Heartland Dental, Lakeshore Learning break; StandardAero, SonicWall, CHG changes emerge

By Sara Rosenberg

New York, Aug. 16 – Heartland Dental LLC increased the size of its add-on first-lien term loan and firmed the original issue discount at the tight end of talk before freeing up for trading on Wednesday, and Lakeshore Learning Materials LLC’s incremental first-lien term loan broke as well.

In more happenings, StandardAero (Dynasty Acquisition Co.) lowered pricing on its first-lien term loan debt, tightened the original issue discount and outlined B-1 and B-2 tranche sizes.

Also, SonicWall Inc. reduced the size of first-lien term loan and finalized the spread at the high end of guidance, and CHG Healthcare revised spread talk on its incremental first-lien term loan and changed the issue price.

Heartland modified, frees

Heartland Dental raised its fungible add-on first-lien term loan due April 30, 2028 to $350 million from $150 million and finalized the original issue discount at 97, the tight end of the 96.5 to 97 talk, a market source said.

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

Recommitments were due at 10 a.m. ET on Wednesday, and the add-on term loan broke for trading during the session, with levels quoted at 97¼ bid, 98¼ offered, a trader 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 hits secondary

Lakeshore Learning Materials’ fungible $150 million incremental first-lien term loan (B2/B) due Oct. 1, 2028 began trading too, with levels quoted at 99 1/8 bid, 99 5/8 offered, according to a trader.

Pricing on the incremental term loan is SOFR+CSA plus 350 bps with a 0.5% floor, in line with existing term loan pricing, and the new debt was sold at an original issue discount of 98.79 and has 101 soft call protection for six months. CSA is 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

During syndication, the incremental term loan was upsized from $100 million.

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.

StandardAero reworked

StandardAero cut pricing on its $2.575 billion of first-lien term loan debt (B3/B-) due August 2028 to SOFR plus 400 bps from SOFR plus 425 bps, changed the original issue discount to 99 from 98.5, and outlined final tranche splits as $1,802,500,000 of term loan B-1 and $772,500,000 of term loan B-2, with the two tranches to be allocated as a strip and trade as such, a market source remarked.

The term loan debt has a 25 bps pricing step-down upon an initial public offering, a 0% floor and 101 soft call protection for six months.

Recommitments were due at noon ET on Wednesday, the source added.

UBS Investment Bank and RBC Capital Markets are leading the deal that will be used to amend and extend an existing first-lien term loan by about 2½ years and refinance an existing 2021 incremental first-lien term loan into the new tranche.

StandardAero is a Scottsdale, Ariz.-based provider of aircraft engine maintenance, repair and overhaul services for the aerospace and defense industries.

SonicWall revised

SonicWall scaled back its first-lien term loan due May 2028 to $650 million from $725 million and firmed pricing at SOFR plus 500 bps, the high end of the SOFR plus 475 bps to 500 bps talk, according to a market source.

As before, the term loan has a 0.5% floor, an original issue discount of 97 and 101 soft call protection for six months.

Recommitments were due at noon ET on Wednesday, the source added.

UBS Investment Bank, RBC Capital Markets, Mizuho and Truist are leading the deal that will be used to amend and extend by three years an existing first-lien term loan, to repay $50 million of the company’s existing second-lien term loan, leaving a pro forma size of $150 million at close, and to pay associated premiums, fees and expenses.

The borrowers are SonicWall US Holdings Inc. and SonicWall International LLC.

SonicWall is a Milpitas, Calif.-based provider of network security solutions focused on securing mid-market enterprises as well as campus and distributed networks.

CHG tweaked

CHG Healthcare modified price talk on its $530 million incremental first-lien term loan (B2/B) due September 2028 to a range of SOFR plus 375 bps to 400 bps from a range of SOFR plus 400 bps to 425 bps, and adjusted the original issue discount to 99 from 98.5, according to a market source.

The term loan still has a 0.5% floor, 101 soft call protection for six months, and ticking fees of half the margin from days 46 to 90 and the full margin thereafter.

Commitments are due at 10 a.m. ET on Thursday, accelerated from 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 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.

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