OB Hospitalist frees up; RadNet, Nutrisystem, Priority, GMS, Tory Burch deal updates emerge

By Sara Rosenberg

New York, April 15 – OB Hospitalist Group’s incremental first-lien term loan made its way into the secondary market on Thursday, with levels quoted above its original issue discount.

Meanwhile, in the primary market, RadNet Management Inc. upsized its term loan B, finalized the spread and original issue discount at the narrow end of talk, added a pricing step-down and shortened the call protection, and Nutrisystem Inc. (KNS Acquisition Corp.) lifted the spread on its term loan B for a second time and firmed the issue price at the tight end of revised guidance.

Also, Priority Technology Holdings Inc. (Priority Holdings LLC) raised pricing on its term loan debt, increased the Libor floor and widened the original issue discount, and GMS Inc. (GYP Holdings III Corp.) scaled back the size of its first-lien term loan B and set the spread at the high side of guidance.

In addition, Tory Burch LLC firmed pricing on its first-lien term loan B at the wide end of talk, and Pacific Dental Services LLC accelerated the commitment deadline for its term loan B.

Furthermore, Cimpress plc, Conga (Apttus Corp.), Mitratech, Parts Authority (PAI Holdco Inc.) and Chromaflo (ASP Chromaflo Holdings LP) announced price talk with launch, and Cubic Corp. joined this week’s primary calendar.

OB Hospitalist breaks

OB Hospitalist Group’s fungible $100 million incremental first-lien term loan began trading, with levels quoted at 99¾ bid, par ¼ offered, a market source remarked.

Pricing on the incremental term loan is Libor plus 425 basis points with a 1% Libor floor and the debt was sold at an original issue discount of 99.5.

During syndication, the discount on the incremental loan was tightened from 99.27.

Antares Capital is leading the deal that will be used with a roughly $17 million pre-placed incremental second-lien term loan to fund a shareholder dividend.

The company currently has a $192 million first-lien term loan due August 2024. Pricing on the existing term loan is currently Libor plus 400 bps with a 1% Libor floor, but the spread will be stepping up to Libor plus 425 bps based on an existing grid.

OB Hospitalist is a Greenville, S.C.-based OB/GYN provider.

RadNet revised

Switching to primary happenings, RadNet increased its seven-year term loan B to $725 million from $675 million, set pricing at Libor plus 325 bps, the low end of the Libor plus 325 bps to 350 bps talk, and added a step-down to Libor plus 300 bps at 3.5x total net leverage, according to a market source.

Also, the original issue discount on the term loan firmed at 99.5, the tight end of the 99 to 99.5 talk, and the 101 soft call protection was shortened to six months from one year, the source said.

As before, the term loan has a 0.75% Libor floor.

The company’s now $920 million of credit facilities include a $195 million five-year revolver as well.

Final commitments are due at 10 a.m. ET on Friday, the source added.

Barclays is leading the deal that will be used to refinance the company’s existing credit facilities and replenish balance sheet cash for general corporate purposes.

RadNet is a Los Angeles-based owner and operator of outpatient diagnostic imaging centers.

Nutrisystem flexes again

Nutrisystem raised pricing on its $557 million six-year covenant-lite term loan B (B1/B) to Libor plus 625 bps from revised talk of Libor plus 600 bps and initial talk of Libor plus 525 bps, a market source said.

Also, the original issue discount on the term loan finalized at 97, the tight end of revised talk of 96 to 97 but wide of initial talk in the range of 98 to 98.5, the source continued.

And some more documentation changes were made, including revising the incremental/IED/ratio debt to $50 million/35% of EBITDA from $75 million/50% of EBITDA, modifying non-loan party investments to $25 million/17% of EBITDA from $75 million/50% of EBITDA, and removing the general RDP basket.

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

Previously in syndication, a pricing step-down upon an initial public offering was removed from the term loan, the call protection was extended from six months, the maturity was shortened from seven years, amortization was increased to 2.5% per annum from 1%, and documentation changes were made to, among other things, MFN, accordion, asset sale, excess cash flow sweep, general debt, EBITDA cost savings addback, and quarterly lender call requirement.

Nutrisystem deadline

Recommitments for Nutrisystem’s first-lien term loan were due at 4 p.m. ET on Thursday, the source added.

Deutsche Bank Securities Inc., Nomura, Jefferies LLC, BNP Paribas Securities Corp. and Rabobank are leading on the deal.

Proceeds will be used with a $100 million privately placed second-lien loan to fund the acquisition of Adaptive Health, a marketer and manufacturer of branded, condition-specific, science-backed nutritional supplements.

Nutrisystem is a Fort Washington, Pa.-based provider of weight loss and wellness programs.

Priority reworked

Priority Technology raised pricing on its $300 million six-year covenant-lite term loan B and $290 million delayed-draw term loan, which are being sold as a strip, to Libor plus 575 bps from talk in the range of Libor plus 525 bps to 550 bps, changed the Libor floor to 1% from 0.75% Libor floor and adjusted the original issue discount to 98 from 99, according to a market source.

In addition, the 12-month MFN sunset was removed and quarterly conference calls are now required, the source said.

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

The company’s $630 million of senior secured credit facilities (B2/B-) also include a $40 million five-year revolver.

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

Priority buying Finxera

Priority Technology will use its new credit facilities with the sale of up to $250 million of perpetual senior preferred equity securities to fund the acquisition of Finxera Holdings Inc. for $425 million, of which $375 million is cash and $50 million is common stock, and to refinance existing debt.

Truist Securities Inc. is leading the debt.

Closing on the acquisition is expected in the third quarter, subject to regulatory approvals and other customary conditions. The term loan is expected to close in the second quarter.

Net leverage will be below 4.25x.

Priority is an Alpharetta, Ga.-based payments technology company. Finxera is a San Jose, Calif.-based operator of a BaaS platform that allows enterprises to incorporate banking and payment services into their applications.

GMS updated

GMS trimmed its senior secured first-lien term loan B due June 1, 2025 to $511 million from roughly $574 million and firmed pricing at Libor plus 250 bps, the high end of the Libor plus 225 bps to 250 bps talk, according to a market source.

The term loan still has a 0% Libor floor, a par issue price and 101 soft call protection for six months.

Allocations went out on Thursday, the source added.

Barclays is the left lead on the deal. Credit Suisse Securities (USA) LLC is the administrative agent.

The loan will be used with $350 million of senior notes, upsized from $300 million, and cash on hand to refinance/reprice an existing first-lien term loan B priced at Libor plus 275 bps with a 0% Libor floor.

GMS is a Tucker, Ga.-based distributor of interior construction products.

Tory Burch finalizes

Tory Burch set pricing on its $600 million seven-year first-lien term loan B (Ba2/BB-) at Libor plus 350 bps, the high end of the Libor plus 325 bps to 350 bps talk, a market source remarked.

The term loan still has a 0.5% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

UBS Investment Bank, JPMorgan Chase Bank, BofA Securities Inc., Morgan Stanley Senior Funding Inc., HSBC Securities (USA) Inc. and MUFG are leading the deal that will be used to refinance existing debt and fund an equity tender offer.

Tory Burch is a retailer of clothing, shoes and accessories.

Pacific Dental accelerated

Pacific Dental Services moved up the commitment deadline for its $600 million seven-year term loan B to 5 p.m. ET on Friday from Tuesday, 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 and 101 soft call protection for six months.

The company’s $850 million of credit facilities (B1/B) also include a $250 million revolver.

BNP Paribas Securities Corp., BofA Securities Inc., JPMorgan Chase Bank, KeyBanc Capital Markets and MUFG are leading the deal that will be used to refinance existing bank debt and for general corporate purposes.

Pacific Dental is an Irvine, Calif.-based provider of management services to affiliate dental practices.

Cimpress guidance

Cimpress held its call in the morning and announced price talk on its $795 million seven-year covenant-lite term loan B and €300 million seven-year covenant-lite term loan B, according to an informed source.

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

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

The company’s senior secured credit facilities (Ba3/BB) also include a $250 million five-year revolver.

Commitments are due on April 29 at 5 p.m. ET for the U.S. loan and at noon ET for the euro loan.

JPMorgan Chase Bank is the left lead on the deal that will be used to redeem 12% second-lien notes due 2025, repay amounts drawn under a revolver, repay a term loan A and add cash to the balance sheet.

Closing and funding is expected on May 17.

Cimpress is a Dundalk, Ireland-based investor in customer-focused, entrepreneurial, mass-customization businesses.

Conga proposed terms

Conga came out with talk of Libor plus 400 bps to 425 bps with a 0.75% Libor floor and an original issue discount of 99.5 on its $565 million seven-year covenant-lite first-lien term loan (B3/B-/BB) that launched with a call in the morning, a market source remarked.

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

Commitments are due at 5 p.m. ET on April 27.

Deutsche Bank Securities Inc., BofA Securities Inc., Barclays, Citigroup Global Markets Inc. and Morgan Stanley Senior Funding Inc. are leading the deal, which will be used to repay $565 million of existing borrowings.

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

Mitratech talk

Mitratech launched on its afternoon call its $445 million seven-year covenant-lite first-lien term loan (B2/B-) at talk of Libor plus 375 bps to 400 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.

In addition, the company’s $185 million eight-year covenant-lite second-lien term loan (Caa2/CCC) was launched at talk of Libor plus 675 bps with a 0.75% Libor floor, a discount of 99 and hard call protection of 102 in year one and 101 in year two, the source said.

Commitments are due on April 28, the source added.

The company’s $745 million of credit facilities also include a $40 million five-year revolver (B2/B-) and a $75 million privately placed covenant-lite delayed-draw first-lien term loan (B2/B-).

Mitratech leads

Golub Capital, UBS Investment Bank, Barclays and Deutsche Bank Securities Inc. are leading Mitratech’s credit facilities.

The new debt will be used to help fund the buyout of the company by Ontario Teachers’ Pension Plan Board. Current investor, Hg Capital, is rolling a portion of its position in the company as part of the transaction. TA Associates is selling its minority investment in the business.

Closing is subject to customary conditions.

Mitratech is an Austin, Tex.-based provider of legal, compliance and operational risk software solutions for law firms and corporate in-house legal departments.

Parts Authority launches

Parts Authority held its call in the morning, launching its fungible $50 million incremental first-lien term loan due Oct. 28, 2027 and repricing of its existing $600 million first-lien term loan due Oct. 28, 2027 at talk of Libor plus 375 bps with a 25 bps step-down based on leverage and a 25-bps step-down upon an initial public offering, and a 0.75% Libor floor, a market source said.

The incremental term loan is talked with an original issue discount of 99.75 the repricing is offered at par and all of the term loan debt is getting 101 soft call protection for six months.

Commitments/consents are due at 12:30 p.m. ET on April 22, the source added.

Jefferies LLC is leading the deal.

The incremental term loan will be used to pay down outstanding ABL borrowings, and the repricing will take the existing term loan down from Libor plus 400 bps with a 1% Libor floor. The existing term loan has the same leverage-based and IPO-based pricing step-downs as the proposed repriced term loan.

Parts Authority is a Lake Success, N.Y.-based automotive aftermarket replacement parts distribution platform serving the do-it-for-me and do-it-yourself e-commerce segments of the automotive aftermarket.

Chromaflo holds call

Chromaflo launched on its afternoon call its fungible $59 million add-on covenant-lite first-lien term loan B (B2) due Nov. 18, 2023 with original issue discount talk of 99.75, according to a market source.

Pricing on the add-on term loan is Libor plus 350 bps with a 1% Libor floor and the debt has 101 soft call protection for six months.

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

Morgan Stanley Senior Funding Inc. is the left lead on the deal that will be used to refinance an existing non-fungible $59 million term loan B.

The company also privately placed a $145 million second-lien term loan to fund a dividend to shareholders.

Chromaflo is an Ashtabula, Ohio-based manufacturer of chemical and pigment dispersions for architectural and industrial coatings.

Cubic on deck

Cubic set a lender call for 10 a.m. ET on Friday to launch $1.775 billion of senior secured term loans, split between a $1.475 billion seven-year first-lien term loan B and a $300 million seven-year first-lien term loan C, a market source remarked.

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

Barclays, Credit Suisse Securities (USA) LLC, BMO Capital Markets, KKR Capital Markets, Mizuho, RBC Capital Markets and Truist Securities Inc. are leading the deal that will be used to help fund the buyout of the company by Veritas Capital and Evergreen Coast Capital Corp. for $70.00 per share in cash. The all-cash transaction is valued at about $2.8 billion, including the assumption of debt.

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

Cubic is a San Diego-based provider of integrated solutions that increase situational understanding for transportation, defense C4ISR and training customers.

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