Trader Interactive, Resolute, Imperial Dade, DirecTV, Upstream Rehab break for trading

By Sara Rosenberg

New York, July 22 – Trader Interactive set the spread and the original issue discount on its term loan B at the tight end of guidance, and Resolute Investment Managers Inc. changed the issue price on its add-on first-lien term loan B and added call protection, and then these deals freed to trade on Thursday.

Also, Imperial Dade (BCPE Empire Holdings Inc.) firmed the original issue discount on its incremental first-lien term loan at the wide end of talk and revised the issue price on the repricing of its existing first-lien term loan before breaking for trading, and deals from DirecTV Financing LLC and Upstream Rehab (Upstream Holdco Inc.) hit the secondary market as well.

In more happenings, Iridium Satellite LLC set the original issue discount on its term loan B at the wide end of talk, and Curia Global Inc. raised the size of its new term loan as an extension of its existing term loans was added to the transaction, and updated price talk.

Additionally, Rough Country trimmed the spread on its first-lien term loan, Switch firmed pricing on its term loan B at the low end of talk and modified the issue price, and Hudson River Trading LLC increased the size of its add-on term loan B and finalized the original issue discount at the wide side of guidance.

Furthermore, Evans Network of Cos., Veritext Corp. (VT TopCo Inc.), Sweetwater and Ontic (Bleriot US Bidco Inc.) released price talk with launch, and Wahoo Fitness Holdings LLC emerged with new deal plans.

Trader updated, frees

Trader Interactive finalized pricing on its $410 million seven-year term loan B (B3/B) at Libor plus 400 bps, the low end of the Libor plus 400 bps to 425 bps talk, firmed the original issue discount at 99.5, the tight end of the 99 to 99.5 talk, and made some changes to documentation, according to a market source.

As before, the term loan has a 25 bps step-down at less than 4.9x first-lien net leverage and a 25 bps step-down upon a qualifying initial public offering, a 0.5% Libor floor and 101 soft call protection for six months.

During the session, the term loan B broke for trading, with levels quoted at 99¾ bid, par ½ offered, another source added.

Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC and Societe Generale are leading the deal that will be used to refinance the company’s existing capital structure alongside a recent minority equity investment from Carsales. Credit Suisse is the administrative agent.

Closing is expected during the week of July 26.

Trader Interactive is a Norfolk, Va.-based provider of digital marketing solutions and services across the commercial truck, RV, powersports and equipment industries.

Resolute tweaked, trades

Resolute Investment Managers widened the original issue discount on its fungible $275 million add-on first-lien term loan B (Ba3/B+) due April 2024 to 99.25 from 99.5 and added 101 soft call protection for one year, a market source said.

Pricing on the add-on term loan remained at Libor plus 425 bps with a 1% Libor floor.

As before, with this transaction, the company is lifting 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 the afternoon, the add-on term loan made its way into the secondary market, with levels quoted at 99½ bid, par offered, a trader added.

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

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.

Imperial revised, breaks

Imperial Dade set the original issue discount on its $425 million incremental first-lien term loan due June 2026 at 99.5, the wide end of the 99.5 to 99.75 talk, and changed the issue price on the repricing of its existing $180 million first-lien term loan due June 2026 to 99.75 from par, according to a market source.

Pricing on the term loan debt (B2/B-) is Libor plus 400 bps with a 0.5% Libor floor, and the debt has 101 soft call protection for six months.

The incremental first-lien term loan includes a $145 million delayed-draw tranche.

The debt broke for trading on Thursday, with the incremental term loan quoted at 99 5/8 bid, par offered and the repriced term loan quoted at 99¾ bid, par 1/8 offered, another source added.

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

The incremental loan will be used to fund acquisitions under letters of intent and near-term acquisitions, and the repricing will take the existing term loan down from Libor plus 425 bps with a 0.75% Libor floor.

Imperial Dade is a Jersey City, N.J.-based distributor of foodservice disposables and janitorial sanitation products.

DirecTV hits secondary

DirecTV’s $3.9 billion six-year covenant-lite first-lien term loan began trading, with levels quoted at 99½ bid, par ½ offered, a market source said.

Pricing on the term loan is Libor plus 500 bps with a 0.75% Libor floor and it was sold at an original issue discount of 99. The debt is non-callable for one year, then at par.

During syndication, the term loan was upsized from $3.1 billion as the company’s senior secured notes offering was downsized to $2.3 billion from $3.1 billion, pricing was cut from Libor plus 525 bps, the discount was revised from 98 and amortization was reduced to 9% per annum from 10% per annum.

The company’s $4.4 billion of credit facilities (Ba3/BB/BBB-) also include a $500 million revolver.

DirecTV lead banks

Credit Suisse Securities (USA) LLC, BofA Securities Inc., Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., BMO Capital Markets, Goldman Sachs Bank USA, Mizuho, MUFG, UBS Investment Bank, Barclays and Jefferies LLC are leading DirecTV’s credit facilities.

Proceeds will be used help fund the creation of the company through a joint venture with TPG Capital and AT&T Inc., under which AT&T is spinning off its DirecTV, AT&T TV and U-verse video services.

TPG Capital will contribute $1.8 billion in cash to DirecTV in exchange for preferred units senior preferred units with a 10% cash coupon and a 30% interest in the company. AT&T is getting $4.25 billion of junior preferred units with a 6.5% payment-in-kind coupon, an additional distribution preference of $4.2 billion and a 70% economic interest in the company.

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

DirecTV, a video services company, has an implied enterprise value of $16.25 billion.

Upstream Rehab breaks

Upstream Rehab’s fungible $310 million covenant-lite incremental first-lien term loan (B2/B) due November 2026 and repriced $573 million covenant-lite first-lien term loan (B2/B) due November 2026 also broke for trading, with levels quoted at par bid, par ½ offered, a market source remarked.

The incremental term loan and repriced term loan are priced at Libor plus 425 bps with a 25 bps step-down at 5.65x total net leverage and a 0% Libor floor. The incremental loan was sold at an original issue discount of 99.75 and the repricing was issued at par. All of the term loan debt has 101 soft call protection for six months.

During syndication, pricing on the incremental term loan was lowered from Libor plus 450 bps, the discount on the incremental was tightened from 99.5 and the repricing of the existing term loan from Libor plus 450 bps was added to the transaction.

Credit Suisse Securities (USA) LLC is leading the deal.

The incremental term loan will be used to fund the acquisition of Results Physiotherapy, a Nashville-based provider of physical therapy services.

Upstream Rehab is a Birmingham, Ala.-based provider of outpatient rehabilitation services.

Iridium firms OID

Back in the primary market, Iridium Satellite set the original issue discount on its $1.629 billion covenant-lite term loan B (BB-) due Nov. 4, 2026 at 99.75, the wide end of the 99.75 to par talk, according to a market source.

As before, the term loan is priced at Libor plus 250 bps with a 0.75% Libor floor and has 101 soft call protection for six months.

Allocations are expected on Friday, the source added.

Deutsche Bank Securities Inc., Barclays, Credit Suisse Securities (USA) LLC and Wells Fargo Securities LLC are leading the deal that will be used to reprice an existing term loan B down from Libor plus 275 bps with a 1% Libor floor.

Iridium is a McLean, Va.-based provider of mobile voice and data communications services through satellite.

Curia reworked

Curia upsized its first-lien term loan due Aug. 30, 2026 to $1.15 billion from $310 million and set pricing at Libor plus 375 bps, the high end of the Libor plus 350 bps to 375 bps talk, a market source said.

Of the total term loan amount, $310 million is incremental debt for the acquisitions of Integrity Bio Inc. and LakePharma, and the added $840 million of debt 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.

New money lenders are being offered an original issue discount of 99.5, compared to initial talk on the term loan of 99 to 99.5, and consenting lenders will be rolled into the new term loan at par, the source continued. No amendment fee will be paid.

The 0.75% Libor floor and 101 soft call protection for six months on the term loan was unchanged.

Curia deadline

Commitments for Curia’s revised transaction are due at 5 p.m. ET on Monday, the source added.

Barclays is the left bookrunner on the deal and the administrative agent.

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.

Rough Country flexes

Rough Country reduced pricing on its $585 million covenant-lite first-lien term loan to Libor plus 350 bps from revised talk of Libor plus 375 bps and initial talk in the range of Libor plus 375 bps to 400 bps, according to a market source.

The first-lien term loan still has a 0.75% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months.

The company’s $810 million of credit facilities also include a $50 million revolver, and a $175 million covenant-lite second-lien term loan priced at Libor plus 675 bps with a 0.75% Libor floor and a discount of 99.5. The second-lien loan has call protection of 102 in year one and 101 in year two.

Previously in syndication, the first-lien term loan was upsized from $555 million and the discount was revised from 99.5, and the second-lien term loan was downsized from $205 million, pricing was cut from Libor plus 700 bps and the discount was set at the tight end of the 99 to 99.5 talk.

Rough Country buyout

Rough Country will use its new credit facilities to help fund its acquisition by TSG Consumer Partners from Gridiron Capital. Upon closing, Gridiron Capital and Rough Country management will remain significant investors in the company.

Golub Capital and Jefferies LLC are leading the deal.

Recommitments are due at 5 p.m. ET on Friday, the source added.

Closing is expected on Wednesday.

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

Switch tightens

Switch finalized the spread on its $400 million seven-year term loan B at Libor plus 200 bps, the low end of the Libor plus 200 bps to 225 bps talk, and adjusted the original issue discount to 99.75 from 99.5, a market source said.

The 0% Libor floor and 101 soft call protection for six months on the term loan were unchanged.

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

BMO Capital Markets, Wells Fargo Securities LLC, Goldman Sachs Bank USA and JPMorgan Chase Bank are leading the deal that will be used to amend and extend an existing term loan B due 2024.

Switch is a Las Vegas-based developer and operator of data centers.

Hudson upsizes

Hudson River Trading raised its fungible add-on term loan B to $225 million from $200 million and firmed the original issue discount at 98.5, the wide end of the 98.5 to 98.75 talk, according to a market source.

Pricing on the add-on term loan is Libor plus 300 bps with a 0% Libor floor, in line with existing term loan pricing.

BofA Securities Inc., Goldman Sachs Bank USA and JPMorgan Chase Bank are leading the deal that will be used for general corporate purposes.

Hudson River Trading is a New York-based electronic market maker and liquidity provider.

Evans proposed terms

Evans Network held its call on Thursday and announced price talk on its $450 million first-lien term loan, $40 million delayed-draw first-lien term loan and $190 million second-lien term loan, according to a market source.

Talk on the first-lien term loan and delayed-draw term loan, which are being sold as a strip, is Libor plus 400 bps to 425 bps with a 0.75% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, and talk on the second-lien term loan is Libor plus 750 bps with a 0.75% Libor floor, a discount of 99 and hard call protection of 102 in year one and 101 in year two, the source said.

Delayed-draw term loan ticking fees are half the spread from days 91 to 120 and the full spread thereafter.

Commitments are due at 5 p.m. ET on Aug. 5.

The company’s $830 million of senior secured credit facilities also include a $150 million privately placed ABL revolver.

Antares Capital is leading the deal that will support Court Square’s recapitalization of the company.

Evans Network is a Schuylkill Haven, Pa.-based asset-light logistics platform providing critical services at scale to a network of independent freight agents.

Veritext sets talk

Veritext released price talk on its non-fungible $400 million incremental first-lien term loan (B2/B) due August 2025, $70 million delayed-draw for 24 months first-lien term loan (B2/B) and non-fungible $200 million incremental second-lien term loan (Caa2/CCC+) due August 2026 with its afternoon bank meeting, a market source remarked.

The incremental first-lien term loan and delayed-draw term loan, which are being sold as a strip, are talked at Libor plus 375 bps to 400 bps with a 0.75% Libor floor and an original issue discount of 99, and the incremental second-lien term loan is talked at Libor plus 700 bps with a 0.75% Libor floor and a discount of 98.5 to 99, 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.

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

Veritext getting revolver

Along with the term loans, Veritext’s $725 million of credit facilities include a $55 million revolver (B2/B) due 2025.

Commitments are due at 5 p.m. ET on Aug. 2, the source added.

Jefferies LLC, BNP Paribas Securities Corp. and Macquarie Capital (USA) Inc. are leading the deal that will be used to fund a distribution to shareholders, pay down the existing revolver balance and extend the existing revolver by two years to 2025.

Veritext is a Livingston, N.J.-based provider of deposition and litigation support solutions for law firms and corporations.

Sweetwater holds call

Sweetwater held a lender call at 10:30 a.m. ET on Thursday to launch a $638.5 million term loan B (B2/B) talked at Libor plus 450 bps to 475 bps with a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

Commitments are due at 5 p.m. ET on Aug. 2, the source added.

JPMorgan Chase Bank is leading the deal that will be used to help fund the buyout of the company by Providence Equity Partners.

Sweetwater is a Fort Wayne, Ind.-based online retailer of music instruments and audio gear.

Ontic guidance

Ontic came out with original issue discount talk of 99.5 to 99.75 on its fungible $140 million incremental covenant-lite first-lien term loan (B2/B) due October 2026 that launched with a call in the morning, a market source said.

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

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

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

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

Wahoo joins calendar

Wahoo Fitness will hold a lender call at 2 p.m. ET on Monday to launch a $200 million term loan B, according to a market source.

RBC Capital Markets is the left lead on the deal that will be used to help fund the buyout of the company by Rhône Group. Wahoo’s current investor, Norwest Equity Partners, will continue to own a minority investment in the company.

Closing is expected in the third quarter.

Wahoo is an Atlanta-based a provider of fitness technology for indoor cycling and endurance training.

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