Virtu accelerates deadline; SRS, Addison Group, Power Stop, RV Retailer release talk

By Sara Rosenberg

New York, Jan. 6 – In the primary market on Thursday, Virtu Financial Inc. (VHF Parent LLC) moved up the commitment deadline for its first-lien term loan, and SRS Distribution Inc., Addison Group, Power Stop LLC and RV Retailer announced price talk with launch.

Additionally, Griffon Corp. and MJH Life Sciences joined the near-term new issue calendar.

Virtu tweaks timing

Virtu Financial accelerated the commitment deadline for its $1.8 billion seven-year senior secured covenant-lite first-lien term loan to 1 p.m. ET on Friday from 5 p.m. ET on Tuesday, a market source remarked.

Talk on the term loan is SOFR+CSA plus 300 basis points to 325 bps with a 0.5% floor, an original issue discount of 99.5 and 101 soft call protection for six months.

CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate, the source said.

JPMorgan Chase Bank, Goldman Sachs Bank USA, RBC Capital Markets, Barclays, Jefferies LLC, CIBC and BMO Capital Markets are leading the deal that will be used to repay an existing senior secured term loan, to fund share repurchases under the company’s authorized repurchase program and for general corporate purposes.

The company has already received commitments for a $250 million revolving credit facility due 2025 to refinance its existing $50 million revolver due 2022.

Pro forma total leverage will be 1.4x, and net leverage will be 0.9x.

Virtu is a New York-based provider of financial services technology.

SRS proposed terms

SRS Distribution held its lender call on Thursday afternoon and disclosed price talk on its non-fungible $700 million incremental term loan due 2028 (B2/B-) at SOFR plus 10 bps CSA plus 375 bps with a 0.5% floor and an original issue discount of 99 to 99.5, according to a market source.

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

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

BofA Securities Inc. and Barclays are leading the deal that will be used to help fund acquisitions, including the recently completed purchase of AquaCentral, a distributor of pool equipment and supplies, from Tenex Capital Management.

SRS Distribution is a McKinney, Tex.-based building materials distributor.

Addison sets talk

Addison Group launched on its afternoon call its $525 million term loan B (B) at talk of Libor plus 450 bps with a 0.5% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, a market source said.

Commitments are due on Jan. 19, the source added.

The company is also getting a $65 million ABL revolver.

KKR Capital Markets and Credit Suisse Securities (USA) LLC are leading the deal that will be used to help fund the buyout of the company by Trilantic North America from Odyssey Investment Partners LLC.

Addison Group is a Chicago-based professional services firm specializing in talent solutions and consulting services.

Power Stop guidance

Power Stop came out with talk of Libor plus 475 bps with a 0.5% Libor floor and an original issue discount of 99 on its $395 million seven-year first-lien term loan a few hours before its 11 a.m. ET bank meeting kicked off, according to a market source.

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

The company’s $435 million of credit facilities also include a $40 million five-year revolver.

Commitments are due at 4 p.m. ET on Jan. 20.

Jefferies LLC and Antares Capital are leading the deal that will be used to refinance existing debt and fund a distribution to shareholders.

Power Stop is a manufacturer of aftermarket automotive brake kits.

RV Retailer launches

RV Retailer launched on its morning call its fungible $200 million incremental term loan B due February 2028 and repricing of its existing $596 million term loan B due February 2028 at talk of SOFR plus CSA plus 350 bps to 375 bps with a 0.75% floor and 101 soft call protection for six months, a market source remarked.

The incremental term loan is talked with an original issue discount of 99.5 and the repricing is offered at par, the source continued.

CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate, the source said.

Commitments and consents are due at noon ET on Jan.1 3, the source added.

Goldman Sachs Bank USA is leading the debt (B1/BB-).

The incremental term loan will be used to fund the company’s near-term acquisition pipeline and the repricing will change pricing on the existing term loan from Libor plus 400 bps with a 0.75% Libor floor.

Redwood Capital is the sponsor.

RV Retailer is a recreational vehicle retail company.

Griffon on deck

Griffon set a lender call for 11 a.m. ET on Monday to launch its previously announced $750 million seven-year covenant-lite term loan B (Ba2), according to a market source.

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

BofA Securities Inc., BNP Paribas Securities Corp., Deutsche Bank Securities Inc. and Wells Fargo Securities LLC are leading the deal that will be used with borrowings under the company’s existing revolver and cash on hand to fund the $845 million acquisition of Hunter Fan Co. from MidOcean Partners.

The purchase is being done through Griffon’s subsidiary, AMES Cos. Inc., a provider of consumer and professional tools and products for home storage and organization, landscaping and enhancing outdoor lifestyles.

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

Griffon is a New York-based diversified management and holding company. Hunter Fan is a Memphis-based designer and distributor of residential ceiling, commercial and industrial fans.

MJH readies deal

MJH Life Sciences scheduled a lender call for 10:30 a.m. ET on Monday to launch a $650 million seven-year term loan B, a market source said.

The term loan has 101 soft call protection for six months, the source added.

BofA Securities Inc. and PNC Bank are leading the deal that will be used to help fund the acquisition of a majority interest in the company by BDT Capital Partners LLC. The Hennessy Family, who founded the company, will continue to hold a significant minority ownership position.

MJH Life Sciences is a Cranbury, N.J.-based medical media company.

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