Calpine breaks; Aspen Dental, Consumer Cellular, Wellness Pet, Gemini HDPE and more set talk

By Sara Rosenberg

New York, Dec. 2 – Calpine Corp. increased the size of its term loan B-5 (Ba2/BB+) and finalized the original issue discount at the wide end of guidance, and then the debt made its way into the secondary market on Wednesday.

In other news, Aspen Dental Management, Consumer Cellular Inc., Wellness Pet Food Holdings Co. Inc. (Woof Intermediate Inc.), Gemini HDPE LLC, International-Matex Tank Terminals (RS Ivy Holdco), Syncapay Inc. and Flexera Software LLC disclosed price talk with launch.

Also, Cano Health LLC, RxBenefits Inc. (RXB Holdings Inc.) and Service King Collision Repair Centers emerged with new deal plans.

Calpine updated, trades

Calpine raised its senior secured term loan B-5 (Ba2/BB+) due December 2027 to $1 billion from $750 million and set the original issue discount at 99, the wide end of the 99 to 99.5 talk, a market source remarked.

As before, the term loan is priced at Libor plus 250 basis points with a 0% Libor floor and has 101 soft call protection for six months.

Recommitments were due at 3:30 p.m. ET on Wednesday and the term loan B-5 broke for trading in the evening with levels quoted at 99¼ bid, 99½ offered, another source added.

Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, MUFG, SMBC, BofA Securities Inc., Morgan Stanley Senior Funding Inc., Deutsche Bank Securities Inc., Citigroup Global Markets Inc., Natixis, Barclays, Goldman Sachs Bank USA, BNP Paribas Securities Corp., Credit Agricole and RBC Capital Markets are leading the deal that will be used to refinance an existing term loan B-5 due January 2024.

Calpine is a Houston-based provider of power generation services.

Aspen Dental sets talk

In more happenings, Aspen Dental Management held its lender call on Wednesday afternoon and launched its non-fungible $1.2 billion seven-year incremental term loan B at talk of Libor plus 400 bps to 425 bps with leverage-based step-downs to be determined, a 0.75% Libor floor and an original issue discount of 99, according to a market source.

The company’s $1.45 billion of credit facilities (B2/B) also include a $250 million five-year revolver.

Commitments are due at 5 p.m. ET on Dec. 15.

RBC Capital Markets, J.P. Morgan Securities LLC, Deutsche Bank Securities Inc. and Credit Suisse Securities (USA) LLC are leading the deal that will be used to fund the acquisition of ClearChoice Management Services from Sun Capital Partners Inc.

Closing is expected by the end of the year, subject to regulatory and other customary conditions.

Aspen Dental is an East Syracuse, N.Y.-based dental support organization. ClearChoice is a provider of administrative practice management services to the network of ClearChoice Dental Implant Centers.

Consumer Cellular guidance

Consumer Cellular released talk of Libor plus 425 bps to 450 bps with a 0.75% Libor floor and an original issue discount of 98.5 on its $1.1 billion seven-year first-lien term loan B (B1/B-) that launched with a morning call, a market source said.

The company is also getting a $300 million privately placed second-lien term loan (Caa1/CCC).

BofA Securities Inc., Barclays, Jefferies LLC and Credit Suisse Securities (USA) LLC are leading the deal, which will be used to help fund the buyout of the company by GTCR.

Closing is expected this quarter.

Consumer Cellular is a Portland, Ore.-based provider of postpaid wireless services.

Wellness Pet floats terms

Wellness Pet disclosed price talk on its $720 million seven-year first-lien term loan (B2/B-) and $265 million eight-year second-lien term loan (Caa2/CCC) in connection with its lender call during the session, a market source remarked.

Talk on the first-lien term loan is Libor plus 425 bps with a 0.75% Libor floor and an original issue discount of 98.5 to 99, and talk on the second-lien term loan is Libor plus 800 bps with a 0.75% Libor floor and a discount of 98 to 98.5, the source added.

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

Commitments are due at 5 p.m. ET on Dec. 16.

J.P. Morgan Securities LLC is leading the $985 million of term loans that will be used to help fund the buyout of the company by Clearlake Capital Group, LP from Berwind Corp.

Wellness Pet is a Tewksbury, Mass.-based supplier of pet food and treats.

Gemini HDPE guidance

Gemini HDPE came out with talk of Libor plus 300 bps to 325 bps with a 0.5% Libor floor and an original issue discount of 99 on its $600 million seven-year senior secured term loan B (Ba3/BB) that launched with a call in the morning, according to a market source.

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

Commitments are due at 5 p.m. ET on Dec. 10.

Barclays and Morgan Stanley Senior Funding Inc. are leading the deal that will be used to amend and extend an existing term loan B and fund the $404 million acquisition by Ineos Olefins and Polymers USA of Sasol’s 50% interest in the company and, thereby, become the 100% owner of the asset.

The transaction is targeted to close on Dec. 31.

Gemini HDPE is a bimodal high-density polyethylene plant situated in La Porte, Tex.

International-Matex launches

International-Matex Tank Terminals launched in the morning its $450 million seven-year senior secured term loan (B2/B/BB) at talk of Libor plus 550 bps to 575 bps with a 1% Libor floor, an original issue discount of 98 and 101 soft call protection for six months, a market source said.

Commitments are due at the close of business on Dec. 16, the source added.

Jefferies LLC, Goldman Sachs Bank USA and Barclays are leading the deal that will be used to help fund the acquisition of the company by Riverstone Holdings LLC from Macquarie Infrastructure Corp. for total consideration of $2.685 billion.

Closing is expected in late 2020 or early in 2021, subject to customary approvals and conditions.

International-Matex is a New Orleans-based handler and storer of bulk liquid products.

Syncapay talk emerges

Syncapay released talk of Libor plus 625 bps to 650 bps with a 1% Libor floor, an original issue discount of 97 and 101 soft call protection for one year on its $450 million seven-year term loan B that launched with a call in the morning, according to a market source.

The company’s $500 million of credit facilities (B2/B) also include a $50 million revolver.

Commitments are due at 5 p.m. ET on Dec. 16, the source added.

BMO Capital Markets, Fifth Third and Truist are leading the deal, which will be used to help fund the merger of Buffalo Grove, Ill.-based daVinci Payments, a deliverer of corporate funded payments, and Conshohocken, Pa.-based North Lane, a payments technology company, with Syncapay the holding company.

With this transaction, Centerbridge Partners LP is making a new majority equity investment in Syncapay.

Closing is expected this quarter, subject to regulatory approval and other customary conditions.

Syncapay is a Plano, Tex.-based acquirer of payment companies.

Flexera proposed terms

Flexera Software held its call in the afternoon and announced price talk on its non-fungible $285 million incremental first-lien term loan due February 2027 at Libor plus 400 bps to 425 bps with a 25 bps leverage-based step-down, a 0.75% Libor floor and an original issue discount of 99, a market source remarked.

The incremental first-lien term loan has 101 soft call protection for six months.

Commitments are due at noon ET on Dec. 11, the source added.

The company is also getting a $65 million revolver due December 2025, and a $260 million privately placed second-lien term loan due December 2028 with hard call protection of 102 in year one and 101 in year two.

Jefferies LLC, BofA Securities Inc., Barclays, UBS Investment Bank, Truist and Mizuho are leading the deal that will be used to fund the majority acquisition of the company by Thoma Bravo and will supplement the existing portable first-lien term loan.

Flexera is an Itasca, Ill.-based provider of software that allows software publishers, intelligent device manufacturers, and software buyers to install, track, monitor, and manage application usage to optimize utilization.

Cano readies deal

Cano Health set a lender call for noon ET on Thursday to launch $685 million of credit facilities (B3/B), according to a market source.

The facilities consist of a $30 million revolver, a $480 million funded seven-year covenant-lite first-lien term loan and a $175 million delayed-draw covenant-lite first-lien term loan.

Talk on the strip of funded and delayed-draw term loan debt is Libor plus 500 bps to 525 bps with a 25 bps step-down at special purpose acquisition company closing and/or a 25 bps step-down at B2/B corporate family ratings, a 0.75% Libor floor and an original issue discount of 99, the source continued.

Included in the term loan debt is 101 soft call protection for six months, and the delayed-draw term loan has a ticking fee of half the margin from days 31 to 60 and the full margin thereafter.

Commitments are due at 5 p.m. ET on Dec. 17, the source added.

Cano recapitalizing

Cano Health will use its new credit facilities to refinance existing debt and fund a shareholder distribution.

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

The company announced in November a merger agreement with Jaws Acquisition Corp., a special purpose acquisition company, in a transaction that values Cano Health at about $4.4 billion.

The business combination is expected to deliver up to $1.49 billion of gross proceeds, including the contribution of up to $690 million of cash held in Jaws Acquisition’s trust account and an $800 million concurrent private placement of common stock of the combined company.

Closing on the merger is expected at the end of the first quarter or the beginning of the second quarter of 2021, subject to approval by Jaws Acquisition’s shareholders and other customary conditions.

Cano Health is a Miami-based tech-powered, value-based care delivery platform.

RxBenefits joins calendar

RxBenefits scheduled a lender call for 11 a.m. ET on Thursday to launch a $300 million first-lien term loan (B2/B-), a market source said.

The company is also getting a $120 million privately placed second-lien term loan, the source added.

Barclays, Deutsche Bank Securities Inc. and Goldman Sachs Bank USA are leading the deal that will be used to fund a recapitalization of the company by Advent International and Great Hill Partners.

RxBenefits is a Birmingham, Ala.-based pharmacy benefits optimizer for the employee benefit industry.

Service King on deck

Service King Collision Repair Centers set a lender call for Thursday to launch a $700 million five-year term loan B, according to a market source.

The term loan is non-callable for one year, then at 102 in year two and 101 in year three, the source said.

BofA Securities Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC are leading the deal that will be used to refinance existing debt.

Service King is a Richardson, Tex.-based operator of a chain of automobile body repair centers.

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