Sharp, Mister Car, BBB Industries, ConvergeOne, Madison, RealPage, Liquid Tech break

By Sara Rosenberg

New York, Dec. 14 – Sharp Midco LLC finalized pricing on its first-lien term loan B at the low end of guidance, changed the issue price and modified some documentation items, and Mister Car Wash Holdings Inc. firmed the issue price on its incremental first-lien term loan at the tight end of talk, and then these deals began trading on Tuesday.

Also, before freeing up, BBB Industries LLC (GC EOS Buyer Inc.) increased the size of its incremental first-lien term loan, and ConvergeOne Holdings Inc. set the issue price on its incremental first-lien term loan at the wide end of guidance.

Other deals to make their way into the secondary market during the session included Madison Safety & Flow, RealPage Inc. and Liquid Tech Solutions LLC.

In other news, ICU Medical Inc. finalized the spread and original issue discount on its term loan B at the tight side of talk and added a step-down, and Digi International Inc. raised pricing on its term loan B, revised the issue price and extended the call protection.

Furthermore, Paragon Films (Secure Acquisition Inc.) upsized its first-lien term loan, set spreads on its first- and second-lien tranches, and sweetened the second-lien floor, original issue discount and call protection, WCG Purchaser Corp. revised the issue price on its incremental first-lien term loan, and Generation Bridge II LLC accelerated the commitment deadline for its term loans.

Sharp revised, trades

Sharp set the spread on its $465.5 million first-lien term loan B (B2/B-) due 2028 at Libor plus 400 basis points, the low end of the Libor plus 400 bps to 425 bps talk, and adjusted the original issue discount to 99.75 from 99, a market source remarked.

In addition, MFN was changed to 50 bps for 12 months from 75 bps for six months, the “no worse” prong and inside maturity basket were removed from incremental facility, asset sale step-downs were revised, the EBITDA definition was modified and there is now a requirement for quarterly management discussion and analysis,.

The term loan still has 25 bps step-down upon an initial public offering, a 0.5% Libor floor and 101 soft call protection for six months.

Recommitments were due at 11 a.m. ET on Tuesday and the term loan broke in the afternoon, with levels quoted at par bid, par ¾ offered, a trader added.

JPMorgan Chase Bank, RBC Capital Markets, Barclays and ING are leading the deal that will be used to help fund the spinoff of the company from UDG Healthcare Ltd.

Sharp is a provider of clinical supply chain services and contract pharmaceutical packaging.

Mister Car updated, frees

Mister Car Wash finalized the original issue discount on its fungible $290 million incremental first-lien term loan due May 2026 at 99.25, the tight end of the 99.01 to 99.25 talk, a market source said.

The incremental term loan is priced at Libor plus 300 bps with a 0% Libor floor.

In the afternoon, the incremental term loan started trading, with levels quoted at 99 3/8 bid, 99 7/8 offered, a trader added.

Jefferies LLC is leading the deal that will be used with cash on hand to fund the acquisition of Clean Streak Ventures LLC from MKH Capital Partners for about $390 million.

Closing is expected this year, subject to customary conditions.

Mister Car Wash is a Tucson-based car wash operator.

BBB upsized, breaks

BBB Industries lifted its fungible incremental first-lien term loan (B3/B-) due August 2025 to $115 million from $100 million, a market source remarked.

Pricing on the incremental term loan is Libor plus 450 bps with a 0% Libor floor, same as the existing term loan, and the new debt has an original issue discount of 99.27.

Recommitments were due at noon ET on Tuesday and the term loan freed up later in the day, with levels quoted at 99 3/8 bid, 99 7/8 offered, another source added.

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

Genstar Capital is the sponsor.

BBB Industries is a Daphne, Ala.-based remanufacturer and distributor of non-discretionary and application specific replacement parts to the North American and European automotive aftermarket.

ConvergeOne firms, trades

ConvergeOne finalized the original issue discount on its fungible $150 million incremental first-lien term loan (B2/B-) due January 2026 at 97.75, the wide end of the 97.75 to 98 talk, according to a market source.

Pricing on the incremental term loan is Libor plus 500 bps with a 0% Libor floor, same as the existing term loan.

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

During market hours, the incremental term loan made its way into the secondary market, with levels quoted at 97¾ bid, 98½ offered, another source added.

Deutsche Bank Securities Inc. is leading the deal that will be used to fund current and future acquisitions.

ConvergeOne is an Eagan, Minn.-based IT services provider of collaboration and technology solutions.

Madison frees up

Madison Safety’s bank debt broke for trading as well, with the $950 million seven-year first-lien term loan (B1/B-) quoted at 99¾ bid, par ¼ offered and the $250 million eight-year second-lien term loan (Caa1/CCC) quoted at par bid, a market source said.

Pricing on the first-lien term loan is SOFR+CSA plus 375 bps with a 25 bps step-down at 0.5x inside closing date first-lien net leverage and a 0.5% floor. The debt was sold at an original issue discount of 99.5 and has 101 soft call protection for six months.

The second-lien term loan is priced at SOFR+CSA plus 675 bps with a 0.5% floor and was issued at a discount of 99. This tranche has hard call protection of 102 in year one and 101 in year two.

CSA on both term loans is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

During syndication, the first-lien term loan was upsized from $925 million, pricing firmed at the low end of the SOFR+CSA plus 375 bps to 400 bps talk, the step-down was added and the discount was changed from 99. The second-lien term loan was downsized from $275 million, the spread was set at the low end of the SOFR+CSA plus 675 bps to 700 bps talk and the discount was revised from 98.5.

Madison lead banks

Goldman Sachs Bank USA, CIBC, Capital One, Comerica, Fifth Third, Golub, HSBC Securities (USA) Inc., MUFG, Siemens and Stifel are leading Madison Safety’s term loans.

Proceeds 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 utilized by fire departments, first responders, rescue teams, municipalities, essential service providers and diversified industrial markets. Safe Fleet is a manufacturer of safety and productivity products for fleet vehicles and first responders.

RealPage tops OID

RealPage’s fungible $260 million incremental covenant-lite first-lien term loan (B2/B) due April 2028 began trading too, with levels quoted at 99½ bid, 99¾ offered, according to a market source.

Pricing on the add-on term loan is Libor plus 325 bps with a 0.5% Libor floor, in line with existing term loan pricing, and the new debt was sold at an original issue discount of 99.375.

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

UBS Investment Bank, Credit Suisse Securities (USA) LLC and Goldman Sachs Bank USA are leading the deal that will be used to fund the acquisition of HomeWiseDocs, a provider of software solutions to property management companies.

Closing is expected this quarter, subject to customary conditions.

Thoma Bravo is the sponsor.

RealPage is a Richardson, Tex.-based provider of software and data analytics to the real estate industry.

Liquid Tech breaks

Liquid Tech’s fungible $75 million add-on covenant-lite first-lien term loan due March 19, 2028 freed up in the morning, with levels quoted at 99¾ bid, a market source said.

Pricing on the add-on term loan is Libor plus 475 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.

During syndication, the add-on term loan was upsized from $65 million.

Citizens Bank is leading the deal that will be used to fund an acquisition and, due to the recent upsizing, to add cash to the balance sheet.

Lindsay Goldberg is the sponsor.

Liquid Tech is a tech-enabled provider of route-based, on-site mobile refueling solutions.

ICU tweaked

In more happenings, ICU Medical firmed pricing on its $850 million seven-year senior secured term loan B (Ba3/BB/BBB-) at SOFR+CSA plus 250 bps, the low end of the SOFR+CSA plus 250 bps to 275 bps talk, added a 25 bps step-down at 2.75x total net leverage and set the original issue discount at 99.5, the tight end of the 99 to 99.5 talk, according to a market source.

As before, the term loan has a 0.5% floor, 101 soft call protection for six months, and CSA of 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

Final commitments were due at 5 p.m. ET on Tuesday, the source added.

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.

Digi changes emerge

Digi International widened pricing on its $350 million term loan B (B2/B) due 2028 to Libor plus 500 bps from talk in the range of Libor plus 400 bps to 425 bps, revised the original issue discount to 98 from 99, extended the 101 soft call protection to one year from six months and changed amortization to 5% per annum, a market source remarked.

The 0.5% Libor floor on the term loan was unchanged.

Commitments are due at 4 p.m. ET on Thursday, the source added.

BMO Capital Markets is leading the deal that will be used to fund the recently completed $347.4 million acquisition of Ventus Holdings, a Connecticut-based managed network as a service solutions provider, and to repay debt.

Digi is a Hopkins, Minn.-based provider of internet of things connectivity products and services.

Paragon reworked

Paragon Films raised its seven-year first-lien term loan (B2/B-) to $348 million from $345 million and finalized pricing at Libor plus 500 bps, the high end of the Libor plus 475 bps to 500 bps talk, according to a market source.

The first-lien term loan is split between a $303 million funded tranche, upsized from $300 million, and a $45 million delayed-draw tranche. Delayed-draw ticking fees were revised to half the margin from days 46 to 90 and the full margin thereafter from half the margin from days 61 to 120 and the full margin thereafter.

The company also set pricing on its $100 million eight-year second-lien term loan (Caa2/CCC) at Libor plus 775 bps, the low end of the Libor plus 775 bps to 800 bps talk, increased the Libor floor to 0.75% from 0.5%, widened the original issue discount to 97.5 from 98.5, and modified the call protection to 103 in year one, 102 in year two and 101 in year three from 102 in year one and 101 in year two, the source said.

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.

Paragon readies allocations

Recommitments for Paragon’s bank debt were due at noon ET on Tuesday and allocations are targeted for Wednesday, the source added.

Credit Suisse Securities (USA) LLC, BMO Capital Markets, KKR Capital Markets and RBC Capital Markets are leading the deal that will be used to help fund the buyout of the company by Rhone Capital.

Closing is expected this year.

Paragon is a Broken Arrow, Okla.-based manufacturer of ultra high-performance cast stretch films that are principally used to unitize product loads while in storage and transit.

WCG tightened

WCG Purchaser modified the original issue discount on its fungible $200 million incremental first-lien term loan due Jan. 8, 2027 to 99.75 from talk in the range of 99 to 99.5, according to a market source.

Pricing on the incremental term loan is Libor plus 400 bps with a 1% Libor floor, which matches existing term loan pricing.

Recommitments were due at noon ET on Tuesday, the source added.

Barclays is the left lead on the deal that will be used to repay revolver borrowings, fund cash to the balance sheet, and pay fees, expenses and original issue discount.

WCG is Princeton, N.J.-based provider of clinical trial optimization solutions.

Generation accelerated

Generation Bridge II moved up the commitment deadline for its $325 million seven-year term loan B and $40 million seven-year term loan C to noon ET on Wednesday from 5 p.m. ET on Wednesday, a market source said.

Talk on the senior secured term loans (Ba2/BB-) is Libor plus 500 bps with a 0.5% Libor floor, an original issue discount of 99, 101 soft call protection for six months and ticking fees of half the margin from days 46 to 90 and the full margin thereafter.

Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA and MUFG are leading the deal that will be used to fund the acquisition of power generation facilities from PSEG.

Generation Bridge is an operator of power generation facilities.

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