WHP Global breaks for trading after size change; Cobham strengthens; RelaDyne accelerated

By Sara Rosenberg

New York, Jan. 11 – WHP Global (WH Borrower LLC) increased the size of its non-fungible covenant-lite first-lien term loan B and then the debt freed to trade on Wednesday above its original issue discount.

Also, Cobham plc’s U.S. term loan B was higher in the secondary market as the company is offering to prepay some of the debt with asset sale proceeds and the market in general was stronger.

And, in more happenings, RelaDyne Inc. moved up the commitment deadline for its incremental first-lien term loan B to this week from next week.

WHP upsizes

WHP Global raised its non-fungible covenant-lite first-lien term loan B (B2/B) due Feb. 15, 2027 to $175 million from $150 million, and kept pricing at SOFR plus 550 basis points with a 0.5% floor and an original issue discount of 96, according to a market source.

As before, the term loan has call protection of 105 for life that is required on all mandatory and optional prepayments, and 0 bps CSA.

Morgan Stanley Senior Funding Inc. is leading the deal will help fund the $235 million acquisition of 60% of the Express intellectual property joint venture, which is intended to scale the Express apparel brand through new domestic category licensing and international expansion opportunities. Express Inc., a fashion apparel retailer, will own 40% of the joint venture.

The intellectual property joint venture implies a total value of the Express brand’s intellectual property at about $400 million.

WHP hits secondary

On Wednesday afternoon, WHP Global’s term loan broke for trading, with levels quoted at 96½ bid, 97½ offered, a trader added.

Due to the term loan upsizing, the company terminated plans to draw on its revolving credit facility and is reducing the amount of cash being used for the acquisition of the interest in the Express intellectual property joint venture.

Closing is expected during the week of Jan. 23.

WHP is a New York-based brand management firm.

Cobham gains

Cobham’s U.S. term loan B rose to 99 3/8 bid, par 1/8 offered on Wednesday from 99 1/8 bid, 99 7/8 offered on Tuesday as news emerged that the company is offering to prepay a portion of the debt and the general market was up by about an eighth of a point to a quarter of a point, a market source said.

The company is offering a $602 million paydown on the U.S. term loan B at a price of par with proceeds from the sale of its CAES Space Systems business to Veritas Capital.

Lenders have until 11 a.m. ET on Thursday to reject the prepayment, another source added.

Closing on the CAES Space sale is expected this quarter, subject to customary conditions and regulatory approvals.

Cobham is a Bournemouth, U.K.-based technology and services innovator in diversified industries, including defense and commerce. CAES Space is a Colorado Springs, Colo.-based provider of radiation hardened components, mission processing, cabling, wave guides, antennas and power management solutions.

RelaDyne tweaks timing

In other news, RelaDyne accelerated the commitment deadline for its non-fungible $200 million incremental first-lien term loan B (B2) due December 2028 to 11 a.m. ET on Friday from noon ET on Jan. 18, a market source remarked.

Talk on the term loan is SOFR plus 500 bps to 525 bps with a 0.5% floor, an original issue discount of 96, 101 soft call protection for six months and no CSA.

RBC Capital Markets, BMO Capital Markets, KeyBanc Capital Markets, Macquarie Capital (USA) Inc., Fifth Third, US Bank and others to be named later are leading the deal that 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.

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

Fund flows

Actively managed loan fund flows on Tuesday were negative $48 million and loan ETFs were positive $18 million, market sources said.

Actively managed high-yield fund flows on Tuesday were positive $145 million and loan ETFs were positive $243 million, sources added.

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