STV breaks; Pretium, Solenis revised; BMC, Team, American Bath, Consilio accelerated

By Sara Rosenberg

New York, Sept. 20 – STV Group’s add-on term loan made its way into the secondary market on Monday, with levels quoted above its original issue discount.

Moving to the primary market, Pretium Packaging (Pretium PKG Holdings Inc.) modified its first -and second-lien term loan sizes, and Solenis revised its term loan B amount, outlined U.S. and euro tranche sizes, tightened spread and original issue discount on the U.S. debt and added a leverage-based step-down.

Also, BMC Software, Team Services Group, American Bath Group (CP Atlas Buyer Inc.) and Consilio (GI Consilio Parent LLC) moved up the commitment deadlines for their loan transactions.

Additionally, Medline Industries, Lakeshore Learning (Lakeshore Intermediate LLC), Cable & Wireless (Coral-U.S. Co-Borrower LLC), Therma Holdings (Refficiency Holdings), Mold-Rite Plastics LLC (Valcour Packaging LLC) and Starwood Property Mortgage disclosed price talk with launch.

Furthermore, Domtar Corp., J&J Gaming (J&J Ventures Gaming LLC), AOC LLC and Pacific Bells joined this week’s primary calendar.

STV hits secondary

STV Group’s $45 million add-on term loan allocated late Friday and freed to trade on Monday morning, with levels quoted at 99¾ bid, par ½ offered, according to a market source.

Pricing on the add-on term loan is Libor plus 525 basis points with a 0% Libor floor and the debt was sold at an original issue discount of 99.5.

During syndication, the discount on the term loan was tightened from 99.

Macquarie Capital (USA) Inc. is leading the deal that will be used to fund an acquisition.

STV is an engineering, architectural, program/construction management, planning and environmental professional services firm with headquarters in New York and Douglassville, Pa.

Pretium retranches

Switching to the primary market, Pretium Packaging lifted its seven-year first-lien term loan to $1.25 billion from $1.215 billion and scaled back its eight-year second-lien term loan to $350 million from $365 million, according to a market source.

As before, the first-lien term loan is talked at Libor plus 400 bps with a 0.5% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and the second-lien term loan is talked at Libor plus 725 bps with a 0.5% Libor floor, a discount of 98.5 to 99 and call protection of 102 in year one and 101 in year two.

The company’s now $1.7 billion of credit facilities also include a $100 million ABL revolver.

Commitments continue to be due at 5 p.m. ET on Tuesday, the source added.

Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. are leading the deal that will be used to fund the acquisition of Alpha Consolidated Holdings Inc. (Alpha Packaging) from Irving Place Capital and refinance existing debt.

Pretium, a Clearlake Capital Group LP portfolio company, is a Chesterfield, Mo.-based designer and manufacturer of rigid plastic packaging solutions. Alpha is a St. Louis-based provider of packaging solutions.

Solenis updated

Solenis modified its seven-year term loan B (B2/B-) size to a $1.11 billion tranche and a €500 million tranche from a $1.4 billion equivalent U.S. and euro loan, with the split to be determined, a market source remarked.

In addition, pricing on the U.S. term loan was trimmed to Libor plus 375 bps from Libor plus 400 bps, a 25 bps step-down at 4.5x net first-lien secured leverage was added and the original issue discount was tightened to 99.5 from 99, the source said.

The 0.5% Libor floor and 101 soft call protection for six months on the U.S. term loan were unchanged.

Talk on the euro term loan is still Euribor plus 400 bps to 425 bps with a 0% floor, a discount of 99.5 and 101 soft call protection for six months.

Commitments continue to be due at 10 a.m. ET on Tuesday, the source added.

Goldman Sachs, BofA Securities Inc., Barclays, BMO Capital Markets, Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc., Nomura, HSBC, ING, Jefferies LLC, Macquarie and RBC Capital Markets are leading the deal.

Solenis plans notes

Solenis also intends to get $815 million of senior secured notes, €500 million of senior secured notes, $400 million of senior unsecured notes and €265 million of senior unsecured notes, updated from $1.4 billion equivalent U.S. and euro senior secured notes and $1 billion equivalent U.S. and euro senior unsecured notes, with U.S. and euro sizes to be determined.

The term loan debt and notes offerings will be used to help fund the buyout of the company by Platinum Equity and merger with Sigura Water, an existing Platinum Equity portfolio company.

Solenis is being bought from Clayton, Dubilier & Rice and BASF in a transaction with an implied enterprise value of $5.25 billion. Including the merger with Sigura, the total combined transaction value is about $6.5 billion.

Closing is expected before the end of the year, subject to regulatory approval and customary conditions.

Solenis is a Wilmington, Del.-based producer of specialty chemicals used in water-intensive industries. Sigura is an Alpharetta, Ga.-based provider of water treatment solutions.

BMC tweaks timing

BMC Software accelerated the commitment deadline for 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 deadline is now the close of business on Tuesday for U.S. accounts and 7 a.m. ET on Wednesday for euro accounts, revised from Sept. 23.

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. 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 25 bps step-down when senior secured net leverage is less than 5.9x, a 0.5% Libor floor, a discount of 99.5 and call protection of 102 in year one and 101 in year two.

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.

Team Services accelerated

Team Services moved up the commitment deadline for its fungible $110 million of incremental term loans to noon ET on Wednesday from 5 p.m. ET on Thursday, a market source said.

The debt consists of a $90 million incremental first-lien term loan due December 2027 talked with an original issue discount of 98 and 101 soft call protection for six months, and a $20 million incremental second-lien term loan due December 2028 talked with a discount of 97 and call protection of 102 in year one and 101 in year two.

Pricing on the incremental first-lien term loan is Libor plus 500 bps with a 1% Libor floor and pricing on the incremental second-lien term loan is Libor plus 900 bps with a 1% Libor floor, in line with existing first -and second-lien term loan pricing.

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

Pro forma for the transaction, the first-lien term loan will total $373 million and the second-lien term loan will total $125 million.

Team Services is a provider of employment administration and risk management solutions that facilitate self-directed home care.

American Bath moves deadline

American Bath changed the commitment deadline for its fungible $150 million incremental covenant-lite first-lien term loan (B2/B-) due November 2027 to 4 p.m. ET on Tuesday from 5 p.m. ET on Wednesday, according to a market source.

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, and the new debt is talked with an original issue discount of 99.

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.

Consilio changes timing

Consilio moved up the commitment deadline for its fungible $160 million incremental first-lien term loan due May 2028 to 5 p.m. ET on Tuesday from 5 p.m. ET on Wednesday, a market source remarked.

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 new debt is talked with an original issue discount of 99. The incremental term loan has 101 soft call protection through November 2021.

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.

Medline guidance

Medline Industries held its lender call on Monday morning and announced price talk on its $6 billion seven-year term loan and $1 billion equivalent euro seven-year term loan, according to a market source.

Talk on the U.S. term loan is Libor plus 350 bps to 375 bps with a 0.5% Libor floor and an original issue discount of 99 to 99.5, and talk on the euro term loan is Euribor plus 350 bps to 375 bps with a 0% floor and a discount of 99 to 99.5, the source said. Both loans have 101 soft call protection for six months.

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.

Medline being acquired

Medline will use the new term loans (B+/BB-) and expected issuances of $3.8 billion of secured notes and $4 billion of unsecured notes to help fund its buyout by Blackstone, Carlyle and Hellman & Friedman.

Commitments for the term loans are due at noon ET on Sept. 30, the source added.

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.

Lakeshore proposed terms

Lakeshore Learning came out with talk of Libor plus 375 bps to 400 bps with one leverage-based step-down, a 0.5% Libor floor and an original issue discount of 99.5 on its $580 million seven-year first-lien term loan that launched with an afternoon call, a market source remarked.

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

Commitments are due at noon ET on Sept. 29, the source added.

Jefferies LLC, BMO Capital Markets, Macquarie Capital (USA) Inc., Citizens and KeyBanc Capital Markets are leading the deal that will be used to help fund the buyout of the company by Leonard Green & Partners.

Lakeshore is a Carson, Calif.-based developer, distributor, and retailer of educational products and classroom furniture, primarily serving the Early Childhood Education and K-5 markets.

Cable & Wireless talk

Cable & Wireless held a lender call at noon ET, launching a $590 million eight-year covenant-lite term loan B-6 (//BB-) at talk of Libor plus 275 bps to 300 bps with a 0% 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 noon ET on Thursday, the source added.

Deutsche Bank Securities Inc., BNP Paribas Securities Corp., BofA Securities Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, FCIB, Goldman Sachs Bank USA, JPMorgan Chase Bank, RBC Capital Markets, Bank of Nova Scotia and Societe Generale are leading the deal that will be used to redeem in full the company’s existing $500 million of senior notes due 2026, redeem $55 million of the existing $550 million senior secured notes due 2027, and pay transaction-related premium, fees and expenses.

Cable & Wireless, a subsidiary of Liberty Latin America, is a provider of telecom services in Central America and the Caribbean.

Therma launches

Therma Holdings launched on its afternoon call its fungible $350 million incremental first-lien term loan due December 2027 with original issue discount talk in the 99.5 area and its fungible $67,816,310 incremental first-lien delayed-draw term loan due December 2027 with discount talk of 99, a market source said.

Pricing on the incremental term loan debt is Libor plus 400 bps with two 25 bps leverage-based step-downs and a 25 bps step-down following the consummation of a qualified initial public offering, and a 0.75% Libor floor, in line with existing first-lien term loan pricing.

The incremental delayed-draw ticking fee is the full spread at close, same as the existing delayed-draw fee.

Commitments are due at noon ET on Sept. 27, the source added.

Jefferies LLC, Societe Generale, BMO Capital Markets Corp. and MUFG are leading the deal that will be used to fund acquisitions.

Pro forma for the transaction, the first-lien term loan will total $738.05 million and the first-lien delayed-draw term loan will total $142,816,310, the source added.

Therma Holdings is a San Jose, Calif.-based full life-cycle energy solutions provider.

Mold-Rite guidance

Mold-Rite Plastics disclosed price talk on its $400 million seven-year covenant-lite first-lien term loan (B2/B-) and $160 million eight-year covenant-lite second-lien term loan (Caa2/CCC) that launched with a call in the morning, according to a market source.

The first-lien term loan is talked at Libor plus 400 bps with a 0.5% Libor floor and an original issue discount of 99, 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 said.

The first-lien term loan has 101 soft call protection for six months, and the second-lien term loan has call protection of 102 in year one and 101 in year two.

Commitments are due at noon ET on Sept. 30.

Deutsche Bank Securities Inc. is the left lead on the deal, which will be used to help fund the buyout of the company by Clearlake Capital Group LP from Irving Place Capital.

Mold-Rite is a Plattsburgh, N.Y.-based manufacturer of packaging components.

Starwood holds call

Starwood Property Mortgage hosted a lender call at 2 p.m. ET to launch a fungible $150 million add-on term loan B (BB-) talked with an original issue discount of 99.5, a market source remarked.

Pricing on the add-on term loan is Libor plus 350 bps with a 0.75% Libor floor.

Commitments are due at 5 p.m. ET on Sept. 27, the source added.

JPMorgan Chase Bank is leading the deal that will be used to repay repurchase facilities.

Along with the term loan, the company is looking to amend a covenant in its existing credit agreement.

Starwood Property Mortgage is a finance company.

Domtar on deck

Domtar scheduled a lender call for 11 a.m. ET on Tuesday to launch $775 million of senior secured term loans (Ba2/BB+), split between a $525 million seven-year term loan B and a $250 million delayed-draw term loan B, according to a market source.

The term loan debt has 101 soft call protection for six months, the source said.

Barclays, BMO Capital Markets, Credit Suisse Securities (USA) LLC and Wells Fargo Securities LLC are leading the deal that will be used with senior secured notes to fund the acquisition of the company by Paper Excellence BV for $55.50 per share and finance the potential redemption of Domtar’s existing senior unsecured notes.

The delayed-draw term loan is available for 90 days and only to fund redemptions of the senior unsecured notes through a change of control offer.

Closing is expected this year, subject to customary conditions.

Domtar is a Fort Mill, S.C.-based provider of fiber based products. Paper Excellence is a British Columbia-based diversified manufacturer of pulp and specialty, printing, writing and packaging papers.

J&J readies deal

J&J Gaming will hold a lender call at 11 a.m. ET on Tuesday to launch a fungible $73 million incremental covenant-lite first-lien term loan due April 2028, a market source said.

Like the existing first-lien term loan, the incremental term loan is priced at Libor plus 400 bps with a 0.75% Libor floor and has 101 soft call protection through Oct. 26.

Original issue discount talk on the incremental term loan is not yet available.

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

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

J&J is an operator of video gaming terminals in Illinois.

AOC coming soon

AOC set a lender call for 11 a.m. ET on Tuesday to launch a $1.26 billion seven-year term loan B, according to a market source.

The term loan has 101 soft call protection for six months, the source said.

BofA Securities Inc., RBC Capital Markets, BNP Paribas Securities Corp., Citigroup Global Markets Inc. and Goldman Sachs Bank USA are leading the deal that will be used to help fund the buyout of the company by Lone Star Funds from CVC Capital Partners.

AOC is a Schiphol, Netherlands-based producer of specialty resins.

Pacific Bells joins calendar

Pacific Bells emerged with plans to hold a lender call at 1 p.m. ET on Thursday to launch $585 million of credit facilities, a market source remarked.

The facilities consist of a $50 million five-year revolver, a $460 million seven-year covenant-lite term loan B and a $75 million seven-year covenant-lite delayed-draw term loan B, the source added.

Citizens Bank, Fifth Third and Truist are leading the deal that will be used to help fund the buyout of the company by Orangewood Partners.

Closing is subject to regulatory approval and certain commercial arrangements.

Pacific Bells is the fifth largest franchisee of Taco Bell restaurants in the U.S.

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