GFL Environmental term loan breaks; Entegris trades up; Nord Anglia accelerates deadline

By Sara Rosenberg

New York, Jan. 20 – GFL Environmental Inc. set the spread on its amended and extended first-lien term loan at the low end of talk and finalized the original issue discount at the tight side of guidance before freeing up for trading on Friday.

Also, Entegris Inc. saw its term loan move a little higher in the secondary market as the company announced plans to sell its QED Technologies International Inc. business.

In more happenings, Nord Anglia Education (Fugue Finance) moved up the commitment deadline for its term loans, and Brazos Midstream (Brazos Delaware II LLC), EisnerAmper (Eisner Advisory Group LLC) and Caesars Entertainment Inc. joined the near-term primary calendar with plans for new term loans.

GFL updated, frees

GFL Environmental firmed pricing on its roughly $1.287 billion senior secured first-lien term loan due May 31, 2027 at SOFR plus 300 basis points, the low end of the SOFR plus 300 bps to 325 bps talk, and set the original issue discount at 99.5, the tight end of the 98.5 to 99.5 talk, a market source said.

As before, the term loan has 10 bps CSA, a 0.5% floor and 101 soft call protection for six months.

On Friday, the term loan made its way into the secondary market, with levels quoted at 99 5/8 bid, par 1/8 offered, another source added.

Barclays is leading the deal that will be used to amend and extend a roughly $1.287 billion senior secured first-lien term loan due May 2025 that is priced at Libor plus 300 bps with a 0.5% floor.

GFL is a Vaughan, Ont.-based environmental services company.

Entegris inches up

Entegris’ term loan rose to par ¼ bid, par ½ offered on Friday from par bid, par 3/8 offered on Thursday as the company disclosed that it is selling its QED Technologies business to Quad-C Management Inc., according to a market source.

Closing is expected this quarter, subject to receipt of required regulatory approvals and other customary conditions.

Entegris is a Billerica, Mass.-based supplier of advanced materials and process solutions for the semiconductor and other high-technology industries. QED is a provider of state-of-the-art MRF polishing and SSI metrology manufacturing solutions that are designed to meet the needs of advanced optics manufacturers.

Nord tweaks timing

Nord Anglia accelerated the commitment deadline for its $500 million term loan B due January 2028 to 5 p.m. ET on Tuesday from 5 p.m. ET on Wednesday and for its up to $1.4 billion equivalent euro term loan B due January 2028 to noon ET on Tuesday from noon ET on Wednesday, a market source remarked.

The U.S. term loan is talked at SOFR plus 475 bps to 500 bps with a 0.5% floor and an original issue discount of 97, and the euro term loan is talked at Euribor plus 475 bps to 500 bps with a 0% floor and a discount of 97. Both term loans have 101 soft call protection for six months.

Deutsche Bank Securities Inc. and JPMorgan Chase Bank are joint physical bookrunners on the U.S. term loan, and HSBC is a joint bookrunner. HSBC, Deutsche Bank and JPMorgan are joint physical bookrunners on the euro term loan. Mandated lead arrangers on the loans are Citigroup Global Markets Inc., DBS, Goldman Sachs, Morgan Stanley Senior Funding Inc., Standard Chartered, BofA Securities Inc. and E. Sun. HSBC is the administrative agent.

Proceeds will be used by the London-based K-12 schools platform to extend and refinance its existing U.S. and euro first-lien term loans due September 2024.

BPEA EQT and CPP Investments are the sponsors.

Brazos readies deal

Brazos Midstream scheduled a lender call for 11 a.m. ET on Monday to launch an $800 million seven-year senior secured term loan B (B1/B+), a market source said.

The term loan has 101 soft call protection for six months, the source added.

Barclays, Jefferies LLC, Bank of Oklahoma and Cadence Bank are leading the deal that will be used to refinance an existing term loan B due 2025.

Brazos is a Fort Worth, Tex.-based natural gas gathering and processing and crude gathering company servicing producers in the Southern Delaware Basin.

EisnerAmper on deck

EisnerAmper set a lender call for 11:30 a.m. ET on Monday to launch a fungible $130 million incremental covenant-lite term loan B-2 due July 2028, according to a market source.

Like the existing term loan B-2, the incremental term loan is priced at SOFR plus 525 bps with a 0.75% floor.

Pricing of the loan is expected on Wednesday, the source added.

Deutsch Bank Securities Inc. is leading the deal that will be used to fund near-term acquisitions.

EisnerAmper is a New York-based professional services firm with a full suite of accounting, tax and advisory services.

Caesars joins calendar

Caesars Entertainment will hold a lender call at 1:30 p.m. ET on Monday to launch a $1.75 billion seven-year term loan B, a market source remarked.

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

JPMorgan Chase Bank is the left lead on the deal that will be used to help repay Caesars Resort Collection LLC’s existing term B due 2024.

Caesars is a Reno, Nev.-based gaming and entertainment company.

Loan indices mixed

In other news, IHS Markit’s iBoxx loan indices were mixed on Thursday, with the Leveraged Loan indexes (MiLLi) closing out the day up 0.01% and the Liquid Leveraged Loan indices (LLLi) closing out the day down 0.04%.

Month to date, the MiLLi is up 1.99% and the LLLi is up 2.23%.

Average secondary market bids in the U.S. on Thursday were 92.41, up 0.58% year to date.

According to the IHS Markit data, some of the top advancers on Thursday were RSA Security’s April 2021 term loan at 80.60, up from 74.44, West Marine’s June 2021 covenant-lite term loan at 41.38, up from 40.88, and Orchid Orthopedic’s March 2019 covenant-lite term loan at 87.17, up from 86.13.

Some top decliners on Thursday were City Brewing’s April 2021 covenant-lite term loan at 38, down from 41.25, National Mentor/Civitas’ March 2021 covenant-lite term loan at 69.67, down from 74.93, and Securus Technologies’ June 2017 covenant-lite term loan at 69.19, down from 72.28.

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