the debt at the wide end of guidance, and Tutor Perini raised its first-lien term loan B amount, set the spread at the low end of talk, added a step-down and changed the original issue discount.

Also, GlobalLogic Holdings Inc. cut pricing on its incremental term loan B and revised the original issue discount, and Smart Start Inc. tightened the spread and issue price on its term loan B for a second time due to strong demand.

Furthermore, PetVet Care Centers LLC increased the size of its incremental term loan B-3 and modified the original issue discount, and AmeriLife Holdings LLC upsized its incremental first-lien term loan and adjusted the issue price.

Additionally, PLZ Aeroscience Corp. announced price talk on its incremental term loan with launch, and Avianca joined the near-term primary calendar.

Ascensus updated, trades

Ascensus lifted its covenant-lite first-lien term loan (B2/B-) due December 2026 to $1.102 billion from $1.052 billion and firmed pricing at Libor plus 400 basis points, the low end of the Libor plus 400 bps to 425 bps talk, a market source said.

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

Recommitments were due at 2:30 p.m. ET on Thursday and the term loan began trading later in the day, with levels quoted at 99¼ bid, 99¾ offered, another source added.

Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Barclays, Deutsche Bank Securities Inc. and Capital One are leading the deal that will be used to refinance existing first-lien term loans.

Ascensus is a Dresher, Pa.-based tech-enabled solutions provider focused on recordkeeping and administration in the U.S. tax advantages savings market.

Conservice hits secondary

Conservice’s fungible$75 million incremental covenant-lite first-lien term loan due May 2027 broke too, with levels quoted at 98 bid, 98¾ offered, a market source remarked.

The incremental term loan is priced at Libor plus 425 bps with a 0% Libor floor and has 101 soft call protection through May 2021, same as the existing first-lien term loan, and was issued at a discount of 98.

During syndication, the incremental loan was upsized from $50 million and the discount was changed from talk in the range of 97 to 97.5.

Credit Suisse Securities (USA) LLC and Golub are leading the deal that will be used to fund tuck-in acquisitions and for general corporate purposes.

Conservice is a Logan, Utah-based provider of utility management and billing software solutions to property owners and managers.

Veritas tweaked

Back in the primary market, Veritas Technologies scaled back its U.S. five-year term loan B to $1.325 billion from $1.55 billion and its euro five-year term loan B to €550 million from €690 million, finalized the spread at Libor/Euribor plus 550 bps, the high end of the Libor/Euribor plus 525 bps to 550 bps talk, and set the original issue discount at 98, the wide end of the 98 to 98.5 talk, according to a market source.

The term loans still have a 1% floor.

Recommitments were due at noon ET on Thursday, the source added.

BofA Securities Inc. and Morgan Stanley Senior Funding Inc. are leading the deal.

The new loans will be used with $1 billion of senior secured notes, which were upsized from $600 million, and cash on hand to repay outstanding term loan and revolver borrowings, and to pay related fees and expenses.

Veritas is a Santa Clara, Calif.-based provider of data protection and availability.

Tutor Perini reworked

Tutor Perini lifted its seven-year first-lien term loan B (Ba3/BB-/BB+) to $425 million from $375 million, firmed pricing at Libor plus 475 bps, the low end of the Libor plus 475 bps to 500 bps talk, added a 25 bps step-down at 0.5x below closing date net total leverage and modified the original issue discount to 98 from 97.5, a market source remarked.

Additionally, the incremental free and clear basket was changed to $173.5 million or 50% of EBITDA from $260 million or 75% of EBITDA, the incremental pari passu prong was reduced to a first-lien net leverage ratio of 1.35x from 2.25x, the excess cash flow sweep was revised to fix the ratio tests so the sweep is 50% for the first year and on a grid after 2021, the leverage governor under available amount was lowered to 2.25x total net leverage from 2.5x, the EBITDA definition was changed to reduce the cap on business optimization add-back to 20% from 25%, and no pro rata share voting was removed, the source continued.

The term loan still has a 1% Libor floor and 101 soft call protection for one year.

Tutor Perini leads

Goldman Sachs Bank USA, BMO Capital Markets, Deutsche Bank Securities Inc. and M&T Bank are leading Tutor Perini’s term loan B.

Recommitments were due at 5 p.m. ET on Thursday, the source added.

The new loan will be used to repay borrowings under the company’s existing revolving credit facility, to repurchase or retire outstanding convertible notes due 2021, to pay transaction-related fees and for other general corporate purposes.

Tutor Perini is a Los Angeles-based provider of diversified general contracting, design-build and self-perform construction services for public and private clients.

GlobalLogic flexes

GlobalLogic reduced pricing on its $525 million seven-year incremental term loan B (B) to Libor plus 375 bps from talk in the range of Libor plus 400 bps to 425 bps, and changed original issue discount talk to a range of 98.75 to 99 from 98 before finalizing at 99, according to a market source.

The term loan still has a 0.75% Libor floor and 101 soft call protection for six months.

J.P. Morgan Securities LLC is the left lead on the deal that will be used to fund a dividend.

GlobalLogic is a San Jose, Calif.-based digital product engineering services provider.

Smart Start revised

Smart Start cut pricing on its $350 million term loan B (B2/B) to Libor plus 475 bps from revised talk of Libor plus 500 bps and initial talk in the range of Libor plus 525 bps to 550 bps, a market source said.

Also, the original issue discount on the term loan was tightened to 99 from revised talk of 98.5 and initial talk in the range of 97 to 98, the source added.

As before, the term loan has a 1% Libor floor and 101 soft call protection for six months.

BNP Paribas Securities Corp. is leading the deal that will be used to refinance existing first- and second-lien term loans.

Smart Start is a Grapevine, Tex.-based provider of ignition interlocks and portable devices for alcohol monitoring.

PetVet changes emerge

PetVet raised its fungible incremental first-lien term loan B-3 due February 2025 to $250 million from $200 million and adjusted the original issue discount to 99.75 from 99, according to a market source.

The incremental term loan is priced at Libor plus 425 bps with a 1% Libor floor, in line with existing term loan B-3 pricing, and has 101 soft call protection for six months.

Commitments were due at 5 p.m. ET on Thursday, moved up from 1 p.m. ET on Monday, the source continued.

Jefferies LLC and KKR Capital Markets are leading the deal that will be used to finance an acquisition and, as a result of the upsizing, to fund cash to the balance sheet for future acquisitions and general corporate purposes.

PetVet is a Westport, Conn.-based acquirer and operator of general practice and specialty veterinary hospitals for companion animals.

AmeriLife modified

AmeriLife lifted its fungible incremental covenant-lite first-lien term loan due March 18, 2027 to $95 million from $80 million and tightened the original issue discount to 98.5 from 98, a market source remarked.

Like the existing first-lien term loan, the incremental term loan is priced at Libor plus 400 bps with a 0% Libor floor and has 101 soft call protection through Sept. 18.

Recommitments were due at 5 p.m. ET on Thursday, the source added.

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to fund tuck-in acquisitions and for general corporate purposes.

In connection with the incremental first-lien term loan upsizing, the company’s second-lien tack-on term loan was reduced by $15 million to $30 million.

AmeriLife is a Clearwater, Fla.-based insurance marketing organization.

PLZ reveals guidance

In more primary news, PLZ Aeroscience held its lender call on Thursday and announced talk on its non-fungible $360 million incremental term loan due Aug. 2, 2026 at Libor plus 425 bps with a 1% Libor floor, an original issue discount of 98.5 and 101 soft call protection for six months, according to a market source.

The company is also getting a $25 million incremental revolver.

Commitments are due on Aug. 25, the source added.

Antares Capital is leading the deal that will be used to repay existing debt and fund certain acquisitions.

The incremental term loan is co-terminus with the company’s existing $640.8 million term loan.

PLZ, a portfolio company of Pritzker Private Capital, is a Downers Grove, Ill.-based producer of specialty aerosol and liquid packaging for various consumer and industrial products.

Avianca on deck

Avianca set a lender call for 11 a.m. ET on Friday to launch a $1.3 billion tranche A debtor-in-possession delayed-draw term loan B due 18 months from the Chapter 11 filing date, of which $900 million is new money and about 2/3 will be drawn at close, a market source said.

Talk on the term loan is Libor plus 1,000 bps to 1,050 bps cash/Libor plus 1,150 bps to 1,200 bps PIK with a 0.5% Libor floor that is payable in cash or in-kind at the borrower’s election, and an original issue discount of 98 with a back-end fee of 75bps, the source continued.

The loan has an undrawn commitment fee of 50 bps from days 0 to 30, 33% of the drawn spread from days 31 to 60, 50% of the drawn spread from days 61 to 120 and 100% of the drawn spread thereafter.

Commitments are due at 5 p.m. ET on Aug. 20, the source added.

Goldman Sachs Bank USA and J.P. Morgan Securities LLC are leading the deal that will be used to fund expenses and operations in Chapter 11, to roll-up of existing pre-petition claims and for general corporate purposes.

Avianca is a Bogota, Colombia-based airline holding company.

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