Veritext, Crocs, Learning Care, Curium, Talen Energy, Duravant term loans break for trading

By Sara Rosenberg

New York, Aug. 3 – Veritext set the spread on its term loan B at the low end of revised talk, Crocs Inc. firmed pricing on its term loan B at the low side of guidance, and Learning Care Group Inc. revised the original issue discount on its term loan, and then these deals freed to trade on Thursday.

Also making their way into the secondary market during the session were loans from Curium BidCo Sarl, Talen Energy Supply LLC and Duravant LLC (Engineered Machinery Holdings Inc.).

In more happenings, Generation Bridge Northeast LLC increased the size of its term loan B, set pricing at the low side of talk, removed the CSA and revised the issue price, and Invenergy Thermal Operating I LLC firmed the spread on its term loans at the low end of guidance and adjusted the original issue discount.

Additionally, Avient Corp. Inc. modified the issue price for existing term loan B-5 lenders and new money lenders for its new term loan B-7, kdc/one upsized its euro first-lien term loan, and Charter Next Generation Inc. increased the size of its add-on term loan B and tightened the original issue discount.

Furthermore, NorthRiver Midstream Finance LP, ASGN Inc. and SonicWall Inc. released price talk with launch, and Axalta Coating Systems Ltd. joined this week’s new issue calendar.

Veritext updated

Veritext firmed pricing on its $940 million seven-year term loan B (B2/B/B+) at SOFR plus 425 basis points, the low end of the revised SOFR plus 425 bps to 450 bps talk and down from initial talk of SOFR plus 450 bps, and added quarterly calls and management discussion and analysis to the credit agreement, according to a market source.

As before, the term loan has a 25 bps step-down at 0.5x inside closing date first-lien net leverage, a 25 bps step-down upon an initial public offering, a 0.5% floor, an original issue discount of 99 and 101 soft call protection for six months.

Previously in syndication, the term loan was upsized from $720 million as the company’s senior secured notes offering was scaled back to $500 million from $720 million, and the discount was tightened from talk in the range of 97 to 97.5.

Veritext hits secondary

On Thursday, Veritext’s term loan B freed to trade, with levels quoted at 99¼ bid, par ¼ offered, another source added.

Goldman Sachs Bank USA, JPMorgan Chase Bank, BNP Paribas Securities Corp., Jefferies LLC, Macquarie Capital (USA) Inc. and KKR Capital Markets are leading the loan that will be used with the notes to refinance the company’s existing capital structure and add cash to the balance sheet.

CVC, GIC and Leonard Green Partners are the sponsors.

Veritext is a Livingston, N.J.-based deposition service provider, assisting law firms and corporations in facilitating litigation proceedings.

Crocs sets spread, frees

Crocs finalized pricing on its $1.18 billion senior secured covenant-lite term loan B due Feb. 19, 2029 (Ba2/BB-) at SOFR plus 300 bps, the low end of the SOFR plus 300 bps to 325 bps talk, a market source remarked.

The term loan still has a 0.5% floor, a par issue price and 101 soft call protection for six months.

In the afternoon, the term loan B broke for trading, with levels quoted at par bid, par ¼ offered, another source added.

Citigroup Global Markets Inc., BofA Securities Inc., HSBC Securities (USA) Inc. and Morgan Stanley Senior Funding Inc. are leading the deal that will be used to reprice an existing term loan B due Feb. 19, 2029 down from SOFR plus 350 bps with a 0.5% floor.

Closing is expected during the week of Aug. 7.

Crocs is a Broomfield, Colo.-based casual footwear company.

Learning Care modified, trades

Learning Care Group adjusted the original issue discount on its $900 million five-year term loan (B2/B) to 98.5 from talk in the range of 97 to 97.5, according to a market source.

Pricing on the term loan is SOFR plus 475 bps with a 25 bps step-down at B2/B ratings with stable outlooks and a 0.5% floor, and the debt has 101 soft call protection for six months.

Recommitments were due at 3 p.m. ET on Thursday and the term loan freed later in the day, with levels quoted at 99 1/8 bid, 99 5/8 offered, another source added.

JPMorgan Chase Bank is the left lead on the deal that will be used to refinance existing first- and second-lien term loans and to pay related fees and expenses.

Learning Care is a Novi, Mich.-based provider of early education and childcare services.

Curium breaks

Curium’s $1.07 billion term loan B due July 2029 began trading too, with levels quoted at 99 ½ bid, par offered, a market source said

Pricing on the U.S. term loan is SOFR plus 450 bps with a 0% floor and it was sold at an original issue discount of 99. The debt has 101 soft call protection for six months.

In addition, the company is getting a €325 million term loan B due July 2029 priced at Euribor plus 450 bps with 25 bps step-downs at 3.5x and 3x senior secured net leverage, and a 0% floor. This tranche was sold at a discount of 99 and has 101 soft call protection for six months.

During syndication, the U.S. loan was raised from $1.066 billion, pricing was cut from SOFR plus 475 bps and a 25 bps step-down at 3.5x senior secured net leverage was removed, the euro loan was lifted from €300 million and pricing was trimmed from Euribor plus 475 bps, and the discount on both loans was revised from 98.5.

Curium extending

Curium will use the new term loans to amend and extend an existing $478 million term loan due July 2026, an existing $590 million term loan due December 2027 and an existing €300 million term loan due July 2026, and to pay transaction fees and expenses.

JPMorgan Chase Bank is the sole physical bookrunner on the U.S. term loan, and Deutsche Bank Securities Inc. is the sole physical bookrunner on the euro term loan. JPMorgan is the administrative agent.

Curium is a nuclear medicine company with headquarters in London and Paris.

Talen frees

Talen Energy Supply’s fungible $290 million add-on senior secured term loan B due May 2030 was another deal to break, and levels were quoted at 99¾ bid, par ¼ offered, according to a market source.

Pricing on the add-on term loan matches existing term loan B pricing at SOFR plus 450 bps with a 0.5% floor, and the debt was sold at an original issue discount of 99.5. The loan is getting 101 soft call protection for six months.

During syndication, the discount on the add-on loan was changed from talk in the range of 98.5 to 99.

Citigroup Global Markets Inc. is the left lead on the deal that will be used to repay the company’s existing LMBE MC term loan.

Closing is expected during the week of Aug. 7.

Talen Energy is a Houston-based power generation and infrastructure company.

Duravant tops OID

Duravant’s fungible $125 million incremental first-lien term loan (B1/B-) due May 21, 2028 freed up late in the day, with levels quoted at 99 1/8 bid, 99½ offered, a market source remarked.

Pricing on the incremental term loan is SOFR+CSA plus 350 basis points with a 25 bps step-up at more than 5x senior secured first-lien net leverage and a 0.75% floor, in line with existing term loan pricing, and the new debt was sold at an original issue discount of 99.03. CSA is 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

Jefferies LLC, Societe Generale, KeyBanc Capital Markets, MUFG, Antares and Rabobank are leading the deal that will be used to repay outstanding revolver borrowings and add cash to the balance sheet.

Pro forma for the transaction, the term loan is sized at about $1.48 billion.

Duravant is a Downers Grove, Ill.-based automation solutions company providing highly engineered equipment and related aftermarket parts and services.

Generation Bridge updated

Generation Bridge Northeast LLC raised its six-year senior secured term loan B to $865 million from $850 million, firmed pricing at SOFR plus 425 bps, the low end of the SOFR plus 425 bps to 450 bps talk, removed the 10 bps CSA and revised the original issue discount to 99 from 98, a market source said.

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

The company’s now $965 million of credit facilities also include a $100 million five-year revolver.

Jefferies LLC, MUFG, Goldman Sachs Bank USA, BMO Capital Markets, Investec and ArcLight Capital Partners are leading the deal.

The term loan will be used to repay all outstanding debt at Generation Bridge II LLC and to fund a distribution, and the revolver will be used for working capital and letters of credit.

Generation Bridge Northeast is an owner of power generation facilities that is being formed through the combination by ArcLight Capital Partners of two portfolio companies, Generation Bridge LLC and Generation Bridge II.

Invenergy changed

Invenergy Thermal Operating finalized pricing on its $325 million six-year term loan B and $25 million six-year term loan C at SOFR plus 450 bps, the low end of the SOFR plus 450 bps to 475 bps talk, and tightened the original issue discount to 98 from 97, according to a market source.

The term loans, which are being sold as a strip, still have a 1% floor, CSA of 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate, and 101 soft call protection for six months.

The company’s $500 million of credit facilities (Ba2/BB-) also include a $150 million five-year revolver.

Recommitments were due at 5 p.m. ET on Thursday, the source added.

MUFG, BofA Securities Inc. and BMO Capital Markets are leading the deal that will be used to refinance existing debt, and the term loan C will prefund letters of credit.

Invenergy Thermal is a 2.29 GW gas-fired power portfolio consisting of four operating plants located across North America. The portfolio is owned via a 50/50 joint venture between Invenergy Clean Power LLC and InfraBridge’s Global Infrastructure Fund Platform.

Avient revised

Avient changed the issue price for existing term loan B-5 lenders and new money lenders on its $832 million first-lien senior secured covenant-lite term loan B-7 due Aug. 29, 2029 (Ba1/BB+) to par from 99.75, while existing term loan B-6 lenders continue to be offered the B-7 loan at a par issue price, a market source remarked.

As before, the term loan B-7 is priced at SOFR plus 250 bps with a 0.5% floor, and has 101 soft call protection for six months and 0 bps CSA.

Commitments continued to be due at 5 p.m. ET on Thursday and allocations are expected on Friday.

Morgan Stanley Senior Funding Inc., JPMorgan Chase Bank and Citigroup Global Markets Inc. are leading the deal that will be used to refinance the company’s existing term loan B-5 due 2026 and term loan B-6 due Aug. 29, 2029 and to pay related fees and expenses.

The company will use $100 million of cash from the balance sheet to repay non-consenting lenders, if any, and the balance will be used for a pro-rata repayment at closing, the source added.

Avient is an Avon Lake, Ohio-based provider of specialized and sustainable material solutions.

kdc/one upsized

kdc/one increased its euro five-year first-lien term loan to €460 million from a revised amount of €440 million and an initial size of roughly $400 million equivalent, with funds from this upsize being used to fund original issue discount, according to a market source.

The euro term loan is priced at Euribor plus 525 bps with a 0% floor and an original issue discount of 97.

The company is also getting a $360 million five-year revolver, and a $1.005 billion five-year first-lien term loan priced at SOFR plus 500 bps with a 0% and a discount of 97.

Both term loans (B3/B-/B) have 101 soft call protection for six months.

Previously in syndication, the U.S. term loan was upsized from $600 million and pricing was lowered to SOFR plus 475 bps but then moved back to the original talk of SOFR plus 500 bps, pricing on the euro term loan was trimmed to Euribor plus 500 bps and then moved back to the original talk of Euribor plus 525 bps, the discount on both term loans finalized at the tight end of the 96 to 97 talk, and the company terminated plans for a $500 million senior secured notes offering.

kdc/one leads

UBS Investment Bank, Morgan Stanley Senior Funding Inc., BMO Capital Markets, JPMorgan Chase Bank, Goldman Sachs Bank USA, Deutsche Bank Securities Inc., Citizens, Natixis, RBC Capital Markets and KKR Capital Markets are leading kdc/one’s bank debt that will be used to refinance existing first-lien credit facilities.

KDC US Holdings Inc. is the U.S. borrower, and kdc/one Development Corp. Inc. is the Canadian borrower.

kdc/one is a Longueuil, Quebec-based provider of value-added solutions to brands in the home care and beauty and personal care categories.

Charter Next tweaked

Charter Next Generation raised its fungible add-on term loan B due 2027 to $210 million from $140 million and moved the original issue discount to 99.25 from 99.04, a market source said.

Like the existing term loan, the add-on term loan is priced at SOFR+CSA plus 375 bps with a 0.75% floor. CSA is 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

Recommitments were due at 3 p.m. ET on Thursday, the source added.

KKR Capital Markets is leading the deal. Jefferies LLC is the administrative agent.

The term loan will be used to repay senior PIK notes and for general corporate purposes.

Charter Next Generation is a Milton, Wis.-based producer of specialty films used in flexible packaging and other end-use markets.

NorthRiver guidance

NorthRiver Midstream held its lender call on Thursday morning and announced talk on its $850 million seven-year covenant-lite term loan B (Ba3) at SOFR plus 325 bps to 350 bps with a 0% floor, an original issue discount of 98.5 to 99 and 101 soft call protection for six months, according to a market source.

Commitments are due at noon ET on Aug. 10, the source added.

BMO Capital Markets, RBC Capital Markets and others are leading on the deal. RBC is the agent.

The term loan will be used with revolver borrowings to refinance an existing term loan due October 2025.

NorthRiver Midstream is a Canadian gas gathering and processing business.

ASGN talk

ASGN came out with talk of SOFR plus 225 bps to 250 bps with a 0% floor and an original issue discount of 99.5 on its $500 million seven-year covenant-lite term loan B (Ba1) that launched with a call in the afternoon, a market source said.

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

Commitments are due at noon ET on Aug. 17.

Wells Fargo Securities LLC is the left lead on the deal, which will be used to refinance the company’s existing term loan B due 2025.

ASGN is a Glen Allen, Va.-based provider of IT and professional services in the technology, digital, creative, engineering and life sciences fields across commercial and government sectors.

SonicWall details emerge

SonicWall held its lender call in the afternoon, launching a $725 million first-lien term loan due May 2028 at talk of SOFR plus 475 bps to 500 bps with a 0.5% floor and an original issue discount of 97, according to a market source.

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

UBS Investment Bank is the left lead on the deal that will be used to amend and extend by three years an existing first-lien term loan, refinance a portion of the company’s existing second-lien term loan and to pay associated premiums, fees and expenses.

There is a cashless roll option for existing lenders.

Commitments/consents are due at 3 p.m. ET on Aug. 14, the source added.

The borrowers are SonicWall US Holdings Inc. and SonicWall International LLC.

SonicWall is a Milpitas, Calif.-based provider of network security solutions focused on securing mid-market enterprises as well as campus and distributed networks.

Axalta on deck

Axalta Coating Systems set a lender call for 9:30 a.m. ET on Friday to launch a $1.845 billion senior secured term loan B-4 due Dec. 20, 2029 that is talked at SOFR plus 250 bps with a 0.5% floor, an original issue discount of 99.75 to par and 101 soft call protection for six months, a market source remarked.

Commitments are due at noon ET on Aug. 15, the source added.

Barclays is leading the deal that will be used to reprice an existing term loan B due Dec. 20, 2029 down from SOFR plus 300 bps with a 0.5% floor.

The borrowers are Axalta Coating Systems U.S. Holdings Inc. and Axalta Coating Systems Dutch Holding BBV.

Axalta is a Glen Mills, Pa.-based coatings company focused on providing customers with innovative, colorful and sustainable solutions.

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