US Foods, Vertex Aerospace, Harsco, KIK Custom Products, Installed Building, Avaya free up

By Sara Rosenberg

New York, June 14 – US Foods Inc. finalized the spread on its term loan B at the low side of talk and removed a pricing step-down, Vertex Aerospace Services Corp. set pricing on its term loan B at the high end of guidance, added a step-down and tightened the original issue discount, and Harsco Corp. firmed pricing on its term loan at the low end of talk, and then these deals broke for trading on Thursday.

Also, KIK Custom Products Inc. (Kronos Acquisition Holdings Inc.) increased the size of its add-on term loan and set the issue price at the wide side of talk before freeing up, and deals from Installed Building Products Inc. and Avaya Inc. surfaced in the secondary market as well.

In more happenings, Ardent Health Partners LLC lifted the size of its term loan and set the spread and original issue discount at the wide end of guidance, Alvogen Pharma US Inc. raised pricing on its term loan B, FirstLight Fiber (Flight Bidco Inc.) upsized its first-lien term loan B, and MHS Holdings Inc. adjusted the original issue discount on its add-on term loan B.

Furthermore, Edelman Financial Center LLC, HireRight (Genuine Financial Holdings LLC), Value-Based Care Solutions, Ufinet International (Zacapa LLC), AOC/Aliancys (Composite Resins Holding BV), Valtris Specialty Chemicals (Polymer Additives Inc.), Dhanani Group Inc., MeridianLink Inc./CRIF Lending Solutions, Edward Don & Co. LLC, Vestcom International and Cirque du Soleil Canada Inc. disclosed price talk with launch.

Additionally, BMC Software, GPS Hospitality and Big Ass Solutions (Big Ass Fans LLC) hopped onto the near-term primary calendar.

US Foods tweaked, trades

US Foods set pricing on its $2,162,000,000 senior secured covenant-light term loan B (Ba3/BBB-) due June 27, 2023 at Libor plus 200 basis points, the low end of the Libor plus 200 bps to 225 bps talk, and eliminated a 25 bps step-down at 1.75 times consolidated secured leverage, according to a market source.

As before, the term loan has a 0% Libor floor, a par issue price and 101 soft call protection for six months.

Commitments were due at noon ET on Thursday and by late afternoon the loan broke for trading with levels seen at par 1/8 bid, par ½ offered, another source added.

Citigroup Global Markets Inc., KKR Capital Markets, Deutsche Bank Securities Inc., BMO Capital Markets, Goldman Sachs Bank USA, ING, J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc., Natixis, Rabobank, Wells Fargo Securities LLC and Bank of America Merrill Lynch are leading the deal that will be used to reprice an existing term loan B down from Libor plus 250 bps with a 0% Libor floor.

Closing is expected on June 22.

US Foods is a Chicago-based broadline foodservice distributor.

Vertex revised, frees up

Vertex Aerospace Services firmed pricing on its $330 million seven-year covenant-light first-lien term loan B (B2/B) at Libor plus 475 bps, the high end of the Libor plus 450 bps to 475 bps talk, added a 25 bps step-down at 4 times net secured leverage and moved the original issue discount to 99.5 from 99, a market source said.

Also, the MFN was changed to 50 bps for life and the asset-sale step-downs were removed.

The term loan still has a 0% Libor floor and 101 soft call protection for six months.

Recommitments were due at 11 a.m. ET on Thursday and in the afternoon, the loan emerged in the secondary market with levels quoted at par bid, par ¾ offered, a trader added.

Morgan Stanley Senior Funding Inc., RBC Capital Markets and Deutsche Bank Securities Inc. are leading the deal that will be used to help fund the buyout of the company by American Industrial Partners from L3 Technologies for $540 million in cash and pay related fees and expenses.

Closing is expected late June.

Vertex Aerospace is a provider of aviation logistics services, supply chain management, and maintenance, repair and overhaul services.

Harsco firms, starts trading

Harsco set the spread on its $545 million senior secured term loan B due December 2024 at Libor plus 225 bps, the low end of the Libor plus 225 bps to 250 bps talk, and left the 1% Libor floor, par issue price and 101 soft call protection for six months unchanged, a market source remarked.

After terms finalized, the loan broke for trading with levels quoted at par 1/8 bid, par 5/8 offered, another source added.

Goldman Sachs Bank USA, Citigroup Global Markets Inc., HSBC Securities (USA) Inc., Bank of America Merrill Lynch, RBC Capital Markets, U.S. Bank and KeyBanc Capital Markets are leading the deal that will be used to reprice an existing term loan down from Libor plus 300 bps with a 1% Libor floor.

Closing is expected on Monday.

Harsco is a Camp Hill, Pa.-based diversified industrial company providing a range of onsite services and engineered products to the global steel, energy and railway sectors.

KIK modified, breaks

KIK Custom Products raised its fungible add-on term loan B due May 15, 2023 to $115 million from $100 million and set the original issue discount at 99.5, the wide end of the 99.5 to 99.75 talk, according to a market source.

The add-on loan is priced at Libor plus 400 bps with a 1% Libor floor, in line with the existing term loan B.

Recommitments were due at 3 p.m. ET on Thursday and then the debt freed up with levels quoted at 99¾ bid, par offered, a trader added.

Nomura, Macquarie Capital (USA) Inc. and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to repay borrowings under the company’s asset-based lending credit facility.

Closing is expected during the week of June 18.

KIK is a Concord, Ont.-based manufacturer of consumer products.

Installed Building tops par

Installed Building Products’ fungible $100 million incremental term loan B (B1/BB) due April 15, 2025 and extended $298 million term loan B (B1/BB) due April 15, 2025 began trading too, with levels quoted at par 1/8 bid, par 3/8 offered, a trader remarked.

Pricing on the term loan debt is Libor plus 250 bps with a 1% Libor floor. The new money was sold at an original issue discount of 99.875 and existing money got an amendment fee of 12.5 bps.

On Wednesday, the spread on the term loan debt was increased from Libor plus 225 bps.

RBC Capital Markets, Jefferies LLC and SunTrust Robinson Humphrey Inc. are leading the deal.

Proceeds from the incremental loan will be used for future acquisitions, and the existing term loan is being extended from April 2024. Plans to reprice the existing loan down from the current rate of Libor plus 250 bps with a 1% Libor floor were eliminated with the pricing flex.

Pro forma total leverage is 3 times, and net leverage is 2.1 times.

Installed Building Products is a Columbus, Ohio-based installer of insulation products.

Avaya hits secondary

Avaya’s $2,918,000,000 first-lien term loan (B) due 2024 broke as well, with levels seen at par 3/8 bid, par 5/8 offered, a trader said.

Pricing on the term loan is Libor plus 425 bps with a 0% Libor floor and it was sold at an original issue discount of 99.75. The debt has 101 soft call protection for six months.

J.P. Morgan Securities LLC is leading the deal that will be used to reprice an existing term loan down from Libor plus 475 bps with a 1% Libor floor.

Closing is expected on Monday.

Avaya is a Santa Clara, Calif.-based business communications company.

Ardent reworked

Back in the primary market, Ardent Health Partners upsized its seven-year first-lien term loan to $825 million from $765 million, firmed pricing at Libor plus 450 bps, the high end of the Libor plus 425 bps to 450 bps talk, and set the original issue discount at 99, the wide end of the 99 to 99.5 talk, according to a market source.

The term loan still has a 1% Libor floor and 101 soft call protection for six months.

The company’s now $1.05 billion of credit facilities also include a $225 million five-year asset-based lending facility.

Commitments were due at 5 p.m. ET on Thursday, the source said.

Barclays, Jefferies LLC and Bank of America Merrill Lynch are leading the deal that will be used with $475 million in bonds, downsized from $535 million with the term loan upsizing, to refinance existing debt.

Equity Group Investments is the sponsor.

Ardent Health is a Nashville, Tenn.-based owner and operator of hospitals.

Alvogen flexes

Alvogen Pharma lifted pricing on its $1,013,674,154 senior secured covenant-light term loan B due April 2, 2022 to Libor plus 475 bps from Libor plus 450 bps, and left the 1% Libor floor, par issue price and 101 soft call protection for six months intact, a market source remarked.

Commitments/consents are due at 10 a.m. ET on Friday, the source added.

Morgan Stanley Senior Funding Inc. and Jefferies LLC are leading the deal that will be used to reprice an existing term loan B due 2022 down from Libor plus 500 bps with a 1% Libor floor.

Alvogen is a developer and manufacturer of generic drugs, and provider of contract manufacturing, development and research services to large branded pharma companies.

FirstLight upsizes

FirstLight Fiber increased its seven-year first-lien term loan B to $415 million from $375 million, and left talk at Libor plus 350 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, a market source said.

The company’s now $560 million of credit facilities also include a $55 million five-year revolver, and a $90 million eight-year second-lien term loan talked at Libor plus 750 bps with a 0% Libor floor, a discount of 99 and call protection of 102 in year one and 101 in year two.

Recommitments are due at noon ET on Monday, the source added.

UBS Investment Bank, TD Securities (USA) LLC, Jefferies LLC, Credit Agricole, Natixis and RBC Capital Markets are leading the deal that will be used to help fund the buyout of the company by Antin Infrastructure Partners from Oak Hill Capital Partners IV. The funds from the upsizing will be used with $21 million of incremental equity and $4 million of cash from the balance sheet to pay for the acquisition‎ of Maine Fiber Co.

Closing is expected in the second half of this year, subject to customary conditions, including regulatory approvals.

FirstLight is an Albany, N.Y.-based fiber-optic bandwidth infrastructure services provider.

MHS changes discount

MHS Holdings modified the original issue discount on its fungible $120 million add-on term loan B due May 1, 2024 to 99.75 from 99.5, according to a market source.

The add-on term loan is priced at Libor plus 500 bps with a 1% Libor floor, in line with the existing term loan, and has 101 soft call protection through Nov. 15.

Commitments were due at 5 p.m. ET on Thursday and allocations are targeted for Friday morning, the source said.

RBC Capital Markets is the left lead on the deal that will be used for an acquisition.

Thomas H. Lee Partners LP is the sponsor.

MHS is a Louisville, Ky.-based provider of e-commerce infrastructure.

Edelman comes to market

Also in the primary market, Edelman Financial Center had its lender presentation on Thursday and disclosed price talk on its $1.41 billion seven-year covenant-light first-lien term loan B (B1/B) and $495 million eight-year covenant-light second-lien term loan (Caa1/CCC+), a market source remarked.

Talk on the first-lien term loan is Libor plus 325 bps with a 25 bps step-down at 0.5 times inside closing first-lien secured leverage, a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, and talk on the second-lien term loan is Libor plus 700 bps with a 0% Libor floor, a discount of 99 and hard call protection of 102 in year one and 101 in year two, the source continued.

The company’s $2,055,000,000 of senior secured credit facilities also include a $150 million five-year revolver (B1/B).

Commitments are due on June 26, the source added.

Edelman lead banks

Morgan Stanley Senior Funding Inc., J.P. Morgan Securities LLC, Barclays, Deutsche Bank Securities Inc. and UBS Investment Bank are leading Edelman Financial’s credit facilities, with Morgan Stanley left on the first-lien and J.P. Morgan left on the second-lien.

Proceeds will be used with up to $1.45 billion in equity to fund the acquisition of Financial Engines Inc. for $45 per share in cash. The transaction has a total value of about $3.02 billion.

Closing is expected in the third quarter, subject to approval by Financial Engines stockholders, regulatory approval and other customary conditions.

Edelman Financial, which is majority owned by Hellman & Friedman, is an independent financial planning firm. Financial Engines is a Sunnyvale, Calif.-based independent investment adviser.

HireRight proposed terms

HireRight disclosed price talk on its $835 million seven-year covenant-light first-lien term loan (B2/B) and $215 million eight-year covenant-light second-lien term loan (Caa2/CCC+) with its afternoon bank meeting, a market source said.

The first-lien term loan is talked at Libor plus 350 bps to 375 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, and the second-lien term loan is talked at Libor plus 725 bps with a 0% Libor floor, a discount of 99 and hard call protection of 102 in year one and 101 in year two, the source added.

Commitments are due at noon ET on June 27.

Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC and Citizens are leading the $1.05 billion in term loans, with Bank of America left on the first-lien and Credit Suisse left on the second-lien.

Proceeds will be used with an equity contribution from Stone Point and General Atlantic and cash on hand to fund the merger of HireRight and General Information Services, a General Atlantic portfolio company.

Closing is expected in the third quarter, subject to regulatory approvals and other customary conditions.

Irvine, Calif.-based HireRight and Chapin, S.C.-based General Information Services are providers of background screening and talent acquisition services.

Value-Based Care talk

Value-Based Care Solutions held its bank meeting in the morning, launching its $600 million seven-year first-lien term loan (B2/B) at talk of Libor plus 375 bps to 400 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, according to a market source.

Commitments are due on June 28, the source said.

The company’s $850 million of credit facilities also include a $75 million revolver (B2/B) and a $175 million privately placed second-lien term loan (Caa2/CCC+).

Goldman Sachs Bank USA, Barclays and Deutsche Bank Securities Inc. are leading the deal that will be used to help fund the $1.05 billion buyout of General Electric’s Value-Based Care Division by Veritas Capital.

Closing is expected in the third quarter, subject to customary conditions and regulatory approvals.

Value-Based Care Solutions is a software provider that leverages technology and analytics to help health care providers effectively manage their financial, clinical and human capital workflows.

Ufinet reveals guidance

Ufinet International came out with price talk of Libor plus 450 bps with a 0.75% Libor floor and an original issue discount of 99.5 on its $525 million seven-year covenant-light first-lien term loan a few hours before its afternoon bank meeting kicked off, a market source remarked.

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

Commitments are due at 5 p.m. ET on June 27.

Credit Suisse Securities (USA) LLC, UBS Investment Bank, Natixis, Bank of Nova Scotia and Santander are leading the deal that will be used to fund the acquisition of the company by Cinven’s Sixth Cinven Fund.

Ufinet is a Madrid-based provider of fiber infrastructure and transmission services to telecom operators across 14 countries, including Colombia, Panama, Guatemala and Costa Rica.

AOC/Aliancys details emerge

AOC/Aliancys launched at its afternoon bank meeting a $500 million seven-year senior secured covenant-light term loan B talked at Libor plus 375 bps to 400 bps with a 25 bps step-down at 3 times net leverage, a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, according to a market source.

Commitments are due at 5 p.m. ET on June 26, the source said.

Citigroup Global Markets Inc., Barclays, Deutsche Bank Securities Inc., Rabobank and Jefferies LLC are leading the deal that will be used to fund the acquisition of AOC LLC by CVC Capital Partners and the merger of AOC with a portion of the Aliancys company, and to refinance existing debt.

Closing is expected in July, subject to customary regulatory approvals.

AOC is a Collierville, Tenn.-based producer of resin chemistries for composites and cast polymer applications. Aliancys, a CVC portfolio company and joint venture with Royal DSM, is a Schaffhausen, Switzerland-based manufacturer of quality resins.

Valtris launches

Valtris Specialty Chemicals held its bank meeting in the morning and announced price talk on its $300 million seven-year covenant-light first-lien term loan (B3/B) and $105 million eight-year covenant-light second-lien term loan (Caa2/CCC+), according to a market source.

Talk on the first-lien term loan is Libor plus 400 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, and talk on the second-lien term loan is Libor plus 800 bps with a 0% Libor floor, a discount of 99 and call protection of 102 in year one and 101 in year two, the source said.

Commitments are due at noon ET on June 28.

Deutsche Bank Securities Inc. and RBC Capital Markets are leading the $405 million in term loans that will be used to fund the potential purchase of certain assets from Ineos, subject to regulatory approvals, and to refinance existing debt.

Valtris, an H.I.G. Capital portfolio company, is an Independence, Ohio-based manufacturer of specialty chemicals producing a diverse set of polymer modifiers, lubricants, and stabilizers primarily used as additives in the production of plastics.

Dhanani floats terms

Dhanani Group released talk of Libor plus 325 bps with a 0% Libor floor and an original issue discount of 99.5 on its $420 million seven-year covenant-light term loan B (B2/B) that launched with an afternoon call, a market source said.

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

Commitments are due at noon ET on June 22.

Wells Fargo Securities LLC is the left lead on the deal that will be used to refinance existing debt, to partially fund the consideration related to proposed tuck-in acquisitions and for general corporate purposes.

Dhanani is a Burger King, Popeyes and La Madeleine franchisee.

MeridianLink holds meeting

MeridianLink /CRIF came out with price talk on its $350 million of first-lien credit facilities (B2/B/BB) with its bank meeting, a market source remarked.

Talk on the $35 million five-year revolver is Libor plus 325 bps with a 0% Libor floor, and talk on the $315 million seven-year covenant-light first-lien term loan is Libor plus 350 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, the source added.

Commitments are due on June 26.

The company is also getting a $125 million eight-year privately placed second-lien term loan.

Antares Capital and Golub Capital are leading the deal that will be used to help fund the buyout of MeridianLink and CRIF by Thoma Bravo LLC.

Costa Mesa, Calif.-based MeridianLink and Atlanta-based CRIF provide mission-critical software platforms that allow financial institutions to automate loan and deposit origination workflows, improve loan decisioning and access data services providers.

Edward Don guidance

Edward Don hosted its bank meeting in the morning and launched its $210 million seven-year covenant-light term loan B (B3/B) at talk of Libor plus 400 bps to 425 bps with a 1% Libor floor and an original issue discount of 99.5, according to a market source.

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

Commitments are due at 5 p.m. ET on June 25.

Wells Fargo Securities LLC is the left lead on the deal that will be used to pay down existing ABL borrowings, refinance an existing term loan and pay related fees and expenses.

Vestar Capital Partners Inc. is the sponsor.

Edward Don is a Woodridge, Ill.-based distributor of foodservice equipment and supplies.

Vestcom launches

Vestcom International announced talk of Libor plus 375 bps with a step-down to Libor plus 350 bps when total net leverage is less than 5.5 times, a 1% Libor floor and 101 soft call protection for six months on its roughly $430 million first-lien term loan B that launched with a call during the session, a market source remarked.

Of the total term loan B amount, $90 million is an incremental tranche that is talked with an original issue discount of 99.5 and the remainder is a refinancing of the existing term loan that is offered at par, the source added.

Commitments are due on June 26.

The company is also getting a $20 million incremental revolver, and a privately placed $34 million incremental second-lien term loan priced at Libor plus 800 bps.

With the incremental second-lien term loan, the company is repricing its existing $158 million second-lien term loan to Libor plus 800 bps from Libor plus 850 bps, the source added.

Antares Capital is leading the deal.

The incremental term loans will be used to fund a distribution to shareholders and pay fees and expenses.

Vestcom, a portfolio company of Charlesbank Capital Partners, is a Little Rock, Ark.-based provider of outsourced shelf-edge information and media solutions.

Cirque floats OID

Cirque du Soleil launched with an afternoon call its $95 million add-on covenant-light first-lien term loan (B1/B+) at original issue discount talk of 99.125 to 99.25, a market source said.

Like the existing loan, the add-on is priced at Libor plus 375 bps with a 1% Libor floor.

Commitments are due at noon ET on June 26, the source added.

RBC Capital Markets is leading the deal that will be used to fund the acquisition of VStar Entertainment Group, a Fridley, Minn.-based producer of family friendly shows, events, experiential installations, mascots and costumes.

TPG Capital is the sponsor.

Cirque du Soleil is a Montreal-based producer of live artistic entertainment.

BMC readies deal

BMC Software emerged with plans to hold a bank meeting in London on Monday and a bank meeting in New York at noon ET on Tuesday to launch $4,775,000,000 equivalent of credit facilities, according to a market source.

The facilities consist of a $400 million five-year revolver, a $3,375,000,000 seven-year term loan B and an €855 million ($1 billion equivalent) seven-year term loan B, the source said.

All of the tranches have a 0% floor, the term loans have 101 soft call protection for six months and the revolver has a par issue price.

Commitments are due at 5 p.m. ET/5 p.m. UK time on June 27, the source added.

Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Jefferies LLC, KKR Capital Markets, Macquarie Capital (USA) Inc., Mizuho Bank and Barclays are leading the deal that will be used to help fund the buyout of the company by KKR from a private investor group led by Bain Capital Private Equity and Golden Gate Capital together with GIC, Insight Venture Partners and Elliott Management.

Closing is expected in the third quarter, subject to regulatory approvals and other customary conditions.

BMC is a Houston-based provider of software solutions for the digital enterprise.

GPS Hospitality on deck

GPS Hospitality will hold a bank meeting at 2 p.m. ET in New York on Monday to launch $405 million of credit facilities, a market source remarked.

The facilities consist of a $65 million revolver and a $340 million seven-year first-lien term loan, the source added.

UBS Investment Bank is the left lead on the deal that will be used to refinance existing debt.

GPS Hospitality is an Atlanta-based Burger King and Popeyes Louisiana Kitchen franchisee.

Big Ass coming soon

Big Ass Solutions set a lender call for 10 a.m. ET on Friday to launch a $249 million first-lien term loan (B2/B) due May 21, 2024 talked at Libor plus 350 bps to 375 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Commitments are due on June 21, the source said.

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to reprice an existing term loan down from Libor plus 425 bps with a 1% Libor floor.

Big Ass Solutions is a Lexington, Ky.-based producer of high volume, low speed and connected fans.

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