New York, Jan. 11 – In the primary market on Monday, TMS International Corp. tightened the original issue discount on its incremental term loan B and accelerated the commitment deadline.
| Also, | Truck Hero Inc., | PrimeSource | (Park River Holdings Inc.), | Life Time Inc., | Pike Corp., | Warner Music Group | (WMG Acquisition Corp.), | PetVet Care Centers LLC | and | CityMD | (WP CityMD Bidco LLC) released price talk with launch.
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| Furthermore, | Iridium Satellite LLC, | Cole-Parmer Instrument Co. LLC | (CPI HoldCo LLC), | Ineos Quattro | and | Sotera Health Co. | joined this week’s calendar.
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| TMS tweaks deal
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| TMS International changed the original issue discount on its non-fungible $150 million incremental term loan B due 2024 (B1/BB-) to 99 from talk in the range of 97 to 98, a market source remarked.
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| As before, the term loan is priced at Libor plus 275 basis points with a 1% Libor floor and has 101 soft call protection for six months.
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| Commitments are due at noon ET on Tuesday, moved up from 5 p.m. ET on Thursday, the source added.
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| J.P. Morgan Securities LLC is leading the deal that will repay a bridge loan used for the acquisition of the Stein Cos.
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| TMS is a Pennsylvania-based provider of outsourced industrial services to steel mills.
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| Truck Hero talk
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| Truck Hero held its meeting on Monday and announced price talk on its $1.55 billion seven-year senior secured first-lien term loan (B2/B-) at Libor plus 400 bps to 425 bps with two 25 bps leverage-based step-downs and one 25 bps initial public offering-based step-down, a 0.75% Libor floor and an original issue discount of 99, according to a market source.
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| The term loan has 101 soft call protection for six months.
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| Commitments are due at 3 p.m. ET on Jan. 20.
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| The company’s $1.75 billion of credit facilities also include a $200 million five-year ABL revolver.
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| Jefferies LLC, BofA Securities Inc., Credit Suisse Securities (USA) LLC, KKR Capital Markets and Stifel are leading the deal that will be used with a planned issuance of $550 million of senior unsecured debt to help fund the buyout of the company by a consortium led by L Catterton.
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| CCMP Capital, among other shareholders, and Truck Hero’s founding chief executive officer, Bill Reminder, will remain investors in the company.
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| Closing is expected this quarter, subject to customary conditions.
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| Truck Hero is an Ann Arbor, Mich.-based provider of aftermarket accessories for pickup trucks and Jeeps.
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| PrimeSource guidance
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| PrimeSource came out with talk of Libor plus 400 bps to 425 bps with a 0.75% Libor floor and an original issue discount of 99 on its $1.095 billion seven-year covenant-lite first-lien term loan B (B2/B/B+) that launched with a call in the morning, a market source said.
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| The term loan has 101 soft call protection for six months.
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| Commitments are due on Jan. 21, the source added.
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| Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, RBC Capital Markets, Wells Fargo Securities LLC, Nomura, Golub and Antares Capital are leading the deal that will be used to back the buyout of PriSo Holding Corp. (PrimeSource) by Clearlake Capital Group LP from Platinum Equity, which was completed last month, and merger with TKE Holdings Inc. (Dimora Brands).
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| PrimeSource is an Irving, Tex.-based provider of construction fastening solutions and other complementary specialty building products. Dimora is a provider of specialty hardware and home accessories.
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| Life Time proposed terms
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| Life Time hosted a lender call at 2 p.m. ET to launch a $925 million covenant-lite term loan B (B3) due December 2024 talked at Libor plus 475 bps with a 1% Libor floor and an original issue discount of 99, according to a market source.
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| The term loan has 101 hard call protection for one year and then 101 soft call protection for six months, the source said.
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| Commitments are due at 5 p.m. ET on Thursday.
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| Deutsche Bank Securities Inc., Mizuho, U.S. Bank, BMO Capital Markets, Nomura, BofA Securities Inc., Macquarie Capital (USA) Inc., Goldman Sachs Bank USA, KKR Capital Markets, Morgan Stanley Senior Funding Inc., RBC Capital Markets, J.P. Morgan Securities LLC and Wells Fargo Securities LLC are leading the deal that will be used with $750 million of new senior secured debt to amend and extend from June 2022 an existing term loan B.
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| Life Time is a Chanhassen, Minn.-based operator of athletic resorts.
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| Pike shops loan
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| Pike launched on a lender call at 2:30 p.m. ET a $630 million covenant-lite first-lien term loan B (Ba3/B) due December 2027 talked at Libor plus 325 bps to 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 remarked.
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| Of the total term loan amount, $315 million will close immediately and $315 million will close on March 1.
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| Commitments are due at noon ET on Friday, the source added.
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| Morgan Stanley Senior Funding Inc. is leading the deal that will be used to support the acquisition by Lindsay Goldberg of 50.1% of the company that closed on Dec. 21 and to refinance existing term loans.
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| Pike is a Mount Airy, N.C.-based specialty construction and engineering firm.
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| Warner holds call
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| Warner Music Group emerged in the morning with plans to hold a lender call at 11 a.m. ET to launch an $820 million seven-year covenant-lite first-lien term loan (Ba3/BB) talked at Libor plus 225 bps to 237.5 bps with a 0% Libor floor, an original issue discount of 99.625 to 99.75 and 101 soft call protection for six months, according to a market source.
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| Commitments are due at noon ET on Wednesday, the source said.
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| Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to refinance an existing term loan.
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| Warner Music is a New York-based music entertainment company.
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| PetVet comes to market
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| PetVet surfaced early in the day with plans to hold a lender call at 2:30 p.m. ET to launch a fungible $250 million incremental first-lien term loan B-3 due February 2025 and a repricing of its existing roughly $373 million first-lien term loan B-3 due February 2025, a market source said.
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| The term loan debt is talked at Libor plus 400 bps with a 0.75% Libor floor and 101 soft call protection for six months, the source continued. The new money is talked with an original issue discount of 99.5 to 99.75 and the repricing consent is talked at par.
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| Commitments and consents are due at 2 p.m. ET on Thursday, the source added.
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| Jefferies LLC and KKR Capital Markets are leading the deal.
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| The incremental term loan will be used to finance the company’s acquisition pipeline and the repricing will take the existing term loan down from Libor plus 425 bps with a 1% Libor floor.
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| PetVet is a Westport, Conn.-based operator of general practice and specialty veterinary hospitals for companion animals.
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| CityMD repricing
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| CityMD announced in the morning that it would hold a lender call at 1:30 p.m. ET to launch an $891 million covenant-lite first-lien term loan due August 2026 talked at Libor plus 400 bps with a 0.75% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.
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| Commitments are due at 5 p.m. ET on Wednesday, the source added.
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| Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, ING, Mizuho, Jefferies LLC, KeyBanc Capital Markets and Truist are leading the deal that will be used to reprice an existing term loan down from Libor plus 450 bps with a 1% Libor floor.
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| CityMD is an outpatient-focused physician group.
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| Iridium joins calendar
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| In more primary happenings, Iridium set a lender call for 10 a.m. ET on Tuesday to launch a $1.638 billion covenant-lite term loan B due November 2026 talked at Libor plus 275 bps to 300 bps with a 1% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months, according to a market source.
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| Commitments are due at 3 p.m. ET on Thursday, the source added.
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| Deutsche Bank Securities Inc., Barclays, Credit Suisse Securities (USA) LLC and Wells Fargo Securities LLC are leading the deal that will be used to reprice an existing term loan B down from Libor plus 375 bps with a 1% Libor floor.
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| Iridium is a McLean, Va.-based provider of mobile voice and data communications services through satellite to businesses, the U.S and foreign governments, non-governmental organizations and consumers.
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| Cole-Parmer on deck
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| Cole-Parmer will hold a lender call at 10 a.m. ET on Tuesday to launch a $125 million incremental first-lien term loan due Nov. 4, 2026, a market source remarked.
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| The company is also getting a $65 million privately placed incremental second-lien term loan, the source added.
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| Jefferies LLC is leading the deal that will be used to fund an acquisition.
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| Cole-Parmer is a Vernon Hills, Ill.-based manufacturer of peristaltic, temperature monitoring, and environmental precision equipment/consumables used in research and production applications.
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| Ineos readies deal
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| Ineos Quattro scheduled a lender call for 10 a.m. ET on Wednesday to launch a €2.6 billion equivalent U.S. and euro five-year first-lien term loan B (//BB+), according to a market source. Sizes of the U.S. and euro tranches are to be determined.
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| Talk on the U.S. tranche is Libor plus 325 bps to 350 bps with a 0.5% Libor floor and an original issue discount of 99 to 99.5, and talk on the euro tranche is Euribor plus 325 bps to 350 bps with a 0% floor and a discount of 99 to 99.5, the source said. Both tranches have 101 soft call protection for six months.
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| J.P. Morgan, Barclays, BNP Paribas Securities Corp., Citigroup Global Markets Inc., Goldman Sachs and HSBC are the bookrunners on the U.S. tranche, with JPMorgan the left lead. BNP, Goldman Sachs and JPMorgan are the joint physical bookrunners on the euro tranche, and Barclays, Citigroup and HSBC are bookrunners. Other joint bookrunners on the debt include BofA Securities Inc., Commerzbank, Credit Suisse, Lloyds, Mizuho, Morgan Stanley, NatWest, ABN Amro, Credit Agricole, Deutsche Bank, ING, Intesa, Santander, Fifth Third and ICBC. Mandated lead arrangers are KBC and MUFG. JPMorgan is the administrative agent.
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| Commitments are due at noon ET on Jan. 20, the source added.
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| Ineos refinancing
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| Ineos Quattro will use its new term loan borrowings with other secured and unsecured debt and cash on hand to repay bridge loans incurred to fund the acquisition of BP’s Aromatics and Acetyls businesses, refinance the existing Inovyn term loan B, fund the full amount of deferred consideration owed to BP and pay transaction related fees and expenses.
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| In addition, the company is seeking a technical amendment to its existing $202 million term loan B due January 2027 and its existing €450 million term loan B due January 2027.
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| BNP, Goldman Sachs and JPMorgan are the joint global coordinators on the existing term loans, and Barclays is the administrative agent.
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| Amendment consents are due at noon ET on Jan. 19.
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| Ineos Quattro is a chemicals company that was created through the combination of two of Ineos’ existing businesses, Ineos Styrolution and Inovyn, and BP’s Aromatics and Acetyls businesses.
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| Sotera sets call
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| Sotera Health will hold a lender call at 11 a.m. ET on Tuesday to launch a $1.768 billion term loan B due December 2026, a market source said.
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| The term loan has 101 soft call protection for six months, the source added.
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| Commitments are due at noon ET on Friday.
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| J.P. Morgan Securities LLC is leading the deal that will be used to reprice an existing term loan B down from Libor plus 450 basis points with a 1% Libor floor.
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| Sotera is a Broadview Heights, Ohio-based provider of mission-critical end-to-end sterilization solutions and lab testing and advisory services for the health care industry.
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