Allison Transmission frees up; Upstream Rehabilitation, Aimbridge float talk

By Sara Rosenberg

New York, Oct. 8 – Allison Transmission Inc.’s repriced term loan B made its way into the secondary market on Tuesday, with levels quoted above its issue price.

And, over in the primary market, Upstream Rehabilitation came out with price talk on its first- and second-lien term loans with launch, Aimbridge Hospitality disclosed guidance on its add-on term loan B, and Ontic (Bleriot US Bidco Inc.) joined this week’s primary calendar.

Allison starts trading

Allison Transmission’s $646 million senior secured covenant-lite term loan B due March 29, 2026 broke for trading on Tuesday, with levels quoted at par ¼ bid, par ¾ offered, a market source remarked.

Pricing on the term loan is Libor plus 175 basis points with a 0% Libor floor and it was issued at par. The debt has 101 soft call protection for six months.

Citigroup Global Markets Inc. is leading the deal that will be used to reprice an existing term loan B down from Libor plus 200 bps with a 0% Libor floor.

Closing is expected on Friday.

Allison Transmission is an Indianapolis-based automatic transmission company and supplier of hybrid-propulsion systems.

Upstream sets guidance

Moving to the primary market, Upstream Rehabilitation held its bank meeting on Tuesday morning and announced price talk on its $520 million seven-year covenant-lite first-lien term loan (B1/B) and $175 million eight-year covenant-lite second-lien term loan (Caa1/CCC+), according to a market source.

Talk on the first-lien term loan is Libor plus 450 bps to 475 bps with a 0% Libor floor and an original issue discount of 99, and talk on the second-lien term loan is Libor plus 850 bps with a 0% Libor floor and a discount of 99, the source said.

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

The company’s $745 million of credit facilities also include a $50 million revolver (B1/B).

Commitments are due at 5 p.m. ET on Oct. 22.

Credit Suisse Securities (USA) LLC, Ally Bank, Athyrium Capital and Northwestern Mutual are leading the deal that will be used to help fund the buyout of the company by funds managed by Revelstoke Capital Partners.

Upstream is a Birmingham, Ala.-based provider of outpatient rehabilitation services.

Aimbridge reveals talk

Aimbridge Hospitality came out with original issue discount talk in the range of 99 to 99.5 on its fungible $400 million add-on covenant-lite term loan B due February 2026 that launched in the morning, a market source said.

The add-on term loan is priced at Libor plus 375 bps with a 0% Libor floor, and has 101 soft call protection for six months.

Commitments are due on Oct. 22.

J.P. Morgan Securities LLC is leading the deal that will be used to help fund the company’s merger with Interstate Hotels & Resorts.

Closing is expected by the end of this year, subject to regulatory approval and customary conditions.

Aimbridge is a Dallas-based hotel management firm. Interstate is an Arlington, Va.-based hotel operator.

Ontic on deck

Ontic set a bank meeting for 10 a.m. ET in New York on Thursday to launch $810 million of credit facilities, a market source remarked.

The facilities consist of an $85 million five-year revolver, a $475 million seven-year covenant-lite first-lien term loan B, a $75 million covenant-lite delayed-draw first-lien term loan B and a $175 million eight-year covenant-lite second-lien term loan, the source added.

Nomura Securities, Barclays and Macquarie Capital (USA) Inc. are leading the deal that will be used to help fund the buyout of the company by CVC Fund VII from BBA Aviation plc for an enterprise value of $1.365 billion.

Closing is expected in the fourth quarter, subject to shareholder approval and regulatory consents.

Ontic is a provider of high-quality, OEM-licensed parts and MRO services largely for legacy aerospace & defense platforms.

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