Nomad, Flynn, USI, Bausch break; AerCap, Creative Artists, Nouryon, Pacific Dental updated

By Sara Rosenberg

New York, Sept. 14 – Nomad Foods LLC modified the issue price on its term loan B-4, and Flynn Restaurant Group LP increased the size of its add-on term loan B and tightened the original issue discount, and then these deals freed to trade on Thursday.

Some other deals to make their way into the secondary market during the session included USI Inc. and Bausch + Lomb Corp.

Meanwhile, in other happenings, AerCap (Delos Aircraft DAC) finalized the issue price on its term loan B at the tight end of revised guidance, and Creative Artists Agency LLC updated the original issue discount on its incremental term loan B.

Also, Nouryon changed the issue price on its extended U.S. and euro term loans, and Pacific Dental Services LLC tightened the original issue discount on its add-on term loan B and added soft call protection.

Furthermore, EnergySolutions and GIP Pilot Acquisition Partners LP moved up the commitment deadlines for their term loans, Nord Anglia Education (Fugue Finance) and HireRight Holdings Corp. released price talk with launch, and Spring Education Group joined the near-term primary calendar.

Nomad tweaked, frees

Nomad Foods changed the issue price on its $700 million term loan B-4 due November 2029 to par from 99.5, according to a market source.

As before, the term loan B-4 is priced at SOFR plus 300 basis points with a 0.5% floor and has 101 soft call protection for six months.

Commitments continued to be due at noon ET on Thursday, and the term loan B-4 broke later in the day, with levels quoted at par 1/8 bid, par 5/8 offered, another source added.

Jefferies LLC, Citigroup Global Markets Inc., JPMorgan Chase Bank and Santander are leading the deal that will be used to reprice an existing $700 million term loan B-2 due November 2029 down from SOFR plus 375 bps with a 0.5% floor.

Nomad Foods is a U.K.-based frozen foods company.

Flynn reworked, trades

Flynn Restaurant Group raised its fungible add-on term loan B due Dec. 3, 2028 (B2/B) to $200 million from $150 million and moved the original issue discount to 99.25 from 98.76, a market source said.

Like the existing term loan, pricing on the add-on term loan is SOFR+CSA plus 425 bps with a 0.5% floor. CSA is ARRC standard of 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

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

Recommitments were due at 1 p.m. ET on Thursday, and the add-on term loan freed up later in the day, with levels quoted at 99 3/8 bid, 99 7/8 offered, a trader added.

BofA Securities Inc. is the left lead on the deal that will be used to refinance an existing term loan B due 2025, to repay revolving credit facility borrowings and to fund cash to the balance sheet for general corporate purposes.

Flynn Restaurant is a San Francisco-based restaurant franchisee operator.

USI hits secondary

USI’s term loan debt broke for trading as well, with the $820 million seven-year senior secured covenant-lite first-lien term loan B and the $600 million seven-year senior secured covenant-lite first-lien term loan B both quoted at 99 7/8 bid, par ¼ offered, according to a trader.

Pricing on the term loans (B1/B) is SOFR plus 325 bps with a 0% floor, and they were sold at an original issue discount of 99.75. The debt has 101 soft call protection for six months.

During syndication, the $820 million term loan was added to the transaction, and pricing on the $600 million term loan was tightened from talk of SOFR plus 375 bps with a discount of 99.5.

Morgan Stanley Senior Funding Inc., KKR Capital Markets, Goldman Sachs Bank USA, BofA Securities Inc., Barclays, SPC, Citigroup Global Markets Inc., ING and Macquarie Capital (USA) Inc. are leading the deal. BofA Securities is the administrative agent.

USI use of proceeds

USI will use the $820 million term loan, which is expected to fund in September, to refinance a 2026 term loan and repay revolver borrowings, and the $600 million term loan, which is expected to fund in November, will be used to fund a repurchase of shares from CDPQ and certain co-investors.

More than 50% of the shares held by CDPQ will be purchased in the transaction. Existing shareholder KKR is making a new equity investment of more than $1 billion in the company and will be USI’s largest single shareholder.

Both term loan tranches will become one fungible $1.42 billion term loan upon funding of the acquisition tranche.

USI is a Valhalla, N.Y.-based insurance brokerage and consulting firm.

Bausch tops OID

Bausch + Lomb’s $500 million five-year term loan B (B1/B-) freed up too, with levels quoted at 99½ bid, par offered, a market source remarked.

Pricing on the term loan is SOFR plus 400 bps with a 0% floor, and it was sold at an original issue discount of 99. The debt has 101 soft call protection for six months and ticking fees of half the margin from days 46 to 90 and the full margin thereafter.

During syndication, the discount on the term loan was tightened from talk in the range of 98 to 98.5.

JPMorgan Chase Bank is the lead left lead on the deal that will be used with $1.4 billion of senior secured notes due 2028 to fund the $1.75 billion acquisition of the Xiidra, libvatrep and AcuStream ophthalmology assets from Novartis, to repay revolver borrowings and to pay related fees and expenses.

Closing is expected at or around the end of this month, subject to regulatory approval and other customary conditions.

Bausch + Lomb is a Vaughan, Ont.-based eye health company.

AerCap finalized

Back in the primary market, AerCap firmed the issue price on its $600 million term loan B due Oct. 31, 2027 (Baa1/BBB/BBB) at par, the tight end of revised talk of 99.75 to par and tighter than initial talk of 99.5, a market source remarked.

Pricing on the term loan remained at SOFR plus 200 bps with a 0% floor, and the debt still has 101 soft call protection for six months.

Allocations went out on Thursday.

Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc. and RBC Capital Markets are leading the deal that will be used with cash from the balance sheet to refinance an existing term loan B.

Cashless roll was offered.

Closing is expected on Monday.

AerCap is a Dublin-based aviation leasing company.

Creative Artists updated

Creative Artists Agency adjusted the original issue discount on its fungible $425 million incremental term loan B due Nov. 26, 2028 (B2/B+) to 99.5 from 99.04, according to a market source.

Pricing on the incremental term loan is SOFR plus 350 bps with a 0% floor, in line with existing term loan B pricing, and the debt has 101 soft call protection for six months.

Commitments for the incremental term loan and amendment consents continued to be due at 5 p.m. ET on Thursday, the source added.

Allocations are expected on Friday morning.

BofA Securities Inc., BNP Paribas Securities Corp. and Credit Agricole are leading the deal that will be used to repurchase existing shares in support of the acquisition of a majority stake in the company by Artemis, the Pinault family’s investment company, from TPG and for general corporate purposes.

Closing is expected this year, subject to customary conditions.

Creative Artists is a Los Angeles-based entertainment and sports agency.

Nouryon revised

Nouryon tightened the original issue discount on its extended U.S. term loan due April 3, 2028 to 99 from 98.5 and on its extended euro term loan B due April 3, 2028 to 99 from talk in the range of 98 to 98.5, a market source remarked.

The extended U.S. term loan will be fungible with the company’s existing $2.5 billion term loan B due April 3, 2028 and is priced at SOFR+10 bps CSA plus 400 bps with a 0% floor, and the extended euro term loan B will be fungible with the company’s existing €1.596 billion term loan B due April 3, 2028 and is priced at Euribor plus 425 bps with a 0% floor.

The extended term loans have 101 soft call protection until Oct. 3, which matches the call protection on the existing U.S. and euro term loans.

Nouryon deadlines

Commitments for Nouryon’s U.S. term loan continued to due at 5 p.m. ET on Thursday, and commitments for the euro term loan are due at 5 a.m. ET on Friday, revised from noon ET on Thursday, the source added.

Allocations are expected on Friday.

JPMorgan Chase Bank, Barclays and HSBC are joint global coordinators and joint bookrunners on the deal. JPMorgan is the administrative agent.

Proceeds will be used to amend and extend the company’s existing $739 million first-lien term loan B due October 2025 and €94 million first-lien term loan B due October 2025.

Carlyle and GIC are the sponsors.

Nouryon is an Amsterdam-based specialty chemicals company.

Pacific Dental tightened

Pacific Dental Services revised the original issue discount on its fungible $200 million add-on covenant-lite term loan B due May 2028 (B) to 99.875 from talk in the range of 99.03 to 99.5 and added 101 soft call protection for six months, a market source said.

Pricing on the add-on term loan is SOFR+CSA plus 350 bps with a 25 bps step-down when total net leverage is less than 2.75x and a 0.75% floor. CSA is ARRC standard of 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

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

BNP Paribas Securities Corp. is the sole bookrunner on the deal and joint lead arranger with BMO Capital Markets, BofA Securities Inc., Citigroup Global Markets Inc., JPMorgan Chase Bank and Goldman Sachs Bank USA.

The term loan will be used to repay revolver borrowings and to add cash to the balance sheet for general corporate purposes.

Pacific Dental is an Irvine, Calif.-based provider of management services to affiliate dental practices.

EnergySolutions accelerated

EnergySolutions revised the commitment deadline for its $640 million seven-year term loan B (B2/B) to noon ET on Monday from 5 p.m. ET on Tuesday, according to a market source.

Talk on the term loan is SOFR plus 425 bps with a 0.5% floor, an original issue discount of 98 to 98.5 and 101 soft call protection for six months.

RBC Capital Markets is the left lead on the deal that will be used to refinance an existing roughly $546 million term loan B due 2025 priced at SOFR plus 375 bps, to partially pay down revolver borrowings and to fund the acquisition of Williams Industrial Services Group Inc.’s nuclear, fossil, energy delivery and paper mill operations for $60 million.

Triartisan is the sponsor.

EnergySolutions is a Salt Lake City-based nuclear services company.

GIP moves deadline

GIP Pilot accelerated the commitment deadline for its $1.1 billion first-lien term loan B due 2030 (Ba3/BB-) to noon ET on Friday from noon ET on Tuesday, a market source remarked.

Talk on the term loan is SOFR plus 350 bps to 375 bps with a 0% floor, an original issue discount of 98.5 to 99 and 101 soft call protection for six months.

JPMorgan Chase Bank, MUFG, Bank of Nova Scotia, Mizuho and Wells Fargo Securities LLC are leading the deal that will be used to help fund the acquisition of a 40% interest in Columbia Pipeline Holding Co. LLC, a natural gas pipelines and gas storage system comprised of Columbia Gas Transmission LLC and Columbia Gulf Transmission LLC, from TC Energy Corp.

TC Energy’s total proceeds for the transaction are expected to be about $3.9 billion in cash.

Closing is expected in the fourth quarter, subject to customary conditions.

GIP Pilot is owned by Global Infrastructure Partners.

Nord Anglia repricing

Nord Anglia launched on Thursday morning a $906 million term loan B due January 2028 talked at SOFR plus 400 bps with a 0.5% floor and an original issue discount of 99.75 to par, and a €1.515 billion term loan B due January 2028 talked at Euribor plus 450 bps with a 0% floor and a discount of 99.75 to par, a market source said.

Both term loans have 101 soft call protection for six months.

Commitments are due at 5 p.m. ET on Wednesday for the U.S. term loan and at noon ET on Wednesday for the euro term loan, the source added.

Deutsche Bank Securities Inc. and JPMorgan Chase Bank are joint physical bookrunners on the U.S. loan, and HSBC is a passive bookrunner. HSBC, Deutsche Bank and JPMorgan are joint physical bookrunners on the euro loan. Citigroup Global Markets Inc., DBS, Goldman Sachs, Morgan Stanley Senior Funding Inc., Standard Chartered, BofA Securities Inc. and E. Sun are mandated lead arrangers. HSBC is the administrative agent.

The loans will reprice an existing U.S. term loan due January 2028 down from SOFR plus 450 bps with a 0.5% floor and an existing euro term loan due January 2028 down from Euribor plus 475 bps with a 0% floor.

Nord Anglia, owned by BPEA EQT and CPP Investments, is a London-based K-12 schools platform.

HireRight holds call

HireRight held a lender call at 3 p.m. ET on Thursday to launch a $700 million five-year first-lien term loan talked at SOFR plus 425 bps with a 0% floor, an original issue discount of 98 to 98.5 and 101 soft call protection for six months, a market source remarked.

Commitments are due on Sept. 21, the source added.

Goldman Sachs Bank USA, RBC Capital Markets and SPC Capital Markets are leading the deal that will be used to refinance the company’s first-lien term loan due July 2025.

HireRight is a Nashville-based provider of technology-driven workforce risk management and compliance solutions.

Spring Education on deck

Spring Education Group set a lender call for Tuesday to launch $950 million of credit facilities, according to a market source.

The facilities consist of a $100 million five-year revolver and an $850 million seven-year term loan B, the source said.

Macquarie Capital (USA) Inc. and Goldman Sachs Bank USA are leading the deal that will be used to refinance existing credit facilities, including a $611 million first-lien term loan currently priced at SOFR+CSA plus 400 bps and a $225 million second-lien term loan priced at SOFR+CSA plus 825 bps.

The CSA on the existing term loans is ARRC standard of 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

Spring Education is a Campbell, Calif.-based provider of pre-K through 12th grade education.

Fund flows

In other news, actively managed loan fund flows on Wednesday were positive $30 million and loan ETFs were positive $106 million, market sources said.

The tracking estimate for Thursday night’s weekly Lipper numbers for loans are inflows totaling $328 million, which would be the fourth inflow for leveraged loan funds in the last five weeks, sources added.

Loan indices rise

IHS Markit’s iBoxx loan indices were stronger on Wednesday, with the Leveraged Loan indexes (MiLLi) closing out the day up 0.09% and the Liquid Leveraged Loan indices (LLLi) closing out the day up 0.1%.

Month to date, the MiLLi is up 0.71% and year to date it is up 9.64%, and the LLLi is up 0.61% month to date and up 9.07% year to date.

Average secondary market bids in the U.S. on Wednesday were 93.11, up 0.06% from the previous day and up 1.35% year to date.

According to the IHS Markit data, some of the top advancers on Wednesday were Wheel Pros’ May 2021 covenant-lite non-TSA term loan at 64.07, up from 62.25, Securus Technologies’ June 2017 covenant-lite term loan at 89.13, up from 87.57, and Gopher Resource’s March 2018 covenant-lite term loan B at 78.67, up from 77.38.

Some top decliners on Wednesday were Air Methods’ April 2017 covenant-lite term loan B at 27.75, down from 28.25, iQor’s November 2020 second out covenant-lite PIK term loan at 70.45, down from 71.42, and EyeCare Partners’ November 2021 incremental covenant-lite term loan at 73.25, down from 74.

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