BlueTriton, K-MAC Enterprises, Blackhawk Network term loans break for trading

By Sara Rosenberg

New York, Feb. 27 – BlueTriton Brands (Triton Water Holdings Inc.) increased the size of its incremental term loan B and finalized the spread at the low end of guidance, and then the debt freed to trade on Tuesday.

Also, before breaking for trading, K-MAC Enterprises Inc. (MIC Glen LLC) finalized the original issue discount on its incremental first-lien term loan B-2 at the tight end of revised talk, and Blackhawk Network Holdings Inc.’s term loan B made its way into the secondary market as well.

In more happenings, Quickbase joined the near-term primary calendar with plans for an incremental term loan and an extension of its existing first-lien term loan.

BlueTriton upsized, frees

BlueTriton Brands raised its non-fungible incremental senior secured covenant-lite term loan B due March 31, 2028 to $400 million from $300 million and firmed pricing at SOFR plus 400 basis points, the low end of the SOFR plus 400 bps to 425 bps talk, a market source said.

As before, the term loan has a 25 bps pricing step-down upon an initial public offering, a 0.5% floor, an original issue discount of 98 and 101 soft call protection for six months.

Late Tuesday, the incremental term loan made its way into the secondary market, with levels quoted at 98¼ bid, 98¾ offered, a trader added.

Morgan Stanley Senior Funding Inc., Deutsche Bank Securities Inc., RBC Capital Markets, JPMorgan Chase Bank, Mizuho, Truist Securities and SMBC are leading the deal that will be used to fund a distribution to shareholders and to pay fees and expenses.

Closing is expected on Friday.

BlueTriton is a Stamford, Conn.-based bottled water supplier.

K-MAC updated, breaks

K-MAC Enterprises set the original issue discount on its non-fungible $115 million incremental covenant-lite first-lien term loan B-2 (B3/B-) due July 2028 at 99.5, the tight end of revised talk of 99.25 to 99.5 and tighter than initial talk of 99, according to a market source.

Pricing on the term loan remained at SOFR plus 425 bps with a 0.5% floor, and the debt still has 101 soft call protection for six months.

Previously in syndication, the spread on the term loan firmed at the high end of the SOFR plus 400 bps to 425 bps talk.

In the afternoon, the incremental term loan B-2 freed to trade, with levels quoted at 99¾ bid, par ¾ offered, a trader added.

BMO Capital Markets, Goldman Sachs Bank USA, KKR Capital Markets and RBC Capital Markets are leading the deal that will be used to repay an existing $105 million second-lien term loan and revolver borrowings.

K-MAC, owned by Mubadala Capital, is a Fayetteville, Ark.-based fast food restaurant operator.

Blackhawk hits secondary

Blackhawk Network’s $1.9 billion five-year first-lien term loan B broke for trading too, with levels quoted at 98 3/8 bid, 99 1/8 offered, a trader remarked.

Pricing on the term loan is SOFR plus 500 bps with a 1% floor and it was sold at an original issue discount of 98. The debt has 101 soft call protection for six months.

During syndication, the term loan was upsized from $1.7 billion, pricing was increased from talk in the range of SOFR plus 450 bps to 475 bps, the floor was revised from 0%, and the discount was modified to a range of 97 to 98 from just 98 at launch before finalizing in line with the original talk.

BofA Securities Inc. is the left lead on the deal that will be used with cash from the balance sheet to refinance the company’s existing first-lien term loan B, to repay a second-lien term loan in full, which was changed from in part with the recent upsizing, to fund the acquisition of Tango Card, and to pay fees and expenses.

Blackhawk Network is a Pleasanton, Calif.-based financial technology company and provider of payment solutions, including gift cards, incentive cards and other digital payment solutions. Tango Card is a digital rewards, e-gifting and payments platform.

Quickbase on deck

Quickbase set a lender call for 2 p.m. ET on March 5 to launch a $415 million first-lien term loan, according to a market source.

Of the total term loan amount $152 million is a fungible incremental tranche that will be used to refinance an existing second-lien term loan and the remainder is to extend the company’s existing $263 million first-lien term loan.

Golub Capital is the left lead on the deal.

Vista Equity Partners is the majority owner of the company and WCAS s a minority owner.

Quickbase is a Boston-based provider of Platform-as-a-Service application development tools that allow non-technical users to develop and deploy their own highly configurable apps that streamline a variety of day-to-day functions.

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