CPG, Authentic Brands, Whole Earth break; Rackspace, Janus, Pretium, Paraxel updates emerge

By Sara Rosenberg

New York, Feb. 2 – CPG International LLC (AZEK) firmed the spread on its first-lien term loan at the tight end of guidance before freeing up for trading on Tuesday, and deals from Authentic Brands Group LLC and Whole Earth Brands Inc. surfaced in the secondary market as well.

In other news, Rackspace Technology Global Inc. increased the size of its first-lien term loan and finalized pricing at the low end of talk, and Janus International Group raised pricing on its term loan B-1, revised the step-down and modified the Libor floor.

Also, Pretium Packaging (Pretium Pkg Holdings Inc.) raised pricing on its incremental first-lien term loan and revised the call protection, and cancelled plans to reprice its existing first-lien term loan, Parexel International Corp. shifted to an add-on term loan from a refinancing of its existing term loan, and Klockner Pentaplast accelerated the commitment deadline for its term loan.

Furthermore, Qlik Technologies Inc. (Project Alpha Intermediate Holding Inc.), Wheel Pros Inc., Cotiviti Inc. and Ascend Performance Materials announced price talk with launch.

Additionally, Gainwell Technologies, Aptean, Ontic (Bleriot US Bidco Inc.), Franchise Group Inc. and Form Technologies joined this week’s primary calendar.

CPG updated, trades

CPG International set pricing on its $467,654,000 first-lien term loan due May 5, 2024 at Libor plus 250 basis points, the low end of the Libor plus 250 bps to 275 bps talk, a market source said.

The term loan still has one ratings-based step-down, a 0.75% Libor floor, a par issue price and 101 soft call protection for six months.

On Tuesday, the term loan freed to trade, with levels quoted at par bid, par ½ offered, another source added.

Jefferies, Barclays, Goldman Sachs Bank USA, Deutsche Bank Securities Inc., BofA Securities Inc. and Citigroup Global Markets Inc. are leading the deal that will be used to reprice an existing term loan down from Libor plus 375 bps with a 1% Libor floor.

CPG is a designer and manufacturer of low-maintenance products focused on the outdoor living market.

Authentic frees up

Authentic Brands’ $1.597 billion first-lien term loan broke for trading too, with levels quoted at par bid, par ¼ offered, according to a market source.

Pricing on the term loan is Libor plus 325 bps with a 0.75% Libor floor and it was issued at par. The debt has 101 soft call protection for six months.

During syndication, pricing on the term loan firmed at the high end of the Libor plus 300 bps to 325 bps talk.

BofA Securities Inc. is leading the deal that will be used to reprice an existing term loan down from Libor plus 350 bps with a 1% Libor floor.

Authentic Brands is a New York-based acquirer and manager of consumer brands in the fashion, sports and celebrity/entertainment sectors.

Whole Earth hits secondary

Whole Earth Brands’ bank debt also began trading, with the $375 million seven-year covenant-lite term loan B quoted at 99¼ bid, 99¾ offered, a market source remarked.

Pricing on the term loan is Libor plus 450 bps with a 1% Libor floor and it was sold at an original issue discount of 99. The loan has 101 soft call protection for six months.

The company’s $450 million of credit facilities (B2/B) also include a $75 million revolver.

TD Securities (USA) LLC, Truist, BMO Capital Markets and CoBank are leading the deal that will be used with cash on hand to fund the $180 million acquisition of Wholesome Sweeteners Inc. and to refinance existing bank debt.

Closing is expected in the company’s first quarter 2021, subject to review under antitrust laws.

Whole Earth is a Chicago-based food company focused on premium plant-based sweeteners, flavor enhancers and other foods. Wholesome Sweeteners is an organic sweetener brand.

Rackspace tweaked

Back in the primary market, Rackspace Technology raised its seven-year senior secured covenant-lite first-lien term loan (B1/B+) to $2.3 billion from $2.2 billion and firmed the spread at Libor plus 275 bps, the low end of the Libor plus 275 bps to 300 bps talk, according to a market source.

The term loan still has a 0.75% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

Commitments remained due at noon ET on Tuesday, the source added.

Citigroup Global Markets Inc., Barclays, BMO Capital Markets, MUFG, J.P. Morgan Securities LLC, Goldman Sachs Bank USA, Mizuho, RBC Capital Markets, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., HSBC Securities (USA) Inc. and Apollo are leading the deal that will help repay all borrowings outstanding under the company’s existing term loan B and pay related fees and expenses.

Other funds for the transaction will come from $550 million of senior secured notes. The notes were downsized from $650 million with the term loan upsizing.

Closing is expected on Friday.

Rackspace is a Windcrest, Tex.-based end-to-end multicloud technology services company.

Janus revised

Janus International lifted pricing on its $634.61 million term loan B-1 due February 2025 to Libor plus 325 bps from Libor plus 300 bps, changed the 25 bps step-down to be effective at B1/B+ corporate ratings instead of once the company’s merger with Juniper Industrial Holdings Inc. and listing occurs, and modified the Libor floor to 1% from 0.75%, according to a market source.

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

Commitments were due at 2 p.m. ET on Tuesday and the loan allocated late in the day, the source added.

UBS Investment Bank, KeyBanc Capital Markets and Stifel are leading the deal that will be used to reprice an existing term loan B-1 down from Libor plus 375 bps with a 1% Libor floor and an existing term loan B-2 down from Libor plus 450 bps with a 1% Libor floor and combine them into one tranche.

Janus is a Temple, Ga.-based manufacturer of roll-up and swing doors, hallway systems and re-locatable storage units for the self-storage industry.

Pretium reworked

Pretium Packaging lifted pricing on its fungible $75 million incremental covenant-lite first-lien term loan (B3/B) due Nov. 5, 2027 to Libor plus 400 bps from talk in the range of Libor plus 325 bps to 350 bps and revised the call protection to a 101 soft call through May 5, which matches existing call protection, from a 101 soft call for six months, a market source remarked.

In addition, the company eliminated plans to reprice its existing $540 million covenant-lite first-lien term loan due November 2027 down from Libor plus 400 bps, the source said. The repricing was offered at par.

As before, the incremental term loan has a 0.75% Libor floor, same as the existing term loan, and original issue discount talk of 99.75.

Commitments continue to be due at 5 p.m. ET on Wednesday, the source added.

Credit Suisse Securities (USA) LLC and KKR Capital Markets are leading the deal that will be used to repay some second-lien term loan borrowings.

Pretium is a Chesterfield, Mo.-based designer and manufacturer of rigid plastic packaging solutions.

Parexel restructured

Parexel is now seeking a $475 million add-on term loan instead of a $2.3 billion term loan B, a market source said.

The add-on term loan is priced at Libor plus 275 bps with a 0% Libor floor and an original issue discount of 99.25, the source added.

Previously, when structured as a $2.3 billion term loan B, talk was Libor plus 275 bps to 300 bps with a 0% Libor floor and an original issue discount of 99 to 99.5.

Commitments were due at 5 p.m. ET on Tuesday.

BofA Securities Inc. is leading the deal that will be used to help refinance 6 3/8% notes due 2025. The existing term loan due 2024 that was originally expected to be refinanced will now remain in place.

Parexel is a Durham, N.C.-based biopharmaceutical services company.

Klockner accelerated

Klockner Pentaplast moved up the commitment deadline for its €1.175 billion equivalent U.S. and euro term loan to noon ET on Wednesday from 5 p.m. ET on Thursday, according to a market source.

Talk on the term loan debt is Libor/Euribor plus 475 bps to 500 bps with an original issue discount of 98.5 and 101 soft call protection for six months. The U.S. term loan tranche has a 0.5% Libor floor and the euro tranche has a 0% floor.

J.P. Morgan Securities LLC and Credit Suisse are leading the deal that will be used to refinance the company’s existing capital structure.

Klockner Pentaplast is a Montabaur, Germany-based manufacturer of rigid plastic film solutions.

Qlik reveals guidance

Qlik Technologies held its lender call on Tuesday and announced talk on its $1,418,200,000 covenant-lite term loan B due April 26, 2024 at Libor plus 375 bps to 400 bps with a 0% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

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

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to reprice and combine an existing $960,175,000 term loan B-1 and an existing $458,025,000 term loan B-2.

Qlik is a King of Prussia, Pa.-based data analytics company.

Wheel Pros talk

Wheel Pros came out with original issue discount talk of 99 to 99.5 on its fungible $200 million incremental first-lien term loan (B3/B-) due November 2027 that launched with a call during the session, a market source said.

Pricing on the incremental term loan is Libor plus 525 bps with a 1% Libor floor, in line with existing term loan pricing.

Commitments are due on Feb. 12, the source added.

UBS Investment Bank and Jefferies LLC are leading the deal that will be used to repay a second-lien term loan.

Wheel Pros, a Clearlake Capital portfolio company, is a Denver-based distributor of proprietary branded wheels and performance tires.

Cotiviti proposed terms

Cotiviti Inc. launched on its call its fungible $550 million add-on first-lien term loan (B2/B+/BB-) with original issue discount talk of 99 to 99.5, according to a market source.

The add-on term loan is priced at Libor plus 450 bps with a 0% Libor floor, same as the existing term loan.

Commitments are due at noon ET on Feb. 11.

J.P. Morgan Securities LLC is leading the deal that will be used to fund the acquisition of HMS’ capabilities focused on the commercial, Medicare and federal markets.

Closing is expected in the first half of this year, subject to the approval of HMS shareholders and the satisfaction of customary conditions, including regulatory approvals.

Cotiviti is a South Jordan, Utah-based health care analytics company.

Ascend holds call

Ascend Performance Materials hosted a lender call at 1 p.m. ET to launch a $1.086 billion term loan talked at Libor plus 500 bps with a 0.75% Libor floor, a par issue price and 101 soft call protection for six months, a market source said.

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

BofA Securities Inc. is leading the deal that will be used to reprice an existing term loan down from Libor plus 525 bps with a 1% Libor floor.

Ascend Performance Materials is a Houston-based provider of chemicals, fibers and plastics.

Gainwell on deck

Gainwell Technologies set a lender call for 10 a.m. ET on Wednesday to launch a fungible $1.827 billion incremental first-lien term loan (B2//BB-) talked at Libor plus 400 bps to 425 bps with a 0.75% Libor floor and an original issue discount of 98.56, a market source remarked.

The company’s existing first-lien term loan is priced at Libor plus 400 bps with a 0.75% Libor floor.

J.P. Morgan Securities LLC is leading the deal that will be used to help fund the acquisition of HMS’ capabilities focused on the Medicaid market, including solutions delivered to states and managed care organizations.

Closing is expected in the first half of this year, subject to the approval of HMS shareholders and the satisfaction of customary conditions, including regulatory approvals.

Gainwell is a provider of solutions to the administration and operations of health and human services programs.

Aptean joins calendar

Aptean scheduled a lender call for 1 p.m. ET on Wednesday to launch a fungible $100 million incremental first-lien term loan, according to a market source.

Golub Capital is the left lead on the deal that will be used to refinance an existing non-fungible $80 million first-lien term loan-2 and to put cash on balance sheet.

Pro forma for the transaction, the first-lien term loan will total $845 million.

Aptean is an Alpharetta, Ga.-based provider of mission-critical enterprise software solutions.

Ontic plans repricing

Ontic will hold a lender call at 11 a.m. ET on Wednesday to launch a $551 million covenant-lite first-lien term loan due October 2026, a market source said.

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

Nomura Securities is leading the deal that will be used to reprice an existing term loan from Libor plus 475 bps with a 0% Libor floor.

Ontic is a provider of OEM-licensed parts and aftermarket services for mature aerospace and defense platforms.

Franchise readies deal

Franchise Group set a lender call for 11 a.m. ET on Wednesday to launch a $750 million first-out term loan talked at Libor plus 500 bps with a 1% Libor floor and an original issue discount of 98.5 to 99, according to a market source.

Commitments are due at 5 p.m. ET on Feb. 17, the source continued.

J.P. Morgan Securities LLC, Citizens Bank and Credit Suisse Securities (USA) LLC are leading the deal that will be used to help fund the acquisition of Pet Supplies Plus, a Livonia, Mich.-based omnichannel retail chain and franchisor of pet supplies and services, from Sentinel Capital Partners for about $700 million and to refinance an existing term loan.

Other funds for the transaction will come from a $250 million last-out term loan and $300 million of unsecured financing that have been placed, another source added.

Closing is expected in March, subject to the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and other customary conditions.

Franchise Group is a Virginia Beach, Va.-based operator of franchised and franchisable businesses.

Form Technologies on deck

Form Technologies will hold a lender call on Wednesday to launch a $640 million first-out term loan talked at Libor plus 500 bps with a 50 bps step-down at B-equivalent ratings and a 1% Libor floor, a market source remarked.

Included in the term loan is hard call protection of 102 in year one and 101 in year two.

Commitments are due at noon ET on Feb. 11, the source added.

J.P. Morgan Securities LLC is leading the deal that will be used to help refinance existing debt.

Form Technologies is a Charlotte, N.C.-based precision component manufacturer.

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