Heartland Dental, Life Time, Oxbow Carbon term loans free to trade

By Sara Rosenberg

New York, May 5 – Heartland Dental LLC downsized its amended and extended first-lien term loan and set the original issue discount at the wide end of talk, and then the loan broke for trading on Friday above its issue price.

Also, before making their way into the secondary market, Life Time Inc. increased the size of its term loan B and firmed the original issue discount at the tight end of talk, and Oxbow Carbon LLC finalized the spread on its term loan B at the high end of guidance.

Heartland downsized, breaks

Heartland Dental scaled back its senior secured amended and extended first-lien term loan (B-) due April 30, 2028 to $1,382,700,000 from roughly $1,850,200,000 and finalized the original issue discount at 96, the wide end of the 96 to 97 talk, a market source said.

Pricing on the term loan remained at SOFR plus 500 basis points with a 0.75% floor, and the debt still has 101 soft call protection for six months.

On Friday, the term loan made its way into the secondary market, with levels quoted at 96¼ bid, 97 offered, another source added.

KKR Capital Markets, Jefferies LLC, BMO Capital Markets, TD Securities (USA) LLC, Credit Agricole, Mizuho, MUFG, SMBC and Macquarie Capital (USA) Inc. are leading the deal that will be used with $535 million of new senior secured notes, upsized from $500 million, new cash equity and a new strategic partner contribution to partially refinance extending lenders as part of an amend and extend of their existing term loan and for general corporate purposes.

KKR and Ontario Teachers’ Pension Plan are the sponsors.

Heartland Dental is an Effingham, Ill.-based dental support organization.

Life Time upsized, frees

Life Time lifted its covenant-lite term loan B (B2/BB-) due Jan. 15, 2026 to $310 million from $274 million and set the original issue discount at 99.5, the tight end of the 99 to 99.5 talk, according to a market source.

As before, the term loan is priced at SOFR+CSA plus 475 bps with a 25 bps step-down at B2/B corporate ratings and a 0.5% floor, and has 101 soft call protection for six months. CSA is ARRC standard of 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

Recommitments were due at 10:30 a.m. ET on Friday and the term loan broke in the afternoon, with levels quoted at 99 7/8 bid, par ¼ offered, another source added.

Deutsche Bank Securities Inc., JPMorgan Chase Bank, BofA Securities Inc., Goldman Sachs Bank USA, BMO Capital Markets, Mizuho, Wells Fargo Securities LLC, Morgan Stanley Senior Funding Inc., RBC Capital Markets and US Bank are leading the deal that will be used to refinance an existing term loan due December 2024 and, due to the upsizing, to pay down revolver borrowings.

Closing is expected on Tuesday.

Life Time is a Chanhassen, Minn.-based operator of athletic resorts offering amenities for fitness and wellness, family recreation and healthy living.

Oxbow updated, trades

Oxbow Carbon firmed pricing on its $350 million seven-year term loan B at SOFR plus 400 bps, the high end of the SOFR plus 375 bps to 400 bps talk, a market source remarked.

The term loan B still has 10 bps CSA, a 0.5% floor, an original issue discount of 98 and 101 soft call protection for one year.

The company’s $900 million of credit facilities (B1/BB-) also include a $325 million revolver and a $225 million term loan A.

During the session, the term loan B began trading, with levels quoted at 98¼ bid, 99 offered, another source added.

BofA Securities Inc., JPMorgan Chase Bank, Rabobank, Truist, Capital One, Citizens, Wells Fargo Securities LLC and Societe Generale are leading the deal that will be used to refinance the company’s existing senior secured credit facilities.

Oxbow Carbon is a West Palm Beach, Fla.-based recycler and upgrader of refinery byproducts.

Global Healthcare allocates

Global Healthcare Exchange LLC allocated on Friday its $725 million term loan (B2/B-) due June 2027 that is priced at SOFR plus 475 bps with a 0.5% floor and was sold at an original issue discount of 97.5. The debt has 101 soft call protection for six months, according to a market source.

During syndication, pricing on the term loan firmed at the low end of the SOFR plus 475 bps to 500 bps talk, a 25 bps pricing step-down was removed, the discount was changed from 97 and a requirement for quarterly lender calls was added.

JPMorgan Chase Bank is leading the deal that will be used to extend an existing term loan from June 2024.

Global Healthcare Exchange is a Louisville, Colo.-based provider of cloud-based health care supply chain management technology and services.

AL NGPL wrap sup

AL NGPL Holdings LLC allocated its fungible $90 million incremental first-lien term loan due April 2028, a market source said.

Pricing on the incremental term loan is SOFR+CSA plus 375 bps with a 1% floor and it was sold at an original issue discount of 99.03. CSA is 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

Jefferies LLC is leading the deal that will be used to fund a distribution.

In connection with this transaction, the company is amending its existing first-lien term loan to shift pricing to SOFR+CSA plus 375 bps with a 1% floor from Libor plus 375 bps with a 1% floor, and allow for the incremental term loan and distribution.

Lenders were offered a 25 bps amendment fee.

AL NGPL, an ArcLight Capital Partners portfolio company, is a provider of natural gas transportation and storage services.

Fund flows

In other news, actively managed loan fund flows on Thursday were negative $130 million and loan ETFs were negative $49 million, according to market sources.

Loan funds reported weekly outflows totaling $374 million, including negative $2.1 million ETFs. These were the lowest outflows over the past eight weeks, a period that saw an average outflow of $830 million per week, sources continued.

Leveraged loan funds have reported 36 outflows in the last 37 weeks with actively managed funds experiencing a fifty second consecutive weekly withdrawal.

Outflows for loan funds this year total $14.2 billion, sources added.

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