Hostess tweaks timing; Idemia, Entain, Nord Anglia, Columbus McKinnon disclose talk

By Sara Rosenberg

New York, June 20 – In the primary market on Tuesday, Hostess Brands Inc. moved up the commitment deadline for its term loan that will be used to refinance existing debt.

In addition, Idemia, Entain plc, Nord Anglia Education (Fugue Finance LLC) and Columbus McKinnon Corp. released price talk on their loan transactions with launch.

Hostess accelerated

Hostess Brands changed the commitment deadline for its $985 million seven-year term loan (B1/BB) to 5 p.m. ET on Tuesday from 5 p.m. ET on Wednesday, a market source said.

Talk on the term loan is SOFR plus 275 basis points to 300 bps with a 0.5% floor, an original issue discount of 98.5 and 101 soft call protection for six months.

JPMorgan Chase Bank is the left lead on the deal that will be used to refinance an existing term loan.

Hostess is a Lenexa, Kan.-based packaged food company.

Idemia comes to market

Idemia held a lender call at 9 a.m. ET on Tuesday, launching a $642 million first-lien term loan B due September 2028 and a €1.45 billion first-lien term loan B due September 2028, according to a market source.

Talk on the U.S. term loan is SOFR plus 475 bps to 500 bps with one 25 bps step-down based on leverage, a 0.75% floor and an original issue discount of 98, and talk on the euro term loan is Euribor plus 475 bps to 500 bps with two 25 bps step-downs based on leverage, a 0% floor and a discount of 98, the source said.

Both loans have 101 soft call protection for six months.

Commitments are due at 10 a.m. ET on June 29 for the U.S. term loan and at 9 a.m. ET on June 29 for the euro loan, the source added.

Idemia extending

Idemia will use the debt to amend and extend existing $642 million and €1.45 billion first-lien term loans due January 2026, and to pay transaction fees and expenses.

JPMorgan Chase Bank is the physical bookrunner on the U.S. term loan. BNP Paribas Securities Corp., Credit Agricole, HSBC Securities, JPMorgan and Societe Generale are the physical bookrunners on the euro term loan, and are joint global coordinators. CM-CIC, Deutsche Bank, Goldman Sachs, Natixis and Nomura are passive bookrunners. Alter Domus is the administrative agent on the U.S. loan and Natixis is the agent on the euro loan.

Idemia, an Advent portfolio company, is a France-based provider of security technology products and services.

Entain holds call

Entain held a lender call at 11 a.m. ET to launch £400 million equivalent of senior secured covenant-lite U.S. and euro term loans (Ba1/BB/BB+), split between a fungible U.S. add-on to the company’s existing U.S. term loan B-2 due October 2029and a fungible euro add-on to the company’s existing euro term loan B due June 2028, a market source remarked.

The U.S. loan is talked with an original issue discount of 98 to 98.5, and the euro piece is a talked with an original issue discount of 97.5 to 98, the source continued.

Pricing on the U.S. add-on is SOFR+10 bps CSA plus 350 bps with a 0.5% floor, and pricing on the euro add-on is Euribor plus 375 bps with a 0% floor.

The U.S. add-on has 101 soft call protection until October 2023 and the euro add-on has 101 soft call protection until January 2024, in line with call protection on the existing term loans.

Entain lead banks

Morgan Stanley Senior Funding Inc. is the sole physical bookrunner on Entain’s U.S. loan, and Morgan Stanley and NatWest are joint physical bookrunners on the euro loan. BofA Securities Inc., Barclays, Deutsche Bank Securities Inc., Lloyds Bank, Mediobanca and Santander are joint bookrunners on the loans.

Commitments are due at 10 a.m. ET on Friday for the U.S. loan and at noon ET on Friday for euro loan, the source added.

The loans will be used to repay notes at Ladbrokes and to pay related fees and expenses.

Entain is a Douglas, Isle of Man-based sports-betting, gaming and interactive entertainment group.

Nord Anglia launches

Nord Anglia Education emerged in the morning with plans to hold a lender call at 10:30 a.m. ET to launch a fungible $250 million add-on term loan B due January 2028 talked with an original issue discount of 98.75 to 99, according to a market source.

The add-on term loan is priced at SOFR plus 450 bps with a 0.5% floor, in line with pricing on the company’s existing $608 million term loan B due January 2028.

Commitments are due at 10 a.m. ET on Friday, the source added.

Deutsche Bank Securities Inc. and JPMorgan Chase Bank are joint physical bookrunners on the deal, and HSBC is a passive bookrunner. Citigroup Global Markets Inc., DBS, Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc., Standard Chartered, BofA Securities Inc. and E. Sun are joint bookrunners. HSBC is the administrative agent. JPMorgan is the fronting bank.

The loan will be used by the London-based K-12 schools platform to repay revolver borrowings and for general corporate purposes, including acquisitions.

BPEA EQT and CPP Investments are the sponsors.

Columbus shops add-on

Columbus McKinnon launched on a 1 p.m. ET lender call a fungible $75 million add-on term loan due May 2028 talked with an original issue discount of 99 to 99.25, a market source remarked.

Pricing on the add-on term loan is SOFR+CSA plus 275 bps with a 0.5% Libor 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.

Commitments are due at noon ET on Wednesday, the source added.

JPMorgan Chase Bank is leading the deal that will be used to repay revolver borrowings.

Columbus McKinnon is a Getzville, N.Y.-based designer, manufacturer and marketer of intelligent motion solutions for material handling.

Fund flows

In other news, actively managed loan fund flows on Friday were negative $23 million and loan ETFs were positive $22 million, market sources said.

Year to date outflows for loan funds total $18.2 billion, or 17% of AUM, with negative $1.3 billion ETFs, sources added.

Loan indices rise

IHS Markit’s iBoxx loan indices were stronger on Friday, with the Leveraged Loan indexes (MiLLi) closing out the day up 0.08% and the Liquid Leveraged Loan indices (LLLi) closing out the day up 0.03%.

Month to date, the MiLLi is up 1.47% and year to date it is up 5.43%, and the LLLi is up 1.66% month to date and up 5.57% year to date.

Average secondary market bids in the U.S. on Friday were 91.43, up 0.01% from the previous day and down 0.49% year to date.

According to the IHS Markit data, some of the top advancers on Friday were Rackspace Hosting’s February 2021 covenant-lite term loan B at 43.88, up from 41.07, U.S. Renal Care’s June 2019 term loan B at 49.11, up from 47.19, and Interior Logic’s March 2021 covenant-lite term loan B at 79.33, up from 76.86.

Some top decliners on Friday were Air Methods’ April 2017 covenant-lite term loan B at 36.67, down from 43.58, Mavenir Systems’ August 2021 term loan B at 74.5, down from 80.59, and Trinseo’s May 2018 covenant-lite term loan at 94.27, down from 96.63.

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