Ahead DB, Oxbow break; Weber, Service Logic, Filtration, Sovos, Ascend Learning set talk

By Sara Rosenberg

New York, Oct. 13 – Ahead DB Holdings returned its first-lien term loan to its original launch size, increased the spread, widened the original issue discount and sweetened the call protection before freeing up for trading on Tuesday, and Oxbow Carbon’s term loan B hit the secondary market as well.

In other news, Weber-Stephen Products LLC, Service Logic Acquisition Inc. (Saber Merger Sub Inc.), Filtration Group, Sovos Brands Intermediate Inc. and Ascend Learning LLC all released price talk with launch.

Furthermore, Parts Authority (PAI Holdco Inc.), Zywave Inc., Adevinta ASA, Wheel Pros, ProAmpac, Curium Bidco Sarl, Hargray Communications Group Inc., Advantage Sales & Marketing Inc. and Chobani LLC joined this week’s primary calendar.

Ahead DB reworked

Ahead DB set its seven-year first-lien term loan (B1/B) size at $785 million, up from revised talk in the range of $400 million to $425 million but in line with the launch size, according to a market source. The roughly $375 million of seven-year senior secured notes that were contemplated with the term loan downsizing are no longer being issued.

Also, pricing on the first-lien term loan was lifted to Libor plus 500 basis points from Libor plus 450 bps, the original issue discount was modified to 96 from 98.5 and the 101 soft call protection was extended to one year from six months, the source said.

The first-lien term loan still has a 1% Libor floor.

The company’s $1.135 billion of credit facilities include a $115 million revolver (B1/B) and a $235 million privately placed second-lien term loan (Caa1) as well.

Ahead DB frees up

On Tuesday, Ahead DB’s first-lien term loan made its way into the secondary market and levels were quoted at 96¼ bid, 97¼ offered, a trader added.

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.

The new debt will be used to help fund the buyout of the company by Centerbridge Partners LP from Court Square Capital Partners. In connection with this transaction, Berkshire Partners LLC will purchase a minority stake in the company and there will be significant rollover from management.

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

Oxbow starts trading

Oxbow Carbon’s $350 million five-year term loan B broke for trading too, with levels quoted at 99 bid, par offered, a market source remarked.

Pricing on the term loan is Libor plus 425 bps with a 0.75% Libor floor and it was sold at an original issue discount of 98.5. The debt has 101 soft call protection for one year.

During syndication, the term loan was downsized from $400 million and the spread was set at the low end of the Libor plus 425 bps to 450 bps talk.

BofA Securities Inc., J.P. Morgan Securities LLC, Rabobank, Truist, Capital One and Citizens Bank are leading the deal that will be used to refinance existing debt.

Oxbow Carbon is a West Palm Beach, Fla.-based recycler of refinery and natural gas byproducts.

Weber shops loan

Back in the primary market, Weber-Stephen Products hosted a lender call at 2 p.m. ET on Tuesday to launch a $1.2 billion seven-year term loan B (B) talked at Libor plus 325 bps to 350 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. 20, the source added.

The company is also expected to get a $300 million five-year revolver (B).

BofA Securities Inc., BMO Capital Markets, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc., UBS Investment Bank and Wells Fargo Securities LLC are leading the deal that will be used to refinance existing debt and add liquidity.

Weber-Stephen is a manufacturer of charcoal, gas and electric grills and accessories.

Service Logic guidance

Service Logic came out with talk of Libor plus 400 bps with a 25 bps step-down at 0.5x inside closing first-lien net leverage, a 0.75% Libor floor and an original issue discount of 99 on its $670 million of first-lien term loans (B2/B) that launched with a morning call, a market source said.

The debt consists of a $520 million seven-year first-lien term loan and a $150 million delayed-draw first-lien term loan, which are being sold as a strip.

The first-lien term loan has 101 soft call protection for six months, and the delayed-draw term loan has a commitment fee of half the margin from days 45 to 90 and the full margin thereafter, the source continued.

Commitments are due at 5 p.m. ET on Oct. 22.

J.P. Morgan Securities LLC is leading the deal that will be used to help fund the buyout of the company by Leonard Green & Partners LP.

Service Logic is a Charlotte, N.C.-based provider of aftermarket maintenance, repair and replacement services for commercial HVAC equipment, chilled water systems, and building automation and controls systems.

Filtration Group launches

Filtration Group held a lender call at noon ET to launch a $400 million incremental first-lien term loan B (B3/B) due March 2025 talked at 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 on Oct. 20, the source added.

Goldman Sachs Bank USA and J.P. Morgan Securities LLC are leading the deal that will be used to fund a dividend recapitalization.

Filtration Group is a provider of filtration solutions, serving a diverse portfolio of global end markets.

Sovos reveals talk

Sovos Brands launched on a lender call at 10:30 a.m. ET a $380 million seven-year covenant-lite first-lien term loan (B) talked at Libor plus 425 bps to 450 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, a market source remarked.

Commitments are due at 5 p.m. ET on Oct. 22, the source added.

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to refinance existing debt and fund the acquisition of Birch Benders LLC, a Denver-based producer of pancake and waffle mixes, toaster waffles, and pancake and baking cups.

Closing is expected by the end of this month.

Sovos, an Advent International portfolio company, is a Berkeley, Calif.-based food company.

Ascend proposed terms

Ascend Learning held a call at 2 p.m. ET, launching a non-fungible $350 million incremental first-lien term loan (B1/B-) due July 2024 talked at Libor plus 325 bps to 350 bps with a 1% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months, a market source said.

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

Barclays, BofA Securities Inc., Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc. and RBC Capital Markets are leading the deal that will be used to fund a dividend, for working capital, general corporate purposes or any other purpose not prohibited by the credit agreement, and to pay the transaction costs.

Ascend Learning is a provider of educational content, software and analytics solutions.

Parts Authority on deck

Parts Authority set a bank meeting for 11 a.m. ET on Wednesday to launch a $600 million seven-year senior secured first-lien term loan, according to a market source.

The company’s proposed $925 million of credit facilities also include a $125 million five-year ABL revolver and a $200 million privately placed eight-year senior secured second-lien term loan, the source said.

Jefferies LLC and Golub are leading the deal that will be used to help fund the buyout of the company by Kohlberg & Co. LLC from The Jordan Co.

Parts Authority is a Lake Success, N.Y.-based automotive aftermarket replacement parts distribution platform serving the do-it-for-me and do-it-yourself e-commerce segments of the automotive aftermarket.

Zywave sets call

Zywave will hold a lender call at 11 a.m. ET on Wednesday to launch $390 million of senior secured credit facilities, a market source remarked.

The facilities consist of a $50 million revolver and a $340 million first-lien term loan B, the source added.

Morgan Stanley Senior Funding Inc. is the left lead on the deal that will be used with a privately placed second-lien term loan to fund the acquisition of Zywave, to provide for working capital needs and general corporate purposes, and to pay fees and expenses related to the transaction.

Zywave is a Milwaukee-based insurance technology provider.

Adevinta coming soon

Adevinta scheduled a lender call for 9 a.m. ET on Wednesday to launch a $500 million (€426 million equivalent) term loan B (Ba3/BB-/BB+) and a €900 million term loan B (BB-/BB+), a market source said.

Both term loans have 101 soft call protection for six months.

Commitments are due at 9 a.m. ET on Oct. 23, the source added.

Barclays and Citigroup are the global coordinators on the deal and the physical bookrunners on the euro loan. Barclays is the physical bookrunner on the U.S. loan. Joint bookrunners include BNP Paribas Securities Corp., DNB and J.P. Morgan Securities LLC, and mandated lead arrangers include BofA Securities Inc. and ING.

Proceeds will be used with €1.06 billion of other secured debt to refinance existing debt and to help fund the acquisition of eBay Classifieds Group, an online classifieds company, from eBay Inc. for $9.2 billion, split between $2.5 billion in cash and 540 million shares of Adevinta.

Closing is expected by first quarter 2021, subject to eBay Classifieds Group Dutch Works Council approval, regulatory approvals and customary conditions.

Adevinta is an Oslo, Norway-based online classifieds company.

Wheel Pros joins calendar

Wheel Pros surfaced with plans to hold a lender call at 2 p.m. ET on Wednesday to launch $945 million of term loans, according to a market source.

The debt is split between a $735 million first-lien term loan and a $210 million second-lien term loan, the source said.

UBS Investment Bank is leading the deal that will be used to refinance existing debt and fund a dividend.

Wheel Pros is a distributor of proprietary branded wheels and performance tires.

ProAmpac readies deal

ProAmpac will hold a lender call on Wednesday morning to launch a fungible roughly $114 million five-year incremental first-lien term loan and an extension of its existing roughly $1.351 billion first-lien term loan to a five-year maturity from the current maturity of Nov. 18, 2023, a market source remarked.

The company will also increase its revolver by $75 million to $200 million, the source added.

Antares Capital, J.P. Morgan Securities LLC and Goldman Sachs Bank USA are leading the deal.

The incremental first-lien term loan will be used with $360 million of privately placed second-lien notes to refinance an existing $215 million second-lien term loan, fund a planned acquisition and repay revolver borrowings.

ProAmpac, a Pritzker Private Capital portfolio company, is a Cincinnati-based supplier of flexible packaging products to a diverse set of end markets, including food, pet food, consumer, medical, pharmaceutical, industrial and specialty retail.

Curium plans call

Curium scheduled a lender call for Thursday to launch $590 million of term loans, according to a market source.

The debt consists of a $265 million first-lien term loan B (B2/B/B+) and a $325 million second-lien term loan (Caa2/CCC+/CCC+), the source said.

J.P. Morgan Securities LLC, Barclays, Deutsche Bank Securities Inc. and Nomura are leading the deal that will be used to help fund the acquisition of the company by CapVest Fund IV and third-party investors from CapVest Fund III.

Curium is a nuclear medicine company with headquarters in London and Paris.

Hargray on deck

Hargray Communications set a lender call for 11:30 a.m. ET on Wednesday to launch a fungible $60 million incremental covenant-lite first-lien term loan due May 2024 talked with an original issue discount of 99.28, a market source said.

Like the existing term loan, the incremental term loan is priced at Libor plus 300 bps with a 25 bps step-down at 4.75x first-lien leverage and a 1% Libor floor.

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

Credit Suisse Securities (USA) LLC is leading the deal that will be used for general corporate purposes including capital expenditures and acquisitions.

Hargray is a Hilton Head Island, S.C.-based telecommunications provider.

Advantage Sales sets launch

Advantage Sales & Marketing will hold a lender call on Wednesday to launch its new loan transaction, according to a market source.

Last month, the company said in a filing with the Securities and Exchange Commission that it has a commitment for $2.5 billion of senior secured credit facilities, split between a $400 million asset-based revolver and a $2.1 billion term loan, from BofA Securities Inc., Morgan Stanley Senior Funding Inc. and Deutsche Bank Securities Inc.

Proceeds will be used to refinance existing debt and to pay related fees and expenses in connection with the acquisition of Advantage Sales’ parent company, Advantage Solutions Inc., by Conyers Park II Acquisition Corp.

Net debt is expected to be 3.7x LTM June adjusted EBITDA.

Closing is expected as early as late October, subject to approval by Conyers Park’s stockholders, the expiration of the HSR Act waiting period, the debt financing and other customary conditions.

Advantage Sales is an Irvine, Calif.-based provider of outsourced sales and marketing services to consumer goods manufacturers and retailers.

Chobani sets call

Chobani scheduled a lender call for Wednesday to launch a loan transaction, a market source remarked.

BofA Securities Inc. is leading the deal.

Chobani is a Norwich, N.Y.-based producer of Greek yogurt.

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