Vantage, Nouryon, TerraForm, Ineos Quattro break; Help at Home, Cetera revise deadlines

By Sara Rosenberg

New York, March 3 – Vantage Specialty Chemicals Inc. upsized its first-lien term loan B and firmed the issue price at the wide side of talk, and Nouryon Holding BV set the spread on its term loan B at the low end of guidance, modified the original issue discount and revised the call protection, and then these deals freed to trade on Friday.

Also, before breaking for trading, TerraForm Power Operating LLC raised pricing on its green term loan B and changed the issue prices for existing and new money lenders, and Ineos Quattro increased the total amount of its U.S. and euro term loan B and finalized the original issue discount on the tranches at the tight end of revised talk.

And, in more happenings, Help at Home LLC and Cetera Financial Group (Aretec Group Inc.) accelerated the commitment deadlines for their term loan transactions.

Vantage upsized, frees

Vantage Specialty Chemicals lifted its covenant-lite first-lien term loan B (B2/B-/B+) due Oct. 26, 2026 to $835 million from $820 million and finalized the original issue discount at 97, the wide end of the 97 to 98 talk, a market source remarked.

Pricing on the term loan remained at SOFR plus 475 basis points with a 0.5% floor, and the debt still has 101 soft call protection for six months and 0 bps CSA.

Recommitments were due at 3 p.m. ET on Friday and the term loan began trading late in the day, with levels quoted at 97 1/8 bid, 97 5/8 offered, a trader added.

Morgan Stanley Senior Funding Inc., Citigroup Global Markets Inc., KKR Capital Markets, RBC Capital Markets and MUFG are leading the deal that will be used to refinance existing first- and second-lien term loans, and pay related fees and expenses. The funds from the upsizing will pay the incremental original issue discount.

Closing is expected during the week of March 13.

Vantage Specialty is a Chicago-based specialty chemicals company.

Nouryon tweaked, trades

Nouryon firmed pricing on its $750 million five-year term loan B (B2/B+/BB-) at SOFR plus 400 bps, the low end of the SOFR plus 400 bps to 425 bps talk, adjusted the original issue discount to 99 from 98 and shortened the 101 soft call protection to six months from one year, according to a market source.

As before, the term loan has 10 bps CSA and a 0% floor.

On Friday, the term loan broke for trading, with levels quoted at 99¼ bid, 99¾ offered, another source added.

JPMorgan Chase Bank is the left lead bookrunner, administrative agent and a joint global coordinator with Barclays and HSBC.

The term loan will be used to pay a dividend, to repay a portion of outstanding revolver borrowings and for general corporate purposes.

Nouryon is an Amsterdam-based specialty chemicals company.

TerraForm revised, breaks

TerraForm lifted pricing on its $500 million green term loan B (Ba2/BB+/BB+) due May 2029 to SOFR plus 250 bps from SOFR plus 225 bps, changed the issue price for existing lenders that roll to par from 99.75 and tightened the original issue discount for new money to 99.75 from 99.5, a market source said.

The term loan still has 10 bps CSA, a 0.5% floor and 101 soft call protection for six months.

Recommitments were due at noon ET on Friday and the term loan freed to trade in the afternoon, with levels quoted at 99 7/8 bid, par 1/8 offered, a trader added.

RBC Capital Markets, Barclays, Wells Fargo Securities LLC and Citigroup Global Markets Inc. are leading the deal that will be used to reprice an existing term loan B down from SOFR+10 bps CSA plus 275 bps.

TerraForm is a New York-based owner and operator of a renewable power portfolio including solar and wind assets.

Ineos updated

Ineos Quattro increased its U.S. and euro seven-year term loan B to roughly €850 million equivalent from €750 million equivalent, and set tranche sizes at $500 million and €375 million, versus prior talk of a minimum $400 million tranche with the remainder in euro, according to a market source.

Additionally, the original issue discount on the U.S. and euro term loans finalized at 99, the tight end of revised talk of 98.5 to 99 and tighter than initial talk of 98, the source said.

As before, pricing on the U.S. term loan is SOFR+10 bps CSA plus 375 bps with a 0% floor, pricing on the euro term loan is Euribor plus 400 bps with a 0% floor, and both loans have 101 soft call protection for one year.

Previously in syndication, pricing on the U.S. term loan firmed at the low end of the SOFR plus 375 bps to 400 bps talk and pricing on the euro term loan was set at the low end of the Euribor plus 400 bps to 425 bps talk.

Ineos hits secondary

Recommitments for Ineos Quattro’s term loans were due at 11 a.m. ET on Friday, and the debt began trading in the afternoon, with the U.S. term loan quoted at 99 1/8 bid, 99 5/8 offered and the euro term loan quoted at 99½ bid, par ½ offered, another source added.

JPMorgan Chase Bank and Deutsche Bank Securities Inc. are joint physical leads on the euro term loan and JPMorgan is the left lead on the U.S. term loan. JPMorgan is the administrative agent.

The term loan debt will be used to fund a dividend and for general corporate purposes.

Along with this transaction, the company is looking to amend its existing U.S. loan tranches to transition to SOFR from Libor and add 10 bps CSA.

Ineos Quattro is a chemicals company.

Help at Home accelerated

Help at Home moved up the commitment deadline for its fungible $130 million add-on term loan due 2027 to 1 p.m. ET on Monday from noon ET on Tuesday, a market source remarked.

Pricing on the add-on term loan is SOFR+CSA plus 500 bps with a 1% floor. CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

The add-on term loan is talked with an original issue discount of 97.01.

Jefferies LLC is the left lead on the deal that will be used to repay revolver borrowings and for general corporate purposes.

Help at Home is a Chicago-based provider of home care and support to the elderly and people with disabilities in their homes and community-based settings.

Cetera moves deadline

Cetera Financial Group accelerated the commitment deadline for its non-fungible $750 million seven-year incremental first-lien term loan (B1/B) to 5 p.m. ET on Tuesday from the close of business on Wednesday, according to a market source.

Talk on the term loan is SOFR+CSA plus 450 bps to 475 bps with a 0% floor, an original issue discount of 97 and 101 soft call protection for six months from the closing date. CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate. The loan has a ticking fee of half the margin from days 46 to 90 and the full margin thereafter.

UBS Investment Bank, BMO Capital Markets, Deutsche Bank Securities Inc., Jefferies LLC, Goldman Sachs Bank USA, Truist and Antares are leading the deal that will be used to fund the acquisition of the retail wealth business of Securian Financial Group Inc.

Closing is expected in the third quarter, subject to regulatory approval.

Cetera is a San Diego-based network of financial professionals.

Fund flows

In other news, actively managed loan fund flows on Thursday were negative $91 million and loan ETFs were positive $60 million, market sources said.

Loan funds reported weekly outflows of $616 million, including negative $26 million ETFs. These were the twenty seventh outflow in the last 28 weeks totaling a net $21 billion, or 26% weekly AUM, with actively managed funds enduring a forty third consecutive weekly withdrawal, sources continued.

Dedicated loan fund AUM is down to $101 billion from $142 billion in May 2022.

Outflows for loan funds in 2023 total $4.6 billion, compared to outflows of $12.8 billion in 2022, sources added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.