Flow Control term loan breaks for trading; Therm-O-Disc, Premise Health updates surface

By Sara Rosenberg

New York, May 26 – Flow Control Group (FCG Acquisitions Inc.) saw its incremental first-lien term loan free to trade on Thursday and the debt was quoted above its original issue discount.

Meanwhile, in the primary market, Therm-O-Disc Inc. (Token Buyer Inc.) upsized its first- and second-lien term loans, and Premise Health finalized the spread on its incremental first-lien term loan at the high end of guidance.

Flow Control frees

Flow Control Group’s non-fungible $150 million incremental first-lien term loan (B2/B-) due April 1, 2028 began trading on Thursday afternoon, with levels quoted at 96¼ bid, 97¼ offered, a market source said.

Pricing on the incremental term loan is SOFR plus 475 bps with a 0.5% floor and it was sold at an original issue discount of 96. The debt has 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC and KKR Capital Markets are leading the deal that will be used to fund acquisitions under letters of intent.

Flow Control is a Charlotte, N.C.-based distributor and technical adviser for mission critical flow control and industrial automation products and related services.

Therm-O-Disc revised

In other news, Therm-O-Disc raised its seven-year senior secured covenant-lite first-lien term loan B to $360 million from $355 million and its privately placed second-lien term loan to $110 million from $100 million, according to a market source.

The first-lien term loan is priced at SOFR+CSA plus 600 bps with a 0.5% floor and an original issue discount of 92, and has 101 soft call protection for one year. CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

Earlier in syndication, pricing on the first-lien term loan was lifted from talk in the range of SOFR plus 500 bps to 525 bps, the CSA was changed from 0 bps, the discount was revised from talk in the range of 97.5 to 98, the call protection was extended from six months, and leverage-based and initial public offering-based pricing step-downs were eliminated.

The company’s now $535 million of credit facilities also include a $65 million revolver.

Therm-O-Disc buyout

Therm-O-Disc’s credit facilities will be used with cash on hand to fund the acquisition of the company by One Rock Capital Partners LLC from Emerson, to pay related fees and expenses, and, as a result of the upsizings, for general corporate purposes including funding the increased original issue discount.

Morgan Stanley Senior Funding Inc., RBC Capital Markets and Jefferies LLC are leading the deal.

Closing is expected in early June, subject to applicable regulatory approvals and customary conditions.

Therm-O-Disc is a Mansfield, Ohio-based designer and manufacturer of safety-critical sensors, thermal cutoffs and sealed connecting components primarily used in heating, ventilation and air conditioning, appliance, water heater, industrial, aerospace & defense, and transportation applications.

Premise firms spread

Premise Health set pricing on its non-fungible $191 million incremental first-lien term loan (B2/B) at SOFR plus 475 bps, the wide end of the SOFR plus 450 bps to 475 bps talk, a market source remarked.

As before, the term loan has a 0.5% floor, CSA of 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate, and an original issue discount of 98.

Allocations went out on Thursday morning, the source added.

Ares Management Credit and Golub are leading the deal that will be used to fund a distribution to sponsor OMERS and other shareholders.

Premise Health is a Brentwood, Tenn.-based provider of employer-sponsored health care.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.