Diversey, Rent-A-Center, Thrasio, Zurn Water break; Caesars Resort, Autokiniton tweak deals

By Sara Rosenberg

New York, Sept. 15 – Diversey Holdings Ltd. (Diamond (BC) BV) firmed pricing on its term loan B at the high end of talk, and Rent-A-Center Inc. set the spread term loan B at the low end of guidance and tightened the issue price, and then both of these deals freed to trade on Wednesday.

Also, Thrasio LLC upsized its add-on term loan B before breaking for trading, and Zurn Water Solutions’ term loan B made its way into the secondary market as well.

In more happenings, Caesars Resort Collection LLC lowered the spread on its first-lien term loan, Autokiniton US Holdings Inc. increased the size of its add-on term loan B, and Global Medical Response accelerated the commitment deadline for its add-on term loan B.

Additionally, BMC Software, Xplornet Communications Inc., Consilio (GI Consilio Parent LLC), American Bath Group (CP Atlas Buyer Inc.) and Virtusa Corp. released price talk on their loan transactions with launch.

Furthermore, SonicWall Inc., NorthStar Group Services Inc. and Medline Industries joined the near-term primary calendar.

Diversey finalizes, trades

Diversey set the spread on its $1.5 billion seven-year covenant-lite term loan B (Ba3/B) at Libor plus 300 basis points, the high end of the Libor plus 275 bps to 300 bps talk, according to a market source.

The term loan still has a 0.5% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

During the session, the term loan B broke for trading, with levels quoted at 99 7/8 bid, par 1/8 offered, another source added.

JPMorgan Chase Bank is leading the deal that will be used with $500 million of senior notes and cash on hand to repay existing term loan borrowings, to redeem senior notes and for general corporate purposes.

Diversey is a Fort Mill, S.C.-based hygiene and cleaning solutions company.

Rent-A-Center updated, trades

Rent-A-Center firmed pricing on its $875 million term loan B (Ba2) at Libor plus 325 bps, the low end of the Libor plus 325 bps to 350 bps talk, and modified the issue price to par from 99.75, a market source said.

As before, the term loan has a 0.5% Libor floor and 101 soft call protection for six months.

The term loan B freed to trade during market hours, with levels quoted at par ¼ bid, par 5/8 offered, another source added.

JPMorgan Chase Bank, HSBC Securities (USA) Inc. and Credit Suisse Securities (USA) LLC are leading the deal that will be used to reprice an existing term loan.

Rent-A-Center is a Plano, Tex.-based omni-channel lease-to-own provider for the credit constrained customer.

Thrasio revised

Thrasio increased its add-on term loan B due Dec. 18, 2026 to $650 million from $300 million, according to a market source. The add-on term loan is split between a $325 million funded tranche and a $325 million delayed-draw tranche, versus a $150 million funded tranche and a $150 million delayed-draw tranche previously.

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, in line with existing term loan pricing, and the add-on has an original issue discount of 99.5, and call protection of 102 until Dec. 18, 2021 and 101 until Dec. 18, 2022.

Late in the day, the add-on term loan made its way into the secondary market, with levels quoted at 99¾ bid, par ¾ offered, a trader added.

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 $1.06 billion.

Advent is the sponsor.

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

Zurn hits secondary

Zurn Water Solutions’ $550 million seven-year covenant-lite senior secured term loan B (Ba3/BB) began trading in the afternoon, with levels quoted at 99 7/8 bid, par 3/8 offered on the break and then moving up to par bid, par ½ offered, a market source remarked.

Pricing on the term loan is Libor plus 225 bps with a 25 bps step-down at 0.5x inside closing total net leverage and a 0.5% Libor floor. The debt was sold at an original issue discount of 99.75 and has 101 soft call protection for six months.

During syndication, pricing on the term loan was reduced from talk in the range of Libor plus 250 bps to 275 bps, the step-down was added and the discount was revised from 99.5.

Credit Suisse Securities (USA) LLC, Barclays, Mizuho, Citigroup Global Markets Inc. and BMO Capital Markets are leading the deal that will be used to help fund the redemption and refinancing of existing debt.

Zurn Water is a Milwaukee-based pure play water management platform.

Caesars flexes

Back in the primary market, Caesars Resort Collection trimmed pricing on its $1.787 billion covenant-lite first-lien term loan due July 2025 to Libor plus 350 bps from Libor plus 375 bps, according to a market source.

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

Recommitments were due at 2 p.m. ET on Wednesday, the source added.

Credit Suisse Securities (USA) LLC and JPMorgan Chase Bank are leading the deal that will be used to reprice an existing term loan down from Libor plus 450 bps with a 0% Libor floor.

Caesars is a Las Vegas-based gaming and hospitality company.

Autokiniton upsizes

Autokiniton lifted its add-on senior secured covenant-lite term loan B due April 2028 to $375 million from $300 million, a market source said.

Pricing on the add-on term loan is Libor plus 450 bps with a 25 bps step-down inside 2.61x total net first-lien leverage and a 0.5% Libor floor, in line with the existing term loan B, and the new debt is still talked with an original issue discount of 99 to 99.5 and 101 soft call protection for six months.

Citigroup Global Markets Inc. and BofA Securities Inc. are leading the deal that will be used to fund a dividend to shareholders.

With this transaction, the company is seeking consent from lenders for a one-time restricted payment basket for the special dividend.

Commitments and amendment consents continue to be due at noon ET on Friday, the source added.

Closing is expected during the week of Sept. 20.

Autokiniton is a New Boston, Mich.-based provider of automotive components and assembly solutions.

Global Medical accelerated

Global Medical Response moved up the commitment deadline for its fungible $300 million add-on term loan B due March 2025 to 5 p.m. ET on Wednesday from 5 p.m. ET on Thursday, a market source remarked.

Pricing on the add-on term loan is Libor plus 425 bps with a 1% Libor floor, and the debt is talked with an original issue discount of 99.5 to 99.75.

KKR Capital Markets is the left lead on the deal that will be used to refinance a portion of the company’s preferred equity.

The new debt is being added on to the company’s existing $1.404 billion term loan B due March 2025.

Global Medical Response is a Greenwood Village, Colo.-based medical transportation and response company.

BMC proposed terms

BMC Software held its call on Wednesday morning and announced price talk on its $500 million equivalent U.S. and euro add-on first-lien term loan B (B2/B-) due October 2025 and $665 million second-lien term loan (Caa2/CCC+) due March 2026, according to a market source.

The U.S. add-on first-lien term loan is talked with an original issue discount of 99 to 99.25 and the euro add-on first-lien term loan is talked with a discount of 99.25 to 99.5, the source said. Pricing on the U.S. add-on first-lien term loan is Libor plus 375 bps with a 0% Libor floor and pricing on the euro add-on first-lien term loan is Euribor plus 400 bps with a 0% floor, in line with existing U.S. and euro first-lien term loan pricing.

Talk on the second-lien term loan is Libor plus 600 bps to 625 bps with a 0.5% Libor floor, a discount of 99.5 and call protection of 102 in year one and 101 in year two.

Commitments are due on Sept. 23, the source added.

Goldman Sachs Bank USA, KKR Capital Markets, Credit Suisse Securities (USA) LLC, Mizuho and Barclays are leading the deal that will be used to repay existing debt and pay transaction fees and expenses.

BMC is a Houston-based developer of software that provides system and service management solutions.

Xplornet launches

Xplornet Communications released price talk on its C$1.175 billion equivalent U.S. seven-year first-lien term loan (B2/B-) and C$350 million equivalent U.S. eight-year second-lien term loan (Caa2/CCC) with its afternoon call, a market source said.

The first-lien term loan is talked at Libor plus 400 bps to 425 bps with a 0.5% Libor floor and an original issue discount of 99.5, and the second-lien term loan is talked at Libor plus 675 bps to 700 bps with a 0.5% Libor floor and a discount of 99, the source added.

Included in the first-lien term loan is 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.

Commitments are due at 5 p.m. ET on Sept. 28.

Barclays is the left lead on the deal that will be used to finance the acquisition of spectrum, fund a tuck-in acquisition and refinance an existing first-lien term loan.

Xplornet is a Woodstock, N.B.-based broadband service provider in Canada.

Consilio guidance

Consilio came out with original issue discount talk of 99 on its fungible $160 million incremental first-lien term loan due May 2028 shortly before its 3 p.m. ET lender call began, according to a market source.

Pricing on the incremental term loan is Libor plus 400 bps with a 0.5% Libor floor, in line with existing first-lien term loan pricing, and the debt has 101 soft call protection through November 2021.

Commitments are due at 5 p.m. ET on Sept. 22.

Credit Suisse Securities (USA) LLC and Stone Point are leading the deal that will be used to fund a tuck-in acquisition.

Consilio is a Washington, D.C.-based provider of eDiscovery and document review solutions.

American Bath talk

American Bath Group held its lender call at 10 a.m. ET and, a few hours before the call began, original issue discount talk of 99 surfaced on its fungible $150 million incremental covenant-lite first-lien term loan (B2/B-) due November 2027, a market source remarked.

Pricing on the incremental term loan is Libor plus 375 bps with a 0.5% Libor floor, in line with existing first-lien term loan pricing.

Commitments are due at 5 p.m. ET on Sept. 22.

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to fund tuck-in acquisitions and repay revolver borrowings.

American Bath is an Arlington, Tex.-based manufacturer of showers, bathtubs and related accessories.

Virtusa holds call

Virtusa Corp. launched on its call a $599 million term loan B talked at Libor plus 375 bps with a 0.5% to 0.75% Libor floor, a par issue price and 101 soft call protection for six months, a market source said.

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

BofA Securities Inc. is the left lead on the deal that will be used to reprice an existing term loan down from Libor plus 425 bps with a 0.75% Libor floor.

Virtusa is a Southborough, Mass.-based provider of digital strategy, digital engineering, and IT services and solutions that help clients change and disrupt markets through innovation engineering.

SonicWall on deck

SonicWall scheduled a lender call for Thursday to launch $210 million of incremental term loans, according to a market source.

The debt is split between a fungible $185 million incremental first-lien term loan and a fungible $25 million incremental second-lien term loan, the source said.

UBS Investment Bank is the left lead on the deal that will be used to fund a cash distribution to shareholders.

SonicWall, backed by Francisco Partners and Elliot Management, is a Milpitas, Calif.-based provider of network security.

NorthStar readies loan

NorthStar Group will hold a lender call at 10 a.m. ET on Tuesday to launch a fungible $200 million incremental term loan due November 2026, a market source remarked.

Pricing on the incremental term loan is Libor plus 550 bps with a 1% Libor floor, in line with existing term loan pricing. Original issue discount talk on the incremental term loan is still to be announced.

Macquarie Capital (USA) Inc. is leading the deal, which will be used to fund a recapitalization that will include new third-party equity.

NorthStar is a New York-based provider of specialized environmental and technical services to government and commercial facility owners in need of operational, decommissioning and remediation services.

Medline coming soon

Medline Industries set a lender call for 11 a.m. ET on Monday to launch a $6 billion seven-year term loan and a $1 billion equivalent euro seven-year term loan, according to a market source.

BofA Securities Inc., Goldman Sachs Bank USA, JPMorgan Chase Bank, Barclays, Morgan Stanley Senior Funding Inc., MUFG, BMO Capital Markets, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., Jefferies LLC, Macquarie Capital (USA) Inc., UBS Investment Bank, Wells Fargo Securities LLC, Bank of the West, BNP Paribas Securities Corp., Credit Suisse Securities (USA) LLC, Mizuho, Nomura, RBC Capital Markets, Santander, Truist, ING, Societe Generale, Sumitomo, Bank of Nova Scotia and TD Securities (USA) LLC are leading the deal.

The loans will help fund the buyout of the company by Blackstone, Carlyle and Hellman & Friedman.

Closing is expected late this year, subject to regulatory approvals and customary conditions.

Medline is a Northfield, Ill.-based manufacturer and distributor of health care supplies to hospitals, post-acute settings, physician offices and surgery centers.

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