CPV Maryland frees up; Therapy Brands, HelpSystems, Greystone Select changes surface

By Sara Rosenberg

New York, May 10 – CPV Maryland LLC downsized its term loan B and extended the call protection, and then the debt made its way into the secondary market on Monday.

In more happenings, Therapy Brands Holdings LLC upsized its funded and delayed-draw second-lien term loans and HelpSystems tightened the issue price on its second-lien term loan debt.

Also, Greystone Select Financial LLC set the spread on its term loan B at the high end of guidance, widened original issue discount talk and sweetened the call protection.

Furthermore, Hilton Grand Vacations and Hayward Industries Inc. released price talk with launch, and Atkore Inc., Frontdoor Inc. and Sabre Industries Inc. joined this week’s primary calendar.

CPV revised, breaks

CPV Maryland trimmed its seven-year term loan B to $350 million from $375 million and extended the 101 soft call protection to one year from six months, according to a market source.

Pricing on the term loan remained at Libor plus 400 basis points with a 1% Libor floor and an original issue discount of 99.

The company’s now $450 million of credit facilities (Ba3/BB-) also include a $100 million 6.5-year revolver.

On Monday, the term loan B freed to trade, with levels quoted at 99 bid, par offered, the source added.

MUFG, BNP Paribas Securities Corp., Credit Agricole and Mizuho are leading the deal that will be used to refinance an existing term loan, fund a distribution to the sponsors and pay transaction costs.

CPV Maryland owns the CPV St. Charles Energy Center, an operating 745 MW natural gas-fired, combined cycle generating facility located in Charles County, Md.

Therapy Brands tweaked

Therapy Brands lifted its eight-year second-lien term loan (Caa2/CCC) to $95 million from $85 million and its delayed-draw second-lien term loan (Caa2/CCC) with a 24-month commitment period to $40 million from $20 million, a market source remarked.

Talk on the second-lien term loan debt, which is being sold as a strip, is Libor plus 675 bps with a 0.75% Libor floor, an original issue discount of 99 and has soft call protection of 102 in year one and 101 in year two. The delayed-draw second-lien term loan has a ticking fee of 75 bps starting on day 61.

The company’s now $470 million of senior secured credit facilities also include a $40 million five-year revolver (B2/B-), a $235 million seven-year first-lien term loan (B2/B-) and a $60 million delayed-draw first-lien term loan (B2/B-) with a 24-month commitment period.

The first-lien term loan debt, which is being sold as a strip, is talked at Libor plus 400 bps to 425 bps with a 25 bps step-down at 4.55x first-lien leverage, a 0.75% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months. Ticking fees on the delayed-draw first-lien term loan are half the margin from days 61 to 120 and the full margin thereafter.

Therapy Brands leads

Jefferies LLC, KKR Capital Markets, Societe Generale and Stone Point are leading Therapy Brands’ credit facilities, with Jefferies the left lead on the first-lien and KKR the left lead on the second-lien.

Commitments are due at noon ET on Tuesday.

The new debt will be used to help fund the buyout of the company by KKR from Lightyear Capital LLC, Oak HC/FT and Greater Sum Ventures.

Therapy Brands is a Birmingham, Ala.-based provider of integrated practice management software and payment solutions to the mental health, behavioral health and rehabilitation markets.

HelpSystems updated

HelpSystems changed the issue price on its fungible $65 million incremental second-lien term loan and repriced $290 million second-lien term loan to par from talk in the range of 99.5 to 99.75, according to a market source.

As before, the second-lien term loan debt is priced at Libor plus 675 bps with a 0.75% Libor floor and has hard call protection of 102 in year one and 101 in year two.

The company is also getting a fungible $235 million incremental first-lien term loan (B2/B-) priced at Libor plus 475 bps with a 1% Libor floor and a par issue price. This tranche has 101 soft call protection through June 22.

Previously in syndication, the incremental first-lien term loan was upsized from $170 million, the incremental second-lien term loan was downsized from $130 million and the repricing of the existing second-lien term loan was added to the transaction. In addition, the original issue discount talk on the incremental second-lien term loan was changed from just 99.5 at launch and the debt was made fungible with the existing tranche instead of being non-fungible.

HelpSystems deadline

Recommitments for HelpSystems’ first-and second-lien term loans are due at 11 a.m. ET on Tuesday, the source added.

Golub Capital is the left lead on the deal.

The incremental term loans will be used to fund two tuck-in acquisitions and a minority recapitalization, and the second-lien term loan repricing will take pricing down from Libor plus 800 bps with a 1% Libor floor.

Pro forma for the transaction, the first-lien term loan will total $1.366 billion.

HelpSystems, a portfolio company of TA Associates, HGGC and Charlesbank, is an Eden Prairie, Minn.-based provider of cybersecurity and automation software.

Greystone modified

Greystone Select Financial firmed pricing on its $325 million term loan B (Ba2//BB) at Libor plus 500 bps, the high end of the Libor plus 475 bps to 500 bps talk, revised the original issue discount talk to a range of 97 to 97.5 from a range of 98.5 to 99, and extended the 101 soft call protection to one year from six months, a market source said.

The term loan still has a 0.75% Libor floor.

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

JPMorgan Chase Bank is leading the deal that will be used to refinance existing debt and for general corporate purposes.

Greystone is a New York-based commercial real estate finance and investment company.

Hilton Grand guidance

Hilton Grand Vacations held its call on Monday and announced price talk on its $1.3 billion seven-year term loan B (BB/BB+) at Libor plus 300 bps to 325 bps with a 0.5% Libor floor and an original issue discount of 99 to 99.5, according to a market source.

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

Commitments are due at noon ET on May 20, the source added.

BofA Securities Inc., Deutsche Bank Securities Inc., Barclays, Credit Suisse Securities (USA) LLC, JPMorgan Chase Bank, Goldman Sachs Bank USA and MUFG are leading the deal.

Pro forma for the transaction, secured and total leverage will be 1.9x and 3.3x, respectively, excluding non-recourse securitized debt and based on fiscal year 2019 pro forma adjusted EBITDA of $885 million.

Hilton buying Diamond

Hilton Grand Vacations will use the term loan, along with $675 million of senior unsecured notes, to refinance existing debt in connection with its acquisition of Diamond Resorts International Inc., including senior notes at Hilton Grand Vacations and notes at Diamond Resorts.

Diamond Resorts is being purchased from Apollo Global Management Inc. and Reverence Capital Partners for 34.5 million shares of Hilton Grand Vacations common stock. The transaction is valued at $1.4 billion.

Upon closing, existing Hilton Grand Vacations shareholders will own about 72% of the combined company and the Apollo Funds will own around 28% of the combined company.

Closing is expected this summer, subject to customary conditions, regulatory approvals and shareholder approval.

Orlando, Fla.-based Hilton Grand Vacations and Diamond Resorts are timeshare companies.

Hayward proposed terms

Hayward Industries held a lender call during the session, launching a $1 billion seven-year term loan B (B2/BB-) talked at Libor plus 275 bps with a 0.5% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months, a market source remarked.

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

BofA Securities Inc. and Nomura are leading the deal that will be used to repay existing first-lien term loans and ABL revolver borrowings.

Hayward is a Berkeley Heights, N.J.-based manufacturer of residential and commercial pool and spa equipment as well as industrial flow control products.

Atkore on deck

Atkore set a lender call for 1:30 p.m. ET on Tuesday to launch a $400 million term loan B (Ba1/BB+/BB+) due 2028 talked at Libor plus 225 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 at 5 p.m. ET on May 17, the source added.

JPMorgan Chase Bank is leading the deal that will be used with unsecured debt to refinance an existing senior secured term loan due December 2023, to pay related fees and expenses and for general corporate purposes.

The company is also planning to extend the maturity of its existing $325 million asset-based credit facility to 2026.

Atkore is a Harvey, Ill.-based provider of electrical, safety and infrastructure solutions.

Frontdoor joins calendar

Frontdoor scheduled a lender call for Tuesday to launch a $400 million term loan B (BB-) talked at Libor plus 225 bps to 250 bps with a 0% Libor floor, and 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 May 20, the source added.

The company also plans on getting a new revolver and term loan A.

JPMorgan Chase Bank is leading the deal that will be used with cash on hand to repay $350 million of 6.75% senior notes due 2026, and refinance an existing revolver due in 2023 and a term loan B due in 2025.

Closing is expected in June.

Frontdoor is a Memphis, Tenn.-based provider of home service plans.

Sabre readies deal

Sabre Industries emerged with plans to hold a lender call at 11 a.m. ET on Tuesday to launch an $875 million first-lien term loan, according to a market source.

The company is also getting a $345 million privately placed second-lien term loan, the source said.

Goldman Sachs Bank USA and Citigroup Global Markets Inc. are leading the deal that will be used to help fund the buyout of the company by Blackstone from the Jordan Co.

Closing is expected this quarter, subject to customary conditions.

Sabre is an Alvarado, Tex.-based designer and manufacturer of highly-engineered, mission-critical overhead steel poles, towers, battery storage solutions, and related services for electrical utility and telecom end markets.

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