Option Care Health, United Talent term loans break for trading; Caesars shops repricing

By Sara Rosenberg

New York, May 1 – Option Care Health Inc. added an incremental first-lien term loan to its capital structure, and United Talent Agency finalized the issue price on its term loan B at the tight end of talk, and then both of these deals freed to trade on Wednesday.

In more happenings, Caesars Entertainment Inc. came to market with a repricing transaction, and Cetera Financial Group Inc. (Aretec Group Inc.) and Protective Industrial Products Inc. (PIP) joined this week’s new issue calendar.

Option Care revised, frees

Option Care added a fungible $50 million incremental first-lien term loan due Oct. 27, 2028 to its transaction, joining a $586.5 million repriced first-lien term loan due Oct. 27, 2028 that launched last week, according to a market source.

Pricing on the term loan debt is SOFR plus 225 basis points with no CSA, a 0.5% floor and a par issue price, in line with the talk announced earlier on the repricing, and, as before, the term loan debt is getting 101 soft call protection for six months.

Commitments were due at noon ET on Wednesday and the term loan broke for trading later in the day, with levels quoted at par ¼ bid, par ¾ offered, another source added.

BofA Securities Inc. is the left lead on the deal.

The incremental term loan will be used for general corporate purposes, and the repricing will take the existing term loan down from SOFR+CSA plus 275 bps with a 0.5% floor. Current CSA is ARRC standard of 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

Option Care is a Bannockburn, Ill.-based provider of home and alternative treatment site infusion therapy services.

United Talent updated, breaks

United Talent Agency set the issue price on its roughly $937 million term loan B due 2028 at par, the tight end of the 99.75 to par talk, a market source remarked.

Pricing on the term loan is SOFR plus 375 bps with a 0.75% floor, and the debt has 101 soft call protection for six months.

Of the total term loan amount, $300 million is a fungible add-on piece to fund an acquisition and roughly $637 million is a repricing of the company’s existing term loan B down from SOFR+ARRC CSA plus 400 bps.

Previously in syndication, pricing on the add-on was reduced from SOFR+ARRC CSA plus 400 bps and the discount talk was changed from 99.75, and the repricing was added to the transaction.

During the session, the term loan freed to trade, with levels quoted at par 1/8 bid, par ½ offered, another source added.

JPMorgan Chase Bank is the left lead on the deal.

United Talent is a Los Angeles-based talent and entertainment company.

Caesars holds call

Caesars Entertainment held a lender call at 11 a.m. ET on Wednesday, launching a $2.475 billion term loan B due February 2030 at talk of SOFR plus 275 bps with a 0.5% floor and an original issue discount of 99.875 to par, a market source said.

JPMorgan Chase Bank is the left lead on the deal that will be used to reprice an existing term loan B due 2030 down from SOFR plus 325 bps with a 0.5% floor.

Caesars is a Reno, Nev.-based gaming and entertainment company.

Cetera readies deal

Cetera Financial scheduled a lender call for 12:30 p.m. ET on Thursday to launch a roughly $2.525 billion first-lien term loan due August 2030 talked at SOFR plus 400 bps with a 0% floor and 101 soft call protection for six months, according to a market source.

Of the total term loan amount, $100 million is a fungible incremental piece and roughly $2.425 billion is a repricing of an existing first-lien term loan.

The term loan is talked with an original issue discount of 99.5 for new commitments and a par issue price for rolled commitments, the source added.

Commitments are due at noon ET on May 8, the source added.

UBS Investment Bank is the left lead on the deal.

The incremental portion will be used for general corporate purposes and to cover fees and expenses and the repricing will take the existing term loan down from SOFR+CSA plus 450 bps with a 0% floor. Current CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

Cetera, a Genstar portfolio company, is a San Diego-based provider of broker-dealer and advisory services.

Protective Industrial on deck

Protective Industrial Products set a lender call for 2 p.m. ET on Thursday to launch a fungible $225 million incremental first-lien term loan B talked with an original issue discount of 99.5, a market source remarked.

Pricing on the term loan is SOFR+CSA plus 400 bps with a 0.75% floor. CSA is ARRC standard of 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

Antares Capital is the left lead on the deal that will be used to refinance an existing $150 million term loan priced at SOFR plus 500 bps with a 0.75% floor and to pay down a portion of an existing second-lien term loan.

Pro forma for the transaction, the term loan B will total $854,762,121.

Protective Industrial, a portfolio company of Odyssey Investment Partners, is a Latham, N.Y.-based provider of essential, consumable and high-performance hand and arm protection as well as other personal protective equipment and workwear.

Anchor allocates

Anchor Packaging LLC allocated on Wednesday its roughly $725 million first-lien term loan due July 2029, according to a market source.

Pricing on the term loan is SOFR plus 375 bps with 25 bps step-downs at 0.5x and 0.75x inside closing date first-lien net leverage and a 0% floor. The loan was sold at an original issue discount of 99.75 and has 101 soft call protection for six months.

During syndication, the discount for new commitments for the term loan was tightened from 99.5. The discount for rolled commitments was unchanged.

UBS Investment Bank is the left lead on the deal that will be used to amend and extend by three years a roughly $522 million first-lien term loan and to fund a distribution to shareholders.

Anchor Packaging is a St. Louis-based producer of thermoformed food packaging solutions.

Fund flows

In other news, loan actively managed funds on Tuesday were negative $50 million and loan ETFs were positive $15 million, sources said.

High-yield actively managed funds on Tuesday were positive $55 million and high-yield ETFs were negative $162 million, sources added.

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