AlixPartners term loan frees to trade; ION Corporates changes emerge; CentroMotion sets talk

By Sara Rosenberg

New York, July 12 – AlixPartners LLP increased the size of its incremental first-lien term loan B and finalized the original issue discount at the tight end of revised guidance, and then the debt broke for trading on Wednesday.

In more happenings, ION Corporates upsized its first-lien term loan B and trimmed the spread after accelerating the commitment deadline.

Also, CentroMotion (LSF12 Badger Bidco LLC) came out with price talk on its first-lien term loan B in connection with its lender call.

AlixPartners upsized

AlixPartners raised its fungible incremental first-lien term loan B due Feb. 4, 2028 to $400 million from $375 million and firmed the original issue discount at 99.25, the tight end of updated talk of 99.03 to 99.25 and revised from initial talk in the 99 area, according to a market source.

Pricing on the incremental term loan is SOFR+CSA plus 275 basis points with a 0.5% floor, and the debt has 101 soft call protection for six months. CSA is ARRC standard of 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

Earlier in syndication, pricing on the incremental term loan finalized at the low end of the SOFR plus 275 bps to 300 bps talk and the debt was made fungible with the company’s existing term loan, resulting in CSA being set at ARRC from initial talk of ARRC if fungible and 10 bps if non-fungible.

AlixPartners hits secondary

Recommitments for AlixPartners’ incremental term loan were due at 10:30 a.m. ET on Wednesday, and the debt freed to trade later in the day, with levels quoted at 99½ bid, par 1/8 offered, another source added.

BofA Securities Inc., HSBC Securities (USA) Inc., Goldman Sachs Bank USA, JPMorgan Chase Bank and Deutsche Bank Securities Inc. are leading the deal.

The incremental term loan will be earmarked for a distribution to shareholders before year-end, but up to half of the proceeds could be prioritized for financing tuck-in acquisitions, if suitable acquisitions are completed in the interim.

AlixPartners is a New York-based team of business and consulting professionals delivering change for clients in high impact situations.

ION revised

ION Corporates accelerated the commitment deadline for its term loan due July 2030 to noon ET on Wednesday from Thursday, and later in the day the loan was upsized to $500 million from $400 million and pricing was lowered to SOFR plus 425 bps from talk in the range of SOFR plus 450 bps to 475 bps, a market source said.

As before, the term loan has a 0% floor, an original issue discount of 96 and 101 soft call protection for six months.

Recommitments are due at noon ET on Thursday, the source added.

BNP Paribas Securities Corp. and JPMorgan Chase Bank are leading the deal. Credit Suisse is the administrative agent.

The term loan will be used to refinance $250 million of an existing U.S. term loan, to fund a $200 million distribution, for general corporate purposes, to add cash to the balance sheet and to pay any fees associated with the transaction.

ION is a provider of software and solutions focused on corporate treasury and commodities management.

CentroMotion guidance

CentroMotion held its lender call on Wednesday morning and announced talk on its $450 million first-lien term loan B (B2/B) due 2030 at SOFR plus 600 bps with a 0% floor and an original issue discount of 95.5 to 96.5, according to a market source.

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

Commitments are due at noon ET on July 25.

JPMorgan Chase Bank is leading the deal that will be used to help fund the buyout of the company by Lone Star Funds from One Rock Capital Partners LLC, to refinance an existing $537 million term loan B due August 2028, and for general corporate purposes, including payment of fees and expenses.

CentroMotion is a Waukesha, Wis.-based designer and manufacturer of highly engineered systems and solutions for industrial and transportation applications.

Medallion allocated

In other news, Medallion Midland Acquisition LP priced and allocated a fungible $100 million incremental first-lien term loan (B2/B+/BB) due Oct. 18, 2028, a market source remarked.

Pricing on the incremental term loan is SOFR+CSA plus 375 bps with a 0% floor, and the debt was sold at at an original issue discount of 98.8. CSA is ARRC standard of 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

Jefferies LLC is leading the deal that will be used to fund a distribution.

Medallion Midland is an Irving, Tex.-based midstream company focused on crude oil transportation in the Midland Basin.

Fund flows

Actively managed loan fund flows on Tuesday were positive $23 million and loan ETFs were positive $17 million, market sources said.

Actively managed high-yield fund flows on Tuesday were negative $104 million and high-yield ETFs were positive $741 million, sources added.

Loan indices rise

IHS Markit’s iBoxx loan indices were stronger on Tuesday, with the Leveraged Loan indexes (MiLLi) closing out the day up 0.13% and the Liquid Leveraged Loan indices (LLLi) closing out the day up 0.14%.

Month to date, the MiLLi is up 0.63% and year to date it is up 6.9%, and the LLLi is up 0.58% month to date and up 6.76% year to date.

Average secondary market bids in the U.S. on Tuesday were 91.92, up 0.08% from the previous day and up 0.04% year to date.

According to the IHS Markit data, some of the top advancers on Tuesday were Air Medical’s March 2018 covenant-lite term loan at 58.42, up from 55.75, iQor’s November 2020 second out covenant-lite PIK term loan at 63.67, up from 62, and Bay Club’s September 2018 covenant-lite term loan at 94.95, up from 93.13.

Some top decliners on Tuesday were SI Group/Addivant’s October 2018 covenant-lite term loan at 76.6, down from 77.88, U.S. Renal Care’s June 2019 term loan B at 44.96, down from 45.5, and CenturyLink/Lumen’s January 2020 covenant-lite term loan B at 75.7, down from 76.58.

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