IFS frees up; Empire tweaks deal; Solis, Tecta, J&J, Instant Brands and more set talk

By Sara Rosenberg

New York, March 23 – IFS AB finalized the spread on its euro first-lien term loan B at the low end of revised guidance, and its U.S. first-lien term loan B made its way into the secondary market on Tuesday.

Meanwhile, in other happenings, Empire Today increased the size of its first-lien term loan with the extra proceeds earmarked for acquisition funding.

Also, Solis Mammography (SM Wellness Holdings Inc.), Tecta America Corp., J&J Ventures Gaming LLC, Instant Brands Holdings Inc., City Brewing Co. LLC, Culligan Holding Inc. (AI Aqua Merger Sub Inc.), Belron, Magnite and W.R. Grace & Co. released price talk with launch.

Furthermore, Organon & Co., Aramark and MyEyeDr. (MED ParentCo. LP) joined this week’s primary calendar.

IFS updated

IFS set pricing on its €520 million first-lien term loan B and €67 million acquisition financing term loan at Euribor plus 350 basis points, the low end of revised talk of Euribor plus 350 bps to 375 bps and down from initial talk of Euribor plus 400 bps, according to a market source.

As before, the euro term loans have a 0% floor, an original issue discount of 99.75 and 101 soft call protection for six months.

The company is also getting a $720 million first-lien term loan B priced at Libor plus 375 with a 0.5% Libor floor and a discount of 99.75. This tranche also has 101 soft call protection for six months.

Previously in syndication, pricing on the U.S. term loan was trimmed from Libor plus 400 bps, and the discount on all of the term loans was revised from 99.5.

IFS hits secondary

On Tuesday, IFS’ U.S. term loan freed to trade, with levels quoted at par bid, par ½ offered, another source added.

JPMorgan Chase Bank, Morgan Stanley Senior Funding Inc., BofA Securities Inc., Credit Agricole, Credit Suisse, Mizuho, Nordea, SEB and SMBC are leading the deal (B2), with JPMorgan the left lead on the U.S. loan and Morgan Stanley the left lead on the euro loans.

The new loans will be used to refinance existing debt, fund a dividend and finance acquisitions.

IFS is a Sweden-based enterprise software company.

Empire upsizes

Empire Today raised its first-lien term loan to $425 million from $410 million, and left price talk at Libor plus 475 bps to 500 bps with a 0.75% Libor floor and an original issue discount of 98.5 to 99, a market source said.

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

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

KKR Capital Markets is the left lead on the deal that will be used to refinance existing debt, fund a dividend and, due to the upsizing, finance an acquisition.

Empire Today is a provider of installed home improvements and home furnishings.

Solis guidance

Solis Mammography held its bank meeting at 9 a.m. ET on Tuesday and, shortly before the event began, price talk was announced on its $300 million seven-year first-lien term loan (B2/B-), $50 million 18-month commitment delayed-draw first-lien term loan (B2/B-) and $100 million eight-year second-lien term loan (Caa2/CCC), according to a market source.

Talk on the funded and delayed-draw first-lien term loans, which are being sold as a strip, is Libor plus 425 bps to 450 bps with one 25 bps leverage-based step-down, a 0.75% Libor floor and an original issue discount of 99.5, and talk on the second-lien term loan is Libor plus 800 bps with a 0.75% Libor floor and a discount of 98.5, the source said.

The delayed-draw term loan has a ticking fee of half the margin from days 46 to 90 and the full margin thereafter.

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

Solis getting revolver

In addition to the first-and second-lien term loans, Solis Mammography’s $475 million of senior secured credit facilities provide for a $25 million five-year revolver (B2/B-).

Commitments are due at noon ET on March 31, the source added.

Jefferies LLC is leading the deal that will be used to refinance the company’s existing capital structure.

Solis Mammography is an Addison, Tex.-based provider of mammography and related breast imaging services.

Tecta proposed terms

Tecta America came out with price talk on its $600 million seven-year covenant-lite first-lien term loan (B1/B-) and $190 million eight-year covenant-lite second-lien term loan (Caa1/CCC) a few hours before its noon ET lender call kicked off, a market source remarked.

The first-lien term loan is talked at Libor plus 425 bps to 450 bps with a 0.75% Libor floor and an original issue discount of 99, and the second-lien term loan is talked at Libor plus 800 bps to 825 bps with a 0.75% Libor floor and a discount of 98.5, the source said.

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

The company’s $915 million of credit facilities also provide for a $125 million revolver (B1/B-).

Commitments are due at 5 p.m. ET on April 1.

Credit Suisse Securities (USA) LLC, UBS Investment Bank, RBC Capital Markets and Truist are leading the deal that will be used by the Rosemont, Ill.-based provider of commercial roofing services to refinance existing debt, to finance an acquisition, to fund a distribution and for general corporate purposes.

J&J holds call

J&J Ventures surfaced in the morning with plans to hold a lender call at 2 p.m. ET on Tuesday to launch $635 million of credit facilities (B2/B), according to a market source.

The facilities consist of a $60 million revolver, and a $575 million seven-year first-lien term loan talked at Libor plus 400 bps to 425 bps with a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, the source said.

Commitments are due at 5 p.m. ET on April 6.

Credit Suisse Securities (USA) LLC, BofA Securities Inc. and Fifth Third are leading the deal that will be used to refinance existing debt and fund acquisitions.

J&J is an operator of video gaming terminals in Illinois.

Instant Brands talk

A few hours ahead of its 3 p.m. ET bank meeting, Instant Brands released talk on its $450 million seven-year first-lien term loan (Ba3/B) at Libor plus 425 bps to 450 bps with a 0.75% Libor floor and an original issue discount of 99, a market source said.

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

Commitments are due at noon ET on April 6, the source added.

Jefferies LLC, RBC Capital Markets, Citigroup Global Markets Inc. and BofA Securities Inc. are leading the deal that will be used to refinance existing debt and fund a distribution to shareholders.

Instant Brands is a manufacturer of kitchen and houseware brands, such as Instant, Pyrex, Corelle, CorningWare, SnapWare, Chicago Cutlery and Visions.

City Brewing guidance

City Brewing announced talk on its $850 million seven-year term loan B (B1/B+) at Libor plus 375 bps with a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for six months with its lender call during the session, according to a market source.

Commitments are due at 5 p.m. ET on March 31.

JPMorgan Chase Bank is leading the deal that will be used to help fund the buyout of the company by a consortium of investors, including Charlesbank Capital Partners, Oaktree Capital Management LLC and Blue Ribbon Partners LLC.

Closing is expected in April.

City Brewing is an alcoholic and non-alcoholic beverage contract manufacturer.

Culligan price talk

Culligan launched on its afternoon call its $100 million covenant-lite delayed-draw term loan (B2/B) and repricing of its existing roughly $665 million covenant-lite first-lien term loan B (B2/B) due December 2023 at talk of Libor plus 325 bps with a 25 bps step-down at 4x first-lien net leverage, a 1% Libor floor, an original issue discount of 99.875 and 101 soft call protection for six months, a market source remarked.

The delayed-draw term loan ticking fee is half the margin from days 46 to 90 and the full margin thereafter.

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

Morgan Stanley Senior Funding Inc. is the left lead on the deal.

The repriced term loan and delayed-draw term loan will be fungible with the company’s existing $611 million term loan B-1 due 2023 priced at Libor plus 325 bps.

Culligan is a Rosemont, Ill.-based provider of water treatment products and services.

Belron launches

Belron held a lender call at 11:30 a.m. ET to launch a $994 million extended seven-year covenant-lite term loan B, an €840 million seven-year covenant-lite term loan B and a €735 million seven-year covenant-lite term loan B, according to a market source.

The U.S. term loan is talked at Libor plus 250 bps with a 0% Libor floor and a 25 bps extension fee, and the euro term loans are talked at Euribor plus 250 bps with a 0% floor, the source said. The €840 million tranche is talked with an original issue discount of 99.5 to 99.75 and the €735 million tranche is talked with a discount of 99 to 99.5. All of the term loans have 101 soft call protection for six months.

Proceeds will be used to fund a shareholder distribution, amend and extend the U.S. term loan B due November 2024 and refinance the euro term loan B due November 2024.

Belron lead banks

BofA Securities Inc., Barclays, BNP Paribas and JPMorgan Chase Bank are the joint global coordinators and sustainability coordinators on Belron’s senior secured loans (Ba3/BB+). JPMorgan is the physical bookrunner on the U.S. debt. BofA Securities, Barclays and BNP Paribas are the physical bookrunners on the euro debt. JPMorgan is the agent.

The company is also amending its $446 million covenant-lite term loan B due November 2025 and $822 million covenant-lite term loan B due October 2026, and offering lenders a 12.5 bps amendment fee.

Pricing on the 2025 and 2026 term loans will be unchanged at Libor plus 250 bps with a 0% Libor floor.

Commitments/consents are due at noon ET on March 30, the source added.

Belron, which is 54.85% owned by D’Ieteren Group and 40% owned by CD&R, is a United Kingdom-based provider of vehicle glass repair and replacement services.

Magnite reveals guidance

Magnite came out with talk of 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 on its $360 million seven-year first-lien term loan B (Ba3/B+) that launched with a call in the morning, a market source said.

Commitments are due at noon ET on March 31, the source added.

Goldman Sachs Bank USA, Fifth Third, SVB and Societe Generale are leading the deal, which will be used to help fund the acquisition of SpotX from RTL Group for $1.17 billion in cash and stock. Magnite plans to issue 14 million shares to RTL.

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

Magnite is a Los Angeles-based sellside advertising platform. SpotX is a Brookfield, Colo.-based video advertising platform.

W.R. Grace talk

W.R. Grace launched on its morning call its $300 million seven-year term loan B-3 (Ba2/BBB-/BBB-) at talk of Libor plus 200 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

The term loan has a ticking fee of half the margin from days 46 top 75 and the full margin thereafter.

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

Goldman Sachs Bank USA is leading the deal that will be used to help fund the acquisition of the fine chemistry services business of Albemarle Corp. for about $570 million, including $300 million paid in cash at closing and $270 million funded through the issuance to Albemarle of non-participating preferred equity of a newly created Grace subsidiary.

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

W.R. Grace is a Columbia, Md.-based specialty chemical company.

PetIQ sets deadline

PetIQ LLC is asking for commitments for its $300 million seven-year senior secured first-lien term loan (B3/B-) by 2 p.m. ET on April 6, a market source remarked.

As previously reported, talk on the term loan is Libor plus 425 bps with 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 $425 million of credit facilities, which launched with a bank meeting at 1 p.m. ET on Tuesday, also include a $125 million five-year ABL revolver.

Jefferies LLC and KeyBanc Capital Markets are leading the deal that will be used to partially refinance existing debt.

PetIQ is an Eagle, Idaho-based pet medication and wellness company providing convenient access to affordable veterinary products and services.

Organon readies deal

Organon scheduled a lender call for 11 a.m. ET on Wednesday to launch $3 billion equivalent of term loans (Ba2), according to a market source.

The debt consists of a $2 billion seven-year term loan talked at Libor plus 300 bps with a 0.5% Libor floor and an original issue discount of 99 to 99.5, and a $1 billion equivalent euro seven-year term loan talked at Euribor plus 300 bps with a 0% floor and a discount of 99 to 99.5, the source said.

Both term loans have 101 soft call protection for six months.

Commitments are due at 11 a.m. ET on April 7, the source added.

JPMorgan Chase Bank, Morgan Stanley Senior Funding Inc., BofA Securities Inc., BNP Paribas Securities Corp., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs Bank USA and HSBC Securities (USA) Inc. are leading the deal that will be used to help fund the creation of the company through the spin-off of Merck’s women’s health, legacy brands and biosimilars businesses.

Organon is a Jersey City, N.J.-based pharmaceutical company focused on prescription therapies within women’s health, biosimilars and established brands.

Aramark on deck

Aramark will hold a lender call at 11 a.m. ET on Wednesday to launch an $833 million seven-year term loan B (BB+) talked at Libor plus 225 bps to 250 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, a market source said.

Commitments are due at 5 p.m. ET on March 31, the source added.

JPMorgan Chase Bank is leading the deal that will be used to refinance an existing term loan B due 2024.

Additionally, the company has initiated a process for a three-year extension of both its revolver and term loan A to 2026.

Aramark is a Philadelphia-based professional services company that provides food, hospitality and facility management services as well as uniform and work apparel.

MyEyeDr. coming soon

MyEyeDr. set a lender call for 2 p.m. ET on Wednesday to launch a fungible $75 million incremental first-lien term loan due August 2026, according to a market source.

Commitments are due at 3 p.m. ET on Monday, the source said.

Jefferies LLC is the leading the deal that will be used for general corporate purposes.

MyEyeDr. is an optometry platform.

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