Authentic Brands, Cirque du Soleil free to trade; Qlik Technologies discloses price talk

By Sara Rosenberg

New York, March 1 – Authentic Brands Group (ABG Intermediate Holdings 2 LLC) reduced the size of its delayed-draw first-lien term loan B-2 and finalized the spread on the delayed-draw and funded debt at the high end of guidance before breaking for trading on Wednesday, and Cirque du Soleil’s first-lien term loan B freed up as well.

In more happenings, Qlik Technologies Inc. (Project Alpha Intermediate Holding Inc.) released price talk on its amended and extended term loan B in connection with its afternoon lender call.

Authentic updated

Authentic Brands trimmed its delayed-draw first-lien term loan B-2 due Dec. 21, 2028 to $500 million from $600 million, and set pricing on the delayed-draw term loan and the funded $1.525 billion first-lien term loan B-2 due Dec. 21, 2028 at SOFR plus 400 basis points, the high end of the SOFR plus 375 bps to 400 bps talk, a market source remarked.

As before, the term loan debt (B1/B) has a 0% floor, CSA of 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate, an original issue discount of 98.5 and 101 soft call protection for six months.

On Wednesday, the term loan B-2 debt made its way into the secondary market, with levels quoted at 98½ bid, 98 7/8 offered, another source added.

BofA Securities Inc. is the left lead on the deal that will be used to refinance an existing $1.525 billion first-lien term loan and fund a potential acquisition.

The company is also upsizing and extending its existing revolver to a new five-year maturity.

Authentic Brands is a New York-based brand development, marketing and entertainment company.

Cirque hits secondary

Cirque du Soleil’s $550 million seven-year covenant-lite first-lien term loan B (B2/B+) freed to trade on Wednesday, with levels quoted at 99¼ bid, par offered, according to a market source.

Pricing on the term loan is SOFR plus 425 bps with a 0.5% floor and it was sold at an original issue discount of 99. The debt has 101 soft call protection for six months and 0 bps CSA.

During syndication, pricing on the term loan firmed at the low end of the SOFR plus 425 bps to 450 bps talk and the discount was tightened from 98.

Morgan Stanley, Goldman Sachs Bank USA, JPMorgan Chase Bank and RBC Capital Markets are leading the deal that will be used to refinance certain existing debt and to pay related fees, costs and expenses.

The company also plans on getting a $100 million revolver.

Closing is expected on March 8.

Cirque du Soleil is a Montreal-based producer of live artistic entertainment.

Qlik holds call

Qlik Technologies held a lender call at 1 p.m. ET on Wednesday, launching a $1,389,836,000 covenant-lite term loan B (B3/B) due April 2027 at talk of SOFR plus 400 bps to 425 bps with a 0.5% floor, an original issue discount of 99 to 99.5, 101 soft call protection for six months and 0 bps CSA, a market source said.

Commitments are due at noon ET on March 8, the source added.

Morgan Stanley Senior Funding Inc. is the left lead on the deal that will be used to amend and extend an existing term loan B due 2024.

Qlik is a King of Prussia, Pa.-based data analytics company.

Help at Home launches

Help at Home launched with a 10 a.m. ET call a fungible $130 million add-on term loan due 2027 talked with an original issue discount of 97.01, according to a market source.

Pricing on the add-on term loan is SOFR+CSA plus 500 bps with a 1% floor. CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

Commitments are due at noon ET on Tuesday, the source added.

Jefferies LLC is the left lead on the deal that will be used to repay revolver borrowings and for general corporate purposes.

Help at Home is a Chicago-based provider of home care and support to the elderly and people with disabilities in their homes and community-based settings.

Koppers holds call

Koppers Inc. held its lender call at 1 p.m. ET that launched its $400 million seven-year covenant-lite term loan B (Ba3/BB-/BB+), which is talked at SOFR+10 bps CSA plus 350 bps to 375 bps with a 0.5% floor, an original issue discount of 97.5 to 98 and 101 soft call protection for six months, a market source remarked.

Commitments are due at noon ET on March 9.

Wells Fargo Securities LLC, BofA Securities Inc., Fifth Third, PNC, Citizens and Truist are leading the deal that will be used with a revolver draw to refinance $500 million 6% senior notes due February 2025 and pay transaction related fees and expenses.

Koppers is a Pittsburgh-based provider of treated wood products, wood treatment chemicals and carbon compounds.

Fund flows

In other news, actively managed loan fund flows on Tuesday were negative $29 million and loan ETFs were positive $18 million, market sources said.

Actively managed high-yield fund flows on Tuesday were positive $52 million and high-yield ETFs were negative $69 million.

AUM for the high-yield ETFs has declined by $11 billion to $60 billion since mid-January, but is still four times the size as the loan ETF universe of $16 billion, sources added.

Loan indices mixed

IHS Markit’s iBoxx loan indices were mixed on Tuesday, with the Leveraged Loan indexes (MiLLi) closing out the day up 0.01% and the Liquid Leveraged Loan indices (LLLi) closing out the day unchanged.

For the month of February, the MiLLi is up 0.60% and year to date it is up 3.20%, and the LLLi is up 0.29% for the month of February and up 2.92% year to date.

Average secondary market bids in the U.S. on Tuesday were 91.79, up 0.07% from the previous day and down 0.11% year to date.

According to the IHS Markit data, some of the top advancers on Tuesday were Genesis Care’s March 2020 U.S. covenant-lite term loan B at 24, up from 20.50, Isagenix’s June 2018 term loan at 34.94, up from 33.44, and Mitel Networks’ November 2018 covenant-lite fourth out no roll up term loan at 26.11, up from 25.46.

Some top decliners on Tuesday were Loyalty Ventures’ November 2021 covenant-lite term loan B at 30, down from 34.50, United Road Services’ September 2017 covenant-lite term loan B at 52.33, down from 57.07, and Venator’s June 2017 covenant-lite term loan B at 72, down from 75.08.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.