Russell Investments, Agiliti Health term loans withdrawn; Mitratech discloses price talk

By Sara Rosenberg

New York, March 15 – In the leveraged loan primary market on Wednesday, Russell Investments withdrew its first-lien term loan B amendment and extension and Agiliti Health pulled its term loan refinancing as a result of market volatility.

Also, Mitratech released price talk on its incremental first-lien term loan in connection with its lender question-and-answer session.

Meanwhile, the secondary market in general was softer as investors are facing a lot of uncertainty due to the recent volatility.

Russell pulls loan

Russell Investments shelved its $1.16 billion first-lien term loan B due May 30, 2028 due to market volatility in the wake of the Silicon Valley Bank failure, according to a market source.

The term loan was talked at SOFR plus 400 basis points with a 0.5% floor, an original issue discount of 98 and 101 soft call protection for six months.

Barclays was the left lead on the deal that was going to be used to amend and extend an existing first-lien term loan B due May 30, 2025, which would have been paid down by $100 million with cash on hand.

TA Associates and Reverence Capital Partners are the sponsors.

Russell Investments is a Seattle-based investment solutions provider.

Agiliti tables deal

Agiliti Health withdrew its $1.075 billion seven-year term loan B from market for the same reason as Russell Investments – market volatility following the Silicon Valley Bank collapse, a market source remarked.

The term loan was talked at SOFR plus 300 bps to 325 bps with a 0.5% floor and an original issue discount of 99.

JPMorgan Chase Bank was leading the deal that was going to be used to refinance both of the company’s term loans into one loan.

The company was also planning on getting a $300 million revolver due in 2028 to refinance its existing $250 million revolver due in 2026.

Agiliti is an Eden Prairie, Minn.-based essential service provider to the U.S. health care industry.

Mitratech guidance

Mitratech came out with price talk of SOFR+CSA plus 425 bps with a 0.75% floor and an original issue discount of 95 to 96 on its non-fungible $225 million incremental first-lien term loan due May 2028 (B2/B-), according to a market source. CSA is ARCC standard of 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

The incremental term loan has 101 soft call protection for six months, the source said.

The company posted a pre-recorded lender presentation on Tuesday and held a live lender question-and-answer session at 9:30 a.m. ET on Wednesday for the term loan.

Commitments are due at 5 p.m. ET on March 22, the source added.

Golub Capital is the left lead on the deal that will be used to fund two acquisitions.

Along with the term loan, the company is getting a $30 million upsize to its existing revolver.

Ontario Teachers’ Pension Plan is the majority owner of Mitratech, and Hg Capital is a minority owner.

Mitratech is an Austin, Tex.-based provider of legal matter management, compliance and operational risk software solutions for corporate in-house legal departments and law firms.

Secondary retreats

The secondary market in general was lower on Wednesday, with higher rated paper down about ¼ to ½ point and lower rated paper down about ½ to ¾ point, a market source remarked.

The source explained that there is a lot of volatility stemming from general uncertainty, such as uncertainty around the financial sector and uncertainty around what the Federal Reserve will do at the next meeting.

Regarding the financial sector, in addition to the recent failures of Silicon Valley Bank and Signature Bank, Wednesday saw Credit Suisse Group AG’s stock plummet after news emerged that its largest shareholder, Saudi National Bank, would not provide further financial support to the bank.

Credit Suisse’s stock closed at $2.15, down $0.35 or 14.14% on the day.

Fund flows

In other news, actively managed loan fund flows on Tuesday were negative $391 million and loan ETFs were negative $54 million, market sources said.

Outflows for actively managed loan funds on Tuesday were the largest since October and follow sizable withdrawals from the ETFs.

Also, loan funds are tracking their first outflows in excess of a billion in 2023 amid a rapid recalibration of Fed expectation, sources added.

Loan indices rise

IHS Markit’s iBoxx loan indices were stronger on Tuesday, with the Leveraged Loan indexes (MiLLi) closing out the day up 0.19% and the Liquid Leveraged Loan indices (LLLi) closing out the day up 0.45%.

Month to date, the MiLLi is down 0.39% and year to date it is up 2.80%, and the LLLi is down 0.35% month to date and up 2.56% year to date.

Average secondary market bids in the United States on Tuesday were 91.53, up 0.12% from the previous day and down 0.39% year to date.

According to the IHS Markit data, some of the top advancers on Tuesday were AMC Entertainment’s April 2019 covenant-lite term loan B at 66.11, up from 63.27, PlayPower’s May 2019 covenant-lite term loan B at 74.25, up from 72, and LogMeIn’s August 2020 covenant-lite term loan B at 54.13, up from 52.75.

Some top decliners on Tuesday were Lucky Bucks’ July 2021 covenant-lite term loan at 37.22, down from 39.14, Isagenix’s June 2018 term loan at 32, down from 33.25, and CenturyLink/Lumen’s January 2020 covenant-lite term loan B at 71, down from 72.59.

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