Zurn accelerated; U.S. Anesthesia, DexKo, Caesars, PS, ConnectWise, Colonial, GIP set talk

By Sara Rosenberg

New York, Sept. 13 – In the primary market on Monday, Zurn Water Solutions moved up the commitment deadline for its term loan B by a week.

Also, U.S. Anesthesia Partners, DexKo Global Inc., Caesars Resort Collection LLC, PS Logistics, ConnectWise, Colonial First State, GIP II Blue Holding LP (HESM Holdco) and Global Medical Response released price talk with launch.

In addition, CHG Healthcare, Creation Technologies Inc. and BMC Software joined this week’s primary calendar.

Zurn revises timing

Zurn Water Solutions accelerated the commitment deadline for its $550 million seven-year covenant-lite senior secured term loan B (Ba3/BB) to 5 p.m. ET on Tuesday from noon ET on Sept. 21, a market source said.

Talk on the term loan is Libor plus 250 bps to 275 bps with a 0.5% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

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.

U.S. Anesthesia guidance

U.S. Anesthesia Partners held its call on Monday morning and announced price talk on its $1.6 billion seven-year first-lien term loan B (B2/B) and $350 million eight-year second-lien term loan (Caa2/CCC+), according to a market source.

Talk on the first-lien term loan is Libor plus 400 bps to 425 bps with a 0.5% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and talk on the second-lien term loan is Libor plus 750 bps with a 0.5% Libor floor, a discount of 98.5 and call protection of 102 in year one and 101 in year two, the source said.

Commitments are due at noon ET on Sept. 22.

Goldman Sachs Bank USA is the left lead on the deal that will be used with cash on the balance sheet to refinance existing debt and pay a dividend to shareholders.

U.S. Anesthesia is a Dallas-based physician-service organization that focuses on providing anesthesia services to patients.

DexKo proposed terms

DexKo came out with price talk on its $960 million seven-year covenant-lite first-lien term loan B (B-) and $1.25 billion equivalent euro seven-year covenant-lite first-lien term loan B (B1/B-) in connection with its morning lender call, a market source remarked.

Talk on the U.S. term loan is Libor plus 400 bps to 425 bps with a 0.5% Libor floor and an original issue discount of 99.5, and talk on the euro term loan is Euribor plus 425 bps with a 0% floor and a discount of 99.5, the source continued.

Both term loans have 25 bps pricing step-downs at 0.5x and 1x inside closing first-lien net leverage, and 101 soft call protection for six months.

The U.S. term loan includes a $160 million delayed-draw piece and the euro term loan includes a $120 million equivalent delayed-draw piece, with ticking fees of half the margin from days 61 to 180 and the full margin thereafter.

DexKo lead banks

Credit Suisse is the physical bookrunner and agent on DexKo’s term loans. Other bookrunners include Deutsche Bank Securities Inc., BMO Capital Markets, BofA Securities Inc., Barclays, BNP Paribas Securities Corp., CIBC, Goldman Sachs, RBC Capital Markets and TD Securities.

Commitments are due at noon ET on Sept. 23.

The new loans will be used to help fund the acquisition of the company by Brookfield Business Partners LP from KPS Capital Partners LP for $3.4 billion, and pay transaction fees and expenses.

DexKo is a Novi, Mich.-based producer of highly engineered products critical to safety and performance of towable industrial trailer and recreational trailer applications.

Caesars Resort repricing

Caesars Resort launched without a call in the morning a $1.787 billion covenant-lite first-lien term loan due July 2025 talked at Libor plus 375 bps with a 0% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Commitments are due at noon 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 Resort is a Nev.-based gaming and hospitality company.

PS Logistics talk

PS Logistics announced talk of Libor plus 425 bps with a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for six months on its $385 million seven-year term loan B (B1/B) that launched with a call in the morning, a market source said.

Commitments are due at noon ET on Sept. 23, the source added.

RBC Capital Markets, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and KKR Capital Markets are leading the term loan.

The company is also getting a $100 million ABL revolver for which Wells Fargo is the administrative agent.

The credit facilities will be used with $300 million of eight-year senior notes to help fund the buyout of the company by Gamut Capital Management LP and British Columbia Investment Management Corp. and refinance a roughly $300 million term loan B.

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

PS Logistics is a Birmingham, Ala.-based flatbed transportation and full-service logistics provider.

ConnectWise launches

ConnectWise launched on its morning call its $1.05 billion seven-year term loan B (B2//BB+) at talk of Libor plus 350 bps to 375 bps with a 0.5% Libor floor and an original issue discount of 99.5, according to a market source.

The term loan has 101 soft call protection for six months.

Commitments are due at 5 p.m. ET on Sept. 23, the source added.

BofA Securities Inc. is leading the deal that will be used to refinance an existing unitranche term loan due February 2025.

ConnectWise is a business management platform that is based in Tampa, Fla.

Colonial First guidance

Colonial First State held its call in the morning, launching its A$1 billion equivalent U.S. term loan (roughly $735 million) at talk of Libor plus 400 bps to 425 bps with a 0.5% Libor floor and an original issue discount of 99, a market source remarked.

The term loan has 101 soft call protection for six months.

The company is also getting an A$500 million term loan and a A$150 million delayed-draw term loan.

BofA Securities Inc., KKR Capital Markets, Jefferies LLC, Commonwealth, Credit Suisse, HSBC Securities, MUFG, UBS Investment Bank and Natixis are leading the deal (Ba2/BB) that will be used to help fund the buyout of a 55% interest in the company by KKR from Commonwealth Bank of Australia for about $1.7 billion.

Colonial First State is an Australia-based provider of superannuation, investment and retirement products.

GIP holds call

GIP II Blue Holding launched on its afternoon call its $750 million seven-year senior secured term loan B (B1) at talk of Libor plus 450 bps to 475 bps with a 1% Libor floor, an original issue discount of 98.5 to 99 and 101 hard call protection for one year, according to a market source.

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

Morgan Stanley Senior Funding Inc., Barclays, MUFG, Bank of Nova Scotia and SMBC are leading the deal that will be used to pay a special cash distribution to the holders of the borrower’s equity.

GIP directly and indirectly owns about 45% of Hess Midstream Operations LP (HESM Opco), a midstream infrastructure company. Hess Infrastructure Partners owns about 45% of HESM and public shareholders own the remaining roughly 10%.

Global Medical talk

Global Medical Response released original issue discount talk of 99.5 to 99.75 on its fungible $300 million add-on term loan B due March 2025 that launched with an afternoon call, a market source said.

Pricing on the add-on term loan is Libor plus 425 bps with a 1% Libor floor, in line with pricing on the company’s existing $1.404 billion term loan B due March 2025.

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

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

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

CHG readies deal

CHG Healthcare set a lender call for 1 p.m. ET on Tuesday to launch a $1.58 billion first-lien term loan (B1/B), according to a market source.

The company is also getting a $430 million privately placed second-lien term loan, the source said.

Goldman Sachs Bank USA, JPMorgan Chase Bank, Barclays, BMO Capital Markets and Citigroup Global Markets Inc. are leading the deal that will be used with cash on the balance sheet to refinance existing debt and pay a dividend to shareholders.

CHG is a Salt Lake City-based locum tenens staffing company.

Creation Technologies on deck

Creation Technologies will hold a lender call at 11 a.m. ET on Tuesday to launch a $455 million seven-year first-lien term loan B (B3/B) talked at Libor plus 475 bps to 500 bps with 25 bps step-downs at 0.5x and 1x inside closing date first-lien net leverage, a 0.5% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, a market source remarked.

Commitments are due at 5 p.m. ET on Sept. 23, the source added.

JPMorgan Chase Bank is leading the deal that will be used to fund the acquisition of IEC Electronics Corp. for $15.35 per share in cash, or about $242.3 million including net debt, refinance existing debt and pay fees and expenses associated with the transaction.

Closing is expected by early October, subject to the tender of at least two-thirds of IEC’s outstanding shares and regulatory approval.

Creation Technologies is a Boston-based electronic manufacturing services provider to original equipment manufacturers. IEC is a Newark, N.Y.-based provider of high-complexity, low-to-medium volume electronic manufacturing services.

BMC joins calendar

BMC Software scheduled a lender call for 10 a.m. ET on Wednesday to launch $1.165 billion equivalent of term loans, according to a market source.

The debt is split between a $500 million equivalent U.S. and euro first-lien term loan B (B2/B-) and a $665 million second-lien term loan (Caa2/CCC+), the source said.

Goldman Sachs Bank USA and KKR Capital Markets 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.

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