USI, Nuvei, Travel + Leisure, Summit, Catalent break; Davis, ArcLight, TouchTunes updated

By Sara Rosenberg

New York, Dec. 14 – USI Inc. finalized pricing on its term loan at the low end of revised talk, Nuvei Corp. raised the size of its term loan B, firmed the spread at the low end of guidance and changed the original issue discount, and Travel + Leisure Co. set the margin on its term loan B at the low end of talk and the issue price on the new money at the tight end of guidance, and then these deals freed to trade on Thursday.

Also, before breaking for trading, Summit Behavioral Healthcare LLC tightened the original issue discount on its incremental first-lien term loan, and Catalent Pharma Solutions Inc. upsized its incremental term loan B-4, set the spread at the low side of guidance and changed the issue price.

In more happenings in the secondary market, levels on Citadel Securities LP’s term loan B were a little higher from where the debt broke for trading during the previous session.

Meanwhile, in other news, Davis-Standard LLC (DS Parent Inc.) set the spread on its term loan B at the high end of guidance, removed a step-down and widened the original issue discount talk, and ArcLight NGPL Holdings LLC (AL NGPL Holdings LLC) firmed the issue price for the new money portion of its term loan B at the tight end of guidance.

Furthermore, TouchTunes (TA TT Buyer LLC) increased the size of its incremental first-lien term loan and revised the original issue discount, Forefront Dermatology (Dermatology Intermediate Holdings III Inc.) upsized its incremental first-lien term loan, set the spread at the high side of talk and finalized the issue price at the midpoint of guidance, and Nemera added a U.S. term loan to its transaction, and downsized the euro term loan while removing one pricing step-down and changing original issue discount talk.

USI updated, frees

USI finalized pricing on its $2.475 billion term loan due November 2029 at SOFR plus 300 basis points, the low end of revised talk of SOFR plus 300 bps to 325 bps and down from initial talk of SOFR plus 325 bps, according to a market source.

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

Previously in syndication, the issue price on the term loan was tightened from talk in the 99.875 area.

On Thursday, the term loan broke for trading, with levels quoted at par bid, par 3/8 offered, another source added.

BofA Securities Inc. and KKR Capital Markets are leading the deal that will be used to reprice an existing term loan down from SOFR plus 375 bps with a 0.5% floor.

USI is a Valhalla, N.Y.-based insurance brokerage and consulting firm.

Nuvei reworked, breaks

Nuvei increased its covenant-lite term loan B due December 2030 to $1.275 billion from $1.075 billion, set pricing at SOFR plus 300 bps, the low end of the SOFR plus 300 bps to 325 bps talk, and tightened the original issue discount to 99.25 from talk in the range of 98.5 to 99, a market source remarked.

The term loan still has a 0.5% floor and 101 soft call protection for six months.

Recommitments were due at 3 p.m. ET on Thursday and the term loan B made its way into the secondary market late in the day, with levels quoted at 99½ bid, 99¾ offered, a trader added.

BMO Capital Markets, RBC Capital Markets, BofA Securities Inc., Capital One, Citizens, Fifth Third, JPMorgan Chase Bank, KeyBanc Capital Markets, National Bank of Canada, Bank of Nova Scotia, UBS Investment Bank and Wells Fargo Securities LLC are leading the deal that will be used to refinance the company’s existing reducing revolver and term loan B, and the funds from the upsizing will reduce anticipated funding on the revolver.

Nuvei is a Montreal-based payment technology company.

Travel updated, trades

Travel + Leisure Co. set pricing on its $598 million covenant-lite term loan B (Ba3/BB-) due Dec. 14, 2029 at SOFR plus 325 bps, the low end of the SOFR plus 325 bps to 350 bps talk, and firmed the original issue discount on the new money/add-on portion of the loan at 99.75, the tight end of the 99.5 to 99.75 talk, a market source said.

The term loan still has a 10 bps CSA, a 0.5% floor, a par issue price on the repricing portion of the term loan and 101 soft call protection for six months.

During the session, the term loan B began trading, with levels quoted at par 1/8 bid, par 3/8 offered, another source added.

Deutsche Bank Securities Inc., BofA Securities Inc., JPMorgan Chase Bank, Barclays, Wells Fargo Securities LLC, MUFG, Truist Securities, Bank of Nova Scotia, PJT, HSBC Securities (USA) Inc., US Bank and Comerica are leading the deal that will be used to reprice an existing $298 million incremental term loan due 2029 down from SOFR+10 bps CSA plus 400 bps with a 0.5% floor, and the fungible $300 million add-on portion of the new term loan will be used for the repayment of 2024 senior secured notes.

Closing is expected on Wednesday.

Travel + Leisure is an Orlando, Fla.-based membership and leisure travel company.

Summit tweaked, frees

Summit Behavioral adjusted the original issue discount on its fungible $200 million incremental first-lien term loan (B3/B-) due Nov. 24, 2028 to 99.25 from talk in the range of 98.5 to 99, according to a market source.

Pricing on the incremental term loan is SOFR+CSA plus 475 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.

Commitments continued to be due at noon ET on Thursday and the term loan broke in the afternoon, with levels quoted at 99 7/8 bid, par 3/8 offered, another source added.

Jefferies LLC, BofA Securities Inc., SMBC, Wells Fargo Securities LLC, UBS Investment Bank and Fifth Third are leading the deal that will be used to refinance the company’s existing second-lien term loan.

Pro forma for the transaction, the first-lien term loan will total $799,865,000.

Summit Behavioral is a Franklin, Tenn.-based behavioral health services provider with a focus on the substance use disorder and acute psychiatric treatment end markets.

Catalent modified, breaks

Catalent Pharma Solutions lifted its incremental term loan B-4 due 2028 to $600 million from $500 million, firmed pricing at SOFR plus 300 bps, the low end of the SOFR plus 300 bps to 325 bps talk, and moved the original issue discount to 99.25 from 98.5, a market source said.

The term loan still has a 0.5% floor and 101 soft call protection for six months.

Recommitments were due at 11 a.m. ET on Thursday and the term loan began trading later in the day, with levels quoted at 99½ bid, par offered, another source added.

JPMorgan Chase Bank is leading the deal that will be used to repay revolver borrowings.

Catalent is a Somerset, N.J.-based provider of development sciences and manufacturing platforms for medicines.

Citadel inches up

Citadel Securities’ fungible $500 million incremental term loan B due July 28, 2030 was quoted at par bid, par ¼ offered on Thursday, up from Wednesday’s break levels of 99 7/8 bid, par 1/8 offered, according to a market source.

Pricing on the incremental term loan is SOFR+CSA plus 250 bps with a 0% floor and it was sold at an original issue discount of 99.875. CSA is ARRC standard of 11.448 bps one-month rate, 26.161 bps three-month rate, 42.826 bps six-month rate and 71.513 bps 12-month rate. The debt has 101 soft call protection until Jan. 28, 2024.

BofA Securities Inc., Goldman Sachs Bank USA and JPMorgan Chase Bank are leading the deal that will be used with cash from the balance sheet for general corporate purposes, including trading capital.

Citadel is a Miami-based capital markets firm and a provider of market-making services to the fixed income, currency and commodity markets.

Davis-Standard reworked

Davis-Standard firmed pricing on its $450 million seven-year covenant-lite term loan B at SOFR plus 550 bps, the high end of the SOFR plus 525 bps to 550 bps talk, removed a 25 bps step-down at less than 3.25x first-lien net leverage, and modified the original issue discount talk to a range of 95 to 96 from a range of 97 to 98, according to a market source.

The term loan still has a 0.75% floor and 101 soft call protection for six months.

Recommitments were due at 5 p.m. ET on Thursday, the source added.

Wells Fargo Securities LLC is the left lead arranger on the deal. The debt commitment was provided by Wells Fargo, BMO Capital Markets Corp., UBS Securities LLC, Deutsche Bank Securities Inc., Stifel, Nicolaus & Co. Inc. and Citizens Bank.

The term loan will be used to fund the acquisition of the Extrusion Technology Group, a provider of extrusion equipment and services, from Nimbus and refinance existing debt.

Davis-Standard, owned by Gamut Capital Management LP, is a Pawcatuck, Conn.-based developer, distributor and aftermarket servicer of extrusion and converting technology.

ArcLight finalized

ArcLight NGPL set the issue price for the new money portion of its roughly $268 million term loan B due April 15, 2028 at par, the tight end of the 99.75 to par talk, a market source said.

The issue price for the existing money portion of the new term loan remained at par.

Pricing on the new term loan is SOFR plus 350 bps with a 1% floor and no CSA, and the debt has 101 soft call protection until March 2024.

The new term loan will be fungible with the company’s existing $461 million term loan due April 15, 2028.

Recommitments were due at 5 p.m. ET on Thursday, the source added.

Barclays is leading the deal that will be used to reprice an existing roughly $233 million term loan B down from SOFR+CSA plus 375 bps with a 1% floor, to fund a distribution to ArcLight and to pay transaction costs. The existing CSA is ARRC standard of 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

NGPL is a FERC-regulated natural gas pipeline system.

TouchTunes tweaked

TouchTunes raised its fungible incremental covenant-lite first-lien term loan due April 1, 2029 to $155 million from $140 million and tightened the original issue discount to 99 from 98.789, according to a market source.

Pricing on the incremental term loan is SOFR plus 525 bps with a 0.5% floor, and the debt has 101 soft call protection for six months.

Commitments were due on Thursday afternoon, the source added.

Citizens Bank is leading the deal that will be used to pay down a portion of the company’s existing second-lien term loan and to fund a shareholder distribution.

TA Associates is the sponsor.

TouchTunes is a New York-based music distributor through a network of jukeboxes.

Forefront upsized

Forefront Dermatology raised its non-fungible incremental first-lien term loan (B2/B) due April 1, 2029 to $110 million from $100 million, firmed pricing at SOFR plus 550 bps, the high end of the SOFR plus 525 bps to 550 bps talk and set the original issue discount at 97.5, the midpoint of the 97 to 98 talk, a market source remarked.

The incremental term loan still has a 0.5% floor and 101 soft call protection for six months.

Allocations went out on Thursday, the source added.

UBS Investment Bank is leading the deal that will be used to repay revolver drawings and to fund acquisitions under letters of intent.

Partners Group is the sponsor.

Forefront Dermatology is a Manitowoc, Wis.-based dermatology physician practice.

Nemera revised

Nemera added a $75 million covenant-lite term loan B due January 2029 to its capital structure that is priced at SOFR plus 500 bps with 25 bps step-downs at 4.5x and 4x senior secured net leverage, a 0% floor and an original issue discount of 98, according to a market source.

The company also downsized its euro covenant-lite term loan B due January 2029 to €525 million from €590 million, revised the pricing step-downs to two 25 bps step-downs at 4.5x and 4x senior secured net leverage, from three step-downs at 4.75x, 4.25x and 3.75x senior secured net leverage, and changed the original issue discount talk to a range of 98 to 98.5 from a range of 97.5 to 98, the source continued.

Pricing on the euro term loan remained at Euribor plus 500 bps with a 0% floor.

Both term loans (B3/B-) have 101 soft call protection for six months.

HSBC, ING, Natixis and UniCredit are the physical bookrunners on the deal. Natixis is the agent.

The term loans will be used to extend by three years an existing €460 million term loan B, which includes a U.S. carve-out, to partially refinance second-lien debt and for general corporate purposes.

Nemera, owned by Astorg and Montagu, is a France-based manufacturer of drug delivery devices.

Fund flows

In other news, actively managed loan fund flows on Wednesday were negative $27 million and loan ETFs were positive $103 million, sources said.

The tracking estimate for Thursday night’s weekly Lipper numbers for loans are inflows totaling $215 million, sources added.

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