White Cap, Cambium, FLY, Alliant, Genesys break; Revint, C.H.I., Bumble, Tegra118 revised

By Sara Rosenberg

New York, Oct. 8 – White Cap (AppleCaramel Buyer LLC) finalized the spread on its first-lien term loan B at the low end of guidance and made some changes to documentation, and Cambium Learning Group moved some funds between its first-and second-lien term loans and adjusted the original issue discount on the second-lien debt, and then both of these deals freed to trade on Thursday.

Also, before emerging in the secondary market during the session, FLY Leasing Ltd. lifted pricing on its term loan B and revised the issue price, Alliant Holdings Intermediate LLC downsized its term loan B-3 and tightened the original issue discount, and Genesys shifted some funds between its U.S. and euro term loans and set spreads at the low end of guidance.

In other news, Revint Solutions increased the size of its term loan B, raised the spread, widened the original issue discount and sweetened the call protection, and C.H.I. Overhead Doors Inc. reduced pricing on its extended term loan, and set the issue price and amendment fee at the tight side of guidance.

Furthermore, Bumble (Buzz Finco LLC) increased the size of its incremental term loan B and firmed the spread and the issue price at the tight end of talk, and Tegra118 Wealth Solutions Inc. upsized its incremental first-lien term loan B and finalized the original issue discount at the tight end of talk.

Additionally, 1-800 Contacts Inc. (CNT Holdings I Corp.), Mega Broadband Investments Holdings LLC, Team Services Group and Russell Investment Management LLC disclosed price talk with launch, and NorthStar surfaced with new deal plans.

White Cap updated

White Cap firmed pricing on its $2.335 billion seven-year covenant-lite first-lien term loan B (B2/B) at Libor plus 400 basis points, the tight end of the Libor plus 400 bps to 425 bps talk, according to a market source.

In addition, the MFN was changed to 50 bps for 12 months from 75 bps for six months, the inside maturity basket was removed and the unutilized restricted payment builder for incremental debt was cut to 100% from 200%, the source said.

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.

Deutsche Bank Securities Inc., RBC Capital Markets LLC, Jefferies LLC, BNP Paribas Securities Corp., Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Mizuho and Nomura are leading the deal.

White Cap frees up

Recommitments for White Cap’s term loan B were due at 10:30 a.m. ET on Thursday and the debt began trading in the afternoon, with levels quoted by one trader at 99½ bid, 99 7/8 offered and by a second trader at 99 3/8 bid, 99 7/8 offered.

The new loan will be used with $640 million of senior notes to help fund the buyout of the company by Clayton, Dubilier & Rice from HD Supply Holdings Inc. and combination with Construction Supply Group.

Upon closing, Clayton, Dubilier & Rice funds will hold a 65% ownership interest in the combined company, and the current shareholders of Construction Supply Group, led by Sterling Group, will hold a 35% interest.

The combined transaction, valued at about $4 billion, is subject to customary regulatory approvals.

Closing is expected on Oct. 19.

White Cap is a distributor of specialty concrete and construction products. Construction Supply Group is a distributor of specialty concrete and masonry accessories.

Cambium restructured

Cambium Learning Group upsized its fungible incremental first-lien term loan (B2/B-/BB) due December 2025 to $450 million from $425 million, according to a market source. The incremental first-lien term loan is still priced at Libor plus 450 bps with a 0% Libor floor, in line with the existing $609 million first-lien term loan, and has an original issue discount of 98 and 101 soft call protection for six months.

As for the non-fungible incremental second-lien term loan (Caa2/CCC/CCC+) due December 2026, it was reduced to $125 million from $150 million and the discount was modified to 96 from 97, the source said. This tranche remained priced at Libor plus 850 bps with a 1% Libor floor, and has hard call protection of 102 in year one and 101 in year two.

RBC Capital Markets, Deutsche Bank Securities Inc., KKR Capital Markets, Macquarie Capital (USA) Inc., Barclays and BMO Capital Markets are leading the deal.

Cambium hits secondary

Recommitments for Cambium’s term loans were due at 1 p.m. ET on Thursday and the debt began trading in the afternoon, with the incremental first-lien term loan quoted at 98¼ bid, 98¾ offered and the incremental second-lien term loan quoted at 96½ bid, 97½ offered, a trader added.

The new debt will be used with balance sheet cash and equity from Veritas Capital, the current owner of Cambium, to fund the acquisition of Rosetta Stone Inc. for $30 per share, representing an equity value of about $792 million.

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

Cambium is a Dallas-based end-to-end provider of K-12 instructional and assessment solutions. Rosetta Stone is an Arlington, Va.-based provider of digital literacy and language education solutions to K-12, consumer and enterprise customers.

FLY tweaked, breaks

FLY Leasing raised pricing on its $180 million five-year senior secured term loan B (Ba3/BBB-) to Libor plus 600 bps from talk in the range of Libor plus 525 bps to 550 bps and revised the original issue discount to 95.5 from talk in the range of 96 to 97, a market source said.

The term loan still has a 1% Libor floor and is non-callable for one year.

The term loan freed to trade in the morning, with levels quoted at 96 bid, 97 offered, a trader added.

RBC Capital Markets and MUFG are leading the deal that will be used for general corporate purposes, to pay transaction related expenses and fees, and to potentially repay existing senior unsecured notes due 2021.

FLY is a Dublin-based aircraft lessor.

Alliant revised

Alliant Holdings scaled back its seven-year covenant-lite term loan B-3 to $325 million from $425 million and changed the original issue discount to 99.25 from 99, according to a market source.

The term loan B-3 is still priced at Libor plus 375 bps with a 0.5% Libor floor and has 101 soft call protection for one year.

The company’s now $725 million of senior secured credit facilities also include a $400 million five-year revolver.

Morgan Stanley Senior Funding Inc., J.P. Morgan Securities Inc., Truist, BofA Securities Inc., Capital One, Goldman Sachs Bank USA, RBC Capital Markets, Fifth Third, KKR Capital Markets and Macquarie Capital (USA) Inc. are leading the deal.

The term loan B-3 will be used with a $525 million senior secured notes offering, upsized from $425 million, a $350 million add-on senior unsecured notes offering and cash on hand to make a special distribution to the company’s parent, Alliant Holdings LP who will use the funds to repurchase certain equity interests, to complete acquisitions under letters of intent, and, if any proceeds remain, for general corporate purposes.

Alliant starts trading

Commitments for Alliant Holdings’ term loan B-3 were due at noon ET on Thursday, and the debt made its way into the secondary market in the afternoon, with levels quoted at 99 3/8 bid, 99 7/8 offered, a trader added.

Along with the term loan financing, the company is amending its existing $2.039 billion covenant-lite term loan B due May 10, 2025 and the $523 million covenant-lite term loan B-2 due May 10, 2025 to allow for the recapitalization.

The amended term loan B will be priced at Libor plus 325 bps with no-step-down and a 0% Libor floor, and the amended term loan B-2 will remain priced at Libor plus 325 bps with a 0% Libor floor, and both loans will get 101 soft call protection for one year.

Lenders were offered a 25 bps amendment fee.

Closing is expected late in the week of Oct. 12.

Alliant is a Newport Beach, Calif.-based specialty insurance brokerage firm.

Genesys retranches, frees up

Genesys cut its seven-year U.S. term loan B to $2.7 billion from $2.825 billion and raised its seven-year euro term loan B to €555 million ($650 million equivalent) from $525 million euro equivalent, according to a market source.

Also, pricing on the U.S. term loan firmed at Libor plus 400 bps, the low end of the Libor plus 400 bps to 425 bps talk, while the 0.75% Libor floor and original issue discount of 99 were unchanged.

Pricing on the euro term loan was set at Euribor plus 425 bps, the low end of the Euribor plus 425 bps to 450 bps talk, the source said. This tranche still has a 0% floor.

Both term loans have 101 soft call protection for six months.

Recommitments were due at 11 a.m. ET on Thursday and the U.S. term loan broke for trading during the session, with levels quoted at 99 3/8 bid, 99¾ offered, another source added.

BofA Securities Inc., Goldman Sachs Bank USA, Citigroup Global Markets Inc., RBC Capital Markets, Wells Fargo Securities LLC and Credit Suisse Securities (USA) LLC are leading the $3.35 billion equivalent of term loans (B3/B-) that will be used to refinance existing debt and fund a dividend.

Genesys is a Daly City, Calif.-based provider of omnichannel customer experience and contact center solutions.

Revint reworked

Back in the primary market, Revint Solutions lifted its seven-year term loan B to $640 million from $630 million, revised pricing to Libor plus 500 bps from Libor plus 425 bps, modified original issue discount talk to a range of 95 to 96 from 98.5 and then finalized it at 95.5 later in the day, extended the 101 soft call protection to one year from six months and made some changes to documentation, a market source remarked.

The term loan still has a 0.75% Libor floor.

The company’s now $715 million of credit facilities (B3/B-) also include a $75 million revolver.

Goldman Sachs Bank USA, Deutsche Bank Securities Inc., Jefferies LLC, Barclays and KeyBanc Capital Markets are leading the deal that will fund the acquisition of and merger with Triage Consulting Group, a health care revenue integrity company, and refinance existing Revint debt. The funds from the upsizing will be used to pay incremental fees and expenses in conjunction with this transaction.

The merger is being facilitated by New Mountain Capital LLC.

Closing is expected during the week of Oct. 12.

Revint is a Plano, Tex.-based provider of revenue integrity and recovery services to hospitals and health systems.

C.H.I. cuts spread

C.H.I. Overhead Doors trimmed pricing on its extended $415.5 million term loan due July 2025 to Libor plus 350 bps from Libor plus 375 bps, firmed the original issue discount at 99.75, the tight end of the 99.5 to 99.75 talk, and set the amendment fee for existing lenders at 25 bps, the low end of the 25 bps to 50 bps talk, a market source said.

The term loan still has a 1% Libor floor and 101 soft call protection for six months.

Commitments remained due at the close of business on Thursday, the source added.

UBS Investment Bank and KKR Capital Markets are leading the deal that will extend the maturity on the existing term loan by three years.

C.H.I. is an Arthur, Ill.-based manufacturer and marketer of overhead garage doors.

Bumble changes emerge

Bumble upsized its senior secured incremental covenant-lite term loan B due Jan. 29, 2027 to $275 million from $200 million, set pricing at Libor plus 325 bps, the low end of the Libor plus 325 bps to 350 bps talk, and firmed 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.

Citigroup Global Markets Inc., Barclays, HSBC Securities (USA) Inc., RBC Capital Markets, SMBC and Blackstone Securities Partners are leading the deal that will be used with cash on hand to fund a distribution to shareholders.

With the upsize, an amendment and consent is being sought from lenders to add a new one-time dividend basket equal to $75 million, the source said.

Commitments and consents are due at noon ET on Friday.

Gross leverage is 4.6x and net leverage is 4.2x.

Bumble, also known as MagicLab, is a provider of online dating and social networking services.

Tegra118 upsized

Tegra118 Wealth Solutions raised its fungible incremental covenant-lite first-lien term loan B due Feb. 18, 2027 to $25 million from $20 million and firmed the original issue discount at 99, the tight end of the 98.75 to 99 talk, according to a market source.

Like the existing term loan B, the incremental term loan is priced at Libor plus 475 bps with a 0% Libor floor.

Recommitments were due at 3 p.m. ET on Thursday, the source added.

Deutsche Bank Securities Inc. is leading the deal that will be used to repay revolver borrowings.

Tegra118, formerly known as Fiserv Investment Solutions, Inc., is a Warren, N.J.-based provider of financial services.

1-800 Contacts talk

1-800 Contacts held its lender call on Thursday and announced price talk on its first-and second-lien term loans, a market source remarked.

The $930 million seven-year covenant-lite first-lien term loan B is talked at Libor plus 375 bps to 400 bps with a 0.75% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months, and the $340 million eight-year covenant-lite second-lien term loan is talked at Libor plus 750 bps to 775 bps with a 0.75% Libor floor, a discount of 99 and hard call protection of 102 in year one and 101 in year two, the source continued.

The company’s $1.38 billion of senior secured credit facilities also include a $110 million five-year revolver.

Commitments are due on Oct. 20, the source added.

Morgan Stanley Senior Funding Inc., KKR Capital Markets, Jefferies LLC, UBS Investment Bank, Barclays, Credit Suisse Securities (USA) LLC, Societe Generale, Mizuho and MUFG are leading the deal, with Morgan Stanley 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 AEA Investors.

1-800 Contacts is a Draper, Utah-based seller of contact lenses.

Mega Broadband launches

Mega Broadband launched on its morning call its $650 million seven-year term loan B at talk of Libor plus 350 bps with a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, a market source said.

The company’s $725 million of senior secured credit facilities also include a $75 million five-year revolver.

Commitments are due on Oct. 20, the source added.

Truist Securities Inc., Credit Suisse Securities (USA) LLC, TD Securities (USA) LLC and Citizens are leading the deal that will be used to refinance existing debt and fund a distribution to existing shareholders.

On Sept. 28, it was announced that Cable One Inc. will make a strategic investment in Mega Broadband. Cable One will purchase a 45% minority stake from affiliates of GTCR for about $574.1 million in cash. The investment is expected to close in the fourth quarter.

Mega Broadband is a broadband provider.

Team Services guidance

Team Services Group announced price talk on its $285 million seven-year covenant-lite first-lien term loan (B2/B-) and $85 million eight-year covenant-lite second-lien term loan (Caa2/CCC) with its morning call, according to a market source.

Talk on the first-lien term loan is Libor plus 500 bps with a 1% Libor floor and an original issue discount of 98.5, and talk on the second-lien term loan is Libor plus 900 bps with a 1% Libor floor and a discount of 98, the source continued.

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.

The company’s $400 million of credit facilities also include a $30 million revolver (B2/B-).

Commitments are due at 5 p.m. ET on Oct. 21.

Credit Suisse Securities (USA) LLC and Jefferies LLC are leading the deal that will be used to fund the acquisition of the company by Alpine Investors and co-investors.

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

Russell proposes terms

Russell Investment Management came out with talk of Libor plus 300 bps to 325 bps with a 1% Libor floor and an original issue discount/extension fee of 99.5/50 bps on its $996 million senior secured first-lien term loan due May 30, 2025 that launched with a call in the morning, a market source remarked.

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

Commitments are due at noon ET on Oct. 15, the source added.

Barclays is leading the deal, which will be used to amend and extend by two years an existing $996 million term loan due 2023 priced at Libor plus 275 bps with a 1% Libor floor.

Russell is a Seattle-based asset manager.

NorthStar on deck

NorthStar surfaced with plans to hold a bank meeting on Oct. 15 to launch a $555 million first-lien term loan, according to a market source.

Macquarie Capital (USA) Inc. is leading the deal that will be used to refinance existing debt and to fund a dividend.

NorthStar is a financial services company.

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