Citco Group accelerates commitment deadline; secondary market strengthens

By Sara Rosenberg

New York, Oct. 17 – In the primary market on Monday, Citco Group moved up the commitment deadline for its term loans that launched into syndication last week.

Meanwhile, in the secondary market, levels in general were stronger as both high yield and equities saw gains during the session.

Citco tweaks timing

Citco Group accelerated the commitment deadline for its $275 million five-year term loan A and $520 million 5½-year term loan B to 5 p.m. ET on Tuesday from 5 p.m. ET on Thursday, according to a market source.

Talk on the term loan A is SOFR plus 275 basis points with a 0.5% floor and an original issue discount of 98.5, and talk on the term loan B is SOFR plus 375 bps with a 0.5% floor, a discount of 97 and 101 soft call protection for one year.

Stone Point Capital Markets, UBS Investment Bank, JPMorgan Chase Bank, Citizens, U.S. Bank and Truist are the leads on the deal. UBS is the administrative agent.

Proceeds will be used to refinance an existing term loan B due September 2023 priced at Libor plus 250 bps with a 0% Libor floor.

Citco is a provider of financial services to hedge funds, private equity and real estate firms, institutional banks, companies and high net worth individuals.

Secondary improves

Secondary market levels in general were stronger by about a quarter to a half a point on Monday in sympathy with high yield bonds, which were generally up by about three quarters of a point to a full point, and equities, a market source remarked.

For example, Citrix Systems Inc. (Tibco Software Inc.), a Fort Lauderdale, Fla.-based provider of secure, unified digital workspace technology, saw its term loan B quoted at 90 bid, 90¾ offered, up from 89¾ bid, 90½ offered, the source added.

The Dow Jones Industrial Average closed up 550.99 points, or 1.86%, on Monday, Nasdaq closed up 354.41 points, or 3.43%, and S&P 500 closed up 94.88 points, or 2.65%.

Fund flows

In other news, actively managed loan fund flows on Friday were negative $152 million and loan ETFs were positive $48 million, sources said.

Outflows for loan funds year to date total $2.1 billion, sources added.

Loan indices gain

IHS Markit’s iBoxx loan indices rose on Friday, with the Leveraged Loan indexes (MiLLi) closing out the day up 0.06% and the Liquid Leveraged Loan indices (LLLi) closing out the day up 0.08%.

Month to date, the MiLLi is up 0.49% and year to date its down 3.16%. The LLLi is up 0.78% month to date and down 4.05% year to date.

Average secondary market bids in the U.S. on Friday were 92.31, down 0.02% from the previous day and down 4.69% year to date.

According to the IHS Markit data, some of the top advancers on Friday were Liftoff Mobile/Vungle’s September 2021 covenant-lite term loan B at 59.83, up from 57.90, Arctic Glacier’s March 2018 covenant-lite term loan B at 87.78, up from 85, and Clarion Events’ February 2018 covenant-lite term loan B2 at 71, up from 69.67.

Some top decliners on Friday were Genesis Care’s March 2020 U.S. covenant-lite term loan B at 32.83, down from 38, Equinox Fitness Clubs’ November 2017 term loan B1 at 70, down from 73.91, and NBG Home’s April 2017 covenant-lite term loan at 43.33, down from 45.

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