Air Canada, SVP, Lereta, Acrisure, Ontic, Flow Control break; Atlantic Broadband revised

By Sara Rosenberg

New York, July 27 – Air Canada upsized its term loan B, reduced pricing and set the original issue discount at the tight side of guidance, SVP Worldwide firmed the issue price on its term loan B at the middle of revised talk, and Lereta LLC set the spread on its term loan B at the low end of guidance, and then these deals freed to trade on Tuesday.

Also, before breaking for trading, Acrisure LLC finalized pricing on its incremental term loan B at the high end of talk, Ontic (Bleriot US Bidco Inc.) modified the issue price on its incremental first-lien term loan, and Flow Control Group (FCG Acquisitions Inc.) carved out a funded piece from its previously all delayed-draw first-lien term loan.

In more happenings, Atlantic Broadband (Cogeco Financing 2 LP) trimmed pricing on its incremental first-lien term loan B and adjusted the original issue discount, and Sitel Group firmed the spread on its U.S. and euro term loans at the wide end of talk but tightened the original issue discount on the debt.

Additionally, RxBenefits Inc. (RXB Holdings Inc.) lowered the spread on its first-lien term loan and changed the issue price on the incremental portion, and Curia Global Inc. moved some funds between its first- and second-lien term loans.

Furthermore, Sovos Compliance LLC and Hyperion Materials & Technologies accelerated the commitment deadlines for their term loan transactions, Bally’s Corp. released price talk on its term loan B with launch, and Parexel joined this week’s new issue calendar.

Air Canada tweaked, frees

Air Canada upsized its senior secured term loan B due 2028 to $2.3 billion from $2 billion, changed price talk to a range of Libor plus 350 basis points to 375 bps from Libor plus 400 bps, before firming at Libor plus 350 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 term loan B still has a 0.75% Libor floor and call protection of non-callable for one year, then at 102 in year two and par thereafter.

On Tuesday, the term loan B began trading, with levels quoted at par ¼ bid, par ¾ offered, another source added.

JPMorgan Chase Bank, Citigroup Global Markets Inc. and TD Securities (USA) LLC are leading the loan that will help refinance the company’s $600 million revolver due 2024, $580 million term loan B due 2023, C$200 million 4¾% senior secured first-lien notes due 2023 and C$840 million senior secured second-lien notes due 2024.

The Montreal-based airline company is also getting a $600 million revolver due 2025, $1.2 billion of senior secured notes and C$2 billion of senior secured notes for the refinancing.

Closing is expected in the third week of August.

SVP sets OID, breaks

SVP Worldwide firmed the original issue discount on its $370 million seven-year term loan B at 93, the midpoint of revised talk of 92 to 94 and wide of initial talk of 98, according to a market source.

The term loan is priced at Libor plus 675 bps with a 0.75% Libor floor, and is non-callable for one year, then has a hard call of 103 in year two and 101 in year three.

Previously in syndication, the term loan was upsized from $350 million, pricing was lifted from talk in the range of Libor plus 550 bps to 575 bps, and the call protection was modified from a 101 soft call for six months.

In the morning, the term loan broke for trading, with levels quoted at 93½ bid, 94½ offered, a trader added.

BofA Securities Inc. is leading the deal that will be used to help fund the buyout of the company by Platinum Equity and the funds from the recent upsizing will be used to cover the original issue discount.

Closing is expected in the third quarter.

SVP is a Nashville-based sewing machine company.

Lereta updated, trades

Lereta finalized pricing on its $250 million seven-year term loan B at Libor plus 525 bps, the low end of the Libor plus 525 bps to 550 bps talk, a market source remarked.

As before, the term loan has a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

The company’s $280 million of credit facilities (B2/B-) also include a $30 million five-year revolver.

During the session, the term loan B made its way into the secondary market, with levels quoted at 99½ bid, par ½ offered, another source added.

Truist Securities is leading the deal that will be used to help fund the buyout of the company by Flexpoint Ford and Vestar Capital Partners from equity holders, including Tarsadia Investments LLC.

Closing is expected on Friday.

Lereta is a Pomona, Calif.-based provider of real estate tax and flood services for mortgage servicers.

Acrisure firms, frees up

Acrisure set the spread on its non-fungible $500 million incremental term loan B (B2/B) at Libor plus 375 bps, the high end of the Libor plus 350 bps to 375 bps talk, and left the 0.5% Libor floor, original issue discount of 99 and 101 soft call protection for six months unchanged, a market source said.

The term loan broke for trading during the session, with levels quoted at 99 1/8 bid, 99 5/8 offered, another source added.

JPMorgan Chase Bank is leading the deal that will be used with $500 million of notes to fund acquisitions under signed letters of intent, fund future acquisitions, and pay related fees and expenses.

Acrisure is a Caledonia, Mich.-based insurance brokerage.

Ontic revised, breaks

Ontic tightened the issue price on its fungible $140 million incremental covenant-lite first-lien term loan (B2/B) due October 2026 to par from talk in the range of 99.5 to 99.75, according to a market source.

Like the existing term loan, the incremental term loan is priced at Libor plus 400 bps with a 0% Libor floor and has 101 soft call protection through Aug. 16.

Recommitments were due at 11:30 a.m. ET on Tuesday and the incremental term loan began trading in the afternoon, with levels quoted at par bid, par 3/8 offered, another source added.

Nomura Securities and Macquarie Capital (USA) Inc. are leading the deal that will be used to repay an existing second-lien term loan and pay fees and expenses.

Closing is expected during the week of Aug. 2.

Ontic is a provider of OEM-licensed parts and aftermarket services for mature aerospace and defense platforms.

Flow Control restructures

Flow Control split its $120 million first-lien term loan (B2/B-) due April 1, 2028 into a $35 million funded piece and an $85 million 18-month delayed-draw piece, as opposed to having the whole amount as delayed-draw, a market source said.

Pricing on the first-lien term loan debt is Libor plus 375 bps with a 25 bps step-down at 5.9x total net leverage and upon an initial public offering, and a 0.5% Libor floor, and pricing on the company’s fungible upon draw $50 million 18-month delayed-draw second-lien term loan (Caa2/CCC) due April 1, 2029 delayed-draw second-lien term loan is Libor plus 675 bps with a 25 bps step-down upon an initial public offering and a 0.5% Libor floor, both in line with existing term loan pricing.

As before, the first-lien term loan debt has an original issue discount of 99.5 and 101 soft call protection until Oct. 1, and the delayed-draw second-lien term loan has a discount of 99 and the same 102, 101 call protection as the existing second-lien term loan.

Delayed-draw ticking fees remained at half the spread from days 61 to 120 and the full spread thereafter.

Flow Control hits secondary

Recommitments for Flow Control’s bank debt were due at noon ET on Tuesday and the first-lien term loan debt broke for trading in the afternoon, with levels quoted at 99 5/8 bid, par 1/8 offered, another source added.

Credit Suisse Securities (USA) LLC, UBS Investment Bank, KKR Capital Markets and SPC are leading the deal, with Credit Suisse the left lead on the first-lien loan and UBS the left lead on the second-lien loan.

The term loans will be used for working capital and other general corporate purposes.

Flow Control is a Charlotte, N.C.-based distributor and technical adviser for mission critical flow control and industrial automation products and related services.

Atlantic trims pricing

Atlantic Broadband reduced pricing on its $900 million seven-year incremental senior secured first-lien term loan B (B1/BB) to Libor plus 250 bps from Libor plus 275 bps and changed the original issue discount to 99.75 from 99.5, according to a market source.

The 0.5% Libor floor, 101 soft call protection for six months, and ticking fee of half the margin from days 46 to 90 and the full margin thereafter on the term loan were all unchanged.

Recommitments are due at 10 a.m. ET on Wednesday, the source added.

Credit Suisse Securities (USA) LLC, Wells Fargo Securities LLC, CIBC, BMO Capital Markets, BofA Securities Inc. and National Bank of Canada are leading the deal that will be used with cash on hand to fund the $1.125 billion acquisition of WideOpenWest Inc.’s broadband systems in Ohio and to pay fees and expenses.

Closing is expected in the 2022 fiscal first quarter, subject to regulatory approvals and other customary conditions.

Net debt to adjusted EBITDA is expected to be 5x.

Atlantic Broadband, a subsidiary of Cogeco Communications Inc., is a Quincy, Mass.-based cable operator.

Sitel tightens

Sitel Group firmed pricing on its $1.4 billion seven-year covenant-lite term loan and €1 billion seven-year covenant-lite term loan at Libor/Euribor plus 375 bps, the high end of the Libor/Euribor plus 350 bps to 375 bps talk, and adjusted the original issue discount on both term loans (B1/BB-) to 99.5 from 99, a market source remarked.

As before, the U.S. term loan has a 0.5% Libor floor, the euro term loan has a 0% floor and both term loans have 101 soft call protection for six months.

Recommitments are due at 10 a.m. ET on Wednesday, 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.

RxBenefits flexes

RxBenefits trimmed pricing on its $415 million first-lien term loan due Dec. 18, 2027 to Libor plus 450 bps from Libor plus 475 bps, a market source said.

Of the total term loan amount, $115 million is incremental debt and the remaining $300 million is to reprice an existing term loan down from Libor plus 525 bps with a 0.75% Libor floor.

The original issue discount on the incremental piece was tightened to 99.75 from 99.5, while the issue price on the repricing piece remained at par, the source said.

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

Recommitments were due at 5 p.m. ET on Tuesday, the source added.

Barclays, Deutsche Bank Securities Inc. and Goldman Sachs Bank USA are leading the deal.

The incremental amount will be used with a privately placed $45 million add-on second-lien term loan and rollover equity to fund an acquisition.

Advent International and Great Hill Partners are the sponsors.

RxBenefits is a Birmingham, Ala.-based pharmacy benefits optimizer for the employee benefit industry.

Curia retranches

Curia lifted its first-lien term loan due Aug. 30, 2026 to $1.19 billion from a revised amount of $1.15 billion and an initial size of $310 million, and scaled back its privately placed second-lien term loan to $300 million from $340 million, a market source remarked.

First-lien term loan pricing remained at Libor plus 375 bps with a 0.75% Libor floor, and the debt still has 101 soft call protection for six months.

Of the total first-lien term loan amount, $350 million is incremental debt for the acquisitions of Integrity Bio Inc. and LakePharma, and $840 million will be used to amend and extend an existing roughly $630 million first-lien term loan and an existing roughly $210 million incremental first-lien term loan.

The existing term loan, currently priced at Libor plus 325 bps with a 1% Libor floor, and the existing incremental term loan, currently priced at Libor plus 350 bps with a 1% Libor floor, will be extended by two years from August 2024.

As before, new money lenders are offered an original issue discount of 99.5 and consenting lenders are being rolled into the new term loan at par.

Curia shuts books

Recommitments for Curia’s first-lien term loan were due at the end of the day on Tuesday and allocations are expected on Wednesday, the source added.

Previously in syndication, pricing on the first-lien was set at the high end of the Libor plus 350 bps to 375 bps talk, the discount for new money lenders firmed at the tight end of the 99 to 99.5 talk, and the amendment and extension of the existing term loans was added to the transaction.

Barclays is the left lead on the deal.

Closing on the acquisitions is expected in the third quarter, subject to customary conditions.

Curia, formerly known as Albany Molecular Research Inc., is an Albany-based contract research, development and manufacturing organization. Integrity Bio is a Camarillo, Calif.-based formulation and fill-finish organization. LakePharma is a biologics drug discovery, clinical research, development and manufacturing organization.

Sovos accelerated

Sovos Compliance moved up the commitment deadline for its $1.46 billion seven-year first-lien term loan (B3/B-) to 5 p.m. ET on Wednesday from 5 p.m. ET on Thursday, according to a market source.

Talk on the term loan, of which $215 million is delayed-draw, is Libor plus 475 bps with a 0.75% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection for one year.

Ticking fees on the delayed-draw tranche are half the margin from days 61 to 90 and the full margin thereafter.

Credit Suisse Securities (USA) LLC, Jefferies LLC, Mizuho, TD Securities (USA) LLC, Fifth Third and Nomura are leading the deal that will be used to refinance existing debt, finance acquisition activity and fund a shareholder distribution.

Sovos Compliance is a provider of indirect tax and regulatory compliance software.

Hyperion tweaks timing

Hyperion Materials accelerated the commitment deadline for its $390 million first-lien term loan to 5 p.m. ET on Thursday from Monday due to oversubscription, a market source said.

Talk on the term loan is Libor plus 475 bps with a 0.5% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

The company’s $465 million of credit facilities (B2/B) also include a $75 million revolver.

UBS Investment Bank and KKR Capital Markets are leading the deal that will be used to refinance existing debt.

Hyperion Materials, a portfolio company of KKR, is a Worthington, Ohio-based solutions provider of effective applications for hard and super-hard materials.

Bally’s guidance

Bally’s held its call on Tuesday morning and announced talk on its $1.445 billion seven-year covenant-lite term loan B (Ba2/BB-/BB) at Libor plus 300 bps to 325 bps with a 0.5% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, a market source remarked.

Commitments are due on Aug. 5, the source added.

Goldman Sachs Bank USA, Deutsche Bank Securities Inc., Barclays, Citizens Bank, Truist, Capital One and Fifth Third are leading the deal. Deutsche Bank is the administrative agent.

The term loan will be used with $2 billion of other unsecured debt to help fund the acquisition of Gamesys Group plc, a London-based online gaming operator.

Bally’s is a Providence, R.I.-based casino-entertainment company.

Parexel readies deal

Parexel set a lender call for 11 a.m. ET on Wednesday to launch a $2.7 billion first-lien term loan (B1/B), according to a market source.

The company’s $4.1 billion of credit facilities also include a $500 million revolver (B1/B) and a $900 million privately placed second-lien term loan, the source said.

Goldman Sachs Bank USA, Barclays, UBS Investment Bank, Jefferies LLC, BofA Securities Inc., Credit Suisse Securities (USA) LLC, BNP Paribas Securities Corp., Morgan Stanley Senior Funding Inc., Mizuho and RBC Capital Markets are leading the deal that will help fund the buyout of the company by EQT and Goldman Sachs Asset Management from Pamplona Capital Management LP for $8.5 billion.

Closing is subject to customary conditions, including receipt of regulatory approvals.

Parexel is a Durham, N.C.-based biopharmaceutical services company.

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