Davis, Cast & Crew, MHS, FullBloom, MetroNet, Anticimex, Baldwin, Yahoo, Protective break

By Sara Rosenberg

New York, Dec. 10 – Davis-Standard revised the original issue discount and call protection on its first-lien term loan B for a second time, and Cast & Crew Entertainment Services adjusted the issue price on its incremental first-lien term loan B, and then these deals freed to trade on Friday.

Also, before breaking for trading, MHS Holdings Inc. (Deliver Buyer Inc.) firmed the original issue discount on its add-on first-lien term loan B at the tight end of guidance, FullBloom set pricing on its term loan B at the low side of talk, and MetroNet finalized the original issue discount on its add-on first-lien term loan B at the tight end of talk.

Other deals to make their way into the secondary market during the session included Anticimex Inc., Baldwin Risk Partners LLC, Yahoo (AP Core Holdings II LLC) and Protective Industrial Products Inc.

In more happenings, Authentic Brands Group updated spreads and original issue discounts on its first- and second-lien term loans, Smart Start (Global IID Parent LLC) finalized pricing on its first- and second-lien term loans at the high end of talk, and Confluence Technologies Inc. increased the size of its incremental first-lien term loan and firmed the issue price at the tight side of guidance.

Furthermore, ICU Medical Inc., Madison Safety & Flow and Secretariat International accelerated the commitment deadlines for their loan transactions, and First Brands Group LLC released price talk with launch.

Davis tweaked, trades

Davis-Standard modified the original issue discount on its $285 million seven-year covenant-lite first-lien term loan B (B2/B) to 97 from revised talk of 98 and initial talk of 99, and changed the call protection to a 101 hard call for 18 months from revised talk of a 101 hard call for one year and initial talk of a 101 soft call for six months, according to a market source.

Pricing on the term loan remained at Libor plus 575 basis points with a 0.75% Libor floor.

Previously in syndication, the spread on the term loan was raised from talk in the range of Libor plus 500 bps to 525 bps, the Libor floor was increased from 0.5% and amortization was changed to 5% per annum.

In the morning, the term loan B made its way into the secondary market, with levels quoted at 97¼ bid, 98¼ offered, a trader added.

BMO Capital Markets and Stifel are leading the deal that will be used to help fund the buyout of the company by Gamut Capital.

Davis-Standard is a Pawcatuck, Conn., designer, developer and distributor of extrusion and converting technology.

Cast tightened, frees

Cast & Crew revised the original issue discount on its non-fungible $250 million seven-year incremental first-lien term loan B (B2/B) to 99.75 from talk in the range of 99 to 99.5, a market source said.

The incremental term loan is still priced at Libor plus 375 bps with a 0.5% Libor floor, and still has 101 soft call protection for six months, and ticking fees of half the margin from days 46 to 90 and the full margin thereafter.

Recommitments were due at 10:30 a.m. ET on Friday and the incremental term loan broke shortly thereafter, with levels quoted at 99 7/8 bid, par 3/8 offered, another source added.

Goldman Sachs Bank USA and RBC Capital Markets are leading the deal that will be used to fund the acquisition of the Team Cos., a Los Angeles-based payroll and production management solutions company servicing the advertising, music, and concert tours and live events industries, from TorQuest Partners.

Cast & Crew is a Burbank, Calif.-based provider of software and services to the entertainment production industry.

MHS finalized, breaks

MHS Holdings firmed the original issue discount on its fungible $285 million add-on first-lien term loan B (B3/B-) due May 1, 2024 at 99.75, the tight end of the 99.5 to 99.75 talk, according to a market source.

Pricing on the add-on term loan is Libor plus 500 bps with a 0% Libor floor, in line with the existing term loan B.

The add-on term loan freed to trade during the session, with levels quoted at 99 7/8 bid, par 3/8 offered, a trader added.

RBC Capital Markets is leading the deal that will be used to refinance an existing $282 million term loan B-2.

Pro forma for the transaction, the term loan B totals about $892 million.

Thomas H. Lee Partners LP is the sponsor.

MHS is a Mt. Washington, Ky.-based material handling systems integration and automation provider.

FullBloom firms

FullBloom finalized pricing on its $385 million term loan B due 2028 (B2/B-) at SOFR+CSA plus 425 bps, the low end of the SOFR+CSA plus 425 bps to 450 bps talk, and the term loan now has a 25 bps step-down at 3.99 first-lien leverage, revised from a 25 bps step-down at 4.24x first-lien leverage and a 25 bps step-down at 4.74x first-lien leverage, a market source remarked.

Also, the MFN was modified to 50 bps with a 12-month sunset and no carve-outs from 75 bps with a six-month sunset.

The term loan still has a 25 bps step-down upon an initial public offering, a 0.75% floor, an original issue discount of 99, CSA of 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate, and 101 soft call protection for six months.

FullBloom frees

Recommitments for FullBloom’s term loan B were due at 10 a.m. ET on Friday and the debt broke later in the day, with levels quoted at 99¼ bid, par ¼ offered, another source added.

JPMorgan Chase Bank, Jefferies LLC, Goldman Sachs Bank USA, Macquarie Capital (USA) Inc. and KKR Capital Markets are leading the deal that will help fund the buyout of the company by American Securities.

FullBloom is a provider of special education, instructional intervention, behavioral health and professional development solutions.

MetroNet sets terms, trades

MetroNet finalized the original issue discount on its fungible $125 million add-on first-lien term loan B (B2/B-) due June 2028 at 99.75, the tight end of the 99.5 to 99.75 talk, according to a market source.

Pricing on the add-on term loan is Libor plus 375 bps with a 0.75% Libor floor, same as the existing term loan.

The add-on term loan began trading in the afternoon, with levels quoted at 99¾ bid, par ¼ offered, another source added.

Goldman Sachs Bank USA, TD Securities (USA) LLC, Citizens Bank, Fifth Third and KKR Capital Markets are leading the deal that will be used to repay revolver borrowings.

Closing is expected this month.

Oak Hill and KKR Infrastructure are the sponsors.

MetroNet is an Evansville, Ind.-based provider of fiber optic high-speed broadband, video and voice services.

Anticimex tops OID

Anticimex’s non-fungible $375 million senior secured incremental covenant-lite term loan B (B2/B) due Nov. 16, 2028 broke during the day, with levels quoted at 99¾ bid, par ¼ offered, a trader said.

Pricing on the incremental term loan is Libor plus 400 bps with a 25 bps step-down at 5x first-lien net leverage and a 0.5% Libor floor. The debt was sold at an original issue discount of 99.5 and has 101 soft call protection for six months.

During syndication, the incremental term loan was upsized from $350 million, pricing firmed at the low end of the Libor plus 400 bps to 425 bps talk, the step-down was added and the discount was tightened from 99.

Morgan Stanley Senior Funding Inc. is leading the deal. Global Loan Agency Services Ltd. is the agent.

Proceeds will be used to refinance revolver drawings made in connection with acquisitions, fund cash to the balance sheet for general corporate purposes and pay fees and expenses related to the transaction.

Closing is expected during the week of Dec. 13.

Anticimex is a Stockholm-based preventive pest control company.

Baldwin frees up

Baldwin Risk Partners’ fungible $350 million add-on first-lien term loan B due 2027 emerged in the secondary market too, with levels quoted at 99 bid, 99½ offered, according to a market source.

Pricing on the add-on term loan is Libor plus 350 bps with a 0.5% Libor floor and it was sold at an original issue discount of 98.8. The debt has 101 soft call protection for six months.

During syndication, the add-on term loan was upsized from $250 million and the call protection was added.

JPMorgan Chase Bank is the left lead on the deal that will be used to repay revolver borrowings, to fund certain permitted acquisitions and for general corporate purposes.

Baldwin Risk, a subsidiary of BRP Group Inc., is a Tampa, Fla.-based insurance distribution firm.

Yahoo hits secondary

Yahoo’s fungible add-on term loans due Sept. 1, 2027 freed to trade in the morning, with the $130 million add-on term loan B-1 quoted at 99 5/8 bid, par offered and the $170 million add-on high-yield style term loan B-2 quoted at 99 7/8 bid, par ¼ offered, a trader remarked.

Pricing on the add-on term loans is Libor plus 550 bps with a 0.75% Libor floor, and the add-ons were sold at an original issue discount of 99.5.

During syndication, the tranching split of the $300 million of add-on term loans was determined and the discount on the loans firmed at the tight end of the 99 to 99.5 talk.

RBC and Apollo Global Funding are leading the deal that will be used for general corporate purposes.

Pro forma for the transaction, the term loan B-1 will total $780 million and the term loan B-2 will total $1.02 billion.

Yahoo is a technology and media company comprised of brands such as Yahoo and AOL.

Protective Industrial breaks

Protective Industrial Products’ fungible $80 million add-on covenant-lite term loan B due 2027 started trading as well, with levels quoted at 99¾ bid, par ¼ offered, a market source said.

Pricing on the add-on term loan is Libor plus 400 bps with a 0.75% Libor floor, in line with existing term loan pricing, and the new debt was sold at an original issue discount of 99.5. All of the term loan B debt is getting 101 soft call protection for six months.

Antares Capital, Citizens Bank and Bank of Ireland are leading the deal that will be used to fund an acquisition.

Pro forma for the transaction, the term loan B will total $650 million.

Protective Industrial Products is a Latham, N.Y.-based provider of personal protective equipment and industrial safety products.

Authentic Brands revised

Back in the primary market, Authentic Brands Group set pricing on its $1.675 billion seven-year incremental first-lien term loan (B1/B) at SOFR+CSA plus 350 bps, the low end of the SOFR+CSA plus 350 bps to 375 bps talk, and firmed the original issue discount at 99.25, the midpoint of the 99 to 99.5 talk, according to a market source.

The company also revised price talk on its $500 million eight-year second-lien term loan (Caa1/CCC+) to a range of SOFR+CSA plus 600 bps to 625 bps from SOFR+CSA plus 650 bps, before finalizing pricing at SOFR+CSA plus 600 bps, and changed the discount to 99.25 from 99, the source said.

The first-lien term loan still has a 0.5% floor and 101 soft call protection for six months, the second-lien term loan still has a 0.5% floor and hard call protection of 102 in year one and 101 in year two, and CSA is still 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

Recommitments were due at 2:30 p.m. ET on Friday, the source added.

Authentic Brands leads

BofA Securities Inc., Goldman Sachs Bank USA, KeyBanc Capital Markets, Jefferies LLC and UBS Investment Bank are leading Authentic Brands’ first-lien loan. BofA Securities is the lead on the second-lien loan.

The term loans will be used to fund the acquisition of Reebok from adidas for up to €2.1 billion, with the majority to be paid in cash at closing of the transaction and the remainder comprised of deferred and contingent consideration, and to finance a recapitalization in connection with the purchase of significant equity stakes in Authentic Brands by CVC Capital Partners and HPS Investment Partners.

Authentic Brands is a New York-based acquirer and manager of consumer brands in the fashion, sports and celebrity/entertainment sectors. Reebok is a footwear and clothing company.

Smart Start updated

Smart Start set pricing on its $385 million seven-year first-lien term loan (B2/B-) at Libor plus 450 bps, the high end of the Libor plus 425 bps to 450 bps talk, and on its $80 million eight-year second-lien term loan (Caa2/CCC) at Libor plus 775 bps, the high end of the Libor plus 750 bps to 775 bps talk, a market source remarked.

The company also made a number of lender-friendly documentation changes, the source continued.

As before, the first-lien term loan has 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 has a 0.5% Libor floor, a discount of 98 and hard call protection of 102 in year one and 101 in year two.

The company’s $505 million senior secured deal also includes a $40 million five-year revolver (B2/B-).

Recommitments were due at 2 p.m. ET on Friday and the debt allocated in the afternoon, the source added.

Jefferies LLC, BNP Paribas Securities Corp., Barclays and RBC Capital Markets are leading the deal that will be used to help fund the buyout of the company by Apollo.

Closing is expected this year, subject to customary conditions.

Smart Start is a Grapevine, Tex.-based provider of alcohol monitoring programs utilizing ignition interlock devices, vehicle breathalyzers mandated by government entities to DUI offenders in order to maintain licensure.

Confluence upsized

Confluence Technologies raised its fungible incremental first-lien term loan (B2/B) to $270 million from $260 million and set the original issue discount at 99.5, the tight end of the 99 to 99.5 talk, before allocating on Friday, according to a market source.

Pricing on the incremental first-lien term loan is Libor plus 375 bps with a 0.5% Libor floor, in line with existing term loan pricing, and all of the debt is getting 101 soft call protection for six months.

The company is also getting a fungible $100 million privately placed incremental second-lien term loan (Caa2/CCC) and is upsizing its existing revolving credit facility to $55 million from $40 million.

Golub Capital and TD Securities (USA) LLC are leading the deal that will be used with equity and cash on hand to fund the acquisitions of Investment Metrics, a Norwalk, Conn.-based provider of portfolio analytics, reporting and data solutions, for $500 million and Compliance Solutions Strategies, a New York-based RegTech company that enables financial services firms to meet mandatory regulatory compliance requirements.

Closing is expected this quarter.

Confluence, a portfolio company of Clearlake Capital and TA Associates, is a Pittsburgh-based technology solutions provider to the investment management industry.

ICU accelerated

ICU Medical moved up the commitment deadline for its $850 million seven-year senior secured term loan B (Ba3/BB) to noon ET on Tuesday from noon ET on Thursday, a market source said.

Talk on the term loan is SOFR+CSA plus 250 bps to 275 bps with a 0.5% floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months. CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

Barclays, Wells Fargo Securities LLC, BofA Securities Inc., Bank of the West, Citigroup Global Markets Inc., MUFG, US Bank and KeyBanc Capital Markets are leading the deal that will be used to help fund the acquisition of Smiths Medical, a medical device company, from Smith Group plc for $1.85 billion in cash and the issuance of 2.5 million shares of common stock.

ICU Medical is a San Clemente, Calif.-based manufacturer of medical devices used in vascular therapy, critical care and oncology applications.

Madison moves deadline

Madison Safety & Flow changed the commitment deadline for its $925 million seven-year first-lien term loan (B1) and $275 million eight-year second-lien term loan (Caa1) to 2 p.m. ET on Monday from noon ET on Tuesday, according to a market source.

Talk on the first-lien term loan is SOFR+CSA plus 375 bps to 400 bps with a 0.5% floor, an original issue discount of 99 and 101 soft call protection for six months, and talk on the second-lien term loan is SOFR+CSA plus 675 bps to 700 bps with a 0.5% floor, a discount of 98.5 and hard call protection of 102 in year one and 101 in year two. CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

Goldman Sachs Bank USA, CIBC, Capital One, Comerica, Fifth Third, Golub, HSBC Securities (USA) Inc., MUFG, Siemens and Stifel are leading the deal that will be used to fund the acquisition of Safe Fleet, refinance Madison Safety’s existing debt, and pay transaction related fees, expenses and original issue discount.

Madison Industries is the sponsor.

Madison Safety is a manufacturer of safety products and systems. Safe Fleet is a manufacturer of safety and productivity products for fleet vehicles and first responders.

Secretariat tweaks timing

Secretariat International accelerated the commitment deadline for its $190 million seven-year first-lien term loan and $30 million delayed-draw first-lien term loan to 5 p.m. ET on Monday from noon ET on Wednesday, a market source remarked.

Talk on the term loan debt is Libor plus 475 bps with a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

KeyBanc Capital Markets, Jefferies LLC and Bank of Ireland are leading the deal that will be used with a $70 million eight-year privately placed second-lien term loan to help fund the acquisition of the company by JLL Continuation Fund from another JLL fund and to refinance existing debt.

Secretariat is a specialty consulting firm providing independent advisory services and expert testimony to clients involved in disputes or litigation related to construction delays or damages.

First Brands talk

First Brands launched without a call a fungible $200 million incremental senior secured first-lien term loan due March 30, 2027 talked with a par issue price, according to a market source.

Like the existing term loan, the incremental term loan is priced at Libor plus 500 bps with a 1% Libor floor and has 101 soft call protection until March 30, 2022.

Commitments are due at 1 p.m. ET on Dec. 15, the source added.

Jefferies LLC, BofA Securities Inc. and Wells Fargo Securities LLC are leading the deal that will be used to fund cash to the balance sheet for general corporate purposes.

Pro forma for the transaction, the first-lien term loan will total $1.675 billion.

First Brands is an automotive aftermarket platform.

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