PrimeSource breaks; Atlantic Aviation tweaked; Whatabrands, McGraw-Hill and more set talk

By Sara Rosenberg

New York, July 12 – PrimeSource Building Products Inc. (Park River Holdings Inc.) saw its incremental first-lien term loan surface in the secondary market on Monday and the debt was bid in line with its original issue discount.

Moving to the primary market, Atlantic Aviation set the spread on its first-lien term loan at the low end of guidance and tightened the issue price, and reduced the spread on its second-lien term loan.

Also, Whatabrands LLC (Whataburger), McGraw-Hill Education Inc., Worldwide Express LLC/GlobalTranz Enterprises LLC, Anticimex and Resolute Investment Managers released price talk with launch.

In addition, Rough Country, Apex Group, Madison IAQ, Sitel Group and Viad Corp. joined this week’s primary calendar.

PrimeSource frees up

PrimeSource Building Products’ fungible $415 million incremental covenant-lite first-lien term loan due December 2027 broke for trading on Monday, with levels quoted at 99 bid, 99¼ offered, according to a market source.

Pricing on the incremental term loan is Libor plus 325 basis points with a 0.75% Libor floor and it was sold at an original issue discount of 99.

Deutsche Bank Securities Inc. is leading the deal that will be used to fund the acquisition of Wolf Home Products from Tenex Capital Management.

PrimeSource, a Clearlake Capital Group LP portfolio company, is an Irving, Tex.-based provider of specialty branded residential building products. Wolf is a York, Pa.-based designer and supplier of cabinetry, vanities, countertops, decking and railing, among other residential building products.

Atlantic Aviation revised

Switching over to the primary market, Atlantic Aviation firmed pricing on its $1.3 billion seven-year first-lien term loan (B1/B+) at Libor plus 300 bps, the low end of the Libor plus 300 bps to 325 bps talk, and changed the original issue discount to 99.75 from 99.5, a market source remarked.

Furthermore, pricing on the company’s $350 million eight-year second-lien term loan (Caa1/CCC+) was trimmed to Libor plus 575 bps from talk in the range of Libor plus 600 bps to 625 bps, the source continued.

The first-lien term loan still has a 0.5% Libor floor and 101 soft call protection for six months, and the second-lien term loan still has a 0.5% Libor floor, a discount of 99.5 and call protection of 102 in year one and 101 in year two.

The company’s $1.875 billion of credit facilities also include a $225 million five-year revolver (B1/B+).

Commitments are due at 4 p.m. ET on Tuesday, accelerated from noon ET on Friday, the source added.

Atlantic being acquired

Atlantic Aviation will use its new credit facilities to help fund its buyout by KKR from Macquarie Infrastructure Corp. for $4.475 billion in cash and assumed debt and reorganization obligations.

Jefferies LLC, KKR Capital Markets, Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc., HSBC Securities (USA) Inc., Mizuho, BNP Paribas Securities Corp., ING, Societe Generale, SMBC and Wells Fargo Securities LLC are leading the deal, with Jefferies the left lead on the first-lien term loan and KKR the left lead on the second-lien term loan.

Closing is expected in the fourth quarter, subject to customary regulatory approvals and approval from Macquarie Infrastructure shareholders.

Atlantic Aviation is an operator of fixed base operations, providing a full suite of critical services to the private aviation sector.

Whatabrands sets talk

Whatabrands held its lender call on Monday morning and announced talk on its $2.3 billion seven-year covenant-lite first-lien term loan B at Libor plus 350 bps with leverage-based steps, 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.

The company’s $2.5 billion of credit facilities (B2/B) also include a $200 million revolver.

Commitments are due at noon ET on July 21, the source added.

Morgan Stanley Senior Funding Inc., BofA Securities Inc., JPMorgan Chase Bank and UBS Investment Bank are leading the deal that will be used to refinance an existing term loan B and facilitate a broader recapitalization.

Whatabrands is a San Antonio-based restaurant company.

McGraw-Hill holds call

McGraw-Hill launched on its morning call its $1.15 billion term loan B (B2/B-) at talk of Libor plus 425 bps to 450 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 said.

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

BofA Securities Inc., BMO Capital Markets, Macquarie Capital (USA) Inc., BNP Paribas Securities Corp., Deutsche Bank Securities Inc., PNC Bank and UBS Investment Bank are leading the deal that will be used to help fund the buyout of the company by Platinum Equity from Apollo Global Management Inc. for about $4.5 billion.

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

McGraw-Hill is a New York-based learning science company.

Worldwide/GlobalTranz launches

Worldwide Express/GlobalTranz disclosed price talk on its $1.275 billion seven-year first-lien term loan and $300 million eight-year second-lien term loan with its morning, according to a market source.

Talk on the first-lien 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, and talk on the second-lien term loan is Libor plus 700 bps to 725 bps with a 0.75% Libor floor, and a discount of 98.5 and hard call protection of 102 in year one and 101 in year two, the source said.

Of the total second-lien term loan amount, $125 million has been pre-placed.

Commitments are due on July 22, the source added.

Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC, UBS Investment Bank, Deutsche Bank Securities Inc., Barclays, Citigroup Global Markets Inc., Jefferies LLC, Morgan Stanley Senior Funding Inc. and CPPIB are leading the deal.

Worldwide/GlobalTranz merging

The Worldwide Express/GlobalTranz term loans will be used with sponsor backing and significant equity rollover to support the combination of WorldWide Express and GlobalTranz.

The transaction is sponsored by a consortium led by CVC Capital Partners as well as GlobalTranz’s current lead investors, Providence Equity Partners and PSG. Current Worldwide Express lead investor Ridgemont Equity Partners, along with both Worldwide Express and GlobalTranz management, will also retain a significant stake in the combined entity.

Closing is expected in the third quarter.

Dallas-based Worldwide Express and Scottsdale, Ariz.-based GlobalTranz are providers of technology-driven third-party logistics.

Anticimex guidance

Anticimex released price talk on its roughly $815 million seven-year covenant-lite term loan B-1, roughly €685 million seven-year covenant-lite term loan B-2 and roughly A$315 million seven-year covenant-lite term loan B-3 in connection with its call in the morning, a market source remarked.

The U.S. term loan is talked at Libor plus 375 bps to 400 bps with a 0.5% Libor floor and an original issue discount of 99.5, the euro term loan is talked at Euribor plus 375 bps to 400 bps with a 0% floor and a discount of 99.5, and the Australian term loan is talked at BBSY plus 425 bps with a 0.5% floor and a discount in the 99 area, the source added.

All of the term loans (B) have 101 soft call protection for six months.

The three term loans total SEK16 billion equivalent.

Commitments are due at 9:30 a.m. ET on July 21.

Anticimex lead banks

Morgan Stanley is the left lead bookrunner on Anticimex’s U.S. and Australian term loans. Deutsche Bank is the left lead bookrunner on the euro term loan. Nordea and SEB are other euro physical bookrunners. DNB, Goldman Sachs, Swedbank, BofA Securities; BNP Paribas, Danske Bank and Mizuho are bookrunners.

The new loans will be used to fund EQT Future’s acquisition of AnticimexNew TopholdingAB and refinance some existing debt.

Anticimex is a Stockholm, Sweden-based preventive pest control company.

Resolute proposed OID

Resolute Investment Managers launched on its afternoon call its fungible $275 million add-on first-lien term loan B (Ba3/B+) due April 2024 with original issue discount talk of 99.5, a market source said.

Price talk on the add-on term loan is Libor plus 425 bps with a 1% Libor floor.

Commitments are due at noon ET on July 22, the source added.

RBC Capital Markets, Barclays and BMO Capital Markets are leading the deal that will be used fund a dividend to shareholders.

With this transaction, the company will increase pricing on its existing $378 million term loan B to Libor plus 425 bps with a 1% Libor floor from Libor plus 375 bps with a 1% Libor floor.

In addition, second-lien consenting lenders will get 12.5 bps amendment fee to allow for the onetime restricted payment.

Resolute Investment, a Kelso & Co. portfolio company, is an Irving, Tex.-based diversified asset management platform that partners with investment managers on both an affiliated and unaffiliated basis.

Rough Country on deck

Rough Country set a lender call for 11 a.m. ET on Wednesday to launch $810 million of credit facilities, according to a market source.

The facilities consist of a $50 million revolver, a $555 million covenant-lite first-lien term loan and a $205 million covenant-lite second-lien term loan, the source said.

Golub Capital and Jefferies LLC are leading the deal that will be used to help fund the buyout of the company by TSG Consumer Partners from Gridiron Capital. Upon closing, Gridiron Capital and Rough Country management will remain significant investors in the company.

Closing is expected early in the third quarter.

Rough Country is a Dyersburg, Tenn.-based provider of aftermarket performance-enhancing products and accessories to the truck, Jeep and SUV enthusiast market.

Apex readies deal

Apex Group will hold a lender call at 10 a.m. ET on Tuesday to launch a $1.392 billion equivalent U.S. and euro term loan B (B1/B-), a market source remarked.

Talk on the U.S. tranche is Libor plus 375 bps with a 0.5% Libor floor and an original issue discount of 99.5, and talk on the euro tranche is Euribor plus 400 bps to 425 bps with a 0% floor and a discount of 99.5, the source continued.

The term loans have 101 soft call protection for six months and a minimum tranche size each of $500 million equivalent.

Commitments are due at 5 p.m. ET on July 22, the source added.

JPMorgan Chase Bank, Goldman Sachs, BofA Securities, Morgan Stanley, KKR Capital Markets, Deutsche Bank, Credit Suisse, Nomura and RBC are leading the deal that will be used to refinance existing debt and fund acquisitions.

Apex is a provider of fund administration services, financial and corporate solutions.

Madison IAQ joins calendar

Madison IAQ scheduled a lender call for 11 a.m. ET on Tuesday to launch a $715 million incremental first-lien term loan, according to a market source.

Goldman Sachs Bank USA is leading the deal that will be used with $75 million of cash from the balance sheet and $320 million of new equity from Madison Industries to fund the acquisition of Big Ass Fans.

Madison IAQ is a provider of indoor air quality solutions. Big Ass Fans is a Lexington, Ky.-based producer of high volume, low speed and connected fans.

Sitel coming soon

Sitel Group set a lender call for Tuesday to launch a $1.4 billion seven-year covenant-lite term loan and a €1 billion seven-year covenant-lite term loan, a market source said.

Commitments are due at noon ET on July 27, the source added.

BNP Paribas Securities Corp. and Barclays are leading the deal that will be used to help fund the acquisition of Sykes Enterprises Inc. for about $2.2 billion.

Closing is expected in the second half of this year, subject to Sykes’ shareholder approval, regulatory approval and other customary conditions.

Sitel is a Miami-based provider of customer experience products and solutions. Sykes is a Tampa, Fla.-based provider of customer experience management services, multichannel demand generation and digital transformation.

Viad plans call

Viad scheduled a lender call for 11 a.m. ET on Tuesday to launch a $400 million term loan B (B+), according to a market source.

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

BofA Securities Inc., BMO Capital Markets, KeyBanc Capital Markets and Truist are leading the deal that will be used to repay revolver borrowings and for general corporate purposes.

Viad is a Phoenix-based provider of experiential leisure travel and live events and marketing experiences.

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