Convergint, Trinseo, Kenan, SiteOne, Tamko, Galderma, Liquid Tech, Denali Water break

By Sara Rosenberg

New York, March 18 – Convergint (DG Investment Intermediate Holdings 2 Inc.) revised first-and second-lien term loan sizes and added a pricing step-down to the first-lien tranche, Trinseo SA lowered the spread on its term loan B, and Kenan Advantage Group Inc. carved out a small Canadian tranche from its term loan B, and then all of these deals broke for trading on Thursday.

Also, before freeing up, SiteOne Landscape Supply upsized its first-lien term loan B and reduced pricing, and Tamko Building Products Inc. tightened the original issue discount on its incremental term loan B.

Some other deals to make their way into the secondary market during the session included Galderma, Liquid Tech Solutions LLC and Denali Water Solutions LLC.

In other news, PODS LLC cut pricing on its first-lien term loan B, Wilsonart LLC increased the spread on its term loan E, added a step-down and adjusted the Libor floor, and MBCC Group trimmed pricing on its U.S. term loan B and tightened the original issue discount, and updated price talk on its euro term loan B.

Additionally, Thor Industries Inc. revised spread talk on its U.S. and euro term loans and set the issue price at the tight end of guidance, and Conga (Apttus Corp.) put the launch of its first-lien term loan on hold.

Furthermore, MedRisk, AIT Worldwide Logistics, Atlantic Power Corp. (Thermal Asset portfolio), Cornerstone OnDemand Inc. and Soliant released talk with launch.

Convergint reworked

Convergint upsized its seven-year covenant-lite first-lien term loan to $1.155 billion from $1.11 billion by increasing the funded tranche to $955 million from $930 million and the delayed-draw tranche to $200 million from $180 million, according to a market source.

The company also downsized its eight-year covenant-lite second-lien term loan to $280 million from $305 million.

Pricing on the first-lien term loan remained at Libor plus 375 basis points, but a 25 bps step-down was added after 0.5x of first-lien net leverage deleveraging, the source said. The 0.75% Libor floor, original issue discount of 99.5 and 101 soft call protection for six months were unchanged, as was the delayed-draw ticking fee of half the margin from days 46 to 75 and the full margin thereafter.

The second-lien term loan is still priced at Libor plus 675 bps with a 0.75% Libor floor and a discount of 99.5, and has call protection of 102 in year one and 101 in year two.

The company’s now $1.585 billion of credit facilities also include a $150 million revolver.

Convergint hits secondary

Commitments for Convergint’s credit facilities were due at noon ET on Thursday and the debt freed to trade later in the day, with the first-lien term loan quoted at 99¾ bid, par ¼ offered and the second-lien term loan quoted at par bid, 101 offered, another source added.

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to refinance existing debt and fund a distribution.

Convergint is a Schaumberg, Ill., service-based security systems integrator.

Trinseo flexes

Trinseo trimmed pricing on its $750 million seven-year covenant-lite term loan B (Ba2/BB-) to Libor plus 250 bps from Libor plus 275 bps, and outlined a ticking fee at half the spread starting on May 4 and lasting for 45 days and the full spread for the next 45 days, a market source remarked.

The term loan still has a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

Recommitments were due at noon ET on Thursday, the source added.

Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., Barclays, BNP Paribas Securities Corp., JPMorgan Chase Bank, Mizuho, Goldman Sachs Bank USA, Truist and Fifth Third are leading the deal.

Trinseo starts trading

In the afternoon, Trinseo’s term loan B broke for trading, with levels quoted at 99 5/8 bid, 99 7/8 offered, another source added.

Proceeds from the term loan will be used with $450 million of unsecured notes and about $198 million of existing cash to fund the acquisition of Arkema SA’s polymethyl methacrylates and activated methyl methacrylates businesses for €1.137 billion.

The company also intends to refinance its existing $375 million revolver with a new five-year revolver.

Closing is expected in the first half of May, subject to customary conditions and regulatory approvals.

Pro forma secured net leverage is 2.2x and total net leverage is 4.1x based on adjusted EBITDA of $484 million for the year ended Dec. 31, 2020.

Trinseo is a Berwyn, Pa.-based materials company and manufacturer of plastics, latex binders and synthetic rubber.

Kenan tweaked, frees up

Kenan Advantage Group carved out a $40 million equivalent Canadian tranche out of its $1 billion five-year covenant-lite term loan B, leaving the remaining $960 million in U.S. dollars, according to a market source.

All of the term loan debt is still priced at Libor plus 375 bps with a 0.75% Libor floor and an original issue discount of 99.5, and has 101 soft call protection for six months.

The term loan debt hit the secondary market during the session, with levels quoted at 99¾ bid, another source added.

The company’s $1.15 billion of credit facilities (B2/B) also include a $150 million revolver.

KeyBanc Capital Markets LLC is the left lead on the deal that will be used to refinance existing credit facilities, including a term loan due 2022.

Kenan Advantage is a North Canton, Ohio-based tank truck transporter and logistics provider.

SiteOne updated, trades

SiteOne Landscape Supply lifted its seven-year first-lien term loan B to $325 million from $300 million and flexed pricing to Libor plus 200 bps from talk in the range of Libor plus 225 bps to 250 bps, a market source remarked.

As before, the term loan has a 0.5% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months.

On Thursday, the term loan broke for trading, with levels quoted at par bid, par ¾ offered, another source added.

JPMorgan Chase Bank is leading the deal that will be used to refinance an existing term loan B due Oct. 29, 2024 priced at Libor plus 275 bps with a 1% Libor floor and, due to the upsizing, for general corporate purposes.

SiteOne is a Roswell, Ga.-based distributor of wholesale irrigation, landscape lighting, nursery, hardscapes, maintenance products and supplies for the green industry.

Tamko tightens, breaks

Tamko Building Products adjusted the original issue discount on its fungible $250 million incremental term loan B (B2) due May 2026 to 99.25 from 99, a market source said.

Like the existing term loan, the incremental term loan is priced at Libor plus 300 bps with a 0% Libor floor.

The term loan debt is getting 101 soft call protection for six months.

On Thursday, the incremental term loan emerged in the secondary market, with levels quoted at 99½ bid, par offered, another source added.

JPMorgan Chase Bank is the lead on the deal.

Proceeds will be used to fund a dividend.

Tamko is a Galena, Kan.-based manufacturer and marketer of residential roofing products and accessories.

Galderma frees

Galderma’s fungible $600 million covenant-lite add-on first-lien term loan due October 2026 and repriced $2.53 billion covenant-lite first-lien term loan due October 2026 started trading as well, with levels quoted at par bid, par ½ offered, according to a market source.

Pricing on the term loan debt is Libor plus 375 bps with a 25 bps step-down at 4.35x first-lien net leverage and a 0.75% Libor floor. The add-on term loan was sold at an original issue discount of 99.75 and repriced loan was issued at par. The debt has 101 soft call protection for six months.

During syndication, the add-on term loan was upsized from $400 million and pricing on all of the debt was lowered from Libor plus 400 bps.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Goldman Sachs Bank USA are leading the deal.

Proceeds from the add-on term loan will be used to refinance a portion of the company’s existing euro loan tranche, and the repricing will take the existing U.S. term loan down from Libor plus 425 bps with a 1% Libor floor.

Galderma is a Switzerland-based skincare company offering medical and consumer skin health solutions.

Liquid Tech breaks

Liquid Tech Solutions’ $300 million covenant-lite first-lien term loan (B3/B-) began trading too, with levels quoted at 99¾ bid, par ¼ offered, a market source said.

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 99.5. The debt has 101 soft call protection for six months.

During syndication, the discount on the term loan was tightened from 99.

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.

Denali tops OID

Denali Water Solutions’ $395 million first-lien term loan also freed to trade, with levels quoted at 99½ bid, par ½ offered, according to a market source.

Pricing on the term loan is Libor plus 425 bps with a 0.75% Libor floor and it was sold at an original issue discount of 99. The loan has 101 soft call protection for six months.

During syndication, pricing on the term loan was cut from talk in the range of Libor plus 450 bps to 475 bps.

The company’s $455 million of credit facilities (B3/B-) also include a $60 million revolver.

UBS Investment Bank, BMO Capital Markets and KeyBanc Capital Markets are leading the deal that will be used to fund the acquisition of Organix Recycling LLC, a food waste collector and recycler, and to refinance Denali’s existing credit facility.

Denali Water Solutions, a TPG portfolio company, is a Russellville, Ark.-based specialty waste and environmental services company.

PODS cuts spread

Back in the primary market, PODS reduced pricing on its $1.165 billion seven-year covenant-lite first-lien term loan B to Libor plus 300 basis points from Libor plus 325 bps, and kept the 0.75% Libor floor, original issue discount of 99.5 and 101 soft call protection for six months unchanged, according to a market source.

The company’s $1.265 billion of senior secured credit facilities (B2/B) also include a $100 million five-year revolver.

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

Morgan Stanley Senior Funding Inc., Credit Suisse Securities (USA) LLC and Barclays are leading the deal that will be used to refinance an existing first-lien term loan, fund a distribution to shareholders and pay related fees and expenses.

PODS is a Clearwater, Fla.-based provider of storage and moving containers.

Wilsonart modified

Wilsonart lifted pricing on its $1.241 billion covenant-lite term loan E (B2) due December 2026 to Libor plus 350 bps from Libor plus 325 bps, added a step-down to Libor plus 325 bps at 4.75x net leverage, and revised the Libor floor to 1% from 0.75%, a market source remarked.

The term loan still has an original issue discount of 99.5 and 101 soft call protection for six months.

Commitments continued to be due at 5 p.m. ET on Thursday, 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.

MBCC revised

MBCC Group cut pricing on its $570 million covenant-lite term loan B (B2/B/BB-) due September 2027 to Libor plus 350 bps from talk in the range of Libor plus 375 bps to 400 bps and changed the original issue discount to 99.5 from 99, according to a market source.

Additionally, the company set pricing on its €1.1 billion covenant-lite term loan B (B2/B/BB-) due September 2027 at Euribor plus 350 bps, the low end of the Euribor plus 350 bps to 375 bps talk, and revised discount talk to a range of 99.75 to par from just 99.75, the source said.

As before, the U.S. term loan has a 0.75% Libor floor, the euro term loan has a 0% floor and both loans have 101 soft call protection for six months.

Commitments were due at 1 p.m. ET on Thursday, the source added.

MBCC lead banks

Deutsche Bank Securities Inc. is the active bookrunner on MBCC Group’s U.S. term loan, and Barclays and Deutsche Bank are the active bookrunners on the euro term loan. Passive bookrunners include Goldman Sachs, Intesa, JPMorgan Chase Bank, UBS Investment Bank, Unicredit and SMBC. US Bank is the administrative agent.

The new debt will be used to refinance a privately placed U.S. term loan and reprice an existing euro term loan down from Euribor plus 450 bps with a 0% floor.

MBCC Group, previously known as Skyscraper, is a Mannheim, Germany-based producer of performance solutions for the construction market.

Thor changes emerge

Thor Industries modified price talk on its $942 million term loan (BB+) to a range of Libor plus 275 bps to 300 from a range of Libor plus 300 bps to 325 bps, reduced pricing on its €503 million term loan (BB+) to Euribor plus 300 bps from talk in the range of Euribor plus 325 bps to 350 bps, and set the issue price on both loans at par, the tight end of the 99.875 to par talk, a market source remarked.

The term loans still have a 0% floor.

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

JPMorgan Chase Bank is the left lead on the deal that will be used to reprice existing U.S. and euro term loans.

Thor Industries is an Elkhart, Ind.-based manufacturer of recreational vehicles.

Conga delays launch

Conga postponed its $565 million seven-year covenant-lite first-lien term loan that was scheduled to launch with a lender call at 11 a.m. ET on Thursday, with the call expected to be rescheduled to a later date, a market source said.

The term loan was going to include 101 soft call protection for six months.

Deutsche Bank Securities Inc. is the left lead on the deal that was going to be used to repay $565 million of existing borrowings.

Conga is a provider of a cloud-based software platform that digitally transforms revenue operations.

MedRisk guidance

MedRisk held its call on Thursday and announced talk on its $750 million first-lien term loan at Libor plus 350 bps to 375 bps with a 0.5% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, according to a market source.

Commitments are due on March 31, the source added.

The company’s $1.15 billion of credit facilities also include a $100 million revolver and a $300 million privately placed second-lien term loan.

UBS Investment Bank, BofA Securities Inc., Macquarie Capital (USA) Inc., Truist and Societe Generale are leading the deal that will be used to help fund the buyout of the company by CVC Capital Partners.

The Carlyle Group, MedRisk’s current majority owner, will retain a significant stake and maintain joint control in partnership with CVC.

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

MedRisk is a King of Prussia, Pa.-based provider of managed physical medicine services for the workers’ compensation industry.

AIT proposed terms

AIT Worldwide Logistics launched on its call its $415 million seven-year first-lien term loan (B2/B) at talk of Libor plus 425 bps to 450 bps with a 25 bps step-down at 4.25x first-lien net leverage, a 0.5% Libor floor and an original issue discount of 99, a market source said.

Commitments are due at 5 p.m. ET on March 30, the source added.

The company is also getting a $125 million privately placed second-lien term loan.

Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC, BMO Capital Markets, BNP Paribas Securities Corp. and Citizens Bank are leading the deal that will be used to help fund the buyout of the company by the Jordan Co. from Quad-C Management Inc.

Closing is expected at the end of March, subject to customary closing conditions and completion of review under antitrust laws.

AIT Worldwide is an Itasca, Ill.-based non-asset based third party logistics platform, providing an integrated suite of global, end-to-end supply chain services.

Atlantic Power talk

Atlantic Power came out with talk of Libor plus 400 bps to 425 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year on its $360 million six-year term loan B that launched with a morning meeting, according to a market source.

The company’s $405 million of credit facilities (Ba2) also include a $45 million revolver.

Commitments are due on April 1, the source added.

RBC Capital Markets and MUFG are leading the deal, which will be used to help fund the acquisition of Atlantic Power by I Squared Capital for $3.03 per share in cash, or about $961 million.

The transaction will be consummated by two entities, the Thermal Asset portfolio and the Hydro Asset portfolio. The Hydro portfolio will be separately capitalized and will not be included in the term loan B credit group.

Closing is expected in the second quarter, subject to court approval of the arrangement, regulatory approvals, shareholder approval and certain third-party consents.

Atlantic Power is a Dedham, Mass.-based power producer.

Cornerstone launches

Cornerstone OnDemand hosted a call at 1:30 p.m. ET to launch an $852,188,250 covenant-lite first-lien term loan B (Ba3/B+) due April 22, 2027 talked at Libor plus 325 bps to 350 bps with a 0% Libor floor, a par issue price and 101 soft call protection for six months, a market source remarked.

Commitments are due at noon ET on March 25, the source added.

Morgan Stanley Senior Funding Inc., Deutsche Bank Securities Inc., Jefferies LLC and BMO Capital Markets are leading the deal that will be used to reprice an existing term loan B down from Libor plus 425 bps with a 0% Libor floor.

Cornerstone is a Santa Monica, Calif.-based people development company.

Soliant holds call

Soliant held a lender call during the session to launch a $300 million term loan B (B2/B+) talked at Libor plus 425 bps to 450 bps with a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, a market source said.

Commitments are due at noon ET on March 25, the source added.

JPMorgan Chase Bank is leading the deal that will be used to refinance an existing term loan and fund a dividend.

Soliant is an Atlanta-based provider of healthcare jobs and staffing services.

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