IQ-EQ, Plusgrade break; Kohler, Waupaca tweaked; Wood Mackenzie, Shearer’s accelerated

By Sara Rosenberg

New York, Jan. 29 – IQ-EQ (Saphilux Sarl) set the spread on its euro term loan B at the low end of revised talk before freeing up for trading on Monday, and Plusgrade Inc.’s term loan B made its way into the secondary market as well.

In more happenings, Kohler Energy (Discovery Energy Holding Corp.) upsized its U.S. and euro term loan B, set the tranche sizes, raised the spread, widened original issue discount guidance and sweetened the call protection, and Waupaca Foundry Inc. increased the size of its term loan B, lowered the spread and revised the original issue discount guidance.

Also, Wood Mackenzie (Planet US Buyer LLC) and Shearer’s Foods (Fiesta Purchaser Inc.) moved up the commitment deadlines for their term loan transactions, and ION Markets extended the commitment deadline for its first-lien term loan.

Furthermore, BGIS, United Rentals (North America) Inc., Duravant LLC (Engineered Machinery Holdings Inc.), PlayAGS Inc. (AP Gaming I LLC), Covanta, TenCate Grass Holding BV (Touchdown Acquirer Inc.), Verra Mobility Corp. (VM Consolidated Inc.), Howden Group Holdings Ltd., Core & Main Inc., Waystar, Inizio and Renaissance Learning Inc. all released price talk in connection with lender calls, and Copeland and Consolidated Energy Finance SA joined this week’s primary calendar.

IQ-EQ updated

IQ-EQ firmed pricing on its €500 million term loan B due July 2028 at Euribor plus 400 basis points, the low end of revised talk of Euribor plus 400 bps to 425 bps and down from initial talk in the range of Euribor plus 425 bps to 450 bps, according to a market source.

The euro term loan still has a 0% floor and a par issue price.

The company is also getting a $520 million term loan B due July 2028 priced at SOFR plus 400 bps with a 0.5% floor and a par issue price.

Both term loans have 101 soft call protection for six months.

Previously in syndication, pricing on the U.S. term loan was lowered from SOFR plus 425 bps.

Nomura is the physical bookrunner on the U.S. term loan, and Deutsche Bank Securities Inc., HSBC, NatWest, Goldman Sachs, JPMorgan Chase Bank and Morgan Stanley Senior Funding Inc. are passive bookrunners. Deutsche Bank, HSBC and NatWest are the physical bookrunners on the euro term loan, and Nomura, Goldman Sachs, JPMorgan and Morgan Stanley are passive bookrunners. NatWest is the administrative agent.

IQ-EQ hits secondary

On Monday, IQ-EQ’s term loans broke for trading, with the U.S. and the euro term loans both quoted at par 1/8 bid, par ½ offered, a trader added.

The term loans will be used to reprice an existing U.S. first-lien term loan B due July 2028 down from SOFR plus 475 bps with 0.5% floor and an existing euro first-lien term loan B due July 2028 down from Euribor plus 475 bps with a 0% floor.

Astorg Asset Management is the sponsor.

IQ-EQ is an investor services and independent fund specialist.

Plusgrade tops OID

Plusgrade’s $420 million term loan B (B2/B) due 2031 freed to trade too, with levels quoted at 99½ bid, par offered, a market source remarked.

Pricing on the 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.

During syndication, the discount on the term loan firmed at the tight end of the 98.5 to 99 talk.

JPMorgan Chase Bank, Barclays, BMO Capital Markets, Wells Fargo Securities LLC and Bank of Nova Scotia are leading the deal that will be used to fund an investment in the company by General Atlantic.

Plusgrade is a Montreal-based provider of ancillary revenue solutions for the travel industry.

Kohler Energy revised

Back in the primary market, Kohler Energy lifted its seven-year U.S. and euro term loan B (B1/B) to roughly $1.65 billion equivalent from $1.625 billion equivalent, and set the U.S. tranche size at $1.275 billion and the euro tranche size at €350 million, according to a market source.

Additionally, pricing on the U.S. and euro term loans was raised to SOFR/Euribor plus 475 bps from talk in the range of SOFR/Euribor plus 375 bps to 400 bps, the original issue discount talk on the term loans was modified to a range of 96.5 to 97 from 98, the call protection was changed to a 101 hard call for one year from a 101 soft call for six months, and some revisions were made to documentation, the source continued.

As before, the term loans have a 0% floor, and ticking fees of half the margin from days 46 to 90 and the full margin thereafter.

Commitments are due at 11 a.m. ET on Tuesday, the source added.

Kohler Energy leads

BofA Securities Inc., Goldman Sachs, BMO Capital Markets, Deutsche Bank Securities Inc., HSBC Securities, Mizuho, Nomura, Santander, Stifel and UBS Investment Bank are leading Kohler Energy’s term loans.

The new debt will be used to help fund the acquisition of a majority stake in Kohler Co.’s energy division by Platinum Equity, and the funds from the upsizing will finance the original issue discount. Kohler will continue to stay invested in the energy business following completion of the transaction.

Closing is expected in the first half of this year.

Kohler Energy is a provider of mission critical power solutions to homes, businesses and equipment.

Waupaca reworked

Waupaca Foundry raised its six-year covenant-lite term loan B to $360 million from $330 million, trimmed pricing to SOFR plus 600 bps from talk in the range of SOFR plus 625 bps to 650 bps and changed the original issue discount talk to a range of 98.5 to 99 from 98, a market source said.

The term loan still has a 1% floor, and soft call protection of 102 in year one and 101 in year two.

Commitments are due at noon ET on Tuesday, accelerated from 5 p.m. ET on Tuesday, the source added.

BMO Capital Markets, PNC Capital, KeyBanc Capital Markets and Silver Point are leading the deal that will be used to help fund the buyout of the company by Monomoy Capital Partners from Proterial Ltd.

Closing is expected early this year, subject to customary conditions.

Waupaca Foundry is a Waupaca, Wis.-based supplier of cast and machined iron castings.

Wood Mackenzie accelerated

Wood Mackenzie moved up the commitment deadline for its $1.315 billion seven-year term loan B to noon ET on Wednesday from noon ET on Thursday, according to a market source.

Talk on the term loan is SOFR plus 375 bps to 400 bps with no CSA, an original issue discount of 99 and 101 soft call protection for six months.

BofA Securities Inc., Barclays, BMO Capital Markets, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., JPMorgan Chase Bank and Nomura are leading the deal that will be used to refinance an existing $1.244 billion unitranche term loan.

Wood Mackenzie is an Edinburgh, U.K.-based provider of data, analytics, research and consulting services for the energy, renewables and natural resources sectors.

Shearer’s tweaks timing

Shearer’s Foods accelerated the commitment deadline for its $1.22 billion seven-year covenant-lite term loan B (B3/B) to 5 p.m. ET on Wednesday from noon ET on Thursday, a market source remarked.

Talk on the term loan is SOFR plus 425 bps to 450 bps with a 0% floor, an original issue discount of 98 and 101 soft call protection for six months.

Deutsche Bank Securities Inc., UBS Investment Bank, Blue Owl, BMO Capital Markets Corp., BNP Paribas Securities Corp., RBC Capital Markets LLC, TD Securities (USA) LLC, Goldman Sachs Bank USA, Rabobank, Citizens, Macquarie Capital (USA) Inc., Mizuho, Natixis and Stifel are leading the deal that will be used with $500 million of senior secured notes to help fund the buyout of the company by Clayton Dubilier & Rice from Ontario Teachers’ Pension Plan Board.

Shearer’s Foods is a Massillon, Ohio-based contract manufacturer and private label supplier serving the snack industry.

ION changes deadline

ION Markets extended the commitment deadline for its roughly $1.822 billion first-lien term loan (B3/B-) due April 2028 to 10 a.m. ET on Friday from noon ET on Tuesday, according to a market source.

Of the total term loan amount, $125 million is a fungible incremental term loan that will be used to fund a distribution and about $1.697 billion is for a repricing of the company’s existing term loan.

Talk on the term loan is SOFR plus 425 bps with a 0% floor, an original issue discount of 99.5 on new commitments, a discount of 99.75 to par on rolled positions, and 101 soft call protection for six months.

UBS Investment Bank is the left lead on the deal.

The borrowers are ION Trading Finance Ltd. and ION Trading Technologies Sarl.

ION Markets is a provider of mission-critical software for the global capital markets.

BGIS holds call

BGIS emerged in the morning with plans to hold a lender call at noon ET on Monday to launch an $885 million senior secured covenant-lite first-lien term loan (B3) due May 31, 2028 talked at SOFR plus 450 bps with a 0.5% floor, an original issue discount of 98 and 101 soft call protection for six months, a market source said.

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

Citigroup Global Markets Inc. is the left lead on the deal that will be used to refinance an existing first-lien term loan due May 31, 2026.

BGIS is an integrated facilities management company.

United Rentals refinancing

United Rentals surfaced early in the day with plans to hold a lender call at 11 a.m. ET to launch a $750 million seven-year covenant-lite term loan B (Baa3) talked at SOFR plus 175 bps with a 0% 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 noon ET on Feb. 7, the source added.

Wells Fargo Securities LLC is the left lead on the deal that will be used with a $208 million draw on the company’s existing ABL revolver due 2027 to refinance an existing term loan B due 2025.

United Rentals is a Stamford, Conn.-based equipment rental company.

Duravant shops incremental

Duravant announced in the morning that it would hold a lender call at 2 p.m. ET to launch a fungible $125 million incremental first-lien term loan due May 21, 2028 talked with an original issue discount of 99.25 to 99.5, a market source remarked.

Like the existing term loan, the incremental term loan is priced at SOFR+CSA plus 375 bps with a 25 bps step-down at less than 5x senior secured first-lien net leverage and a 0.75% floor. CSA is ARRC standard of 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

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

Jefferies LLC, Societe Generale, UBS Investment Bank, Citigroup Global Markets Inc., KeyBanc Capital Markets, MUFG, Antares Capital, Fifth Third and Rabobank are leading the deal that will be used to repay revolver borrowings and to add cash to the balance sheet.

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

PlayAGS repricing

PlayAGS scheduled in the morning a lender call for 2:30 p.m. ET to launch a roughly $549.9 million first-lien term loan due Feb. 15, 2029 talked at SOFR plus 375 bps with no CSA, a 0.75% floor, a par issue price and 101 soft call protection for six months, according to a market source.

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

Jefferies LLC is leading the deal that will be used to reprice an existing first-lien term loan, which is expected to be paid down by $15 million from roughly $564.9 million, down from SOFR+CSA plus 400 bps with a 0.75% floor. CSA on the existing loan is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

PlayAGS is a Las Vegas-based designer and supplier of diverse gaming products and services to the gaming industry.

Covanta launches

Covanta came out in the morning with plans to hold a lender call at 2 p.m. ET to launch $579 million of term loans due Nov. 30, 2028 talked at SOFR plus 275 bps with a 0.5% floor and 101 soft call protection for six months, a market source said.

Of the total term loan amount, $150 million is an incremental tranche that will be used to repay revolver borrowings and to pay transaction costs, and $429 million is to reprice an existing $399 million term loan B and $30 million term loan C down from SOFR plus 300 bps with a 0.5% floor.

The incremental loan is talked with an original issue discount of 99.5 and the repricing is talked with a par issue price, the source added.

Commitments are due at 5 p.m. ET on Thursday.

Barclays is the left lead on the deal.

Covanta is a Morristown, N.J.-based provider of sustainable waste solutions.

TenCate guidance

TenCate held its lender call in the morning and announced talk on its $835 million seven-year term loan B and €350 million seven-year term loan B at SOFR/Euribor plus 425 bps to 450 bps with a 0% floor and an original issue discount of 98.5, according to a market source.

Included in the U.S. term loan B is a $150 million delayed-draw tranche.

The term loans (B2/B) have 101 soft call protection for six months.

Commitments are due at noon ET on Feb. 8, the source added.

BofA Securities Inc. is the left lead on the U.S. loan. BofA Securities and Jefferies LLC are the joint physical bookrunners on the euro loan. Deutsche Bank Securities Inc., BMO Capital Markets, Societe Generale and ING are arrangers. BofA Securities is the administrative agent.

TenCate being acquired

TenCate will use the term loans and contributed equity to fund its buyout by Leonard Green & Partners LP from Crestview Partners and select other shareholders, to add cash to the balance sheet and to pay related fees. The current senior management team of TenCate will remain invested in the company.

Closing is expected in February.

TenCate is a Netherlands-based manufacturer, distributor and installer of artificial turf and other surfaces for sports and the outdoor living segment.

Verra holds call

Verra Mobility emerged in the morning with plans to hold a lender call at noon ET to launch a roughly $705 million first-lien term loan due March 26, 2028 talked at SOFR plus 275 bps to 300 bps with no CSA, a 0% floor, a par issue price and 101 soft call protection for six months, a market source remarked.

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

BofA Securities Inc. is leading the deal that will be used to reprice an existing term loan down from SOFR+CSA plus 325 bps with a 0% floor.

Verra is a Mesa, Ariz.-based provider of smart mobility technology solutions and services.

Howden comes to market

Howden Group held a lender call at 11:15 a.m. ET to launch a $3.435 billion seven-year term loan B, a $1.083 billion term loan B due 2030 and a €660 million seven-year term loan B, according to a market source.

Talk on the U.S. seven-year term loan is SOFR plus 325 bps to 350 bps with a 0.5% floor and an original issue discount of 99.5, talk on the U.S. term loan due 2030 is SOFR plus 325 bps to 350 bps with a 0.5% floor and a par issue price, and talk on the euro term loan is Euribor plus 400 bps with a 0% floor and an original issue discount of 99.5, the source said. All of the term loans (B2) have 101 soft call protection for six months.

The company also plans on getting a £630 million revolver.

JPMorgan Chase Bank, Morgan Stanley Senior Funding Inc., BofA Securities Inc., Barclays, Goldman Sachs, RBC Capital Markets, Citigroup Global Markets Inc., HSBC Securities, ING, Lloyds, NatWest and Santander are leading the deal. Morgan Stanley is the administrative agent.

Howden refinancing

Howden will use the term loan with $750 million of senior secured notes and $500 million of senior notes to repay its $620 million SOFR plus 525 bps term loan due November 2027, its $2.708 billion Libor plus 325 bps term loan due November 2027, $253 million equivalent euro Euribor plus 450 bps term loan due November 2027, $688 million equivalent euro Euribor plus 350 bps term loan due November 2027, and $455 million second-lien term loan, reprice its existing U.S. term loan due 2030 down from SOFR plus 400 bps, pay $67 million in estimated fees, expenses and original issue discounts, and add $591 million to the balance sheet for general corporate purposes.

Commitments for the U.S. loans are due at 5 p.m. ET on Thursday and commitments for the euro loan are due at noon ET on Thursday, the source added.

Howden Group is a London-based insurance intermediary group.

Core & Main seeks loan

Core & Main surfaced early in the day with the intention to hold a lender call at 2:30 p.m. ET to launch a non-fungible $750 million incremental term loan B (Ba3/BB-) talked at SOFR plus 225 bps to 250 bps with a 0% floor, an original issue discount of 99.5 and 101 soft call protection for six months, a market source said.

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

JPMorgan Chase Bank is the left lead on the deal that will be used for general corporate purposes, including the repayment of about $430 million in total outstanding borrowings under the company’s asset-based lending facility, investment in organic growth and productivity initiatives, M&A, share repurchases or other initiatives aligned with the company’s capital allocation strategy.

The company is also pursuing an amendment to its $1.25 billion asset-based lending credit agreement to extend the maturity to 2029 from 2026.

Core & Main is a St. Louis-based distributor of water, wastewater, storm drainage and fire protection products, and related services.

Waystar holds call

Waystar held a lender call at 1 p.m. ET, launching a $2.2 billion first-lien term loan (B3/B-/BB-) due May 2029 at talk of SOFR plus 400 bps with a 25 bps step-down at 0.5x inside closing leverage and a 25 bps step-down upon an initial public offering, a 0% floor, an original issue discount of 99.5 and 101 soft call protection for six months, according to a market source.

Commitments are due at noon ET on Feb. 6, the source added.

JPMorgan Chase Bank, Barclays, BofA Securities Inc., Deutsche Bank Securities Inc., Goldman Sachs Bank USA and RBC Capital Markets are leading the deal that will be used to refinance an existing $1.731 billion first-lien term loan due 2026 and a $469 million privately placed second-lien term loan due 2027.

Waystar is a provider of health care payments software.

Inizio launches

Inizio held a lender call at 1 p.m. ET to launch a fungible $150 million add-on term loan B due August 2028 talked with an original issue discount of 99.03, a market source remarked.

Pricing on the add-on term loan is SOFR+10 bps CSA plus 425 bps with a 0.5% floor.

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

JPMorgan Chase Bank, Citigroup Global Markets Inc. and Morgan Stanley Senior Funding Inc. are leading the deal that will be used to repay revolver borrowings and for general corporate purposes.

Inizio is a provider of medical communications, marketing, advisory and packaging services to pharma and biotech clients.

Renaissance repricing

Renaissance Learning held a lender call at 1 p.m. ET, launching a $2.015 billion term loan B due April 7, 2030 at talk of SOFR plus 425 bps with a 0.5% floor, an original issue discount of 99.75 for net new money, a par issue price for existing lenders and 101 soft call protection for six months, according to a market source.

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

Barclays is the left lead on the deal that will be used to reprice an existing term loan due 2030 down from SOFR plus 475 bps with a 0.5% floor.

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

Copeland joins calendar

Copeland will hold a lender call at 10 a.m. ET on Tuesday to launch a roughly $1.769 billion term loan B due May 2030 talked at SOFR plus 250 bps with a 0% floor, an original issue discount of 99.75 to par for new money indications, a par issue price for existing lenders and 101 soft call protection for six months, a market source said.

Commitments are due at 3 p.m. ET on Thursday, the source added.

RBC Capital Markets is the left lead on the deal that will be used to reprice an existing term loan B due May 2030 down from SOFR plus 300 bps with a 0% floor.

The existing term loan B is expected to be paid down by $500 million from roughly $2.269 billion with other secured debt in connection with the repricing.

Blackstone is the sponsor.

Copeland is a manufacturer of mission critical, highly engineered heating, ventilation, air conditioning and refrigeration components.

Consolidated Energy on deck

Consolidated Energy set a lender call for 10 a.m. ET on Tuesday to launch a $745 million senior secured first-lien term loan B (//BB+), according to a market source.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used with $580 million of other unsecured debt to refinance bridge facilities used in part to finance an acquisition of a majority stake in OMC, to repay existing term loan Bs due 2025, and for general corporate purposes.

Consolidated Energy is an acquirer and developer of companies that focus on alternative waste management and energy production.

Ankura allocated

In other news, Ankura Consulting Group LLC allocated its $577.1 million covenant-lite first-lien term loan due March 2028, a market source remarked.

Pricing on the term loan is SOFR plus 425 bps with a 25 bps step-down if corporate ratings are B2/B with a stable outlook and a 0.75% floor. The debt was issued at par, and has 101 soft call protection for six months and 0 bps CSA.

During syndication, pricing on the term loan was increased from SOFR plus 400 bps and the step-down was added.

Deutsche Bank Securities Inc. is the left lead on the deal that will be used to reprice an existing $577.1 million first-lien term loan due March 2028 down from SOFR+CSA plus 450 bps with a 0.75% floor. CSA on the existing loan is ARRC standard of 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

Ankura is a specialty consulting platform.

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