Hertz updates surface; 84 Lumber, TekniPlex, Iqvia, Flutter, System One set price talk

By Sara Rosenberg

New York, Nov. 13 – In the primary market on Tuesday, Hertz Corp. increased the size of its non-fungible incremental senior secured term loan B, finalized the spread at the low end of talk and set the original issue discount at the tight end of guidance.

Also, 84 Lumber Co., TekniPlex Inc. (Trident TPI Holdings Inc.), Iqvia Inc., Flutter Entertainment plc and System One released price talk with launch, and IMA Financial Group and PremiStar joined this week’s new issue calendar.

In its deal, Hertz lifted its non-fungible incremental senior secured term loan B due June 30, 2028 to $500 million from $400 million, firmed pricing at SOFR plus 375 basis points, the low end of the SOFR plus 375 bps to 400 bps talk, and set the original issue discount at 98, the tight end of the 97.5 to 98 talk, a market source said.

As before, the incremental term loan has a 0% floor and 101 soft call protection for six months.

Recommitments were due at 5 p.m. ET on Monday, the source added.

Barclays, Goldman Sachs Bank USA and others to be announced are the joint lead arrangers and bookrunners on the deal. Barclays is the administrative agent.

The incremental term loan will be used to repay outstanding borrowings under the company’s existing senior secured revolver due 2026, to pay transaction related fees and expenses, and for general corporate purposes.

Hertz is an Estero, Fla.-based car rental company.

84 Lumber holds call

84 Lumber emerged in the morning with plans to hold a lender call at 11 a.m. ET on Monday to launch a $450 million seven-year covenant-lite term loan B (Ba2/BB-) talked at SOFR+10 bps CSA plus 300 bps with a 0% floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months, according to a market source.

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

Wells Fargo Securities LLC is the left lead on the deal that will be used with about $100 million of cash on hand to refinance an existing term loan B due 2026.

84 Lumber is an Eighty Four, Pa.-based supplier of building materials, manufactured components and services for single and multi-family residences and commercial buildings.

TekniPlex guidance

TekniPlex launched on its morning lender call its fungible $200 million incremental first-lien term loan B-4 due Sept, 17, 2028 (B2/B-) with original issue discount talk of 97 to 97.5, a market source remarked.

Pricing on the incremental term loan is SOFR plus 525 bps with a 0.5% floor, and the debt has 101 soft call protection for six months.

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

UBS Investment Bank, Jefferies LLC and BMO Capital Markets are leading the deal that will be used to fund the acquisition of Seisa Medical Holdings Inc., an El Paso, Tex.-based medical device manufacturer.

Closing on the acquisition is subject to regulatory approval.

Pro forma for the transaction, the term loan B-4 will total about $324 million.

TekniPlex is a Wayne, Pa.-based provider of health care and consumer material solutions.

Iqvia comes to market

Iqvia held a lender call at 11 a.m. ET, launching a $1.25 billion term loan B due 2031 (Baa3/BBB-) talked at SOFR plus 225 bps to 250 bps with a 0% floor, an original issue discount of 99 and 101 soft call protection for six months, a market source said.

Commitments are due at 5 p.m. ET on Nov. 20, the source added.

JPMorgan Chase Bank is the left lead on the deal. BofA Securities Inc. is the administrative agent.

The term loan will be used with senior secured notes to repay an existing euro term loan B-1 due 2024 and to repay a portion of U.S. term loan borrowings due 2025.

Iqvia is a Danbury, Conn.-based provider of advanced analytics, technology solutions and contract research services to the life sciences industry.

Flutter launches

Flutter Entertainment hosted a lender call at 10:15 a.m. ET to launch a $2.68 billion term loan B due 2030 (BBB-/BBB) talked at SOFR plus 250 bps to 275 bps with a 0.5% floor, an original issue discount of 99.5 and 101 soft call protection for six months, according to a market source.

Commitments are due at 5 p.m. ET on Thursday, the source added.

JPMorgan Chase Bank, Wells Fargo Securities LLC, BofA Securities Inc. and Barclays are global coordinators on the deal and bookrunners with Citigroup Global Markets Inc., Mediobanca, NatWest, Santander, AIB, Citizens, Lloyds and Mizuho. JPMorgan is the administrative agent.

The company is also looking to get a £1.5 billion equivalent term loan A and plans to upsize its revolver to £1 billion from £750 million.

The new debt will be used to refinance a term loan B due 2026 and an existing term loan A.

Flutter Entertainment is a Dublin-based sports betting and gaming operator.

System One talk

System One came out with original issue discount talk of 99.03 on its fungible $65 million add-on covenant-lite term loan B due March 2028 in connection with its morning lender call, a market source said.

Like the existing term loan B, the add-on term loan is priced at SOFR plus 400 bps with a 0.75% floor.

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

Truist Securities is leading the deal that will be used to fund an acquisition.

System One, an Oaktree Capital Management portfolio company, is a Pittsburgh-based provider of specialized workforce solutions and integrated services.

IMA joins calendar

IMA Financial Group scheduled a lender call for 11 a.m. ET on Tuesday to launch a fungible $350 million add-on covenant-lite term loan B-1 due November 2028, a market source remarked.

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

BMO Capital Markets is leading the deal that will be used to refinance an existing term loan B-2, repay revolver borrowings and fund an acquisition under a letter of intent.

New Mountain Capital, SkyKnight Capital and the Stephens Group are the sponsors.

IMA Financial is a Denver-based property and casualty and employee-benefit specialty insurance brokerage.

PremiStar on deck

PremiStar set a lender call for 10 a.m. ET on Tuesday to launch a fungible $75 million add-on covenant-lite first-lien term loan due August 2028, according to a market source.

Truist Securities is the left lead on the deal that will be used for general corporate purposes, including to fund near-term acquisitions.

Partners Group is the sponsor.

PremiStar, formerly known as Reedy Industries, is a Deerfield, Ill.-based provider of commercial heating, ventilation and air conditioning services.

Fund flows

In other news, actively managed loan fund flows on Friday were negative $38 million and loan ETFs were positive $84 million, sources said.

Year to date, outflows for loan funds total $18.1 billion, with positive $1.4 billion ETFs, sources added.

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