Select Medical frees up; RBmedia rises with buyout news; Arconic, Legence changes surface

By Sara Rosenberg

New York, July 26 – Select Medical Corp. modified the issue price on its term loan B and then the debt broke for trading on Wednesday, and RBmedia’s term loan was slightly higher following news that the company is being purchased by H.I.G. Capital.

In more happenings, Arconic Corp. increased the size of its term loan B, lowered the spread, added a step-down and tightened the original issue discount, Legence Holdings LLC upsized its incremental first-lien term loan and changed issue price guidance, and J&J Ventures Gaming Inc. released price talk on its incremental term loan B in connection with its lender call.

Select Medical tweaked, breaks

Select Medical revised the original issue discount on its $2.103 billion term loan B (Ba2/BB-) due March 2027 to 99.5 from talk in the range of 99 to 99.25, a market source said.

The term loan is still priced at SOFR plus 300 basis points with a 25 bps step-down at 4x net leverage, and still has 101 soft call protection for six months.

Recommitments were due at 10 a.m. ET on Wednesday and the term loan began trading during the session, with levels quoted at 99¾ bid, par ¼ offered, another source added.

JPMorgan Chase Bank is the left lead on the deal that will be used to amend and extend an existing $2.1 billion term loan B due 2025.

Select Medical is a Mechanicsburg, Pa.-based operator of critical illness recovery hospitals, rehabilitation hospitals, outpatient rehabilitation clinics and occupational health centers.

RBmedia rises

RBmedia’s term loan moved up to 99 7/8 bid, par 3/8 offered on Wednesday from 99¾ bid, par ¼ offered on Tuesday as the company announced that it is being acquired by H.I.G. Capital from KKR, according to a market source.

Closing is expected this year, subject to customary regulatory approval.

H.I.G. was advised on the transaction by Morgan Stanley & Co. LLC, RBC Capital Markets, and Latham & Watkins. RBmedia was advised by Goldman Sachs and LionTree, and Simpson Thacher & Bartlett LLP.

RBmedia is a Landover, Md.-based digital audiobook and related spoken-word content producer.

Arconic reworked

Back in the primary market, Arconic raised its seven-year term loan B to $1.425 billion in the afternoon from a revised amount in the morning of $1.225 billion and an initial size of $1 billion, trimmed pricing to SOFR plus 450 bps from SOFR plus 475 bps, and added a 25 bps step-down when net total leverage is below 2.75x, a market source remarked.

Also, the original issue discount talk on the term loan was changed in the morning to a range of 98 to 98.5 from a range of 97 to 97.5, and then tightened in the afternoon to 99, the source continued.

As before, the term loan has a 0% floor, 101 soft call protection for six months, and ticking fees of half the margin on days 46 through 90 and the full margin plus three-month SOFR thereafter.

Recommitments were due at 5 p.m. ET on Wednesday, accelerated from recently revised timing of noon ET on Thursday and an original deadline of 5 p.m. ET on Aug. 1, the source added.

The company’s now $2.625 billion of senior secured credit facilities also include a $1.2 billion five-year asset-based revolver.

Arconic lead banks

JPMorgan Chase Bank, Wells Fargo Securities LLC, Apollo, BMO Capital Markets, Mizuho, TD Securities (USA) LLC, Citigroup Global Markets Inc., Citizens, Fifth Third, Standard Chartered and Truist are leading Arconic’s credit facilities.

The new bank debt will be used with $700 million of senior secured notes, scaled back from $900 million, $500 million of senior unsecured notes, downsized from $725 million, $2.304 billion of equity and $175 million of balance sheet cash to fund the buyout of the company by Apollo Global Management Inc. for $30.00 per share in cash in a transaction with an enterprise value of about $5.2 billion.

Closing is expected in the third quarter, subject to customary conditions.

Arconic is a Pittsburgh-based provider of aluminum sheet, plate and extrusions as well as architectural products.

Legence revised

Legence Holdings lifted its fungible incremental first-lien term loan due Dec. 16, 2027 to $155 million from $125 million and modified the original issue discount talk to a range of 99.03 to 99.25 from just 99.03, according to a market source.

Like the existing term loan, pricing on the incremental term loan is SOFR+10 bps CSA plus 375 bps with a 0.75% floor.

Commitments are due at 10:30 a.m. ET on Thursday, accelerated from 5 p.m. ET on Thursday, the source added.

Jefferies LLC, Societe Generale, BMO Capital Markets, MUFG and Blackstone are leading the deal that will be used for general corporate purposes, including to fund future acquisitions.

Legence, formerly Therma Holdings LLC and a Blackstone portfolio company, is a San Jose, Calif.-based specialty mechanical, electrical and plumbing services provider focused on serving mission-critical facilities with a high cost of failure.

J&J Ventures guidance

J&J Ventures Gaming held its lender call on Wednesday morning and announced price talk on its non-fungible $375 million incremental covenant-lite term loan B (B2/B) due April 26, 2028 at SOFR+CSA plus 400 bps with a 0.75% floor and an original issue discount of 97 to 97.5, according to a market source.

The CSA is ARRC standard of 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate, and the incremental term loan has 101 soft call protection for six months.

Commitments are due at 5 p.m. ET on Aug. 3.

Deutsche Bank Securities Inc., Goldman Sachs Bank USA and SMBC are leading the deal that will be used to fund the acquisition of Golden Entertainment’s distributed gaming assets in Nevada and Montana.

J&J Ventures, an Oaktree Capital Management LP portfolio company, is an Effingham, Ill.-based video gaming terminal operator.

Fund flows

In other news, actively managed loan fund flows on Tuesday were negative $30 million and loan ETFs were positive $4 million, market sources said.

Flows for leveraged loan funds are balanced/flat over the past eight weeks after $57 billion of outflows or 40% of AUM since May 2022, sources added.

© 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.