ION Corporates term loan frees to trade; GoDaddy updates surface; Ontic accelerated

By Sara Rosenberg

New York, July 13 – ION Corporates (Helios Software Holdings Inc.) saw its first-lien term loan B make its way into the secondary market on Thursday, with levels quoted above its original issue discount.

Meanwhile, in the primary market, GoDaddy Inc. lowered the spread on its term loan B-5 and removed a pricing step-down, and Ontic (Bleriot US Bidco Inc.) moved up the commitment deadline for its first-lien term loan B.

ION hits secondary

ION Corporates’ $500 million first-lien term loan B due July 2030 broke for trading on Thursday, with levels quoted at 96½ bid, 97¼ offered, a market source said.

The term loan is priced at SOFR plus 425 basis points with a 0% floor and it was sold at an original issue discount of 96. The debt has 101 soft call protection for six months and 50 bps MFN for six months.

During syndication, the term loan was upsized from $400 million and pricing was lowered from talk in the range of SOFR plus 450 bps to 475 bps.

BNP Paribas Securities Corp., JPMorgan Chase Bank and Standard Chartered are leading the deal. Credit Suisse is the administrative agent.

The term loan will be used to refinance $250 million of an existing U.S. term loan, to fund a $200 million distribution, for general corporate purposes, to add cash to the balance sheet and to pay any fees associated with the transaction.

ION is a provider of software and solutions focused on corporate treasury and commodities management.

GoDaddy revised

Moving to the primary market, GoDaddy trimmed pricing on its $1,761,150,000 term loan B-5 (Ba1/BB) due November 2029 to SOFR plus 250 bps from SOFR plus 275 bps and eliminated a 25 bps step-down when first-lien net leverage is below 1.45x, according to a market source.

As before, the term loan has a 0% floor, a par issue price and 101 soft call protection for six months.

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

RBC Capital Markets, HSBC Securities (USA) Inc., Wells Fargo Securities LLC, BNP Paribas Securities Corp., Morgan Stanley Senior Funding Inc., JPMorgan Chase Bank, Barclays, Goldman Sachs Bank USA and Deutsche Bank Securities Inc. are leading the deal that will be used to reprice an existing $1,761,150,000 term loan B-5 due November 2029 down from SOFR plus 325 bps with a 25 bps step-down when first-lien net leverage is below 1.45x and a 0% floor.

GoDaddy is Tempe, Ariz.-based provider of web hosting and domain names.

Ontic tweaks timing

Ontic accelerated the commitment deadline for its $937 million covenant-lite first-lien term loan B due October 2028, inclusive of an incremental $100 million term loan, to 5 p.m. ET on Monday from noon ET on Wednesday, a market source remarked.

Talk on the term loan is SOFR+CSA plus 425 bps with a 0% floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months. CSA is 11.4 bps one-month rate, 26.2 bps three-month rate and 42.8 bps six-month rate.

Ontic’s up to $1.022 billion of credit facilities (B2/B) also include an $85 million revolver due July 2028.

Nomura Securities, Barclays, Macquarie Capital (USA) Inc. and KKR Capital Markets are leading the deal that will be used to extend an existing revolver from October 2024, to extend from October 2026 and combine into one tranche an existing term loan B and an existing term loan B-2, and the incremental term loan will repay outstanding revolver borrowings and fund general corporate purposes.

Currently, the company’s existing term loan B is priced at SOFR+CSA plus 400 bps with a 0% floor and its existing term loan B-2 is priced at SOFR+CSA plus 450 bps with a 0% floor.

Ontic is a provider of OEM-licensed parts and aftermarket services for mature aerospace and defense platforms.

Fund flows

In other news, actively managed loan fund flows on Wednesday were negative $10 million and loan ETFs were positive $53 million, market sources said.

Actively managed high-yield fund flows on Wednesday were positive $84 million and high-yield ETFs were positive $1.585 billion, sources added.

Loan indices rise

IHS Markit’s iBoxx loan indices were stronger on Wednesday, with the Leveraged Loan indexes (MiLLi) closing out the day up 0.19% and the Liquid Leveraged Loan indices (LLLi) closing out the day up 0.18%.

Month to date, the MiLLi is up 0.82% and year to date it is up 7.1%, and the LLLi is up 0.76% month to date and up 6.95% year to date.

Average secondary market bids in the U.S. on Wednesday were 91.98, up 0.08% from the previous day and up 0.11% year to date.

According to the IHS Markit data, some of the top advancers on Wednesday were EyeCare Partners’ February 2020 covenant-lite term loan B at 80.5, up from 77.19, Whole Earth Brands’ February 2021 term loan B at 82.8, up from 79.75, and Tibco Software/Citrix’s September 2022 covenant-lite term loan B at 95, up from 93.47.

Some top decliners on Wednesday were Sound Physicians’ June 2018 term loan at 56.15, down from 56.77, Tosca’s February 2021 covenant-lite term loan at 81.96, down from 82.75, and Byju’s November 2021 covenant-lite term loan B at 61.83, down from 62.33.

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