Parts Authority, Advantage Sales, MHI Holdings, Hayward Industries deal updates surface

By Sara Rosenberg

New York, Oct. 23 – In the primary market on Friday, Parts Authority (PAI Holdco Inc.) lowered the spread on its first-lien term loan and tightened the original issue discount, and Advantage Sales & Marketing Inc. reduced the size of its first-lien term loan, lifted pricing, widened the issue price and extended the call protection.

Also, MHI Holdings LLC firmed the original issue discount on its incremental first-lien term loan B at the wide end of guidance, and Hayward Industries Inc. set the spread on its incremental first-lien term loan at the low side of talk and finalized the issue price at the midpoint of guidance.

In addition, ION Analytics, Avantor, Insurity Inc. (Huskies Parent Inc.) and Precision Medicine Group LLC disclosed price talk with launch.

Parts Authority revised

Parts Authority trimmed pricing on its $600 million seven-year senior secured first-lien term loan (B1/B) to Libor plus 400 basis points from Libor plus 425 bps and changed the original issue discount to 99.25 from talk in the range of 98.5 to 99, according to a market source.

As before, the first-lien term loan has a 25 bps leverage-based step-down and a 25 bps initial public offering-based step-down, a 1% Libor floor and 101 soft call protection for six months.

Recommitments were due at noon ET on Friday and allocations are expected on Monday, the source added.

The company’s $925 million of credit facilities also include a $125 million five-year ABL revolver and a $200 million privately placed eight-year senior secured second-lien term loan.

Jefferies LLC and Golub are leading the deal that will be used to help fund the buyout of the company by Kohlberg & Co. LLC from The Jordan Co.

Parts Authority is a Lake Success, N.Y.-based automotive aftermarket replacement parts distribution platform serving the do-it-for-me and do-it-yourself e-commerce segments of the automotive aftermarket.

Advantage Sales reworked

Advantage Sales & Marketing scaled back its seven-year covenant-lite first-lien term loan to $1.325 billion from $1.6 billion, raised pricing to Libor plus 525 bps from revised talk of Libor plus 500 bps and initial talk of Libor plus 450 bps, firmed the original issue discount at 98, the wide end of revised talk of 98 to 98.5 and wide of initial talk of 98.5, and extended the 101 soft call protection to one year from six months, a market source remarked.

The term loan still has a 0.75% Libor floor.

The company’s now $1.725 billion of credit facilities also include a $400 million five-year asset-based revolver.

BofA Securities Inc., Morgan Stanley Senior Funding Inc., Deutsche Bank Securities Inc. and Apollo are leading the deal.

Advantage Sales refinancing

Proceeds from Advantage Sales’ term loan, $775 million of bonds, upsized from $500 million, and $1.154 billion in cash and equity will be used to refinance an accounts receivable securitization facility, $2.455 billion of first-lien term loan B1/B2 debt and a $760 million second-lien term loan.

The refinancing is being done in connection with the acquisition of Advantage Sales’ parent company, Advantage Solutions Inc., by Conyers Park II Acquisition Corp.

Closing is expected as early as late October, subject to approval by Conyers Park’s stockholders, the expiration of the HSR Act waiting period, the debt financing and other customary conditions.

Advantage Sales is an Irvine, Calif.-based provider of outsourced sales and marketing services.

MHI firms OID

MHI Holdings firmed the original issue discount on its fungible $215 million incremental first-lien term loan B (B) at 98.79, the wide end of the 98.79 to 99 talk, a market source said.

The incremental term loan is priced at Libor plus 500 bps with a 0% Libor floor and has 101 soft call protection for six months.

BofA Securities Inc., BNP Paribas Securities Corp., Citizens Bank and Mizuho are leading the deal that will be used to fund a dividend.

MHI is a provider of critical ship repair services and commercial- and defense-related fabrication services.

Hayward updated

Hayward Industries set pricing on its $150 million incremental first-lien term loan (B3/B) at Libor plus 375 bps, the low end of the Libor plus 375 bps to 400 bps talk, and firmed the original issue discount at 98.25, the midpoint of the 98 to 98.5 talk, according to a market source.

As before, the term loan has a 0.75% Libor floor and 101 soft call protection for six months.

BofA Securities, Inc., Nomura and Jefferies LLC are leading the deal that will be used with cash on hand to fund a dividend.

Hayward is a Berkeley Heights, N.J.-based manufacturer of residential and commercial pool and spa equipment as well as industrial flow control products.

ION reveals guidance

ION Analytics held its lender call on Friday morning and announced price talk on its $1.85 billion equivalent U.S. and euro seven-year covenant-lite term loan (B2), according to market sources.

Talk on the U.S. tranche is Libor plus 425 bps to 450 bps with a 0.5% Libor floor and an original issue discount of 99, and talk on the euro tranche is talked at Euribor plus 425 bps to 450 bps with a 0% floor and a discount of 98.5, sources said. Both tranches have 101 soft call protection for six months.

The split of U.S. and euro pieces is still to be determined.

Commitments are due at 10 a.m. ET on Nov. 2, sources added.

UBS Investment Bank and Credit Suisse are leading the deal, with UBS the left lead on the U.S. loan and Credit Suisse the left lead on the euro loan. UBS is the agent.

Proceeds will be used to refinance existing debt.

London-based ION Analytics was formed through the combination of Dealogic and Acuris, two providers of capital markets data, content and intelligence.

Avantor sets talk

Avantor came out with talk of Libor plus 250 bps with a 25 bps step-down upon a Moody’s upgrade to Ba3 corporate, a 1% Libor floor and an original issue discount of 99 to 99.5 on its $1.35 billion seven-year term loan B (Ba2/BB-) that launched with a call in the morning, a market source remarked.

Commitments are due at noon ET on Oct. 30, the source added.

Goldman Sachs Bank USA and Citigroup Global Markets Inc. are leading the deal, which will be used with $650 million equivalent of other euro secured debt to refinance the company’s existing U.S. and euro secured notes.

Avantor is a Radnor, Pa.-based provider of mission critical products and services to customers in the life sciences, advanced technologies and applied materials industries.

Insurity launches

Insurity held its call in the afternoon and launched its fungible $115 million incremental first-lien term loan due July 2026 with original issue discount talk of 98.79 to 99, according to a market source.

Like the existing term loan, the incremental term loan is priced at Libor plus 400 bps with a 0% Libor floor.

The incremental term loan has 101 soft call protection for six months.

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

Jefferies LLC is leading the deal that will be used to fund acquisitions.

The pro forma first-lien term loan tranche size will be $574 million.

Insurity is a Hartford, Conn.-based software platform for the property and casualty insurance industry.

Precision proposed terms

Precision Medicine Group launched a $650 million first-lien term loan talked at Libor plus 350 bps to 375 bps with a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, a market source said.

Of the total term loan amount, $550 million will be funded and $100 million is delayed-draw.

Commitments are due at 5 p.m. ET on Oct. 29, the source added.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to help fund the buyout of the company by Blackstone Group.

Precision Medicine is a specialized healthcare services company that provides product development and commercialization support for pharmaceutical and life sciences businesses.

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