Corporation Service hits secondary; Sabre tweaks deal; Pike accelerates deadline

By Sara Rosenberg

New York, Aug. 9 – Corporation Service Co. (CSC) finalized the spread on its term loan B at the low end of revised guidance and then the debt freed to trade during Tuesday’s market hours.

Meanwhile, in other news, Sabre GLBL Inc. increased the size of its term loan B, firmed pricing at the high end of talk and finalized the original issue discount at the tight side of guidance, and Pike Corp. moved up the commitment deadline for its incremental term loan B.

Furthermore, Chefs’ Warehouse Inc. (Dairyland USA Corp.) disclosed price talk on its first-lien term loan in connection with its lender call.

CSC updated

Corporation Service set pricing on its $1.25 billion seven-year term loan B (B1/BB-/BBB-) at SOFR+CSA plus 325 basis points, the low end of revised talk of 325 bps to 350 bps and down from initial talk in the range of 375 bps to 400 bps, a market source remarked.

As before, the term loan B has a 0.5% floor, CSA of 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate, an original issue discount of 97, 101 soft call protection for one year and a ticking fee of the full margin after 30 days.

Previously in syndication, the discount on the term loan B was changed from talk in the range of 95 to 96.

BofA Securities Inc., Jefferies LLC and Wells Fargo Securities LLC are leading the deal.

CSC breaks

Corporation Service’s term loan B broke for trading on Tuesday, with levels quoted at 98 bid, 98¾ offered before trading up to 98½ bid, 99¼ offered, a trader added.

The term loan B will be used with a roughly $1.209 billion term loan A priced at SOFR plus 250 bps, a €775 million term loan A and cash on hand to fund the acquisition of Intertrust NV for €20 in cash per share, or about €1.8 billion, and to refinance existing debt.

Corporation Service is a Wilmington, Del.-based provider of corporate, legal, tax and digital brand services. Intertrust is an Amsterdam-based provider of tech-enabled fund and corporate solutions.

Sabre revised

Sabre GLBL lifted its term loan B due June 30, 2028 to a range of $650 million to $700 million from $400 million, finalized the spread at SOFR plus 500 bps, the high end of the SOFR plus 475 bps to 500 bps talk, and set the original issue discount at 95, the tight end of the 94 to 95 talk, according to a market source.

The term loan still has a 0.5% floor, CSA of 10 bps and 101 hard call protection for one year.

Recommitments were due at 5 p.m. ET on Tuesday, the source added.

BofA Securities Inc. is the left lead on the deal that will be used to prepay a portion of the company’s term loan B due 2024 and pay related fees and expenses.

Sabre is a Southlake, Tex.-based software and technology company for the travel industry.

Pike modifies timing

Pike accelerated the commitment deadline for its non-fungible $300 million incremental senior secured covenant-lite term loan B due Jan. 21, 2028 (Ba3/B) to noon ET on Wednesday from noon ET on Thursday, a market source said.

Allocations are expected shortly after the revised deadline, the source added.

Talk on the incremental term loan is SOFR plus 350 bps to 375 bps with a 0% floor and an original issue discount of 95 to 96. CSA is 0 bps and the debt has 101 soft call protection for six months.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to repay the company’s outstanding 364-day second-lien term loan and to fund a portion of a contemplated acquisition.

Pike is a Mount Airy, N.C.-based specialty construction and engineering firm.

Chefs’ proposed terms

Chefs’ Warehouse held its lender call at 10 a.m. ET on Tuesday and, shortly before the call began, price talk on its $250 million seven-year first-lien term loan was announced at SOFR+CSA plus 500 bps with a 0.5% floor and an original issue discount of 95, according to a market source.

CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

The term loan has 101 soft call protection for six months.

Commitments are due at noon ET on Aug. 16, the source added.

Jefferies LLC, BMO Capital Markets, BofA Securities Inc. and JPMorgan Chase Bank are leading the deal that will be used to refinance an existing first-lien term loan and fund cash to the balance sheet.

Chefs’ Warehouse is a Ridgefield, Conn.-based distributor of specialty food products.

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