Chefs’ Warehouse, United PF loans surface in secondary market; Lummus readies deal

By Sara Rosenberg

New York, June 5 – Chefs’ Warehouse Inc. finalized the size of its extended term loan and tweaked the call protection before freeing up for trading during Friday’s market hours.

Also, United PF Holdings LLC’s incremental first-lien term loan made its way into the secondary market, with levels quoted well above its original issue discount.

In other news, Lummus Technology (Illuminate Buyer LLC) joined the near-term primary calendar.

Chefs’ Warehouse updated

Chefs’ Warehouse firmed the size of its amended and extended first-lien term loan due June 22, 2025 at around $171.2 million, post paydown, leaving its non-extended term loan due June 22, 2022 sized at about $31.2 million, according to a market source.

Additionally, the company changed the call protection on the extended term loan to non-callable for one year, then a 101 hard call in year two, the source said. Initially, the call protection on the extended piece was expected to be the same as the existing call protection on the non-extended piece.

As before, pricing on the extended term loan is Libor plus 550 basis points with a 0% Libor floor, and pricing on the non-extended term loan is Libor plus 350 bps with a 0% Libor floor.

Jefferies LLC is leading the term loan debt (B2/B).

Chefs’ Warehouse breaks

On Friday, Chefs’ Warehouse’s extended term loan freed to trade and levels were quoted at 95 bid, 96 offered, another source added.

With the extension, the company is adding a minimum liquidity covenant subject to no less than $35 million of aggregate cash and ABL availability, and is paying down 15% of the outstanding principal amount of the first-lien term loan, payable to extending lenders only.

Consenting lenders are getting a fee equal to 50 bps of the aggregate principal amount of the extended term loan following the paydown.

Chefs’ Warehouse is a Ridgefield, Conn.-based distributor of specialty food products.

United PF frees up

United PF Holdings’ $100 million incremental first-lien term loan due Dec. 30, 2026 began trading too, with levels quoted at par ½ bid, 103½ offered, a market source remarked.

Pricing on the term loan is Libor plus 850 bps with a 1% Libor floor and it was sold at an original issue discount of 98. The debt is non-callable for one year, then at 101 in year two.

During syndication, pricing on the term loan was lowered from Libor plus 900 bps and the discount was tightened from 97.

Jefferies LLC is leading the deal that will be used to pay down an outstanding revolving credit facility balance and fund excess cash to the balance sheet.

United PF is an Austin, Tex.-based operator of Planet Fitness clubs.

Lummus on deck

Lummus Technology set a lender call for 10 a.m. ET on Tuesday to launch $925 million of credit facilities, according to a market source.

The facilities consist of a $175 million revolver, a $150 million letter of credit facility and a $600 million seven-year covenant-lite first-lien term loan, the source said.

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

Commitments are due at 5 p.m. ET on June 18.

Credit Suisse Securities (USA) LLC, Macquarie Capital (USA) Inc., RBC Capital Markets, Societe Generale, UBS Investment Bank and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to help fund the acquisition of the company by the Chatterjee Group and Rhône Capital from McDermott International Inc. for $2.725 billion.

Lummus is a developer and licensor of mission essential technologies for the refining and petrochemical industries, and a supplier of catalysts and proprietary equipment.

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