US LBM, PetVet, Vertiv, Whatabrands bids rise; Mitratech firms incremental loan terms

By Sara Rosenberg

New York, March 22 – The secondary market in general was unchanged on Wednesday; however, some names that trade below par – such as US LBM, PetVet Care Centers LLC, Vertiv Holdings Co. and Whatabrands LLC (Whataburger) – outperformed the market.

Meanwhile, in the primary market, Mitratech finalized the original issue discount on its incremental covenant-lite first-lien term loan at the wide end of guidance.

Below par names outperform

The general feel in the secondary market on Wednesday was that levels were essentially flat, but some “discounted” names that trade below par did rise as a result of CLO interest, a market source remarked.

For example, US LBM, a Buffalo Grove, Ill.-based distributor of specialty building materials, saw its first-lien term loan quoted at 92½ bid by the end of the day, up from 90¼ bid, 91¼ offered earlier in the session and 89¾ bid, 90¾ offered on Tuesday, the source continued.

PetVet, a Westport, Conn.-based operator of general practice and specialty veterinary hospitals for companion animals, saw its term loan quoted at 95¼ bid, up from 94 bid, 95 offered on Tuesday.

Vertiv, a Columbus, Ohio-based provider of critical digital infrastructure and continuity solutions, saw its term loan quoted at 97 5/8 bid, 98 1/8 offered, up on the bid side from 97½ bid, but down on the offer side from 98¼ offered.

And, Whatabrands, a San Antonio-based restaurant company, saw its first-lien term loan B quoted at 98 bid, 98¾ offered, up from 97½ bid, 98 ¼ offered, the source added.

Mitratech updated

Mitratech set the original issue discount on its non-fungible $225 million incremental covenant-lite first-lien term loan due May 18, 2028 (B2/B-) at 95, the wide end of the 95 to 96 talk, according to a market source.

As before, the incremental term loan is priced at SOFR+CSA plus 425 basis points with a 0.75% floor and has 101 soft call protection for six months. CSA is ARCC standard of 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

Allocations went out on Wednesday, the source added.

In addition to the term loan, the company is getting a $38.5 million incremental revolver, which was upsized on Tuesday from $30 million. Pro forma for the transaction, the company’s revolver will total $78.5 million.

Golub Capital and UBS Investment Bank are leading the deal.

The term loan will be used to fund two acquisitions.

Ontario Teachers’ Pension Plan is the majority owner of Mitratech, and Hg Capital is a minority owner.

Mitratech is an Austin, Tex.-based provider of legal matter management, compliance and operational risk software solutions for corporate in-house legal departments and law firms.

Fund flows

In other news, actively managed loan fund flows on Tuesday were negative $225 million and loan ETFs were positive $60 million, market sources said.

Actively managed high-yield fund flows on Tuesday were negative $155 million and high-yield ETFs were negative $63 million, sources added.

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