Refinitiv timing of loan, bonds expected to accelerate; Altra talks $1.34 billion

By Paul A. Harris

Portland, Ore., Sept. 11 – In the bank loan market the massive $13.5 billion of institutional bond and loan debt backing the Refinitiv deal appears unlikely to remain in the market over the coming weekend.

There is a high probability that both the bonds and the loans will be priced on Friday.

Loan investors have been expecting to have until 5 p.m. ET on Monday to turn in their commitments, according to the original timing, sources say.

Demand for the junk bonds is massive, sources say.

However demand for the $8 billion of term loan debt in the Refinitiv deal is nowhere near as substantial as demand for the bonds, a loan trader said Tuesday.

The book for the $5.5 billion seven-year covenant-light term loan B is at deal size, while that book for the $2.5 billion equivalent euro-denominated seven-year covenant-light term B has yet to reach deal size, the source said.

As with the bonds, talk on the loans remains unchanged: Libor plus 400 basis points to 425 bps, with a 0% Libor floor, at 99 to 99.5 on the dollar-denominated loan, Euribor plus 425 bps, a 0% Euribor floor, at 99 to 99.5 on the euro-denominated loan.

Altra talks $1.34 billion

Altra Industrial Motion Corp. set price talk on its $1.34 billion first-lien covenant light term loan at Libor plus 275 basis points to 300 bps.

The loan is being offered at 99.5 with a Libor floor of 0%.

Included is 101 soft call protection for six months.

Altra launched the loan at a bank meeting on Tuesday.

Ciena talks Libor plus 225 bps

Ciena Corp. set talk for its $700 million seven-year term loan B (Ba1/BB) at Libor plus 225 basis points with an original issue discount of 99.5 to 99.75.

The loan has a Libor floor of 0%.

BofA Merrill Lynch is left lead on the financing, and Deutsche Bank and JPMorgan are also arrangers.

Commitments are due by 12 p.m. ET on Sept. 20.

pH Beauty sets talk, cuts second-lien loan

pH Beauty III Holdings Inc. set talk for its $370 million credit facility with the launch on Tuesday and downsized the second-lien tranche.

The $260 million seven-year first-lien term loan (B2/B-) is talked at Libor plus 500 basis points with a 0% floor for Libor and an original issue discount of 99. This portion has 101 soft call protection for six months.

The eight-year second-lien term loan (Caa2/CCC) was reduced to $85 million from $100 million, and talk was set at Libor plus 900 basis points with a 0% Libor floor and an original issue discount of 98.5. The second-lien piece has call protection at 102 and then 101.

There is also a $25 million five-year revolver (B2/B-).

Kymera to launch Thursday

Kymera International plans to hold a bank meeting at 10 a.m. ET on Thursday in New York for a $275 million credit facility.

The financing is made up of a $240 million covenant light first-lien term loan and a $35 million ABL revolver.

Goldman Sachs, HSBC and KeyBank are the lead arrangers with Goldman on the left.

Proceeds will be used to help finance a leveraged buyout of the company by Palladium Equity Partners.

Web.com moves up timing

Web.com Group Inc. moved up timing on its $1.08 billion seven-year covenant-light first-lien term loan B (B2) and $420 million eight-year covenant-light second-lien term loan (Caa2), according to a market source.

Commitments are due at 4 p.m. ET Friday. Books had previously been expected to remain open through Monday.

As reported, price talk on the first-lien term loan is Libor plus 400 basis points to 425 bps with a 0% Libor floor and an original issue discount of 99 to 99.5, and talk on the second-lien term loan is Libor plus 800 bps to 825 bps with a 0% Libor floor and a discount of 98.5 to 99, the source said.

The first-lien term loan has 101 soft call protection for six months and amortization of 1% per annum, and the second-lien term loan has hard call protection of 102 in year one and 101 in year two.

The company’s $1.6 billion of senior secured credit facilities also include a $100 million five-year revolver (B2).

Morgan Stanley Senior Funding Inc., RBC Capital Markets and Macquarie Capital (USA) Inc. are the leads on the deal.

Proceeds will be used to help fund the buyout of the company by Siris Capital Group LLC and refinance existing debt.

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