RelaDyne frees to trade following changes; Nord Anglia pricing guidance surfaces

By Sara Rosenberg

New York, Jan. 13 – RelaDyne Inc. increased the size of its incremental first-lien term loan B, set the spread at the low end of guidance and tightened the original issue discount, and then the debt made its way into the secondary market on Friday.

Also, Nord Anglia Education (Fugue Finance) came out with price talk on its U.S. and euro term loans in connection with its morning lender call, and Cushman & Wakefield joined the near-term calendar with an amend and extend transaction.

RelaDyne reworked, breaks

RelaDyne raised its non-fungible incremental first-lien term loan B due December 2028 to $250 million from $200 million, firmed pricing at SOFR plus 500 basis points, the low end of the SOFR plus 500 bps to 525 bps talk, and changed the original issue discount to 96.5 from 96, a market source said.

As before, the term loan has a 0.5% floor, 101 soft call protection for six months and no CSA.

Recommitments were due at 11 a.m. ET on Friday and the term loan freed up for trading in the afternoon, with levels quoted at 97½ bid, 98½ offered, a trader added.

RBC Capital Markets, BMO Capital Markets, KeyBanc Capital Markets, Macquarie Capital (USA) Inc., Ally, Fifth Third and US Bank are leading the deal.

The new loan will be used to fund the acquisitions of Allied Oil, a distributor of lubricants, diesel exhaust fluid, and industrial services, and Grupo Lucalza, a distributor of lubricants, fuel, and related automotive supplies, and the funds from the upsizing will be used to pay down remaining ABL facility borrowings and, if there is any money left over, to add cash to the balance sheet.

RelaDyne is a Cincinnati-based provider of lubricant and fuel sales & distribution and equipment reliability services to the industrial, commercial, and automotive industries.

Nord Anglia guidance

Nord Anglia Education held its lender call on Friday morning and announced price talk on its $500 million term loan B (B1) due January 2028 and up to $1.4 billion equivalent euro term loan B (B1) due January 2028, according to a market source.

Talk on the U.S. term loan is SOFR plus 475 bps to 500 bps with a 0.5% floor and an original issue discount of 97, and talk on the euro term loan is Euribor plus 475 bps to 500 bps with a 0% floor and a discount of 97, the source said. Both term loans have 101 soft call protection for six months.

Commitments for the U.S. term loan are due at 5 p.m. ET on Jan. 25, and commitments for the euro term loan are due at noon ET on Jan. 25.

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

Proceeds will be used by the London-based K-12 schools platform to extend and refinance its existing U.S. and euro first-lien term loans due September 2024.

Cushman readies deal

Cushman & Wakefield emerged with plans to hold a lender call at 11 a.m. ET on Tuesday to launch a minimum $1 billion term loan B due January 2030, a market source remarked.

Commitments are due at 5 p.m. ET on Jan. 23, the source added.

JPMorgan Chase Bank is leading the deal that will be used to amend and extend a portion of the company’s existing roughly $2.58 billion term loan B due August 2025 that is priced at Libor plus 275 bps with a 0% floor.

Cushman & Wakefield is a Chicago-based commercial real estate services company.

Fund flows

In other news, actively managed loan fund flows on Thursday were negative $58 million and loan ETFs were positive $64 million, market sources said.

Actively managed high-yield fund flows on Thursday were negative $10 million and high-yield ETFs were positive $238 million, sources added.

Loan indices rise

IHS Markit’s iBoxx loan indices were stronger on Thursday, with the Leveraged Loan indexes (MiLLi) closing out the day up 0.19% and the Liquid Leveraged Loan indices (LLLi) closing out the day up 0.20%.

Month to date, the MiLLi is up 1.56% and the LLLi is up 1.84%.

Average secondary market bids in the U.S. on Thursday were 92.33, up 0.09% from the previous day and up 0.48% year to date.

According to the IHS Markit data, some of the top advancers on Thursday were Loyalty Ventures’ November 2021 covenant-lite term loan B at 39.67, up from 38.43, AMC Entertainment’s April 2019 covenant-lite term loan B at 60.89, up from 59.75, and Franklin Energy’s August 2019 covenant-lite term loan at 82.25, up from 80.95.

Some top decliners on Thursday were Telesat Canada’s December 2019 covenant-lite term loan at 45, down from 46.23, National CineMedia’s June 2018 term loan B at 22.55, down from 22.88, and LogMeIn’s August 2020 covenant-lite term loan B at 55.5, down from 56.25.

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