IFS revises loans; Hyland Software, Liberty Puerto Rico, Service Logic price talk surfaces

By Sara Rosenberg

New York, March 22 – In the primary market on Monday, IFS AB lowered the spread on its U.S. term loan B, trimmed price talk on its euro term loans and tightened original issue discounts on all of the tranches.

Also, Hyland Software Inc., Liberty Communications of Puerto Rico and Service Logic released price talk with launch.

Furthermore, Tecta America Corp., W. R. Grace & Co., Magnite, Instant Brands Holdings Inc., City Brewing Co. LLC, Culligan Holding Inc. (AI Aqua Merger Sub Inc.) and PetIQ LLC joined this week’s primary calendar.

IFS flexes

IFS trimmed pricing on its $720 million first-lien term loan B to Libor plus 375 basis points from Libor plus 400 bps and changed the original issue discount to 99.75 from 99.5, a market source remarked.

In addition, the company trimmed price talk on its €520 million first-lien term loan B and €67 million acquisition financing term loan to a range of Euribor plus 350 bps to 375 bps from Euribor plus 400 bps and modified the discount on the loans to 99.75 from 99.5, the source added.

As before, the U.S. term loan has a 0.5% Libor floor, the euro term loan has a 0% floor and all of the loans have 101 soft call protection for six months.

JPMorgan Chase Bank, Morgan Stanley Senior Funding Inc., BofA Securities Inc., Credit Agricole, Credit Suisse, Mizuho, Nordea, SEB and SMBC are leading the deal (B2), with JPMorgan the left lead on the U.S. loan and Morgan Stanley the left lead on the euro loans.

The loans will be used to refinance existing debt, fund a dividend and finance acquisitions.

IFS is a Sweden-based enterprise software company.

Hyland holds call

Hyland Software emerged in the morning with plans to hold a lender call at 1:30 p.m. ET on Monday to launch $810 million of term loans, according to a market source.

The debt includes a fungible $110 million incremental covenant-lite first-lien term loan due July 2024 talked at Libor plus 350 bps with a 0.75% Libor floor and an original issue discount of 99.5.

The company is also getting a $700 million covenant-lite second-lien term loan due July 2025, of which $150 million is an incremental loan and the remainder is a repricing of the existing second-lien loan, the source said.

Talk on the second-lien term loan debt is Libor plus 625 bps with a 0.75% Libor floor and 101 hard call protection for one year. The incremental tranche is talked with an original issue discount of 99.5 and the repricing is offered at par.

Hyland buying Nuxeo

Hyland will use the incremental debt to fund the acquisition of Nuxeo, a content services platform and digital asset management provider, and the repricing will take the existing second-lien term loan down from Libor plus 700 bps with a 0.75% Libor floor.

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

Credit Suisse Securities (USA) LLC is leading the deal.

Closing on the acquisition is expected in April.

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

Liberty launches

Liberty Puerto Rico hosted a lender call at 11 a.m. ET, launching a $500 million term loan B (B+/BB) talked at Libor plus 400 bps with a 0% Libor floor, an original issue discount of 99.75 to par and 101 soft call protection for six months, a market source said.

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

JPMorgan Chase Bank, BNP Paribas Securities Corp., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs Bank USA, Santander and Bank of Nova Scotia are leading the deal that will be used with $820 million of senior secured notes to refinance an existing term loan, to fund a dividend and for general corporate purposes.

Liberty Puerto Rico is a Puerto Rico-based telecommunications company.

Service Logic repricing

Service Logic launched with a call at 11 a.m. ET a repricing of its existing $530 million first-lien term loan and its existing $132 million delayed-draw first-lien term loan at talk of Libor plus 350 bps to 375 bps with a 0.75% Libor 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.

JPMorgan Chase Bank is leading the deal.

The repricing will take the term loans down from Libor plus 400 bps with a 0.75% Libor floor.

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.

Tecta joins calendar

Tecta America will hold a lender call at noon ET on Tuesday to launch $915 million of credit facilities, a market source remarked.

The facilities consist of a $125 million revolver (B1/B-), a $600 million seven-year covenant-lite first-lien term loan (B1/B-) and a $190 million eight-year covenant-lite second-lien term loan (Caa1/CCC), the source added.

The first-lien term loan has 101 soft call protection for six months and the second-lien term loan has call protection of 102 in year one and 101 in year two.

Commitments are due at 5 p.m. ET on April 1.

Credit Suisse Securities (USA) LLC, UBS Investment Bank, RBC Capital Markets and Truist are leading the deal that will be used to refinance existing debt, to finance an acquisition, to fund a distribution and for general corporate purposes.

Tecta is a Rosemont, Ill.-based provider of commercial roofing services.

W. R. Grace readies loan

W. R. Grace set a lender call for 11:30 a.m. ET on Tuesday to launch its previously announced $300 million seven-year term loan B-3, according to a market source.

Goldman Sachs Bank USA is leading the deal that will be used to help fund the acquisition of the fine chemistry services business of Albemarle Corp. for about $570 million, including $300 million paid in cash at closing and $270 million funded through the issuance to Albemarle of non-participating preferred equity of a newly created Grace subsidiary.

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

Net leverage is expected to be about 3.3x at year end 2021 and in the 2x to 3x range by 2022.

W. R. Grace is a Columbia, Md.-based specialty chemical company.

Magnite coming soon

Magnite scheduled a lender call for 11 a.m. ET on Tuesday to launch a $360 million term loan B (Ba3/B+), a market source said.

Goldman Sachs Bank USA, Fifth Third, SVB and Societe Generale are leading the deal that will be used to help fund the acquisition of SpotX from RTL Group for $1.17 billion in cash and stock. Magnite plans to issue 14 million shares to RTL.

Closing is expected in the second quarter, subject to receipt of regulatory approvals and satisfaction of customary conditions.

Magnite is a Los Angeles-based sellside advertising platform. SpotX is a Brookfield, Colo.-based video advertising platform.

Instant Brands on deck

Instant Brands will hold a bank meeting at 3 p.m. E on Tuesday to launch a $450 million seven-year first-lien term loan (Ba3), according to a market source.

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

Jefferies LLC, RBC Capital Markets, Citigroup Global Markets Inc. and BofA Securities Inc. are leading the deal that will be used to refinance existing debt and fund a distribution to shareholders.

Instant Brands is a manufacturer of kitchen and houseware brands, such as Instant, Pyrex, Corelle, CorningWare, SnapWare, Chicago Cutlery and Visions.

City Brewing plans call

City Brewing set a lender call for 11 a.m. ET on Tuesday to launch an $850 million seven-year term loan B, a market source remarked.

Commitments are due at 5 p.m. ET on March 31, the source said.

JPMorgan Chase Bank is leading the deal that will be used to help fund the buyout of the company by a consortium of investors including Charlesbank Capital Partners, Oaktree Capital Management LLC and Blue Ribbon Partners LLC.

Closing is expected in April.

City Brewing is an alcoholic and non-alcoholic beverage contract manufacturer.

Culligan readies deal

Culligan scheduled a lender call for noon ET on Tuesday to launch a $100 million delayed-draw term loan and a repricing of its existing roughly $665 million first-lien term loan B due December 2023, according to a market source.

Morgan Stanley Senior Funding Inc. is leading the deal.

The repriced term loan and delayed-draw term loan will be fungible with the company’s existing $611 million term loan B-1 due 2023 priced at Libor plus 325 bps. This transaction will create one $1.376 billion pro forma tranche.

Culligan is a Rosemont, Ill.-based provider of water treatment products and services.

PetIQ joins calendar

PetIQ will hold a bank meeting at 1 p.m. ET on Tuesday to launch $425 million of credit facilities, a market source said.

The facilities consist of a $125 million five-year ABL revolver and a $300 million seven-year senior secured first-lien term loan.

Talk on the term loan is Libor plus 425 bps with a 0.5% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months, the source added.

Jefferies LLC and KeyBanc Capital Markets are leading the deal that will be used to partially refinance existing debt.

PetIQ is an Eagle, Idaho-based pet medication and wellness company.

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