Internet Brands, Tekni-Plex, Agiliti break; BroadStreet accelerates commitment deadline

By Sara Rosenberg

New York, April 25 – Internet Brands (MH SUB I LLC) finalized the size of its amended and extended term loan, Tekni-Plex Inc. (Trident TPI Holdings Inc.) increased the size of its U.S. incremental first-lien term loan B and firmed the spread at the low end of guidance and canceled plans for a euro term loan B, and Agiliti Health tightened the original issue discount on its term loan B, and then all of these deals freed to trade on Tuesday.

Also, BroadStreet Partners Inc. moved up the commitment deadline for its incremental term loan B-3, and Copeland, Global Healthcare Exchange LLC, Signature Aviation plc and Datasite (Mermaid Bidco Inc.) all released price talk in connection with lender calls.

Internet Brands updated

Internet Brands firmed the size of its amended and extended five-year term loan (B1/B) at $4.228 billion, versus $4.728 billion and is leaving a $500 million stub term loan due 2024 in place, according to a market source.

As before, the extended term loan is priced at SOFR plus 425 basis points with a 0.5% floor and an original issue discount of 97.5, and has 101 soft call protection for six months.

Previously in syndication, the transaction was revised to an amendment and extension from a new $4.728 billion five-year term loan that would refinance the existing term loan due 2024, allowing for the possibility of a non-extended stub tranche, and changes were made to documentation, including to restricted payments and setting MFN at 50 bps for 24 months with no carve-outs except for permitted merger and acquisitions.

Additionally, at launch, the term loan was sized at $4.741 billion, but the adjusted $4.728 billion total size of extended and non-extended term loan takes into account a March amortization payment.

Internet Brands frees

On Tuesday, Internet Brands’ extended term loan made its way into the secondary market, with levels quoted at 97½ bid, 97 7/8 offered, a trader added.

RBC Capital Markets and KKR Capital Markets are leading the deal.

Internet Brands is an El Segundo, Calif.-based provider of software as a service and traffic driven marketplace/media offerings across health, legal, dental and media verticals.

Tekni-Plex reworked, trades

Tekni-Plex raised its U.S. incremental covenant-lite first-lien term loan B (B2/B-) due September 2028 to $880 million from $626 million and finalized pricing at SOFR plus 450 bps, the low end of the SOFR plus 450 bps to 475 bps talk, a market source said.

The term loan still has a 0.5% floor, an original issue discount of 97 and 101 soft call protection for six months.

With the U.S. term loan upsizing, the company terminated plans for a $254 million equivalent euro incremental covenant-lite first-lien term loan B due September 2028 that was talked at Euribor plus 475 bps to 500 bps with a 0% floor and a discount of 96 to 97.

Recommitments were due at 2:30 p.m. ET on Tuesday and the term loan broke for trading later in the day, with levels quoted at 97¼ bid, 98¼ offered, another source added.

Credit Suisse Securities (USA) LLC, BMO Capital Markets, Jefferies LLC and Goldman Sachs Bank USA are leading the deal that will be used to refinance existing debt.

Tekni-Plex is a Wayne, Pa.-based provider of health care and consumer material solutions.

Agiliti tweaked, breaks

Agiliti Health changed the original issue discount on its $1.075 billion seven-year term loan B to 99.25 from 99, according to a market source.

As before, the term loan is priced at SOFR plus 300 bps with a 0% floor, and has 101 soft call protection for six months.

The term loan freed to trade during the session, with levels quoted at 99¾ bid, par offered, another source added.

JPMorgan Chase Bank is leading the deal that is being used to refinance both of the company’s term loans into one loan.

The term loan came back to market on Monday after being pulled in March as a result of market volatility. In March, talk on the loan was SOFR plus 300 bps to 325 bps with a 0.5% floor and an original issue discount of 99.

Agiliti is an Eden Prairie, Minn.-based essential service provider to the U.S. health care industry.

BroadStreet moves deadline

In more happenings, BroadStreet Partners accelerated the commitment deadline for its $735 million incremental term loan B-3 (B2/B) due January 2029 to 5 p.m. ET on Wednesday from noon ET on May 2, a market source remarked.

Talk on the term loan is SOFR plus 400 bps to 425 bps with a 0% floor, an original issue discount of 98 and 101 soft call protection for six months.

RBC Capital Markets and BMO Capital Markets are leading the deal that will be used to support a new core agency partnership.

BroadStreet is a Columbus, Ohio-based insurance broker.

Copeland guidance

Copeland held its lender call on Tuesday morning and announced talk on its up to $2.75 billion seven-year term loan B (Ba3/BB-/BB+) at SOFR plus 350 bps with an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

Commitments are due at noon ET on May 4, the source added.

RBC Capital Markets and Barclays are leading the deal that will be used with other secured debt to help fund the acquisition by Blackstone of a majority stake in Emerson Electric Co.’s Climate Technologies business (Copeland) for an aggregate purchase price of $14 billion.

Under the agreement, Emerson will receive upfront, pre-tax cash proceeds of about $9.5 billion and a note of $2.25 billion at close, and retain 45% common equity ownership in the new stand-alone joint venture.

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

Copeland is a manufacturer of mission critical, highly engineered heating, ventilation, air conditioning and refrigeration components.

Global Healthcare launches

Global Healthcare Exchange held a lender call at 11 a.m. ET, launching a $725 million term loan (B2/B-) due June 2027 at talk of SOFR plus 475 bps to 500 bps with a 0.5% floor, an original issue discount of 97 and 101 soft call protection for six months, a market source remarked.

Commitments are due at 5 p.m. ET on May 4, the source added.

JPMorgan Chase Bank is leading the deal that will be used to extend an existing term loan from June 2024.

Global Healthcare Exchange is a Louisville, Colo.-based provider of cloud-based health care supply chain management technology and services.

Signature Aviation talk

Signature Aviation hosted a lender call at 2 p.m. ET to launch a fungible $400 million add-on term loan B-2 (B2) due 2029 talked with an original issue discount of 98 to 98.5, according to a market source.

The add-on term loan is priced at SOFR plus 375 bps with a 0.5% floor.

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

RBC Capital Markets is the left lead on the deal that will be used to fund a dividend.

Signature Aviation is a London-based aviation services company.

Datasite holds call

Datasite held a lender call at 11 a.m. ET, launching a fungible $400 million add-on term loan B (B2/B-) due December 2027 at talk of SOFR plus 450 bps with a 25 bps step-down at 3.25x net senior leverage, a 0.75% floor, an original issue discount of 98 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.

JPMorgan Chase Bank, Jefferies LLC, Deutsche Bank Securities Inc. and MUFG are leading the deal that will be used to refinance a $364 million HoldCo PIK note, for general corporate purposes and to pay transaction fees, costs and expenses.

With this transaction, the company will shift and increase pricing on its existing roughly $360 million term loan to SOFR plus 450 bps with a 0.75% floor from Libor plus 375 bps with a 0.75% floor.

CapVest is the sponsor.

Datasite is a Minneapolis-based secure content collaboration platform for enterprise and advisory customers.

Fund flows

In other news, actively managed loan fund flows on Monday were negative $62 million and loan ETFs were negative $21 million, according to market sources.

Outflows for loan funds week-to-date total an estimated $294 million, compared to outflows in the prior week of $461 million, sources added.

Loan indices rise

IHS Markit’s iBoxx loan indices were stronger on Monday, with the Leveraged Loan indexes (MiLLi) closing out the day up 0.08% and the Liquid Leveraged Loan indices (LLLi) closing out the day up 0.1%.

Month to date, the MiLLi is up 0.93% and year to date it is up 4.02%, and the LLLi is up 1.14% month to date and up 4.47% year to date.

Average secondary market bids in the U.S. on Monday were 91.57, down 0.01% from the previous day and down 0.34% year to date.

According to the IHS Markit data, some of the top advancers on Monday were Envision Healthcare/Amsurg’s July 2022 first-out covenant-lite term loan at 79, up from 75.5, Pelican Products’ December 2021 covenant-lite term loan at 90, up from 88, and Dawn Acquisition’s (AT&T Colocation) December 2018 covenant-lite term loan at 41.2, up from 40.33.

Some top decliners on Monday were Accuride’s November 2017 term loan B at 80.71, down from 84, Instant Brands’ April 2021 covenant-lite term loan at 36.21, down from 37, and Genesis Care’s March 2020 U.S. covenant-lite term loan B at 27.83, down from 28.42.

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