Ontic, MeridianLink break; Cloud, Protective Industrial revised; Johnstone accelerated

By Sara Rosenberg

New York, May 13 – Ontic (Bleriot US Bidco Inc.) increased the size of its first-lien term loan B, revised the maturity, added a pricing step-down and tightened the issue price for new money commitments, and MeridianLink Inc. upsized its first-lien term loan, and then these deals freed to trade on Monday.

In more happenings, Cloud Software Group Inc. (Picard Parent Inc.) raised the size of its first-lien term loan B, Protective Industrial Products Inc. (PIP) upsized its incremental first-lien term loan B and tightened the original issue discount, and Johnstone Supply LLC moved up the commitment deadline for its term loan B.

Also, Hamilton Projects Acquiror LLC, Heartland Dental LLC, American Airlines Inc., Flexera Software LLC, Resideo Technologies Inc., Buckeye Partners LP, AL GCX Holdings LLC, Michael Baker International LLC, GIP Pilot Acquisition Partners LP, Core & Main Inc. and Upbound Group Inc. all released price talk with launch.

Furthermore, Staples Inc., Goodnight Water Solutions Holdings LLC and Walker & Dunlop Inc. joined this week’s new issue calendar.

Ontic reworked

Ontic raised its covenant-lite first-lien term loan B (B2/B) to $1.425 billion from $1.375 billion, changed the maturity to October 2030 from October 2028, added a 25 bps pricing step-down at 0.5x inside closing first-lien net leverage and modified the issue price for new money to par from 99.75, according to a market source.

Of the total term loan amount, $475 million is a fungible incremental piece, increased from $425 million, and $950 million is a repricing of the company’s existing term loan B due October 2028.

Pricing on the term loan remained at SOFR plus 325 basis points with a 0% floor, and the issue price for existing money remained at par.

The term loan still has 101 soft call protection for six months and no CSA.

Nomura Securities, Barclays, Citigroup Global Markets Inc., CVC, KKR Capital Markets and Macquarie Capital (USA) Inc. are leading the deal.

Ontic hits secondary

Recommitments for Ontic’s term loan were due at noon ET on Monday and the debt freed to trade in the afternoon, with levels quoted at par 3/8 bid, par 5/8 offered on the break and then moved up to par ½ bid, par ¾ offered, a trader added.

The incremental portion will be used to help fund the acquisition of Ontic by an investor group led by CVC Fund VIII, to pay fees and expenses, and, due to the upsizing for general corporate purposes, including prospective license investments, and the repricing will take the existing term loan B down from SOFR+ARRC CSA plus 400 bps with a 0% floor.

The company is also getting a $125 million revolver due July 2028, upsized from an existing size of $85 million.

The repricing/extension will be effective in mid-May and the incremental is expected to close in late June.

Ontic is a U.K.-based provider of OEM-licensed parts and aftermarket services for mature aerospace and defense platforms.

MeridianLink upsized, frees

MeridianLink lifted its first-lien term loan due Nov. 10, 2028 (BB-) to $476 million from $426 million, and kept pricing at SOFR plus 275 bps with a 0% floor and a par issue price, a market source said.

The term loan still has 101 soft call protection for six months and no CSA.

Commitments were due at 2 p.m. ET on Monday and the term loan began trading later in the day, with levels quoted at par ¼ bid, par 5/8 offered, another source added.

BofA Securities Inc. is the left lead on the deal that will be used to reprice an existing $426 million first-lien term loan due Nov. 10, 2028 down from SOFR+ARRC CSA plus 300 bps with a 0.5% floor and, due to the upsizing, for general corporate purposes.

MeridianLink is a Costa Mesa, Calif.-based provider of cloud-based software solutions for regional and community financial institutions.

Cloud Software revised

Cloud Software upsized its first-lien term loan B due March 30, 2029 to $6.295 billion from $4.089 billion, and left pricing at SOFR plus 400 bps with a 0.5% floor and a par issue price, according to a market source.

The term loan still has 101 soft call protection for six months and no CSA.

Commitments are due at noon ET on Tuesday, changed from 5 p.m. ET on Monday, the source added.

BofA Securities Inc., Goldman Sachs Bank USA, UBS Investment Bank and others are leading the deal that will be used with proceeds from a recently priced senior secured notes offering to partially repay and reprice an existing term loan B due March 30, 2029 down from SOFR+10 bps CSA plus 450 bps with a 0.5% floor, and the funds from the upsizing will repay the company’s $2.206 billion term loan A.

Cashless rolls from the term loan A into the upsized term loan B are available.

The term loan B size is net of a $915 million paydown from the notes.

Cloud Software is a provider of software franchises for and across data, automation, insight and collaboration serving enterprises across private, public, managed and sovereign cloud environments.

Protective Industrial updated

Protective Industrial Products increased its fungible incremental first-lien term loan B to $348 million from $225 million and modified the original issue discount to 99.75 from 99.5, a market source said.

Pricing on the term loan is SOFR+CSA plus 400 bps with a 0.75% floor. CSA is ARRC standard of 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

Recommitments were due at 5 p.m. ET on Monday and allocations are expected on Tuesday, the source added.

Antares Capital is the left lead on the deal that will be used to refinance an existing $150 million term loan priced at SOFR plus 500 bps with a 0.75% floor and to repay all, as opposed to some, of an existing second-lien term loan.

Protective Industrial, a portfolio company of Odyssey Investment Partners, is a Latham, N.Y.-based provider of essential, consumable and high-performance hand and arm protection as well as other personal protective equipment and workwear.

Johnstone tweaks timing

Johnstone Supply accelerated the commitment deadline for its $1 billion seven-year covenant-lite term loan B (B2/B) to 5 p.m. ET on Wednesday from 5 p.m. ET on Thursday, a market source remarked.

Talk on the term loan is SOFR plus 350 bps to 375 bps with a 0% floor, an original issue discount of 99.5 and 101 soft call protection for six months.

Wells Fargo Securities LLC is the left lead on the deal that will be used to repay the company’s existing credit facilities, for working capital and other general corporate purposes, including to finance permitted acquisitions and other permitted investments and restricted payments and for any other purpose not prohibited under the definitive documentation, and to pay related fees, costs and expenses.

Redwood Holdings is the sponsor.

Johnstone Supply is a Portland, Ore.-based wholesale distributor of heating, ventilation, air conditioning, and refrigeration equipment, parts, and supplies.

Hamilton holds call

Hamilton Projects Acquiror emerged in the morning with plans to hold a lender call at 11 a.m. ET on Monday to launch a $1 billion seven-year senior secured first-lien term loan B (Ba3/BB-) talked at SOFR plus 400 bps to 425 bps with a 0.5% floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months, according to a market source.

Commitments are due at 5 p.m. ET on May 22, the source added.

Morgan Stanley Senior Funding Inc. is the left lead on the deal that will be used to refinance an existing term loan B due 2027 and fund a distribution.

Hamilton Projects is the owner of combined cycle gas fired power plants.

Heartland launches

Heartland Dental surfaced early with plans to hold a lender call at 4 p.m. ET to launch a roughly $1,819,800,000 first-lien term loan due April 30, 2028 talked at SOFR plus 450 bps with a 0.75% floor and 101 soft call protection for six months, a market source said.

Of the total term loan amount, $100 million is a fungible incremental piece to refinance existing debt and roughly $1,719,800,000 is a repricing of the company’s existing first-lien term loan due April 30, 2028 down from SOFR plus 500 bps with a 0.75% floor.

New money commitments are talked with an original issue discount of 99.75 and rolled money commitments are talked with a par issue price, the source added.

Commitments and consents are due at 2 p.m. ET on Thursday.

Jefferies LLC and KKR Capital Markets are leading the deal.

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

American repricing

American Airlines came out in the morning with plans to hold a lender call at 1 p.m. ET to launch a $1.1 billion term loan B due June 4, 2029 talked at SOFR plus 250 bps to 275 bps with a 0% floor, a par issue price and 101 soft call protection for six months, according to a market source.

Commitments from existing lenders are due at 5 p.m. ET on Wednesday and commitments from new lenders are due at noon ET on Thursday, the source continued.

Citigroup Global Markets Inc. is leading the deal that will be used to reprice an existing term loan B due June 4, 2029 down from SOFR plus 350 bps with a 0% floor.

The term loan collateral package will be shared with the pari passu 2029 senior secured notes and potentially a five-year revolver, which is anticipated to be up to $915 million in size, the source added.

American Airlines is a Fort Worth-based airline company.

Flexera comes to market

Flexera Software emerged early with intentions to host a lender call at 1 p.m. ET on Monday to launch a roughly $1.959 billion first-lien term loan due March 2028 talked at SOFR plus 350 bps with no CSA, a 0.75% floor, a par issue price and 101 soft call protection for six months, a market source remarked.

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

Jefferies LLC is the left lead on the deal that will be used to reprice an existing term loan due March 2028 down from SOFR+CSA plus 375 bps with a 0.75% floor. Existing CSA is ARRC standard of 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

Flexera is an Itasca, Ill.-based SaaS and Software Asset Management and Software Monetization provider.

Resideo launches

Resideo Technologies held a lender call at 2 p.m. ET, launching a new $600 million seven-year term loan B at talk of SOFR plus 200 bps to 225 bps with a 0% floor and an original issue discount of 99.5, and a repricing of its existing roughly $1.1 billion term loan B due Feb. 12, 2028 at talk of SOFR plus 200 bps with a 0% floor and a par issue price, according to market sources.

Both term loans (Ba1) have 101 soft call protection for six months and no CSA.

Commitments are due at noon ET on May 21, sources added.

BofA Securities Inc., Morgan Stanley Senior Funding Inc., BNP Paribas Securities Corp., PNC, Truist Securities and US Bank are the joint bookrunners on the new term loan and arrangers with Citizens, HSBC Securities (USA) Inc., KeyBanc Capital Markets and Bank of Nova Scotia. BofA is the arranger on the existing term loan with others to be announced.

Resideo buying Snap One

Resideo will use the new term loan with cash on hand and a $500 million perpetual convertible preferred equity investment from Clayton, Dubilier & Rice LLC to fund the acquisition of Snap One Holdings Corp. for $10.75 per share in cash, for a transaction value of about $1.4 billion, including forecasted net debt of Snap One at the closing of around $460 million.

Closing on the acquisition is expected in the second half of the year, subject to customary conditions, including regulatory approvals.

The repricing will take the existing term loan down from SOFR+ARRC CSA plus 225 bps with a 0.5% floor.

Resideo is a Scottsdale, Ariz.-based manufacturer and developer of technology-driven products and components that provide critical comfort, energy management, and safety and security solutions to homes. Snap One is a Charlotte, N.C.-based distributor of smart-living technology.

Buckeye talk

Buckeye Partners disclosed price talk of SOFR plus 200 bps with a 0% floor, an original issue discount of 99.75 for net new money and a par issue price for rollover money on its $997.5 million term loan due 2030 in connection with its afternoon lender call, a market source said.

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

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

MUFG is leading the deal that will be used to reprice an existing term loan due 2030 down from SOFR plus 250 bps with a 0% floor.

Buckeye, backed by IFM investors, is a Houston-based owner and operator of integrated midstream assets.

AL GCX shops loan

AL GCX Holdings held a lender call at 2:30 p.m. ET, launching a fungible $200 million incremental term loan B due May 2029 with original issue discount talk of 99.75, according to a market source.

Pricing on the term loan is SOFR plus 325 bps with a 0.5% floor.

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

Barclays is leading the deal that will be used to fund the acquisition of Kinetik’s 16% interest in AL GCX for $495 million.

ArcLight Capital Partners LLC is the sponsor.

AL GCX is a new-build 450-mile Permian natural gas pipeline.

Michael Baker guidance

Michael Baker announced original issue discount talk of 99.25 on its fungible $175 million incremental first-lien term loan due December 2028 (B2/B) with its afternoon lender call, a market source remarked.

Pricing on the incremental term loan is SOFR+CSA plus 500 bps with a 0.75% floor, and the debt is getting 101 soft call protection for six months.

Commitments are due at 5 p.m. ET on May 21, the source added.

UBS Investment Bank is the left lead on the deal that will primarily be used to fund the purchase price of four acquisitions.

Pro forma for the transaction, the term loan will total about $577 million.

Michael Baker is a Pittsburgh-based provider of engineering and consulting services focused on complex infrastructure challenges.

GIP Pilot holds call

GIP Pilot held a lender call at noon ET to launch a $1.097 billion term loan talked at SOFR plus 250 bps to 275 bps with a 0% floor and a par issue price, according to market source.

JPMorgan Chase Bank is the left lead on the deal that will be used to reprice an existing term loan down from SOFR plus 300 bps with a 0% floor.

GIP Pilot is a Global Infrastructure Partners backed holding company that owns a 40% non-operating interest in Columbia Pipelines Holding Co. LLC, a natural gas pipelines and gas storage system.

Core & Main repricing

Core & Main Inc. held a lender call at 1:30 p.m. ET, launching a $1.459 billion term loan B due 2028 at talk of SOFR plus 200 bps to 225 bps with no CSA, a 0% floor and a par issue price, a market source remarked.

JPMorgan Chase Bank is leading the deal that will be used to reprice an existing term loan down from SOFR+10 bps CSA plus 250 bps with a 0% floor.

Core & Main is a St. Louis-based distributor of water, wastewater, storm drainage and fire protection products, and related services.

Upbound seeks loan

Upbound Group held a lender call at noon ET on Monday to launch an $809 million term loan B due February 2028 at talk of SOFR plus 275 bps to 300 bps with a par issue price, a market source said.

JPMorgan Chase Bank is the left lead on the deal that will be used to reprice an existing term loan B down from SOFR plus 325 bps.

Upbound Group, formerly known as Rent-A-Center, is a Plano, Tex.-based omni-channel platform company committed to elevating financial opportunity for all through innovative, inclusive, and technology-driven financial solutions that address the evolving needs and aspirations of consumers.

Staples on deck

Staples set a lender call for 10:30 a.m. ET on Tuesday to launch a $1.8 billion first-lien term loan B (B-) talked at SOFR plus 500 bps to 525 bps with a 0.5% floor, an original issue discount of 98 to 98.5 and 101 soft call protection for six months, according to a market source.

Commitments are due at 5 p.m. ET on May 22, the source added.

Morgan Stanley Senior Funding Inc., JPMorgan Chase Bank, UBS Investment Bank, BofA Securities Inc., Deutsche Bank Securities Inc., Goldman Sachs Bank USA, RBC Capital Markets, Barclays, Jefferies LLC, Mizuho and Wells Fargo Securities LLC are leading the deal. UBS is the administrative agent.

The term loan will be used with $2.35 billion of other secured debt to refinance existing debt and pay related fees and expenses. Last week, the company announced that it was planning a first-lien financing to refinance its existing term loan and 7½% senior secured notes due 2026.

The company is also planning to amend and extend its existing ABL credit facility.

Staples is a Framingham, Mass.-based business supplies retailer.

Goodnight joins calendar

Goodnight Water Solutions will hold a lender call at 11 a.m. ET on Tuesday to launch a $400 million five-year senior secured term loan B (B+) talked at SOFR plus 500 bps to 525 bps with a 0% floor, an original issue discount of 97.5 to 98 and 101 soft call protection for six months, a market source said.

Commitments are due at noon ET on May 22, the source added.

TD Securities (USA) LLC, Wells Fargo Securities LLC and Texas Capital Bank are leading the deal that will be used to refinance existing debt and to pay related fees and expenses.

Goodnight Water is a Dallas-based water midstream operator servicing a portfolio of blue-chip producers under long-term contracts with assets located in the core of the Permian, Bakken and Eagle Ford basins.

Walker coming soon

Walker & Dunlop scheduled a lender call for Tuesday to launch a $198 million add-on term loan B-1 due December 2028 talked with an original issue discount of 99.75, according to a market source.

Pricing on the term loan B-1 is SOFR plus 225 bps with a 0.5% floor.

JPMorgan Chase Bank is leading the deal that will be used to refinance an existing term loan B-2 due December 2028 priced at SOFR plus 300 bps with a 0.5% floor.

Walker & Dunlop is a Bethesda, Md.-based commercial real estate and multi-family finance company.

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