Herschend, Taboola, Centuri break; Maverick, Alight, Teaching, Kenan, Packers updated

By Sara Rosenberg

New York, Aug. 18 – Herschend Family Entertainment lowered the spread on its first-lien term loan B, and Taboola.com Ltd. set pricing on its term loan B at the high end of talk, widened the issue price and extended the call protection, and then these deals freed to trade on Wednesday.

Another deal to make its way into the secondary market during the session was Centuri Group Inc.’s term loan B, with levels quoted above its original issue discount.

In other news, Maverick Gaming LLC set the spread on its term loan B at the high side of talk, revised the step-down and the call protection, shortened the maturity and reworked documentation, and Alight Solutions upsized its term loan, trimmed pricing and tightened the original issue discount

Also, Teaching Strategies (Foundational Education Group Inc.) updated pricing on its first-and second-lien term loans, Kenan Advantage Group Inc. increased the size of its incremental first-lien term loan and firmed the original issue discount on its second-lien term loan at the wide end of guidance, and Packers Holdings LLC (PSSI) upsized its incremental first-lien term loan.

Additionally, HighTower Holding LLC finalized the original issue discount on its add-on term loan at the tight end of guidance, Cooke Inc. withdrew its term loan B from the primary market, and Thrasio emerged with new deal plans.

Herschend flexes, trades

Herschend Family Entertainment trimmed pricing on its $475 million seven-year first-lien term loan B (B2/B+) to Libor plus 375 basis points from talk in the range of Libor plus 400 bps to 425 bps and modified the MFN to 50 bps with a 36-month sunset from 75 bps with a 12-month sunset, according to a market source.

As before, the term loan has a 0.5% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

Recommitments were due at 10:30 a.m. ET on Wednesday and the term loan began trading later in the day, with levels quoted at 99½ bid, par ¼ offered, another source added.

Goldman Sachs Bank USA is leading the deal that will be used to refinance an existing term loan B.

Closing is expected on Aug. 26.

Herschend is a Peachtree Corners, Ga.-based themed-entertainment company that operates theme parks and tourist attractions.

Taboola revised, breaks

Taboola firmed pricing on its $300 million seven-year term loan B (B1/BB-) at Libor plus 400 bps, the high end of the Libor plus 375 bps to 400 bps talk, changed the original issue discount to 98.5 from 99 and extended the 101 soft call protection to one year from six months, a market source remarked.

Also, documentation changes were made to Serta language, MFN, debt and lien incurrence, restricted debt payments and other items, the source said.

The term loan still has a 0.5% Libor floor.

Recommitments were due at 11 a.m. ET on Wednesday and the term loan freed up in the afternoon, with levels quoted at 98¾ bid, 99¾ offered, another source added.

JPMorgan Chase Bank and Credit Suisse Securities (USA) LLC are leading the deal that will be used with cash on hand and the issuance of ordinary shares to fund the acquisition of Connexity, a Santa Monica, Calif.-based e-Commerce media platform, from Symphony Technology Group for about $800 million.

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

Taboola is a New York-based platform that powers recommendations for the open web.

Centuri hits secondary

Centuri’s $1.145 billion seven-year covenant-lite term loan B (Ba2/BB-) broke for trading too, with levels quoted at 99 3/8 bid, 99¾ offered, according to a market source.

Pricing on the term loan is Libor plus 250 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.

During syndication, pricing on the term loan was lowered from talk in the range of Libor plus 275 bps to 300 bps and the discount firmed at the wide end of the 99 to 99.5 talk.

Wells Fargo Securities LLC and BofA Securities Inc. are leading the deal that will be used to support the $855 million acquisition of Riggs Distler & Co. Inc., a Cherry Hill, N.J.-based utility services contractor, and to refinance existing credit facilities.

Closing is expected in the third quarter.

Centuri, a wholly owned subsidiary of Southwest Gas Holdings Inc., is a Phoenix-based utility services enterprise dedicated to delivering a diverse array of solutions to North America’s gas and electric providers.

Maverick reworked

Back in the primary market, Maverick Gaming set pricing on its $300 million covenant-lite term loan B (B3/B-) at Libor plus 750 bps, the high end of the Libor plus 725 bps to 750 bps talk, changed the 50 bps pricing step-down to when first-lien net leverage is less than 3.75x from when first-lien net leverage is less than 4x, revised the call protection to non-callable for one year, then hard call protection of 102 for one year and 101 for six months from non-callable for one year, then a 101 hard call for one year, and shortened the maturity to five years from seven years, a market source remarked.

The company also made changes to documentation including to fixed incremental amount, incremental ratio debt, MFN, consolidated EBITDA, excess cash flow sweep, sale leasebacks, general debt basket, purchase money & capital lease obligations basket, general liens basket, general investment basket, investments in non-loan parties, non-guarantor cap on permitted acquisitions, investments in unrestricted subsidiaries, investment ratio, initial restricted payment base amount, available amount governor for restricted payments and RDP, restricted payment ratio, restricted debt prepayments ratio and reporting.

The term loan still has a 1% Libor floor and an original issue discount of 98.

Maverick ups revolver

Along with the term loan changes, Maverick Gaming upsized its revolver to $55 million from $50 million and changed the incremental priority obligation cap to $20 million from $25 million, the source continued.

Recommitments were due at 5 p.m. ET on Wednesday and allocations are expected on Thursday, the source added.

Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC and Jefferies LLC are leading the deal that will be used to refinance the company’s existing capital structure.

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

Alight restructures

Alight Solutions increased its term loan to $525 million from $450 million, lowered pricing to Libor plus 300 bps from Libor plus 325 bps and revised the original issue discount to 99.75 from talk in the range of 99.25 to 99.5, a market source said.

Furthermore, the term loan will no longer be fungible with the company’s existing term loan B, the source added.

The term loan still has a 0.5% Libor floor.

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.

Teaching Strategies firms

Teaching Strategies finalized pricing on its $320 million seven-year covenant-lite first-lien term loan (B2/B-) at Libor plus 425 bps, 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, according to a market source.

Also, the company firmed pricing on its $115 million eight-year covenant-lite second-lien term loan (Caa2/CCC) at Libor plus 650 bps, the low end of the Libor plus 650 bps to 675 bps talk.

In addition, MFN was changed to 50 bps for 18 months from 75 bps for six months, the dollar basket was reduced to $33 million/50% EBITDA from $66 million/100% EBITDA, the incremental amount was revised to remove the inside maturity basket and reduce ratio prongs by 0.5x turn, the unlimited ratio restricted payments basket was reduced by 0.25x, ratio debt was changed to include revolver draws in leverage ratios, the Libor floor will survive the switch to alternative reference rate, and Chewwy and J. Crew language was included.

Both term loans still have a 0.5% Libor floor and an original issue discount of 99, the first-lien term loan still has 101 soft call protection for six months and the second-lien term loan still has call protection of 102 in year one and 101 in year two.

Previously in syndication, the discount on the first-lien term loan widened from 99.5.

Teaching lead banks

Deutsche Bank Securities Inc., KKR Capital Markets, Barclays and Macquarie Capital (USA) Inc. are leading Teaching Strategies’ bank debt, with Deutsche the left lead on the first-lien loan and KKR the left lead on the second-lien loan.

Recommitments were due at 3:30 p.m. ET on Wednesday, the source added.

The term loans 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.

Kenan upsizes

Kenan raised its incremental first-lien term loan to $115 million from $100 million and kept pricing at Libor plus 375 bps with a 0.75% Libor floor and an original issue discount of 99.5, a market source remarked. The spread and floor on the incremental loan matches existing term loan pricing.

In addition, the company set the original issue discount on its $300 million six-year second-lien term loan at 98, the wide end of the 98 to 99 talk, the source continued.

Pricing on the second-lien term loan remained at Libor plus 725 bps with a 0.75% Libor floor, and the debt still has call protection of 102 in year one and 101 in year two.

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

KeyBanc Capital Markets LLC is the left lead on the first-lien loan and Barclays is the left lead on the second-lien loan.

The loans will be used to refinance the company’s existing senior notes due 2023.

Kenan Advantage is a North Canton, Ohio-based provider of liquid bulk transportation services to the fuels, chemicals, liquid foods and merchant gas markets.

Packers tweaks deal

Packers Holdings lifted its fungible incremental senior secured first-lien term loan due March 9, 2028 to $185 million from $165 million, according to a market source.

Pricing on the incremental term loan is Libor plus 325 bps with a 0.75% Libor floor and the debt is offered with an original issue discount of 98.5.

Commitments were due at 4 p.m. ET on Wednesday, moved up from noon ET on Thursday, the source added.

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 the funds from the upsizing will 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.

HighTower updated

HighTower set the original issue discount on its fungible $115 million add-on term loan (B2) at 99.25, the tight end of the 99 to 99.25 talk, a market source said.

The add-on term loan is priced at Libor plus 400 bps with a 0.75% Libor floor and has 101 soft call protection for six months.

Recommitments were due at 10:30 a.m. ET on Wednesday, the source added.

JPMorgan Chase Bank is leading the deal that will be used for general corporate purposes and acquisition activity.

HighTower is a Chicago-based registered investment adviser that owns and provides a suite of mission critical services to independent advisory practices.

Cooke pulls loan

Cooke withdrew its $480 million seven-year term loan B (Ba3/B+) from market, according to a market source.

The term loan was talked at Libor plus 325 bps to 350 bps with a 0.5% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months.

BofA Securities Inc. and DNB were leading the deal that was going to be used to help refinance existing debt.

Cooke is a New Brunswick-based seafood producer.

Thrasio joins calendar

Thrasio will hold a lender call at 10 a.m. ET on Thursday to launch a fungible $300 million add-on term loan, of which $150 million will be delayed-draw, a market source remarked.

Pricing on the add-on term loan is Libor plus 700 bps with a step-down to Libor plus 675 bps when total net leverage is less than 3x and a 1% Libor floor, and the new debt is talked with an original issue discount of 99.5, the source added.

The add-on term loan has call protection of 102 until Dec. 18, 2021 and 101 until Dec. 18, 2022.

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

RBC Capital Markets is leading the deal that will be used to fund the company’s acquisition pipeline.

Once the delayed-draw portion is fully drawn, the pro forma term loan size will be about $715 million.

Advent is the sponsor.

Thrasio is an aggregator of e-commerce brands that operates within Amazon’s third-party marketplace.

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