LOANS LEVERAGED LOANS4HEûSEVEN
YEARûlRST
LIENû4,"ûISûNOWûATû
225bp over Libor and a 99.5 OID from 250bp
over Libor and an OID range of 99-99.5.
4HEûLOANûALSOûCOMESûWITHûAûûmOORûANDû
101 soft call protection for six months,
along with amortisation set at an annual
rate of 1.
Covenants include a maximum net
leverage ratio of 5.0 times, stepping down to
4.5 times after December 31, 2022.
Commitments are due Wednesday.
Wells Fargo is lead left on the transaction.
#ORPORATEûRATINGSûAREû"A""ûANDûTHEûlRST
lien loan is rated Ba1/BBB-.
Proceeds will repay a revolving credit
facility and existing term loan indebtedness,
redeem US$1.25bn in bond debt due in
2022, pay related fees and expenses and go
towards general corporate purposes.
ADVISOR GROUP has priced a US$1.025bn
term loan B that will back its acquisition by
Reverence Capital Partners.
The seven-year TLB cleared at 500bp over
,IBOR ûWITHûAûûmOOR ûû/)$ûANDûûSOFT
call protection for six months.
Guidance was set at a range of 425bp-
450bp over Libor and the TLB was decreased
from US$1.2bn.
The company raised US$200m through a
term loan A at 400bp over Libor.
UBS was lead left on the transaction.
Corporate ratings are B2/B+.
Reverence Capital Partners, a private
investor, agreed in May to acquire Advisor
Group, an independent wealth management
platform that supports more than 7,000
lNANCIALûADVISERS
Reverence Capital Partners will pick up
75% of Advisor Group, while former owners
Lightyear Capital and PSP Investments will
maintain up to 25% in the company.
0RIVATEûEQUITYûlRMû,IGHTYEARûANDû
Canadian pension fund PSP purchased
Advisor Group in March 2016.
Aerosol products maker PLZ AEROSCIENCE
sealed a US$644m term loan B in line with
launch terms.
The seven-year covenant-lite loan was
quoted at 99.75-100.25 after breaking into
the secondary market.
The term loan sold at a 99.5 OID and has
101 soft call protection for six months.
Pricing cleared at 350bp over Libor with a
ûmOORû4HEûMARGINûSTEPSûDOWNûBYûBPû
when the company reduces total net
leverage to below 3.75 times.
4HEûCOMPANYûALSOûINKEDûAûlVE
YEARû
US$75m revolving credit facility.
Antares Capital led the transaction. Bank of
Montreal was a joint lead arranger.
0ROCEEDSûFROMûTHEûlNANCINGûWILLûBEûUSEDû
TOûRElNANCEûEXISTINGûDEBTûFACILITIES
PLZ is a portfolio company of Pritzker
Group Private Capital, which bought the
company in July 2015.
GLASS MOUNTAIN PULLS LOANMidstream oil and gas company GLASS
MOUNTAIN PIPELINE has called off a proposed
US$129m incremental Term Loan B and
opted for an equity contribution from its
sponsor BlackRock Global Energy & Power
)NFRASTRUCTUREû&UND
Glass Mountain’s change of heart comes
at a time when investors are asking higher-
leveraged, Single B rated credits to provide
greater lender protections and higher
spreads over Libor in order to buy into a
deal.
“Market conditions are not friendly for
some borrowers in the Single B territory,”
one source said.
The now B– rated borrower, despite being
a known credit in the market with a strong
sponsor, was expected to maintain a high
9.0 times debt to Ebitda ratio through 2019
after the issuance of this incremental
facility, according to S&P.
Now, with the incremental loan off the
table, debt to Ebitda is expected to remain
slightly above 6.25 times in 2019.
Glass Mountain’s incremental TLB was
OFFEREDûATûBPûOVERû,IBOR ûWITHûAûûmOOR û
98 OID and 101 soft-call protection for 12
months. There was also a 25bp consent fee.
If successful, the incremental facility would
have been added to the roughly US$296m
outstanding on the company’s existing TLB,
which matures in December 2024.
Pricing on the existing tranche would
HAVEûALSOûmEXEDûUPûFROMûBPûTOûMATCHû
with the incremental TLB.
S&P on August 1 upgraded Glass
Mountain to B from B– after the transaction
was called off due to the company’s lower
forecast leverage. The ratings agency
downgraded Glass Mountain to B– from B
last month when the company proposed an
incremental TLB.
The sponsor’s equity contribution will
fund the southern extension of Glass
Mountain’s crude oil pipeline system.
Barclays was lead-left on the proposed
incremental facility and Morgan Stanley was
on the right.
Glass Mountain in December 2017 raised
a US$325m credit facility to back its buyout
by BlackRock.ARISGLOBAL REVISES TERMSCloud-based software developer ARISGLOBAL
revised the terms of a US$240m loan that
will fund Nordic Capital’s acquisition of the
company.
The seven-year Term Loan B was priced at
500bp over Libor from guidance of 450bp–
475bp, while the soft-call protection was
amended to 101 for 12 months from 101 for
six months.4HEû/)$ûOFûûANDûTHEûûmOORûWEREû
unchanged.
Credit Suisse led the transaction.
Corporate ratings are B3/B– and the seven-
YEARûlRST
LIENûTERMûLOANûISûRATEDû""n
4HEûCOMPANYûANDûlRST
LIENûRATINGûOFû"nû
FROMû30ûREmECTû!RIS'LOBALSûHIGHûLEVERAGEû
in excess of 8.0 times, the ratings agency
said.
ArisGlobal is projected to generate
hMINIMALûFREEûCASHmOWv ûACCORDINGûTOû30 û
while the company’s “small scale” is
hampered by much larger competing
COMPANIESûWITHûGREATERûlNANCIALûRESOURCES
ArisGlobal comes with a stable outlook,
however, and the expectation that the
company will increase its revenues by about
20% per year for the next 24 months and
maintain Ebitda margins of approximately
30%–35%, S&P added.
Portable sanitation provider UNITED SITE
SERVICESûWASûSCHEDULEDûTOûCLOSEûONû&RIDAYûAû
lNANCINGûTOûFUNDûACQUISITIONS
The company was seeking a US$150m
lRST
LIENûINCREMENTALûTERMûLOANûTHATûISû
fungible with the existing loan that matures
in August 2024.
The covenant-lite loan will pay lenders
375bp over Libor with a 99 OID. Soft call
protection of 101 will be reset for six
months.
Bank of America Merrill Lynch was arranging
THEûlNANCING
The loan will be used to fund acquisitions
under letters of intent as well as potential
future acquisitions and incremental liquidity.
Power generator CALPINEûOUTLINEDûlNALû
TERMSûOFûAû53MûlRST
LIENû4ERMû,OANû"û
THATûWILLûRElNANCEûANûEXISTINGûFACILITY
The seven-year TLB was priced at 250bp
OVERû,IBOR ûWITHûAûûmOOR ûû/)$ûANDûû
soft-call protection for six months.
The OID was tightened from 99.
Credit Suisse led the B10 loan.
#ORPORATEûRATINGSûAREû"A" ûANDûTHEûlRST
lien loan is rated Ba2/BB.
0ROCEEDSûWILLûRElNANCEû#ALPINEû#ORPSû
existing B7 TLB that was raised in May 2016.UGI MARKETS US$700m TLBEnergy distribution and services company
UGI is in the market with a US$700m term
loan B that will back its US$1.275bn cash
acquisition of Columbia Midstream Group.
The seven-year TLB is being offered at
BPûOVERû,IBOR ûWITHûAûûmOOR ûû/)$û
and 101 soft-call protection for six months.
4HEREûISûAûSINGLEûlNANCIALûCOVENANTûOFû
minimum debt service coverage ratio of 1.1
times.
Credit Suisse is leading the transaction.
The new TLB replaces a US$700m 364-day
bridge loan initially provided by Credit
Suisse.