BellRing, Sophos, Schweitzer, BrightSpring, SCP break; Peraton, Infinite and more revised

By Sara Rosenberg

New York, Feb. 23 – BellRing Brands LLC set pricing on its first-lien term loan at the low end of talk and Sophos modified the issue price on its add-on term loan B, and then these deals freed to trade during Tuesday’s market hours.

Also, Schweitzer-Mauduit International Inc. firmed the spread and original issue discount on its term loan at the tight side of guidance before breaking for trading, and deals from BrightSpring Health Services (Phoenix Guarantor Inc.) and SCP Health (Onex TSG Intermediate Corp.) hit the secondary market as well.

In more happenings, Peraton trimmed the spread on term loan and changed the issue price, and Infinite Electronics (Infinite Bidco LLC) cut the spread on its second-lien term loan, and tightened the Libor floor and original issue discount on both its first-and second-lien term loans.

Furthermore, Petco Health and Wellness Co. Inc. increased the size of its first-lien term loan B, Hillman Group Inc. reduced pricing on its term loans and revised the original issue discount, and Applied Systems Inc. upsized its incremental first-lien term loan, lowered the Libor floor and added repricings of its existing first-and second-lien term loans.

Additionally, Novolex Holdings LLC set the original issue discount on its first-lien term loan (B2/B) at the tight end of guidance, DiversiTech Holdings Inc. upsized its add-on first-lien term loan and revised the original issue discount, and Storable Inc. (EQT Box Merger Sub Inc.) accelerated the commitment deadline for its first-lien term loan.

And, Packers Holdings LLC (PSSI), Tronox Finance LLC and Global Client Solutions announced price talk with launch, and Liaison (LI Group Holdings Inc.), Leslie’s Poolmart Inc., Liquid Tech Solutions LLC, Corel Corp. and DuPage Medical Group (Midwest Physician Administrative Services LLC) surfaced with new deal plans.

BellRing updated, trades

BellRing Brands finalized pricing on its $636.2 million first-lien term loan (B2/B+) due October 2024 at Libor plus 400 basis points, the low end of the Libor plus 400 bps to 425 bps talk, according to a market source.

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

Commitments continued to be due at noon ET on Tuesday and the term loan freed up in the afternoon, with levels quoted at par ½ bid, 101 offered, another source added.

Credit Suisse Securities (USA) LLC, BofA Securities Inc., Morgan Stanley Senior Funding Inc., Barclays, Citigroup Global Markets Inc., Goldman Sachs Bank USA, J.P. Morgan Securities LLC, BMO Capital Markets, Rabobank, Nomura, Truist, UBS Investment Bank and Wells Fargo Securities LLC are leading the deal that will be used to reprice an existing term loan down from Libor plus 500 bps with a 1% Libor floor.

BellRing is a St. Louis-based manufacturer of active nutrition brands.

Sophos tweaked, frees up

Sophos tightened the original issue discount on its fungible $380 million add-on term loan B (B3/B-/B) due March 2027 to 99.5 from 99, a market source said.

Pricing on the add-on term loan is Libor plus 350 bps with a 0% Libor floor, in line with existing term loan pricing, and the debt is getting 101 soft call protection for six months.

Recommitments were due at 10:30 a.m. ET on Tuesday and the add-on term loan broke for trading later in the day, with levels quoted at 99½ bid, par offered, another source added.

Goldman Sachs Bank USA, BofA Securities Inc., Barclays, Credit Suisse Securities (USA) LLC and HSBC Securities (USA) Inc. are leading the deal that will be used to refinance the company’s existing second-lien term loan due 2028.

Thoma Bravo is the sponsor.

Sophos is an Oxford, U.K.-based provider of next-generation cybersecurity.

Schweitzer finalized, breaks

Schweitzer-Mauduit set pricing on its $350 million seven-year senior secured term loan (Ba2/BB-) at Libor plus 375 bps, the low end of the Libor plus 375 bps to 400 bps talk, and firmed the original issue discount at 99, the tight end of the 98.5 to 99 talk, according to a market source.

The term loan still has a 0.75% Libor floor and 101 soft call protection for six months.

During the session, the term loan freed to trade, with levels quoted at 99½ bid, par offered, another source added.

J.P. Morgan Securities LLC, BofA Securities Inc., Barclays and Truist Securities Inc. are leading the deal that will be used to help fund the acquisition of Scapa Group plc, a UK-based innovation, design and manufacturing solutions provider for healthcare and industrial markets, for 210 pence in cash per scheme share. The transaction implies an equity value of about $551.9 million.

Closing is expected in the second quarter.

At close, net debt to EBITDA is estimated to be between 4x and 4.5x.

Schweitzer-Mauduit is an Alpharetta, Ga.-based performance materials company.

BrightSpring hits secondary

BrightSpring Health Services’ fungible $675 million incremental first-lien term loan (B1/B) due March 5, 2026 and repriced $550 million first-lien term loan (B1/B) due March 5, 2026 began trading too, with levels quoted at par bid, par ½ offered, a market source said.

Pricing on the term loan debt is Libor plus 350 bps with a 0% Libor floor and it was issued at par. The debt has 101 soft call protection for six months starting on April 8.

During syndication, the incremental term loan was upsized from $600 million, pricing was reduced from Libor plus 375 bps, the Libor floor was changed from 0.5%, the issue price was set at the tight end of the 99.75 to par talk and the call protection was revised from a 101 soft call through April 7. Also, the repricing of the existing term loan down from Libor plus 375 bps with a 0.5% Libor floor was added to the transaction.

Proceeds from the incremental term loan will be used to fund an acquisition.

BrightSpring effective date

BrightSpring’s repriced term loan will continue to have pricing of Libor plus 375 bps with a 0.5% Libor floor until April 8. If the acquisition closes prior to April 8, the fungible incremental term loan will be priced at Libor plus 375 bps with a 0.5% Libor floor until April 8. On April 8, the spread and floor on the entire $1.225 billion tranche will step-down to the repriced levels of Libor plus 350 bps with a 0% Libor floor.

Jefferies LLC, KKR Capital Markets LLC, Morgan Stanley Senior Funding Inc., Credit Suisse Securities (USA) LLC, BMO Capital Markets, Deutsche Bank Securities Inc., BofA Securities Inc., HSBC Securities (USA) Inc., Credit Agricole and Natixis are leading the deal.

BrightSpring Health is a Louisville, Ky.-based provider of home and community-based health services.

SCP tops OID

SCP Health’s $530 million seven-year covenant-lite first-lien term loan broke as well, with levels quoted at 98½ bid, 99½ offered, according to a market source.

Pricing on the term loan is Libor plus 475 bps with a 0.75% Libor floor and it was sold at an original issue discount of 98. The debt has 101 soft call protection for one year.

During syndication, pricing on the term loan was increased from Libor plus 425 bps, the discount widened from 99.5 and the call protection was extended from six months.

The company’s $619 million of credit facilities (B2/B) also include an $89 million revolver.

Credit Suisse Securities (USA) LLC, Barclays, BMO Capital Markets, Deutsche Bank Securities Inc., Jefferies LLC and Truist are leading the deal that will be used with balance sheet cash to refinance existing first- and second-lien term loans.

SCP Health is a Lafayette, La.-based provider of outsourced emergency medicine and hospital medicine services.

Peraton tightens

Back in the primary market, Peraton flexed pricing on its $5.92 billion seven-year term loan to Libor plus 375 bps 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.

The 0.75% Libor floor and 101 soft call protection for six months were unchanged.

Previously in syndication, the term loan was upsized from $2.145 billion through the addition of a $3.775 billion delayed-draw tranche.

J.P. Morgan Securities LLC, KKR Capital Markets, Barclays, Goldman Sachs Bank USA, UBS Investment Bank, Macquarie Capital (USA) Inc. and RBC Capital Markets are leading the deal that will be used to refinance existing debt, help fund the recently completed acquisition of Northrop Grumman Corp.’s IT services business for $3.4 billion in cash, and, due to the recent upsizing, to help fund the acquisition of Perspecta Inc. for $29.35 per share in cash, or about $7.1 billion.

Closing on the Perspecta transaction is expected in the first half of this year, subject to approval by Perspecta stockholders as well as the receipt of regulatory approvals and other customary conditions.

Peraton, a Veritas Capital portfolio company, is a provider of highly differentiated national security solutions and technologies. Perspecta is a Chantilly, Va.-based U.S. government services provider.

Infinite changes emerge

Infinite Electronics cut pricing on its $240 million eight-year second-lien term loan (Caa2/CCC) to Libor plus 700 bps from talk in the range of Libor plus 725 bps to 750 bps, trimmed the Libor floor to 0.5% from 0.75% Libor floor and adjusted the original issue discount to 99.5 from 99, a market source remarked.

Additionally, the company revised the Libor floor on its $640 million seven-year first-lien term loan (B2/B-) to 0.5% from 0.75% Libor floor and changed the original issue discount to 99.75 from 99.5, the source continued.

Pricing on the first-lien term loan was unchanged at Libor plus 375 bps with two leveraged based step-downs and an additional step-down following an initial public offering.

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

Recommitments were due at 4 p.m. ET on Tuesday, the source added.

Infinite lead banks

Jefferies LLC, Antares Capital, RBC Capital Markets, Wells Fargo Securities LLC, Golub Capital and TD Securities (USA) LLC are leading Infinite Electronics’ bank debt.

Along with the funded term loans, the $1.055 billion of senior secured credit facilities include a $100 million five-year revolver (B2/B-), a $55 million privately placed first-lien delayed-draw term loan (B2/B-) and a $20 million privately placed second-lien delayed-draw term loan (Caa2/CCC).

The new debt will be used to help fund the buyout of the company by funds affiliated with Warburg Pincus and to pay related fees and expenses.

Infinite Electronics is an Irvine, Calif.-based supplier of electronic components serving the needs of engineers.

Petco upsizes

Petco lifted its seven-year senior secured covenant-lite first-lien term loan B to $1.7 billion from $1.2 billion and eliminated plans to sell other secured debt, according to a market source.

Talk on the term loan is Libor plus 325 bps to 350 bps with a 0.75% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

Commitments continue to be due at noon ET on Wednesday, the source added.

Citigroup Global Markets Inc., Goldman Sachs Bank USA, Wells Fargo Securities LLC, BofA Securities Inc., Credit Suisse Securities (USA) LLC and UBS Investment Bank are leading the deal that will be used with an up to $500 million ABL facility to refinance the company’s existing capital structure.

Hillman flexes

Hillman Group trimmed pricing on its $835 million seven-year first-lien term loan B-1 (B1/B+/BB), $150 million seven-year first-lien term loan B-2 (B1/B+/BB) and $200 million first-lien delayed-draw term loan (B1/B+/BB) with availability for 24 months to Libor plus 275 bps from talk in the range of Libor plus 300 bps to 325 bps and revised the original issue discount on the loans to 99.75 from 99.5, a market source remarked.

The term loans still have one 25 bps step-down at 0.5x deleveraging, a 0.5% Libor floor, 101 soft call protection for six months, and ticking fees paid from the time of allocations of half the margin for days 46 to 90 and the full margin thereafter. Delayed-draw term loan ticking fees paid from closing remained at half the margin from days 61 to 120 and the full margin thereafter.

Recommitments are due at noon ET on Wednesday, the source added.

Hillman getting revolver

In addition to the term loans, Hillman’s $1.435 billion of credit facilities include a $250 million five-year ABL revolver.

Jefferies LLC and Barclays are leading the deal that is being done in conjunction with the company’s merger with Landcadia Holdings III Inc., a publicly traded special purpose acquisition company.

The transaction implies an enterprise valuation for Hillman of $2.642 billion.

Closing is expected in the second quarter, subject to approval of the stockholders of Landcadia III and of Hillman and other customary conditions.

Hillman is a Cincinnati-based distributor of hardware and home improvement products, personal protective equipment and robotic kiosk technologies.

Applied Systems reworked

Applied Systems raised its fungible incremental covenant-lite first-lien term loan due September 2024 to $470 million from $420 million and cut the Libor floor to 0.5% from 1%, according to a market source.

Pricing on the incremental first-lien term loan is still Libor plus 300 bps with a step-up to Libor plus 325 bps at more than 4.75x first-lien net leverage, in line with existing first-lien term loan pricing. Upon delivering Dec. 31, 2020 financials, the spread will be subject to the grid.

The incremental term loan continues to be offered at par.

The company also announced that it is now seeking a repricing of its existing $1.35 billion covenant-lite first-lien term loan due September 2024 to lower the Libor floor to 0.5% from 1%, and a repricing of its existing $615 million covenant-lite second-lien term loan due September 2025 that is talked at Libor plus 550 bps to 575 bps with a 0.75% Libor floor, versus current pricing of Libor plus 700 bps with a 1% Libor floor, the source said.

The repricings are offered at par, all of the first-lien term loan debt is getting 101 soft call protection for six months and the repriced second-lien term loan will have 101 hard call protection for one year.

Applied buying EZLynx

Applied Systems will use its incremental first-lien term loan to fund the acquisition of EZLynx, raise cash for general corporate purposes and pay fees and expenses.

Commitments continue to be due at noon ET on March 2, the source added.

Nomura Securities is leading the deal.

Applied Systems is a University Park, Ill.-based cloud software provider to the property & casualty and benefits insurance industry. EZLynx is a Lewisville, Tex.-based provider of insurance software.

Novolex firms OID

Novolex finalized the original issue discount on its $1.276 billion seven-year first-lien term loan (B2/B) at 99.5, the tight end of the 99 to 99.5 talk, according to a market source.

The term loan is still priced at Libor plus 350 bps with a 0.5% Libor floor, and has 101 soft call protection for six months.

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

Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc., Goldman Sachs Bank USA, Citigroup Global Markets Inc., Jefferies LLC, Fifth Third, ING, Citizens and Carlyle are leading the deal that will be used to refinance an existing term loan due 2023.

Novolex is a Hartsville, S.C.-based manufacturer of packaging products for consumer-focused end markets.

DiversiTech revised

DiversiTech increased its fungible add-on first-lien term loan to $165 million from $125 million and changed the original issue discount to 99.5 from 99, a market source remarked.

As before, the add-on term loan and extension of the company’s existing $362 million term loan are priced at Libor plus 325 bps with a 1% Libor floor, and the debt is getting 101 soft call protection for six months.

Commitments and consents were due at 1 p.m. ET on Tuesday, pushed out from noon ET on Tuesday, the source added.

RBC Capital Markets is leading the deal.

The add-on term loan will be used to fund two acquisitions, with the extra proceeds raised eliminating the need to use just under $40 million of cash from the balance sheet to fund the acquisitions. The extension will push out the maturity on the existing term loan by six months and increase existing pricing from Libor plus 300 bps.

DiversiTech is an Atlanta-based manufacturer of components and products related to the heating, ventilating, air conditioning and refrigeration industry.

Storable accelerated

Storable moved up the commitment deadline for its $425 million seven-year senior secured covenant-lite first-lien term loan (B2/B) to noon ET on Friday from 5 p.m. ET on March 4, a market source said.

Talk on the term loan is Libor plus 375 bps with a 0.75% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC, Antares Capital and Mizuho are leading the deal that will be used to help fund the buyout of the company by EQT Private Equity.

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

Storable is an Austin, Tex.-based provider of software, payments, insurance and marketplace solutions to the self-storage industry.

Packers sets guidance

Packers Holdings held its call at 10:30 a.m. ET on Tuesday and, shortly before the call began, talk on its $1.055 billion seven-year first-lien term loan was announced at Libor plus 325 bps with a 0.75% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, according to a market source.

The company’s $1.109 billion of credit facilities (B-) also include a $54 million five-year revolver.

Commitments are due at 4 p.m. ET on March 2, the source added.

Jefferies LLC and Blackstone are leading the deal that will be used to refinance an existing revolver and term loan.

Packers Holdings is a Kieler, Wis.-based provider of mission critical cleaning, sanitation and compliance services to the food processing industry.

Tronox talk surfaces

A little before its 2 p.m. call kicked off, Tronox came out with price talk of Libor plus 275 bps with a 0% Libor floor and an original issue discount of 99.5 to 99.75 on its $1.3 billion seven-year term loan B, a market source remarked.

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

The company’s $1.65 billion of credit facilities (Ba3/BB-) also include a $350 million five-year revolver.

Commitments are due at noon ET March 2.

HSBC Securities (USA) Inc., Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., BofA Securities Inc., Barclays, BNP Paribas Securities Corp., Deutsche Bank Securities Inc. and Goldman Sachs Bank USA are leading the deal that will be used with cash on hand and other unsecured debt, to refinance existing ABL facility and term loan B borrowings, to refinance senior notes due 2026 and to pay fees and expenses.

Tronox is a Stamford, Conn.-based producer of titanium dioxide and inorganic chemicals.

Global Client launches

Global Client Solutions launched on its call its $260 million five-year first-lien term loan B at talk of Libor plus 600 bps with a 50 bps step-up at 0.5x outside closing date leverage and a 50 bps step-down at 0.5x inside closing date leverage, a 1% Libor floor and an original issue discount of 98 to 98.5, according to a market source.

The term loan has hard call protection of 102 in year one and 101 in year two, the source said.

The company’s $270 million of credit facilities also include a $10 million revolver.

Commitments are due on March 5, the source added.

Goldman Sachs Bank USA is the left lead on the deal that will be used to refinance existing debt and fund a distribution to shareholders.

Global Client Solutions is a specialty payments platform and manager of incoming consumer deposits and outgoing creditor and DSP payments in support of debt settlement plans.

Garrett deadline

Garrett Motion Inc. is asking for commitments for its $1.25 billion equivalent U.S. and euro seven-year term loan B by noon ET on March 4, the company disclosed in an 8-K filed with the Securities and Exchange Commission.

Price talk on the U.S. portion of the term loan is Libor plus 300 bps to 325 bps with a 0.5% Libor floor and an original issue discount of 99.5, and talk on the euro portion of the term loan is Euribor plus 325 bps to 350 bps with a 0% floor and a discount of 99.5.

The term loan debt has a ticking fee of half the spread from days 61 to 90, the full spread from days 91 to 120 and the full spread plus the floor thereafter.

The company’s $1.55 billion of credit facilities (Ba2) also include a $300 million five-year revolver.

J.P. Morgan Securities LLC is leading the deal that will be used for exit financing.

The company expects to emerge from bankruptcy in the second quarter.

Pro forma for the transaction, net leverage will be 1.8x.

Garrett Motion is a Rolle, Switzerland-based provider of passenger vehicle, commercial vehicle, aftermarket replacement and performance enhancement solutions.

Liaison joins calendar

Liaison set a lender call for 11:30 a.m. ET on Wednesday to launch a $300 million seven-year covenant-lite first-lien term loan (B2/B), according to a market source.

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

Commitments are due at 5 p.m. ET on March 3.

Credit Suisse Securities (USA) LLC and UBS Investment Bank are leading the deal that will be used to refinance an existing term loan and for general corporate purposes.

Liaison is an admission management software provider for higher education.

Leslie’s readies loan

Leslie’s Poolmart scheduled a lender call for 10 a.m. ET on Wednesday to launch an $810 million seven-year covenant-lite term loan B, a market source said.

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

Nomura is the left lead on the deal that will be used to refinance an existing term loan and pay related fees and expenses.

Leslie’s Poolmart is a Phoenix-based retailer of swimming pool and spa care supplies and related products.

Liquid Tech on deck

Liquid Tech Solutions will hold a lender meeting at 2 p.m. ET on Thursday to launch a $300 million covenant-lite first-lien term loan, according to a market source.

Citizens, Credit Suisse Securities (USA) LLC and BNP Paribas Securities Corp. are leading the deal that will be used to refinance existing debt.

Lindsay Goldberg is the sponsor.

Liquid Tech is a tech-enabled provider of route-based, on-site mobile refueling solutions.

Corel coming soon

Corel Corp. scheduled a lender call for 11 a.m. ET on Wednesday to launch a fungible $75 million add-on first-lien term loan, a market source remarked.

Pricing on the first-lien term loan is Libor plus 500 bps with a 0% Libor floor. Original issue discount talk on the add-on term loan is not yet available, the source said.

KKR Capital Markets, Citigroup Global Markets Inc. and Barclays are leading the deal that will be used to repay some second-lien term loan borrowings.

Corel is an Ottawa-based software company.

DuPage plans call

DuPage Medical Group will hold a lender call at 10 a.m. ET on Wednesday to launch $750 million of credit facilities, according to a market source.

The facilities consist of a $100 million revolver and a $650 million seven-year covenant-lite first-lien term loan, the source said.

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

Commitments are due at noon ET on March 5, the source added.

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used with balance sheet cash to refinance first-and second-lien term loans and pay a distribution.

DuPage is a Downers Grove, Ill.-based multi-specialty physician group.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.