SubCom, ICP break; Pacific Dental, Logoplaste tweaked; Wells Fargo, Resonetics accelerated

By Sara Rosenberg

New York, April 20 – SubCom set pricing on its first-lien term loan at the high end of guidance, extended the call protection and made some documentation changes, and ICP Group finalized the issue price on its incremental term loan B at the tight end of talk, and then both of these deals freed to trade on Tuesday.

In other news, Pacific Dental Services LLC modified the spread and original issue discount on its term loan B, and Logoplaste (Mar Bidco Sarl) firmed pricing on its U.S. term loan B at the low end of guidance and revised price talk on its euro term loan B.

Also, Wells Fargo Asset Management (Zebra Buyer LLC) and Resonetics LLC accelerated the commitment deadlines for their first-lien term loans.

Additionally, TKC Holdings Inc., LaserShip (ASP LS Acquisition Corp.), Lonza Specialty Ingredients, Insulet Corp., Aspect Software Inc. (Atlas Purchaser Inc.), CPV Maryland LLC and Surgery Partners Inc. (Surgery Center Holdings Inc.) released price talk with launch.

Furthermore, Duravant LLC (Engineered Machinery Holdings Inc.), Aristocrat Leisure Ltd., PQ Performance Chemicals, Consilio (Skipoma Merger Sub Inc.) and Press Ganey (Azalea TopCo Inc.) joined this week’s primary calendar, and Mavis Tire Express Services TopCo LP set a launch date for its credit facilities.

SubCom tweaked, trades

SubCom finalized pricing on its $730 million six-year first-lien term loan (B1/B) at Libor plus 500 basis points, the high end of the Libor plus 475 bps to 500 bps talk, and extended the 101 soft call protection to one year from six months, according to a market source.

Also, MFN was changed to 50 bps for 12 months from 75 bps for six months, the inside maturity basket was removed, the asset sale step-downs from 100% were removed, and quarterly lender calls are now required, the source said.

As before, the term loan has a 25 bps step-down at 3.05x net first-lien leverage, a 0.75% Libor floor and an original issue discount of 99.

Recommitments were due at 11 a.m. ET on Tuesday and the term loan freed to trade later in the day, with levels quoted at 99¼ bid, par offered, another source added.

Goldman Sachs Bank USA, Citigroup Global Markets Inc., Barclays, Credit Suisse Securities (USA) LLC, Jefferies LLC, Morgan Stanley Senior Funding Inc. and MUFG are leading the deal that will fund a dividend.

SubCom, a Cerberus portfolio company, is an Eatontown, N.J.-based provider of turnkey subsea fiber optic networks with engineering, manufacturing, installation and maintenance capabilities.

ICP updated, breaks

ICP Group set the original issue discount on its fungible $200 million incremental term loan B at 98.5, the tight end of the 98 to 98.5 talk, a market source said.

The incremental term loan is priced at Libor plus 375 bps with a 0.75% Libor floor.

During the session, the incremental term loan began trading, with levels quoted at 98¾ bid, 99¼ offered, another source added.

JPMorgan Chase Bank is leading the deal that will be used for acquisition financing.

ICP, an Audax Private Equity portfolio company, is an Andover, Mass.-based manufacturer of specialty coatings, adhesives and sealants.

Pacific Dental modified

Pacific Dental Services trimmed the spread on its $600 million seven-year term loan B to Libor plus 350 bps from Libor plus 375 bps and adjusted the original issue discount to 99.25 from 99, a market source remarked.

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

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

Recommitments were due at 5 p.m. ET on Tuesday and allocations are expected on Wednesday, the source added.

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.

Logoplaste revised

Logoplaste firmed pricing on its $300 million seven-year covenant-lite term loan B at Libor plus 425 bps, the low end of the Libor plus 425 bps to 450 bps talk, and changed price talk on its €440 million seven-year covenant-lite term loan B to a range of Euribor plus 375 bps to 400 bps from a range of Euribor plus 400 bps to 425 bps, a market source said.

The U.S. term loan still has a 0.5% Libor floor and an original issue discount of 99.5, the euro term loan still has a 0% floor and a discount of 99.5, and both term loans still have leverage and environmental, social and governance steps in pricing and 101 soft call protection for six months.

Recommitment for the U.S. term loan were due at 5 p.m. ET on Tuesday and for the euro term loan are due at 6 a.m. ET on Wednesday, the source added.

The company is also getting an €80 million equivalent sterling pre-placed term loan.

Goldman Sachs is the sole active bookrunner on the U.S. loan. BNP Paribas and Goldman are the joint active bookrunners on the euro loan. Barclays, Credit Suisse, ING, Mizuho and Rabobank are passive bookrunners.

Logoplaste funding buyout

Proceeds from Logoplaste’s bank debt will be used to help fund Ontario Teachers’ Pension Plan Board’s acquisition of The Carlyle Group’s majority stake in the company, to refinance existing debt, for general corporate purposes and to pay transaction fees and expenses.

Current Logoplaste shareholders Filipe de Botton and Alexandre Relvas will retain their approximately 40% stake in the business.

Closing is subject to customary regulatory approvals.

Logoplaste is a Portugal-based designer and manufacturer of rigid plastic packaging solutions.

Wells Fargo accelerated

Wells Fargo Asset Management moved up the commitment deadline for its $1.24 billion seven-year covenant-lite first-lien term loan B to 5 p.m. ET on Wednesday from Thursday, according to a market source.

Allocations are expected on Thursday, the source added.

Talk on the term loan is Libor plus 350 bps with a 0.5% Libor floor, an original issue discount of 99, 101 soft call protection for six months, and a ticking fee of half the margin from days 31 to 60 and the full margin thereafter.

The asset management firm’s $1.41 billion of senior secured credit facilities (Ba2/BB-) also include a $170 million five-year revolver.

Morgan Stanley Senior Funding Inc., BofA Securities Inc., UBS Investment Bank, Wells Fargo Securities LLC, Barclays, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and RBC Capital Markets are leading the deal that will help fund the $2.1 billion buyout of the company by GTCR LLC and Reverence Capital Partners LP from Wells Fargo & Co., and pay related fees and expenses.

Closing is expected in the second half of this year, subject to regulatory approvals and contractual consents.

Resonetics moves deadline

Resonetics accelerated the commitment deadline for its $340 million seven-year covenant-lite first-lien term loan (B2/B-) to noon ET on Thursday from noon ET on Friday, a market source remarked.

Talk on the term loan is 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 company’s $490 million of credit facilities also include a $50 million revolver (B2/B-) and a $100 million privately placed second-lien term loan (Caa2/CCC).

Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, BMO Capital Markets and Antares Capital are leading the deal that will be used to refinance existing debt and fund cash to holdco.

Resonetics is a MedTech contract manufacturing organization specializing in micro-manufacturing and other highly technical capabilities.

TKC sets talk

In more happenings, TKC Holdings held its call on Tuesday and announced talk on its $1.125 billion seven-year first-lien term loan at Libor plus 475 bps to 500 bps with a 0.75% Libor floor, an original issue discount of 98.5 and 101 soft call protection for six months, according to a market source.

The company’s $1.175 billion of credit facilities (B2/B-) also include a $50 million five-year revolver.

Commitments are due at 2 p.m. ET on April 28, the source added.

Jefferies LLC is leading the deal that will be used with $500 million of senior unsecured notes to refinance the company’s existing capital structure.

TKC is a St. Louis-based provider of commissary, food service and related technology products to the corrections industry.

LaserShip proposed terms

LaserShip came out with talk on its $675 million seven-year first-lien term loan (B2/B-) and $205 million eight-year second-lien term loan (Caa2/CCC) shortly before its morning call began, a market source said.

Talk on the first-lien term loan is Libor plus 425 bps to 450 bps with two leverage-based step-downs and a 25 bps step-down following an initial public offering, a 0.75% Libor floor and an original issue discount of 99, and the second-lien term loan is talked at Libor plus 750 bps to 775 bps with a 25 bps step-down following an initial public offering, a 0.75% Libor floor and a discount of 98.5, the source continued.

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.

LaserShip’s $955 million senior secured deal also includes a $75 million five-year revolver (B2/B-).

Commitments are due at 11 a.m. ET on April 30, the source added.

Jefferies LLC, RBC Capital Markets, UBS Investment Bank, Goldman Sachs Bank USA and Natixis are leading the deal that will be used to help fund the buyout of the company by American Securities LLC.

LaserShip is a regional last mile parcel delivery provider.

Lonza guidance

Lonza Specialty Ingredients set talk on its $1.13 billion (CHF $1.028 billion equivalent) seven-year term loan B and a €725 million (CHF $806 million equivalent) seven-year term loan B with its morning call, according to a market source.

The U.S. term loan is talked at Libor plus 400 bps to 425 bps with a 0.75% Libor floor and an original issue discount of 99, and the euro term loan is talked at Euribor plus 375 bps to 400 bps with a 0% floor and a discount of 99.5, the source said.

Both term loans (B2/B) have 101 soft call protection for six months.

Commitments are due at noon ET on April 29.

Lonza lead banks

Credit Suisse is the physical bookrunner on Lonza Specialty’s U.S. term loan, and Deutsche Bank, UBS, RBC Capital Markets, UniCredit, Credit Agricole and Societe Generale are joint bookrunners. UBS, Deutsche Bank and RBC are the physical bookrunners on the euro term loan, and Credit Suisse, UniCredit, Credit Agricole and Societe Generale are joint bookrunners. Natwest, Bank of Ireland and Commerzbank are mandated lead arrangers.

The term loans will be used with CHF 318 million equivalent of other pari passu secured debt and CHF 513 million equivalent of unsecured debt to help fund the buyout of the company by Bain Capital Private Equity and Cinven from Lonza AG for a total enterprise value of CHF 4.2 billion as well as to pay for related fees and expenses.

Closing is expected in the second half of the year, subject to customary conditions.

Lonza Specialty is a Basel, Switzerland-based provider of specialty chemicals.

Insulet holds call

Insulet held its call in the afternoon, launching its $500 million seven-year senior secured covenant-lite first-lien term loan B (Ba3/B+) at talk of Libor plus 350 bps to 375 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 April 29, the source added.

The company also plans on getting a new senior secured revolver.

Morgan Stanley Senior Funding Inc. is the left lead on the deal that will be used for general corporate purposes, including to retire debt and/or to fund investments.

Insulet is an Acton, Mass.-based medical device company dedicated to simplifying life for people with diabetes and other conditions.

Aspect Software launches

Aspect Software released price talk on its $610 million seven-year first-lien term loan (B-) and $250 million eight-year second-lien term loan (CCC+) with its afternoon bank meeting, according to a market source.

Talk on the first-lien term loan is Libor plus 450 bps to 475 bps with a step-down upon an initial public offering, a 0.75% Libor floor and an original issue discount of 99, and talk on the second-lien term loan is Libor plus 850 bps with a step-down upon an initial public offering, a 0.75% Libor floor and a discount of 98, the source said.

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.

The company’s $935 million of senior secured credit facilities also include a $75 million five-year revolver (B-).

Commitments are due at noon ET on April 30, the source added.

Aspect being acquired

Aspect Software will use the new credit facilities to fund its acquisition and the acquisition of Noble Systems Corp. by Abry Partners LLC.

Jefferies LLC, Credit Suisse Securities (USA) LLC, TD Securities (USA) LLC, Macquarie Capital (USA) Inc., Truist and Apollo are leading the debt.

Aspect Software is a provider of mission critical contact center and workforce optimization software applications. Noble Systems is a provider of customer contact technology.

CPV price talk

CPV Maryland launched on its afternoon call its $375 million seven-year term loan B at talk of Libor plus 400 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

The company’s $475 million of credit facilities (Ba3/BB-) also include a $100 million 6.5-year revolver.

Commitments are due on May 3, 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.

Surgery OID guidance

Surgery Partners held a meeting at 2 p.m. ET and launched a fungible $125 million senior secured incremental covenant-lite first-lien term loan (B1) due August 2024 talked with an original issue discount of 99.27 to 99.5, a market source said.

Like the existing term loan, pricing on the incremental term loan is Libor plus 325 bps with a step-down to Libor plus 300 bps at 3.45x secured net leverage and a 1% Libor floor.

Commitments are due at noon ET on Friday.

Jefferies LLC, Barclays, JPMorgan Chase Bank, KKR Capital Markets and Macquarie Capital (USA) Inc. are leading the deal that will be used to refinance an existing non-fungible $119.1 million add-on first-lien term loan, and to pay applicable prepayment premiums and transaction related fees and expenses.

Closing is expected on Monday.

Surgery Partners is a Brentwood, Tenn.-based operator of short-stay surgical facilities.

Duravant readies deal

Duravant set a lender call for 8:30 a.m. ET on Thursday to launch a $235 million five-year revolver, a $175 million eight-year incremental second-lien term loan and a $570 million equivalent euro seven-year incremental first-lien term loan, according to a market source.

Jefferies LLC, Credit Suisse, Societe Generale, Citigroup Global Markets Inc., KeyBanc Capital Markets, MUFG and Antares Capital are leading the deal, with Jefferies the left lead on the second-lien term loan and Credit Suisse listed left on the first-lien term loan. Jefferies is the agent.

The facilities will be used to fund the acquisition of Foodmate, a manufacturer of poultry processing equipment dual-headquartered in Numansdorp, the Netherlands and Ball Ground, Ga., and to replace an existing $160 million revolver.

Duravant is a Downers Grove, Ill.-based engineered equipment and automation solutions provider to the food processing, packaging and material handling sectors.

Aristocrat joins calendar

Aristocrat Leisure scheduled a lender call for 4 p.m. ET on Thursday to launch a $2.35 billion term loan B due May 2028, a market source said.

Commitments are due at 5 p.m. ET on April 29, the source added.

UBS Investment Bank is the left lead on the deal that will be used to amend and extend an existing $1.85 billion term loan B and the remaining $500 million fungible add-on being placed will be used to refinance an existing $499 million side-car term loan B.

Aristocrat Leisure is a North Ryde, Australia-based provider of gaming solutions.

PQ Performance on deck

PQ Performance Chemicals will hold a lender call at 11 a.m. ET on Wednesday to launch a $750 million first-lien term loan (B1/B+), according to a market source.

Goldman Sachs Bank USA, Barclays, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., RBC Capital Markets, BMO Capital Markets, KeyBanc Capital Markets, Macquarie Capital (USA) Inc. and BNP Paribas Securities Corp. are leading the deal that will be used with equity to fund the buyout of the company by a partnership established by Koch Minerals & Trading LLC and Cerberus Capital Management LP from PQ Group Holdings Inc. for $1.1 billion.

Closing is expected this year.

PQ Performance Chemicals is a producer of sodium silicates, specialty silicas and zeolites and supports a broad range of end uses, including personal and industrial cleaning products, fuel efficient tires, surface coatings, and food and beverage products.

Consilio coming soon

Consilio scheduled a lender call for 2 p.m. ET on Wednesday to launch a $1.01 billion seven-year covenant-lite first-lien term loan that has 101 soft call protection for six months, a market source remarked.

Commitments are due at noon ET on April 30, the source added.

The company is also getting a $300 million privately placed second-lien term loan.

Credit Suisse Securities (USA) LLC, Stone Point, BofA Securities Inc., KKR Capital Markets, Truist, Blackstone and Goldman Sachs Bank USA are leading the deal, which will be used to help fund the acquisitions of Consilio from GI Partners and Xact Data Discovery from JLL Partners by Stone Point Capital LLC and Aquiline Capital Partners LLC, and merger of the two companies.

Closing is subject to customary conditions, including regulatory approval.

Consilio is a Washington, D.C.-based provider of eDiscovery, document review, risk management and legal consulting services. Xact Data is a Mission, Kan.-based provider of eDiscovery, data management and managed review services.

Press Ganey readies loan

Press Ganey will hold a lender call at 11 a.m. ET on Wednesday to launch a fungible $180 million incremental term loan B due July 25, 2026, a market source said.

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

Commitments are due at noon ET on April 28.

Barclays, Goldman Sachs Bank USA, BMO Capital Markets and Deutsche Bank Securities Inc. are leading the deal that will be used to help fund the acquisition of a healthcare analytics provider for the Payer vertical.

Press Ganey is a South Bend, Ind.-based provider of patient experience analytics and performance improvement solutions to healthcare organizations, delivered through a proprietary software suite.

Mavis timing emerges

Mavis Tire Express Services set a bank meeting for 11 a.m. ET on Wednesday to launch its previously announced $2.115 billion of credit facilities, according to a market source. The credit facilities were originally scheduled to launch last week, but then the meeting was postponed to sometime this week.

The facilities consist of a $200 million five-year revolver and a $1.915 billion seven-year senior secured first-lien term loan.

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

Jefferies LLC, Apollo, Ares, BofA Securities Inc., KKR Capital Markets, Blackstone, Golub Capital and Stifel are leading the deal that will be used with $720 million of senior notes to help fund the buyout of the company by an investor group led by BayPine LP in partnership with TSG Consumer Partners LP. Golden Gate Capital, Mavis’ current lead financial partner, will retain a minority interest in the company.

Closing is expected this quarter.

Mavis is a Millwood, N.Y.-based tire retailer and automotive aftermarket service provider.

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