Vistra, OneDigital break; Alliant, Element revised; Iron Mountain, Flexera accelerated

By Sara Rosenberg

New York, Dec. 6 – Vistra Operations Co. LLC reduced the spread on its term loan and finalized the original issue discount at the wide end of guidance before freeing up for trading on Wednesday, and OneDigital’s incremental term loan broke for trading as well.

In more happenings, Alliant Holdings Intermediate LLC tightened the issue price on its first-lien term loan B-6, and Element Solutions Inc./MacDermid Inc. increased the size of its term loan B and modified the original issue discount.

Also, Iron Mountain Information Management LLC and Flexera Software LLC moved up the commitment deadlines for their term loan transactions.

Additionally, price talk surfaced on Clean Harbors Inc., TouchTunes (TA TT Buyer LLC) and Chobani LLC, and R1 RCM Inc. joined this week’s primary calendar.

Vistra flexes, frees

Vistra Operations trimmed pricing on its $2.5 billion seven-year senior secured term loan to SOFR plus 200 basis points from SOFR plus 225 bps and set the original issue discount at 99, the wide end of the 99 to 99.5 talk, according to a market source.

As before, the term loan has a 0% floor and 101 soft call protection for six months.

Recommitments were due at 11 a.m. ET on Wednesday and the term loan broke for trading later in the day, with levels quoted at 99¼ bid, 99¾ offered, another source added.

Barclays, BMO Capital Markets, BNP Paribas Securities Corp., Citigroup Global Markets Inc., Credit Agricole, Goldman Sachs Bank USA, JPMorgan Chase Bank, Mizuho, Morgan Stanley Senior Funding Inc., MUFG, RBC Capital Markets, SMBC, Truist Securities, BofA Securities Inc., Natixis, Bank of Nova Scotia, KeyBanc Capital Markets and Societe Generale are leading the deal. Credit Suisse is the administrative agent.

Proceeds will be used to extend and upsize the company’s existing $2.493 billion term loan B due 2025.

Vistra is an Irving, Tex.-based integrated generation, wholesale and retail power company.

OneDigital hits secondary

OneDigital’s fungible $325 million incremental term loan (B3/B) due November 2027 freed to trade during the session, with levels quoted at 99¾ bid, par ¼ offered, a market source remarked.

Pricing on the incremental term loan is SOFR+CSA plus 425 bps with a 0.5% floor and it was sold at an original issue discount of 99.27. CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate. The debt has 101 soft call protection for six months.

During syndication, the discount was changed from talk in the range of 98.5 to 99 and the incremental loan was switched to be fungible with the company’s existing term loan due November 2027.

JPMorgan Chase Bank, Barclays, Goldman Sachs Bank USA, Golub Capital, BofA Securities Inc., Wells Fargo Securities LLC and Bank of Nova Scotia are leading the deal that will be used to fund acquisitions and for working capital and general corporate purposes.

OneDigital is an Atlanta-based provider of employee benefits insurance brokerage and retirement consulting services.

Alliant revised

Back in the primary market, Alliant Holdings modified the issue price on its $2,369,624,281 seven-year senior secured covenant-lite first-lien term loan B-6 (B2/B) to par from 99.75, a market source said.

Pricing on the term loan B-6 remained at SOFR plus 350 bps with a 0.5% floor, and the debt still has 101 soft call protection for six months.

Commitments continued to be due at 5 p.m. ET on Wednesday, the source added.

Morgan Stanley Senior Funding Inc. is the left lead on the deal that will be used with $750 million of senior secured notes to refinance/amend and extend an existing term loan B-4 due 2027 and an existing term loan B-5 due 2027.

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

Element reworked

Element Solutions lifted its seven-year term loan B to $1.15 billion from $1 billion and adjusted the original issue discount to 99.75 from 99.5, a market source remarked.

Pricing on the term loan remained at SOFR plus 200 bps with a 0% floor, and the debt still has 101 soft call protection for six months.

Commitments are due at 2 p.m. ET on Thursday, accelerated from 5 p.m. ET on Thursday, the source added.

BofA Securities Inc. is the left lead on the deal that will be used with cash from the balance sheet to refinance the company’s existing term loan B due 2026, and the funds from the upsizing will repay some term loan A borrowings.

Element Solutions is a Fort Lauderdale, Fla.-based diversified specialty chemicals company.

Iron Mountain accelerated

Iron Mountain changed the commitment deadline for its $1 billion seven-year senior secured term loan B (BB) to 5 p.m. ET on Thursday from noon ET on Monday, according to a market source.

Talk on the term loan is SOFR plus 250 bps with a 0% floor, an original issue discount of 99 and 101 soft call protection for six months.

Barclays, JPMorgan Chase Bank and others to be announced are the bookrunners on the deal. JPMorgan is the administrative agent.

The term loan will be used for general corporate purposes, including, but not limited to, the repayment of revolver borrowings, and to pay related fees and expenses.

Iron Mountain is a Portsmouth, N.H.-based information management company.

Flexera tweaks timing

Flexera Software moved up the commitment deadline for its $425 million incremental first-lien term loan due March 2028 to 5 p.m. ET on Wednesday from noon ET on Thursday, a market source said.

Talk on the incremental term loan is SOFR+CSA plus 375 bps to 400 bps with a 0.75% floor, an original issue discount of 98.5 to 99.04, 101 soft call protection for six months, and ticking fees of half the spread from days 61 to 90 and the full spread thereafter.

CSA is ARRC standard of 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

Jefferies LLC, Barclays, UBS Investment Bank, Goldman Sachs Bank USA and Mizuho are leading the deal that will be used with equity to fund an acquisition.

Flexera is an Itasca, Ill.-based provider of SaaS-based IT management solutions that enable enterprises to accelerate digital transformation and multiply the value of their technology investments.

Clean Harbors repricing

Clean Harbors held a lender call at 1 p.m. ET on Wednesday to launch a $983 million term loan B due October 2028 talked at SOFR+CSA plus 175 bps with a 0% floor, an original issue discount of 99.75 to par and 101 soft call protection for six months, according to a market source.

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 5 p.m. ET on Dec. 19, the source added.

Goldman Sachs Bank USA is the left lead on the deal that will be used to reprice an existing $983 million term loan B due October 2028 down from SOFR+ARRC CSA plus 200 bps.

Clean Harbors is a Norwell, Mass.-based provider of environmental and industrial services.

TouchTunes guidance

TouchTunes held its lender call in the afternoon, launching its fungible $140 million incremental covenant-lite first-lien term loan due April 1, 2029 with original issue discount talk of 98.789, a market source remarked.

Pricing on the incremental term loan is SOFR plus 525 bps with a 0.5% floor, and the debt has 101 soft call protection for six months.

Commitments are due on Dec. 13, the source added.

Citizens Bank is leading the deal that will be used to pay down a portion of the company’s existing second-lien term loan and to fund a shareholder distribution.

TA Associates is the sponsor.

TouchTunes is a New York-based music distributor through a network of jukeboxes.

Chobani talk emerges

Chobani came out with talk of SOFR plus 400 bps to 425 bps with a 0% floor and an original issue discount of 98.5 on its non-fungible $550 million incremental term loan B (B1/B-) due Oct. 23, 2027, according to a market source.

The term loan, which launched with a lender call on Tuesday, has 101 soft call protection for six months, and a ticking fee of half the margin from days 46 to 90 and the full margin thereafter.

Commitments are due at noon ET on Dec. 13, the source added.

BofA Securities Inc., Goldman Sachs Bank USA, JPMorgan Chase Bank and TD Securities (USA) LLC are leading the deal that is intended to be used to finance an acquisition. However, if the acquisition does not close, the proceeds will be used to repay senior unsecured notes due 2025 at par plus all associated fees and expenses.

Chobani is a food and beverage company known for Greek Yogurt.

R1 RCM on deck

R1 RCM set a lender call for 11:30 a.m. ET on Thursday to launch a non-fungible $500 million incremental senior secured first-lien term loan B (Ba3/B+/BBB-) due June 2029, a market source said.

Commitments are due at 5 p.m. ET on Dec. 14, the source added.

JPMorgan Chase Bank, BofA Securities Inc. and Barclays provided the debt commitment that will be used with borrowing under the company’s existing revolver and cash on hand to fund the acquisition of Acclara from Providence for $675 million in cash and warrants to purchase 12.2 million shares of R1 RCM stock.

Closing is expected in early 2024, subject to customary conditions, including regulatory approvals, as well as the entry of Providence and Acclara into a 10-year revenue cycle management agreement.

Pro forma credit agreement net leverage is expected to be around 3.2x at close.

R1 RCM is a Murray, Utah-based provider of technology-driven solutions that transform the patient experience and financial performance of health care providers. Acclara is a provider of revenue cycle management solutions to the health care industry.

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