Pactiv, Springs Window, Autokiniton, Global Medical, Virtus, Quest Software, CCC break

By Sara Rosenberg

New York, Sept. 17 – Pactiv Evergreen increased the size of its term loan B, added a pricing step-down, reduced the Libor floor and firmed the original issue discount at the tight end of guidance, Springs Window Fashions finalized the spread on its term loan B at the low end of talk, and Autokiniton US Holdings Inc. set the issue price on its add-on term loan B at the narrow end of guidance, and then these deals freed to trade on Friday.

Also, before breaking for trading, Global Medical Response revised the issue price on its add-on term loan B, and Virtus Investment Partners Inc. firmed the spread on its first-lien term loan B (Ba1/BB+) at the low side of guidance and changed the original issue discount.

Additionally, Quest Software modified the issue price on its add-on first-lien term loan B ahead of hitting the secondary market, and CCC Intelligent Solutions Inc.’s term loan B freed up as well.

In more happenings, IPS Corp. and Empire Today moved up the commitment deadlines for their term loan transactions, and Oryx Midstream Services Permian Basin LLC and Southern Veterinary Partners LLC released price talk with launch.

Furthermore, Therma Holdings (Refficiency Holdings), Lakeshore Learning (Lakeshore Intermediate LLC) and Catalent Inc. joined the near-term primary calendar.

Pactiv reworked, frees

Pactiv Evergreen raised its seven-year covenant-lite senior secured term loan B to $1.015 billion from $800 million, trimmed the Libor floor to 0.5% from 0.75% and set the original issue discount at 99.5, the tight end of the 99 to 99.5 talk, according to a market source.

The spread on the term loan B remained at Libor plus 350 basis points, but a 25 bps step-down was added at 4.8x first-lien net leverage, the source said.

As before, the term loan has 101 soft call protection for six months.

Recommitments were due at 2 p.m. ET on Friday, and the term loan started trading later in the day, with levels quoted at 99¾ bid, par ¼ offered, another source added.

Credit Suisse Securities (USA) LLC and HSBC Securities (USA) Inc. are leading the deal that will be used with $500 million of senior secured notes to fund the $380 million acquisition of Fabri-Kal Corp. from Two Mitts Inc. and refinance in full, instead of in part as originally proposed, an outstanding term loan B due 2023.

Closing is expected late in the third quarter or early in the fourth quarter.

Pactiv is a Lake Forest, Ill.-based manufacturer and distributor of fresh foodservice and fresh beverage packaging. Fabri-Kal is a manufacturer of foodservice and custom thermoformed plastic packaging solutions.

Springs tweaked, breaks

Springs Window Fashions set pricing on its $1.625 billion term loan B (B2/B-) at Libor plus 400 bps, the low end of the Libor plus 400 bps to 425 bps talk, and eliminated a leverage-based step-down, a market source said.

The 0.75% Libor floor, original issue discount of 99 and 101 soft call protection for six months on the term loan were unchanged.

During the session, the term loan freed to trade, with levels quoted at 99¼ bid, 99¾ offered, another source added.

JPMorgan Chase Bank, Deutsche Bank Securities Inc., Mizuho, Nomura, Jefferies LLC and KKR Capital Markets are leading the loan that will be used with $625 million of senior notes to help fund the buyout of the company by Clearlake Capital Group LP from AEA Investors LP and British Columbia Investment Management Corp.

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

Springs Window is a Middleton, Wis.-based manufacturer and seller of custom window coverings.

Autokiniton updated, trades

Autokiniton finalized the original issue discount on its $375 million add-on senior secured covenant-lite term loan B due April 2028 at 99.5, the tight end of the 99 to 99.5 talk, a market source remarked.

Pricing on the add-on term loan is Libor plus 450 bps with a 25 bps step-down inside 2.61x total net first-lien leverage and a 0.5% Libor floor, in line with existing term loan B pricing, and the debt has 101 soft call protection for six months.

Previously in syndication, the add-on term loan was upsized from $300 million.

Citigroup Global Markets Inc. and BofA Securities Inc. are leading the deal that will fund a dividend to shareholders. The company sought consent from lenders for a one-time restricted payment basket for the dividend.

Commitments and amendment consents continued to be due at noon ET on Friday and the add-on term loan began trading in the afternoon, with levels quoted at par ¼ bid, par ¾ offered, another source added.

Closing is expected on Wednesday.

Autokiniton is a New Boston, Mich.-based provider of automotive components and assembly solutions.

Global Medical modified, breaks

Global Medical Response tightened the issue price on its fungible $480 million add-on term loan B due March 2025 to par from talk in the range of 99.5 to 99.75, according to a market source.

Pricing on the add-on term loan is Libor plus 425 bps with a 1% Libor floor.

Previously in syndication, the add-on term loan was upsized from $300 million.

On Friday, the add-on term loan broke for trading, with levels quoted at par ¼ bid, par ½ offered, another source added.

KKR Capital Markets is the left lead on the deal that will be used to refinance a portion of the company’s preferred equity.

The new debt is being added on to the company’s existing $1.404 billion term loan B due March 2025.

Global Medical Response is a Greenwood Village, Colo.-based medical transportation and response company.

Virtus revised, trades

Virtus Investment Partners firmed pricing on its $275 million seven-year senior secured covenant-lite first-lien term loan B (Ba1/BB+) at Libor plus 225 bps, the low end of the Libor plus 225 bps to 250 bps talk, and adjusted the original issue discount to 99.5 from 99.25, a market source said.

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

Recommitments were due at 2 p.m. ET on Friday and the term loan made its way into the secondary market in the afternoon, with levels quoted at 99¾ bid, par ¼ offered, a trader added.

Morgan Stanley Senior Funding Inc., Barclays, JPMorgan Chase Bank, BofA Securities Inc. and RBC Capital Markets are leading the deal that will be used to refinance an existing term loan B, for general corporate purposes and to pay related fees, expenses and original issue discount.

Closing is expected on Sept. 24.

Virtus is a Hartford, Conn.-based provider of investment management products and services.

Quest tightens, frees up

Quest Software changed the original issue discount on its fungible $330 million add-on first-lien term loan B (B2/B) due May 2025 to 99.5 from 99.27, according to a market source.

Pricing on the add-on term loan is Libor plus 425 bps with a 0% Libor floor.

Recommitments were due at noon ET on Friday and the add-on term loan freed up later in the day, with levels quoted at 99¾ bid, par 1/8 offered, another source added.

Goldman Sachs Bank USA is leading the deal that will be used to support the acquisition of OneLogin. Credit Suisse is the agent.

Quest Software is an Aliso Viejo, Calif.-based provider of integrated infrastructure software for managing systems, data and applications.

CCC hits secondary

CCC Intelligent Solutions’ $800 million term loan B (B1/B) also broke for trading, with levels quoted at par bid, par 3/8 offered, a market source said.

Pricing on the term loan is Libor plus 250 bps with a 0.5% 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 lowered from Libor plus 275 bps and the discount was changed from 99.5.

BofA Securities Inc. is the left lead on the deal that will be used to refinance an existing term loan.

CCC is a Chicago-based SaaS platform powering the property and casualty insurance economy.

IPS tweaks timing

In other news, IPS accelerated the commitment deadline for its $525 million seven-year first-lien term loan (B1/B-) and $105 million seven-year delayed-draw first-lien term loan (B1/B-) to 2 p.m. ET on Monday from noon ET on Tuesday, a market source remarked.

The funded and delayed-draw first-lien term loan debt, which is being sold as a strip, is talked at Libor plus 375 bps to 400 bps with two leverage-based pricing step-downs and one additional step-down upon completion of an initial public offering, a 0.5% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

The ticking fee on the delayed-draw first-lien term loan is half the margin from days 46 to 90 and the full margin thereafter.

The company’s $930 million of credit facilities also include a $90 million five-year revolver (B1/B-) and a $210 million eight-year privately placed second-lien term loan (Caa1/CCC).

IPS lead banks

Jefferies LLC, Credit Suisse Securities (USA) LLC, Apollo, BMO Capital Markets, MUFG, Nomura, SMBC and KeyBanc Capital Markets are leading IPS’ credit facilities.

Proceeds will be used to help fund the buyout of the company by Centerbridge Partners LP from Cypress Performance Group LLC.

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

IPS is a Compton, Calif.-based provider of specialized, highly engineered industrial products including solvent cements, rough plumbing and roofing products, and structural and surface adhesives.

Empire accelerated

Empire Today moved up the commitment deadline for its fungible $170 million incremental first-lien term loan to 5 p.m. ET on Monday from noon ET on Tuesday, according to a market source.

The incremental term loan is priced at Libor plus 500 bps with a 0.75% Libor floor, and is talked with an original issue discount of 99 and 101 soft call protection for six months.

The company is also getting a $60 million revolver.

KKR Capital Markets and Jefferies LLC are leading the deal that will be used to support the acquisition of the company by Charlesbank Capital Partners.

Closing is expected in the third quarter, subject to customary conditions and regulatory approvals.

The company’s existing $425 million term loan is getting ported over.

Empire Today is a Northlake, Ill.-based provider of installed home improvements and home furnishings.

Oryx discloses guidance

Oryx Midstream Services held its lender call on Friday afternoon and announced price talk on its $1.5 billion seven-year senior secured term loan B (Ba3/BB-/BB) at Libor plus 350 bps with a 0.5% Libor floor and an original issue discount of 99 to 99.5, a market source remarked.

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

Commitments are due at 5 p.m. ET on Sept. 29, the source added.

Barclays, RBC Capital Markets, Goldman Sachs Bank USA, Truist and Wells Fargo Securities LLC are leading the deal that will be used to refinance existing debt, and fund working capital needs and other general corporate purposes.

Oryx Midstream is a Midland, Tex.-based midstream crude operator in the Permian Basin.

Southern Veterinary talk

Southern Veterinary Partners LLC held its lender meeting at noon ET and, a few hours before the event kicked off, original issue discount talk of 99.5 to 99.75 surfaced on its fungible $150 million incremental first-lien term loan due October 2027, a market source said.

Like the existing first-lien term loan, the incremental first-lien term loan is priced at Libor plus 400 bps with a 1% Libor floor and has 101 soft call protection through Oct. 5.

Commitments are due at noon ET on Wednesday.

The company is also getting a $100 million privately placed delayed-draw first-lien term loan.

Jefferies LLC is leading the deal that will be used to fund the company’s acquisition pipeline.

Southern Veterinary is a Birmingham, Ala.-based provider of general practice veterinary services.

Therma readies deal

Therma Holdings scheduled a lender call for 1 p.m. ET on Monday to launch a fungible $350 million incremental first-lien term loan due December 2027 and a fungible $67,816,310 incremental first-lien delayed-draw term loan due December 2027, according to a market source.

Pricing on the incremental term loan debt is Libor plus 400 bps with a 0.75% Libor floor, in line with existing first-lien term loan pricing, and the incremental delayed-draw ticking fee is the full spread at close, same as the existing delayed-draw fee.

Jefferies LLC, Societe Generale, BMO Capital Markets Corp. and MUFG are leading the deal that will be used to fund acquisitions.

Pro forma for the transaction, the first-lien term loan will total about $738,050,000 and the first-lien delayed-draw term loan will total about $142,816,310, the source added.

Therma Holdings is a San Jose, Calif.-based full life-cycle energy solutions provider.

Lakeshore on deck

Lakeshore Learning will hold a lender call at 1 p.m. ET on Monday to launch a $580 million seven-year first-lien term loan, a market source remarked.

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

Jefferies LLC, BMO Capital Markets, Macquarie Capital (USA) Inc., Citizens and KeyBanc Capital Markets are leading the deal that will be used to help fund the buyout of the company by Leonard Green & Partners.

Lakeshore is a Carson, Calif.-based developer, distributor, and retailer of educational products and classroom furniture, primarily serving the Early Childhood Education and K-5 markets.

Catalent coming soon

Catalent set a lender call for 11:30 a.m. ET on Monday to launch a fungible $450 million incremental term loan B talked with an original issue discount of 99 to 99.5, according to a market source.

Pricing on the incremental term loan is Libor plus 200 basis points with a 0.5% Libor floor, in line with existing term loan B pricing.

Commitments are due at noon ET on Sept. 24, the source added.

JPMorgan Chase Bank, Barclays, BofA Securities Inc., RBC Capital Markets, Mizuho, Goldman Sachs Bank USA, Wells Fargo Securities LLC and UBS Investment Bank are leading the deal that will be used to help fund the acquisition of Bettera Holdings LLC, a Plano, Tex.-based manufacturer of gummy, soft chew and lozenge nutritional supplements, from Highlander Partners LP for $1 billion, subject to customary adjustments.

Closing is expected before the end of the year.

Catalent is a Somerset, N.J.-based provider of development sciences and manufacturing platforms for medicines.

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