TK Elevator, Creative Artists break; AppLovin revised; Closure, LegalShield accelerated

By Sara Rosenberg

New York, March 11 – TK Elevator upsized its U.S. term loan B and set pricing at the low end of talk, and tightened the original issue discount on the U.S. loan as well as on its euro term loan B, and then the U.S. term loan freed to trade on Monday.

Another deal to make its way into the secondary market during the session was Creative Artists Agency LLC’s repriced and incremental term loan B.

In more happenings, AppLovin Corp. reduced the size of its 2028 term loan B, firmed the spread on the debt as well as on its 2030 term loan B at the low end talk and set the original issue discount on the add-on 2030 tranche at the tight end of guidance, and Closure Systems International Group Inc. and LegalShield moved up the commitment deadlines for their term loans.

Also, LifePoint Health Inc., Kestra Advisor Services Holdings A Inc., Beacon Roofing Supply Inc., Entegris Inc., AZZ Inc., Barnes Group Inc., Koppers Inc., Chefs’ Warehouse Inc. (Dairyland USA Corp.), WS Audiology (Auris Lux III Sarl), Generation Bridge Northeast LLC, Topgolf Callaway Brands Corp., Columbus McKinnon Corp., Marriott Ownership Resorts Inc. and Univar Solutions (Windsor Holdings III LLC) all released price talk with launch.

In addition, Chromalloy Corp. and Air Canada joined this week’s new issue calendar with refinancing transactions.

TK Elevator modified

TK Elevator raised its U.S. term loan B due April 2030 to $3.49 billion from $2.941 billion and firmed pricing at SOFR plus 350 basis points, the low end of the SOFR plus 350 bps to 375 bps talk, according to a market source.

Furthermore, the original issue discount on the U.S. term loan and on the company’s €500 million term loan B due April 2030 was changed to 99.75 from 99.5, the source said.

As before, the U.S. term loan has a 0.5% floor, the euro term loan has pricing of Euribor plus 400 bps with a 0% floor, and both loans (B2/B/B+) have 101 soft call protection for six months.

The term loans will be used to extend an existing $2.841 billion term loan B due 2027, refinance existing $600 million and €45 million private senior notes due 2028, and, due to the upsizing, to repay existing €500 million floating rate notes due 2027.

TK Elevator frees

On Monday, TK Elevator’s U.S. term loan broke for trading, with levels quoted at 99 7/8 bid, par 1/8 offered, another source added.

The euro term loan is expected to free up for trading on Tuesday.

Goldman Sachs, Barclays, Credit Agricole, Deutsche Bank Securities Inc. and UBS Investment Bank are the bookrunners on the deal, with Goldman the sole physical bookrunner on the U.S. loan. BofA Securities Inc., Commerzbank, Hessische Landesbank, HSBC, Intesa Sanpaolo, KKR Capital Markets, MUFG, RBC Capital Markets, SMBC, Societe Generale, Standard Chartered, TD Securities and Unicredit are passive bookrunners. Barclays is the agent.

TK Elevator, backed by Advent and Cinven, is a provider of elevators and escalators.

Creative Artists breaks

Creative Artists Agency’s $2.086 billion term loan B due Nov. 26, 2028 (B2/B+/B+) began trading as well, with levels quoted at par bid, par 3/8 offered, a market source remarked.

Pricing on the term loan is SOFR plus 325 bps with a 0% floor. Of the total term loan amount, $125 million is a fungible incremental tranche that was sold at an original issue discount of 99.875 and the remainder is a repricing of the company’s existing first-lien term loan B that was issued at par.

During syndication, pricing on the incremental loan was reduced from SOFR plus 350 bps and the discount was tightened from initial talk at launch of 99.5, and the repricing was added to the transaction.

BofA Securities Inc., BNP Paribas Securities Corp., Credit Agricole, HSBC Securities (USA) Inc., JPMorgan Chase Bank, Mizuho, RBC Capital Markets and Truist Securities are leading the deal.

The incremental loan will be used to pre-fund the remainder of the CMC Capital buyout, fund cash to the balance sheet, and pay respective fees and expenses, and the repricing will take the existing term loan down from SOFR plus 350 bps.

Creative Artists is a Los Angeles-based entertainment and sports agency.

AppLovin revised

AppLovin scaled back its term loan B due October 2028 to $1.464 billion from $1.474 billion using cash from the balance sheet, and finalized pricing on the tranche, as well as on its $2.093 billion term loan B due August 2030 at SOFR plus 250 bps, the low end of the SOFR plus 250 bps to 275 bps talk, a market source said.

The 2028 term loan will be used to reprice an existing term loan due October 2028 down from SOFR plus 310 bps with a 0.5% floor. Of the total 2030 term loan amount, $1.493 billion is to reprice an existing term loan B due August 2030 down from SOFR plus 310 bps with a 0.5% floor and $600 million is a fungible add-on that will be used to pay down revolver borrowings.

Also on Monday, the original issue discount on the 2030 add-on term loan firmed at 99.75, the tight end of the 99.5 to 99.75, the source continued.

The 2028 term loan and repriced 2030 term loan still have a par issue price, and all of the term loan debt (Ba3/BB+) still has a 0.5% floor and 101 soft call protection for six months.

Goldman Sachs Bank USA is the left lead on the deal that allocated late in the day.

AppLovin is a Palo Alto, Calif.-based provider of marketing software.

Closure Systems accelerated

Closure Systems revised the commitment deadline for its $500 million first-lien term loan due March 2029 to 5 p.m. ET on Tuesday from 5 p.m. ET on Wednesday, according to a market source.

Talk on the term loan is SOFR plus 425 bps to 450 bps with a 0% floor, an original issue discount of 99.5 and 101 soft call protection for six months.

The company’s $620 million of credit facilities (B2/B) also include a $120 million extended revolver due September 2028.

UBS Investment Bank is the left lead on the deal that will be used to refinance the company’s existing first-lien credit facilities.

Cerberus Capital Management LP is the sponsor.

Closure Systems is an Indianapolis-based designer and manufacturer of plastic and aluminum closures and capping equipment/application systems in North and Central America and Japan.

LegalShield tweaks timing

LegalShield accelerated the commitment deadline for its fungible $125 million add-on first-lien term loan due December 2028 (B3) to noon ET on Tuesday from noon ET on Wednesday, a market source remarked.

Pricing on the term loan is SOFR+CSA plus 375 bps with a 0.5% floor, and the new debt is talked with an original issue discount of 99.5 and 101 soft call protection for six months. CSA is ARRC standard of 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

RBC Capital Markets and Stone Point Capital Markets are leading the arranger group.

Proceeds will be used to repay a portion of the company’s existing second-lien debt and to pay related fees and expenses.

Pro forma for the transaction, the first-lien term loan will total $1.108 billion.

Stone Point Capital, MidOcean Partners and Further Global Capital Management are the sponsors.

LegalShield is an Ada, Okla.-based provider of legal and identity theft protection plans.

LifePoint details surface

LifePoint Health held its lender call on Monday morning and, shortly before the call began, it was revealed that the company is seeking a $1.85 billion senior secured term loan B due November 2028 (B2/B) talked at SOFR plus 475 bps to 500 bps with a 0% floor, a par issue price and 101 soft call protection for six months, according to a market source.

Cashless roll commitments are due at 5 p.m. ET on Wednesday and new money commitments are due at noon ET on Thursday, the source added.

Citigroup Global Markets Inc. is leading the deal that will be used to reprice an existing term loan B due 2028 down from SOFR plus 550 bps with a 0% floor.

LifePoint is a Brentwood, Tenn.-based operator of general acute care hospitals, community hospitals, regional health systems, physician practices, outpatient centers and post-acute care facilities.

Kestra proposed terms

Kestra Advisor Services came out with talk of SOFR plus 425 bps with a 0% floor and an original issue discount of 99 to 99.5 on its $825 million seven-year first-lien term loan with its afternoon lender call, a market source said.

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

The company’s $922.5 million of credit facilities (B2/B-) also include a $97.5 million five-year revolver.

Commitments are due at noon ET on March 19.

UBS Investment Bank is the left lead on the deal that will be used to refinance the company’s existing first-lien credit facilities.

Kestra, a Warburg Pincus LLC portfolio company, is an Austin, Tex.-based wealth management platform supporting a broad range of independent financial advisers.

Beacon hits market

Beacon Roofing Supply announced late morning that it would hold a lender call at 1 p.m. ET to launch a $1.175 billion covenant-lite term loan B due May 19, 2028 talked at SOFR plus 200 bps with a 0% floor and 101 soft call protection for six months, a market source remarked.

Of the total term loan amount, $200 million is a fungible add-on that will be used for general corporate purposes and is talked with an original issue discount of 99.75, and $975 million is a repricing of an existing term loan B down from SOFR plus 225 bps with a 0% floor that is talked with a par issue price, the source added.

Existing lender commitments are due at 5 p.m. ET on March 19 and new lender commitments are due at noon ET on March 20.

Citigroup Global Markets Inc. is leading the deal.

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

Entegris holds call

Entegris emerged in the morning with plans to hold a lender call at 11:30 a.m. ET to launch $960 million senior secured covenant-lite first-lien term loan B due July 6, 2029 talked at SOFR plus 175 bps to 200 bps with a 0% floor, a par issue price and 101 soft call protection for six months, according to a market source.

Commitments are due at 5 p.m. ET on March 19, the source added.

Morgan Stanley Senior Funding Inc., BofA Securities Inc., Barclays, Citigroup Global Markets Inc., Goldman Sachs Bank USA, PNC, Truist Securities and Wells Fargo Securities LLC are leading the deal that will be used to reprice an existing first-lien term loan due 2029 down from SOFR plus 250 bps with a 0% floor. The existing term loan will be paid down by about $350 million from around $1.3 billion in connection with the repricing.

Entegris is a Billerica, Mass.-based supplier of advanced materials and process solutions for the semiconductor and other high-tech industries.

AZZ launches

AZZ announced in the morning plans to hold a lender call at 11 a.m. ET to launch a $980 million senior secured covenant-lite term loan B due May 13, 2029 (//BB+) talked at SOFR plus 325 bps to 350 bps with a 0.5% floor, a par issue price and 101 soft call protection for six months, a market source said.

Commitments from existing lenders are due at 5 p.m. ET on Wednesday and commitments from new lenders are due at noon ET on Thursday, the source added.

Citigroup Global Markets Inc. is the left lead on the deal that will be used to reprice an existing term loan B down from SOFR plus 375 bps with a 0.5% floor.

AZZ is a Fort Worth, Tex.-based provider of hot-dip galvanizing and coil coating solutions.

Barnes repricing

Barnes Group surfaced early in the session with the intention to hold a lender call at 1 p.m. ET to launch a roughly $648 million first-lien term loan due Aug. 31, 2030 talked at SOFR plus 250 bps with no CSA, a 0% floor, a par issue price and 101 soft call protection for six months, according to a market source.

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

BofA Securities Inc. is the left lead on the deal that will be used to reprice an existing term loan B due Aug. 31, 2030 down from SOFR+10 bps CSA plus 300 bps with a 0% floor.

Barnes is a Bristol, Conn.-based developer of advanced processes, automation solutions and applied technologies for industries ranging from medical and personal care to mobility, packaging, and aerospace.

Koppers comes to market

Koppers came out early in the day with plans to hold a lender call at 1 p.m. ET to launch a $499 million covenant-lite term loan B due April 10, 2030 talked at SOFR plus 300 bps with a 0.5% floor and 101 soft call protection for six months, a market source remarked.

Of the total term loan amount, $100 million is a fungible incremental tranche that will be used to add cash to the balance sheet and is talked with an original issue discount of 99.75 to par, and $399 million is a repricing of the company’s existing term loan B down from SOFR plus 350 bps with a 0.5% floor that is talked with a par issue price, the source added.

Commitments are due at noon ET on Thursday.

Wells Fargo Securities LLC is the left lead on the deal.

Koppers is a Pittsburgh-based provider of treated wood products, wood treatment chemicals and carbon compounds.

Chefs’ Warehouse holds call

Chefs’ Warehouse emerged in the morning with plans to hold a lender call at 3 p.m. ET to launch a $272,250,000 first-lien term loan due Aug. 23, 2029 talked at SOFR plus 425 bps with no CSA, a 0.5% floor, a par issue price and 101 soft call protection for six months, according to a market source.

Consents are due at 2 p.m. ET on Thursday, the source added.

Jefferies LLC is leading the deal that will be used to reprice the company’s existing first-lien term loan due Aug. 23, 2029 down from SOFR+CSA plus 475 bps with a 0.5% floor. CSA on the existing term loan is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

Chefs’ Warehouse is a Ridgefield, Conn.-based distributor of specialty food products.

WS Audiology guidance

WS Audiology disclosed talk on its €2.768 billion equivalent U.S. and euro term loan B due February 2029 (B3/B-) with its morning lender call, a market source said.

The minimum $500 million U.S. portion of the term loan is talked at SOFR plus 425 bps to 450 bps with an original issue discount of 99, and the minimum €1 billion euro portion of the term loan is talked at Euribor plus 450 bps with a discount of 99 to 99.5, the source added. Both tranches have 101 soft call protection for six months.

Commitments for the U.S. loan are due at 5 p.m. ET on Thursday, and commitments for the euro loan are due at 1 p.m. ET on March 14.

Goldman Sachs is the physical bookrunner on the U.S. loan. Deutsche Bank, Danske Bank and JPMorgan Chase Bank are the physical bookrunners on the euro loan. HSBC Securities, Jyske Bank, Mizuho, Nordea, Nykredit, RBC Capital Markets, Santander and UBS Investment Bank are passive bookrunners. Citigroup Global Markets Inc. and MUFG are mandated lead arrangers. Deutsche Bank is the agent.

WS Audiology extending

WS Audiology will use the new term loan B to extend existing $1.2 billion and €2.1 billion term loans due February 2026, in conjunction with a €500 million equity contribution used to reduce the outstanding term loan debt by €360 million, to repay revolving credit facility borrowings and to pay transaction costs.

Additionally, the company is getting a €525 million privately placed Holdco PIK financing to refinance its existing second-lien term loan.

WS Audiology is a Denmark and Singapore-based provider of hearing aids and solutions for people with hearing challenges.

Generation Bridge talk

Generation Bridge Northeast released price talk on its roughly $846.3 million senior secured term loan B due Aug. 22, 2029 in connection with its lender call in the afternoon, a market source remarked.

The term loan is talked at SOFR plus 350 bps to 375 bps with a 0% floor, an original issue discount of 99.75 for new money and a par issue price for existing lenders, the source added.

Included in the term loan is 101 soft call protection for six months.

Commitments and consents are due at noon ET on Thursday.

Jefferies LLC is leading the deal that will be used to reprice an existing term loan B down from SOFR plus 425 bps with a 0% floor.

Generation Bridge Northeast is an owner of power generation facilities in the Northeast representing about 5 GW of generation capacity diversified across three ISO markets.

Topgolf launches

Topgolf Callaway Brands emerged in the morning with plans to hold a lender call at 1 p.m. ET to launch a $1.241 billion term loan B due March 16, 2030 talked at SOFR plus 300 bps with no CSA, a 0% floor, a par issue price and 101 soft call protection for six months, according to a market source.

Commitments are due at 11 a.m. ET on Friday, the source added.

BofA Securities Inc. is leading the deal that will be used to reprice an existing $1.241 billion term loan B down from SOFR+10 bps CSA plus 350 bps with a 0% floor.

Topgolf is a Carlsbad, Calif.-based tech enabled modern golf and active lifestyle company.

Columbus hosts call

Columbus McKinnon held a lender call at 2 p.m. ET, launching a roughly $498 million term loan due May 2028 at talk of SOFR plus 250 bps with a 0.5% floor, a par issue price and 101 soft call protection for six months, a market source said.

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

JPMorgan Chase Bank, PNC and Wells Fargo Securities LLC are leading the deal that will be used to reprice an existing term loan down from SOFR plus 275 bps with a 0.5% floor.

Columbus McKinnon is a Getzville, N.Y.-based designer, manufacturer and marketer of intelligent motion solutions for material handling.

Marriott shops loan

Marriott Ownership Resorts launched on a 2 p.m. ET lender call an $800 million seven-year term loan B (BB+) talked at SOFR plus 225 bps with a 0% floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months, a market source remarked.

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

JPMorgan Chase Bank, BofA Securities Inc., Wells Fargo Securities LLC and Truist Securities are leading the deal that will be used to refinance an existing term loan B due 2025 and to pay related fees and expenses.

Marriott Ownership, a subsidiary of Marriott Vacations Worldwide Corp., is an Orlando, Fla.-based pure-play vacation ownership company.

Univar repricing

Univar Solutions launched with an 11 a.m. ET lender call a $2.754 billion senior secured term loan B due August 2030 and a €1 billion senior secured term loan B due August 2030 talked at SOFR/Euribor plus 400 bps to 425 bps with a 0% floor, a par issue price and 101 soft call protection for six months, according to a market source.

Commitments for the U.S. term loan are due at 5 p.m. ET on Thursday, and commitments for the euro term loan are due at 1 p.m. ET on Thursday, the source added.

JPMorgan Chase Bank is the left lead on the deal that will be used to reprice the company’s exiting $2.754 billion and €1 billion term loans due 2030 down from SOFR/Euribor plus 450 bps with a 0% floor.

Univar is a Downers Grover, Ill.-based distributor of commodity and specialty chemicals and ingredients.

Chromalloy on deck

Chromalloy scheduled a lender call for 12:30 p.m. ET on Tuesday to launch a $900 million seven-year term loan B, a market source said.

RBC Capital Markets is the left lead on the deal that will be used to refinance the company’s existing term loan, which was provided by direct lenders as part of the acquisition of the business by Veritas Capital in November 2022.

Chromalloy is a Palm Beach Gardens, Fla.-based provider of proprietary engine solutions, primarily for the commercial aerospace, energy and military end markets.

Air Canada joins calendar

Air Canada will hold a lender call at 12:15 p.m. ET on Tuesday to launch a $1.1 billion seven-year term loan talked at SOFR plus 250 bps to 275 bps with a 0% floor, an original issue discount of 99.5 and 101 soft call protection for six months, according to a market source.

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

JPMorgan Chase Bank is the left lead on the deal.

The new loan will be used to refinance a portion of the company’s existing roughly $2.2 billion term loan due 2028 that is priced at SOFR plus 350 bps with a 0.75% floor, alongside a paydown of the existing term loan.

Air Canada is a Montreal-based airline company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.