Inmarsat, Howden, Resolute, Careismatic, Calpine, Cambrex, Vestcom break for trading

By Sara Rosenberg

New York, Jan. 22 – Inmarsat plc firmed the spread on its first-lien term loan B at the low end of guidance, Howden trimmed pricing on its term loan B and finalized the issue price at the tight side of talk, and Resolute Investment Managers increased the size of its add-on first-lien term loan, and then all of these deals freed up for trading on Friday.

Also making their way into the secondary market during the session were deals from Careismatic Brands, Calpine Corp., Cambrex Corp. and Vestcom Parent Holdings Inc.

In more happenings, UFC Holdings LLC added a leverage-based pricing step-down to its first-lien term loan B, Highline Aftermarket Acquisition LLC set the issue price on its add-on term loan at the tight end of talk, and Kestra Financial Inc. finalized the original issue discount on its add-on first-lien term loan at the midpoint of guidance.

Furthermore, Alion Science & Technology Corp. came to market with a repricing transaction, and Foundation Building Materials Inc., TricorBraun Holdings Inc., MHS Holdings Inc., NielsenIQ, Altium Packaging LLC, Idera Inc., PDC Wellness & Personal Care (Parfums Holding Co. Inc.) and Aldevron LLC joined the near-term primary calendar.

Inmarsat updated, trades

Inmarsat set pricing on its $1.737 billion first-lien term loan B due Dec. 12, 2026 at Libor plus 350 basis points, the low end of the Libor plus 350 bps to 375 bps, according to a market source.

As before, the term loan has a 1% Libor floor, a par issue price and 101 soft call protection for six months.

On Friday, the term loan freed to trade, with levels quoted at par ¼ bid, par ¾ offered, another source added.

Barclays is the left lead on the deal that will be used to reprice an existing first-lien term loan B down from Libor plus 450 bps with a 1% Libor floor.

Inmarsat is a London-based satellite telecommunications company.

Howden flexes, frees up

Howden cut pricing on its $889 million term loan B to Libor plus 400 bps from talk in the range of Libor plus 425 bps to 450 bps and set the issue price at par, the tight end of the 99.875 to par talk, a market source remarked.

The term loan still has a 0% Libor floor and 101 soft call protection for six months.

During the session, the term loan B made its way into the secondary market, with levels quoted at par ¼ bid, par ¾ offered, another source added.

J.P. Morgan Securities LLC is leading the deal that will be used to reprice an existing term loan B down from Libor plus 525 bps with a 0% Libor floor.

Howden is a Glasgow, Scotland-based provider of mission critical air and gas handling products and services to the industrial, power, oil & gas and mining industries.

Resolute upsizes, breaks

Resolute Investment Managers lifted its fungible add-on first-lien term loan (Ba3/B+) due April 2024 to $75 million from $40 million due to strong demand, according to a market source.

Like the existing roughly $305 million first-lien term loan, the add-on term loan is priced at Libor plus 375 bps with a 1% Libor floor. The add-on term loan has an original issue discount of 99.75.

Commitments remained due at noon ET on Friday and the add-on term loan broke in the afternoon, with levels quoted at par ¼ bid, 101¼ offered, a trader added.

RBC Capital Markets and BMO Capital Markets are leading the deal that will be used with cash from the balance sheet to fund a shareholder distribution.

Closing is expected during the week of Jan. 25.

Resolute Investment, a Kelso & Co. portfolio company, is an Irving, Tex.-based diversified asset management platform that partners with investment managers on both an affiliated and unaffiliated basis.

Careismatic tops OIDs

Careismatic Brands’ bank debt surfaced in the secondary market in the afternoon, with the $605 million seven-year covenant-lite first-lien term loan quoted at par bid, par ¾ offered and the $110 million eight-year covenant-lite second-lien term loan quoted at par bid, 102 offered, a market source said.

Pricing on the first-lien term loan is Libor plus 325 bps with a 0.5% Libor floor and it was sold at an original issue discount of 99.75. The loan has 101 soft call protection for six months.

The second-lien term loan is priced at Libor plus 725 bps with a 0.5% Libor floor and was issued at a discount of 99. This tranche has call protection of 102 in year one and 101 in year two.

During syndication, the first-lien term loan was upsized from $575 million, pricing was lowered from talk in the range of Libor plus 375 bps to 400 bps, the floor was reduced from 0.75% and the discount was tightened from 99.5. Also, the second-lien term loan was downsized from $140 million, the spread was trimmed from talk in the range of Libor plus 750 bps to 775 bps, the floor was cut from 0.75% and the discount was revised from 98.5.

The company’s $815 million of credit facilities also include a $100 million five-year revolver.

Careismatic lead banks

UBS Investment Bank, Credit Suisse Securities (USA) LLC, Barclays, RBC Capital Markets, Macquarie Capital (USA) Inc. and BMO Capital Markets are leading Careismatic Brands’ credit facilities.

Proceeds will be used to help fund the buyout of the company by Partners Group from New Mountain Capital.

Careismatic Brands is a Chatsworth, Calif.-based designer, marketer and distributor of medical apparel, corporate identity apparel, school uniforms and adaptive clothing.

Calpine frees up

Calpine’s $936 million senior secured term loan B-9 (Ba2/BB+) due April 2026 also began trading, with levels quoted at par bid, par ¼ offered, according to a market source.

Pricing on the term loan is Libor plus 200 bps with a 0% Libor floor and it was issued at par. The loan has 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to reprice an existing term loan B-9 due April 2026 down from Libor plus 225 bps with a 0% Libor floor.

Calpine is a Houston-based provider of power generation services.

Cambrex starts trading

Cambrex’s $928.5 million first-lien term loan freed up as well, with levels quoted at par 3/8 bid, par 7/8 offered, a trader remarked.

Pricing on the term loan is Libor plus 350 bps with a 0.75% Libor floor and it was issued at par. The debt has 101 soft call protection for six months.

RBC Capital Markets is leading the deal that will be used to reprice an existing term loan down from Libor plus 450 bps with a 1% Libor floor.

Cambrex is an East Rutherford, N.J.-based small molecule company providing drug substance, drug product and analytical services.

Vestcom hits secondary

Vestcom’s fungible $120 million incremental first-lien term loan B (B2/B) broke for trading too, with levels quoted at 99¾ bid, par ¼ offered, according to a market source.

Pricing on the incremental term loan is Libor plus 400 bps with a 1% Libor floor, in line with pricing on the company’s existing $419 million first-lien term loan, and the new debt was sold at an original issue discount of 99.55. The term loan debt has 101 soft call protection for six months.

During syndication, the incremental term loan was upsized from $100 million.

Antares Capital is leading the deal that is being used to fund a distribution to shareholders.

A 12.5 bps amendment fee was offered to all consenting lenders.

Closing was expected on Friday.

Vestcom, a Charlesbank Capital Partners portfolio company, is a Little Rock, Ark.-based provider of outsourced technology and services that support price communication, merchandising and promotion execution at the shelf edge.

UFC tweaked

Back in the primary market, UFC Holdings added a 25 bps pricing step-down at less than 3.5x first-lien net leverage to its $2.453 billion first-lien term loan B (B2/B) due April 2026, a market source said.

Initial pricing on the term loan is still at Libor plus 300 bps, and the debt still has a 0.75% Libor floor, a par issue price and 101 soft call protection for six months.

Recommitments were due at 2:45 p.m. ET on Friday and the loan allocated late in the day, the source added.

Goldman Sachs Bank USA and KKR Capital Markets are leading the deal that will be used to merge an existing $2.304 billion term loan B and an existing $150 million term loan B-2 into one tranche and reprice the debt from Libor plus 325 bps with a 1% Libor floor.

UFC is a Las Vegas-based mixed martial arts organization and pay-per-view event provider.

Highline firms terms

Highline Aftermarket finalized the issue price on its fungible $95 million add-on term loan at par, the tight end of the 99.75 to par talk, according to a market source.

The add-on term loan is priced at Libor plus 450 bps with a 0.75% Libor floor, in line with the existing term loan.

J.P. Morgan Securities LLC is leading the deal that will be used to repay revolver borrowings.

Highline is a Memphis, Tenn.-based distributor of automotive aftermarket products.

Kestra sets OID

Kestra Financial accelerated the commitment deadline for its fungible $50 million add-on first-lien term loan (B3/B) due June 2026 to noon ET on Friday from Tuesday and then set the original issue discount at 99.75, the midpoint of the 99.5 to par talk, a market source said.

Pricing on the add-on term loan is Libor plus 425 bps with a 0% Libor floor, in line with existing first-lien term loan pricing.

Allocations went out on Friday, the source added.

UBS Investment Bank is leading the deal that will be used for general corporate purposes.

Kestra Financial, a Warburg Pincus LLC portfolio company, is an Austin, Tex.-based provider of an advisor platform to financial professionals.

Alion holds call

Alion Science & Technology hosted a lender call on Friday to launch a roughly $360 million first-lien term loan (B1/BB-) due July 2024 talked at Libor plus 275 bps with a 0.75% Libor floor, a par issue price and 101 soft call protection for six months, a market source remarked.

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

UBS Investment Bank is leading the deal that will be used to reprice an existing term loan down from Libor plus 375 bps with a 1% Libor floor.

Alion, a portfolio company of Veritas Capital, is a McLean, Va.-based provider of advanced engineering, intelligence surveillance and reconnaissance, research development test and evaluation, live virtual and constructive training, electronic warfare, and cybersecurity solutions primarily to U.S. Department of Defense and intelligence community customers.

Foundation Building on deck

Foundation Building Materials set a lender call for 2 p.m. ET on Monday to launch a $1.26 billion seven-year covenant-lite first-lien term loan (B2), according to a market source.

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

Commitments are due at noon ET on Feb. 4.

Credit Suisse Securities (USA) LLC, BofA Securities Inc., Deutsche Bank Securities Inc. and Truist are leading the deal that will be used with equity to fund the buyout of the company by American Securities LLC for $19.25 per share in an all-cash transaction valued at $1.37 billion, including outstanding debt, and the acquisition of Beacon’s interior construction products business for $850 million.

Closing is expected this quarter, subject to customary conditions and receipt of regulatory clearances.

Foundation Building is a Santa Ana, Calif.-based distributor of specialty building products, including wallboard, suspended ceiling systems, metal framing and other products.

TricorBraun coming soon

TricorBraun scheduled a lender call for noon ET on Monday to launch a $1.234 billion seven-year covenant-lite first-lien term loan, of which $1.034 billion will be funded and $200 million is delayed-draw, a market source said.

The term loan has 101 soft call protection for six months, and delayed-draw term loan ticking fees are half the margin from days 61 to 120 and the full margin thereafter, the source continued.

The company’s $1.374 billion of credit facilities also include a $140 million ABL revolver.

Commitments are due at 5 p.m. ET on Feb. 3, the source added.

Credit Suisse Securities (USA) LLC, Antares Capital, Nomura and UBS Investment Bank are leading the deal that will be used with $376 million of privately placed second-lien notes to help fund the buyout of the company by Ares Management Corp. and the Ontario Teachers’ Pension Plan Board from AEA Investors.

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

TricorBraun is a St. Louis-based provider of packaging products.

MHS readies deal

MHS Holdings will hold a lender call at 2 p.m. ET on Monday to launch a fungible $140 million add-on term loan B-2, according to a market source.

The add-on loan will be fungible with the company’s $145 million term loan B-2 that priced last year at Libor plus 625 bps with a 1% Libor floor.

Original issue discount talk on the add-on term loan is not yet available, the source said.

RBC Capital Markets is the left lead on the deal that will be used to fund an acquisition.

is the sponsor.

MHS, a Thomas H. Lee Partners LP portfolio company, is a Mt. Washington, Ky.-based material handling systems integration and automation provider.

NielsenIQ timing emerges

NielsenIQ set a lender call for 10:30 a.m. ET on Monday to launch its previously announced $1.95 billion equivalent of secured credit facilities, comprised of a $350 million revolver, a $950 million term loan and a $650 million equivalent euro term loan, a market source remarked.

BofA Securities Inc., UBS Investment Bank, Barclays, Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., RBC Capital Markets, MUFG, Wells Fargo Securities LLC, Fifth Third, BMO Capital Markets, BNP Paribas Securities Corp., Capital One, Mizuho, SMBC and TD Securities are leading the deal, with BofA the left lead on the U.S. loan and UBS the left lead on the euro loan.

Proceeds will be used with up to $989 million of equity to fund the buyout of the company by Advent International and James Peck, former chief executive officer of TransUnion, from Nielsen Holdings plc for $2.7 billion, and Nielsen will also receive warrants in the new company exercisable in certain circumstances.

Closing is expected in the second quarter, subject to approval by Nielsen shareholders, regulatory approvals, consultation with the works council and other customary conditions.

NielsenIQ is a Chicago-based provider of actionable information to consumer packaged goods manufacturers and retailers.

Altium joins calendar

Altium Packaging emerged with plans to hold a lender call at 10:30 a.m. ET on Monday to launch a new loan transaction to current and prospective lenders, according to a market source.

Citigroup Global Markets Inc. is leading deal.

Altium is an Atlanta-based rigid plastic packaging manufacturer.

Idera plans call

Idera scheduled a lender call for 3 p.m. ET on Tuesday to launch $780 million of credit facilities, a market source said.

The facilities consist of a $100 million five-year revolver, a non-fungible $330 million seven-year incremental first-lien term loan that has 101 soft call protection for six months, and a $350 million eight-year second-lien term loan that has hard call protection of 102 in year one and 101 in year two, the source continued.

Jefferies LLC is leading the deal, which will be used to fund the majority acquisition of Idera by Partners Group AG. Current shareholders HGGC and TA Associates will continue as significant equity investors in the company, along with Idera’s management team.

The company’s existing $786,773,687 first-lien term loan due June 2024 is staying in place.

In addition, the company will be seeking a concurrent amendment to its existing bank debt to facilitate the transaction, the source added.

Idera is a Houston-based provider of database, application development and testing software.

PDC readies incremental

PDC Wellness set a lender call for noon ET on Monday to launch a fungible $183 million incremental covenant-lite first-lien term loan due June 2024, according to a market source.

Pricing on the incremental term loan is Libor plus 400 bps with a step-up to Libor plus 425 bps above 5.85x total net leverage and a 0% Libor floor, in line with existing first-lien term loan pricing.

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

Nomura is leading the deal that will be used to repay an existing second-lien term loan and pay fees and expenses.

PDC is a Stamford, Conn.-based beauty and personal care products company.

Aldevron on deck

Aldevron will hold a lender call at 1 p.m. ET on Monday to launch a $40 million add-on term loan B and a repricing of its existing $833,948,747 term loan B, a market source remarked.

Morgan Stanley Senior Funding Inc. is leading the deal.

The add-on term loan will be used to repay some second-lien term loan borrowings and pay fees and expenses related to the transaction.

Current pricing on the existing first-lien term loan is Libor plus 425 basis points with a 1% Libor floor.

EQT Partners AB and TA Associates are the sponsors.

Aldevron is a Fargo, N.D.-based supplier of nucleic acids, proteins and antibodies.

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