Fortescue better bid as debt deals canceled; FullBeauty updates add-on term loan pricing

By Sara Rosenberg

New York, March 18 – Fortescue Resources’ term loan was bid higher in the secondary market on Wednesday in connection with the company’s decision to withdraw its maturity extension proposal and note refinancing plans.

Moving to the primary, FullBeauty Brands set the spread on its loan at the low end of guidance, Royal Adhesives & Sealants and Planet Fitness Holdings LLC released original issue discount talk on their add-on term loans with launch, and Travel Leaders Group LLC joined this week’s new deal calendar.

Fortescue’s term loan was stronger bid in trading on Wednesday as the company pulled the proposed extension of its $4,888,000,000 senior secured term loan to December 2021 from June 30, 2019 and its notes tender offer, according to a trader.

The term loan was quoted at 90 5/8 bid, 91¼ offered, versus 90¼ bid, 91¼ offered late Tuesday, the trader said.

The extended term loan was talked at Libor plus 450 basis points, compared to current pricing of Libor plus 275 bps. The extended loan was also guided with a 1% Libor floor and 101 soft call protection for one year, and lenders were being offered a 5 bps consent fee and a 20 bps extension fee.

During the negotiation process, the request was changed from extending the loan to 2022 and price talk was adjusted from Libor plus 425 bps to 450 bps with a 1% Libor floor.

Credit Suisse Securities (USA) LLC and J.P. Morgan Securities LLC were leading the deal.

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