Guidehouse frees to trade; SRS Distribution changes emerge; Buckeye gives price talk

By Sara Rosenberg

New York, Oct. 7 – Guidehouse LLP’s bank debt made its way into the secondary market on Monday afternoon, with the incremental first-lien term loan quoted above its original issue discount and the incremental second-lien term loan bid in line with its issue price.

Moving to the primary market, SRS Distribution Inc. lifted the spread and widened the original issue discount on its incremental term loan.

Additionally, Buckeye Partners LP disclosed price talk with launch, and Upstream Rehabilitation, Berry Global Group Inc. and Aimbridge Hospitality joined this week’s primary calendar.

Guidehouse breaks

Guidehouse’s credit facilities freed up for trading on Monday, with the $640 million incremental covenant-lite first-lien term loan (B1/B-) due May 2025 quoted at 99 1/8 bid, 99½ offered and the $200 million incremental covenant-lite second-lien term loan (Caa1/CCC) due May 2026 quoted at 98½ bid, 99½ offered, according to a trader.

Pricing on the fungible incremental first-lien term loan is Libor plus 450 basis points with a 0% Libor floor and it was sold at an original issue discount of 99. The debt has 101 soft call protection for six months.

The incremental second-lien term loan is priced at Libor plus 850 bps with a 0% Libor floor and it was sold at a discount of 98.5. The tranche has hard call protection of 102 in year one and 101 in year two.

During syndication, pricing on the incremental first-lien term loan was increased from talk in the range of Libor plus 375 bps to 400 bps. Also, the spread on the incremental second-lien term loan was lifted from talk in the range of Libor plus 800 bps to 825 bps and the debt was restructured to non-fungible from fungible.

Along with the term loans, the company is upsizing its existing revolver to $125 million from $50 million.

Guidehouse lead banks

RBC Capital Markets, Macquarie Capital (USA) Inc., UBS Investment Bank and Credit Suisse Securities (USA) LLC are leading Guidehouse’s bank debt.

Proceeds will be used to help fund the acquisition of Navigant Consulting Inc. for $28 in cash per share in a transaction valued at about $1.1 billion.

Closing is expected in the fourth quarter, subject to regulatory approvals and customary conditions.

In connection with this transaction, pricing on the company’s existing first-lien term loan will increase from Libor plus 300 bps to match the incremental first-lien term loan, and pricing on the existing second-lien term loan will be lifted to Libor plus 800 bps from Libor plus 750 bps.

Guidehouse, a portfolio company of Veritas Capital, is a provider of management consulting services to government clients. Navigant is a Chicago-based professional services firm.

SRS widens pricing

Switching to the primary market, SRS Distribution raised pricing on its non-fungible $250 million incremental term loan (B3/B) to Libor plus 450 bps from talk in the range of Libor plus 400 bps to 425 bps and changed the original issue discount to 98 from 99, according to a market source.

BofA Securities, Inc., Barclays and UBS Investment Bank are leading the deal that will be used to repay revolver borrowings and to fund future acquisitions.

SRS Distribution is a McKinney, Tex.-based roofing products distributor.

Buckeye guidance

Buckeye Partners held its bank meeting on Monday and announced price talk on its $1.75 billion seven-year covenant-lite first-lien term loan at Libor plus 300 bps to 325 bps with a 0% Libor floor and an original issue discount of 99.5, a market source said.

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

The company’s $2.35 billion of senior secured credit facilities (B1//BB+) also include a $600 million revolver.

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

Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, BofA Securities Inc., CIBC, MUFG, National Australia Bank, SunTrust Robinson Humphrey Inc. and TD Securities (USA) LLC are leading the deal that will be used with $500 million of notes and $4.255 billion of equity to fund the acquisition of the company by IFM Investors for $41.50 per common unit. The transaction has a $10.3 billion enterprise value.

Closing is expected in the fourth quarter, subject to approval of a majority of the Buckeye unitholders, regulatory approvals and other customary conditions.

Buckeye is a Houston-based owner and operator of integrated midstream assets.

Upstream on deck

Upstream Rehabilitation set a bank meeting for 10 a.m. ET in New York on Tuesday to launch $745 million of credit facilities, according to a market source.

The facilities consist of a $50 million revolver, a $520 million seven-year covenant-lite first-lien term loan talked with a 0% Libor floor and 101 soft call protection for six months, and a $175 million eight-year covenant-lite second-lien term loan talked with a 0% Libor floor and call protection of 102 in year one and 101 in year two, the source said.

Commitments are due at 5 p.m. ET on Oct. 22.

Credit Suisse Securities (USA) LLC, Ally Bank, Athyrium Capital and Northwestern Mutual are leading the deal that will be used to help fund the buyout of the company by funds managed by Revelstoke Capital Partners.

Upstream is a Birmingham, Ala.-based provider of outpatient rehabilitation services.

Berry readies deal

Berry Global Group emerged with plans to hold a lender call at 11 a.m. ET on Tuesday to launch $2,032,500,000 of term loans, a market source remarked.

The debt consists of a $1.545 billion term loan W due October 2022 and a $487.5 million term loan X due January 2024, both talked at Libor plus 200 bps with a 0% Libor floor, a par issue price and 101 soft call protection for six months, the source added.

Commitments are due at noon ET on Friday.

Goldman Sachs Bank USA is leading the deal that will be used to reprice an existing $1.545 billion term loan Q and an existing $487.5 million term loan R down from Libor plus 225 bps.

Berry is an Evansville, Ind.-based manufacturer and marketer of plastic packaging products, plastic film products, specialty adhesives and coated products.

Aimbridge coming soon

Aimbridge Hospitality will hold a bank meeting at 9 a.m. ET on Tuesday to launch a $400 million add-on term loan B, according to a market source.

Commitments are due on Oct. 22, the source said.

J.P. Morgan Securities LLC is leading the deal that will be used to help fund the company’s merger with Interstate Hotels & Resorts.

Closing is expected by the end of this year, subject to regulatory approval and customary conditions.

Aimbridge is a Dallas-based hotel management firm. Interstate is an Arlington, Va.-based hotel operator.

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