Nouryon, GFL, AOC, Iridium, Pacific Dental, Alight, Creative Artists free to trade

By Sara Rosenberg

New York, Sept. 15 – Nouryon finalized sizes for its extended U.S. and euro term loans, GFL Environmental Inc. modified the issue price on its term loan B, and AOC LLC (LSF11 A5 HoldCo LLC) increased the size of its incremental term loan B and revised the original issue discount, and then all of these deals broke for trading on Friday.

Other deals to make their way into the secondary market during the session included Iridium Satellite LLC, Pacific Dental Services LLC, Alight Inc. (Tempo Acquisition LLC) and Creative Artists Agency LLC.

In more happenings, Fogo de Chao (BCPE Grill Parent Inc.) accelerated the commitment deadline for its term loan B, and CPM Holdings Inc. and Alphia Inc. joined the near-term primary calendar.

Nouryon updated

Nouryon firmed the size of its extended U.S. term loan due April 3, 2028 at $751 million and the size of its extended euro term loan B due April 3, 2028 at €96 million, according to a market source.

The extended U.S. term loan will be fungible with the company’s existing $2.5 billion term loan B due April 3, 2028 and is priced at SOFR+10 bps CSA plus 400 bps with a 0% floor, and the extended euro term loan B will be fungible with the company’s existing €1.596 billion term loan B due April 3, 2028 and is priced at Euribor plus 425 bps with a 0% floor, in line with existing U.S. and euro term loan pricing.

Both extended term loans (B2/B+/BB-) have an original issue discount of 99 and 101 soft call protection until Oct. 3, which matches the call protection on the existing U.S. and euro term loans.

Previously in syndication, the discount on the U.S. term loan was changed from 98.5, and the discount on the euro term loan was revised from talk in the range of 98 to 98.5.

Nouryon starts trading

During the session, Nouryon’s extended term loans made their way into the secondary market, with the U.S. term loan quoted at 99¾ bid, par ¼ offered and the euro term loan quoted at 99 bid, 99¾ offered, traders added.

JPMorgan Chase Bank, Barclays and HSBC are leading the deal that will be used to amend and extend the company’s existing $739 million first-lien term loan B due October 2025 and €94 million first-lien term loan B due October 2025, and to pay transaction fees and expenses.

Carlyle and GIC are the sponsors.

Nouryon is an Amsterdam-based specialty chemicals company.

GFL revised, frees

GFL Environmental adjusted the issue price on its $729 million term loan B due May 2027 to par from 99.75, a market source said.

Pricing on the term loan remained at SOFR plus 250 bps with a 0.5% floor, and the debt still has 101 soft call protection for six months.

Recommitments were due at 10:30 a.m. ET on Friday and the term loan B freed to trade later in the day, with levels quoted at par 1/8 bid, par 3/8 offered, another source added.

JPMorgan Chase Bank and Barclays are leading the deal. Barclays is the administrative agent.

The loan will be used to reprice an existing term loan B down from SOFR+10 bps CSA plus 300 bps with a 0.5% floor.

GFL is a Vaughan, Ont.-based environmental services company.

AOC tweaked, breaks

AOC raised its fungible incremental term loan B due Oct. 15, 2028 to $400 million from $375 million and changed the original issue discount to 98.75 from talk in the range of 98 to 98.5, a market source remarked.

As before, pricing on the incremental term loan is SOFR+10 bps CSA plus 425 bps with a 0.5% floor, in line with existing term loan pricing, and the debt has 101 soft call protection for six months.

Commitments continued to be due at noon ET on Friday and the term loan hit the secondary market later in the day, with levels quoted at 98 7/8 bid, 99 3/8 offered, a trader added.

BofA Securities Inc., RBC Capital Markets, BNP Paribas Securities Corp., Citigroup Global Markets Inc., Goldman Sachs Bank USA and Truist are leading the deal that will be used with cash on hand to return capital to shareholders and pay related fees and expenses.

AOC is a specialty chemicals company with U.S. headquarters in Collierville, Tenn.

Iridium frees up

Iridium Satellite’s $1.5 billion seven-year covenant-lite term loan B (Ba3/BB/BBB-) began trading in the morning, with levels quoted at par bid, par 3/8 offered, according to a market source.

Pricing on the term loan is SOFR plus 250 bps with a 0.75% floor and it was sold at an original issue discount of 99.75. The debt has 101 soft call protection for six months.

During syndication, the discount on the term loan was revised from talk in the range of 99 to 99.5 and the 10 bps CSA was removed.

Deutsche Bank Securities Inc., Wells Fargo Securities LLC, Barclays and RBC Capital Markets are leading the deal that will be used to refinance an existing term loan B due 2026 priced at SOFR+10 bps CSA plus 250 bps with a 0.75% floor.

Iridium is a McLean, Va.-based provider of mobile satellite communications services.

Pacific Dental tops par

Pacific Dental Services’ fungible $200 million add-on covenant-lite term loan B due May 2028 (B) broke as well, with levels quoted at par 1/8 bid, par 5/8 offered, a market source said.

Pricing on the add-on term loan is SOFR+CSA plus 350 bps with a 25 bps step-down when total net leverage is less than 2.75x and a 0.75% floor. CSA is ARRC standard of 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate. The debt was sold at an original issue discount of 99.875 and has 101 soft call protection for six months.

During syndication, the discount on the add-on term loan was tightened from talk in the range of 99.03 to 99.5 and the soft call protection was added.

BNP Paribas Securities Corp. is the sole bookrunner and a joint lead arranger with BMO Capital Markets, BofA Securities Inc., Citigroup Global Markets Inc., JPMorgan Chase Bank and Goldman Sachs Bank USA.

The term loan will be used to repay revolver borrowings and to add cash to the balance sheet for general corporate purposes.

Pacific Dental is an Irvine, Calif.-based provider of management services to affiliate dental practices.

Alight hits secondary

Alight’s $2.507 billion term loan B due Aug. 31, 2028 freed up too, with levels quoted at par bid, par ¼ offered, according to a market source.

Pricing on the term loan is SOFR plus 275 bps with a 0.5% floor and it was issued at par. The debt has 101 soft call protection for six months.

BofA Securities Inc. is leading the deal that will be used to reprice an existing term loan B down from SOFR plus 300 bps with a 0.5% floor.

Alight is a Lincolnshire, Ill.-based provider of integrated, cloud-based human capital and business solutions.

Creative Artists breaks

Creative Artists Agency’s fungible $425 million incremental term loan B (B2/B+) due Nov. 26, 2028 was another deal to emerge in the secondary market during the session, and levels were quoted at 99 7/8 bid, par ¼ offered, a market source remarked.

Pricing on the incremental term loan is SOFR plus 350 bps with a 0% floor, in line with existing term loan B pricing, and the new debt was sold at an original issue discount of 99.5. The loan has 101 soft call protection for six months.

During syndication, the discount on the incremental term loan was revised from 99.04.

BofA Securities Inc., BNP Paribas Securities Corp. and Credit Agricole are leading the deal that will be used to repurchase existing shares in support of the acquisition of a majority stake in the company by Artemis, the Pinault family’s investment company, from TPG and for general corporate purposes.

Closing is expected this year, subject to customary conditions.

Creative Artists is a Los Angeles-based entertainment and sports agency.

Fogo de Chao accelerated

Back in the primary market, Fogo de Chao moved up the commitment deadline for its $550 million seven-year covenant-lite term loan B (B3/B-) to noon ET on Wednesday from noon ET on Sept. 22, a market source remarked.

Talk on the term loan is SOFR plus 500 bps with a 0.5% floor, an original issue discount of 97 and 101 soft call protection for six months.

Deutsche Bank Securities Inc., Jefferies LLC and UBS Investment Bank are leading the deal that will be used to help fund the buyout of the company by Bain Capital Private Equity from Rhone Capital.

Closing is expected this month, subject to customary conditions, including regulatory approvals.

Fogo de Chao is a Dallas-based restaurant chain focused on fire-roasting high-quality meats.

CPM on deck

CPM Holdings set a lender call for 1:30 p.m. ET on Monday to launch a $1.13 billion five-year first-lien term loan (B), according to a market source.

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

Jefferies LLC is the left lead on the deal that will be used to refinance existing debt and make a one-time distribution to shareholders.

CPM is a provider of highly engineered processing and automation equipment, aftermarket parts and service with exposure to attractive megatrends.

Alphia readies loan

Alphia will hold a lender call at 1 p.m. ET on Monday to launch a $640 million term loan B, a market source remarked.

Goldman Sachs Bank USA, Jefferies LLC, BMO Capital Markets, Citizens, Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc., Rabobank, SMBC and Wells Fargo Securities LLC are leading the deal that will be used to help fund the buyout of the company by PAI Partners from J.H. Whitney Capital Partners.

Closing is subject to customary conditions, including the receipt of certain regulatory approvals.

Alphia is a Denver-based contract manufacturer of dry pet food and treats.

Fund flows

In other news, actively managed loan fund flows on Thursday were positive $9 million and loan ETFs were positive $85 million, market sources said.

Loan funds reported weekly inflows totaling $343 million, with positive $302 million ETFs. These were the fourth inflows in the last five weeks and the largest for the asset class since May 2022.

Dedicated AUM for loan funds is now $92.3 billion, compared with $142.4 billion in May 2022.

Year to date, outflows for loan funds total $18.2 billion, with negative $32 million ETFs, sources added.

Loan indices rise

IHS Markit’s iBoxx loan indices were stronger on Wednesday, with the Leveraged Loan indexes (MiLLi) closing out the day up 0.09% and the Liquid Leveraged Loan indices (LLLi) closing out the day up 0.1%.

Month to date, the MiLLi is up 0.71% and year to date it is up 9.64%, and the LLLi is up 0.61% month to date and up 9.07% year to date.

Average secondary market bids in the U.S. on Wednesday were 93.11, up 0.06% from the previous day and up 1.35% year to date.

According to the IHS Markit data, some of the top advancers on Wednesday were Wheel Pros’ May 2021 covenant-lite non-TSA term loan at 64.07, up from 62.25, Securus Technologies’ June 2017 covenant-lite term loan at 89.13, up from 87.57, and Gopher Resource’s March 2018 covenant-lite term loan B at 78.67, up from 77.38.

Some top decliners on Wednesday were Air Methods’ April 2017 covenant-lite term loan B at 27.75, down from 28.25, iQor’s November 2020 second out covenant-lite PIK term loan at 70.45, down from 71.42, and EyeCare Partners’ November 2021 incremental covenant-lite term loan at 73.25, down from 74.

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