Polyconcept, R1 RCM term loans free to trade; Lightstone reveals extended loan amounts

By Sara Rosenberg

New York, May 12 – Polyconcept firmed the spread on its term loan B (B3/B) at the high end of guidance and raised the floor and then broke for trading on Thursday, and R1 RCM Inc.’s term loan B emerged in the secondary market as well.

In more happenings, Lightstone Holdco LLC finalized sizes for its extended term loan B and extended term loan C.

Polyconcept updated, breaks

Polyconcept set pricing on its $800 million seven-year covenant-lite term loan B (B3/B) at SOFR plus 550 basis points, the high end of the SOFR plus 525 bps to 550 bps talk, and revised the floor to 0.75% from 0.5%, a market source remarked.

As before, the term loan has an original issue discount of 98 and 101 soft call protection for six months.

On Thursday, the term loan freed to trade, with levels quoted at 98 bid, 98¾ offered, another source added.

The company is also getting a $125 million five-year ABL revolver.

KKR Capital Markets, Barclays, Jefferies LLC, RBC Capital Markets, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., PNC and Stifel are leading the deal that will be used to refinance existing loans.

Polyconcept is a New Kensington, Pa.-based supplier of promotional products.

R1 RCM hits secondary

R1 RCM’s $500 million seven-year senior secured term loan B (Ba2/B+/BBB-) began trading during the session, with levels quoted at 99 bid, 99½ offered, according to a market source.

Pricing on the term loan B is SOFR plus 300 basis points with a 0.5% floor and it was sold at an original issue discount of 99. The debt has 101 soft call protection for six months and no CSA.

During syndication, the term loan B was downsized from $540 million as the company upsized its term loan A by $40 million, the 10 bps CSA was removed and the discount firmed at the tight end of the 98.5 to 99 talk.

Barclays, JPMorgan Chase Bank, BofA Securities Inc., Capital One, Wells Fargo Securities, US Bank, KeyBanc Capital Markets, PNC, Morgan Stanley Senior Funding Inc., HSBC Securities (USA) Inc. and Fifth Third are leading the deal. BofA is the administrative agent.

Proceeds will be used to help fund the acquisition of Cloudmed, an Atlanta-based provider of revenue intelligence solutions for health care providers, from New Mountain Capital.

Closing is expected early-to-mid June, subject to customary conditions.

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

Lightstone sets sizes

In other news, Lightstone disclosed that it is extending 1,461,050,967 of its roughly $1.641 billion and $82,407,225 of its roughly $93 million term loan C to Jan. 30, 2027, with 89.61% of lenders consenting to the extension, a market source said.

Pricing on the extended term loans is SOFR plus 575 bps with a 1% floor and a par issue price. Extending accounts will receive a 1% amendment fee.

The amended and extended term loans have hard call protection of 103 in year one, 102 in year two and 101 in year three.

Allocations went out on Thursday, the source added.

Jefferies LLC is leading the amended and extended senior secured term loans (B2/B-).

Lightstone, a 50/50 joint venture owned by affiliates of Blackstone Group LP and ArcLight Capital Partners LLC, consists of a 5.3 GW portfolio of four generation facilities located in the PJM Interconnection market.

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