Culligan, Everise, Hertz, Smyrna Ready Mix, Howden Group, ArchKey release pricing guidance

By Sara Rosenberg

New York, Nov. 7 – In the primary market on Tuesday, Culligan International Co. (AI Aqua Merger Sub Inc.), Everise (BCP V Everise Acquisition LLC), Hertz Corp., Smyrna Ready Mix Concrete LLC and Howden Group Holdings Ltd. (Hyperion Refinance Sarl) all disclosed price talk on their term loan transactions in connection with lender calls.

Also, ArchKey Holdings Inc. released original issue discount guidance on its delayed-draw term loan, and IVC Evidensia and Fairbanks Morse Defense (Arcline FM Holding LLC) joined this week’s new issue calendar.

Culligan talk

Culligan held its lender call on Tuesday afternoon and announced talk on its $950 million senior secured incremental covenant-lite first-lien term loan B (B3/B) due July 30, 2028 at SOFR plus 450 basis points with 25 bps step-downs at 4.75x and 4.25x net first-lien leverage, a 0.5% floor, an original issue discount of 97 and 101 soft call protection for six months, according to a market source.

The incremental term loan has ticking fees of half the margin from days 61 to 120 and the full margin thereafter, the source said.

Commitments are due at noon ET on Nov. 14, the source added.

Morgan Stanley Senior Funding Inc., JPMorgan Chase Bank, BofA Securities Inc. and Goldman Sachs Bank USA are leading the deal that will be used to fund the acquisition of Primo Water Corp.’s international businesses (Primo Europe) in an all-cash transaction valued at up to $575 million, to fully pay down revolver borrowings and to add cash to the balance sheet.

Culligan is a Rosemont, Ill.-based provider of water treatment products and services.

Everise guidance

Everise disclosed talk of SOFR plus 550 bps to 575 bps with a 0% floor, an original issue discount of 97 and 101 soft call protection for six months on its $425 million seven-year covenant-lite term loan B (B3/B-) in connection with its morning lender call, a market source remarked.

Commitments are due at noon ET on Nov. 17, the source added.

BMO Capital Markets, Standard Chartered, ING, Bank of Nova Scotia and Societe Generale are leading the deal that will be used for the acquisition of a roughly 47% equity stake in the company by Warburg Pincus from Brookfield Asset Management and other shareholders at a total enterprise value of about $1.03 billion. As part of the transaction, Everstone Group will exit its investment in the company.

Closing is expected by the end of the year.

Everise is a Plantation, Fla.-based health care services outsourcing company.

Hertz proposed terms

Hertz launched on its morning call its non-fungible $400 million incremental senior secured term loan B (Ba3//BB) due June 30, 2028 at talk of SOFR plus 375 bps to 400 bps with a 0% floor and an original issue discount of 97.5 to 98, according to a market source.

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

Commitments are due at noon ET on Nov. 15, the source added.

Barclays, Goldman Sachs Bank USA and others to be announced are leading the deal that will be used to repay outstanding borrowings under the company’s existing senior secured revolver due 2026, to pay transaction related fees and expenses, and for general corporate purposes.

Hertz is an Estero, Fla.-based car rental company.

Smyrna launches

Smyrna Ready Mix released talk of SOFR plus 375 bps to 400 bps with a 0% floor, an original issue discount of 99.75 and 101 soft call protection for six months on its $538 million term loan B (Ba3) due 2029 that launched with a call in the morning, a market source said.

Commitments are due at 5 p.m. ET on Monday.

JPMorgan Chase Bank is leading the deal, which will be used with $1.1 billion of senior secured notes to fund acquisitions and to pay down term loan and asset-based lending borrowings.

Smyrna Ready Mix is a Murfreesboro, Tenn.-based manufacturer and retailer of ready-mixed concrete.

Howden holds call

Howden Group held a lender call at 11 a.m. ET, launching a fungible $555 million add-on term loan (B2) due 2030 with original issue discount talk of 98 to 98.5, according to a market source.

Pricing on the add-on term loan is SOFR plus 400 bps with a 0.5% floor.

Commitments are due at 5 p.m. ET on Monday, the source added.

JPMorgan Chase Bank, Morgan Stanley Senior Funding Inc., Barclays, RBC Capital Markets, NatWest, HSBC Securities (USA) Inc., Lloyds, Citigroup Global Markets Inc. and ING are leading the deal that will be used to partially repay a private loan and to fund the company’s locked account.

Howden Group is a London-based insurance intermediary group.

ArchKey OID talk

ArchKey Holdings came out with original issue discount talk of 99.125 plus a duration fee of 1.625% to 2.125% for an all-in original issue discount of 97 to 97.5 on its $100 million delayed-draw term loan (B2/B) due June 29, 2028, according to a market source.

The term loan launched with a lender call on Monday but the original issue discount talk was not announced until Tuesday morning.

Like the existing term loan, the delayed-draw term loan is priced at SOFR+CSA plus 525 bps with a 0.75% floor. CSA is 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

Commitments are due at 2 p.m. ET on Thursday.

Deutsche Bank Securities Inc. is the left lead on the deal that will be used to fund a distribution to equity holders.

ArchKey is a St. Louis-based electrical and technologies service provider.

IVC Evidensia on deck

IVC Evidensia scheduled a lender call for 10 a.m. ET on Wednesday to launch a $1.25 billion five-year senior secured term loan B, a €2.13 billion five-year senior secured term loan B and a £900 million five-year senior secured term loan B, a market source remarked. Management meetings will take place from Wednesday to Friday.

Talk on the U.S. term loan is SOFR plus 525 bps to 550 bps with a 0.5% floor and an original issue discount of 98, talk on the euro term loan is Euribor plus 500 bps to 525 bps with a 0% floor and a discount of 98, and talk on the pound sterling term loan is Sonia plus 575 bps with a 0% floor and a discount of 97 to 97.5, the source continued.

All of the term loans have 101 soft call protection for six months.

Commitments for the U.S. term loan are due at 5 p.m. ET on Nov. 16, and consent request response forms for the existing euro and pound sterling term loans and new money commitments for the euro and pound sterling term loans are due at noon ET on Nov. 16, the source added.

IVC Evidensia leads

Barclays is the sole physical bookrunner on IVC Evidensia’s U.S. term loan, and Goldman Sachs, HSBC, Natwest Markets, SMBC, BofA Securities Inc., CIBC, Citigroup Global Markets Inc., Credit Agricole, RBC Capital Markets and Santander are joint bookrunners. Barclays is the agent.

Barclays, Goldman Sachs, HSBC, Natwest Markets and SMBC are joint physical bookrunners on the euro term loan, and BofA Securities, Credit Agricole, CIBC, Citigroup, RBC, Santander and Mizuho are joint bookrunners. Natwest is the agent.

Barclays, Goldman Sachs and SMBC are joint physical bookrunners on the pound sterling term loan, and HSBC, Natwest Markets, BofA Securities, Santander, CIBC, Citigroup, Credit Agricole, Mizuho and RBC are joint bookrunners. Natwest is the agent.

The term loans will be used to fully repay the company’s existing VS debt facilities and associated breakage costs, repay and extend the maturity of existing pound sterling and euro term loans from February 2026, repay revolver borrowings and pay the transaction fees and expenses.

EQT, Silver Lake, Berkshire Partners and Nestle are the sponsors.

IVC is a veterinary services provider.

Fairbanks joins calendar

Fairbanks Morse Defense set a lender call for 3 p.m. ET on Wednesday to launch a non-fungible $185 million incremental first-lien term loan due June 23, 2028, according to a market source.

Jefferies LLC is leading the deal that will be used to refinance the company’s existing $86.5 million acquisition term loan, pay down ABL revolver borrowings and add cash to the balance sheet.

Fairbanks Morse is a Beloit, Wis.-based provider of mission-critical propulsion and power generation systems, material handling devices, valves, actuators, motors and other hi-rel electrical components for the US Navy and US Coast Guard.

Fund flows

In other news, actively managed loan fund flows on Monday were positive $43 million and loan ETFs were positive $120 million, sources said.

Leveraged loan funds are seeing their largest inflows since April 2022.

Inflows for loan funds week-to-date total an estimated $568 million, compared to inflows in the prior week of $126 million, sources added.

Loan indices rise

S&P Global’s iBoxx loan indices were stronger on Monday, with the Leveraged Loan index (MiLLi) closing up 0.17% and the Liquid Leveraged Loan index (LLLi) closing up 0.19%.

Month to date, the MiLLi is up 0.43% and year to date it is up 10.26%, and the LLLi is up 0.52% month to date and up 9.39% year to date.

Average secondary market bids in the United States on Monday were 93.03, up 0.04% from the previous day and up 1.26% year to date.

According to the S&P Global data, some of the top advancers on Monday were Level 3’s November 2019 non-TSA covenant-lite term loan B at 92.79, up from 89, Avison Young’s January 2019 covenant-lite term loan at 32.83, up from 31.5, and Lucky Bucks’ July 2021 covenant-lite term loan at 27.5, up from 26.63.

Some top decliners on Monday were Trinseo’s May 2021 covenant-lite term loan B2 at 73.5, down from 76.13, Exactech’s February 2018 covenant-lite term loan B at 58.75, down from 60, and Heubach/Luxembourg Investment’s January 2022 covenant-lite term loan B at 66.83, down from 68.

© 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.