Restaurant Technologies outlines revisions, breaks for trading; Renaissance Learning frees

By Sara Rosenberg

New York, March 17 – Restaurant Technologies Inc. modified the original issue discount on its first-lien term loan B, removed a pricing step-down and made a number of changes to documentation before freeing up for trading on Thursday.

Also, Renaissance Learning Inc.’s incremental term loan made its way into the secondary market, with levels quoted above its original issue discount.

Restaurant revised

Restaurant Technologies changed original issue discount talk on its $810 million seven-year covenant-lite green first-lien term loan B to a range of 97 to 97.5 from a range of 98 to 98.5, and then finalized the discount at 97.5, according to a market source.

Additionally, the 25 bps step-down upon an initial public offering was removed from the term loan, the 2x fixed charge coverage ratio for debt test for junior lien and unsecured debt were removed and “no worse” prongs were limited to only be used for permitted acquisitions/investments, the inside maturity carve-out was reduced to 50% of EBITDA, asset sale step-downs were removed and quarterly lender calls were added, the source said.

Furthermore, MFN was reduced to 50 bps with the sunset extended to 18 months and the currency and acquisition carve-out exceptions eliminated, the pick your poison debt provision was removed, unlimited restricted payments and investments were moved to 5.5x leverage, J Crew and Serta protections were added, the general debt basket was removed from incremental and an EBITDA cap for pro forma adjustments at 30% of adjusted EBITDA was added.

As before, the term loan is priced at SOFR plus 425 basis points with 0 bps CSA and a 0.5% floor, and has 101 soft call protection for six months.

Restaurant hits secondary

Recommitments for Restaurant Technologies’ term loan B were due at 11 a.m. ET on Thursday and the debt began trading in the afternoon, with levels quoted at 97¾ bid, 98¾ offered, a trader added.

The company’s $910 million of senior secured credit facilities (B2/B) also include a $100 million revolver.

Morgan Stanley Senior Funding Inc., BMO Capital Markets, RBC 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 ECP from Goldman Sachs Asset Management and pay related fees and expenses.

In connection with this transaction, an additional investment is being made in the company by Enlightened Hospitality Investments.

Closing is expected in early April.

Restaurant Technologies is a provider of cooking-oil management and back-of-house hood and exhaust cleaning solutions.

Renaissance breaks

Renaissance Learning’s non-fungible $475 million five-year incremental first-lien term loan freed to trade as well, with levels quoted at 98 bid, 99 offered, a market source remarked.

Pricing on the term loan is SOFR plus 450 bps with a 0.5% floor and no CSA, and it was sold at an original issue discount of 97. The debt has 101 soft call protection for six months.

During syndication, pricing on the term loan was increased from talk in the range of SOFR plus 400 bps to 425 bps, the discount widened from 98.5 and the maturity was shortened from seven years.

Barclays is the left lead on the deal that will be used to fund a recently signed acquisition and pay related fees and expenses.

Blackstone and Francisco Partners are the sponsors.

Renaissance Learning is a Wisconsin Rapids, Wis.-based provider of software solutions for assessment, teaching and learning to K-12 schools and districts.

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