Liftoff, PS Logistics, Cable & Wireless, Virtusa, Cano, U.S. Anesthesia, J&J, Team break

By Sara Rosenberg

New York, Sept. 23 – Liftoff Mobile Inc./Vungle Inc. (Red Planet Borrower LLC) increased the size of its term loan B and finalized the spread and original issue discount at the tight end of guidance, and PS Logistics adjusted the issue price on its term loan B, and then these deals freed to trade on Thursday.

Also, before breaking for trading, Cable & Wireless (Coral-U.S. Co-Borrower LLC) set pricing on its term loan B-6 at the high end of talk and tightened the original issue discount, Virtusa Corp. finalized the Libor floor on its term loan B at the high end of guidance, and Cano Health LLC modified the issue price on its incremental first-lien term loan.

Other deals to hit the secondary market during the session included U.S. Anesthesia Partners, J&J Gaming (J&J Ventures Gaming LLC) and Team Services Group.

In more happenings, Sanderson Farms Inc./Wayne Farms LLC downsized its term loan B and set pricing at the narrow end of talk, and upsized its term loan A-1, and DexKo Global Inc. moved some funds between its U.S. and euro term loans, lowered spreads and revised step-downs.

Furthermore, Colonial First State downsized its U.S. term loan and upsized its Australian term loan, Catalent Inc. changed the original issue discount on its incremental term loan B, and American Tire Distributors Inc. delayed the launch of its term loan B.

Additionally, Medical Solutions, RugsUSA (Runner Buyer Inc.), Global Medical Response and Pacific Bells released price talk with launch, and All My Sons and Spirit AeroSystems Holdings Inc. joined the near-term calendar.

Liftoff upsizes, frees up

Liftoff/Vungle raised its seven-year senior secured covenant-lite term loan B to $1.4 billion from $1.25 billion, set the spread at Libor plus 375 basis points, the low end of the Libor plus 375 bps to 400 bps talk, and firmed the original issue discount at 99.5, the tight end of the 99 to 99.5 talk, according to a market source.

The 0.5% Libor floor and 101 soft call protection for six months on the term loan were unchanged.

The company’s now $1.55 billion of credit facilities also include a $150 million revolver.

Recommitments were due at 12:45 p.m. ET on Thursday and the term loan B broke for trading late in the day, with levels quoted at 99¾ bid, par ¼ offered, a trader added.

Morgan Stanley Senior Funding Inc., Credit Suisse Securities (USA) LLC, Nomura, Goldman Sachs Bank USA, Barclays and Mizuho are leading the deal that will be used to refinance the company’s existing capital structure and pay a one-time dividend distribution to shareholders, which was increased with the term loan upsizing.

Closing is expected on Sept. 30.

Liftoff/Vungle is a Redwood City, Calif.-based platform that fuels the mobile app growth cycle.

PS Logistics tweaked, trades

PS Logistics modified the original issue discount on its $385 million seven-year term loan B (B1/B) to 99.5 from 99, a market source said.

Pricing on the term loan remained at Libor plus 425 bps with a 0.75% Libor floor, and the debt still has 101 soft call protection for six months.

Recommitments were due at 2 p.m. ET on Thursday and the term loan hit the secondary market late in the day, with levels quoted at 99¾ bid, par ¼ offered, a trader added.

RBC Capital Markets, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and KKR Capital Markets are leading the term loan that will be used with $300 million of eight-year senior notes to help fund the buyout of the company by Gamut Capital Management LP and British Columbia Investment Management Corp. and refinance a roughly $300 million term loan B.

The company also plans on getting a $100 million ABL revolver for which Wells Fargo is the agent.

Closing is expected in the third quarter, subject to customary conditions.

PS Logistics is a Birmingham, Ala.-based flatbed transportation and full-service logistics provider.

Cable & Wireless updated, breaks

Cable & Wireless finalized pricing on its $590 million eight-year covenant-lite term loan B-6 (Ba3/BB-/BB-) at Libor plus 300 bps, the high end of the Libor plus 275 bps to 300 bps talk, and changed the original issue discount to 99.25 from 99, according to a market source.

As before, the term loan has a 0% Libor floor and 101 soft call protection for six months.

Recommitments were due at 2:30 p.m. ET on Thursday and the term loan started trading late day, with levels quoted at 99½ bid, 99¾ offered, another source added.

Deutsche Bank Securities Inc., BNP Paribas Securities Corp., BofA Securities Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, FCIB, Goldman Sachs Bank USA, JPMorgan Chase Bank, RBC Capital Markets, Bank of Nova Scotia and Societe Generale are leading the deal that will be used to redeem in full the company’s existing $500 million of senior notes due 2026, redeem $55 million of the existing $550 million senior secured notes due 2027, and pay transaction-related premium, fees and expenses.

Cable & Wireless, a subsidiary of Liberty Latin America, is a provider of telecom services in Central America and the Caribbean.

Virtusa finalizes, frees

Virtusa set the Libor floor on its $599 million term loan B at 0.75%, the high end of the 0.5% to 0.75% talk, according to a market source.

Pricing on the term loan remained at Libor plus 375 bps with a par issue price, and the debt still has 101 soft call protection for six months.

The term loan broke for trading on Thursday, with levels quoted at par 1/8 bid, par ½ offered, another source added.

BofA Securities Inc. is the left lead on the deal that will be used to reprice an existing term loan down from Libor plus 425 bps with a 0.75% Libor floor.

Virtusa is a Southborough, Mass.-based provider of digital strategy, digital engineering, and IT services and solutions that help clients change and disrupt markets through innovation engineering.

Cano tightens, breaks

Cano Health moved the issue price on its fungible $100 million incremental covenant-lite first-lien term loan (B2/B) due November 2027 to par from 99.5, a market source remarked.

Like the existing first-lien term loan, the incremental term loan is priced at Libor plus 450 bps with a 25 bps step-down at B2/B stable ratings and a 0.75% Libor floor, and has 101 soft call protection through Dec. 29.

Recommitments were due at 11 a.m. ET on Thursday and the incremental term loan began trading during the session, with levels quoted at par 1/8 bid, par 3/8 offered, another source added.

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used with $300 million of senior notes to refinance a senior unsecured bridge loan and add cash to the balance sheet.

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

U.S. Anesthesia starts trading

U.S. Anesthesia Partners’ bank debt made its way into the secondary market, with the $1.6 billion seven-year first-lien term loan B (B2/B) quoted at 99¾ bid, par ¼ offered and the $350 million eight-year second-lien term loan (Caa2/CCC+) quoted at 99½ bid, according to a market source.

Pricing on the first-lien term loan is Libor plus 425 bps with a 25 bps step-down at 0.75x inside closing date first-lien leverage and a 0.5% Libor floor. The debt was sold at an original issue discount of 99.5 and has 101 soft call protection for six months.

The second-lien term loan is priced at Libor plus 750 bps with a 0.5% Libor floor and was issued at a discount of 98.5. This tranche has call protection of 102 in year one and 101 in year two.

During syndication, pricing on the first-lien term loan firmed at the high end of the Libor plus 400 bps to 425 bps talk and the discount was changed from 99.

Goldman Sachs Bank USA, Barclays, JPMorgan Chase Bank, Capital One, Fifth Third, Antares Capital and BMO Capital Markets are leading the deal that will be used with balance sheet cash to refinance existing debt and pay a dividend to shareholders. Goldman is the agent on the first-lien and Ares is the agent on the second-lien.

U.S. Anesthesia is a Dallas-based physician-service organization focused on providing anesthesia services.

J&J hits secondary

J&J Gaming’s fungible $73 million incremental covenant-lite first-lien term loan (B2/B) due April 2028 began trading in the morning, with levels quoted at par 3/8 bid, par ¾ offered, a market source said.

Pricing on the incremental term loan is Libor plus 400 bps with a 0.75% Libor floor and the debt has 101 soft call protection through Oct. 26, all in line with the existing first-lien term loan. The incremental loan was sold at an original issue discount of 99.875.

On Wednesday, the discount on the incremental term loan was tightened from talk in the range of 99.5 to 99.75.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to fund a tuck-in acquisition.

J&J is an operator of video gaming terminals in Illinois.

Team Services tops OID

Team Services Group’s fungible $110 million incremental first-lien term loan due December 2027 freed up as well, with levels quoted at 99¾ bid, par ½ offered, a market source remarked.

Pricing on the incremental first-lien term loan is Libor plus 500 bps with a 1% Libor floor, in line with existing first-lien term loan pricing, and the new debt was sold at an original issue discount of 99. The incremental loan has 101 soft call protection for six months.

The company is also getting a fungible $20 million incremental second-lien term loan due December 2028 priced at Libor plus 900 bps with a 1% Libor floor, in line with the existing second-lien term loan, and issued at a discount of 99. The incremental second-lien loan has call protection of 102 in year one and 101 in year two.

During syndication, the incremental first-lien term loan was upsized from $90 million and the discount was tightened from 98, and the discount on the second-lien term loan was revised from 97.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to finance a tuck-in acquisition, and the funds from the recent upsizing will add cash to the balance sheet.

Team Services is a provider of employment administration and risk management solutions that facilitate self-directed home care.

Sanderson reworked

Back in the primary market, Sanderson Farms/Wayne Farms scaled back its seven-year term loan B to $500 million from $750 million and increased its term loan A-1 to $1.25 billion from $1 billion, according to market sources.

Also, pricing on the term loan B firmed at Libor plus 225 bps, the low end of the Libor plus 225 bps to 250 bps talk, sources said.

As before, the term loan B has a 0.5% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

The company’s $3.25 billion of credit facilities (Ba3/BB+) still include a $750 million revolver and a $750 million Farm Credit term loan A-2.

Commitments were due at 5 p.m. ET on Thursday, sources added.

Sanderson lead banks

BofA Securities Inc., Rabobank, BMO Capital Markets, BNP Paribas Securities Corp., Fifth Third, PNC Bank, Regions, SMBC, UBS Investment Bank and Wells Fargo Securities LLC are leading Sanderson Farms/Wayne Farms’ credit facilities.

The new debt will be used with equity to fund the acquisition of Sanderson by Cargill and Continental Grain Co. for $203 per share in cash, representing a total equity value of $4.53 billion, and merger of Sanderson with Wayne Farms, a subsidiary of Continental Grain.

Closing is expected by the end of 2021 or early 2022, subject to regulatory and Sanderson stockholder approval, and other customary conditions.

Sanderson is a Laurel, Miss.-based producer of fresh, frozen and minimally prepared chicken. Wayne Farms is an Oakwood, Ga.-based poultry producer.

DexKo restructures

DexKo upsized its seven-year covenant-lite first-lien term loan B to $1.06 billion from $960 million by increasing the delayed-draw tranche to $170 million from $160 million, trimmed pricing to Libor plus 375 bps from talk in the range of Libor plus 400 bps to 425 bps, removed the 25 bps pricing step-downs at 0.5x and 1x inside closing first-lien net leverage, but added a 25 bps step-down upon a qualifying initial public offering, and changed the delayed-draw ticking fees to half the margin from days 61 to 120 and the full margin thereafter from half the margin from days 61 to 180 and the full margin thereafter, a market source remarked.

The company downsized its euro seven-year covenant-lite first-lien term loan B to $1.15 billion equivalent from $1.25 billion equivalent by decreasing the delayed-draw tranche to $110 million equivalent from $120 million equivalent, cut pricing to Euribor plus 400 bps from Euribor plus 425 bps, and removed the 25 bps step-down at 0.5x inside closing first-lien net leverage, but left the 25 bps step-down at 1x inside closing first-lien net leverage and added a 25 bps step-down upon a qualifying initial public offering, the source continued.

The U.S. term loan still has a 0.5% Libor floor, the euro term loan still has a 0% floor, and both term loans still have an original issue discount of 99.5 and 101 soft call protection for six months.

DexKo being acquired

DexKo will use the term loans to help fund its acquisition by Brookfield Business Partners LP from KPS Capital Partners LP for $3.4 billion, and to pay transaction fees and expenses.

Credit Suisse is the physical bookrunner and agent on the deal. Other bookrunners include Deutsche Bank Securities Inc., BMO Capital Markets, BofA Securities Inc., Barclays, BNP Paribas Securities Corp., CIBC, Goldman Sachs, RBC Capital Markets and TD Securities.

Euro recommitments are due at 7 a.m. ET on Friday and allocations are expected on Friday, the source added.

DexKo is a Novi, Mich.-based producer of highly engineered products critical to safety and performance of towable industrial trailer and recreational trailer applications.

Colonial retranches

Colonial First State trimmed its U.S. term loan to $450 million from A$1 billion equivalent (roughly $735 million) and raised its Australian term loan to A$890 million from A$500 million, a market source remarked.

Talk on the U.S. term loan remained at Libor plus 400 bps to 425 bps with a 0.5% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

The company is still also getting a A$150 million delayed-draw term loan.

Commitments were due at 3 p.m. ET on Thursday, the source added.

BofA Securities Inc., KKR Capital Markets, Jefferies LLC, Commonwealth, Credit Suisse, HSBC Securities, MUFG, UBS Investment Bank and Natixis are leading the deal (Ba2/BB) that will be used to help fund the buyout of a 55% interest in the company by KKR from Commonwealth Bank of Australia for about $1.7 billion.

Colonial First State is an Australia-based provider of superannuation, investment and retirement products.

Catalent revised

Catalent tightened the original issue discount on its fungible $450 million incremental term loan B to 99.75 from talk in the range of 99 to 99.5, according to a market source.

Pricing on the incremental term loan is Libor plus 200 bps with a 0.5% Libor floor, in line with existing term loan B pricing.

Commitments are due at 10 a.m. ET on Friday, accelerated from noon ET on Friday, the source added.

JPMorgan Chase Bank is leading the deal that will be used to help fund the acquisition of Bettera Holdings LLC, a Plano, Tex.-based manufacturer of gummy, soft chew and lozenge nutritional supplements, from Highlander Partners LP for $1 billion, subject to customary adjustments.

Closing is expected before the end of the year.

Catalent is a Somerset, N.J.-based provider of development sciences and manufacturing platforms for medicines.

American Tire postponed

American Tire Distributors delayed the launch of its $1 billion seven-year term loan B (/B-/B-) and did not hold its planned lender call at 1 p.m. ET on Thursday, a market source said.

BofA Securities Inc., Wells Fargo Securities LLC and Citigroup Global Markets Inc. are leading the deal that will be used to refinance existing debt.

American Tire is a Huntersville, N.C.-based tire distributor.

Medical Solutions guidance

Medical Solutions held its lender call on Thursday morning and disclosed talk on its $1 billion first-lien term loan (B) and $200 million first-lien delayed-draw term loan (B) at Libor plus 375 bps to 400 bps with a 0.5% 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. 7, the source added.

The company is also getting a $320 million privately placed second-lien term loan (CCC+).

UBS Investment Bank, Jefferies LLC, Goldman Sachs Bank USA, Wells Fargo Securities LLC, MUFG, Citizens Bank, KeyBanc Capital Markets, TD Securities (USA) LLC and SMBC are leading the deal that will be used to help fund the buyout of the company by Centerbridge Partners LP and Caisse de depot et placement du Quebec from TPG Growth.

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

Medical Solutions is an Omaha-based provider of total workforce solutions in the health care industry.

RugsUSA proposed terms

RugsUSA announced price talk of Libor plus 500 bps with a 0.75% Libor floor and an original issue discount of 99 on its $500 million seven-year senior secured term loan B (B2/B) that launched with a call in the afternoon, a market source remarked.

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

Commitments are due at 5 p.m. ET on Oct. 7, the source added.

Barclays, Jefferies LLC, Deutsche Bank Securities Inc. and Stifel are leading the deal that will be used to help fund the buyout of the company by Francisco Partners from Comvest Partners.

Closing is expected this year.

Koorosh Yaraghi, founder of RugsUSA, and Comvest Partners will retain a minority stake in the company.

RugsUSA is an e-commerce provider of area rugs and home decor products.

Global Medical repricing

Global Medical Response launched in the morning without a call a $1.98 billion term loan due October 2025 talked at Libor plus 425 bps with a 1% 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 term loan due October 2025 down from Libor plus 475 bps with a 1% Libor floor.

Global Medical Response is a Greenwood Village, Colo.-based medical transportation and response company.

Pacific Bells sets talk

Pacific Bells came out with talk of Libor plus 425 bps with a 0.5% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months on its $460 million seven-year covenant-lite term loan B and $75 million seven-year covenant-lite delayed-draw term loan B in connection with its afternoon call, a market source said.

The company’s $585 million of credit facilities (B3/B-) also include a $50 million five-year revolver.

Commitments are due on Oct. 7, the source added.

Citizens Bank, Fifth Third and Truist are leading the deal that will be used to help fund the buyout of the company by Orangewood Partners.

Closing is subject to regulatory approval and certain commercial arrangements.

Pacific Bells is the fifth largest franchisee of Taco Bell restaurants in the United States.

All My Sons on deck

All My Sons will hold a lender call in the afternoon on Sept. 30 to launch $455 million of senior secured credit facilities, according to a market source.

The facilities consist of a $50 million revolver, a $290 million first-lien term loan and a $115 million second-lien term loan, the source said.

Commitments are due on Oct. 15.

Antares Capital and Golub Capital are leading the deal that will be used to support a recapitalization of the company by Golden Gate Capital in partnership with the founder and management team.

Previously, it was known that the company would be coming to market late this month to launch a financing for the recapitalization but specific timing and structure were unavailable.

All My Sons is a Carrollton, Tex.-based provider of residential moving and related services.

Spirit readies loan

Spirit AeroSystems scheduled a lender call for 10 a.m. ET on Friday to launch a $600 million term loan B due January 2025, a market source remarked.

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

BofA Securities Inc. is the left lead on the deal that will be used to refinance an existing term loan B due January 2025 and for general corporate purposes.

Spirit AeroSystems is a Wichita, Kan.-based designer and builder of aerostructures for both commercial and defense customers.

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