Terra Millennium breaks; Corporation Service changes emerge; M6 Midstream, Pike set talk

By Sara Rosenberg

New York, Aug. 8 – Terra Millennium Corp.’s funded and delayed-draw first-lien term loans made their way into the secondary market on Monday, with the strip of debt bid in line with the original issue discount.

Switching to the primary market, Corporation Service Co. (CSC) lowered price talk on its term loan B and modified the original issue discount.

Also, M6 Midstream (M6 ETX Holdings II MidCo LLC) and Pike Corp. released price talk on their term loans with launch, and Chefs’ Warehouse Inc. (Dairyland USA Corp.) joined this week’s new issue calendar.

Terra hits secondary

Terra Millennium’s $435 million six-year first-lien term loan and $30 million delayed-draw first-lien term loan broke for trading on Monday, with levels on the strip of debt quoted at 91 bid, 92 offered, according to a trader.

Pricing on the term loan debt is SOFR plus 600 basis points with a 0.5% floor and it was sold at an original issue discount of 91. The debt has 101 soft call protection for one year.

During syndication, the delayed-draw term loan was downsized from $100 million, pricing was increased from SOFR plus 550 bps, the discount widened from talk in the range of 93 to 94, the call protection was extended from six months, the maturity was shortened from seven years, the MFN was set for life and the excess cash flow sweep start point was revised to 75%.

The company’s $515 million credit facilities also include a $50 million revolver.

Macquarie Capital and Stifel are leading the deal that will be used to help fund the buyout of the company by H.I.G. Capital from Court Square Capital Partners.

Terra Millennium is a Salt Lake City-based provider of outsourced industrial maintenance services.

CSC tightens talk

In other news, Corporation Service trimmed price talk on its $1.25 billion seven-year term loan B to a range of SOFR+CSA plus 325 bps to 350 bps from a range of SOFR+CSA plus 375 bps to 400 bps and changed the original issue discount to 97 from talk in the range of 95 to 96, a market source remarked.

As before, the term loan B has a 0.5% floor, CSA of 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate, 101 soft call protection for one year and a ticking fee of the full margin after 30 days.

Commitments continued to be due at 5 p.m. ET on Monday, the source added.

The company already syndicated a $1.955 billion term loan A priced at SOFR plus 250 bps and a €40 million term loan A.

BofA Securities Inc., Jefferies LLC and Wells Fargo Securities LLC are leading the deal (B1/BB-/BBB-) that will be used with cash on hand to fund the acquisition of Intertrust NV for €20 in cash per share, or about €1.8 billion, and to refinance existing debt.

Corporation Service is a Wilmington, Del.-based provider of corporate, legal, tax and digital brand services. Intertrust is an Amsterdam-based provider of tech-enabled fund and corporate solutions.

M6 Midstream guidance

M6 Midstream held its lender call on Monday morning and announced price talk on its $600 million seven-year senior secured term loan B (B1/B+/BB+) at SOFR+CSA plus 475 bps with a 0.5% floor and an original issue discount of 96 to 96.5, according to a market source.

CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate, and the term loan has 101 soft call protection for six months, and a ticking fee of half the spread from days 46 to 90 and the full spread thereafter.

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

Barclays, Jefferies LLC and Blackstone Credit are leading the deal that will be used with $745 million of sponsor and management equity to fund the acquisition of Midcoast East Texas system.

M6 Midstream is a Houston-based midstream company.

Pike proposed terms

Pike held a lender call at 2 p.m. ET, launching a non-fungible $300 million incremental senior secured covenant-lite term loan B (B) due Jan. 21, 2028 talked at SOFR plus 350 bps to 375 bps with a 0% floor and an original issue discount of 95 to 96, a market source said.

The incremental term loan has 101 soft call protection for six months and 0 bps CSA.

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

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to repay the company’s outstanding 364-day second-lien term loan and to fund a portion of a contemplated acquisition.

Pike is a Mount Airy, N.C.-based specialty construction and engineering firm.

Chefs’ Warehouse on deck

Chefs’ Warehouse set a lender call for 10 a.m. ET on Tuesday to launch a $250 million seven-year first-lien term loan, a market source remarked.

The term loan has 101 soft call protection for six months, the source added.

Jefferies LLC is the left lead on the deal that will be used to refinance an existing first-lien term loan and fund cash to the balance sheet.

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

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