PrimeSource, Truck Hero, Focus Financial, Protective Industrial, Grab Holdings free to trade

By Sara Rosenberg

New York, Jan. 20 – PrimeSource (Park River Holdings Inc.) lowered the spread on its first-lien term loan B and tightened the original issue discount, and Truck Hero Inc. reduced pricing on its first-lien term loan and adjusted the issue price, and then both of these deals broke for trading on Wednesday.

Also, Focus Financial Partners Inc. increased the size of its add-on first-lien term loan and set the issue price at the midpoint of talk before freeing up for trading, and deals from Protective Industrial Products Inc. and Grab Holdings Inc. hit the secondary market as well.

In other news, Ineos Quattro upsized its U.S. and euro first-lien term loan B for a second time, finalized the U.S and euro tranche sizes, reduced pricing again and set the issue price at the tight side of guidance, and Murphy USA Inc. cut the spread on its term loan B and revised the original issue discount.

Additionally, Forcepoint, Gannett Holdings LLC, AlixPartners LLP, Howden Group Holdings Ltd., Endurance International Group Holdings Inc., Calpine Corp. and Resolute Investment Managers released price talk with launch, and Precisely joined this week’s primary calendar.

PrimeSource flexes, breaks

PrimeSource trimmed pricing on its $1.095 billion seven-year covenant-lite first-lien term loan B (B2/B/B+) to Libor plus 325 basis points from talk in the range of Libor plus 400 bps to 425 bps and revised the original issue discount to 99.5 from 99, a market source remarked.

As before, the term loan has a 0.75% Libor floor and 101 soft call protection for six months.

Recommitments were due at 2 p.m. ET on Wednesday and the term loan started trading late in the day, with levels quoted at 99¾ bid, par ¼ offered, another source added.

Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, RBC Capital Markets, Wells Fargo Securities LLC, Nomura, Golub and Antares Capital are leading the loan that will be used with $400 million of senior notes to back the buyout of PriSo Holding Corp. (PrimeSource) by Clearlake Capital Group LP from Platinum Equity, which was completed last month, and merger with TKE Holdings Inc. (Dimora Brands).

Closing is expected on Friday.

PrimeSource is an Irving, Tex.-based provider of construction fastening solutions and other complementary specialty building products. Dimora is a provider of specialty hardware and home accessories.

Truck Hero updated, trades

Truck Hero flexed pricing on its $1.55 billion seven-year senior secured first-lien term loan (B2/B-) to Libor plus 375 bps from talk in the range of Libor plus 400 bps to 425 bps and modified the issue price to par from 99, according to a market source.

The first-lien term loan still has two 25 bps leverage-based step-downs and one 25 bps initial public offering-based step-down, a 0.75% Libor floor and 101 soft call protection for six months.

The company’s $1.75 billion of credit facilities also include a $200 million five-year ABL revolver.

In the afternoon, the term loan freed to trade, with levels quoted at par ½ bid, 101¼ offered, another source added.

Jefferies LLC, BofA Securities Inc., Credit Suisse Securities (USA) LLC, KKR Capital Markets and Stifel are leading the deal that will be used with $600 million of senior unsecured notes to help fund the buyout of the company by a consortium led by L Catterton.

Closing is expected this quarter, subject to customary conditions.

Truck Hero is an Ann Arbor, Mich.-based provider of aftermarket accessories for pickup trucks and Jeeps.

Focus revised, frees up

Focus Financial increased its fungible add-on first-lien term loan due July 2024 to $500 million from $375 million and finalized the original issue discount at 99.875, the middle of the 99.75 to par talk, a market source said.

The add-on term loan is priced at Libor plus 200 bps with a 0% Libor floor, and has 101 soft call protection for six months.

Commitments were due at 3 p.m. ET on Wednesday and the add-on term loan began trading late in the day, with levels quoted at par bid, par 3/8 offered, a trader added.

RBC Capital Markets, Stone Point Capital Markets, KKR Capital Markets, BMO Capital Markets, Truist, Capital One, Fifth Third, Goldman Sachs Bank USA, MUFG, Regions Bank, BofA Securities Inc., Bank United and Citizens are leading the deal that will be used to repay revolver borrowings and, as a result of the upsizing, to add cash to the balance sheet.

Closing is expected during the week of Jan. 25.

Focus Financial is a New York-based partnership of independent, fiduciary wealth management firms.

Protective Industrial breaks

Protective Industrial Products’ bank debt hit the secondary market too, with the $435 million seven-year covenant-lite first-lien term loan B (B2/B-) quoted at par ¼ bid, par ¾ offered, according to a market source.

Pricing on the first-lien term loan is Libor plus 400 bps with a 0.75% Libor floor and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months.

During syndication, pricing on the first-lien term loan was reduced from Libor plus 425 bps and the discount was tightened from 99.

The company’s $670 million of senior secured credit facilities also include a $75 million five-year revolver (B2/B-) priced at Libor plus 400 bps with a 0.75% Libor floor and a par issue price, and a $160 million privately placed second-lien term loan priced at Libor plus 825 bps with a 1% Libor floor. The second-lien term loan has hard call protection of 102 in year one and 101 in year two.

Protective funding buyout

Proceeds from Protective Industrial Products’ credit facilities will be used to help fund its acquisition by Odyssey Investment Partners from Audax Private Equity.

Antares Capital, Citizens Bank and Bank of Ireland are leading the debt.

Pro forma senior leverage is 4.75x and total leverage is 6.5x.

Protective Industrial Products is a Latham, N.Y.-based provider of personal protective equipment and industrial safety products.

Grab hits secondary

Grab Holdings’ $1.75 billion five-year term loan B broke as well, with levels quoted at 99 bid, par offered, according to a market source.

Pricing on the term loan is Libor plus 450 bps with a 1% Libor floor and it was sold at an original issue discount of 97. The debt is non-callable for two years, then at 101 in year three, with a carve-out in year one of 103 for an initial public offering.

During syndication, the term loan was upsized from $750 million and pricing was reduced from talk in the range of Libor plus 525 bps to 550 bps.

J.P. Morgan Securities LLC, Barclays, Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., Mizuho, MUFG and Standard Chartered are leading the deal that will be used for general corporate purposes.

Grab is a Singapore-based ride hailing company and a provider of food delivery, digital payments and other financial services via a mobile app.

Ineos reworked

Back in the primary market, Ineos Quattro raised its U.S. and euro five-year first-lien term loan B (Ba3/BB/BB+) to about €3.15 billion equivalent from a revised amount of €2.9 billion equivalent and an initial size of €2.6 billion equivalent, a market source remarked. The breakdown of the term loan finalized at $2 billion U.S. and €1.5 billion euro.

In addition, pricing on the term loan debt was lowered to Libor/Euribor plus 275 bps from revised talk of Libor/Euribor plus 300 bps and initial talk of Libor/Euribor plus 325 bps to 350 bps, and the original issue discount on the debt firmed at 99.5, the tight end of revised talk of 99.25 to 99.5 and initial talk of 99 to 99.5, the source continued.

The U.S. tranche still has a 0.5% Libor floor, the euro piece still has a 0% floor and all of the debt still has 101 soft call protection for six months.

Commitments for the U.S. term loan B were due at 5 p.m. ET on Wednesday and commitments for the euro term loan B are due at 5 a.m. ET on Thursday, the source added.

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. JPMorgan is the administrative agent.

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

Murphy USA modified

Murphy USA reduced pricing on its $400 million seven-year term loan B to Libor plus 175 bps from talk in the range of Libor plus 200 bps to 225 bps and adjusted the original issue discount to 99.75 from 99.5, a market source said.

The term loan still has a 0.5% Libor floor and 101 soft call protection for six months.

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.

Commitments are due at noon ET on Thursday, moved up from noon ET on Friday, the source added.

RBC Capital Markets is leading the deal that will be used with cash on hand to fund the acquisition of QuickChek Corp. in an all-cash transaction for $645 million.

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

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.

Forcepoint sets talk

Forcepoint held its lender call at 1 p.m. ET on Wednesday and, shortly before the call began, price talk on its $525 million seven-year covenant-lite first-lien term loan was announced at Libor plus 475 bps to 500 bps with a 0.5% Libor floor and an original issue discount of 98.5, according to a market source.

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

The company’s $600 million of credit facilities (B3/B-/B+) also include a $75 million revolver.

Commitments are due at 5 p.m. ET on Feb. 2.

Credit Suisse Securities (USA) LLC, UBS Investment Bank, Deutsche Bank Securities Inc. and Nomura are leading the deal that will be used to support the buyout of the company by Francisco Partners from Raytheon Technologies, which was completed earlier this month.

Forcepoint is an Austin, Tex.-based provider of cybersecurity solutions.

Gannett details emerge

Gannett launched on its morning call a $1.045 billion five-year senior secured term loan B (B1/B) talked at Libor plus 700 bps with a 0.75% Libor floor, an original issue discount of 97 to 98 and 101 soft call protection for one year, a market source remarked.

Commitments are due at 5 p.m. ET on Feb. 2, the source added.

Citigroup Global Markets Inc. is leading the deal that will be used to refinance existing debt.

Closing is expected in early February.

Gannett is a McLean, Va.-based media and marketing solutions company.

AlixPartners launches

AlixPartners LLP came out with price talk on its $1.775 billion seven-year term loan B (B2/B+) and €344 million seven-year term loan B (B2/B+) with its lender call in the morning, according to a market source.

The U.S. term loan is talked at Libor plus 275 bps to 300 bps with a 0.5% Libor floor and an original issue discount of 99 to 99.5, and the euro term loan is talked at Euribor plus 350 bps to 375 bps with a 0% floor and a discount of 99 to 99.5, the source said.

Both term loans have 101 soft call protection for six months.

Commitments are due at noon ET on Jan. 27, the source added.

BofA Securities Inc. and Goldman Sachs Bank USA are leading the deal that will be used to refinance existing U.S. and euro term loans.

AlixPartners is a New York-based performance improvement, corporate turnaround and financial advisory services firm.

Howden Group guidance

Howden Group, formerly known as Hyperion Insurance Group Ltd., launched on its morning call its $1,265,138,359 covenant-lite first-lien term loan B due Nov. 12, 2027 at talk of Libor plus 325 bps with a 0.75% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months, a market source said.

Commitments are due at noon ET on Jan. 27, the source added.

Morgan Stanley Senior Funding Inc., J.P. Morgan Securities LLC, RBC Capital Markets, Barclays, HSBC Securities (USA) Inc. and Lloyds are leading the deal that will be used to reprice and extend an existing term loan B.

Howden Group is a London-based insurance intermediary group.

Endurance holds call

Endurance emerged in the morning with plans to hold a lender call at 3 p.m. ET to launch a $1.83 billion seven-year funded term loan (B2/B) and a $465 million delayed-draw term loan (B) available until July 7, both talked at Libor plus 400 bps with a 0.75% Libor floor and an original issue discount of 99 to 99.5, a market source remarked.

The debt has 101 soft call protection for six months.

Ticking fees on the delayed-draw term loan are half the spread from days 46 to 74 and the full spread thereafter, the source continued.

Commitments are due at 5 p.m. ET on Jan. 28, the source added.

Endurance being acquired

Endurance will use the bank debt and equity to fund its buyout by Clearlake Capital Group LP for $9.50 per share in cash and merger with Web.com. The Clearlake transaction is valued at about $3 billion, including outstanding debt.

J.P. Morgan Securities LLC, BofA Securities Inc., Deutsche Bank Securities Inc., UBS Investment Bank, BNP Paribas Securities Corp., Mizuho, Barclays, CPPIB, CBAM, RBC Capital Markets, Golub, Ares, Credit Suisse Securities (USA) LLC, Antares and Jefferies LLC are leading the debt.

Closing is expected in the first quarter of 2021, subject to approval by Endurance shareholders and customary conditions.

Endurance is a Burlington, Mass.-based provider of cloud-based platform solutions designed to help small and medium-size businesses succeed online.

Calpine repricing

Calpine launched in the morning without a lender call a $936 million senior secured term loan B-9 (Ba2/BB+) due April 2026 talked at Libor plus 200 bps with a 0% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

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

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to reprice an existing term loan B-9 due April 2026 down from Libor plus 225 bps with a 0% Libor floor.

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

Resolute proposed terms

Resolute Investment Managers held its call in the afternoon, launching a fungible $40 million add-on first-lien term loan with original issue discount talk of 99.75, a market source remarked.

Like the existing roughly $305 million first-lien term loan, the add-on term loan is priced at Libor plus 375 bps with a 1% Libor floor.

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

RBC Capital Markets and BMO Capital Markets are leading the deal that will be used with cash from the balance sheet to fund a shareholder distribution.

Resolute Investment, a Kelso & Co. portfolio company, is an Irving, Tex.-based diversified asset management platform that partners with investment managers on both an affiliated and unaffiliated basis.

Precisely on deck

Precisely, formerly known as Syncsort Inc., set a lender call for 1 p.m. ET on Thursday to launch a $1,303,667,500 first-lien term loan due August 2024, a market source said.

Jefferies LLC is the left lead on the deal that will be used to reprice an existing $747,787,500 first-lien term loan and an existing $605,880,000 incremental first-lien term loan.

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

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

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