Duff & Phelps incremental term loan wraps par; New Fortress Energy discloses price talk

By Sara Rosenberg

New York, Feb. 19 – Duff & Phelps’ (Deerfield Dakota Holding LLC) incremental first-lien term loan was seen trading wrapped around par on Tuesday, which is above the debt’s original issue discount that finalized tighter than talk due to demand.

Meanwhile, in the primary market, New Fortress Energy (NFE Atlantic Holdings LLC) released price talk on its term loan B with launch, and Tivity Health Inc. joined this week’s new issue calendar.

Duff trades above OID

Duff & Phelps’ non-fungible $280 million incremental first-lien term loan (B3/B) due Feb. 13, 2025 was quoted at 99¾ bid, 100¼ offered on Tuesday, according to a market source.

The debt broke late Friday but was not quoted, the source added.

Pricing on the incremental loan is Libor plus 400 basis points with a 1% Libor floor and it was sold at an original issue discount of 99.5. The loan has 101 soft call protection for six months.

During syndication, pricing on the incremental term loan finalized at the low end of the Libor plus 400 bps to 425 bps talk, and the discount was moved from 98.5.

UBS Investment Bank is the left lead on the deal that will be used to fund the acquisition of Prime Clerk.

Closing is expected this quarter, subject to customary conditions and regulatory approval.

Duff & Phelps is a New York-based independent adviser with expertise in the areas of valuation, corporate finance, disputes and investigations, compliance and regulatory matters, and other governance-related issues. Prime Clerk is a New York-based claims and noticing administrator.

New Fortress guidance

Switching to the primary market, New Fortress Energy held its lenders’ presentation on Tuesday and announced talk of Libor plus 500 bps with a step-down to Libor plus 450 bps upon a Ba3 corporate rating, a 0% Libor floor and an original issue discount of 98 on its $750 million seven-year senior secured term loan B (B2), a market source remarked.

The term loan has hard call protection of 103 in year one and 101 in year two.

Commitments are due on March 1, the source added.

Morgan Stanley Senior Funding Inc. and Barclays are leading the deal that will be used to complete the construction of infrastructure, including liquefaction and terminal facilities, to support contracted cash flows, to repay existing debt and for general corporate purposes.

New Fortress Energy is a New York-based energy infrastructure company. The company’s initial public offering priced on Jan. 31 at a $2.3 billion market capitalization.

Tivity readies deal

Tivity Health set a bank meeting for 10 a.m. ET in New York on Wednesday to launch $1,305,000,000 of credit facilities split between a $125 million revolver, a $400 million five-year first-lien term loan A and a $780 million seven-year first-lien term loan B, according to a market source.

Both term loans have 101 soft call protection for six months, the source said.

Commitments are due at 5 p.m. ET on March 5.

Credit Suisse Securities (USA) LLC, SunTrust Robinson Humphrey Inc., Citigroup Global Markets Inc., Citizens Bank, Fifth Third, Goldman Sachs Bank USA and Regions Capital are leading the deal.

Tivity buying Nutrisystem

Proceeds from Tivity’s credit facilities and cash on hand will fund the acquisition of Nutrisystem Inc. for $38.75 per share in cash and 0.2141 of a Tivity Health share for each share of Nutrisystem common stock. The transaction values Nutrisystem at an enterprise value of $1.3 billion and an equity value of $1.4 billion.

Closing is expected this quarter, subject to the approval of Nutrisystem shareholders, the receipt of regulatory approval and other customary conditions.

Tivity is a Franklin, Tenn.-based provider of fitness and health improvement programs. Nutrisystem is a Fort Washington, Pa.-based provider of weight management products and services.

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