Element, BGIS, Milk Specialties, Artera, K-Mac, WCG break; ITT, Gibson, Cano Health revised

By Sara Rosenberg

New York, June 23 – Element Solutions Inc. set the original issue discount on its tack-on term loan B at the tight end of guidance, and BGIS (Brookfield Global Integrated Solutions) finalized the issue price on its first-lien term loans, and then both of these deals freed to trade on Wednesday.

Also, Milk Specialties Co. accelerated the commitment deadline for its term loans before breaking for trading, and deals from Artera Services LLC, K-Mac Holdings Corp. and WCG Purchaser Corp. surfaced in the secondary market as well.

In more happenings, International-Matex Tank Terminals (ITT Holdings LLC) lowered the spread on its term loan, Gibson Brands Inc. increased the size of its term loan B and trimmed pricing, Cano Health LLC modified the original issue discount on its incremental first-lien term loan, and Kantar moved up the commitment deadline for its first-lien term loan B.

Furthermore, Aveanna Healthcare LLC, Resource Label Group (RLG Holdings LLC), Topps Co. Inc. and AssuredPartners Inc. released price talk with launch, and Shutterfly LLC and Bingo Industries joined this week’s primary calendar.

Element firms, frees

Element Solutions set the original issue discount on its fungible $400 million tack-on senior secured term loan B (Ba1/BBB-) due Jan. 31, 2026 at 99.5, the tight end of the 99.03 to 99.5 talk, a market source said.

Pricing on the tack-on loan is Libor plus 200 basis points with a 0% Libor floor, in line with pricing on the company’s existing $733 million term loan B, and all of the debt is getting 101 soft call protection for six months.

Ticking fees on the tack-on term loan are half the margin from days 46 to 90 and the full margin thereafter.

On Wednesday, the tack-on term loan freed to trade, with levels quoted at 99¾ bid, par 1/8 offered, another source added.

Goldman Sachs Bank USA, Citigroup Global Markets Inc., JPMorgan Chase Bank, UBS Investment Bank, Barclays, BofA Securities Inc. and Deutsche Bank Securities Inc. are leading the deal. Barclays is the agent.

The loan will be used with cash on hand to fund the acquisition of Coventya Holding SAS for about €420 million, including the assumption or repayment of debt, subject to certain adjustments.

Closing is expected late in the third quarter or in the fourth quarter, subject to customary conditions.

Element Solutions is a Fort Lauderdale, Fla.-based diversified specialty chemicals company. Coventya is a France-based provider of specialty chemicals for the surface finishing industry.

BGIS updated, breaks

BGIS firmed the original issue discount on its fungible $220 million add-on senior secured covenant-lite first-lien term loan due May 31, 2026 and $25 million delayed-draw covenant-lite term loan due May 31, 2026 at 99.03, within initial talk in the range of 99 to 99.5, according to a market source.

Also, the delayed-draw availability period was changed to 11 months from 24 months, the source said.

Pricing on the term loan debt (B2/B) is Libor plus 375 bps with a 0% Libor floor, in line with pricing on the existing term loan due May 2026, the term loan has 101 soft call protection for six months, and the delayed-draw term loan has a ticking fee of half the margin from days 61 to 120 and the full margin thereafter.

During the session, the term loan debt began trading and levels were quoted at 99¼ bid, 99¾ offered, another source added.

Citigroup Global Markets Inc., Morgan Stanley Senior Funding Inc., BMO Capital Markets, TD Securities (USA) LLC, CIBC, MUFG and Shinhan are leading the deal that will be used to pay a C$250 million dividend to shareholders and fund $8 million of the purchase price for three strategic tuck-in acquisitions.

BGIS, an integrated facilities management company, expects to close on the loans on Friday.

Milk accelerated, trades

Milk Specialties moved up the commitment deadline for its fungible $80 million incremental first-lien term loan due August 2025 and extension of its existing $439 million first-lien term loan to August 2025 from August 2023 to 1 p.m. ET on Wednesday from 5 p.m. ET on Wednesday, a market source remarked.

Pricing on the term loans is Libor plus 400 bps with a 1% Libor floor and the debt is getting 101 soft call protection for six months. The incremental first-lien term loan has an original issue discount of 99.5 and the extension has a 50 bps consent fee.

In the afternoon, the term loan debt broke for trading, with levels quoted at 99¾ bid, par ¼ offered, another source added.

Credit Suisse Securities (USA) LLC is the lead bank on the deal.

The incremental first-lien term loan will be used with a $100 million privately placed second-lien term loan and cash on hand to fund a shareholder distribution.

Milk Specialties is an Eden Prairie, Minn.-based producer of dairy-based specialty functional ingredients.

Artera hits secondary

Artera Services’ $775 million incremental first-lien term loan (B3/B-) due March 6, 2025 freed to trade too, with levels quoted at 99½ bid, par offered, according to a market source.

Pricing on the incremental term loan is Libor plus 350 bps with a 1% Libor floor and it was sold at an original issue discount of 99.25. The debt has 101 soft call protection for six months.

During syndication, the spread on the term loan firmed at the low end of the Libor plus 350 bps to 375 bps talk, and the discount firmed at the midpoint of revised talk of 99 to 99.5 and tighter than initial talk of 99.

UBS Investment Bank, BofA Securities Inc., BNP Paribas Securities Corp., Deutsche Bank Securities Inc., Mizuho, BMO Capital Markets, MUFG, Citizens Bank, Antares and Jefferies LLC are leading the deal that will be used to fund the acquisitions of Feeney Utility Services Group and K.R. Swerdfeger Construction.

Artera, a portfolio company of Clayton Dubilier & Rice, is an Atlanta-based provider of integrated infrastructure services to the natural gas and electric utility industries. Feeney is a Boston-based provider of maintenance services to natural gas utilities. K.R. Swerdfeger is a Pueblo West, Colo.-based heavy civil contractor.

K-Mac breaks

K-Mac Holdings’ bank debt also emerged in the secondary market, with the $480 million first-lien term loan (B2/B-) quoted at par bid, par ½ offered and the $105 million second-lien term loan (Caa2/CCC) quoted at 101 bid, 102 offered, a market source said.

Pricing on the first-lien term loan is Libor plus 350 bps with a 0.5% Libor floor and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months.

The second-lien term loan is priced at Libor plus 675 bps with a 0.5% Libor floor and was issued at a discount of 99.5. This tranche has hard call protection of 102 in year one and 101 in year two.

During syndication, pricing on the first-lien loan firmed at the low end of the Libor plus 350 bps to 375 bps talk and pricing on the second-lien loan finalized at the low end of the Libor plus 675 bps to 700 bps talk.

The company’s $645 million of credit facilities also include a $60 million revolver (B2/B-).

BMO Capital Markets, Goldman Sachs Bank USA, KKR Capital Markets and RBC Capital Markets are leading the deal that will be used to help fund the buyout of the company by Mubadala Capital.

K-Mac is a Fort Smith, Ark.-based owner and operator of Taco Bell restaurants.

WCG starts trading

WCG Purchaser’s fungible $200 million incremental first-lien term loan due Jan. 8, 2027 broke as well, with levels quoted at 99 7/8 bid, par 3/8 offered, according to a market source.

Pricing on the incremental term loan is Libor plus 400 bps with a 1% Libor floor and it was sold at an original issue discount of 99.75.

During syndication, the discount on the incremental term loan was changed from talk in the range of 99 to 99.5.

Barclays, Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc., BofA Securities Inc., Jefferies LLC, BMO Capital Markets, UBS Investment Bank, HSBC Securities (USA) Inc. and Golub are leading the deal that will be used to fund an acquisition.

WCG is Princeton, N.J.-based provider of clinical trial optimization solutions.

International-Matex tweaked

Back in the primary market, International-Matex trimmed pricing on its $650 million seven-year senior secured term loan to Libor plus 275 bps from talk in the range of Libor plus 300 bps to 325 bps, a market source remarked.

As before, the term loan has a 0.5% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

The company’s $950 million of credit facilities (Ba2/BB) also include a $300 million five-year revolver.

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

Jefferies LLC, Wells Fargo Securities LLC, CIBC, First Horizon, MUFG and Regions Bank are leading the deal that will be used with $1.22 billion of senior notes to refinance existing debt and fund a distribution.

International-Matex is a New Orleans-based handler and storer of bulk liquid products.

Gibson revised

Gibson Brands lifted its seven-year term loan B to $300 million from $250 million and cut pricing to Libor plus 500 bps from Libor plus 550 bps, according to a market source.

The 0.75% Libor floor, original issue discount of 99 and 101 soft call protection for six months on the term loan were unchanged.

Recommitments are due at noon ET on Thursday, with allocations expected later that same day, the source added.

KKR Capital Markets and JPMorgan Chase Bank are leading the deal that will be used to refinance existing debt and fund a dividend.

Gibson Brands is a Nashville-based maker of musical instruments and audio equipment.

Cano tightens OID

Cano Health revised the original issue discount on its fungible $295 million incremental covenant-lite first-lien term loan (B2/B) due November 2027 to 99.75 from 99.5, a market source said.

Like the existing term loan, the incremental term loan is priced at Libor plus 425 bps with a 0.75% Libor floor. The spread stepped-down from Libor plus 450 bps upon the receipt of B2/B corporate family ratings.

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

Commitments continued to be due at 5 p.m. ET on Wednesday, the source added.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to help fund the acquisition of University Health Care, a private medical provider, for $540 million in cash and $60 million in equity.

Pro forma for the transaction, the first-lien term loan will total $549 million.

Cano Health is a Miami-based tech-powered, value-based care delivery platform.

Kantar revises timing

Kantar accelerated the commitment deadline for its $500 million first-lien term loan B (B2/B-) due December 2026 to the close of business on Thursday for U.S. accounts and 8 a.m. ET on Friday for European accounts from Tuesday, a market source said.

Talk on the term loan is Libor plus 500 bps with a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc., BofA Securities Inc., Barclays, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Jefferies LLC are leading the deal that will be used with $400 million of senior secured notes, a $350 million shareholder equity contribution and $150 million of cash on the balance sheet to fund the acquisition of Numerator.

Closing is expected by the third quarter, subject to the relevant legal and regulatory processes.

Pro forma for the transaction, senior secured net debt is expected to be 3.9x and secured net debt is expected to be 4.5x.

Kantar is a London-based data analytics and brand consulting group. Numerator is a Chicago-based, tech-driven consumer and market intelligence company.

Aveanna sets talk

Aveanna Healthcare held its call on Wednesday afternoon and announced price talk on its $1.06 billion of senior secured term loans (B2/B-) at Libor plus 375 bps to 400 bps with a 0.5% Libor floor and an original issue discount of 99, according to a market source.

The debt is split between an $860 million seven-year term loan B and a $200 million delayed-draw term loan B with a 24-month availability period.

The term loan has 101 soft call protection for six months, and delayed-draw term loan ticking fees are half the margin from days 46 to 90 and the full margin thereafter.

Original issue discount on the delayed-draw term loan is payable at funding.

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

Barclays is the left lead on the deal that will be used to refinance the company’s existing capital structure.

Aveanna Healthcare is an Atlanta-based home health care company.

Resource Label guidance

Resource Label Group launched on its afternoon call its $405 million seven-year first-lien term loan and $90 million delayed-draw first-lien term loan at talk of Libor plus 425 bps to 450 bps with a 0.75% Libor floor and an original issue discount of 99, and its $110 million eight-year second-lien term loan and $15 million delayed-draw second-lien term loan at talk of Libor plus 750 bps to 775 bps with a 0.75% Libor floor and a discount of 98.5, a market source remarked.

The first-lien term loan (B2/B-) has 101 soft call protection for six months, and the second-lien term loan (Caa2/CCC) has call protection of 102 in year one and 101 in year two.

Delayed draw ticking fees are half the margin from days 46 to 90 and the full margin thereafter.

The company’s $680 million of credit facilities also include a $60 million revolver.

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

Credit Suisse Securities (USA) LLC, Jefferies LLC, BMO Capital Markets, Nomura and UBS Investment Bank are leading the deal that will be used to help fund the buyout of the company by Ares.

Resource Label Group is a Franklin, Tenn.-based provider of custom label design and printing.

Topps proposed terms

Topps came out with talk of Libor plus 350 bps to 375 bps with a 0.5% Libor floor and an original issue discount of 99 on its $200 million seven-year covenant-lite first-lien term loan (B1) that launched with a call in the morning, according to a market source.

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

Commitments are due at noon ET on July 7, the source added.

Deutsche Bank Securities Inc. is leading the deal, which will be used to refinance existing credit facilities.

Topps is a sports and entertainment company with a portfolio of physical trading cards, interactive apps, gifting/payment solutions and confectionary products.

AssuredPartners launches

AssuredPartners held a lender call at 1 p.m. ET launching a fungible $150 million add-on term loan and a repricing of its existing $297 million incremental term loan due February 2027 at talk of Libor plus 350 bps to 375 bps with a 0.5% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months, a market source said.

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

JPMorgan Chase Bank is leading the deal.

The add-on term loan will be used to fund acquisitions and the repricing will take the existing incremental term loan down from Libor plus 450 bps with a 1% Libor floor.

AssuredPartners is a Lake Mary, Fla.-based provider of property and casualty and employee benefits insurance brokerage services.

Shutterfly on deck

Shutterfly will hold a lender call at 11 a.m. ET on Thursday to launch a new senior secured term loan due Sept. 25, 2026, according to a market source.

Barclays is the left lead on the deal that will be used to fund the acquisition of Spoonflower, a Durham, N.C.-based marketplace connecting makers and consumers with artists, for about $225 million.

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

Apollo Global Management LLC is the sponsor.

Shutterfly is a Redwood City, Calif.-based manufacturer and seller of customizable photo-based products and services.

Bingo coming soon

Bingo Industries scheduled a lender call for 1 p.m. ET on Thursday to launch A$925 million equivalent of term loans and will hold a question-and-answer session at 11:30 a.m. ET on Monday, a market source remarked.

The debt consists of an A$825 million equivalent (about $639 million) first-lien term loan and an A$100 million equivalent (about $77 million) delayed-draw term loan, the source said. There will be a minimum roughly $450 million tranche split pro rata across the funded and delayed-draw term loan.

Goldman Sachs, Credit Suisse and Jefferies LLC are leading the deal that will be used with equity to fund the acquisition of the company by Macquarie Infrastructure and Real Assets for either A$3.45 cash per share, or a mixed cash and unlisted scrip alternative.

Bingo is a fully integrated recycling company with operations in Australia’s two largest waste markets: New South Wales (Sydney) and Victoria (Melbourne).

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