Qlik, Priority Technology, Asplundh, NorthStar break; Allied, Presidio, Cetera revised

By Sara Rosenberg

New York, May 8 – Qlik (Project Alpha Intermediate Holding Inc.) lowered pricing on its first-lien term loan B, and Priority Technology Holdings Inc. tightened the original issue discount on its term loan B, and then these deals freed to trade on Wednesday.

Other deals to make their way into the secondary market during the session included Asplundh Tree Expert LLC and NorthStar Group Services Inc.

In more happenings, Allied Universal Holdco LLC upsized its incremental first-lien term loan and modified the issue price, and Presidio Inc. (Fortress Intermediate 3 Inc.) set the spread on it first-lien term loan B at the low end of guidance, revised the original issue discount and made some changes to documentation.

Also, Cetera Financial Group Inc. (Aretec Group Inc.) tightened the issue price for new commitments for its first-lien term loan, Whatabrands LLC (Whataburger) moved up the commitment deadline for its first-lien term loan B, and BroadStreet Partners Inc. accelerated the signature page deadline for its term loan B-4 but left the new money commitment deadline unchanged.

Furthermore, Johnstone Supply LLC, LifePoint Health Inc., Adeia Inc., Grosvenor Capital Management Holdings LLLP, MeridianLink Inc. and Baldwin Insurance Group Holdings LLC released price talk with launch, and IPS Corp. (CP Iris Holdco) joined this week’s new issue calendar.

Qlik flexed, frees

Qlik trimmed pricing on its $2.4 billion senior secured covenant-lite first-lien term loan B due October 2030 (B2/B) to SOFR plus 375 basis points from talk in the range of SOFR plus 400 bps to 425 bps, according to a market source.

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

Recommitments were due at 11 a.m. ET on Wednesday, and the term loan broke for trading in the afternoon, with levels quoted at par ¼ bid, par ¾ offered, a trader added.

Morgan Stanley Senior Funding Inc., BMO Capital Markets, Goldman Sachs Bank USA, HSBC Securities (USA) Inc., BofA Securities Inc., Citigroup Global Markets Inc., Mizuho and Bank of Nova Scotia are leading the deal that will be used to reprice an existing term loan B down from SOFR plus 475 bps with a 0.5% floor.

Closing is expected in mid-May.

Qlik is a King of Prussia, Pa.-based data analytics company.

Priority tightened, trades

Priority Technology modified the original issue discount on its $835 million seven-year term loan B (B2/B-) to 99.5 from 99, a market source remarked.

Pricing on the term loan remained at SOFR plus 475 bps with a 0.5% floor, and the debt has 101 soft call protection for six months.

Earlier in syndication, the term loan was upsized from $790 million.

On Wednesday, the term loan made its way into the secondary market, with levels quoted at par bid, par ½ offered, the source added.

Truist Securities is leading the deal that will be used to refinance an existing term loan and to repay some preferred stock. The amount of the stock repayment was increased with the recent term loan upsizing.

Priority Technology is an Alpharetta, Ga.-based payments technology company.

Asplundh hits secondary

Asplundh Tree Expert’s $1 billion seven-year covenant-lite incremental term loan B (Ba1/BBB-) began trading too, with levels quoted at par bid, par 3/8 offered, according to a market source.

Pricing on the term loan is SOFR plus 175 bps with a 0% floor, and it was sold at an original issue discount of 99.75. The debt has 101 soft call protection for six months.

During syndication, pricing on the term loan firmed at the low end of the SOFR plus 175 bps to 200 bps talk and the discount was tightened from 99.5.

Wells Fargo Securities LLC, BofA Securities Inc., PNC, Citizens and JPMorgan Chase Bank are leading the deal that will be used to support an acquisition, to pay down revolver borrowings, to add cash to the balance sheet, to fund potential acquisitions and for general corporate purposes.

Asplundh is a Willow Grove, Pa.-based provider of vegetation management and other services to utilities.

NorthStar starts trading

NorthStar Group’s $750 million six-year first-lien term loan (B2/B+) freed up as well, with levels quoted at par bid, par ¾ offered, a market source said.

Pricing on the term loan is SOFR plus 475 bps with a 0.5% floor, and it was sold at an original issue discount of 99.5. The loan has 101 soft call protection for six months.

During syndication, the term loan was upsized from $740 million, pricing was set at the low end of the SOFR plus 475 bps to 500 bps talk and the discount was changed from 99.

Jefferies LLC is leading the deal that will be used to refinance an existing ABL revolver and first-lien term loan, and, due to the recent upsizing, to add cash to the balance sheet.

NorthStar is a New York-based provider of diversified infrastructure and environmental services.

Allied reworked

Allied Universal increased in the afternoon its fungible incremental senior secured covenant-lite first-lien term loan due May 15, 2028 to $1.1 billion from $622 million, according to a market source.

Also, the original issue discount talk on term loan was revised in the morning to a range of 99.75 to par from 99.5, and then firmed at par in the afternoon, the source said.

Pricing on the incremental term loan is SOFR+10 bps CSA plus 375 bps with a 0.5% floor, in line with existing term loan pricing.

Recommitments were due at 3:15 p.m. ET on Wednesday, the source added.

Pro forma for the transaction, the term loan will total $5.15 billion.

Allied refinancing

Allied Universal’s term loan will be used with $500 million of senior secured notes and cash on hand to fully repay an incremental first-lien term loan due 2028 and partially repay senior secured notes due 2026. The loan upsizing will result in a larger repayment of the notes and will also be used to pay down revolver borrowings.

Morgan Stanley Senior Funding Inc., UBS Investment Bank, Citigroup Global Markets Inc., Mizuho, HSBC Securities (USA) Inc., Deutsche Bank Securities Inc., BNP Paribas Securities Corp., MUFG, Societe Generale, Wells Fargo Securities LLC, PNC, US Bank, ING, Goldman Sachs Bank USA, Truist Securities, BMO Capital Markets, KeyBanc Capital Markets and First Citizens are leading the term loan. Credit Suisse is the agent.

Closing is expected during the week of May 20.

Allied Universal is a Santa Ana, Calif.-based provider of security services.

Presidio revised

Presidio firmed pricing on its $2.103 billion seven-year first-lien term loan B (B2/B) at SOFR plus 375 bps, the low end of the SOFR plus 375 bps to 400 bps talk, and adjusted the original issue discount to 99.5 from 99, a market source remarked.

Also, some changes were made to documentation, including to MFN and some baskets, and J. Crew, Serta and Chewy protections were added.

The term loan still has a 25 bps pricing step-down at 5x first-lien net leverage and a 25 bps step-down upon an initial public offering, a 0% floor, and 101 soft call protection for six months.

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

Presidio lead banks

JPMorgan Chase Bank, Citigroup Global Markets Inc., BNP Paribas Securities Corp., Deutsche Bank Securities Inc., RBC Capital Markets, UBS Investment Bank, Wells Fargo Securities LLC, Goldman Sachs Bank USA, Santander Bank, Credit Agricole, MUFG, Natixis, PNC Bank, SMBC, Regions Bank, Bank of Nova Scotia, Societe Generale, SPCFC, TD Securities (USA) LLC and Truist Securities are leading Presidio’s term loan B.

The new loan will be used with $500 million of senior secured notes to fund the buyout of the company by Clayton Dubilier & Rice from BC Partners. BC Partners will retain minority ownership interest in Presidio.

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

Presidio is a New York-based technology services and solutions provider.

Cetera tweaked

Cetera Financial finalized the issue price on its roughly $2.525 billion first-lien term loan due August 2030 at par, compared to talk at launch of an original issue discount of 99.5 for new commitments and a par issue price for rolled commitments, according to a market source.

Of the total term loan amount, $100 million is a fungible incremental piece for general corporate purposes and to cover fees and expenses, and roughly $2.425 billion is a repricing of an existing first-lien term loan down from SOFR+CSA plus 450 bps with a 0% floor. Current CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

Pricing on the term loan remained at SOFR plus 400 bps with a 0% floor, and the debt still has 101 soft call protection for six months.

Recommitments were due at 4 p.m. ET on Wednesday, the source added.

UBS Investment Bank is the left lead on the deal.

Cetera, a Genstar portfolio company, is a San Diego-based provider of broker-dealer and advisory services through a network of independently managed firms.

Whatabrands accelerated

Whatabrands revised the commitments/consents deadline for its $2,727,382,650 covenant-lite first-lien term loan B due Aug. 3, 2028 to 10 a.m. ET on Thursday from 3 p.m. ET on Thursday, a market source remarked.

The term loan is talked at SOFR plus 275 bps to 300 bps with no CSA, a 0.5% floor and 101 soft call protection for six months. Of the total term loan B amount, $140 million is a fungible incremental piece talked with an original issue discount of 99.5 to 99.75, and $2,587,382,650 is a repricing of the company’s existing term loan B talked with a par issue price.

Morgan Stanley Senior Funding Inc., JPMorgan Chase Bank, BofA Securities Inc., UBS Investment Bank and Citigroup Global Markets are leading the deal.

The incremental piece will be used to fund the redemption of remaining preferred equity on the company’s balance sheet, and the repricing will take the existing term loan B down from SOFR+CSA plus 325 bps if total net first-lien leverage is more than 5x and SOFR+CSA plus 300 bps if total net first-lien leverage is 5x or lower, with a 0.5% floor. Current CSA is 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

Whatabrands is a San Antonio-based restaurant company.

BroadStreet updated

BroadStreet Partners moved up the signature page commitment deadline for its $3.3 billion seven-year term loan B-4 (B2/B) to 5 p.m. ET on Thursday from 11 a.m. ET on Friday; however, the deadline for new money orders remained at 11 a.m. ET on Friday, with allocations expected shortly thereafter, according to a market source.

The term loan is talked at SOFR plus 325 bps with a 0% floor, an original issue discount of 99.5 to 99.75 and 101 soft call protection for six months.

RBC Capital Markets is the left lead on the deal that will be used to refinance a roughly $1.1 billion term loan B-1, a roughly $400 million term loan B-2, a roughly $1.3 billion term loan B-3 and a roughly $500 million term loan A, and to repay revolving credit facility borrowings.

Ontario Teachers’ Pension Plan, Century Equity and Penfund are the sponsors.

BroadStreet is a Columbus, Ohio-based insurance broker.

Johnstone holds call

Johnstone Supply emerged in the morning with plans to hold a lender call at 11:30 a.m. ET on Wednesday to launch a $1 billion seven-year covenant-lite term loan B (B2/B) talked at SOFR plus 350 bps to 375 bps with a 0% floor, an original issue discount of 99.5 and 101 soft call protection for six months, a market source said.

Commitments are due at 5 p.m. ET on May 16, the source added.

Wells Fargo Securities LLC is the left lead on the deal that will be used to repay the company’s existing credit facilities, for working capital and other general corporate purposes, including to finance permitted acquisitions and other permitted investments and restricted payments and for any other purpose not prohibited under the definitive documentation, and to pay related fees, costs and expenses.

Redwood Holdings is the sponsor.

Johnstone Supply is a Portland, Ore.-based wholesale distributor of heating, ventilation, air conditioning, and refrigeration equipment, parts, and supplies.

LifePoint details emerge

LifePoint Health held its lender call at 11 a.m. ET and, a few hours before the call began, it was revealed that the company is seeking a $400 million seven-year senior secured term loan B talked at SOFR plus 425 bps with a 0% floor, an original issue discount of 99.5 and 101 soft call protection for six months, according to a market source.

Commitments are due at noon ET on Thursday, after being accelerated in the afternoon from an original commitment deadline of 10:30 a.m. ET on Friday, the source added.

Citigroup Global Markets Inc. is leading the deal that will be used to repay a portion of the company’s 2026 unsecured notes.

Closing is expected in late May.

LifePoint is a Brentwood, Tenn.-based operator of general acute care hospitals, community hospitals, regional health systems, physician practices, outpatient centers and post-acute care facilities.

Adeia repricing

Adeia surfaced in the morning with plans to hold a lender call at 11 a.m. ET to launch a $561 million first-lien term loan B due June 8, 2028 talked at SOFR plus 300 bps with no CSA, a 0% floor, a par issue price and 101 soft call protection for six months, a market source remarked.

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

BofA Securities Inc. is the left lead on the deal that will be used to reprice an existing $561 million term loan B due June 8, 2028 down from SOFR+ARRC CSA plus 350 bps with a 0% floor.

Adeia, formerly known as Xperi Holding Corp., is a San Jose, Calif.-based R&D and intellectual property licensing company that accelerates the adoption of innovative technologies in the media and semiconductor industries.

Grosvenor guidance

Grosvenor Capital Management held its lender call in the morning, launching its $438 million senior secured covenant-lite first-lien term loan B due February 2030 (Ba2/BB+) at talk of SOFR plus 250 bps with a 0.5% floor, an original issue discount of 99.5 to 99.75 and 101 soft call protection for six months, according to a market source.

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

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to refinance an existing term loan B due 2028 and for general corporate purposes.

Through this transaction, the company is raising $50 million of incremental term loan B debt.

Grosvenor Capital is a Chicago-based independent alternative asset management firm.

MeridianLink launches

MeridianLink launched during the session a $426 million first-lien term loan due Nov. 10, 2028 talked at SOFR plus 275 bps with no CSA, a 0% floor, a par issue price and 101 soft call protection for six months, a market source said.

BofA Securities Inc. is the left lead on the deal that will be used to reprice an existing $426 million first-lien term loan due Nov. 10, 2028 down from SOFR+ARRC CSA plus 300 bps with a 0.5% floor.

MeridianLink is a Costa Mesa, Calif.-based provider of cloud-based software solutions for regional and community financial institutions.

Baldwin refinancing

Baldwin Insurance Group held a lender call at 1 p.m. ET to launch an $840 million senior secured term loan B due 2031 (B2/B-) talked at SOFR plus 325 bps to 350 bps with a 0% floor, an original issue discount of 99.5 and 101 soft call protection for six months, a market source remarked.

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

The company also plans on getting a $600 million revolver due 2029 (B2/B-).

JPMorgan Chase Bank is the left lead on the deal that will be used to $500 million of senior secured notes to refinance the company’s existing senior secured term loan facility due October 2027 and revolver due April 2027.

Currently, the company has about $996.2 million of term loan borrowings outstanding and about $351 million of revolver borrowings outstanding.

Baldwin Insurance, formerly known as Baldwin Risk Partners LLC, is a Tampa, Fla.-based insurance distribution firm.

Creative Planning step-downs

Creative Planning disclosed that its in market $1.35 billion seven-year term loan B (Ba2/BB) includes a 25 bps pricing step-down at 1.75x total net leverage and a 25 bps step-down upon a qualified initial public offering, according to a market source.

As previously reported, the term loan, which launched with a call on Monday, is talked at SOFR plus 225 bps to 250 bps with a 0% floor, an original issue discount of 99.5 and 101 soft call protection for six months.

Commitments are due at 5 p.m. ET on Monday.

Goldman Sachs Bank USA, Citizens, BMO Capital Markets, Capital One, MUFG, Wells Fargo Securities LLC, Mizuho and US Bank are leading the deal that will be used to refinance the company’s existing term loans A-1, A-2 and A-3.

Creative Planning is a registered investment adviser that provides a broad suite of wealth management services.

American Axle deadline

American Axle & Manufacturing Inc. is asking for commitments for its $648 million first-lien term loan B due December 2029 by 5 p.m. ET on Monday, a market source said.

The term loan, which launched with a call on Tuesday morning, is talked at SOFR plus 300 bps with a 0% floor, a par issue price and 101 soft call protection for six months.

JPMorgan Chase Bank is leading the deal that will be used to reprice an existing term loan B down from SOFR+10 bps CSA plus 350 bps with a 0.5% floor.

American Axle is a Detroit-based producer of driveline and drivetrain systems and related components and chassis modules for the automotive industry.

Organon timing

Organon & Co. is seeking commitments for its $1.55 billion term loan B (Ba1/BB) by 10 a.m. ET on Tuesday, a market source remarked.

As previously reported, the term loan, which launched with a call on Tuesday afternoon, is talked at SOFR plus 250 bps to 275 bps with a 0.5% floor and an original issue discount of 99.5.

Included in the term loan is 101 soft call protection for six months.

JPMorgan Chase Bank is the left lead on the deal that will be used with $500 million of senior secured notes and $500 million of senior notes to refinance an existing term loan B due 2028 and to pay related fees and expenses.

Organon is a Jersey City, N.J.-based health care company.

IPS joins calendar

IPS set a lender call for 2 p.m. ET on Thursday to launch a fungible $175 million incremental first-lien term loan due Oct. 1, 2028 talked with an original issue discount of 99.5, according to a market source.

Pricing on the incremental term loan is SOFR+10 bps CSA plus 350 bps with a 25 bps step-up at 4.25x first-lien net leverage, which is expected to occur next quarter pro forma for this transaction, and a 0.5% floor, the source continued.

The incremental and the existing first-lien term loan are getting 101 soft call protection for six months.

Commitments are due at noon ET on May 15, the source added.

Jefferies LLC is the left lead on the deal that will be used to refinance a portion of the company’s existing second-lien term loan, to fund an acquisition under a letter-of-intent and to pay down revolver borrowings.

IPS is a Compton, Calif.-based supplier of high-performance mission-critical contractor solutions, serving water & flow management applications primarily for new residential construction and repair and remodel industries.

© 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.