Sally Beauty brings term loan B repricing to market, seeking 25 bps reduction

By Sara Rosenberg

New York, Sept. 5 – In the primary market on Tuesday, Sally Beauty Holdings Inc. approached lenders with a repricing of its term loan B in an otherwise quiet post-holiday weekend session.

The company emerged in the morning with plans to hold a lender call at 1 p.m. ET on Tuesday to launch a $399 million term loan B due Feb. 28, 2030 talked at SOFR plus 225 basis points with a 0% floor, a par issue price and 101 soft call protection for six months, a market source remarked.

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

BofA Securities Inc. is the left lead on the deal that will be used to reprice an existing term loan B down from SOFR plus 250 bps with a 0% floor.

The borrowers are Sally Holdings LLC and Sally Capital Inc.

Sally Beauty is a Denton, Tex.-based retailer and distributor of professional beauty supplies.

Loan indices mixed

In other news, IHS Markit’s iBoxx loan indices were mixed on Friday, 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 0.12%.

Month to date, the MiLLi is up 0.01% and year to date it is up 8.87%, and the LLLi is down 0.12% month to date and up 8.28% year to date.

Average secondary market bids in the U.S. on Friday were 92.75, up 0.15% from the previous day and up 0.96% year to date.

According to the IHS Markit data, some of the top advancers on Friday were Correct Care Solutions’ September 2018 covenant-lite term loan at 77.75, up from 74.91, Revere Power’s March 2019 term loan B at 85, up from 83.33, and Jo-Ann Stores’ July 2021 covenant-lite term loan B at 37.4, up from 36.75.

Some top decliners on Friday were ScionHealth’s December 2021 covenant-lite term loan B at 29.67, down from 30.33, Avalign Technologies’ December 2018 covenant-lite term loan B at 91.5, down from 93.5, and Endo Pharmaceuticals’ March 2021 covenant-lite RSA term loan B at 72.25, down from 73.

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