Global Medical, EFS Cogen, Allegro, GCI break; PCI, ASP Navigate, Barrette, Hyland revised

By Sara Rosenberg

New York, Sept. 24 – Global Medical Response upsized its first-lien term loan B and firmed pricing at the high end of talk before freeing up for trading on Thursday, and deals from EFS Cogen Holdings I LLC (Linden), Allegro Microsystems Inc. and GCI LLC hit the secondary market as well.

In other news, PCI Pharma Services (Packaging Coordinators Midco Inc.) shifted some funds between its first-and second-lien term loans, set the spread on the first-lien debt at the low end of guidance and adjusted the original issue discount.

Also, ASP Navigate Acquisition Corp. (Life Sciences) increased the size of its first-lien term loan and trimmed pricing, and Barrette (LEB Holdings (USA) Inc.) cut the spread on its first-lien term loan, added a step-down and modified the issue price.

Furthermore, Hyland Software Inc. raised its incremental first-lien term loan size and revised the original issue discount, and Closure Systems International Group Inc. moved up the commitment deadline for its incremental first-lien term loan.

Additionally, Ahead DB Holdings, BrightSpring Health Services (Phoenix Guarantor Inc.), Jefferies Finance LLC, American Residential Services LLC, Array Technologies Inc., Press Ganey (Azalea TopCo Inc.), Red Ventures LLC and RBmedia released price talk with launch, and White Cap (AppleCaramel Buyer LLC) joined the near-term primary calendar.

Global Medical updated, trades

Global Medical Response lifted its five-year first-lien term loan B to $1.64 billion from a revised amount of $1.5 billion and an initial size of $1.37 billion, and set pricing at Libor plus 475 basis points, the high end of the Libor plus 450 bps to 475 bps talk, according to a market source.

The term loan still has a 1% Libor floor, an original issue discount of 98 and 101 soft call protection for six months.

On Thursday, the term loan B emerged in the secondary market and was quoted at 98 bid, 98½ offered, another source added.

KKR Capital Markets LLC and Morgan Stanley Senior Funding Inc. are leading the deal that will be used to help refinance an existing $1.87 billion term loan B due 2022 and 6 3/8% senior notes due 2023.

Other funds for the refinancing will come from $600 million of bonds, which were downsized from a revised amount of $740 million but upsized from an initial size of $500 million.

Global Medical, previously known as Air Medical, is a Greenwood Village, Colo.-based provider of medical care, primarily in the areas of emergency and patient relocation services.

EFS Cogen frees up

EFS Cogen Holdings’ $1 billion seven-year term loan B broke for trading too, with levels quoted at 99¾ bid, par offered in the late afternoon, according to a trader.

Pricing on the term loan is Libor plus 350 bps with a 1% 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 term loan was upsized from $950 million, pricing was lowered from Libor plus 375 bps and the discount was changed from 99.

The company’s $1.1 billion of senior secured credit facilities also include a $100 million five-year first-out revolver priced at Libor plus 325 bps with a 0% Libor floor.

Jefferies LLC, Barclays, Citigroup Global Markets Inc., MUFG, BMO Capital Markets and Investec are leading the deal that will be used to refinance existing debt and fund a distribution to the parent.

EFS Cogen is the owner of a 974 MW natural gas-fired combined cycle cogeneration plant located in Linden, N.J.

Allegro hits secondary

Allegro Microsystems’ $325 million seven-year covenant-lite first-lien term loan (B1/B+) began trading as well, with levels quoted at 99¼ bid, par offered, a market source said.

Pricing on the term loan is Libor plus 425 bps with a 25 bps step-down after 0.5x of first-lien net leverage deleveraging and a 25 bps step-down after an initial public offering, and a 0.5% Libor floor. The debt was sold at an original issue discount of 99 and has 101 soft call protection for six months.

During syndication, pricing on the term loan was reduced from talk in the range of Libor plus 450 bps to 475 bps, the step-downs were added and the discount was tightened from 98.5.

Credit Suisse Securities (USA) LLC, Barclays, Mizuho and SMBC are leading the deal that will be used to refinance a revolver draw and to fund a shareholder distribution.

Allegro is a Manchester, N.H.-based provider of magnetic sensor and power integrated circuits.

GCI loan breaks

GCI’s $400 million five-year term loan B also freed up, with levels quoted at 99¾ bid, par ¼ offered, according to a market source.

Pricing on the term loan is Libor plus 275 bps with a 0.75% Libor floor. The debt was sold at an original issue discount of 99.5 on new money and 99.75 on existing, and has 101 soft call protection for six months.

During syndication, the term loan was upsized from $350 million.

Truist Securities Inc., J.P. Morgan Securities LLC, Credit Agricole, BofA Securities Inc., Cobank, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., MUFG and TD Securities (USA) LLC are leading the deal.

Proceeds will be used with $600 million of bonds, upsized recently from $350 million, to refinance an existing term loan and 2025 notes, and the funds from the additional debt raised will be used to take out 2024 bonds.

GCI is an Anchorage-based telecommunications company.

PCI changes emerge

Back in the primary market, PCI Pharma Services raised its seven-year senior secured first-lien term loan to $920 million from $870 million, finalized pricing at Libor plus 375 bps, the low end of the Libor plus 375 bps to 400 bps talk, and modified the original issue discount to 99.5 from 99, a market source remarked.

As before, the first-lien term loan has a 25 bps step-down at 0.5x inside closing first-lien net leverage and a 25 bps step-down based on an initial public offering, a 0.75% Libor floor and 101 soft call protection for six months.

With the first-lien term loan upsizing, the privately placed eight-year senior secured second-lien term loan was scaled back to $300 million from $350 million, the source continued.

Commitments are due at noon ET on Friday.

The company’s $1.345 billion of credit facilities also include a $125 million five-year revolver.

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.

ASP Navigate tweaked

ASP Navigate raised its seven-year first-lien term loan to $425 million from $400 million and cut pricing to Libor plus 450 bps from talk in the range of Libor plus 475 bps to 500 bps, according to a market source.

The term loan still has 25 bps step-down at 0.5x inside closing first-lien net leverage, a 1% Libor floor, an original issue discount of 98.5 and 101 soft call protection for six months.

The company’s now $485 million of credit facilities (B2/B-) also include a $60 million five-year revolver.

Recommitments were due at 4 p.m. ET on Thursday, the source added.

Jefferies LLC, Keybank Capital Markets Inc., Goldman Sachs Bank USA and ING are leading the deal that will be used with equity to fund American Securities LLC’s acquisition of NN Inc.’s Life Sciences division for $825 million, including $755 million in cash payable at the closing of the transaction and an additional $70 million earnout payable in cash based on the 2022 performance of the division.

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

The Life Sciences division designs and manufactures a variety of high-precision components, assemblies, and instruments for the medical and life sciences end market.

Barrette flexes

Barrette reduced pricing on its $405 million seven-year covenant-lite first-lien term loan (B3/B) to Libor plus 400 bps from talk in the range of Libor plus 425 bps to 450 bps, added a 25 bps step-down after 0.75x of first-lien net leverage deleveraging, and revised the original issue discount to 99 from 98, a market source remarked.

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

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

Credit Suisse Securities (USA) LLC, BMO Capital Markets and KKR Capital Markets are leading the deal that will be used to fund the acquisition of the company by TorQuest Partners and Caisse de depot et placement du Quebec.

Barrette is a manufacturer and distributor of wood alternative fence, railing and other outdoor living products.

Hyland reworked

Hyland Software upsized its incremental covenant-lite first-lien term loan due July 2024 to $738 million from $664 million and tightened the original issue discount to 99.625 from talk in the range of 99.3 to 99.5, according to a market source.

As before, the incremental term loan is priced at Libor plus 350 bps with a 25 bps step-down at 4.75x first-lien net leverage and a 0.75% Libor floor, and has 101 soft call protection for six months.

Commitments continued to be due at 5 p.m. ET on Thursday, the source added.

Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, UBS Investment Bank, KKR Capital Markets and Stone Point are leading the deal that will be used to fund the acquisition of Alfresco, a Boston-based content services platform and solutions provider, and, due to the upsizing, to refinance a second-lien term loan.

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

Pricing on the existing first-lien term loan had stepped down to Libor plus 325 bps and will be reset to Libor plus 350 bps with this transaction.

Hyland is a Westlake, Ohio-based content services platform provider.

Closure revises timing

Closure Systems accelerated the commitment deadline for its $70 million incremental covenant-lite first-lien term loan (B2/B) due December 2026 to noon ET on Friday from 5 p.m. ET on Tuesday, a market source said.

Talk on the incremental term loan is Libor plus 475 bps with a 0% Libor floor, an original issue discount of 99.5 to 99.75 and 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to fund a dividend.

The spread and floor on the incremental term loan matches existing term loan pricing.

Closure Systems, formerly known as Canister International Group Inc., is a Memphis, Tenn.-based designer and manufacturer of plastic and aluminum closures and capping equipment.

Ahead DB launches

In more primary happenings, Ahead DB Holdings held its call on Thursday and announced talk on its $785 million seven-year first-lien term loan at Libor plus 450 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.

Commitments are due at noon ET on Oct. 6, the source said.

The company’s $1.135 billion of credit facilities also include a $115 million revolver and a $235 million privately placed second-lien term loan.

RBC Capital Markets, Deutsche Bank Securities Inc., Barclays, KKR Capital Markets, Macquarie Capital (USA) Inc., Truist, Regions and TD Securities (USA) LLC are leading the deal that will help fund the buyout of the company by Centerbridge Partners LP from Court Square Capital Partners. With this transaction, Berkshire Partners LLC will purchase a minority stake in the company and there will be significant rollover from management.

Originally, the $785 million of first-lien term loan debt was expected to include a $110 million delayed-draw tranche but the acquisition being funded with that debt will now close concurrently with the buyout so the delayed-draw option was removed, the source added.

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

BrightSpring guidance

BrightSpring Health launched on its morning call its $550 million of senior secured covenant-lite term loans (B1/B) due March 5, 2026 at talk of Libor plus 375 bps to 400 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, a market source remarked.

The debt is split between a $475 million first-lien term loan B, and a $75 million delayed-draw term loan that has a ticking fee of half the margin from days 31 to 60 and the full margin, excluding Libor, thereafter.

Commitments are due at 5 p.m. ET on Oct. 1, the source added.

Morgan Stanley Senior Funding Inc. and KKR Capital Markets LLC are leading the deal that will be used to finance future acquisitions, fund cash to the balance sheet and pay related fees and expenses.

BrightSpring Health is a Louisville, Ky.-based health care services provider.

Jefferies proposed terms

Jefferies Finance came out with talk of Libor plus 375 bps with a 0.75% Libor floor, an original issue discount of 98 to 98.5 and 101 soft call protection for six months on its $350 million seven-year senior secured term loan (Ba3/BB-/BB) that launched with a morning bank meeting, according to a market source.

Commitments are due on Tuesday, the source added.

Jefferies LLC is leading the deal that will be used to repay the company’s existing 7¼% senior notes due 2024 and pay related fees and expenses.

Jefferies Finance is a New York-based leveraged loan arranger and investor with over $12 billion of managed capital equally owned by Jefferies Group LLC and Massachusetts Mutual Life Insurance Co.

American Residential talk

American Residential Services launched on its lender call its $470 million first-lien term loan B (B1/B) at talk of Libor plus 375 bps to 400 bps with a 0.75% 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 Oct. 8, the source added.

J.P. Morgan Securities LLC, Jefferies LLC, KKR Capital Markets and Ares are leading the deal that will be used to help fund the acquisition of a majority stake in the company by GI Partners. Existing investor Charlesbank Capital Partners and management are also making significant new investments in the business.

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

American Residential is a Memphis, Tenn.-based provider of residential heating, ventilation, air conditioning and plumbing services.

Array price guidance

Array Technologies released talk of Libor plus 375 bps to 400 bps with a 0.5% Libor floor, an original issue discount of 98.5 and 101 soft call protection for six months on its $575 million seven-year first-lien term loan B that launched with an afternoon call, a market source remarked.

Commitments are due on Oct. 7, the source added.

Goldman Sachs Bank USA, Barclays, Nomura, MUFG, Credit Suisse Securities (USA) LLC, Guggenheim and UBS Investment Bank are leading the deal that will be used to support a dividend to the company’s shareholders.

Array Technologies is an Albuquerque-based manufacturer of ground-mounting systems used in solar energy projects.

Press Ganey shops loan

Press Ganey hosted a lender call at 2 p.m. ET to launch a non-fungible $180 million incremental first-lien term loan due July 25, 2026 talked at Libor plus 400 bps to 425 bps with a 0.75% Libor floor, an original issue discount of 98 to 98.5 and 101 soft call protection for six months, according to a market source.

Commitments are due at noon ET on Oct. 1, the source added.

Barclays is the left lead on the deal that will be used to fund a portion of the purchase price of two acquisitions either signed or under letters of intent.

Press Ganey is a South Bend, Ind.-based provider of patient experience measurement and performance improvement solutions to health care organizations.

Red Ventures price talk

Red Ventures disclosed talk of Libor plus 300 bps to 325 bps with an original issue discount of 98 on its $400 million incremental senior secured first-lien term loan (B1/B+/BB) with its afternoon call, a market source remarked.

BofA Securities Inc. is the left lead on the deal that will be used to help fund the acquisition of CNET Media Group, a digital media company, from ViacomCBS for $500 million.

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

Red Ventures is a Fort Mill, S.C.-based portfolio of digital brands.

RBmedia holds call

RBmedia held its call in the afternoon, launching its fungible $250 million add-on first-lien term loan B due Aug. 31, 2025 with original issue discount talk in the range of 99.03 to 99.5, a market source said.

The add-on term loan is priced at Libor plus 425 bps with a 25 bps step-down at less than 3.8x first-lien net leverage and a 0% Libor floor.

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

Goldman Sachs Bank USA, KKR Capital Markets, Morgan Stanley Senior Funding Inc., ING and Truist are leading the deal that will be used to fund a dividend to existing shareholders.

RBmedia is a Landover, Md.-based digital audiobook and related spoken-word content producer.

White Cap on deck

White Cap set a lender call for 10 a.m. ET on Tuesday to launch a $2.335 billion seven-year covenant-lite first-lien term loan B, according to a market source.

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

Commitments are due on Oct. 8.

Deutsche Bank Securities Inc., RBC Capital Markets LLC, Jefferies LLC, BNP Paribas Securities Corp., Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Mizuho and Nomura are leading the deal that will be used to help fund the buyout of the company by Clayton, Dubilier & Rice from HD Supply Holdings Inc. and the combination with Construction Supply Group. The combined transaction is valued at about $4 billion.

Upon closing, Clayton, Dubilier & Rice will hold a 65% ownership interest in the combined company, and the current shareholders of Construction Supply Group, led by Sterling Group, will hold a 35% interest.

The acquisition of White Cap is expected to close in October.

White Cap is a distributor of specialty concrete and construction products. Construction Supply Group is a distributor of specialty concrete and masonry accessories.

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