Alterra, Arcis Golf break; Imperial Dade, Tank, Focus tweak deals; Atlantic moves deadline

By Sara Rosenberg

New York, May 9 – Alterra Mountain Co. tightened the original issue discount on its term loan B, and Arcis Golf LLC finalized the issue price on its funded and delayed-draw term loans at the tight end of guidance, and then both of these deals freed to trade on Tuesday.

In more happenings, Imperial Dade modified the original issue discount talk on its term loan, and Tank Holding Corp. increased the size of its delayed-draw term loan and widened pricing on the delayed-draw as well as on its funded term loan.

Also, Focus Financial added a ticking fee to its term loan B-6 and removed a pricing step-down, and Atlantic Aviation (KKR Apple Bidco LLC) accelerated the commitment deadline for its incremental first-lien term loan.

Additionally, KinderCare Learning Cos. Inc. and Cvent Holding Corp. (Capstone Borrower Inc.) released price talk on their term loans in connection with their lender calls.

Alterra revised, frees

Alterra Mountain adjusted the original issue discount on its $500 million seven-year term loan B (B1/B+) to 99.5 from talk in the range of 99 to 99.25, a market source remarked.

Pricing on the term loan is still SOFR+10 basis points CSA plus 375 bps with a 0% floor, and the debt still has 101 soft call protection for six months.

Commitments were due at noon ET on Tuesday, accelerated from 5 p.m. ET on Tuesday, and the term loan B began trading later in the day, with levels quoted at 99 5/8 bid, par 1/8 offered, another source added.

JPMorgan Chase Bank, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc., US Bank and Wells Fargo Securities LLC are leading the deal that will be used to refinance a $310 million term loan due 2024 and for general corporate purposes, including payments associated with management incentive programs.

Alterra is a Denver-based mountain resort and adventure company.

Arcis updated, trades

Arcis Golf set the original issue discount on its $160 million incremental covenant-lite term loan B due Nov. 24, 2028 and $40 million covenant-lite delayed-draw term loan due Nov. 24, 2028 at 99, the tight end of the 98.75 to 99 talk, a market source said.

Pricing on the term loans is SOFR+CSA plus 425 bps with a 0.5% 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.

The delayed-draw term loan has two draws available until Nov. 30, 2023 and has ticking fees of half the spread starting on day 46 and the full spread starting on day 91.

The debt freed to trade in the afternoon, with levels quoted at 99¼ bid, 99¾ offered, another source added.

Deutsche Bank Securities Inc., JPMorgan Chase Bank and Wells Fargo Securities LLC are leading the $200 million of term loans (B2/B+), which are expected to close in early June.

The incremental term loan will be used to fund the acquisition of Pac Life and the delayed-draw term loan will be used to fund the acquisition of Project Pine.

Arcis is a Dallas-based owner and operator in the U.S. golf market with 30 private and 35 daily fee clubs.

Imperial Dade modified

Imperial Dade changed the original issue discount talk on its $1.5 billion term loan (B3) due 2028 to a range of 98.5 to 99 from a range of 97.5 to 98, according to a market source.

As before, the term loan is priced at SOFR plus 475 bps with a 0.5% floor, and has 101 soft call protection for six months.

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

JPMorgan Chase Bank, Barclays, BMO Capital Markets, Credit Suisse Securities (USA) LLC, Citizens, MUFG, Stifel, TD Securities (USA) LLC and US Bank are leading the deal that will be used to extend a portion of the company’s existing first-lien term loans due in 2026.

Imperial Dade is a Jersey City, N.J.-based distributor of foodservice disposables and janitorial sanitation products.

Tank reworked

Tank Holding raised its delayed-draw term loan to $150 million from $100 million, a market source remarked, adding that the size of the funded non-fungible incremental unitranche term loan was unchanged at $350 million.

Furthermore, pricing on the funded and delayed-draw term loans was lifted to SOFR plus 600 bps from SOFR plus 575 bps, and the debt incurrence test was modified to 6.5x from 7x, the source continued.

The term loan debt still has a 25 bps step-up at more than 6.5x total net leverage, CSA of 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate, a 0.75% floor, an original issue discount of 97 and 101 hard call protection until March 31, 2024.

Recommitments are due at 5 p.m. ET on Wednesday and allocations are expected on Thursday morning.

Antares Capital is leading the deal that will be used to finance several acquisitions, and refinance revolving credit facility draws or replenish balance sheet cash.

Tank Holding, an Olympus Partners portfolio company, is a Lincoln, Neb.-based designer and manufacturer of rigid liquid storage tanks and containers, material handling solutions, and custom products.

Focus Financial tweaked

Focus Financial added a ticking fee of half the spread from days 46 to 90 and the full spread thereafter to its $500 million first-lien term loan B-6 (B1/B+) due June 30, 2028, and eliminated one of two leverage-based pricing step-downs, according to a market source.

The 25 bps pricing step-down that was left intact occurs at 4.25x first-lien net leverage.

The term loan is still talked at SOFR plus 350 bps with a 0.5% floor, an original issue discount of 98.5 and 101 soft call protection for six months.

Commitments continued to be due at 5 p.m. ET on Tuesday, the source added.

RBC Capital Markets, Stone Point Capital Markets, Truist, Citizens, MUFG, Fifth Third, BMO Capital Markets and Capital One are leading the deal that will be used with equity to fund the buyout of the company by Clayton, Dubilier & Rice LLC for $53 in cash per share. The transaction has an enterprise value of over $7 billion.

Funds managed by Stone Point Capital LLC have agreed to retain a portion of their investment in Focus Financial and provide new equity financing as part of the proposed transaction.

Focus Financial, a New York-based partnership of independent, fiduciary wealth management firms, expects the buyout to close next quarter, subject to stockholder and regulatory approvals and other conditions.

Atlantic Aviation accelerated

Atlantic Aviation moved up the commitment deadline for its fungible $750 million incremental first-lien term loan due September 2028 to 5 p.m. ET on Tuesday from 5 p.m. ET on Wednesday, a market source remarked.

Pricing on the incremental term loan is SOFR plus 400 bps with a 0.5% floor, and the debt is talked with an original issue discount of 98.5 to 99.

KKR Capital Markets is the left lead on the deal that will be used to repay a second-lien term loan and fund a shareholder distribution.

Atlantic Aviation is an operator of fixed base operations, providing a full suite of critical services to the private aviation sector.

KinderCare guidance

KinderCare held its lender call on Tuesday morning and announced talk on its $1.4 billion seven-year first-lien term loan (B2/B/BB+) at SOFR+500 bps with a 0.5% floor, an original issue discount of 97 and 101 soft call protection for six months, a market source said.

Commitments are due at noon ET on May 18, the source added.

Barclays, Goldman Sachs Bank USA, Macquarie Capital (USA) Inc., Deutsche Bank Securities Inc., UBS Investment Bank, BofA Securities Inc., Jefferies LLC and KKR Capital Markets are leading the deal that will be used to fully refinance the company’s existing debt and pay related fees and expenses.

KinderCare is a Lake Oswego, Ore.-based provider of private early childhood care and education.

Cvent proposed terms

Cvent launched on its afternoon call its $400 million seven-year first-lien senior secured covenant-lite term loan B at talk of SOFR plus 400 bps with a 25 bps step-down at 3.75x first-lien leverage, a 25 bps step-down at 3.25x first-lien leverage and a 25 bps step-down following an initial public offering, a 0% floor, an original issue discount of 98 to 98.5, and 101 soft call protection for six months, according to a market source.

The company’s $515 million of credit facilities also include a $115 million revolver.

Commitments are due at noon ET on May 18, the source added.

Morgan Stanley Senior Funding Inc., UBS Securities LLC, Citizens Bank and Fifth Third are leading the deal that will be used with $500 million of other secured debt and equity to fund the buyout of the company by Blackstone for $8.50 per share in cash, or about $4.6 billion, to refinance existing credit facilities, and to pay fees and expenses related to the transaction.

Closing is expected mid-year, subject to the satisfaction of customary conditions, including receipt of approval by Cvent’s stockholders and regulatory approvals.

Cvent is a Tysons, Va.-based provider of meetings, events and hospitality technology.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.