Thor Industries, Ineos Quattro, Howden Group changes surface; Fairbanks discloses talk

By Sara Rosenberg

New York, Nov. 8 – In the primary market on Wednesday, Thor Industries Inc. trimmed the spread on its U.S. and euro term loans and tightened the original issue discount on the U.S. tranche.

Also, Ineos Quattro downsized its U.S. and euro term loans and firmed the issue price on both tranches at the wide end of talk, and Howden Group Holdings Ltd. (Hyperion Refinance Sarl) increased the size of its add-on term loan and adjusted original issue discount guidance.

Furthermore, Fairbanks Morse Defense (Arcline FM Holding LLC) released price talk on its incremental first-lien term loan with its lender call, and NorthStar Group Services Inc. emerged with new deal plans.

Thor flexes

Thor Industries reduced pricing on its $450 million senior secured term loan B due November 2030 to SOFR plus 275 basis points from talk in the range of SOFR plus 300 bps to 325 bps and revised the original issue discount to 99.5 from 99, according to a market source.

In addition, the company cut pricing on its roughly €330 million ($350 million equivalent) senior secured term loan B due November 2030 to Euribor plus 300 bps from talk in the range of Euribor plus 325 bps to 350 bps, the source said.

As before, the euro term loan has an original issue discount of 99, and both term loans (Ba2/BBB-) have a 0% floor and 101 soft call protection for six months.

Commitments continued to be due at noon ET on Wednesday, the source added.

Thor lead banks

JPMorgan Chase Bank is the physical bookrunner on Thor Industries’ U.S. term loan, and Barclays and JPMorgan are the physical bookrunners on the euro term loan. BMO Capital Markets and U.S. Bank are bookrunners. JPMorgan is the administrative agent.

The new loans will be used to amend and extend the company’s existing $272 million term loan B due February 2026 and €441 million term loan B due February 2026, to pay related transaction fees and expenses, and for general corporate purposes.

Thor Industries is an Elkhart, Ind.-based manufacturer of recreational vehicles.

Ineos reworked

Ineos Quattro trimmed its U.S. term loan B due March 2029 to roughly $1.1 billion from roughly $1.25 billion and its euro term loan B due March 2029 to about €800 million from €850 million, set the original issue discount on both tranches at 97, the wide end of the 97 to 98 talk, and revised the MFN, a market source said.

As before, the U.S. term loan is priced at SOFR+10 bps CSA plus 425 bps with a 0% floor, the euro term loan is priced at Euribor plus 450 bps with a 0% floor, and both loans have 101 soft call protection for one year.

Recommitments are due at 9 a.m. ET on Thursday, the source added.

JPMorgan Chase Bank is the left lead bookrunner on the U.S. term loan. BNP Paribas, Citigroup Global Markets Inc. and JPMorgan are the joint physical bookrunners and joint global coordinators on the euro term loan. Credit Agricole, CCB, Commerzbank, FAB, Goldman Sachs (joint global coordinator), HSBC Securities, ING, ICBC, KBC and Mizuho are joint bookrunners. JPMorgan is the administrative agent.

The chemicals company will use the term loans, along with €800 million equivalent of U.S. and euro senior secured notes, to partially refinance U.S. and euro term loan B borrowings due 2026, to fund the $500 million acquisition of the Eastman Texas City site from Eastman Chemical Co., to partially refinance other debt due 2026, and to pay transaction fees and expenses.

Howden revised

Howden Group raised its fungible add-on term loan due 2030 to $585 million from $555 million and modified original issue discount talk to a range of 99 to 99.25 from a range of 98 to 98.5, according to a market source.

Pricing on the add-on term loan is SOFR plus 400 bps with a 0.5% floor.

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

JPMorgan Chase Bank, Morgan Stanley Senior Funding Inc., Barclays, RBC Capital Markets, NatWest, HSBC Securities (USA) Inc., Lloyds, Citigroup Global Markets Inc. and ING are leading the deal. Morgan Stanley is the administrative agent.

The add-on term loan will be used to partially repay a private loan and to fund the company’s locked account.

Howden Group is a London-based insurance intermediary group.

Fairbanks guidance

Fairbanks Morse Defense held its lender call on Wednesday afternoon and announced talk on its non-fungible $185 million incremental first-lien term loan due June 23, 2028 at SOFR+CSA plus 525 bps with a 0.75% floor and an original issue discount of 97 to 97.5, a market source remarked.

CSA is ARRC standard of 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

Commitments are due at noon ET on Nov. 15, the source added.

Jefferies LLC is leading the deal that will be used to refinance the company’s existing $86.5 million acquisition term loan, to pay down ABL revolver borrowings and to add cash to the balance sheet.

Fairbanks Morse is a Beloit, Wis.-based provider of mission-critical propulsion and power generation systems, material handling devices, valves, actuators, motors and other hi-rel electrical components for the US Navy and US Coast Guard.

NorthStar on deck

NorthStar Group Services set a lender call for Thursday to launch $835 million of credit facilities, according to a market source.

The facilities consist of a $125 million four-year ABL revolver and a $710 million five-year covenant-lite first-lien term loan, the source said.

The term loan has 101 soft call protection for six months.

Commitments are due at 5 p.m. ET on Nov. 20, the source added.

Macquarie Capital (USA) Inc. is leading the deal that will be used to refinance the company’s existing credit facilities.

NorthStar, a J.F. Lehman & Co. portfolio company, is a New York-based provider of diversified infrastructure and environmental services across its four segment markets: Commercial & Industrial Deconstruction, Nuclear Services, Environment Services, and Response & Restoration.

Fund flows

In other news, actively managed loan fund flows on Tuesday were negative $17 million and loan ETFs were positive $123 million, sources said.

Leveraged loan funds are seeing their largest inflows since April 2022 of $674 million, sources added.

Loan indices rise

S&P Global’s iBoxx loan indices were stronger on Tuesday, with the Leveraged Loan index (MiLLi) closing up 0.03% and the Liquid Leveraged Loan index (LLLi) closing up 0.06%.

Month to date, the MiLLi is up 0.46% and year to date it is up 10.29%, and the LLLi is up 0.59% month to date and up 9.46% year to date.

Average secondary market bids in the United States on Tuesday were 93.04, unchanged from the previous day and up 1.27% year to date.

According to the S&P Global data, some of the top advancers on Tuesday were Diamond Sports/Sinclair/Regional Sports’ March 2022 first priority term loan at 68.17, up from 55, City Brewing’s April 2021 covenant-lite term loan at 75, up from 72, and Terrier Media/Cox Media’s February 2021 covenant-lite term loan at 90.75, up from 89.45.

Some top decliners on Tuesday were Tradesmen/Tribe Buyer’s February 2017 term loan at 45, down from 50.9, CPC Acquisition’s December 2020 covenant-lite term loan at 74.92, down from 77.57, and Covenant Surgical’s June 2019 covenant-lite term loan at 77.83, down from 80.5.

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