Bausch + Lomb, Refresco, Aristocrat break; Restoration reworked; Gaming Capital pulls B loan

By Sara Rosenberg

New York, May 5 – Bausch + Lomb firmed the spread on its first-lien term loan at the low end of guidance, tightened the original issue discount and made some changes to documentation before freeing up for trading on Thursday, and deals from Refresco Group BV and Aristocrat Technologies emerged in the secondary market as well.

In more happenings, Restoration Hardware Inc. reduced the size of its incremental term loan B-2, widened the issue price and extended the call protection.

Also, Gaming Capital Group (GCG Holdings LLC) moved to an all-pro rata structure and pulled its term loan B from market, and ChampionX Corp. approached lenders with a new term loan.

Bausch tweaked, trades

Bausch + Lomb finalized pricing on its $2.5 billion five-year first-lien term loan (Ba2/B+/BB+) at SOFR plus 325 basis points, the low end of the SOFR plus 325 bps to 350 bps talk, and adjusted the original issue discount to 98.75 from 98.5, according to market sources.

The company also changed MFN to 50 bps with an 18-month sunset from a 12-month sunset and added J. Crew language, sources said.

As before, the term loan has CSA of 10 bps, a 0.5% floor, 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 1:30 p.m. ET on Thursday, and the term loan broke for trading in the afternoon, with levels quoted at 98 7/8 bid, 99 3/8 offered, another source added.

Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc., Citigroup Global Markets Inc., JPMorgan Chase Bank and Barclays are leading the deal that will be used to fund an intercompany loan repayment to Bausch Health Cos. Inc. in connection with the company’s spinoff from Bausch Health.

Bausch + Lomb is a Vaughan, Ont.-based eye health company.

Refresco hits secondary

Refresco’s €1.53 billion equivalent U.S. term loan B broke for trading, with levels quoted at 99 bid, 99˝ offered, a market source said.

Pricing on the U.S. term loan is SOFR plus 425 bps with a 25 bps step-down at 5.1x first-lien net leverage and a 0.5% floor. The debt was sold at an original issue discount of 99.

The company is also getting a €1.53 billion euro term loan B priced at Euribor plus 425 bps with a 0% floor and issued at a discount of 99, and a €340 million equivalent pound-denominated term loan B priced at Sonia plus 525 bps with a 0% floor and issued at a discount of 98. Both these term loans have 25 bps step-downs at 5.1x and 4.6x first-lien net leverage.

All of the term loans (B2/B+) have 101 soft call protection for six months, and ticking fees of half the margin from days 46 to 75 and the full margin thereafter.

Refresco lead banks

Goldman Sachs, JPMorgan Chase Bank and KKR Capital Markets are the joint physical bookrunners on Refresco’s term loans, with Goldman left on the U.S. loan and JPMorgan left on the euro and pound loans. Credit Suisse, Natwest, BofA Securities Inc., Morgan Stanley Senior Funding Inc., Mizuho, MUFG, ABN Amro, Credit Agricole, Unicredit, Rabobank, ING, BNP Paribas Securities Corp. and SMBC are joint bookrunners. JPMorgan is the administrative agent.

During syndication, pricing on the U.S. term loan finalized at the low end of the SOFR plus 425 bps to 450 bps talk, the step-down was revised from at 5.25x first-lien net leverage and the discount was changed from talk in the range of 98 to 98.5. Also, pricing on the euro loan was lowered from Euribor plus 450 bps and the discount firmed at the tight end of revised talk of 98.5 to 99 and tighter than initial talk of 98 to 98.5, the discount on the pound term loan was set at the wide end of the 98 to 98.5 talk, and the step-downs on the euro and pound loans were revised from at 5.5x and 5.25x first-lien net leverage.

Proceeds will help fund KKR’s acquisition of a majority stake in the Netherlands-based beverage company. Refresco’s existing investors, PAI Partners and British Columbia Investment Management Corp., will maintain a significant minority position.

Aristocrat frees up

Aristocrat Technologies’ $500 million seven-year term loan B began trading as well, with levels quoted at 99˝ bid, par offered, according to a market source.

Pricing on the term loan B is SOFR+10 bps CSA plus 225 bps with a 0.5% floor and it was sold at an original issue discount of 99.25. The debt has 101 soft call protection for six months.

During syndication, pricing on the term loan B was reduced from SOFR plus 250 bps and the discount was tightened from 99.

The company’s $2.35 billion of credit facilities (Ba1//BBB-) also include a $500 million revolver and a $1.35 billion term loan A.

BofA Securities Inc. is the left lead on the deal that will be used to refinance an existing term loan B and increase liquidity.

Aristocrat a North Ryde, Australia-based provider of gaming solutions.

Restoration modified

Back in the primary market, Restoration Hardware scaled back its non-fungible incremental term loan B-2 to $500 million from $1 billion, moved the original issue discount to 95 from 97.5 and extended the 101 soft call protection to one year from six months, a market source remarked.

Pricing on the term loan remained at SOFR+10 bps CSA plus 325 bps with a 0.5% floor.

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

BofA Securities Inc. is the left lead on the deal that will be used for general corporate purposes.

Restoration Hardware is a Corte Madera, Calif.-based upscale home furnishings company.

Gaming Capital reworked

Gaming Capital Group withdrew its $450 million seven-year covenant-lite term loan B from market and is moving forward with an all-pro rata structure due to significant demand from the company’s pro rata lenders, a market source said.

The change will result in meaningful interest savings to the company, the source added.

Talk on the term loan B had been SOFR+10 bps CSA plus 525 bps to 550 bps with a 0.5% floor, an original issue discount of 98 and 101 soft call protection for six months.

Wells Fargo Securities LLC, Goldman Sachs Bank USA, US Bank, PNC and NV State Bank were the leads on the term loan B.

The pro rata transaction will be used to refinance existing debt and consolidate ownership by performing buyouts of various GCG entities.

Gaming Capital is a Newcastle, Okla.-based provider of class II and class III electronic gaming machines to tribal and commercial casinos in the Oklahoma market.

ChampionX holds call

ChampionX held a lender call at 1 p.m. ET to launch a $625 million seven-year term loan B (Ba2/BBB-) talked at SOFR+CSA plus 300 bps with a 0.5% floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

Commitments are due at 5 p.m. ET on May 12, the source added.

JPMorgan Chase Bank is leading the deal that will be used to refinance an existing term loan B due 2025 and an existing term loan B due 2027, and to redeem 6 3/8% senior notes due 2026.

ChampionX is a Woodlands, Tex.-based provider of chemistry solutions and highly engineered equipment and technologies that help companies drill for and produce oil and gas.

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