Constant Contact, EG free up; Endo, U.S. Farathane updated; Win Waste, Triton accelerated

By Sara Rosenberg

New York, March 11 – Constant Contact Inc. set the spread on its first-lien term loan at the high end of guidance and made revisions to documentation before breaking for trading on Thursday, and EG Group’s first-lien term loan B hit the secondary market as well.

In other news, Endo International plc reduced the size of its term loan B, increased the spread, firmed the issue price at the wide side of talk and extended the call protection, and U.S. Farathane LLC finalized pricing on its first-lien term loan B at the high end of guidance.

Also, Win Waste Innovations (Granite Acquisition Inc.) and Triton Water Holdings Inc. accelerated the commitment deadlines for their term loan transactions.

Furthermore, PS Logistics released price talk with launch and Wilsonart LLC joined the near-term primary calendar.

Constant Contact tweaked

Constant Contact firmed pricing on its $850 million seven-year covenant-lite first-lien term loan (B2/B/BB-) at Libor plus 400 basis points, the high end of the Libor plus 375 bps to 400 bps talk, according to a market source.

Also, changes were made to documentation, including to MFN, the accordion, asset sale, the Chewy protection and the J. Crew blocker, and quarterly lender calls are now required at all times.

As before, the term loan has a 0.75% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

Of the total term loan amount, $180 million is delayed-draw and has a ticking fee of half the spread from days 46 to 75 and the full spread thereafter.

Constant Contact breaks

On Thursday, Constant Contact’s term loan freed to trade, with levels quoted at 99¾ bid, par ¼ offered, another source added.

Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, BofA Securities Inc., Barclays, Jefferies LLC, UBS Investment Bank, BNP Paribas Securities Corp., CPPIB, KKR Capital Markets, Antares Capital and CBAM are leading the deal.

The term loan will be used to fund Clearlake Capital Group LP’s and Siris Capital Group LLC’s spin out of the company from Endurance International Group Holdings Inc. into a stand-alone enterprise.

Constant Contact is a Waltham, Mass.-based digital marketing company.

EG Group tops OID

EG Group’s $510 million first-lien term loan B due March 2026 also began trading during the session, with levels quoted at 99¼ bid, 99¾ offered, a market source said.

The first-lien term loan, which is being issued by EG America LLC, is priced at Libor plus 425 bps with a 0.5% Libor floor and was sold at an original issue discount of 99. The debt has 101 soft call protection for six months.

The company is also getting a €610 million second-lien term loan due April 2027 priced at Euribor plus 700 bps with a 0% floor and issued at a discount of 99. This tranche, which is being issued by EG Finco Ltd., has call protection of 102 in year one and 101 in year two.

During syndication, the first-lien term loan was upsized from $450 million and the spread finalized at the low end of the Libor plus 425 bps to 450 bps talk, and the second-lien term loan was upsized from €330 million, pricing firmed at the low end of the Euribor plus 700 bps to 725 bps talk and the discount was revised from 98.5.

EG Group leads

Barclays is the lead left bookrunner on EG Group’s first-lien term loan B and a joint global coordinator and bookrunner with JPMorgan and Rabobank. Other bookrunners include BofA Securities Inc., Deutsche Bank, ING, Lloyds, Morgan Stanley and SMBC.

Bookrunners on the second-lien term loan are Barclays, BofA Securities, Deutsche Bank, HSBC, Lloyds, Morgan Stanley and Rabobank.

The new debt will be used to help fund the acquisition of Asda Group Ltd.’s forecourts for an enterprise value of £750 million and 285 petrol station forecourts in Southern Germany from OMV Deutschland GmbH for €485 million, for general corporate purposes and, due to the recent second-lien term loan upsizing, to refinance in full an existing euro and U.S. second-lien term loan due April 2026.

EG Group is a Blackburn, U.K.-based convenience retail and fuel station company.

Endo reworked

Back in the primary market, Endo International trimmed its senior secured term loan B to $2 billion from $2.295 billion, revised price talk to a range of Libor plus 475 bps to 500 bps from Libor plus 425 bps and then firmed at Libor plus 500 bps later in the day, set the original issue discount at 99, the wide end of the 99 to 99.5 talk, and extended the 101 soft call protection to one year from six months, according to a market source.

The term loan still has a 0.75% Libor floor.

JPMorgan Chase Bank, RBC Capital Markets, Goldman Sachs Bank USA, BofA Securities Inc. and Barclays are leading the deal that will be used with $1.295 billion of bonds, upsized from $1 billion, to refinance an existing $3.3 billion senior secured term loan due 2024.

Endo is a Dublin, Ireland-based specialty pharmaceutical company.

U.S. Farathane updated

U.S. Farathane set pricing on its $308 million first-lien term loan B (B2/B) due December 2024 at Libor plus 425 bps, the high end of the Libor plus 400 bps to 425 bps talk, a market source said.

As before, the term loan has a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for one year.

BofA Securities Inc. is leading the deal that will be used to help refinance/extend an existing term loan due December 2021.

U.S. Farathane is an Auburn Hills, Mich.-based designer and manufacturer of highly engineered plastic fabricated products.

Win Waste accelerated

Win Waste Innovations moved up the commitment deadline for its $1 billion seven-year covenant-lite first-lien term loan to 5 p.m. ET on Tuesday from noon ET on March 19, a market source remarked.

Talk on the term loan is Libor plus 325 bps with a 0.5% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

The company’s $1.4 billion of credit facilities (B1/B+) also include a $400 million revolver.

Credit Suisse Securities (USA) LLC, JPMorgan Chase Bank, Mizuho, MUFG, RBC Capital Markets, Deutsche Bank Securities Inc. and Truist are leading the deal that will be used to recapitalize the legacy Wheelabrator business, to refinance Tunnel Hill Partners debt, for general corporate purposes and to pay fees and expenses.

Win Waste is a vertically-integrated waste services provider.

Triton moves deadline

Triton Water Holdings accelerated the commitment deadline for its $1.8 billion seven-year covenant-lite first-lien term loan B (B1/B) to noon ET on Tuesday from noon ET on March 18, a market source said.

Talk on the term loan is Libor plus 375 bps with a 25 bps step-down at 0.5x inside closing date first-lien net leverage and a 25 bps step-down upon the consummation of a qualifying initial public offering, a 0.5% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months.

The company’s $2.15 billion of senior secured credit facilities also include a $350 million ABL revolver.

Morgan Stanley Senior Funding Inc., BofA Securities Inc., Jefferies LLC, RBC Capital Markets, Mizuho and Credit Suisse Securities (USA) LLC are leading the deal that will be used to help fund the buyout of Triton (Nestle Waters North America) by One Rock Capital Partners LLC and Metropoulos & Co. from Nestle SA for $4.3 billion.

Closing is expected in the Spring, subject to customary conditions.

Triton is a Stamford, Conn., provider of bottled water.

PS proposed terms

PS Logistics held its call on Thursday, launching its $298.2 million first-lien term loan due March 2025 at talk of Libor plus 400 bps with a 25 bps step-down based on leverage, a 0.75% Libor floor and a par issue price, according to a market source.

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

Commitments are due on March 18.

UBS Investment Bank is leading the deal that will be used to reprice an existing term loan down from Libor plus 475 bps with a 25 bps step-down based on leverage and a 1% Libor floor.

PS Logistics is a flatbed transportation solutions provider.

ThoughtWorks talk

ThoughtWorks’ price talk emerged in the morning, with the $715 million seven-year covenant-lite first-lien term loan (B2/B+) being guided at Libor plus 325 bps to 350 bps with a 0.5% Libor floor and an original issue discount of 99.5, a market source said.

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

Commitments are due at noon ET on March 23.

Credit Suisse Securities (USA) LLC is the left lead on the deal, which launched with a call on Wednesday afternoon.

The loan will be used to refinance existing debt and fund a shareholder distribution.

ThoughtWorks is a Chicago-based pure play digital transformation services provider.

Wilsonart on deck

Wilsonart set a lender call for 9:30 a.m. ET on Friday to launch a $1.241 billion covenant-lite term loan E due December 2026, according to a market source.

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

Commitments are due at 5 p.m. ET on March 18, the source added.

Deutsche Bank Securities Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc., UBS Investment Bank, Goldman Sachs Bank USA, Barclays and SMBC are leading the deal that will be used to amend and extend an existing term loan D due December 2023.

Wilsonart is a Temple, Tex.-based engineered surfaces company.

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