CentroMotion breaks; First Student changes deadline; Flutter, EmployBridge and more set talk

By Sara Rosenberg

New York, July 7 – CentroMotion’s first-lien term loan made its way into the secondary market on Wednesday after pricing was increased, the original issue discount was widened and the call protection was sweetened.

In more happenings, First Student & First Transit accelerated the commitment deadline for its credit facilities.

Also, Flutter Entertainment plc, Healthcare Royalty Inc. (HCRX Investments HoldCo LP), EmployBridge, Navitas Midstream Midland Basin LLC, AmWINS Group Inc., MoneyGram International Inc. and SVP Worldwide released price talk with launch.

Furthermore, DirecTV Financing LLC, Trader Interactive, Entain plc, American Trailer World Corp. and Asurion LLC joined this week’s primary calendar.

CentroMotion revised, frees

CentroMotion raised pricing on its $545 million first-lien term loan (B3/B) to Libor plus 600 basis points from talk in the range of Libor plus 500 bps to 525 bps, changed the original issue discount to 98 from 99 and modified the call protection to a 102 soft call for 15 months from a 101 soft call for six months, according to a market source.

As before, the term loan has a 0.5% Libor floor, and $125 million of the term loan is delayed-draw.

On Wednesday, the term loan broke for trading, with levels quoted at 98 bid, 99 offered, another source added.

JPMorgan Chase Bank is leading the deal that will be used to fund the acquisition of Carlisle Brake & Friction, a manufacturer of friction materials and mechatronic solutions for off highway brake and transmission products, from Carlisle Cos. Inc., to repay debt and for general corporate purposes.

CentroMotion, a portfolio company of One Rock Capital Partners, is a Waukesha, Wis.-based designer and manufacturer of highly engineered components and systems for the industrial and transportation markets.

First Student accelerated

First Student & First Transit moved up the commitment deadline for its $2.515 billion of senior secured credit facilities (Ba3/B+/BB+) to 5 p.m. ET on Monday from noon ET on July 14, a market source remarked.

The facilities consist of a $500 million revolver, a $1.49 billion seven-year term loan B and a $525 million seven-year term loan C.

Talk on the term loans is Libor plus 325 bps with a 0.5% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months.

Barclays, Morgan Stanley Senior Funding Inc., BMO Capital Markets, TD Securities (USA) LLC, Credit Suisse Securities (USA) LLC, RBC Capital Markets, MUFG, BNP Paribas Securities Corp., Citizens Bank, Deutsche Bank Securities Inc., Stifel and Mizuho are leading the deal.

First Student being acquired

Proceeds from First Student’s term loan B will be used to help fund the buyout of First Student and the buyout of First Transit by EQT Infrastructure from FirstGroup plc for $4.6 billion, and proceeds from the term loan C will be placed in a specified restricted account for purposes of providing cash collateral against letters of credit.

Closing is expected this summer, subject to customary conditions.

First Student is a Cincinnati-based student transportation service provider. First Transit is a Cincinnati-based public transit management operator.

Flutter launches

Flutter Entertainment held its lender call on Wednesday morning and announced price talk on its $1.5 billion equivalent U.S. and euro five-year incremental covenant-lite term loan B, and repricing and extension of its existing $1.438 billion covenant-lite term loan B and existing €507 million covenant-lite term loan B, according to a market source. The currency split of the incremental term loan is still to be determined.

Talk on the U.S. term loan debt is Libor plus 225 bps to 250 bps and talk on the euro term loan debt is Euribor plus 250 bps to 275 bps, the source said. All of the debt (Ba1/BBB-/BBB) is talked with a 0% floor, an original issue discount of 99.5 and 101 soft call protection for six months.

Commitments are due at 10 a.m. ET on July 15.

Deutsche Bank Securities Inc. is the U.S. sole physical bookrunner, and Barclays and JPMorgan Chase Bank are joint physical bookrunners on the euro loan. AIB, BofA Securities Inc., BMO Capital Markets, Bank of Ireland, Goldmans Sachs, Lloyds, Mediobanca, Natwest Markets and Santander are bookrunners.

The incremental loan will be used to redeem the company’s existing unsecured notes and for general corporate purposes. The extension will push out the maturity on the existing term loans by one year to five years.

Flutter Entertainment is a Dublin-based sports betting and gaming operator.

Healthcare Royalty details

Healthcare Royalty launched on its morning call a $750 million seven-year senior secured covenant-lite term loan B (Ba2//BBB-) talked at Libor plus 250 bps to 275 bps with a 0.5% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, a market source said.

Commitments are due at noon ET on July 16, the source added.

The company also plans on getting a new senior secured revolver and issuing senior notes due 2029.

Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Truist, BMO Capital Markets, SVB, Raymond James and Stifel are leading the deal that will be used with the notes and initial public offering proceeds to repurchase Holdings LP class B units as part of a reorganization buyback transaction.

Closing is expected in late July.

Healthcare Royalty is a Stamford, Conn.-based royalty acquisition company focused on the biopharmaceutical industry.

EmployBridge talk

EmployBridge came out with talk of Libor plus 450 bps with a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for six months on its $725 million seven-year term loan B (B3/B-/BB-) that launched with a call in the afternoon, according to a market source.

Commitments are due at 5 p.m. ET on July 15, the source added.

RBC Capital Markets, Credit Suisse Securities (USA) LLC, Barclays, Deutsche Bank Securities Inc., Macquarie Capital (USA) Inc., Mizuho, Goldman Sachs Bank USA and Citizens Bank USA are leading the deal that will be used to help fund the buyout of the company by Apollo Global Management Inc.

Closing is subject to customary conditions, including regulatory approvals.

EmployBridge is an Atlanta-based industrial staffing company.

Navitas proposed terms

Navitas Midstream launched on its morning call its fungible roughly $90 million incremental senior secured term loan B due Dec. 13, 2024 and repricing of its existing roughly $685 million senior secured term loan B due Dec. 13, 2024 at talk of Libor plus 400 bps with a 0.75% Libor floor, a market source remarked.

The incremental term loan will be used to repay a roughly $39 million term loan B-2 priced at Libor plus 450 bps with a 1% Libor floor and retire up to $50 million of series D equity units.

Original issue discount talk on $50 million of the incremental term loan is 99.5. The remaining roughly $40 million of the incremental that will be used to take out the B-2 loan and the term loan B repricing are offered at par, the source added.

The term loan debt is getting 101 soft call protection for six months.

Commitments and consents are due at noon ET on July 14.

Jefferies LLC, Barclays and PNC Capital Markets are leading the deal.

The repricing will take term loan B pricing down from Libor plus 450 bps with a 1% Libor floor.

Navitas is a The Woodlands, Tex.-based natural gas gathering and processing company.

AmWINS guidance

AmWINS announced original issue discount talk of 98.56 to 99 on its fungible $500 million add-on term loan B (B+) due February 2028 that launched with a call in the afternoon, a market source said.

Pricing on the add-on term loan is Libor plus 225 bps with a 0.75% Libor floor, in line with existing term loan B pricing, and the add-on loan has 101 soft call protection for six months.

Commitments and consents for a technical amendment are due at noon ET on July 14, the source added.

Goldman Sachs Bank USA, Barclays, Wells Fargo Securities LLC, Morgan Stanley Senior Funding Inc. and JPMorgan Chase Bank are leading the deal, which will be used with $890 million of other unsecured debt to repay existing senior unsecured notes, to pay related transaction expenses, to make restricted payments of up to $750 million, and for general corporate purposes, including to fund one or more acquisitions. The company plans to determine the amount of restricted payments based on available acquisition opportunities.

AmWINS is a Charlotte, N.C.-based specialty insurance broker.

MoneyGram holds call

MoneyGram hosted a lender call at 1 p.m. ET on Wednesday to launch a $400 million five-year term loan B (B2/B) talked at Libor plus 450 bps to 475 bps with a 0.5% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months, according to a market source.

Commitments are due at noon ET on July 14, the source added.

BofA Securities Inc., Wells Fargo Securities LLC and United Texas Bank are leading the deal that will be used to help repay first-and second-lien term loans.

MoneyGram is a Dallas-based money transfer company.

SVP sets talk

SVP Worldwide launched on its afternoon call its $350 million seven-year term loan B (B3/B) at talk of Libor plus 550 bps to 575 bps with a 0.75% Libor floor and an original issue discount of 98, a market source remarked.

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

Commitments are due at 5 p.m. ET on July 21, the source added.

BofA Securities Inc., BMO Capital Markets, Ares and KKR Capital Markets are leading the deal that will be used to help fund the buyout of the company by Platinum Equity.

Closing is expected in the third quarter.

SVP is a Nashville-based sewing machine company.

DirecTV readies deal

DirecTV set a lender call for 11 a.m. ET on Thursday to launch $3.6 billion of credit facilities (Ba3/BB/BBB-), according to a market source.

The facilities consist of a $500 million revolver and a $3.1 billion six-year covenant-lite first-lien term loan.

Talk on the term loan is Libor plus 525 bps with a 0.75% Libor floor, an original issue discount of 98 and call protection of non-callable for one year, then at par, the source said.

Commitments are due at 5 p.m. ET on July 22, the source added.

Credit Suisse Securities (USA) LLC, BofA Securities Inc., Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., BMO Capital Markets, Goldman Sachs Bank USA, Mizuho, MUFG, UBS Investment Bank, Barclays and Jefferies LLC are leading the deal.

DirecTV joint venture

DirecTV will use the credit facilities to help fund its creation through the spinoff of DirecTV, AT&T TV and U-verse video services from AT&T Inc., and joint venture between TPG Capital and AT&T.

TPG Capital will contribute $1.8 billion in cash to DirecTV in exchange for preferred units senior preferred units with a 10% cash coupon and a 30% interest in the company. AT&T is getting $4.25 billion of junior preferred units with a 6.5% payment-in-kind coupon, an additional distribution preference of $4.2 billion and a 70% economic interest in the company.

Closing is expected in the second half of 2021, subject to customary conditions and regulatory reviews.

DirecTV is a video services company.

Trader Interactive on deck

Trader Interactive scheduled a lender call at 9:30 a.m. ET on Thursday to launch a $410 million term loan B (B3), a market source said.

Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC and Societe Generale are leading the deal that will be to used refinance the company’s existing capital structure alongside a recent minority equity investment from Carsales.

Trader Interactive is a Norfolk, Va.-based provider of digital marketing solutions and services across the commercial truck, RV, powersports and equipment industries.

Entain joins calendar

Entain will hold a lender call at 10 a.m. ET on Thursday to launch a $774 million covenant-lite term loan B due March 2027 and a €300 million covenant-lite term loan B due July 2028, according to a market source.

The term loans have 101 soft call protection for six months.

Commitments are due at 10 a.m. ET on July 16, the source added.

Morgan Stanley Senior Funding Inc. is the sole physical bookrunner on the U.S. term loan. Barclays and Deutsche Bank Securities Inc. are the joint physical bookrunners on the euro term loan. Credit Suisse, Lloyds, Mediobanca, Natwest and Santander are bookrunners.

The loans will be used to refinance an existing $774 million term loan, to enhance liquidity and for ongoing corporate development.

Entain is a London-based online-led sports-betting and gaming group.

American Trailer coming soon

American Trailer set a lender call for 11 a.m. ET on Thursday to launch a fungible $475 million add-on first-lien term loan due March 5, 2028, a market source remarked.

Goldman Sachs Bank USA is the left lead on the deal that will be used to fund a distribution to shareholders.

Bain Capital Private Equity is the sponsor.

The company’s existing term loan is priced at Libor plus 375 bps with a 25 bps step-down upon 3.6x total net leverage and a 0.75% Libor floor.

American Trailer World is Richardson, Tex.-based manufacturer and distributor of professional grade trailers, consumer grade trailers, truck equipment and retail parts.

Asurion plans call

Asurion scheduled a lender call for noon ET on Thursday to launch $3.3 billion of term loans, according to a market source.

The debt is split between a $2.8 billion second-lien term loan B-4 due January 2029 and a $500 million add-on first-lien term loan B-9 due 2027, the source said.

Included in the term loan B-4 is call protection of 102 in year one and 101 in year two, and the term loan B-9 has 101 soft call protection for six months.

BofA Securities Inc. is the left lead on the deal that will be used to fund a dividend.

Asurion is a Nashville-based provider of technology protection services.

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