Barentz, Allison Transmission, Restaurant Technologies term loans free to trade

By Sara Rosenberg

New York, March 1 – Barentz finalized the original issue discount on its U.S. term loan B at the tight end of revised guidance and the issue price on its euro term loan B at the tight side of modified talk, and then the debt made its way into the secondary market on Friday.

Other deals to break for trading during the session included Allison Transmission Inc. and Restaurant Technologies Inc. (Eagle Parent Corp.).

In more happenings, Cengage Learning Inc. joined the near-term new-issue calendar with plans to refinance its existing term loan B, and since the existing loan was already wrapped around par in the secondary market, trading levels were unmoved by the news.

Barentz updated

Barentz firmed the original issue discount on its $525 million seven-year covenant-lite term loan B at 99.5, the tight end of revised talk of 99 to 99.5 and tighter than initial talk of 99, according to a market source.

In addition, the company set the issue price on its €725 million seven-year covenant-lite term loan at par, the tight end of revised talk of 99.75 to par, and tighter than prior talk of 99.5 to 99.75 and initial talk of 99.5.

Pricing on the term loans is SOFR/Euribor plus 400 basis points with a 0% floor, and both loans (B) have 101 soft call protection for six months.

Previously in syndication, pricing on the U.S. term loan was lowered from SOFR plus 425 bps and pricing on the euro term loan finalized at the low end of the Euribor plus 400 bps to 425 bps talk.

The term loans will be used to extend the company’s existing euro term loan B due November 2027, and repay existing U.S. and sterling term loans due November 2027.

Barentz breaks

On Friday, Barentz’s U.S. term loan freed to trade, with levels quoted at 99¾ bid, par ¼ offered, another source added.

Goldman Sachs is the sole physical bookrunner on the U.S. term loan, and Credit Agricole, Goldman Sachs, ING and Mizuho are joint physical bookrunners on the euro term loan. ABN Amro, Bank of Ireland, Morgan Stanley and NatWest are joint bookrunners.

Barentz is a Netherlands-based distributor of ingredients for human nutrition, pharmaceuticals, personal care, performance materials and animal nutrition.

Allison hits secondary

Allison Transmission’s $518 million seven-year senior secured covenant-lite term loan B (Baa2//BBB-) broke for trading too, with levels quoted at par 1/8 bid, par ½ offered, a market source remarked.

Pricing on the term loan is SOFR plus 175 bps with a 0% floor and it was issued at par. The debt has 101 soft call protection for six months.

During syndication, the issue price on the term loan was tightened from talk in the range of 99.5 to 99.75.

Citigroup Global Markets Inc., Fifth Third, BofA Securities Inc., Barclays, BMO Capital Markets, Deutsche Bank Securities Inc., JPMorgan Chase Bank, MUFG, Goldman Sachs Bank USA, SMBC and Truist Securities are leading the deal.

Proceeds will be used to amend and extend the company’s existing term loan B. The company will use cash from the balance sheet to reduce the term loan by $100 million from $618 million.

Closing is expected on March 8.

Allison Transmission is an Indianapolis-based automatic transmission company and supplier of hybrid-propulsion systems.

Restaurant Technologies frees

Restaurant Technologies’ fungible $75 million incremental covenant-lite senior secured first-lien term loan B (B3/B-) due April 1, 2029 began trading as well, with levels quoted at 99½ bid, par offered, according to a trader.

Pricing on the incremental term loan is SOFR plus 425 bps with a 0.5% floor and it was sold at an original issue discount of 98.08.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to repay existing revolver borrowings and for general corporate purposes.

Closing is expected during the week of March 4.

Restaurant Technologies is a provider of cooking-oil management and back-of-house hood and exhaust cleaning solutions.

Cengage on deck

Cengage set a lender call for 10 a.m. ET on Monday to launch a $1.613 billion senior secured term loan B (B2), a market source said.

Morgan Stanley Senior Funding Inc. is the left lead on the deal that will be used to refinance the company’s existing $1.613 billion term loan B.

The company’s existing term loan B was quoted at 99 7/8 bid, par ¼ offered on Friday following the refinancing news, in line with where it was quoted on Thursday, a trader added.

Cengage is a Boston-based educational content, technology and services company.

Loan inflows

In other news, inflows to loans were $610 million this past week ending on Feb. 28, compared to $10 million in the prior week, according to BofA Global Research report. These were the strongest inflows since November 2023.

Outflows from high-yield this past week were $1.14 billion, the strongest weekly outflow in eight weeks, the report added. By comparison, the prior week saw inflows of $700 million.

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