ChampionX sets term loan B changes, frees to trade; Premise Health joins calendar

By Sara Rosenberg

New York, May 13 – ChampionX Corp. raised the spread on its term loan B, widened the original issue discount and made some changes to documentation, and then the debt hit the secondary market on Friday.

In other news, Premise Health jumped onto the near-term primary calendar with plans for an incremental term loan.

ChampionX revised, breaks

ChampionX lifted pricing on its $625 million seven-year term loan B (Ba2/BBB-) to SOFR+CSA plus 325 basis points from SOFR+CSA plus 300 bps and moved the original issue discount to 97.75 from 99, a market source remarked.

In addition, the 50 bps MFN on the term loan was set for life from having a 12-month sunset and a carve-out for non-syndicated loans was removed, and J. Crew was added, the source continued.

The term loan still has a 0.5% floor, CSA of 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate, and 101 soft call protection for six months.

Recommitments were due at 1:45 p.m. ET on Friday and the term loan started trading in the afternoon, with levels quoted at 98 bid, 99 offered, another source added.

JPMorgan Chase Bank is leading the deal that will be used to refinance an existing term loan B due 2025 and an existing term loan B due 2027, and to redeem 6 3/8% senior notes due 2026.

ChampionX is a Woodlands, Tex.-based provider of chemistry solutions and highly engineered equipment and technologies that help companies drill for and produce oil and gas.

Premise readies loan

Premise Health emerged with plans to hold a lender call at 10:30 a.m. ET on Tuesday to launch a non-fungible $191 million incremental term loan, a market source said.

Ares and Golub are leading the deal that will be used to fund a distribution to shareholders, the source added.

Premise Health is a Brentwood, Tenn.-based direct healthcare provider.

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