First Student, Datasite free up; Atlantic Aviation tweaks size; AmWINS accelerates deadline

By Sara Rosenberg

New York, July 13 – First Student & First Transit lowered the spread on its term loan B and term loan C and finalized the original issue discount at the tight end of guidance, and Datasite finalized sizes for its U.S. and euro add-on term loans, and then these deals broke for trading on Tuesday.

In more happenings, Atlantic Aviation increased the size of its first-lien term loan, and AmWINS Group Inc. moved up the commitment deadline for its add-on term loan B.

Also, Sitel Group, Madison IAQ, Viad Corp., Imperial Dade (BCPE Empire Holdings Inc.), ZoomInfo LLC and viagogo released price talk with launch.

Furthermore, Upstream Rehab (Upstream Holdco Inc.), Excelitas Technologies Corp. and Switch joined this week’s primary calendar.

First Student revised

First Student & First Transit trimmed pricing on its $1.49 billion seven-year senior secured first-lien term loan B and $525 million seven-year senior secured first-lien term loan C to Libor plus 300 basis points from Libor plus 325 bps, 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 company also made some changes to documentation, the source said.

As before, the term loans have a 0.5% Libor floor and 101 soft call protection for six months.

The company’s $2.515 billion of senior secured credit facilities (Ba3/B+/BB+) include a $500 million revolver as well.

Barclays, Morgan Stanley Senior Funding Inc., BMO Capital Markets, TD Securities (USA) LLC, Credit Suisse Securities (USA) LLC, RBC Capital Markets, MUFG, BNP Paribas Securities Corp., Citizens Bank, Deutsche Bank Securities Inc., Stifel and Mizuho are leading the deal.

First Student breaks

Recommitments for First Student & First Transit’s term loans were due at noon ET on Tuesday and the debt freed to trade late in the day, with the term loan B and term loan C strip quoted at 99 5/8 bid, par 1/8 offered, another source added.

The term loan B and $800 million of senior secured notes will be used to help fund the buyout of the companies by EQT Infrastructure from FirstGroup plc for $4.6 billion, and the term loan C will be placed in a specified restricted account for purposes of providing cash collateral against letters of credit.

Closing is expected this summer, subject to customary conditions.

First Student is a Cincinnati-based student transportation service provider. First Transit is a Cincinnati-based public transit management operator.

Datasite updated

Datasite set its U.S. add-on term loan size at $65 million and its euro add-on term loan size at €30 million, a market source said. At launch, the debt was described as a $100 million equivalent U.S. and euro add-on with the split to be determined.

In addition, pricing on the euro add-on term loan and repricing of the company’s existing €220 million term loan firmed at Euribor plus 375 bps, the low end of the Euribor plus 375 bps to 400 bps talk, while the 0% floor and original issue discount of 99.75 were unchanged.

Pricing on the U.S. add-on term loan and repricing of the company’s existing $300 million term loan remained at Libor plus 375 bps with a 0.75% Libor floor and a discount of 99.75.

The term loans still have 101 soft call protection for six months.

Datasite hits secondary

During the session, Datasite’s U.S. term loan broke for trading, with levels quoted at 99¾ bid, par ¾ offered, another source added.

JPMorgan Chase Bank is leading the deal.

Proceeds from the add-on term loan debt will be used for acquisition financing.

Datasite is a Minneapolis-based SaaS provider for the mergers and acquisitions industry.

Atlantic Aviation upsizes

Atlantic Aviation lifted its seven-year first-lien term loan to $1.35 billion from $1.3 billion to add additional cash to the balance sheet, and left pricing at Libor plus 300 bps with a 0.5% Libor floor and an original issue discount of 99.75, a market source remarked. The tranche has 101 soft call protection for six months.

The company’s now $1.925 billion of credit facilities also include a $225 million five-year revolver (B1/B+), and a $350 million eight-year second-lien term loan priced at Libor plus 575 bps with a 0.5% Libor floor and a discount of 99.5. The second-lien term loan has call protection of 102 in year one and 101 in year two.

Earlier in syndication, pricing on the first-lien term loan finalized at the low end of the Libor plus 300 bps to 325 bps talk and the discount was revised from 99.5, and the spread on the second-lien term loan was reduced from talk in the range of Libor plus 600 bps to 625 bps.

Commitments continued to be due at 4 p.m. ET on Tuesday, the source added.

Atlantic Aviation leads

Jefferies LLC, KKR Capital Markets, Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc., HSBC Securities (USA) Inc., Mizuho, BNP Paribas Securities Corp., ING, Societe Generale, SMBC and Wells Fargo Securities LLC are leading Atlantic Aviation’s credit facilities, with Jefferies the left lead on the first-lien term loan and KKR the left lead on the second-lien term loan.

The new debt will be used to help fund the buyout of the company by KKR from Macquarie Infrastructure Corp. for $4.475 billion in cash and assumed debt and reorganization obligations.

Closing is expected in the fourth quarter, subject to customary regulatory approvals and approval from Macquarie Infrastructure shareholders.

Atlantic Aviation is an operator of fixed base operations, providing a full suite of critical services to the private aviation sector.

AmWINS changes timing

AmWINS accelerated the commitment deadline for its fungible $500 million add-on term loan B (Ba3/B+) due February 2028 and consents for a technical amendment to 10 a.m. ET on Wednesday from noon ET on Wednesday, a market source said.

Pricing on the add-on term loan is Libor plus 225 bps with a 0.75% Libor floor, in line with existing term loan B pricing, and the add-on is talked with an original issue discount of 98.56 to 99 and 101 soft call protection for six months.

Goldman Sachs Bank USA, Barclays, Wells Fargo Securities LLC, Morgan Stanley Senior Funding Inc. and JPMorgan Chase Bank are leading the deal.

Proceeds will be used with $890 million of new senior notes to repay existing senior notes, to pay related transaction expenses, to make restricted payments of up to $750 million, and for general corporate purposes, including to fund one or more acquisitions. The company plans to determine the amount of restricted payments based on available acquisition opportunities.

AmWINS is a Charlotte, N.C.-based specialty insurance broker.

Sitel proposed terms

Sitel held its lender call on Tuesday and announced price talk on its $1.4 billion seven-year covenant-lite term loan and €1 billion seven-year covenant-lite term loan, according to a market source.

Talk on the U.S. term loan is Libor plus 350 bps to 375 bps with a 0.5% Libor floor and an original issue discount of 99, and talk on the euro term loan is Euribor plus 350 bps to 375 bps with a 0% floor and a discount of 99, the source said. Both loans (BB-) have 101 soft call protection for six months.

Commitments are due on July 27.

BNP Paribas Securities Corp. and Barclays are leading the deal that will be used to help fund the acquisition of Sykes Enterprises Inc. for about $2.2 billion.

Closing is expected in the second half of this year, subject to Sykes’ shareholder approval, regulatory approval and other customary conditions.

Sitel is a Miami-based provider of customer experience products and solutions. Sykes is a Tampa, Fla.-based provider of customer experience management services, multichannel demand generation and digital transformation.

Madison IAQ guidance

Madison IAQ came out with original issue discount talk in the 99 area (plus or minus 0.25 a point) on its $715 million incremental first-lien term loan (B1/B) due June 2028 that launched with a call in the morning, a market source remarked.

Like the existing term loan, the incremental term loan is priced at Libor plus 325 bps with a 0.5% Libor floor and has 101 soft call protection through December 2021.

Commitments are due on July 22, the source added.

Goldman Sachs Bank USA is leading the deal that will be used with $75 million of cash from the balance sheet and $320 million of new equity from Madison Industries to fund the acquisition of Big Ass Fans.

Madison IAQ is a provider of indoor air quality solutions. Big Ass Fans is a Lexington, Ky.-based producer of high volume, low speed and connected fans.

Viad sets talk

Viad launched on its call in the morning its $400 million term loan B (B3/B+) at talk of Libor plus 450 bps with a 0.5% Libor floor and an original issue discount of 99, according to a market source.

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

Commitments are due at noon ET on July 22, the source added.

BofA Securities Inc., BMO Capital Markets, KeyBanc Capital Markets and Truist are leading the deal that will be used to repay revolver borrowings and for general corporate purposes.

Viad is a Phoenix-based provider of experiential leisure travel and live events and marketing experiences.

Imperial Dade holds call

Imperial Dade emerged in the morning with plans to hold a lender call at 11 a.m. ET on Tuesday to launch a fungible $425 million incremental first-lien term loan, of which $145 million is delayed-draw, due June 2026 and a repricing of its existing $180 million first-lien term loan due June 2026, a market source said.

Talk on the term loan debt (B-) is Libor plus 400 bps with a 0.5% Libor floor and 101 soft call protection for six months, the source said. The incremental term loan is talked with an original issue discount of 99.5 to 99.75 and the repricing is offered at par.

Commitments are due at 5 p.m. ET on July 21, the source added.

Credit Suisse Securities (USA) LLC is the left lead on the deal.

The incremental term loan will be used to fund acquisitions under letters of intent and near-term acquisitions, and the repricing will take the existing loan down from Libor plus 425 bps with a 0.75% Libor floor.

Imperial Dade is a Jersey City, N.J.-based distributor of foodservice disposables and janitorial sanitation products.

ZoomInfo launches

ZoomInfo held a lender call at noon ET to launch a $200 million add-on covenant-lite term loan B (Ba2/BB) due Feb. 1, 2026 talked with an original issue discount of 99 to 99.5, according to a market source.

Pricing on the add-on term loan is Libor plus 300 bps with a 0% Libor floor, in line with existing term loan B pricing.

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

Morgan Stanley Senior Funding Inc., Barclays and JPMorgan Chase Bank are leading the deal that will be used with $300 million of senior unsecured notes to repay revolver borrowings incurred to finance a portion of the roughly $575 million acquisition of Chorus.ai, to pay fees and expenses related to the transaction, to pay the tax gross up and for general corporate purposes.

ZoomInfo is a Vancouver, Wash.-based provider of sales and marketing data. Chorus is a San Francisco-based conversation intelligence platform.

viagogo shops incremental

viagogo held a lender call in the afternoon to launch a non-fungible $328 million incremental term loan talked at Libor plus 425 bps to 450 bps with a 0.5% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, a market source remarked.

Commitments are due at 5 p.m. ET on July 20, the source added.

JPMorgan Chase Bank is leading the deal that will be used to refinance existing debt.

viagogo is a Geneva-based online resale ticket marketplace.

Upstream Rehab on deck

Upstream Rehab set a lender call for noon ET on Wednesday to launch a fungible $310 million covenant-lite incremental first-lien term loan due November 2026, according to a market source.

Like the existing term loan, the incremental term loan is priced at Libor plus 450 bps with a 25 bps step-down at 5.65x total net leverage and a 0% Libor floor. Original issue discount talk on the incremental term loan is not yet available, the source said.

The incremental term loan is getting 101 soft call protection for six months.

Commitments are due at 5 p.m. ET on July 21, the source added.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to fund the acquisition of Results Physiotherapy, a Nashville-based provider of physical therapy services.

Pro forma for the transaction, the first-lien term loan will total $883 million.

Upstream Rehab is a Birmingham, Ala.-based provider of outpatient rehabilitation services.

Excelitas readies loan

Excelitas Technologies will hold a lender call at 11 a.m. ET on Wednesday to launch a fungible $110 million add-on term loan (B1/B-), a market source said.

Pricing on the add-on term loan is Libor plus 350 bps with a 1% Libor floor, and the debt is talked with an original issue discount of 99.5 to 99.75, the source said.

JPMorgan Chase Bank is leading the deal that will be used to fund the acquisition of PCO-Tech AG and for general corporate purposes.

Excelitas is a Waltham, Mass.-based optoelectronics provider to military and defense customers and commercial original equipment manufacturers. PCO is a Kelheim Germany-based provider of scientific CMOS, CCD and high-speed cameras for use in life science, physical science, automotive testing and industrial applications.

Switch joins calendar

Switch scheduled a lender call for 1 p.m. ET on Wednesday to launch a $400 million seven-year term loan B, according to a market source.

BMO Capital Markets, Wells Fargo Securities LLC, Goldman Sachs Bank USA and JPMorgan Chase Bank are leading the deal that will be used to amend and extend an existing term loan B due 2024.

Switch is a Las Vegas-based developer and operator of data centers.

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