Ensemble Health, Ontic, Catalent break; Precision, Compassus, Cotiviti deal changes surface

By Sara Rosenberg

New York, Feb. 10 – Ensemble Health increased the size of its incremental term loan B and modified the original issue discount, Ontic (Bleriot US Bidco Inc.) firmed the spread and issue price on its first-lien term loan at the tight side of guidance, and Catalent Pharma Solutions Inc. upsized its term loan, finalized pricing at the low end of talk and extended the maturity, and then all of these deals freed to trade on Wednesday.

Also, Precision Medicine Group LLC lowered price talk on its add-on first-lien term loan B and set the issue price at the tight end of guidance, and added a repricing of its existing funded and delayed-draw term loans, and Compassus LLC revised spread talk, Libor floor and original issue discount on its incremental term loan, and added a repricing proposal to its transaction.

In addition, Cotiviti Inc. trimmed the spread on its add-on first-lien term loan and modified the issue price, and added a repricing of its existing first-lien term loan to the mix, and Bombardier Recreational Products Inc. and Wheel Pros Inc. accelerated the commitment deadlines for their term loan transactions.

Furthermore, Peraton, Avaya Inc., BMC Software (Boxer Parent Co. Inc.), Gates Global LLC, Victory Capital Holdings Inc., Blackstone Mortgage Trust Inc. and Wedgewood Pharmacy released price talk with launch, and RealPage Inc. joined this week’s primary calendar.

Ensemble modified, trades

Ensemble Health lifted its fungible incremental term loan B due Aug. 1, 2026 to $785 million from $685 million and changed the original issue discount talk to a range of 99.5 to 99.75 from 99, before firming at 99.75 in the afternoon, according to a market source.

Pricing on the incremental term loan is Libor plus 375 basis points with a 0% Libor floor, in line with existing term loan pricing, and the incremental loan has 101 soft call protection for six months.

On Wednesday, the incremental term loan broke for trading, with levels quoted at par bid, par ¾ offered, a trader added.

Goldman Sachs Bank USA, Antares Capital, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Guggenheim and Mizuho are leading the deal that will be used to fund a distribution to shareholders.

Ensemble amending

In connection with the incremental term loan, Ensemble Health is amending its existing credit agreement to get a one-time restricted payment waiver to allow for the transaction.

No amendment fee was offered, revised from a proposed 12.5 bps amendment fee initially.

Closing is expected during the week of Feb. 15.

Ensemble Health, a Golden Gate Capital portfolio company, is a Cincinnati-based provider of technology-enabled revenue cycle management services to hospitals and health systems.

Ontic updated, frees up

Ontic set pricing on its $551 million covenant-lite first-lien term loan due October 2026 at Libor plus 400 bps, the low end of the Libor plus 400 bps to 425 bps talk, and firmed the issue price at par, the tight end of the 99.75 to par talk, a market source remarked.

As before, the term loan has a 0% Libor floor and 101 soft call protection for six months.

The term loan began trading late in the day, with levels quoted at par 1/8 bid, par 5/8 offered, a trader added.

Nomura Securities is leading the deal that will be used to reprice an existing term loan down from Libor plus 475 bps with a 0% Libor floor.

Closing is expected during the week of Feb. 15.

Ontic is a provider of OEM-licensed parts and aftermarket services for mature aerospace and defense platforms.

Catalent revised, breaks

Catalent Pharma Solutions upsized its term loan to $1 billion from $933 million, firmed the spread at Libor plus 200 bps, the low end of the Libor plus 200 bps to 225 bps talk, and extended the maturity to seven years from May 2026, according to a market source.

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

Late in the day, the term loan started trading, with levels quoted at par ¼ bid, par ¾ offered, another source added.

J.P. Morgan Securities LLC, Barclays, BofA Securities Inc., RBC Capital Markets, Mizuho, Goldman Sachs Bank USA and Wells Fargo Securities LLC are leading the deal that will be used to reprice, and now extend, an existing term loan due May 2026 that is priced at Libor plus 225 bps with a 1% Libor floor.

Catalent is a Somerset, N.J.-based provider of advanced delivery technologies and development solutions for drugs, biologics and consumer health products.

Precision changes emerge

Precision Medicine Group trimmed price talk on its fungible $75 million add-on covenant-lite first-lien term loan B due November 2027 to a range of Libor plus 275 bps to 300 bps from Libor plus 375 bps and set the issue price at par, the tight end of the 99.75 to par talk, a market source said.

The company also added a repricing of its existing $575 million covenant-lite funded term loan B due November 2027 and $75 million covenant-lite delayed-draw term loan due November 2027 that is talked at Libor plus 275 bps to 300 bps with a par issue price, the source continued.

And, the 101 soft call protection on the term loan debt was changed to six months from through May 18.

The term loan debt still has a 0.75% Libor floor.

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

Precision lead banks

Morgan Stanley Senior Funding Inc., Goldman Sachs Bank USA, Blackstone Securities Partners LP and Mizuho are leading Precision Medicine’s transaction.

The add-on term loan will be used to repay revolver drawings incurred in conjunction with an acquisition, fund cash to the balance sheet and pay related transaction fees and expenses, and the repricing will take the existing term loans down from Libor plus 375 bps with a 0.75% Libor floor.

The ticking fee on the delayed-draw term loan will remain at 3.75%.

Precision Medicine is a specialized health care services company that provides product development and commercialization support for pharmaceutical and life sciences businesses.

Compassus revised

Compassus lowered price talk on its $150 million incremental term loan (B2) to a range of Libor plus 425 bps to 450 bps from Libor plus 500 bps, changed the Libor floor to 0.75% from 1% and adjusted original issue discount talk to a range of 99.5 to 99.75 from 99.5, a market source remarked.

The company also added a repricing of its existing $400 million term loan that is talked at Libor plus 425 bps to 450 bps with a 0.75% Libor floor and a par issue price, the source continued.

Commitments continue to be due at noon ET on Friday.

BofA Securities Inc. is leading the deal.

The incremental term loan will be used to refinance existing notes due 2028, to fund a dividend and/or acquisitions and to pay related fees and expenses, and the repricing will take the existing term loan down from Libor plus 500 bps with a 1% Libor floor.

Compassus is a Nashville-based post-acute care company.

Cotiviti reworked

Cotiviti cut pricing on its fungible $550 million add-on first-lien term loan (B2/B+/BB-) to Libor plus 425 bps from Libor plus 450 bps and revised the issue price to par from talk in the range of 99 to 99.5, according to a market source.

Furthermore, the company added a repricing of its existing $3.143 billion first-lien term loan to Libor plus 425 bps from Libor plus 450 bps and the repricing is offered at par, the source said.

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

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

J.P. Morgan Securities LLC is leading the deal.

The add-on term loan will be used to fund the acquisition of HMS’ capabilities focused on the commercial, Medicare and federal markets.

Closing is expected in the first half of this year, subject to the approval of HMS shareholders and the satisfaction of customary conditions, including regulatory approvals.

Cotiviti is a South Jordan, Utah-based health care analytics company.

Bombardier tweaks timing

Bombardier Recreational Products accelerated the commitment deadline for its fungible $300 million add-on term loan B-1 (Ba3/BB-) due May 23, 2027 to noon ET on Thursday from noon ET on Friday, a market source remarked.

Pricing on the add-on term loan is Libor plus 200 bps with a 0% Libor floor, in line with the existing roughly $1.2 billion term loan B-1, and the new debt is talked with an original issue discount in the range of 98.75 to 99.

RBC Capital Markets, Citigroup Global Markets Inc., BMO Capital Markets and TD Securities (USA) LLC are leading the deal that will be used with cash on hand to repay an existing roughly $600 million term loan B-2 and fees and expenses associated with the transaction.

Bombardier is a Valcourt, Quebec-based designer, manufacturer, distributor and marketer of powersports vehicles and marine products.

Wheel Pros accelerated

Wheel Pros moved up the commitment deadline for its fungible $200 million incremental first-lien term loan (B-) due November 2027 to 5 p.m. ET on Thursday from Friday, a market source said.

Pricing on the incremental term loan is Libor plus 525 bps with a 1% Libor floor, in line with existing term loan pricing, and the new debt is talk with an original issue discount in the range of 99 to 99.5.

UBS Investment Bank and Jefferies LLC are leading the deal that will be used to repay a second-lien term loan.

Wheel Pros, a Clearlake Capital portfolio company, is a Denver-based distributor of proprietary branded wheels and performance tires.

Peraton guidance

Peraton held its call on Wednesday and announced talk on its $2.145 billion seven-year term loan (B1/B) at Libor plus 400 bps to 425 bps with a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

Commitments are due at 5 p.m. ET on Feb. 22.

J.P. Morgan Securities LLC, KKR Capital Markets, Barclays, Goldman Sachs Bank USA, UBS Investment Bank, Macquarie Capital (USA) Inc. and RBC Capital Markets are leading the deal that will be used to refinance existing debt and help fund the recently completed acquisition of Northrop Grumman Corp.’s IT services business for $3.4 billion in cash.

Peraton, a Veritas Capital portfolio company, is a provider of highly differentiated national security solutions and technologies.

Avaya proposed terms

Avaya came out with talk of Libor plus 425 bps with a 0% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months on its $743 million incremental term loan B-2 that launched with a call during the session, a market source said.

Commitments are due at noon ET on Feb. 17, the source added.

BofA Securities Inc. is leading the deal, which will be used with $100 million of balance sheet cash to refinance a non-extended term loan due 2024.

Avaya is a Santa Clara, Calif.-based business communications company.

BMC repricing

BMC Software launched without a call in the morning a $3.234 billion covenant-lite term loan (B2/B-) due October 2025 and a €911 million covenant-lite term loan (B2/B-) due October 2025, a market source remarked.

The U.S. term loan is talked at Libor plus 375 bps to 400 bps and the euro term loan is talked at Euribor plus 400 bps to 425 bps, the source continued. Both loans are talked with a 0% floor, a par issue price and 101 soft call protection for six months.

Commitments are due at noon ET on Feb. 17, the source added.

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to reprice an existing U.S. term loan down from Libor plus 425 bps with a 0% Libor floor and an existing euro term loan down from Euribor plus 475 bps with a 0% floor.

BMC is a Houston-based provider of software solutions that enable businesses to monitor, manage, automate and secure mission-critical IT workloads.

Gates holds call

Gates Global emerged in the morning with plans to hold a lender call at 11 a.m. ET to launch a $1.377 billion covenant-lite first-lien term loan (B1/B+) due March 2027 talked at Libor plus 275 bps with a 1% Libor floor, an original issue discount of 99.5 to 99.75 and 101 soft call protection for six months, according to a market source.

Commitments are due at 5 p.m. ET on Feb. 18, the source added.

Credit Suisse Securities (USA) LLC, BofA Securities Inc., Barclays, Citigroup Global Markets Inc., HSBC Securities (USA) Inc., Goldman Sachs Bank USA and Blackstone are leading the deal that will be used to refinance an existing term loan due March 2024 that is priced at Libor plus 275 bps with a 1% Libor floor.

Gates is a Denver-based manufacturer of application-specific fluid power and power transmission solutions.

Victory comes to market

Victory Capital launched without a call a $756 million term loan B talked at Libor plus 200 bps with a 0% Libor floor, a par issue price and 101 soft call protection for six months, a market source said.

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

RBC Capital Markets and Barclays are leading the deal that will be used to reprice an existing term loan down from Libor plus 250 bps with a 0% Libor floor.

Victory Capital is a Brooklyn, Ohio-based asset management firm.

Blackstone launches

Blackstone Mortgage Trust held a lender call at 2 p.m. ET to launch a fungible $200 million incremental term loan B-1 talked with an original issue discount of 99, according to a market source.

Like the existing term loan B-1, the incremental term loan is priced at Libor plus 225 bps with a 0% Libor floor.

Commitments are due at noon ET on Feb. 17, the source added.

J.P. Morgan Securities LLC is leading the deal, which will be used for general corporate purposes.

Blackstone Mortgage Trust is a New York-based real estate finance company.

Wedgewood seeks loan

Wedgewood Pharmacy held a lender call during the session to launch a $220 million term loan B (B3/B-) at talk of Libor plus 475 bps to 500 bps with a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, a market source said.

Commitments are due on Feb. 24, the source added.

Macquarie Capital (USA) Inc. and Natixis are leading the deal that will be used to help fund the buyout of the company by Partners Group.

Wedgewood Pharmacy is a compounding pharmacy devoted to animal health.

RealPage on deck

RealPage set a lender call for 1 p.m. ET on Thursday to launch its previously announced $2.75 billion first-lien term loan B, a market source remarked.

The company is also getting a $1 billion second-lien term loan that has been privately placed, and, based on the commitment letter, is expected to get a $250 million revolver.

Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC, UBS Investment Bank, Apollo, Barclays, BMO Capital Markets, Deutsche Bank Securities Inc., KKR Capital Markets, Nomura Securities International Inc., RBC Capital Markets, TB Credit, Truist Securities Inc., Wells Fargo Securities LLC and Stone Point are leading the deal.

Proceeds will be used with $7.36 billion of equity to fund the buyout of the company by Thoma Bravo for $88.75 in cash per share. The transaction is valued at about $10.2 billion, including net debt.

Closing is expected in the second quarter, subject to shareholder approval and regulatory approval.

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

Time allocates

In other news, Time Manufacturing Co. allocated its fungible $150 million incremental term loan due February 2023, according to a market source.

Pricing on the incremental term loan is Libor plus 500 bps with a 1% Libor floor and it was sold at an original issue discount of 99.76.

During syndication, the incremental term loan was upsized from $135 million, the discount was changed from 98.8 and the debt was revised from non-fungible.

BNP Paribas Securities Corp. is leading the deal that will be used to fund the acquisition of Ruthmann, a manufacturer of aerial work platforms based in Germany.

Closing is expected this quarter, subject to regulatory clearance.

Time Manufacturing is a Waco, Tex.-based manufacturer of vehicle-mounted aerial lifts, digger derricks, bucket trucks and bridge inspection equipment.

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