Par Petroleum, Castlelake, Hanesbrands break; Sotera revised; UGI, Charter Next accelerated

By Sara Rosenberg

New York, Feb. 14 – Par Petroleum LLC modified the original issue discount on its term loan B and added a pricing step-down, and Castlelake Aviation reduced pricing on its incremental first-lien term loan B and tightened the issue price, and then these deals, as well as Hanesbrands Inc.’s term loan B, freed to trade on Tuesday.

In more happenings, Sotera Health Co. increased the size of its term loan B, and UGI Energy Services LLC and Charter Next Generation Inc. moved up the commitment deadlines for their term loan transactions.

Furthermore, ZoomInfo LLC term loan B price talk surfaced, and World Wide Technology Holding Co. LLC and SubCom joined this week’s primary calendar.

Par Petroleum tweaked

Par Petroleum adjusted the original issue discount on its $550 million seven-year covenant-lite term loan B (B1/BB) to 98.5 from talk in the range of 97 to 98 and added a 25 basis points pricing step-down at corporate ratings of Ba3/BB- with stable outlooks, a market source remarked.

Initial pricing on the term loan remained at SOFR+10 bps CSA plus 425 bps with a 0.5% floor, and the debt still has 101 soft call protection for six months.

Wells Fargo Securities LLC, BofA Securities Inc. and MUFG are leading the deal that will be used to refinance the company’s 7¾% notes due 2025, 12 7/8% senior secured notes due 2026 and existing term loan B due 2026, and for general corporate purposes.

Par Petroleum frees

Recommitments for Par Petroleum’s term loan B were due at noon ET on Tuesday and the debt broke for trading in the afternoon, with levels quoted at 98¾ bid, 99½ offered, another source added.

The company also plans to refinance its existing ABL credit facility due 2025 with a new $150 million ABL credit facility due 2028, which it expects to upsize to about $550 million upon the closing of its acquisition of 63,000 bpd Billings refinery and associated marketing and logistics assets from ExxonMobil Corp.

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

Par Petroleum is a subsidiary of Par Pacific, a Houston-based refiner, marketer and distributor of crude oil.

Castlelake flexes, breaks

Castlelake Aviation trimmed pricing on its $635 million incremental first-lien term loan B (Ba3/BB/BB+) due October 2027 to SOFR plus 275 bps from SOFR plus 300 bps and moved the original issue discount to 99.25 from 98.5, according to a market source.

The term loan still has a 0.5% floor and 101 soft call protection for six months.

Recommitments were due at 1:30 p.m. ET on Tuesday and the term loan began trading in the afternoon, with levels quoted at 99¼ bid, 99 5/8 offered, a trader added.

Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc., Barclays, BNP Paribas Securities Corp., Citigroup Global Markets Inc., Fifth Third, MUFG, Natixis and RBC Capital Markets are leading the deal that will be used to refinance existing debt, including to repay revolver borrowings and the AirAsia term loan facility, and for general corporate purposes.

Castlelake Aviation is a Dublin, Ireland-based provider of aircraft financing, leasing and servicing solutions.

Hanesbrands hits secondary

Hanesbrands’ $900 million seven-year term loan B freed to trade as well, with levels quoted at 99½ bid, par offered, a market source remarked.

Pricing on the term loan is SOFR plus 375 bps with a 0.5% floor and it was sold at an original issue discount of 99. The debt has 101 soft call protection for six months.

During syndication, the term loan was upsized from $750 million, the spread was lowered from SOFR plus 400 bps, and the discount was tightened from revised talk of 98.5 and initial talk in the range of 97 to 98.

JPMorgan Chase Bank is leading the deal that will be used with $600 million of senior notes to refinance euro-denominated 3½% senior notes due 2024 and dollar-denominated 4 5/8% senior notes due 2024.

Closing is expected on March 8.

Hanesbrands is a Winston-Salem, N.C.-based marketer of everyday basic apparel.

Sotera upsizes

Sotera Health lifted its non-fungible senior secured term loan B due December 2026 to $500 million from $425 million, and left talk at SOFR plus 375 bps with a 0.5% floor, an original issue discount of 95.5 to 96 and 101 soft call protection for six months

Commitments are due at 5 p.m. ET on Wednesday, accelerated from 5 p.m. ET on Thursday, the source added.

JPMorgan Chase Bank is leading the deal that will be used with cash on hand to fund a planned $408 million ethylene oxide litigation settlement in Cook County, Ill., to pay down revolver borrowings and to further enhance liquidity.

Closing is expected this quarter.

Sotera is a Broadview Heights, Ohio-based provider of mission-critical end-to-end sterilization solutions and lab testing and advisory services for the health care industry.

UGI revises timing

UGI Energy accelerated the commitment deadline for its $800 million seven-year senior secured term loan B (Ba3//BB+) to 5 p.m. ET on Wednesday from noon ET on Thursday, according to a market source.

Talk on the term loan is SOFR+10 bps CSA plus 325 bps with a 0% floor, an original issue discount of 99 and 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to refinance an existing term loan and other debt.

UGI Energy is a Wyomissing, Pa.-based diversified midstream and energy marketing services company.

Charter Next accelerated

Charter Next Generation moved up the commitment deadline for its fungible $250 million incremental term loan B to 5 p.m. ET on Wednesday from 5 p.m. ET on Thursday, a market source said.

Talk on the incremental loan is SOFR+CSA plus 375 bps with a 0.75% floor and an original issue discount of 99.04. CSA is 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

KKR Capital Markets is the left lead on the deal that will be used to repay some senior unsecured PIK notes.

In connection with this transaction, pricing on the company’s existing term loan B will transition to SOFR from Libor.

Charter Next Generation is a Milton, Wis.-based producer of specialty films used in flexible packaging and other end-use markets.

ZoomInfo guidance

ZoomInfo came out in the morning with talk on its $600 million covenant-lite first-lien term loan B (Ba1/BB+) due Feb. 1, 2030 at SOFR+10 bps CSA plus 275 bps with a 0% 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 for the loan, which launched with a lender call on Monday afternoon, are due at noon ET on Friday, the source added.

Morgan Stanley Senior Funding Inc. is the left lead on the deal that will be used to amend and extend an existing first-lien term loan B.

ZoomInfo is a Vancouver, Wash.-based provider of sales and marketing data.

World Wide on deck

World Wide Technology set a lender call for 11:30 a.m. ET on Wednesday to launch a $650 million first-lien term loan B (Ba3/BB) talked at SOFR+10 bps CSA plus 325 bps to 350 bps with a 0.5% floor, an original issue discount of 98.5 and 101 soft call protection for six months, a market source remarked.

Commitments are due at noon ET on Feb. 23, the source added.

JPMorgan Chase Bank, BofA Securities Inc., PNC Capital, US Bank and Wells Fargo Securities LLC are leading the deal that will be used for general corporate purposes, including to pay down ABL revolver borrowings.

World Wide Technology is a St. Louis-based provider of information technology supply chain solutions.

SubCom readies deal

SubCom will hold a lender call at 11 a.m. ET on Wednesday to launch a $470 million incremental first-lien term loan, according to a market source.

Goldman Sachs Bank USA is the left lead on the deal that will be used to return capital to shareholders and pay related fees and expenses.

SubCom is an Eatontown, N.J.-based subsea fiber optic cable turnkey services provider, with engineering, manufacturing, installation and maintenance capabilities.

Fund flows

In other news, actively managed loan fund flows on Monday were negative $163 million and loan ETFs were positive $15 million, market sources said.

Outflows for loan funds week-to-date total an estimated $350 million, compared to outflows in the prior week of $256 million, sources added.

Loan indices rise

IHS Markit’s iBoxx loan indices were stronger on Monday, with the Leveraged Loan indexes (MiLLi) closing out the day up 0.06% and the Liquid Leveraged Loan indices (LLLi) closing out the day up 0.04%.

Month to date, the MiLLi is up 0.78% and year to date it is up 3.38%, and the LLLi is up 0.61% month to date and up 3.25% year to date.

Average secondary market bids in the U.S. on Monday were 92.03, up 0.08% from the previous day and up 0.15% year to date.

According to the IHS Markit data, some of the top advancers on Monday were Yak Mat’s June 2018 covenant-lite term loan B at 43.17, up from 40.25, Equinox Fitness Clubs’ November 2017 term loan B1 at 82.63, up from 79.83, and Envision Healthcare/Amsurg’s July 2022 first out covenant-lite term loan at 89.65, up from 87.

Some top decliners on Monday were Driven Performance/Holley Performance’s November 2021 term loan at 81.90, down from 85.25, Mad Engine’s June 2021 covenant-lite term loan at 77.10, down from 79.50, and RugsUSA’s October 2021 covenant-lite term loan B at 72, down from 72.67.

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