Epicor revised; US Foods, CHG, Tecta, Heartland Dental, Lakeshore and Liquid Tech set talk

By Sara Rosenberg

New York, Aug. 14 – In the primary market on Monday, Epicor Software Corp. increased the size of its incremental term loan, reduced the spread, tightened the original issue discount and accelerated the commitment deadline.

Also, US Foods Inc., CHG Healthcare, Tecta America Corp., Heartland Dental LLC, Lakeshore Learning Materials LLC and Liquid Tech Solutions LLC all approached lenders with new loan transactions, and Quikrete Holdings Inc. joined this week’s primary calendar.

Epicor reworked

Epicor Software raised its non-fungible incremental term loan to $500 million from $350 million, trimmed pricing to SOFR plus 375 basis points from SOFR plus 425 bps and changed the original issue discount to 99 from 98.5, a market source said.

As before, the term loan has a 0.75% floor and 101 soft call protection for six months.

Commitments were due at 5 p.m. ET on Monday, moved up from 5 p.m. ET on Tuesday, the source added.

KKR Capital Markets is leading the deal that will be used to repay some second-lien term loan borrowings and floating-rate notes, and for general corporate purposes.

Epicor is an Austin, Tex.-based provider of enterprise business software services.

US Foods holds call

US Foods emerged in the morning with plans to hold a lender call at 11 a.m. ET on Monday to launch a $722 million covenant-lite term loan due Nov. 22, 2028 talked at SOFR+CSA plus 250 bps with a 0% floor, a par issue price and 101 soft call protection for six months, according to a market source. CSA is 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

Citigroup Global Markets Inc. is leading the deal that will be used to reprice an existing $722 million 2021 incremental term loan due Nov. 22, 2028 down from SOFR+CSA plus 275 bps with a 0% floor.

Existing lender commitments are due at 5 p.m. ET on Wednesday and new lender commitments are due at noon ET on Thursday, the source added.

Closing is expected during the week of Aug. 21.

US Foods is a Rosemont, Ill.-based foodservice distributor.

CHG proposed terms

CHG Healthcare held its lender call in the afternoon, launching a $530 million incremental first-lien term loan (B2/B) due September 2028 at talk of SOFR plus 400 bps to 425 bps with a 0.5% floor, an original issue discount of 98.5 and 101 soft call protection for six months, a market source remarked.

The term loan has ticking fees of half the margin from days 46 to 90 and the full margin thereafter.

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

Goldman Sachs Bank USA, JPMorgan Chase Bank, Barclays, BMO Capital Markets and Citigroup Global Markets Inc. are leading the deal that will be used to refinance the company’s existing second-lien notes and to fund a dividend.

Closing is expected on Oct. 2.

Ares, Leonard Green & Partners and GIC are the sponsors.

CHG is a Salt Lake City-based private health care staffing company that specializes in temporary physician staffing services.

Tecta shops incremental

In the morning, Tecta America surfaced with plans to hold a lender call at 2 p.m. ET on Monday to launch a non-fungible $200 million incremental covenant-lite term loan B due April 10, 2028 talked at SOFR+CSA plus 450 bps with a 0.75% floor, an original issue discount of 98 and 101 soft call protection for six months, according to a market source. CSA is 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

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

Wells Fargo Securities LLC and RBC Capital Markets are leading the deal that will be used to repay an existing second-lien term loan, to pre-fund acquisitions under letters of intent, and to pay related fees and expenses.

The incremental term loan is coterminous with the company’s existing $603 million term loan B.

Tecta is a Rosemont, Ill.-based provider of commercial roofing services.

Heartland comes to market

Heartland Dental launched during the session a fungible $150 million add-on first-lien term loan due April 30, 2028 talked with an original issue discount of 96.5 to 97, a market source said.

Pricing on the add-on term loan is SOFR plus 500 bps with a 0.75% floor.

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

KKR Capital Markets is the left lead on the deal that will be used to pay down the company’s existing first-lien term loan due 2025.

Heartland Dental is an Effingham, Ill.-based dental support organization.

Lakeshore launches

Lakeshore Learning launched in the morning without a lender call a fungible $100 million incremental first-lien term loan due Oct. 1, 2028 talked with an original issue discount of 98.79 and 101 soft call protection for six months, a market source remarked.

Like the existing term loan, the incremental term loan is priced at SOFR+CSA plus 350 bps with a 0.5% floor. CSA is 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

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

Jefferies LLC, BMO Capital Markets, Wells Fargo Securities LLC, Citizens and KeyBanc Capital Markets are leading the deal that will be used to fund a one-time shareholder distribution.

Lakeshore is a Carson, Calif.-based developer, distributor and retailer of educational products and classroom furniture, primarily serving the Early Childhood Education and K-5 markets.

Liquid Tech add-on

Liquid Tech held a lender call at 1 p.m. ET on Monday to launch a fungible $50 million add-on term loan talked with an original issue discount of 98, according to a market source.

Pricing on the add-on term loan is SOFR+CSA plus 475 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.

Commitments are due on Aug. 21, the source added.

Citizens Bank is leading the deal that will be used to repay revolver borrowings.

Liquid Tech is a tech-enabled provider of route-based, on-site mobile refueling solutions.

Quikrete on deck

Quikrete set a lender call for 11 a.m. ET on Tuesday to launch a $1.679 billion covenant-lite term loan B-1 due March 18, 2029 talked at SOFR+CSA plus 275 bps with a 0% floor, a par issue price and 101 soft call protection for six months, a market source said. 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 noon ET on Thursday, the source added.

Wells Fargo Securities LLC is the left lead on the deal that will be used to reprice an existing term loan B-1 down from SOFR+ARRC CSA plus 300 bps.

Quikrete is an Atlanta-based packaged cement products company.

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