Associated Materials breaks for trading; Restaurant Technologies, Renaissance set talk

By Sara Rosenberg

New York, March 9 – Associated Materials (New AMI I LLC) finalized the spread on its term loan B at the high end of guidance and widened the original issue discount before freeing up for trading on Wednesday.

In more happenings, Restaurant Technologies Inc. and Renaissance Learning Inc. released price talk on their loan transactions with launch.

Additionally, Forefront Dermatology (Dermatology Intermediate Holdings III Inc.) and Owens & Minor Inc. joined this week’s new issue calendar.

Associated updated, trades

Associated Materials firmed pricing on its $550 million seven-year term loan B (B2/B) at SOFR plus 600 basis points, the high end of the SOFR plus 575 bps to 600 bps talk, and changed the original issue discount to 96 from 98.5, a market source remarked.

As before, the term loan has a 0.5% floor and 101 soft call protection for six months.

The term loan B broke for trading later in the day, with levels quoted at 96 bid, 97 offered, a trader added.

RBC Capital Markets, Credit Suisse Securities (USA) LLC, UBS Investment Bank, KKR Capital Markets, Macquarie Capital (USA) Inc., BMO Capital Markets and PNC are leading the deal that will be used to help fund the buyout of the company by Strategic Value Partners LLC for an aggregate purchase price of $950 million.

Closing is expected this month.

Associated Materials is a manufacturer and distributor of exterior building products.

Restaurant guidance

Restaurant Technologies held its lender call on Wednesday morning and, shortly before the call began, talk on its $810 million seven-year covenant-lite green first-lien term loan B was announced at SOFR plus 425 bps with a 25 bps step-down upon an initial public offering, a 0.5% floor and an original issue discount of 98 to 98.5, according to a market source.

The term loan has 0 bps CSA and 101 soft call protection for six months.

The company’s $910 million of senior secured credit facilities (B2/B) also include a $100 million revolver.

Commitments are due at 5 p.m. ET on March 17, the source added.

Morgan Stanley Senior Funding Inc., BMO Capital Markets, RBC Capital Markets and Credit Suisse Securities (USA) LLC are leading the deal that will be used to help fund the buyout of the company by ECP from Goldman Sachs Asset Management and pay related fees and expenses.

As part of this transaction, an additional investment is being made in the company by Enlightened Hospitality Investments.

Restaurant Technologies is a provider of cooking-oil management and back-of-house hood and exhaust cleaning solutions.

Renaissance talk

Renaissance Learning held a lender call at 2 p.m. ET, launching a non-fungible $475 million seven-year incremental first-lien term loan at talk of SOFR plus 400 bps to 425 bps with a 0.5% floor, an original issue discount of 98.5 and 101 soft call protection for six months, a market source said.

The incremental term loan has no CSA.

Commitments are due at 5 p.m. ET on March 16, the source added.

Barclays is the left lead on the deal that will be used to fund a recently signed acquisition and pay related fees and expenses.

Blackstone and Francisco Partners are the sponsors.

Renaissance Learning is a Wisconsin Rapids, Wis.-based provider of software solutions for assessment, teaching and learning to K-12 schools and districts.

Forefront readies deal

Forefront Dermatology set a lender call for 11 a.m. ET on Thursday to launch $730 million of credit facilities (B), according to a market source.

The facilities consist of a $95 million revolver and a $635 million seven-year first-lien term loan, of which $100 million is a delayed-draw tranche, the source said.

Included in the term loan is 101 soft call protection for six months.

Commitments are due at 5 p.m. ET on March 24, the source added.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., RBC Capital Markets, UBS Investment Bank and Natixis are leading the deal that will be used to help fund the buyout of the company by Partners Group from Omers Private Equity. Omers will maintain a minority equity stake in the company.

Forefront is a Manitowoc, Wis.-based dermatology physician practice.

Owens & Minor on deck

Owens & Minor will hold a lender call at 1:30 p.m. ET on Thursday to launch a $1.2 billion seven-year term loan B (/BB-/BB+) talked at SOFR+10 bps CSA plus 375 bps with a 0.5% floor, an original issue discount of 98.5 and 101 soft call protection for six months, a market source remarked.

Commitments are due at 5 p.m. ET on March 22, the source added.

JPMorgan Chase Bank is leading the deal that will be used to help fund the acquisition of Apria Inc. for $37.50 in cash per share of common stock, representing an equity value of $1.45 billion and a total transaction value of $1.6 billion, including the assumption of debt and cash.

Closing is expected in the first half of this year, subject to regulatory approvals, Apria stockholder approval and other customary conditions.

Owens & Minor is a Richmond, Va.-based health care solutions company. Apria is an Indianapolis-based provider of integrated home health care equipment and related services.

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