American Axle, Guggenheim break; Wells Enterprises up with acquisition; Axalta tweaked

By Sara Rosenberg

New York, Dec. 7 – American Axle & Manufacturing Inc. increased the size of its term loan B, lowered the spread from initial talk and modified the issue price before breaking for trading on Wednesday, and Guggenheim Partners Investment Management Holdings’ term loan B made its way into the secondary market as well.

Also, Wells Enterprises’ term loan rose by a few points in trading following news that the company is being acquired by The Ferrero Group.

And, in more happenings, Axalta Coating Systems Ltd. reduced the spread on its term loan B and tightened the original issue discount, and 888 Holdings plc (888 Acquisitions) came to market and priced an add-on term loan B.

American Axle revised, frees

On Wednesday morning, American Axle changed the price talk on its seven-year term loan B to a range of SOFR plus 350 basis points to 375 bps from SOFR plus 375 bps and tightened the original issue discount to 97 from 96, according to a market source.

Commitments continued to be due at noon ET on Wednesday and, post the deadline, the company upsized the term loan B to $675 million from $650 million and finalized the spread at SOFR plus 350 bps, the low end of the revised talk, the source said.

As before, the term loan has 10 bps CSA, a 0.5% floor and 101 soft call protection for six months.

The term loan broke for trading in the afternoon, with levels quoted at 97½ bid, 98 offered, another source added.

JPMorgan Chase Bank, Barclays, BMO Capital Markets, BofA Securities Inc., Citigroup Global Markets Inc., Mizuho and RBC Capital Markets are leading the deal that will help refinance an existing term loan B. Due to the upsizing, the amount being borrowed under the company’s existing revolver for the refinancing is being reduced.

American Axle is a Detroit-based producer of driveline and drivetrain systems and related components and chassis modules for the automotive industry.

Guggenheim hits secondary

Guggenheim Partners’ $785 million seven-year term loan B freed to trade in the morning, with levels quoted at 98 3/8 bid, 98 7/8 offered, according to a market source.

Pricing on the term loan is SOFR plus 325 bps with 0 bps CSA and a 0% floor. The debt was sold at an original issue discount of 98.25 and has 101 soft call protection for six months.

During syndication, pricing on the term loan firmed at the low end of the SOFR plus 325 bps to 350 bps talk and the discount was tightened from 98.

BofA Securities Inc. is leading the deal that will be used to refinance the company’s existing $685 million term loan B due July 2023 and add cash to the balance sheet.

Guggenheim Partners is a financial services firm.

Wells Enterprises rises

Wells Enterprises’ term loan moved up to 99 bid, 99¾ offered on Wednesday from 95¾ offered on Tuesday in reaction to news that the company is being purchase by Ferrero, a trader said.

Closing is expected in early 2023, subject to customary conditions.

UBS Investment Bank acted as exclusive financial advisor to Wells Enterprises. Morgan Stanley & Co. International plc acted as exclusive financial advisor to Ferrero.

Wells Enterprises is a Le Mars, Iowa-based ice cream and frozen treat manufacturer. Ferrero is a sweet-packaged food company.

Axalta flexes

Axalta Coating Systems trimmed pricing on its $2 billion seven-year senior secured term loan B (Ba1/BBB-) to SOFR plus 300 bps from SOFR plus 325 bps and revised the original issue discount to 99 from talk in the range of 97.5 to 98.5, a market source remarked.

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

Final commitments continued to be due at 5 p.m. ET on Wednesday, the source added.

Barclays is the left lead on the deal that will be used with cash from the balance sheet to refinance the company’s existing $2.021 billion term loan B due June 2024 and to pay related fees and expenses.

The borrowers are Axalta Coating Systems U.S. Holdings Inc. and Axalta Coating Systems Dutch Holding BBV.

Axalta is a Glen Mills, Pa.-based coatings company focused on providing customers with innovative, colorful and sustainable solutions.

888 launches, allocates

888 Holdings launched in the morning a fungible $75 million add-on covenant-lite term loan B (B1/B/BB+) due July 2028 with an original issue discount of 85, a market source remarked.

Pricing on the add-on term loan is SOFR+10 bps CSA plus 525 bps with a 0.5% floor, which matches existing term loan B pricing, and the call protection on the add-on term loan is the same as the existing term loan B.

Commitments were due at noon ET on Wednesday and the add-on term loan priced in the afternoon in line with launch terms, the source added.

Morgan Stanley Senior Funding Inc., JPMorgan Chase Bank and Barclays are leading the deal that will be used to help refinance a £347 million term loan A drawn to redeem a portion of the William Hill Ltd. 2026 bonds.

Closing is expected on Dec. 14.

888 is an online betting and gaming company.

Fund flows

In other news, actively managed loan fund flows on Tuesday were negative $153 million and loan ETFs were negative $25 million, market sources said.

Actively managed high yield fund flows on Tuesday were positive $10 million and high yield ETFs were negative $466 million, sources added.

Loan indices strengthen

IHS Markit’s iBoxx loan indices were higher on Tuesday, with the Leveraged Loan indexes (MiLLi) closing out the day up 0.02% and the Liquid Leveraged Loan indices (LLLi) closing out the day up 0.2%.

Month to date, the MiLLi is up 0.12% and year to date its down 1.52%. The LLLi is up 0.26% month to date and down 2.22% year to date.

Average secondary market bids in the U.S. on Tuesday were 92.26, up 0.01% from the previous day and down 4.74% year to date.

According to the IHS Markit data, some of the top advancers on Tuesday were Rackspace Hosting’s February 2021 covenant-lite term loan B at 66.50, up from 64.50, Vivint/APX’s July 2021 covenant-lite term loan at 98.59, up from 95.64, and United Site’s December 2021 covenant-lite term loan B at 83, up from 81.76.

Some top decliners on Tuesday were National CineMedia’s June 2018 term loan B at 31.83, down from 33.52, AMC Entertainment’s April 2019 covenant-lite term loan B at 52.42, down from 54.79, and Aspect Software’s May 2021 term loan at 75.38, down from 77.67.

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