TransNetwork term loan frees to trade; Vivint term loan unchanged after NRG management news

By Sara Rosenberg

New York, Nov. 20 – TransNetwork LLC’s term loan B broke for trading during Monday’s session, with the debt quoted above its original issue discount.

And, in more happenings, Vivint Smart Home Inc.’s term loan was unchanged in the secondary market following news that parent company, NRG Energy Inc., underwent changes to management and its board of directors.

TransNetwork starts trading

TransNetwork’s $320 million term loan B freed to trade on Monday afternoon, with levels quoted at 98¼ bid, 99¼ offered, a market source remarked.

The term loan is priced at SOFR plus 550 basis points with a 0.5% floor and it was sold at an original issue discount of 98. The debt has 101 soft call protection for six months.

During syndication, the term loan was upsized from $300 million, pricing firmed at the low end of the SOFR plus 550 bps to 575 bps talk and the discount was revised from talk in the range of 97 to 97.5.

Truist Securities is leading the deal that will be used to fund the acquisition of PNC Payment Holdings Inc. and to refinance existing debt.

TransNetwork, owned by Flexpoint Ford, GCP Capital Partners and Investar Financial, is a Houston-based payment processor serving the U.S. to Latin America cross-border payment corridor.

Vivint holds steady

Vivint’s term loan was quoted at par bid, par ¼ offered on Monday, in line with Friday’s levels, as the debt shrugged off news that NRG’s president and chief executive officer, Mauricio Gutierrez, has departed the company and resigned from the board, according to a market source.

Lawrence Coben, Ph.D., chair of the NRG board of directors, has been appointed interim president and chief executive officer. The board has initiated a search to identify a permanent chief executive officer and retained a search firm to assist with this process.

Also, NRG announced that, as part of a cooperation agreement with Elliott Investment Management LP, four new independent directors will be joining the company’s board.

Additionally, NRG will conduct a comprehensive review of its operations and cost structure to identify additional opportunities to become more efficient and further enhance capital return to shareholders.

NRG, a Houston-based provider of energy solutions and natural gas, acquired Vivint, a smart home company, on March 10 for $12 per share, or $2.8 billion.

Fund flows

In other news, actively managed loan fund flows on Friday were negative $10 million and loan ETFs were positive $5 million, sources said.

Actively managed high-yield fund flows on Friday were negative $25 million and high-yield ETFs were negative $168 million, sources added.

Loan indices rise

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

Month to date, the MiLLi is up 0.88% and year to date it is up 10.75%, and the LLLi is up 0.92% month to date and up 9.82% year to date.

Average secondary market bids in the United States on Friday were 93.2, up 0.05% from the previous day and up 1.45% year to date.

According to the S&P Global data, some of the top advancers on Friday were Kore Wireless’ December 2018 term loan B at par, up from 93, Iris Holdings/Intertape Polymer’s June 2022 covenant-lite term loan at 88.75, up from 85.64, and Amneal Pharmaceuticals’ May 2018 covenant-lite term loan at par, up from 97.92.

Some top decliners on Friday were New Trojan/Careismatic’s January 2021 covenant-lite term loan at 41.67, down from 48.75, Riverbed Technology’s July 2023 PIK covenant-lite term loan at 67, down from 70, and Valeant’s May 2022 term loan at 75.54, down from 77.32.

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