Ryman Hospitality, Tank Holding free to trade; MoneyGram, IMA Financial set talk

By Sara Rosenberg

New York, May 11 – Ryman Hospitality Properties Inc.’s (RHP Hotel Properties LP) term loan B made its way into the secondary market on Thursday, with levels quoted above its original issue discount, and Tank Holding Corp.’s strip of funded and delayed-draw term loans broke as well.

Meanwhile, in the primary market, MoneyGram International Inc. and IMA Financial Group released price talk on their term loans in connection with their lender calls.

Ryman hits secondary

Ryman Hospitality Properties’ $500 million seven-year covenant-lite term loan B freed to trade on Thursday, with levels quoted at 99½ bid, par offered, according to a market source.

Pricing on the term loan is SOFR plus 275 bps with a 0% floor and it was sold at an original issue discount of 99.25. The debt has 101 soft call protection for six months.

During syndication, the term loan was upsized $375 million and the discount was tightened from 99.

Wells Fargo Securities LLC, BofA Securities Inc., Deutsche Bank Securities Inc., JPMorgan Chase Bank and US Bank are leading the deal that will be used to refinance an existing term loan B and, as a result of the recent upsizing, for general corporate purposes, including adding cash to the balance sheet.

Ryman is a Nashville, Tenn.-based real estate investment trust that owns and operates a portfolio of large, group-oriented hotels in urban and resort markets.

Tank starts trading

Tank Holding’s strip of non-fungible $350 million incremental unitranche term loan and $150 million delayed-draw term loan debt broke for trading too, with levels quoted at 97½ bid, 98½ offered, a market source said.

Pricing on the term loan debt is SOFR+CSA plus 600 bps with a 25 bps step-up at more than 6.5x total net leverage and a 0.75% floor. The debt was sold at an original issue discount of 97 and has 101 hard call protection until March 31, 2024. CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

During syndication, the delayed-draw term loan was upsized from $100 million, pricing was lifted from SOFR plus 575 bps and the debt incurrence test was modified to 6.5x from 7x.

Antares Capital is leading the deal that will be used to finance several acquisitions, and refinance revolving credit facility draws or replenish balance sheet cash.

Tank Holding, an Olympus Partners portfolio company, is a Lincoln, Neb.-based designer and manufacturer of rigid liquid storage tanks and containers, material handling solutions, and custom products.

MoneyGram guidance

Moving to the primary market, MoneyGram held its lender call on Thursday afternoon and announced talk on its $500 million seven-year first-lien term loan B (B2/B/B+) at SOFR plus 550 bps with a 0.5% floor, an original issue discount of 92 and 101 soft call protection for one year, according to a market source.

Commitments are due on May 23, the source added.

Goldman Sachs Bank USA, Barclays, Deutsche Bank Securities Inc. and Wells Fargo Securities LLC are leading the deal that will be used with $400 million of other first-lien secured debt to help fund the buyout of the company by Madison Dearborn Partners LLC for $11.00 per share in an all-cash transaction valued at about $1.8 billion.

Closing on the buyout is expected on or before June 1.

MoneyGram is a Dallas-based digital P2P payments company.

IMA proposed terms

IMA Financial Group came out with talk of SOFR plus 425 bps with a 0.5% floor, an original issue discount of 96 to 97 and 101 soft call protection for six months on its non-fungible $200 million incremental term loan (B) due November 2028 that launched with a call in the afternoon, a market source remarked.

Commitments are due at noon ET on Wednesday, the source added.

BMO Capital Markets is leading the deal, which will be used to fund near-term acquisitions under letters of intent and to pay down revolver borrowings.

IMA Financial is a Denver-based insurance brokerage firm.

Casa Systems deadline

Casa Systems Inc. set a commitment deadline of 5 p.m. ET on Wednesday for its up to $223,883,882 million super-priority term loan B due Dec. 20, 2027, according to a market source.

Talk on the term loan is SOFR+CSA plus 650 bps with a 2% floor, and an original issue discount of 97 that is expected to be paid in kind rather than in cash. Pricing on the loan will step up to SOFR plus 700 bps on July 1, 2024 and to SOFR plus 800 bps on Jan. 1, 2025 if, in each case, more than $125 million is outstanding, and to SOFR plus 1,300 bps after Dec. 20, 2025. CSA is 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

JPMorgan Chase Bank is leading the deal, which will be used to extend an existing roughly $223 million term loan from Dec. 20, 2023.

Simultaneously with the closing of the transaction, the company intends to pay down the 2027 term loan B debt held by the consenting lenders by $40 million using available cash on hand.

The company already entered into a transaction support agreement with an ad hoc committee of lenders to exchange $133.9 million of the existing term loan B for the new super-priority term loan B.

Casa is an Andover, Mass.-based provider of open, cloud-native network solutions.

Fund flows

In other news, actively managed loan fund flows on Wednesday were negative $101 million and loan ETFs were negative $1 million, market sources said.

The tracking estimate for Thursday night’s weekly Lipper numbers for loans are outflows totaling $675 million, sources added.

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