Oryx Midstream, AOC free to trade; Charter term loan B-2 dips; Mauser tweaks timing

By Sara Rosenberg

New York, Jan. 27 – Oryx Midstream Services Permian Basin LLC tightened the original issue discount on its incremental term loan B, changed the CSA and made the debt fungible with the existing term loan B before breaking for trading, and AOC LLC’s (LSF11 A5 HoldCo LLC) incremental term loan freed up as well.

Also in the secondary market, Charter Communications Inc.’s term loan B-2 was a bit softer after the company released fourth quarter numbers that fell short of expectations.

Meanwhile, in other news, Mauser Packaging Solutions Holding Co. moved up the commitment for its term loan B, and Del Monte joined the near-term primary calendar.

Oryx reworked

Oryx Midstream modified the original issue discount guidance on its $300 million incremental term loan B (Ba3/BB-/BB) due Oct. 5, 2028 to a range of 99 to 99.5 from a range of 98 to 98.5 in the morning, and then firmed the discount at 99.25 shortly after the noon ET commitment deadline passed, according to a market source.

In addition, CSA on the incremental term loan was revised to 11.448 basis points one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate from a flat 10 bps, and the debt was switched to fungible from non-fungible, the source said.

Also, the 101 soft call protection for six months now applies to the existing term loan B as well as to the incremental term loan, instead of only being applicable to the incremental term loan.

The incremental term loan is still priced at SOFR plus 325 bps with a 0.5% floor.

Oryx breaks

On Friday, Oryx Midstream’s term loan freed to trade, with levels quoted at 99 3/8 bid, 99 7/8 offered, another source added.

Barclays is the left lead on the deal that will be used to fund a dividend to the sponsor, recapitalize the company’s balance sheet, and pay associated fees and expenses.

Stonepeak Partners is the sponsor.

Oryx Midstream is a Midland, Tex.-based midstream crude operator in the Permian Basin.

AOC hits secondary

AOC’s non-fungible$400 million incremental term loan due Oct. 15, 2028 broke for trading, with levels quoted at 97½ bid, 98 offered, a trader remarked.

Pricing on the term loan is SOFR+10 bps CSA plus 425 bps with a 0.5% floor and it was sold at an original issue discount of 97.25. The debt has 101 soft call protection for six months.

During syndication, the term loan was upsized from $350 million, and the discount was tightened from revised talk in the range of 96.5 to 97 and initial talk in the range of 96 to 96.5.

BofA Securities Inc. is the left lead on the deal that will be used with cash on hand to fund a shareholder distribution and pay related fees and expenses.

AOC is a Schiphol, Netherlands-based producer of specialty resins.

Charter softens

Charter’s term loan B-2 due 2027 slipped to 99 5/8 bid, par offered on Friday from 99¾ bid, par 1/8 offered on Thursday following the disclosure of fourth quarter earnings, a market source said. The company’s term loan B-1 due 2025 was unchanged on the day at 99 7/8 bid, par ¼ offered.

The source explained that earnings per share and net income attributable to Charter shareholders were lower than expected.

For the quarter, Charter reported net income attributable to shareholders of $1.2 billion, compared to $1.6 billion in the fourth quarter of 2021, and net income per basic common share of $7.79, versus $9.17 during the same period in 2021.

Total revenues for the quarter were $13.7 billion, up from 13.2 billion in the 2021 fourth quarter, and adjusted EBITDA for the quarter was $5.5 billion, versus $5.4 billion in the prior year.

Charter is a Stamford, Conn.-based broadband connectivity company and cable operator.

Mauser changes deadline

In more happenings, Mauser Packaging accelerated the commitment deadline for its $750 million term loan B (B2/B) due Aug. 15, 2026 to 2 p.m. ET on Monday from 5 p.m. ET on Wednesday, a market source remarked.

Talk on the term loan is SOFR plus 450 bps with no floor, an original issue discount of 96 and 101 soft call protection for six months.

BofA Securities Inc., BMO Capital Markets, Goldman Sachs Bank USA, JPMorgan Chase Bank, KKR Capital Markets and Morgan Stanley Senior Funding Inc. are leading the deal that will be used with $2.75 billion of senior secured notes and an equity investment to refinance a 2017 term loan and existing secured notes.

Mauser is an Oak Brook, Ill.-based supplier of rigid packaging products and services.

Del Monte on deck

Del Monte set a lender call for 10 a.m. ET on Monday to launch a fungible $100 million add-on term loan B due May 2029 that is talked with an original issue discount of 98.56, according to a market source.

Like the existing term loan, the add-on loan is priced at SOFR+CSA plus 425 bps with a 0.5% floor, and CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

The add-on and existing term loan are getting 101 soft call protection for six months.

Commitments are due at the close of business on Tuesday, the source added.

Goldman Sachs Bank USA is the left lead on the deal that will be used to partially repay existing ABL borrowings.

Del Monte is a producer, distributor and marketer of plant-based food products.

Fund flows

And, in other news, actively managed loan fund flows on Thursday were negative $71 million and loan ETFs were positive $46 million, market sources said.

Actively managed high-yield fund flows on Thursday were negative $37 million and high-yield ETFs were positive $30 million, sources added.

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