Shearer’s Foods breaks; Lightpath, Waystar, Pactiv revised; Delta, Aveanna accelerated

By Sara Rosenberg

New York, Sept. 15 – Shearer’s Foods LLC’s first-lien term loan made its way into the secondary market on Tuesday, with levels quoted above its original issue discount.

Over in the primary market, Cablevision Lightpath set pricing on its first-lien term loan B at the low end of revised guidance and modified the issue price, and Waystar (Navicure) trimmed the spread and tightened the original issue discount on its incremental first-lien term loan B.

Also, Pactiv Evergreen increased the size of its first-lien term loan, lowered the spread and changed the issue price, and Delta Air Lines SkyMiles and Aveanna Healthcare LLC moved up the commitment deadlines for their term loans.

Furthermore, Clarivate plc, Fortress Investment Group FinCo I LLC, Vistra, SUSE (Marcel Lux IV Sarl) and Aimbridge Hospitality disclosed price talk with launch, and PCI Pharma Services (Packaging Coordinators Midco Inc.) and AmWINS Group Inc. joined this week’s new issue calendar.

Shearer’s frees up

Shearer’s Foods $1.075 billion seven-year covenant-lite first-lien term loan (B2) began trading on Tuesday morning, with levels quoted at 99½ bid, par offered, according to a market source.

Pricing on the first-lien term loan is Libor plus 400 basis points with a ratings-based step-down and a 0.75% Libor floor. The debt was sold at an original issue discount of 99.25 and has 101 soft call protection for six months.

On Monday, the first-lien term loan was upsized from $985 million as a privately placed second-lien term loan was downsized to $250 million from $340 million, pricing was lowered from Libor plus 425 bps, the step-down was added, the Libor floor was reduced from 1% and the discount was tightened from 98.5.

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

Shearer’s Foods is a Massillon, Ohio-based contract manufacturer of snack foods.

Lightpath updated

Switching to the primary market, Cablevision Lightpath set the spread on its $600 million seven-year first-lien term loan B (B1/B+) at Libor plus 325 bps, the low end of revised talk of Libor plus 325 bps to 350 bps and down from initial talk in the range of Libor plus 350 bps to 375 bps, and adjusted the original issue discount to 99.5 from 99, a market source said.

The term loan still has a 0.5% Libor floor, 101 soft call protection for six months, and a ticking fee of half the margin from days 46 to 90 and the full margin thereafter.

Recommitments were due at 1:30 p.m. ET on Tuesday, the source added.

Goldman Sachs Bank USA, RBC Capital Markets, Deutsche Bank Securities Inc. and Morgan Stanley Senior Funding Inc. are leading the deal that will be used with $865 million of notes to help fund the acquisition of a 49.99% interest in the company by Morgan Stanley Infrastructure Partners from Altice USA for an implied enterprise value of $3.2 billion.

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

Cablevision Lightpath is an enterprise-grade fiber connectivity, bandwidth and managed services provider in the New York metropolitan area.

Waystar flexes

Waystar cut pricing on its non-fungible $620 million incremental first-lien term loan B (B2/B-/B+) due October 2026 to Libor plus 400 bps from Libor plus 425 bps, and changed the original issue discount to 99.75 from revised talk of 99.5 and initial talk of 98.5, a market source remarked.

As before, the term loan has a 0.75% Libor floor and 101 soft call protection for six months.

J.P. Morgan Securities LLC is leading the deal that will be used to fund the acquisition of eSolutions, a revenue cycle technology company, from Francisco Partners.

Closing is expected this year, subject to customary conditions and approvals.

Waystar is a provider of health care payments software. The company is backed by EQT, Canada Pension Plan Investment Board and Bain Capital.

Pactiv changes surface

Pactiv Evergreen raised its covenant-lite first-lien term loan (B+) due February 2026 to $1.25 billion from $1 billion, trimmed pricing to Libor plus 325 bps from Libor plus 350 bps and moved the original issue discount to 99.75 from 99.5, according to a market source.

The term loan still has a 0% Libor floor and 101 soft call protection for six months.

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

Credit Suisse Securities (USA) LLC and HSBC Securities (USA) Inc. are leading the deal that will be used to refinance existing debt.

Other funds for the refinancing will come from $750 million of secured bonds, which were downsized from $1 billion with the term loan upsizing.

Pactiv, formerly known as Reynolds Group Holdings Inc., is a Lake Forest, Ill.-based manufacturer and distributor of fresh foodservice and food merchandising products and fresh beverage cartons.

Delta SkyMiles accelerated

Delta Air Lines SkyMiles moved up the commitment deadline for its $2.5 billion seven-year senior secured term loan B (Baa1//BBB) to noon ET on Wednesday from noon ET on Thursday, a market source said.

Talk on the term loan is Libor plus 425 bps to 450 bps with a 1% Libor floor, an original issue discount of 98.5, and call protection of non-callable for three years, then at 104 in year four and 102 in year five.

Barclays and Goldman Sachs Bank USA are leading the deal that will be used with $4 billion of senior secured notes for general corporate purposes and to support the company’s liquidity position.

Delta is an Atlanta-based airline company. SkyMiles is a newly formed bankruptcy-remote Cayman special purpose vehicle to hold all SkyMiles program collateral.

Aveanna tweaks timing

Aveanna Healthcare accelerated the commitment deadline for its non-fungible $185 million incremental first-lien term loan due March 16, 2024 to 5 p.m. ET on Wednesday from 5 p.m. ET on Thursday, a market source remarked.

Talk on the term loan is Libor plus 625 bps to 650 bps with a 1% Libor floor, an original issue discount of 97 to 98 and 101 soft call protection for one year.

Barclays, BMO Capital Markets and Jefferies LLC are leading the deal that will be used for general corporate purposes including tuck-in acquisitions, fees and expenses, and balance sheet cash.

Bain Capital and J.H. Whitney are the sponsors.

Aveanna Healthcare is an Atlanta-based home health care company.

Clarivate details emerge

Clarivate held its call on Tuesday, launching a $1.6 billion incremental senior secured covenant-lite term loan B (B2) due Oct. 31, 2026 talked at Libor plus 300 bps to 325 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

Commitments are due at 5 p.m. ET on Sept. 22, the source continued.

Citigroup Global Markets Inc., BofA Securities Inc., RBC Capital Markets, Barclays, HSBC Securities (USA) Inc. and J.P. Morgan Securities LLC are leading the deal. BofA is the administrative agent.

The term loan is being done with the company’s combination with CPA Global and will be used with cash on hand to refinance about $2 billion of CPA Global’s debt. CPA Global shareholders will receive about 218 million Clarivate ordinary shares, representing 35% pro forma fully diluted ownership of Clarivate.

Closing is expected in early October.

Clarivate is a Philadelphia-based provider of comprehensive intellectual property and scientific information, decision support tools and services. CPA Global is a provider of intellectual property software and tech-enabled services.

Fortress proposed terms

Fortress Investment Group came out with talk of Libor plus 250 bps to 275 bps with a 0% Libor floor and an original issue discount of 99.5 on its $950 million covenant-lite term loan B due June 27, 2025 that launched with a call in the morning, a market source said.

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

Deutsche Bank Securities Inc. and Mizuho are leading the deal that will be used to amend and extend from December 2022 an existing term loan B.

Roughly $100 million of the existing $1.046 billion term loan B will be paid down in connection with this transaction.

Commitments from new and existing lenders are due at 4 p.m. ET on Friday.

Fortress Investment is an alternative investment management firm.

Vistra price guidance

Vistra held its lender call in the morning and announced talk on its $28 million equivalent U.S. and/or euro incremental first-lien term loan and its amended and extended U.S. and euro first-lien term loans at Libor/Euribor plus 375 bps to 400 bps with an original issue discount of 99, according to a market source.

The extended U.S. term loan has a 1% Libor floor and the extended euro term loan has a 0% floor, and both tranches have 101 soft call protection for six months.

Current pricing on the U.S. term loan is Libor plus 300 bps with a 1% Libor floor and current pricing on the euro term loan is Euribor plus 325 bps with a 0% floor.

The company is looking to extend its existing $562 million first-lien term loan B and €411 million first-lien term loan B by three years to October 2025. An amendment and extension is also being sought for the existing revolver.

Vistra lead banks

Goldman Sachs Bank USA, HSBC Securities (USA) Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., BNP Paribas Securities Corp. and Morgan Stanley Senior Funding Inc. are leading Vistra’s debt transaction.

Commitments are due on Sept. 22, the source added.

The incremental term loan and $40 million drawn under the revolver will be used to refinance in full the company’s outstanding second-lien term loans.

With the extension, the company plans to make certain amendments to the documentation of the existing credit agreement.

Vistra is an integrated global player in the corporate and trust services industry.

SUSE launches

SUSE launched with a morning call a non-fungible $300 million seven-year incremental first-lien term loan (B) talked at Libor plus 400 bps with a 0.75% Libor floor, an original issue discount of 98.5 to 99 and 101 soft call protection for six months, according to a market source.

Commitments are due at noon ET on Sept. 22, the source added.

J.P. Morgan Securities LLC, BofA Securities Inc., Deutsche Bank Securities Inc., Goldman Sachs Bank USA and Jefferies LLC are leading the deal that will be used to help fund the acquisition of Rancher Labs, a Cupertino, Calif.-based open source software company.

Closing is expected before the end of October, subject to customary conditions including receipt of regulatory approvals.

SUSE is a Nuremberg, Germany-based provider of open source infrastructure software for large enterprises.

Aimbridge shops loan

Aimbridge Hospitality held a lender call during the session to launch a non-fungible $150 million term loan B due 2026 talked at Libor plus 600 bps with a 0.75% Libor floor and an original issue discount of 97 to 98, a market source said.

J.P. Morgan Securities LLC is leading the deal that will be used for general corporate purposes.

Aimbridge is a Plano, Tex.-based hotel management firm.

PCI on deck

PCI Pharma Services scheduled a bank meeting for 11 a.m. ET on Thursday to launch $995 million of first-lien credit facilities, split between a $125 million five-year revolver and an $870 million seven-year senior secured first-lien term loan, a market source remarked.

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

The company is also getting a $350 million eight-year senior secured second-lien term loan that has been privately placed, the source added.

Jefferies LLC, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Antares Capital Markets are leading the deal that will be used to help fund the buyout of the company by Kohlberg & Co. from Partners Group, Thomas H. Lee Partners and Frazier Healthcare Partners. Mubadala Investment Co. will also become a significant investor in PCI. Partners Group will retain a meaningful minority equity stake in the company.

PCI is a Philadelphia-based provider of outsourced pharmaceutical services.

AmWINS readies loan

AmWINS set a lender call for 10 a.m. ET on Wednesday to launch a $100 million incremental first-lien term loan B, according to a market source.

Goldman Sachs Bank USA, Barclays, J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc. and Wells Fargo Securities LLC are leading the deal that will be used with a $200 million unsecured debt offering and cash on hand to fund a dividend to shareholders.

AmWINS is a Charlotte, N.C.-based specialty insurance broker.

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