Nord Anglia changes surface; Dayforce, Invenergy, Pregis, United, Sweetwater set talk

By Sara Rosenberg

New York, Feb. 12 – In the primary market on Monday, Nord Anglia Education (Fugue Finance LLC) set the spread on its term loan B at the low end of guidance and tightened the original issue discount.

Also, Dayforce Inc., Invenergy Thermal Operating I LLC, Pregis (Pregis Topco LLC), United Airlines Inc. and Sweetwater Sound released price talk with launch.

Nord Anglia revised

Nord Anglia Education firmed pricing on its $600 million seven-year covenant-lite term loan B (B2/B) at SOFR plus 375 basis points, the low end of the SOFR plus 375 bps to 400 bps talk, and changed the original issue discount to 99.75 from 99.5, a market source said.

As before, the term loan has a 0.5% floor and 101 soft call protection for six months.

Commitments continued to be due at 5 p.m. ET on Monday and allocations are expected on Tuesday morning, the source added.

Deutsche Bank Securities Inc. and JPMorgan Chase Bank are joint physical bookrunners on the deal, and HSBC Securities is a passive bookrunner. BofA Securities Inc., Citigroup Global Markets Inc., DBS, E. Sun, Goldman Sachs, Morgan Stanley Senior Funding Inc. and others to be announced are joint lead arrangers and joint bookrunners. HSBC is the administrative agent.

The loan will be used to repay some revolving credit loans, and for working capital and general corporate purposes, including the repayment of second-lien debt due September 2028.

Nord Anglia, owned by BPEA EQT and CPP Investments, is a London-based K-12 schools platform.

Dayforce guidance

Dayforce held its lender call at 2 p.m. ET on Monday and, a few hours before the call began, price talk its $650 million seven-year first-lien term loan B (Ba3/BB-) was announced at SOFR plus 275 bps to 300 bps with a 0% floor and an original issue discount of 99.5, according to a market source.

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

Commitments are due at noon ET on Friday.

JPMorgan Chase Bank, Citigroup Global Markets Inc. and Goldman Sachs Bank USA are leading the deal that will be used to refinance an existing $644 million term loan B due April 2025 and for general corporate purposes.

Dayforce, formerly known as Ceridian HCM Holding Inc., is a Minneapolis-based provider of human resources software and services.

Invenergy details emerge

Invenergy Thermal Operating launched on its afternoon lender call a $302.5 million term loan B and a $25 million term loan C at talk of SOFR+CSA plus 425 bps with a 1% floor, a par issue price for existing lenders, an original issue discount of 99.875 for new money and 101 soft call protection for six months, a market source said. 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 5 p.m. ET on Thursday, the source added.

MUFG is leading the deal that will be used to reprice an existing $302.5 million term loan B and a $25 million term loan C down from SOFR+ARRC CSA plus 450 bps with a 1% floor.

Invenergy Thermal is a 2.29 GW gas-fired power portfolio consisting of four operating plants located across North America. The portfolio is owned via a 50/50 joint venture between Invenergy Clean Power LLC and InfraBridge’s Global Infrastructure Fund Platform.

Pregis holds call

Pregis emerged in the morning with plans to hold a lender call at 1 p.m. ET to launch a fungible $150 million incremental first-lien term loan due Aug. 1, 2026 talked with an original issue discount of 99.52, according to a market source.

Pricing on the term loan is SOFR plus 375 bps with a step-up to SOFR plus 400 bps at more than 4.35x senior secured first-lien leverage and a 0% floor.

Commitments are due at 2 p.m. ET on Tuesday, the source added.

UBS Investment Bank, Barclays, Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc. and Wells Fargo Securities LLC are leading the deal that will be used to fund a distribution to shareholders.

Pregis is a Chicago-based supplier of packaging systems, consumables, specialty films and surface protection films.

United Airlines refinancing

United Airlines came out in the morning with plans to hold a lender call at 2 p.m. ET to launch a $2 billion seven-year term loan B talked at SOFR plus 300 bps to 325 bps with a 0% floor, an original issue discount of 99 and 101 soft call protection for six months, a market source remarked.

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

JPMorgan Chase Bank is the left lead on the deal that will be used with cash on hand to refinance the company’s existing $3.87 billion term loan B due 2028 priced at SOFR+CSA plus 375 bps with a 0.75% floor. Current CSA is ARRC standard of 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

United Airlines is a Chicago-based airline company.

Sweetwater launches

Sweetwater Sound surfaced early in the day with plans to hold a lender call at 2 p.m. ET to launch a fungible $90 million add-on term loan due August 2028 talked with an original issue discount of 99.04, according to a market source.

Pricing on the term loan is SOFR+CSA plus 425 bps with 25 bps step-ups at more than 4.6x first-lien net leverage and at more than 5.1x first-lien net leverage, and a 0.75% floor. 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 5 p.m. ET on Feb. 20, the source added.

JPMorgan Chase Bank and MUFG are leading the deal that will be used for general corporate purposes.

Sweetwater is a Fort Wayne, Ind.-based online retailer of music instruments and audio gear.

KITO Crosby allocates

KITO Crosby (Crosby US Acquisition Corp.) allocated its $1 billion 5.5-year first-lien term loan on Monday, a market source remarked.

Pricing on the term loan is SOFR plus 400 basis points with a 25 bps step-down at 2.5x first-lien net leverage and a 0.5% floor. The debt was sold at an original issue discount of 99.5 and has 101 soft call protection for six months.

During syndication, pricing on the term loan was lowered from talk in the range of SOFR plus 425 bps to 450 bps, the step-down was added and the discount was tightened from 99.

The company’s $1.12 billion of credit facilities (B2/B) also include a $120 million five-year revolver.

UBS Investment Bank, KKR Capital Markets, SMBC, Mizuho, ING and Morgan Stanley Senior Funding Inc. are leading the deal that will be used to refinance the company’s existing capital structure.

KITO Crosby is a manufacturer and marketer of highly engineered equipment and solutions used in lifting, rigging, and custom material handling.

Fund flows

In other news, actively managed loan fund flows on Friday were positive $27 million and loan ETFs were positive $164 million, market sources said.

Last week, loan funds reported weekly outflows totaling $273 million, with negative $32 million ETFs, which were the first outflows for ETFs in 18 weeks. These were loan funds’ largest outflows since early October, a span of 17 weeks in which a net $2 billion flowed into the asset class, sources added.

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