Bakelite, Athletico, symplr, Dessert break; Prince, Scientific, White Cap, Conterra revised

By Sara Rosenberg

New York, Feb. 2 – Bakelite Synthetics finalized pricing on its first-lien term loan at the low end of guidance, added a leverage-based step-down and tightened the original issue discount, and Athletico Physical Therapy firmed the spread and issue price on its term loan B at the tight side of talk, and then these deals broke for trading on Wednesday.

Other deals to make their way into the secondary market during the session included symplr Software Inc. and Dessert Holdings.

In more happenings, Prince International Corp. (PMHC II Inc.) increased the size of its first-lien term loan and cancelled plans for a secured notes offering, and Scientific Games Lottery modified price talk on its U.S. and euro term loans, and updated the original issue discount on the euro tranche.

Also, White Cap Supply Holdings LLC raised the spread on its term loan B, and Conterra Ultra Broadband revised the issue price on its incremental term loan B.

Furthermore, Del Monte and BCP Renaissance Parent LLC released price talk with launch, and Leaf Home (LHS Borrower LLC) and Garda World Security Corp. emerged with new deal plans.

Bakelite modified

Bakelite Synthetics firmed pricing on its $485 million seven-year first-lien term loan (B1/BB-/BB+) at SOFR+CSA plus 400 basis points, the low end of the SOFR+CSA plus 400 bps to 425 bps talk, added a 25 bps step-down at 0.5x inside closing date first-lien net leverage and changed the original issue discount to 99.5 from 99, according to a market source.

The term loan still has a 0.5% floor, CSA of 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate, 101 soft call protection for six months, and ticking fees of half the margin from days 46 to 90 and the full margin thereafter.

Goldman Sachs Bank USA, Deutsche Bank Securities Inc., UBS Investment Bank, Macquarie Capital (USA) Inc. and Jefferies LLC are leading the deal

Bakelite starts trading

Recommitments for Bakelite’s term loan were due at 11 a.m. ET on Wednesday and the debt emerged in the secondary market in the afternoon, with levels quoted at par bid, par ½ offered, a trader added.

Proceeds will be used to support the acquisition of the chemicals unit of Georgia-Pacific, refinance existing debt at Bakelite and pay related fees and expenses.

Black Diamond and Investindustrial are the sponsors.

Bakelite is a Louisville, Ky.-based producer of phenolic specialty resins and engineered thermoset molding compounds. Georgia-Pacific Chemicals is a producer of formaldehyde-based thermosetting resins and formaldehyde solutions.

Athletico updated, frees

Athletico Physical Therapy set pricing on its $875 million seven-year term loan B (B) at SOFR+CSA plus 425 bps, the low end of the SOFR+CSA plus 425 bps to 450 bps talk, and finalized the original issue discount at 99.5, the tight end of the 99 to 99.5 talk, a market source remarked.

The term loan still has a 0.5% floor, CSA of 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate, and 101 soft call protection for six months.

The term loan broke for trading in the afternoon, with levels quoted at 99¾ bid, par ¼ offered, a trader added.

BofA Securities Inc. and BMO Capital Markets are leading the deal that will be used with equity to fund the acquisition of Pivot Health Solutions from PennantPark, to refinance debt and to add cash to the balance sheet.

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

Athletico is an Oak Brook, Ill.-based provider of orthopedic rehabilitation services. Pivot Health is a provider of physical therapy, occupational health and onsite corporate health services.

symplr hits secondary

symplr Software’s fungible $300 million incremental covenant-lite first-lien term loan due December 2027 began trading, with levels quoted at par bid, par ½ offered, according to a market source.

Pricing on the incremental first-lien term loan is SOFR+10 bps CSA plus 450 bps with a 0.75% floor and it was sold at an original issue discount of 99.75.

During syndication, the incremental first-lien term loan was upsized from $250 million as a privately placed second-lien term loan was downsized to $40 million from $90 million.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to fund the acquisition of Midas Health Analytics Solutions from Conduent Inc.

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

With this transaction, pricing on the company’s existing first-lien term loan will transition to SOFR+10 bps CSA plus 450 bps with a 0.75% floor from Libor plus 450 bps with a 0.75% Libor floor.

symplr is a Houston-based provider of health care governance, risk and compliance software solutions. Midas is a provider of clinical and analytics transformation software solutions.

Dessert breaks

Dessert Holdings’ bank debt also broke for trading, with the fungible $455 million incremental covenant-lite first-lien term loan quoted at 99¾ bid, par ¼ offered and the fungible $110 million incremental covenant-lite second-lien term loan quoted at 98½ bid, 99½ offered, a trader remarked.

Pricing on the incremental first-lien term loan is Libor plus 400 bps with a 0.75% Libor floor, in line with the existing term loan, and the new debt was sold at an original issue discount of 99.5. The incremental and existing first-lien term loans are getting 101 soft call protection for six months.

The incremental second-lien term loan is priced at Libor plus 725 bps with a 0.75% Libor floor, which matches existing pricing, and the new debt was issued at a discount of 98.27.

The loans include hardwired fallback language, with a CSA of 11.5 bps for one-month SOFR, 26.2 bps for three months and 42.8 bps for six months.

Dessert lead banks

Antares Capital, Barclays, BMO Capital Markets, Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., KKR Capital Markets, MUFG, Prospect Capital, RBC Capital Markets, SMBC and Stifel are leading Dessert Holdings’ term loans.

During syndication, the incremental first-lien term loan was increased from $430 million and the discount firmed at the tight end of the 99.25 to 99.5 talk, and the incremental second-lien term loan was decreased from $135 million and the discount finalized at the wide end of the 98.27 to 98.5 talk.

Proceeds will be used with incremental equity from Bain Capital to finance the acquisition of Steven Charles that closed last year.

Dessert Holdings is a St. Paul, Minn.-based desserts manufacturer.

Prince upsizes

Back in the primary market, Prince International lifted its seven-year covenant-lite first-lien term loan to $2.445 billion from $1.945 billion and dropped plans for a $500 million senior secured notes offering, according to a market source.

As before, the term loan is talked at SOFR+CSA plus 425 bps to 450 bps with a 0.5% floor, an original issue discount of 99.5, CSA of 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate, and 101 soft call protection for six months.

The company’s now $2.77 billion of credit facilities (B3/B-) also include a $325 million revolver.

Recommitments were due at 5 p.m. ET on Wednesday, the source added.

Credit Suisse Securities (USA) LLC, Barclays, Goldman Sachs Bank USA, Jefferies LLC, KeyBanc Capital Markets, Deutsche Bank Securities Inc., HSBC Securities (USA) Inc. and BofA Securities Inc. are leading the deal.

Prince buying Ferro

Prince will use the new credit facilities, along with $756 million in unsecured notes and $200 million of equity, to fund the acquisition of Ferro Corp. for $22.00 per share in cash in a transaction valued at about $2.1 billion, including the assumption of debt, net of cash, and to refinance existing debt.

Upon closing, Prince, a portfolio company of American Securities LLC, Ferro and Chromaflo Technologies, another American Securities portfolio company, will combine into one company.

Closing is expected this quarter, subject to the approval of Ferro shareholders and the satisfaction of customary conditions, including applicable regulatory approvals.

Prince is a Houston-based developer, manufacturer and marketer of performance-critical specialty products for niche applications in the construction, electronics, consumer products, agriculture, automotive, oil & gas, industrial and other end markets. Ferro is a Mayfield Heights, Ohio-based supplier of technology-based functional coatings and color solutions. Chromaflo is an Ashtabula, Ohio-based provider of colorant technology solutions.

Scientific Games tweaked

Scientific Games Lottery revised price talk on its $1.77 billion seven-year covenant-lite term loan B to SOFR plus 350 bps to 375 bps from SOFR plus 375 bps to 400 bps, and left the 0.5% floor and original issue discount of 99.5 unchanged, a market source said.

In addition, price talk on the $750 million equivalent euro seven-year covenant-lite term loan B was updated to Euribor plus 400 bps to 425 bps from Euribor plus 425 bps, and the discount was set at 99.5, the tight end of the 99 to 99.5 talk, the source continued. This tranche still has a 0% floor.

Both term loans (B2/B+/BB-) continued to include 101 soft call protection for six months and ticking fees of half the margin from days 61 to 120 and the full margin thereafter.

Commitments remain due at 10 a.m. ET on Thursday, the source added.

Scientific being acquired

Scientific Games Lottery will use the new term loans with equity to fund its acquisition by Brookfield Business Partners LP for about $5.8 billion.

Deutsche Bank Securities Inc., Barclays, BNP Paribas Securities Corp., Credit Agricole, Macquarie Capital, RBC Capital Markets, BMO Capital Markets, Citigroup Global Markets Inc., Goldman Sachs, HSBC, Morgan Stanley Senior Funding Inc., MUFG, Societe Generale and Wells Fargo Securities LLC are leading the debt.

Closing is expected in the second quarter, subject to customary conditions, including regulatory approvals.

Scientific Games Lottery is a lottery services and technology company.

White Cap flexes

White Cap Supply widened pricing on its $2.306 billion covenant-lite term loan B (B2/B) due October 2027 to SOFR plus 375 bps from SOFR plus 350 bps, according to a market source.

The 0.5% floor, par issue price and 101 soft call protection for six months on the term loan were unchanged.

Recommitments are due at 10 a.m. ET on Thursday, the source added.

Deutsche Bank Securities Inc., RBC Capital Markets, Regions Bank, Wells Fargo Securities LLC, US Bank, BNP Paribas Securities Corp., Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA and Mizuho are leading the deal that will be used to reprice an existing term loan B from Libor plus 400 bps with a 0.5% Libor floor.

White Cap is a distributor of a diverse mix of concrete accessories and specialty construction and safety products.

Conterra revised

Conterra Ultra Broadband moved the original issue discount on its fungible $55 million incremental term loan B to 99.5 from 99.25, a market source remarked.

Pricing on the incremental term loan remained at SOFR+CSA plus 475 basis points with a 1% floor, and the debt still has 101 soft call protection until June.

CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

Recommitments are due at the end of the day on Thursday, the source added.

TD Securities (USA) LLC is leading the deal that will be used to repay revolver borrowings, add cash to the balance sheet to fund growth and pay related fees and expenses.

With this transaction, pricing on the company’s existing term loan is being switched to SOFR+CSA plus 475 bps with a 1% floor from Libor plus 475 bps with a 1% Libor floor.

Conterra is a provider of bandwidth infrastructure services.

Del Monte guidance

Del Monte held its lender call on Wednesday morning and announced talk on its $525 million seven-year term loan B (B3/B) at SOFR+CSA plus 425 bps to 450 bps with a 0.5% floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

The term loan has ticking fees of half the margin for days 31 to 60 and the full margin thereafter.

Commitments are due on Feb. 16, the source added.

Goldman Sachs Bank USA, JPMorgan Chase Bank, Wells Fargo Securities LLC, BMO Capital Markets, MUFG and Capital One are leading the deal that will be used to refinance the company’s existing capital structure.

Del Monte is a producer, distributor and marketer of plant-based food products.

BCP OID talk

BCP Renaissance launched on its morning call its roughly $1.083 billion term loan B-1 due Oct. 31, 2026 with original issue discount talk of 99.5, a market source said.

As previously reported, price talk on the term loan is SOFR plus 350 bps with a 1% floor, and the loan has 101 soft call protection for six months.

Jefferies LLC and Morgan Stanley Senior Funding Inc. are leading the deal.

Of the total term loan amount, about $57 million is a fungible incremental term loan B-1 that will be used to refinance existing debt and about $1.026 billion is an amendment and maturity extension of the existing term loan B-1.

Consents and commitments are due at noon ET on Feb. 11, the source added.

BCP Renaissance is the owner of a 32.435% interest in the Rover Pipeline, which transports natural gas from the Marcellus and Utica Shale production areas.

Leaf Home on deck

Leaf Home set a lender call for 11 a.m. ET on Thursday to launch a $1.41 billion seven-year term loan B (B1/B) talked at SOFR+CSA plus 450 bps to 475 bps with a 25 bps step-down based on net leverage and a 25 bps step-down upon an initial public offering, a 0.5% floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

Commitments are due at 5 p.m. ET on Feb. 15, the source added.

JPMorgan Chase Bank, Barclays, BofA Securities Inc., Goldman Sachs Bank USA, KeyBanc Capital Markets, Truist, Huntington, Golub Capital and Citizens are leading the deal that will be used to refinance an existing $1.358 billion term loan B and to pay associated fees and expenses.

Leaf Home is a Hudson, Ohio-based technology-enabled direct-to-consumer provider of home solutions.

Garda readies loan

Garda World Security will hold a lender call at 11:30 a.m.ET on Thursday to launch a $700 million seven-year incremental term loan (B/BB+) talked at SOFR plus 400 bps with a 0% 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 Feb. 10, the source added.

JPMorgan Chase Bank is leading the deal that will be used to fund the acquisition of Tidel, a Carrollton, Tex.-based provider of cash automation technology, from Littlejohn & Co. LLC.

Tidel is being purchased by Sesami Cash Management Technologies Corp., a tech-enabled cash ecosystem solution integrator that will operate as an independent entity of Garda.

Garda is a Montreal-based provider of cash logistics and security solutions.

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