TTM, KinderCare free to trade; Solenis changes surface; PG&E shelves refinancing

By Sara Rosenberg

New York, May 23 – TTM Technologies Inc. set the spread on its term loan B at the low end of guidance before breaking for trading on Tuesday, and KinderCare Learning Cos. Inc.’s first-lien term loan hit the secondary market as well.

Meanwhile, in other happenings, Solenis reduced the size of its incremental term loan B and widened the spread and original issue discount, PG&E Corp. withdrew its term loans from market, and UKG Inc. approached lenders with an incremental first-lien term loan.

TTM updated

TTM Technologies firmed on its $350 million seven-year term loan B (Ba1//BB+) at SOFR plus 275 basis points, the low end of the SOFR plus 275 bps to 300 bps talk, according to a market source.

As before, the term loan has a 0% floor, an original issue discount of 99 and 101 soft call protection for six months.

On Tuesday, the term loan freed to trade, with levels quoted at 99 1/8 bid, 99 5/8 offered, another source added.

JPMorgan Chase Bank is leading the deal that will be used to refinance an existing term loan due September 2024.

TTM is a Santa Ana, Calif.-based printed circuit board manufacturer.

KinderCare starts trading

KinderCare’s $1.325 billion seven-year first-lien term loan broke for trading on Tuesday, with levels quoted at 95¼ bid, 95¾ offered, a market source said.

Pricing on the term loan is SOFR plus 500 bps with a 0.5% floor and it was sold at an original issue discount of 95. The debt has 101 soft call protection for six months and no CSA.

During syndication, the term loan was downsized from $1.4 billion, the discount widened from 97, and changes were made to documentation, including to MFN, incremental debt incurrence and definition of EBITDA.

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 help 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.

Solenis reworked

Back in the primary market, Solenis scaled back its non-fungible incremental term loan B (B3/B-) due Nov. 9, 2028 to $500 million from $750 million, lifted pricing to SOFR plus 500 bps from SOFR plus 475 bps, and changed the original issue discount to 95 from talk in the range of 97 to 97.5, according to a market source.

As before, the term loan has a 0.5% floor and 101 soft call protection for six months.

Recommitments are due at 9:30 a.m. ET on Wednesday, the source added.

Goldman Sachs Bank USA, BofA Securities Inc., BMO Capital Markets, HSBC Securities (USA) Inc., Deutsche Bank Securities Inc., Citigroup Global Markets Inc., Macquarie Capital (USA) Inc. and Nomura are leading the deal.

With the term loan downsizing, the company upsized its U.S. senior secured notes offering to $1.825 billion from $1.625 billion and its euro senior secured notes offering to $550 million equivalent from $500 million equivalent.

Solenis buying Diversey

Solenis will use the term loan B, notes and about $2 billion of contributed equity to fund the acquisition of Diversey Holdings Ltd. in a transaction with an enterprise value of about $4.6 billion, to repay existing Diversey net debt, and to pay related fees and expenses.

Under the agreement, Diversey shareholders, other than shareholders affiliated with Bain Capital Private Equity, will receive $8.40 per share in cash. Bain Capital will receive $7.84 per share in cash and will roll over a portion of its shares of Diversey into an affiliate of Solenis in exchange for common and preferred units of such affiliate.

Closing is expected in the second half of this year, subject to customary conditions, including Diversey shareholder and regulatory approvals.

Solenis, a Platinum Equity portfolio company, is a Wilmington, Del.-based manufacturer of specialty chemicals used in water-intensive industries. Diversey is a Fort Mill, S.C.-based provider of hygiene, infection prevention and cleaning solutions.

PG&E pulled

PG&E withdrew its roughly $2.674 billion of term loans from market that were going to be used to refinance a roughly $2.67 billion term loan due June 2025, according to a market source.

The debt was split between a roughly $1.337 billion term loan due June 2026 talked at SOFR plus 300 bps with a 0.5% floor and original issue discount of 99.25, and a roughly $1.337 billion term loan due June 2028 talked at SOFR plus 300 bps with a 0.5% floor and a discount of 98.75 to 99.

Both term loans were talked with 101 soft call protection for six months.

JPMorgan Chase Bank was leading the deal.

PG&E is a San Francisco-based electric and natural gas utility.

UKG holds call

UKG emerged in the morning with plans to hold a lender call at 2 p.m. ET on Tuesday to launch a non-fungible $400 million incremental covenant-lite first-lien term loan (B-) due May 2026 talked at SOFR+10 bps CSA plus 450 bps to 475 bps with a 0.5% floor, an original issue discount of 97.5 and 101 soft call protection for six months, a market source remarked.

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

Nomura is the left lead on the deal that will be used to pay down a revolver draw and further bolster liquidity in anticipation of a potential strategic acquisition that is currently under a letter of intent.

UKG is a provider of human capital management solutions based in Weston, Fla., and Lowell, Mass.

© 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.