Motel 6, Maverick, Teaching, Alight, Packers break; Greatbatch, Sylvamo, Esdec revised

By Sara Rosenberg

New York, Aug. 19 – Motel 6 lowered pricing on its term loan B, reduced the Libor floor, tightened the issue price and changed the call protection, and Maverick Gaming LLC increased the size of its term loan B, and then both of these deals freed to trade on Thursday.

Other deals to surface in the secondary market during the session included Teaching Strategies (Foundational Education Group Inc.), Alight Solutions and Packers Holdings LLC (PSSI).

In more happenings, Greatbatch Ltd. (Integer) firmed the spread and the original issue discount on its term loan B at the tight end of guidance, Sylvamo Corp. downsized its term loan B, modified price talk, set the original issue discount at the wide side of guidance and sweetened the call protection, and Esdec Solar Group BV widened spread, floor and issue price talk on its term loan B.

Motel 6 revised, frees

Motel 6 trimmed the spread on its $300 million five-year term loan B (B2/B-) to Libor plus 500 basis points from talk in the range of Libor plus 525 bps to 550 bps, cut the Libor floor to 0.75% from 1% and modified the original issue discount to 99 from 98, a market source remarked.

In addition, the call protection on the term loan was changed to a 101 hard call for one year from a hard call of 102 in year one and 101 in year two.

Recommitments were due at 11 a.m. ET on Thursday and the term loan freed up later in the day, with levels quoted at 99½ bid, par ¼ offered, the source added.

Goldman Sachs Bank USA is leading the deal that will be used to refinance existing debt.

Closing is expected during the week of Sept. 6.

Motel 6 is a Carrollton, Tex.-based economy lodging company.

Maverick upsizes

Maverick Gaming lifted its five-year covenant-lite term loan B (B3/B-) to $310 million from $300 million, according to a market source.

The term loan is priced at Libor plus 750 bps with a 50 bps step-down when first-lien net leverage is less than 3.75x, a 1% Libor floor and an original issue discount of 98, and is non-callable for one year, then has hard call protection of 102 for one year and 101 for six months.

Previously in syndication, pricing on the term loan firmed at the high end of the Libor plus 725 bps to 750 bps talk, the step-down was revised from when first-lien net leverage is less than 4x, the call protection was changed from non-callable for one year, then a 101 hard call for one year, the maturity was shortened from seven years and changes were made to documentation.

The company’s now $365 million of credit facilities also include a $55 million revolver, which was upsized previously from $50 million.

Maverick starts trading

During the afternoon, Maverick Gaming’s term loan B made its way into the secondary market, with levels quoted at 98½ bid, 99½ offered, another source added.

Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC and Jefferies LLC are leading the deal.

The credit facilities will be used to refinance the company’s existing capital structure and the funds from the upsizing will be used to repay other existing debt and pay transaction fees and expenses.

Maverick Gaming is a Kirkland, Wash.-based owner and operator of regional casinos and cardrooms.

Teaching Strategies breaks

Teaching Strategies’ bank debt began trading, with the $320 million seven-year covenant-lite first-lien term loan (B2/B-) quoted at 99¼ bid, 99¾ offered and the $115 million eight-year covenant-lite second-lien term loan (Caa2/CCC) quoted at par bid, 101 offered, a market source said.

Pricing on the first-lien term loan is Libor plus 425 bps with a 0.5% Libor floor and it was sold at an original issue discount of 99. The debt has 101 soft call protection for six months.

The second-lien term loan is priced at Libor plus 650 bps with a 0.5% Libor floor and it was issued at a discount of 99. This tranche has call protection of 102 in year one and 101 in year two.

During syndication, pricing on the first-lien term loan firmed at the high end of revised talk of Libor plus 400 bps to 425 bps and up from initial talk in the range of Libor plus 375 bps to 400 bps, and the discount was changed from 99.5. Also, pricing on the second-lien term loan was set at the low end of the Libor plus 650 bps to 675 bps talk. And, changes were made to MFN, the dollar basket, the incremental amount, the unlimited ratio restricted payments basket, and Chewy and J. Crew language was included.

Teaching lead banks

Deutsche Bank Securities Inc., KKR Capital Markets, Barclays, Macquarie Capital (USA) Inc., Mizuho, SMBC and UBS Investment Bank are the bookrunners on the deal, with Deutsche the left lead on the first-lien loan and KKR the left lead on the second-lien loan.

Proceeds will be used to help fund the buyout of the company by KKR from Summit Partners.

Teaching Strategies is a provider of curriculum, assessment and family engagement tools to the early childhood education market.

Alight tops OID

Alight Solutions’ $525 million seven-year term loan freed to trade too, with levels quoted at 99 7/8 bid, par 1/8 offered, a market source remarked.

Pricing on the term loan is Libor plus 300 bps with a 0.5% Libor floor and it was sold at an original issue discount of 99.75.

During syndication, the term loan was upsized from $450 million, pricing was lowered from Libor plus 325 bps, the discount tightened from talk in the range of 99.25 to 99.5 and the loan was changed to a stand-alone tranche from fungible with the company’s existing term loan B due 2026.

BofA Securities Inc. is the left lead on the deal that will be used to fund an acquisition and add cash to the balance sheet.

Alight is a Lincolnshire, Ill.-based provider of integrated, cloud-based human capital solutions.

Packers hits secondary

Packers Holdings’ fungible $185 million incremental senior secured first-lien term loan (B2/B-/B) due March 9, 2028 broke for trading as well, with levels quoted at 99 bid, 99½ offered, a market source said.

Pricing on the incremental term loan is Libor plus 325 bps with two leverage-based step-downs and one initial public offering-based step-down, and a 0.75% Libor floor. The debt was sold at an original issue discount of 98.5.

During syndication, the incremental term loan was upsized from $165 million.

Jefferies LLC, Blackstone, Nomura and Morgan Stanley Senior Funding Inc. are leading the deal that will be used to fund the acquisition of Safe Foods Inc., a food safety performance management company, and, due to the recent upsizing, to add cash to the balance sheet.

Packers Holdings is a Kieler, Wis.-based provider of mission critical cleaning, sanitation and compliance services to the food processing industry.

Greatbatch updated

Back in the primary market, Greatbatch finalized pricing on its $350 million seven-year senior secured covenant-lite term loan B (Ba3/BB-) at Libor plus 250 bps, the low end of the Libor plus 250 bps to 275 bps talk, and set the original issue discount at 99.5, the tight end of the 99 to 99.5 talk, according to a market source.

The term loan still has a 0.5% Libor floor and 101 soft call protection for six months.

Commitments were due at noon ET on Thursday, the source added.

Wells Fargo Securities LLC, BofA Securities Inc., Fifth Third, KeyBanc Capital Markets, Citigroup Global Markets Inc. and Santander are leading the deal that will be used to refinance existing debt.

Greatbatch is a Plano, Tex.-based medical device company.

Sylvamo reworked

Sylvamo scaled back its seven-year term loan B to $450 million from $500 million, changed price talk to a range of Libor plus 425 bps to 450 bps from a range of Libor plus 275 bps to 300 bps, set the original issue discount at 99, the wide end of the 99 to 99.5 talk, and extended the 101 soft call protection to one year from six months, a market source remarked.

The term loan still has a 0.5% Libor floor.

Commitments are due at 10 a.m. ET on Friday, the source added.

BofA Securities Inc. is leading the deal that will be used with $450 million of senior notes, downsized from $500 million, to help fund the spinoff of the company from International Paper.

Sylvamo is a Memphis-based printing papers company.

Esdec widens

Esdec Solar raised pricing on its $375 million term loan B (B2/B) due 2028 to Libor plus 500 bps from Libor plus 425 bps, increased the Libor floor to 0.75% from 0.5% Libor floor and revised the original issue discount talk to a range of 97 to 98 from 99, according to a market source.

As before, the term loan has 101 soft call protection for six months.

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

JPMorgan Chase Bank is leading the deal that will be used to refinance existing debt and fund a dividend.

Esdec Solar is a Netherlands-based developer, manufacturer and supplier of professional solar rooftop mounting solutions for the residential, commercial and industrial markets.

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