Virgin Pulse, MyEyeDr., W.R. Grace break; Belfor revised; Atlantic, City Brewing accelerated

By Sara Rosenberg

New York, March 30 – Virgin Pulse lowered the spread on its second-lien term loan and finalized the original issue discount at the tight end of guidance, and MyEyeDr. (MED ParentCo. LP) increased the size of its incremental first-lien term loan, and then both of these deals broke for trading on Tuesday.

Another deal to make its way into the secondary market during the session was W.R. Grace & Co.’s term loan B-3.

In other news, Belfor Holdings Inc. upsized its add-on first-lien term loan and modified the issue price, and Atlantic Power Corp. (Thermal Asset portfolio) and City Brewing Co. LLC accelerated the commitment deadlines for their term loan transactions.

Also, Michaels Cos. Inc., ArcLight NGPL Holdings LLC (AL NGPL Holdings LLC) and CoreLogic joined this week’s primary calendar.

Virgin Pulse updated

Virgin Pulse trimmed pricing on its $185 million second-lien term loan (CCC) to Libor plus 725 basis points from Libor plus 750 bps and set the original issue discount at 99, the tight end of the 98.5 to 99 talk, according to a market source.

The 0.75% Libor floor and call protection of 102 in year one and 101 in year two on the second-lien term loan were unchanged.

The company’s $505 million first-lien term loan (B-) is still priced at Libor plus 400 bps with a 0.75% Libor floor and a discount of 99, and has 101 soft call protection for six months.

KKR Capital Markets and JPMorgan Chase Banks are leading the deal, with KKR the left lead on the first-lien loan and JPMorgan the left lead on the second-lien loan.

Virgin Pulse hits secondary

Recommitments for Virgin Pulse’s loans were due at noon ET on Tuesday and the debt broke for trading in the afternoon, with the first-lien term loan quoted at 99¼ bid, par offered and the second-lien term loan quoted at par bid, 102 offered, another source added.

Proceeds will be used to refinance existing debt and fund a dividend.

Virgin Pulse is a Providence, R.I.-based digital health, wellbeing and engagement company.

MyEyeDr. upsizes, breaks

MyEyeDr. raised its fungible incremental senior secured first-lien term loan due August 2026 to $125 million from $75 million, a market source remarked.

As before, the incremental term loan is priced at Libor plus 425 bps with a 0% Libor floor and an original issue discount of 99.

Recommitments were due at noon ET on Tuesday and the term loan began trading later in the day, with levels quoted at 99¼ bid, 99¾ offered, another source added.

Jefferies LLC, Golub, KKR Capital Markets, Macquarie Capital (USA) Inc. and Nomura are leading the deal that will be used for general corporate purposes.

MyEyeDr. is an optometry platform. The company is affiliated with Capital Vision Services LP, which provides management services to MyEyeDr. optometrists and its practices with financial, marketing, human resources and account services, along with managed care credentialing and claims processing.

W.R. Grace frees up

W.R. Grace’s $300 million seven-year term loan B-3 (Ba2/BBB-/BBB-) started trading as well, with levels quoted at 99¼ bid, par offered, according to a market source.

The term loan is priced at Libor plus 200 bps with a 0% Libor floor and was sold at an original issue discount of 99. The debt has 101 soft call protection for six months and a ticking fee of half the margin from days 46 top 75 and the full margin thereafter.

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.

Net leverage is expected to be about 3.3x at year-end 2021 and in the 2x to 3x range by 2022.

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

Belfor modified

Belfor Holdings lifted its fungible add-on first-lien term loan to $155 million from $130 million and revised the original issue discount to 99.875 from 99.5, a market source said.

Like the existing term loan, the add-on first-lien term loan is priced at Libor plus 400 bps with a 0% Libor floor.

JPMorgan Chase Bank is leading the deal that will be used to fund a distribution to shareholders, to repay second-lien borrowings and to add cash to the balance sheet.

Belfor is a Birmingham, Mich.-based disaster recovery and property restoration company.

Atlantic tweaks timing

Atlantic Power accelerated the commitment deadline for its $360 million six-year term loan B to noon ET on Wednesday from noon ET on Thursday, according to a market source.

Talk on the term loan is 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.

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

RBC Capital Markets and MUFG are leading the deal that 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 separate entities, the Thermal Asset portfolio and the Hydro Asset portfolio. The Hydro Asset portfolio will be separately capitalized.

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.

City Brewing accelerated

City Brewing moved up the commitment deadline for its $850 million seven-year term loan B (B1/B+) to 5 p.m. EET on Tuesday from 5 p.m. ET on Wednesday, a market source said.

The term loan is talked 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.

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.

Michaels readies deal

Michaels set a lender call for 10 a.m. ET on Wednesday to launch $2.8 billion of credit facilities, according to a market source.

The facilities consist of a $1 billion ABL revolver, and a $1.8 billion seven-year covenant-lite first-lien term loan 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, the source said.

Commitments are due at 5 p.m. ET on April 8.

Credit Suisse Securities (USA) LLC, Barclays, Wells Fargo Securities LLC, Deutsche Bank Securities Inc., RBC Capital Markets, Mizuho, BofA Securities Inc., Truist, Citizens Bank, Jefferies LLC, BMO Capital Markets, BNP Paribas Securities Corp. and Goldman Sachs Bank USA are leading the deal that will be used with notes and equity to fund the buyout of the company by Apollo Global Management Inc. for $22.00 per share in cash. The transaction values Michaels at an equity value of about $3.3 billion.

Closing is expected in the first half of the company’s fiscal year, subject to customary conditions, regulatory approval and a majority of shared being tenders.

Michaels is an Irving, Tex.-based retailer of arts and crafts supplies and home decor products.

ArcLight NGPL on deck

ArcLight NGPL scheduled a call for 10 a.m. ET on Wednesday to launch a $400 million seven-year senior secured term loan (Ba3/B+), a market source remarked.

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

Commitments are due at noon ET on April 9.

Barclays, Goldman Sachs Bank USA, MUFG and Natixis are leading the deal that that will be used to support the $830 million acquisition by an affiliate of ArcLight Capital Partners of a 25% stake in NGPL Holdings LLC, which indirectly owns 100% of Natural Gas Pipeline Co. of America LLC. The stake is being bought from Kinder Morgan Inc. and Brookfield Infrastructure Partners LP.

NGPL is a FERC-regulated natural gas pipeline system.

CoreLogic coming soon

CoreLogic emerged with plans to hold a lender call at 11 a.m. ET on Wednesday to launch a $4 billion seven-year term loan B, according to a market source.

Commitments are due at noon ET on April 13, the source added.

JPMorgan Chase Bank, Wells Fargo Securities LLC, Ares, BofA Securities Inc., Truist, Credit Suisse Securities (USA) LLC, KKR Capital Markets, Golub, RBC Capital Markets, Capital One, U.S. Bank, BMO Capital Markets, Citizens Bank, Fifth Third, KeyBanc Capital Markets, Macquarie Capital (USA) Inc., Nomura, MUFG, Stifel and SPC are leading the deal.

The new loan will be used to help fund the buyout of the company by Stone Point Capital and Insight Partners for $80 per share in cash, representing an equity value of about $6 billion.

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

CoreLogic is an Irvine, Calif.-based property information, analytics and data-enabled solutions provider.

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