Dealer Tire, Summit Materials, Hayward, BJ’s, Travel + Leisure, STG break; Vistage tweaked

By Sara Rosenberg

New York, Dec. 9 – Dealer Tire upsized its term loan B, Summit Materials finalized the spread on its term loan B at the low end of revised guidance and tightened the original issue discount for a second time, and Hayward Industries Inc. firmed pricing on its incremental term loan at the tight side of talk, and then these deals freed to trade on Friday.

Other deals to make their way into the secondary market during the session included BJ’s Wholesale Club Inc., Travel + Leisure Co. and STG Logistics.

And, in more happenings, Vistage Worldwide increased the size of its add-on first-lien term loan, while leaving price talk and the commitment deadline unchanged.

Dealer Tire revised, frees

Dealer Tire lifted its extended term loan B due 2027 to $1.43 billion from $1.345 billion, and left pricing at SOFR plus 450 basis points with no CSA, a 0.5% floor and an original issue discount of 97.5, according to a market source.

The extended term loan still has 101 soft call protection for six months.

Commitments were due at 2:30 p.m. ET on Friday and the term loan began trading later in the day, with levels quoted at 98¼ bid, 98¾ offered, another source added.

JPMorgan Chase Bank, BMO Capital Markets, Truist, Jefferies LLC, Citizens, RBC Capital Markets, PNC, US Bank, BofA Securities Inc., Barclays and Goldman Sachs Bank USA are leading the deal that will be used to amend and extend an existing term loan B from 2025 currently priced at Libor plus 425 bps with a 0% floor, and the funds from the upsizing will be used for general corporate purposes.

Dealer Tire is a Cleveland-based manager of replacement tire and parts programs for automotive OEMs.

Summit tweaked, trades

Summit Materials firmed pricing on its $510 million five-year term loan B (Ba1) at SOFR plus 300 basis points, the low end of revised talk of SOFR plus 300 bps to 325 bps and down from initial talk of SOFR plus 325 bps, and modified the original issue discount to 99 from revised talk of 98.5 and initial talk in the range of 97 to 97.5, a market source remarked.

As before, the term loan has 10 bps CSA, a 0% floor and 101 soft call protection for six months.

Commitments continued to be due at noon ET on Friday and the term loan broke for trading in the afternoon, with levels quoted at 99¼ bid, 99¾ offered, another source added.

BofA Securities Inc. is the left lead on the deal that will be used to refinance an existing term loan B due 2024 that is priced at Libor plus 225 bps with a 0% floor.

Summit Materials is a Denver-based construction materials company.

Hayward updated, breaks

Hayward Industries finalized the spread on its non-fungible $125 million incremental senior secured term loan (B2/BB) due May 2028 at SOFR plus 325 bps, the low end of the SOFR plus 325 bps to 350 bps talk, according to a market source.

The incremental term loan still has 10 bps CSA, a 0.5% floor, an original issue discount of 96 and 101 soft call protection for six months.

During the session, the incremental term loan began trading, with levels quoted at 96¼ bid, 97 offered, another source added.

BofA Securities Inc. and Truist are leading the deal that will be used to repay asset-based revolver borrowings and for general corporate purposes.

Closing is expected this month.

Hayward is a Berkeley Heights, N.J.-based manufacturer of residential and commercial pool and spa equipment as well as industrial flow control products.

BJ’s starts trading

BJ’s Wholesale Club’s $450 million covenant-lite first-lien term loan due February 2027 broke in the afternoon, with levels quoted at par bid, par 3/8 offered, a trader said.

Pricing on the term loan is SOFR plus 275 bps with no CSA and a 0% floor. The debt was sold at an original issue discount of 99.75 for new money and has a 25 bps extension fee for existing lenders. The loan has 101 soft call protection for six months.

During syndication, the size of the term loan was revised from up to $452 million at launch, the discount was tightened from 99.625 and the extension fee was reduced from 37.5 bps.

Nomura Securities, BofA Securities Inc., Wells Fargo Securities LLC and Deutsche Bank Securities Inc. are leading the deal that will be used to amend and extend the maturity of $450 million of the company’s existing first-lien term loan by three years from February 2024.

With this transaction, the company will repay $151.92 million of the existing first-lien term loan with funds from a draw on its ABL revolver. As of Oct. 29, there was $601.9 million outstanding on the first-lien term loan.

Current pricing on the existing first-lien term loan is Libor plus 200 bps with a 0% floor.

BJ’s, a Westborough, Mass.-based warehouse club operator, expects to close on the loan in early January.

Travel tops OID

Travel + Leisure’s $300 million seven-year incremental term loan also emerged in the secondary market, with levels quoted at 97¾ bid, 98½ offered, a market source remarked.

Pricing on the term loan is SOFR+10 bps CSA plus 400 bps with a 0.5% floor and it was sold at an original issue discount of 97.5. The debt has 101 soft call protection for six months.

During syndication, pricing on the term loan was reduced from talk in the range of SOFR plus 425 bps to 450 bps and the discount was revised from 97.

JPMorgan Chase Bank is the left lead on the deal. BofA Securities Inc. is the administrative agent.

The loan will be used with cash on hand and revolver borrowings to refinance the company’s 3.9% notes due 2023.

Travel + Leisure is an Orlando, Fla.-based membership and leisure travel company.

STG hits secondary

STG Logistics’ non-fungible $39 million incremental first-lien term loan freed to trade, with levels quoted at 96½ bid, 96¾ offered, according to a market source.

Pricing on the incremental term loan is SOFR plus 600 bps with a 0.75% floor and it was sold at an original issue discount of 96.5.

Antares Capital is leading the deal that will be used to finance acquisitions under letters on intent.

STG is a Bensenville, Ill.-based provider of facilities-based containerized logistics services.

Vistage upsized

Vistage Worldwide raised its fungible add-on first-lien term loan to $55 million from $44 million, a market source said.

Like the existing first-lien term loan, the add-on is priced at SOFR+CSA plus 525 bps with a 0.75% floor. CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

Original issue discount talk on the add-on term loan remained at 96.

Commitments continue to be due at noon ET on Monday, the source added.

Golub Capital is leading the deal that will be used to fund an acquisition.

Vistage is a San Diego-based member-based advisory company for executives of small- and medium-sized businesses.

Fund flows

In other news, actively managed loan fund flows on Thursday were negative $192 million and loan ETFs were negative $101 million, according to market sources.

Loan funds reported weekly outflows of $408 million, including positive $68 million ETFs. This was the sixteenth consecutive outflow and the twenty fifth outflow over the last 26 weeks.

The last 16 weeks’ outflows totaling $13.9 billion equate to 16.3% of weekly AUM, sources added.

Outflows for loan funds year to date total $8.2 billion, including negative $2.6 billion ETF.

Loan indices mixed

IHS Markit’s iBoxx loan indices were mixed on Thursday, with the Leveraged Loan indexes (MiLLi) closing out the day unchanged and the Liquid Leveraged Loan indices (LLLi) closing out the day up 0.04%.

Month to date, the MiLLi is up 0.09% and year to date its down 1.55%. The LLLi is up 0.27% month to date and down 2.21% year to date.

Average secondary market bids in the U.S. on Thursday were 92.19, down 0.02% from the previous day and down 4.81% year to date.

According to the IHS Markit data, some of the top advancers on Thursday were Air Methods’ April 2017 covenant-lite term loan B at 56.28, up from 53.86, Endurance International/Endure Digital’s February 2021 covenant-lite term loan B at 90.29, up from 89.47, and Xplornet’s October 2021 covenant-lite term loan at 79.15, up from 78.5.

Some top decliners on Thursday were Tractmanager/Symplr’s December 2020 covenant-lite term loan at 83, down from 92.85, Pure Fishing’s December 2018 covenant-lite term loan at 64.50, down from 66.88, and Tritech Software/SuperMoose’s August 2018 covenant-lite term loan B at 84.83, down from 87.04.

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