Alliant Insurance, Douglas Dynamics free up; Uber rises; Pomeroy, Imagine! changes emerge

By Sara Rosenberg

New York, July 8 – Alliant Insurance Intermediate LLC changed the original issue discount on its incremental term loan and sweetened the call protection, and then the debt made its way into the secondary market on Friday.

Also, Douglas Dynamics Inc. tightened the issue price on its incremental term loan before breaking, and Uber Technologies Inc.’s term loan headed higher from where it freed up late in the previous session.

In more happenings, Pomeroy Group lifted the spread on its term loan and finalized the original issue discount at the wide end of guidance, Imagine! Print Solutions LLC modified the issue price on its add-on term loan B, and Cast & Crew Entertainment Services and Printpack Inc. surfaced with new deal plans.

Alliant revised, breaks

Alliant Insurance tightened the original issue discount on its $280 million senior secured incremental first-lien covenant-light term loan B due Aug. 14, 2022 to 99 from 98 and pushed out the 101 soft call protection to one year from six months, a source said.

Pricing on the loan is still Libor plus 400 basis points with a 1% Libor floor.

Recommitments were due by 1:30 p.m. ET on Friday, and by late afternoon the debt had freed up for trading, with levels quoted at 99½ bid, par offered, a trader added.

Morgan Stanley Senior Funding Inc., MCS Capital Markets LLC and KKR Capital Markets LLC are leading the deal that will be used to fund acquisitions.

Closing is expected in late July.

Alliant Insurance is a Newport Beach, Calif.-based specialty insurance brokerage firm.

Douglas tweaked, trades

Douglas Dynamics changed the original issue discount on its fungible $130 million incremental term loan (B2) to 99.5 from 99, a market source remarked.

The incremental loan is priced at Libor plus 425 bps with a 1% Libor floor, which matches existing term loan pricing, and all of the debt is getting 101 soft call protection for six months.

With final terms in place, the loan began trading in the afternoon, and levels were seen at 99¾ bid, 100½ offered, another source added.

J.P. Morgan Securities LLC and Wells Fargo Securities LLC are leading the deal that will be used with an ABL revolver draw and cash on hand to fund the $206 million acquisition of Dejana Truck and Utility Equipment.

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

Douglas Dynamics is a Milwaukee-based manufacturer of vehicle attachments and equipment. Dejana is a Kings Park, N.Y.-based truck equipment company.

Uber gains ground

Also in trading, Uber Technologies’ $1.15 billion seven-year covenant-light term loan rose to 99 bid, 99½ offered, after freeing up really late in the day on Thursday at 98½ bid, 99 offered, according to a trader.

Pricing on the term loan is Libor plus 400 bps with a 1% Libor floor, and it was sold at an original issue discount of 98.

During syndication, the term loan was upsized from $1 billion and the discount firmed at the wide end of the 98 to 99 talk.

Morgan Stanley Senior Funding Inc., Barclays, Goldman Sachs & Co. and Citigroup Global Markets Inc. are leading the deal that will be used to fund growth and for general corporate purposes.

Uber is a San Francisco-based online transportation network company.

Pomeroy updates pricing

Back in the primary market, Pomeroy Group raised the spread on its $240 million 5.5-year first-lien term loan to Libor plus 600 bps from Libor plus 550 bps and set the original issue discount at 97, the wide end of the 97 to 98 talk, a market source said.

As before, the term loan has a 1% Libor floor and 101 soft call protection for six months.

The company’s $280 million credit facility (B2/B), which is expected to allocate in the Tuesday/Wednesday timeframe, also includes a $40 million revolver.

Natixis is leading the deal that will be used with a privately placed $75 million second-lien term loan to fund the merger of Pomeroy and Tolt Solutions.

Under the transaction agreement, Clearlake Capital Group LP entered into a definitive agreement to acquire Pomeroy and simultaneously back the combination of Pomeroy with Tolt Solutions.

First-lien leverage is 3.7 times and total leverage is 4.8 times.

Pomeroy Group is a provider of IT infrastructure solutions and managed services.

Imagine! tightens discount

Imagine! Print Solutions moved the original issue discount on its fungible $50 million add-on term loan B to 99.75 from 99.5, a market source remarked.

As before, pricing on the add-on loan is Libor plus 600 bps with a 1% Libor floor, which matches pricing on the existing $325 million term loan B.

Commitments were due at 5 p.m. ET on Friday, accelerated from Tuesday, and allocations are expected on Monday, the source added.

RBC Capital Markets LLC and Societe Generale are leading the deal that will be used to fund the acquisition of Midnight Oil Agency.

Closing on the acquisition is expected in the third quarter, subject to customary conditions.

Imagine! is a Minneapolis-based provider of printed in-store marketing solutions. Midnight Oil is a Burbank, Calif.-based marketing agency.

Cast & Crew readies deal

Cast & Crew Entertainment Services scheduled a lender call for 2:30 p.m. ET on Wednesday to launch a fungible $80 million add-on first-lien term loan, according to a market source.

RBC Capital Markets is leading the debt that will be used with $50 million of privately placed second-lien notes due 2024 to fund the acquisition of CAPS Payroll from Uni-World Capital.

Cast & Crew, a Silver Lake portfolio company, is a Burbank, Calif.-based provider of technology-enabled payroll, production accounting and related value-added services to the entertainment industry. CAPS is a Culver City, Calif.-based technology-driven payroll services company serving film and TV studios, commercial production companies, as well as venues, music tours and live events.

Printpack on deck

Printpack set a bank meeting for Tuesday to launch a $250 million seven-year term loan B, a market source remarked.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance existing first-and second-lien term loan debt.

Printpack is an Atlanta-based manufacturer of flexible and specialty rigid packaging.

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