Skillsoft incremental term loan, Tank Holdings unitranche facility free to trade

By Sara Rosenberg

New York, March 25 – Skillsoft Corp. widened the spread and original issue discount on its incremental first-lien term loan and sweetened the call protection before breaking for trading, and Tank Holding Corp.’s unitranche facility made its way into the secondary market as well.

And, in more happenings, Solenis surfaced with plans to bring a new incremental term loan B to market.

Skillsoft revised

Skillsoft lifted pricing on its fungible $160 million senior secured incremental first-lien term loan due July 16, 2028 to SOFR+CSA plus 525 basis points from SOFR+CSA plus 500 bps, adjusted the original issue discount to 98.25 from 98.625, and added 101 soft call protection for six months after the 102 hard call protection expires on July 16, 2022, a market source remarked.

The incremental term loan still has a 0.75% floor and CSA of 11.448 bps one-month rate, 26.161 bps three-month rate, 42.826 bps six-month rate and 71.513 bps 12-month rate.

Barclays and Citigroup Global Markets Inc. are leading the deal. Citi is the administrative agent.

With this transaction, pricing on the company’s existing term loan will be revised to SOFR plus 525 bps with a 0.75% floor from Libor plus 475 bps with a 0.75% Libor floor.

Skillsoft breaks

Recommitments for Skillsoft’s incremental term loan were due at 10:30 a.m. ET on Friday, and the debt freed to trade later in the day, with levels quoted at 98 3/8 bid, 98 7/8 offered, another source added.

The incremental term loan will be used with $60 million of cash from the balance sheet to fund the acquisition of Codecademy for about $525 million, split between about 40% cash and around 60% equity, and to pay related fees and expenses.

Pro forma net leverage at closing is expected to be about 4x.

Closing is targeted for April, subject to approval by Skillsoft shareholders, regulatory approvals and other customary conditions.

Skillsoft is a Dublin-based provider of cloud-based learning services. Codecademy is a New York-based online learning platform for technical skills.

Tank hits secondary

Tank Holding’s $1.685 billion six-year unrated unitranche facility broke for trading, with levels quoted at 98½ bid, 99½ offered, a market source said.

Pricing on the facility is SOFR+CSA plus 600 bps with a 0.75% floor and it was sold at an original issue discount of 98. CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate. The facility has hard call protection of 102 in year one and 101 in year two.

Antares Capital is leading the deal that will be used to refinance existing credit facilities and pay a dividend.

Tank Holding, backed by Olympus Partners, is a Lincoln, Neb.-based manufacturer of proprietary rotational molded polyethylene and steel storage tanks and containers.

Solenis readies loan

In other news, Solenis set a lender call for 10 a.m. ET on Monday to launch a $300 million incremental term loan B (B2), according to a market source.

Goldman Sachs and BofA Securities Inc. are leading the deal that will be used to pay down ABL borrowings and to add cash to balance sheet for general corporate purposes.

Platinum Equity is the sponsor.

Solenis is a Wilmington, Del.-based manufacturer and distributor of specialty chemicals and solutions for water-intensive industries and pools.

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