Jane, Ineos, Westinghouse, Murphy break; Careismatic, First Advantage, Vestcom tweaked

By Sara Rosenberg

New York, Jan. 21 – Jane Street Group LLC upsized its add-on term loan B and adjusted the original issue discount before freeing up for trading on Thursday, and deals from Ineos Quattro, Westinghouse (Brookfield WEC Holdings Inc.) and Murphy USA Inc. surfaced in the secondary market as well.

In more happenings, Careismatic Brands moved some funds between its first- and second-lien term loans, and tightened spreads, Libor floors and original issue discounts on both tranches, First Advantage cut pricing on its add-on term loan and changed the original issue discount, and added a repricing of its existing term loan to its transaction, and Vestcom Parent Holdings Inc. increased the size of its incremental first-lien term loan B.

Also, Whole Earth Brands Inc., Precisely, Epicor Software Corp., American Bath Group LLC (CP Atlas Buyer Inc.), KIK Consumer Products (Kronos Acquisition Holdings Inc.) and Citadel announced price talk with launch, and Rent-A-Center Inc. joined the near-term primary calendar.

Jane revised, trades

Jane Street Group increased its fungible seven-year add-on term loan B to $577 million from $300 million and changed the original issue discount on the add-on debt to 99.875 from 99.75, according to a market source.

As before, the add-on term loan and repriced and extended seven-year $1.573 billion term loan B are priced at Libor plus 275 basis points with a 0% Libor floor, and have 101 soft call protection for six months.

Lenders were offered a 10 bps amendment fee.

Previously in syndication, pricing on the add-on term loan was reduced from Libor plus 300 bps, the maturity was extended from 2025, and the existing term loan repricing from Libor plus 300 bps and extension from 2025 was added to the transaction.

Recommitments were due at noon ET on Thursday, and then term loan debt broke for trading in the afternoon, with levels quoted at par bid, par ½ offered, another source added.

J.P. Morgan Securities LLC is leading the deal.

The add-on loan will be used for general corporate purposes.

Jane Street is a New York-based quantitative trading firm.

Ineos hits secondary

Ineos Quattro’s $2 billion five-year first-lien term loan B (Ba3/BB/BB+) freed to trade, with levels quoted at par ¼ bid, par 5/8 offered, according to a market source.

Pricing on the U.S. term loan is Libor plus 275 bps with a 0.5% Libor floor, and it was sold at an original issue discount of 99.5. The loan has 101 soft call protection for six months.

The company is also getting a €1.5 billion five-year first-lien term loan B (Ba3/BB/BB+) priced at Euribor plus 275 bps with a 0% floor and issued at a discount of 99.5. This tranche has 101 soft call protection for six months as well.

During syndication, the total amount of U.S. and euro term loan debt was increased to €3.15 billion equivalent from a revised size of €2.9 billion equivalent and an initial size of €2.6 billion equivalent, pricing was flexed down from revised talk of Libor/Euribor plus 300 bps and initial talk of Libor/Euribor plus 325 bps to 350 bps, and the discount firmed at the tight end of revised talk of 99.25 to 99.5 and initial talk of 99 to 99.5.

Ineos lead banks

JPMorgan, Barclays, BNP Paribas Securities Corp., Citigroup Global Markets Inc., Goldman Sachs and HSBC are the bookrunners on Ineos Quattro’s U.S. tranche, with JPMorgan the left lead. BNP, Goldman Sachs and JPMorgan are the joint physical bookrunners on the euro tranche, and Barclays, Citigroup and HSBC are bookrunners. Other joint bookrunners on the debt include BofA Securities Inc., Commerzbank, Credit Suisse, Lloyds, Mizuho, Morgan Stanley, NatWest, ABN Amro, Credit Agricole, Deutsche Bank, ING, Intesa, Santander, Fifth Third and ICBC. Mandated lead arrangers are KBC and MUFG.

Proceeds will be used to repay bridge loans incurred to fund the acquisition of BP’s Aromatics and Acetyls businesses, refinance the Inovyn term loan B, fund the deferred consideration owed to BP, pay transaction related fees and expenses, and, due to the recent term loan B upsizing, to repay in full an existing euro term loan A.

Other funds for the transaction will come from cash on hand, $500 million of senior secured notes and €800 million of senior secured notes, which were recently upsized from a total senior secured notes amount of €1 billion equivalent, and €500 million of senior unsecured notes, which were recently downsized from €1 billion.

Ineos Quattro is a chemicals company that was created through the combination of two of Ineos’ existing businesses, Ineos Styrolution and Inovyn, and BP’s Aromatics and Acetyls businesses.

Westinghouse frees up

Westinghouse’s $3 billion first-lien term loan (B2/B/B+) due August 2025 began trading too, with levels quoted at par ¼ bid, par ½ offered, a market source remarked.

Pricing on the term loan is Libor plus 275 bps with a 25 bps step-down at B1/B+ corporate ratings with stable outlooks and a 0.5% Libor floor. The debt was issued at par and has 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to reprice an existing term loan. The company obtained the term loan last year at pricing of Libor plus 300 bps with a 25 bps step-down at B1/B+ corporate ratings with stable outlooks and a 0.75% Libor floor.

Westinghouse is a Pittsburgh-based provider of infrastructure services to a nuclear reactor fleet.

Murphy starts trading

Murphy USA’s bank debt broke as well, with the $400 million seven-year term loan B quoted at par bid, par ½ offered, a trader said.

Pricing on the term loan is Libor plus 175 bps with a 0.5% Libor floor and it was sold at an original issue discount of 99.75. The loan has 101 soft call protection for six months.

During syndication, pricing on the term loan was trimmed from talk in the range of Libor plus 200 bps to 225 bps and the discount was modified from 99.5.

The company’s $750 million of credit facilities (Baa3/BBB-) also include a $350 million five-year revolver, which is expected to be undrawn at close.

RBC Capital Markets is leading the deal that will be used with $500 million of senior unsecured notes and cash on hand to fund the $645 million acquisition of QuickChek Corp. and to repay outstanding debt under the existing senior credit facility.

Closing is expected on Jan. 29.

Murphy USA is an El Dorado, Ark.-based retailer of gasoline and convenience merchandise. QuickChek is a Whitehouse Station, N.J., operator of convenience market stores.

Careismatic reworked

Back in the primary market, Careismatic Brands raised its seven-year covenant-lite first-lien term loan to $605 million from $575 million, cut pricing to Libor plus 325 bps from talk in the range of Libor plus 375 bps to 400 bps, changed the Libor floor to 0.5% from 0.75% and revised the original issue discount to 99.75 from 99.5, according to a market source.

The company also downsized its eight-year covenant-lite second-lien term loan to $110 million from $140 million, lowered pricing to Libor plus 725 bps from talk in the range of Libor plus 750 bps to 775 bps, reduced the Libor floor to 0.5% from 0.75% and modified the discount to 99 from 98.5, the source said.

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

The company’s $815 million of credit facilities also include a $100 million five-year revolver.

Careismatic allocating soon

Recommitments for Careismatic Brands’ credit facilities were due at 3 p.m. ET on Thursday and allocations are targeted for Friday, the source added.

UBS Investment Bank, Credit Suisse Securities (USA) LLC, Barclays, RBC Capital Markets, Macquarie Capital (USA) Inc. and BMO Capital Markets are leading the deal that will help fund the buyout of the company by Partners Group from New Mountain Capital.

Careismatic Brands is a Chatsworth, Calif.-based designer, marketer and distributor of medical apparel, corporate identity apparel, school uniforms and adaptive clothing.

First Advantage tweaked

First Advantage reduced pricing on its fungible $100 million add-on term loan to Libor plus 300 bps from Libor plus 350 bps and revised the original issue discount to 99.75 from the 99 area, according to a market source.

Also, the company added a repricing of its existing $670 million term loan to Libor plus 300 bps from Libor plus 350 bps to its transaction, and is talking the repriced loan with a discount of 99.875 to par, the source said.

The term loan debt has a 0% Libor floor and 101 soft call protection for six months.

Commitments are due at 5 p.m. ET on Friday, with allocations expected on Monday, the source added.

BofA Securities Inc. is leading the deal.

The add-on will be used to repay a privately placed second-lien term loan.

First Advantage is an Atlanta-based provider of comprehensive background screening, identity and information solutions.

Vestcom upsizes

Vestcom lifted its fungible incremental first-lien term loan B to $120 million from $100 million as the book was two times oversubscribed by Thursday morning, a market source said.

As before, the incremental term loan is priced at Libor plus 400 bps with a 1% Libor floor, in line with the existing $419 million first-lien term loan, and has an original issue discount of 99.55 and 101 soft call protection for six months.

Recommitments were due at 5 p.m. ET on Thursday, with allocations expected on Friday, the source added.

Antares Capital is leading the deal that will be used to fund a distribution to shareholders.

A 12.5 bps amendment fee is still being offered to all consenting lenders.

Vestcom, a Charlesbank Capital Partners portfolio company, is a Little Rock, Ark.-based provider of outsourced technology and services that support price communication, merchandising and promotion execution at the shelf edge.

Whole Earth talk

Also in the primary market, Whole Earth Brands held its call on Thursday and released talk on its $375 million term loan B at Libor plus 450 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

The company’s $450 million of credit facilities (B) also include a $75 million revolver.

Commitments are due on Jan. 29, the source added.

TD Securities (USA) LLC is leading the deal that will be used with cash on hand to fund the $180 million acquisition of Wholesome Sweeteners Inc. and to refinance existing bank debt.

Closing is expected in the company’s first quarter 2021, subject to review under antitrust laws.

Whole Earth is a Chicago-based food company focused on premium plant-based sweeteners, flavor enhancers and other foods. Wholesome Sweeteners is an organic sweetener brand.

Precisely guidance

Precisely, formerly known as Syncsort Inc., came out with talk of Libor plus 475 bps to 500 bps with a 0.75% Libor floor, an original issue discount of 99.5 to 99.75 and 101 soft call protection for six months on its $1,303,667,500 first-lien term loan due August 2024 that launched with a call in the afternoon, a market source said.

Jefferies LLC is the left lead on the deal, which will be used to reprice an existing $747,787,500 first-lien term loan and an existing $605.88 million incremental first-lien term loan.

Concurrently with the repricing, the company will voluntarily repay $50 million of the first-lien term loan borrowings.

Consenting lenders are being offered a 12.5 bps fee and consents are due at noon ET on Wednesday, the source added.

Precisely is a Pearl River, N.Y.-based provider of data integrity software and data enrichment products.

Epicor launches

Epicor Software hosted a lender call at 2:30 p.m. ET to launch a $1.92 billion first-lien term loan B talked at Libor plus 325 bps to 350 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 Tuesday, the source added.

KKR Capital Markets is the left lead on the deal that will be used to reprice an existing first-lien term loan down from Libor plus 425 bps with a 0% Libor floor.

Epicor is an Austin, Tex.-based provider of enterprise business software services.

American Bath refinancing

American Bath emerged in the morning with plans to hold a lender call at 3 p.m. ET to launch a $1.2 billion first-lien term loan (B2/B-) due December 2027 talked at Libor plus 375 bps with a 0.5% Libor floor, a par issue price and 101 soft call protection for six months, a market source remarked.

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

Credit Suisse Securities (USA) LLC is leading the deal that will be used to refinance an existing term loan, which priced late last year at Libor plus 450 bps with a 25 bps step-down at 0.5x inside closing leverage and a 0.75% Libor floor.

As part of the refinancing, existing lenders will get paid the 101 call protection that is on the existing term loan.

American Bath is an Arlington, Tex.-based manufacturer of showers, bathtubs and related accessories.

KIK holds call

KIK Consumer Products announced in the morning that it would hold a lender call at 1 p.m. ET to launch a $900 million senior secured first-lien term loan B due Dec. 22, 2026 talked at Libor plus 375 bps with a 0.5% 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 Monday, the source said.

Barclays is the left lead on the deal that will be used to refinance/reprice an existing first-lien term loan B that priced late last year at Libor plus 450 bps with a 0.75% Libor floor.

With this transaction, the company will pay the 101 call protection to existing lenders that is included in the existing term loan, the source added.

KIK is a manufacturer and distributor of household cleaning, pool sanitation and automotive performance chemicals.

Citadel comes to market

Citadel held a call at noon ET to launch a $2.5 billion seven-year term loan B talked at Libor plus 250 bps with a 0% Libor floor, an original issue discount of 99.875 and 101 soft call protection for six months, a market source said.

J.P. Morgan Securities LLC is leading the deal that will be used for general corporate purposes and to refinance existing debt.

Citadel is a Chicago-based provider of market-making services to the fixed income, currency and commodity markets.

Rent-A-Center on deck

Rent-A-Center is scheduled to hold a lender call on Tuesday to launch a $575 million term loan B, according to a market source.

Commitments are due at 5 p.m. ET on Feb. 4, the source added.

J.P. Morgan Securities LLC, Credit Suisse and HSBC Securities (USA) Inc. are leading the deal that will be used to help fund the acquisition of Acima Holdings LLC for $1.273 billion in cash and about 10.8 million shares of Rent-A-Center common stock.

Closing is expected in the first half of this year subject to customary conditions, including clearance under the Hart-Scott-Rodino Antitrust Improvements Act.

Rent-A-Center is a Plano, Tex.-based omni-channel lease-to-own provider for the credit constrained customer. Acima is a Salt Lake City-based provider of virtual lease-to-own solutions.

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