Paradigm, Mariner Wealth break; First Brands updated; AZZ, Zayo release price talk

By Sara Rosenberg

New York, April 26 – Paradigm (Outcomes Group Holdings Inc.) increased the size of its incremental first-lien term loan and tightened spreads and original issue discounts on its first- and second-lien debt, and Mariner Wealth Advisors moved some funds between its funded and delayed-draw term loans, and set the issue price at the wide end of guidance, and then these deals freed to trade on Tuesday.

In more happenings, First Brands Group LLC upsized its incremental first-lien term loan, and AZZ Inc. and Zayo Group Holdings Inc. announced price talk with launch.

Also, Pixelle (Spectrum Group Buyer Inc.), MetroNet, Curium BidCo, Restoration Hardware Inc. and Aristocrat Technologies joined this week’s new issue calendar.

Paradigm reworked

Paradigm raised its non-fungible incremental first-lien term loan due October 2025 to $125 million from $110 million, cut pricing to SOFR+CSA plus 425 basis points from talk in the range of 450 bps to 475 bps and adjusted the original issue discount to 98.5 from 98, according to a market source.

Also, the company lowered pricing on its non-fungible $60 million incremental second-lien term loan due October 2026 to SOFR+CSA plus 750 bps from talk in the range of 800 bps to 825 bps and changed the discount to 98.5 from 98, the source said.

As before, both term loans have a 0.5% floor and CSA of 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate, the incremental first-lien term loan has 101 soft call protection for six months, and the incremental second-lien term loan has call protection of 102 in year one and 101 in year two.

Paradigm hits secondary

Recommitments for Paradigm’s term loans were due at 11 a.m. ET on Tuesday, and the debt began trading later in the day, with the incremental first-lien term loan quoted at 98¾ bid, 99¼ offered and the incremental second-lien term loan quoted at 99 bid, 99½ offered, another source added.

Credit Suisse Securities (USA) LLC and Truist are leading the deal that will be used to repay revolver borrowings and fund a distribution to shareholders. As part of this transaction, the revolver maturity is being extended to April 2025 from October 2023.

Paradigm is a Walnut Creek, Calif.-based provider of complex and catastrophic case management to the workers’ compensation industry.

Mariner revised, frees

Mariner Wealth Advisors upsized its fungible funded term loan to $150 million from $125 million, downsized its delayed-draw term loan to $25 million from $50 million, and finalized the original issue discount on the debt at 98.56, the wide end of the 98.56 to 99 talk, a market source said.

Pricing on the term loan debt is SOFR+CSA plus 325 bps with a 0.5% floor.

CSA is 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

During the session, the term loans broke for trading, with the strip of funded and delayed-draw debt quoted at 98 5/8 bid, 99 3/8 offered, a trader added.

BMO Capital Markets, RBC Capital Markets and UBS Investment Bank are leading the deal that will be used to fund near-term acquisitions.

Mariner Wealth Advisors is an investment adviser.

First Brands upsized

First Brands Group lifted its fungible incremental senior secured first-lien term loan (B1) due March 30, 2027 to $350 million from $300 million, and left pricing at SOFR+CSA plus 500 bps with a 1% floor and an original issue discount of 99.25, a market source remarked.

CSA is 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

Recommitments were due at 2 p.m. ET on Tuesday, the source added.

Jefferies LLC, BofA Securities Inc., Wells Fargo Securities LLC, Regions Bank, Capital One and Fifth Third are leading the deal that will be used to add cash to the balance sheet for general corporate purposes.

With this transaction, the existing loans will convert to SOFR from Libor with CSA of 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

First Brands is an automotive aftermarket platform offering comprehensive solutions for consumable maintenance and mission-critical repair parts.

AZZ guidance

AZZ held its lender call on Tuesday morning, launching a $1.3 billion seven-year covenant-lite term loan B at talk of SOFR+10 bps CSA plus 375 bps with a 25 bps step-down at 0.5x inside closing date first-lien net leverage, a 0.5% floor, an original issue discount of 98 and 101 soft call protection for six months, a market source said.

The company’s $1.7 billion senior secured deal (Ba3/B) also includes a $400 million five-year revolver.

Commitments are due at noon ET on May 5, the source added.

Citigroup Global Markets Inc., Wells Fargo Securities LLC, Barclays, CIBC and US Bank are leading the deal that will be used with $240 million of subordinated convertible notes to fund the acquisition of Sequa Corp.’s Precoat Metals business division, a St. Louis-based provider of metal coil coating solutions, for $1.28 billion and to refinance existing debt.

Closing is expected in May, subject to customary conditions and regulatory approvals.

Pro forma net leverage is 5x and net first-lien leverage is 4.2x.

AZZ is a Fort Worth-based provider of galvanizing and metal coating solutions, welding solutions, specialty electrical equipment and highly engineered services for maintaining and building critical infrastructure.

Zayo proposed terms

Zayo emerged in the morning with plans to hold a lender call at noon ET to launch a non-fungible $750 million incremental sustainability-linked first-lien term loan (B2) due March 2027 talked at SOFR plus 425 bps with a 0.5% floor, an original issue discount of 97.5 to 98 and 101 soft call protection for six months, according to a market source.

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

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used for general corporate purposes, including paying down revolver borrowings and adding cash to the balance sheet for growth initiatives, such as the acquisition of Education Networks of America, a Nashville-based provider of managed network connectivity and security services to E-Rate-funded school districts and other public sector customers.

Zayo is a Boulder, Colo.-based provider of bandwidth infrastructure.

Pixelle on deck

Pixelle set a lender call for 10 a.m. ET on Wednesday to launch $567 million of credit facilities, a market source said.

The facilities consist of a $60 million revolver, and a $507 million seven-year first-lien term loan B talked at SOFR plus 625 bps to 650 bps with a 0.5% floor, an original issue discount of 98 and 101 soft call protection for one year, the source continued.

Commitments are due at 5 p.m. ET on May 11.

Credit Suisse Securities (USA) LLC, Macquarie Capital (USA) Inc., Barclays, BMO Capital Markets and KKR Capital Markets are leading the deal that will be used to help fund the buyout of the company by H.I.G. Capital from Lindsay Goldberg.

Closing is expected this quarter, subject to customary conditions, including regulatory approvals.

Pixelle is a Spring Grove, Pa.-based manufacturer of fiber-based specialty products for label technology, food packaging, and other commercial and industrial end uses.

MetroNet joins calendar

MetroNet will hold a lender call at 10 a.m. ET on Wednesday to launch a fungible $65 million add-on first-lien term loan B, according to a market source.

Goldman Sachs Bank USA is the left lead on the deal.

Oak Hill and KKR Infrastructure are the sponsors.

MetroNet is an Evansville, Ind.-based provider of fiber optic high-speed broadband, video and voice services.

Curium readies loan

Curium scheduled a lender call for 11 a.m. ET on Wednesday to launch a fungible $335 million add-on first-lien term loan due December 2027 talked with an original issue discount of 98.75 to 99, a market source remarked.

Pricing on the incremental term loan is Libor plus 425 bps with a 0.75% Libor floor.

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

JPMorgan Chase Bank is leading the deal that will be used to refinance an existing second-lien term loan, for general corporate purposes and/or for working capital requirements.

Curium is a nuclear medicine company with headquarters in London and Paris.

Restoration coming soon

Restoration Hardware surfaced with plans to hold a lender call at 1 p.m. ET on Wednesday to launch a non-fungible $1 billion incremental term loan B (BB), according to a market source.

The term loan has 101 soft call protection for six months, the source said.

BofA Securities Inc. is the left lead on the deal that will be used for general corporate purposes.

Restoration Hardware is a Corte Madera, Calif.-based upscale home furnishings company.

Aristocrat sets call

Aristocrat Technologies will hold a lender call at 10:30 a.m. ET on Wednesday to launch $2.35 billion of credit facilities (//BBB-), a market source said.

The facilities consist of a $500 million revolver, a $1.35 billion term loan A and a $500 million term loan B, the source added.

BofA Securities Inc. is the left lead on the deal that will be used to refinance an existing term loan B and increase liquidity.

Aristocrat a North Ryde, Australia-based provider of gaming solutions.

STG oversubscribed

In other news, STG Logistics’ $875 million of senior secured credit facilities (B/BB-) are oversubscribed and allocations are expected to go out on Thursday afternoon, according to a market source.

The facilities consist of a $60 million revolver, an up to $90 million designated letter-of-credit revolver and a $725 million first-lien term loan.

Talk on the term loan is SOFR+CSA plus 575 bps to 600 bps with a 0.75% floor, an original issue discount of 98 and 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.

Antares Capital, Deutsche Bank Direct Lending, Stifel Nicolaus and Co. Inc., Citizens Bank and MUFG are leading the deal that will be used to fund the acquisition of XPO Logistics’ intermodal segment, an intermodal and drayage service provider, to refinance existing debt, and to pay fees and expenses related to the transaction.

STG, backed by Wind Point Partners and Oaktree Capital Management, is a Bensenville, Ill.-based provider of facilities-based containerized logistics services.

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