Upfield sets spreads; ION Corporates, SiteOne price talk emerges; Odyssey reschedules launch

By Sara Rosenberg

New York, July 6 – In the primary market on Thursday, Upfield finalized the spread on its U.S. extended term loan B at the low end of talk, and set pricing on its euro extended term loan B at the wide end of guidance.

Also, ION Corporates released price talk on its term loan in connection with its lender call, and SiteOne Landscape Supply Holding LLC approached lenders with a fungible add-on term loan.

In addition, Odyssey Logistics & Technology Corp. moved the lender call to launch its credit facilities to next week from Thursday, and Omnia Partners LLC and Risk Strategies Co. joined the near-term new issue calendar.

Upfield updated

Upfield firmed pricing on its U.S. extended term loan B due January 2028 at SOFR plus 475 basis points, the low end of the SOFR plus 475 bps to 500 bps talk, and on its euro extended term loan B due January 2028 at Euribor plus 500 bps, the wide end of the Euribor plus 475 bps to 500 bps talk, according to a market source.

Pricing on the company’s sterling extended term loan B due January 2028 was set in line with talk at Sonia plus 575 bps with an original issue discount of 97.

As before, the U.S. and euro term loans have an original issue discount of 97.5, and all of the term loans have 101 soft call protection for six months.

Allocations are expected on Friday, the source added.

Upfield lead banks

KKR Capital Markets is the sole physical bookrunner on Upfield’s term loans. BNP Paribas Securities Corp., Citigroup Global Markets Inc., Credit Agricole, Credit Suisse, Goldman Sachs, HSBC Securities, ING, Mizuho, RBC Capital Markets, Societe Generale and UniCredit are joint bookrunners, and Deutsche Bank Securities Inc. is a joint bookrunner on the euro and sterling loans.

The loans will be used to amend and extend an existing $833 million term loan B due July 2025 that is priced at SOFR plus 300 bps, an existing €2.375 billion term loan B due July 2025 that is priced at Euribor plus 350 bps and an existing £656 million term loan B due July 2025 that is priced at Sonia plus 400 bps.

Upfield is an Amsterdam-based plant-based consumer product company.

ION guidance

ION Corporates held its lender call on Thursday morning and announced talk on its $400 million term loan due July 2030 at SOFR plus 450 bps to 475 bps with a 0% floor and an original issue discount of 96, a market source remarked.

The term loan has 101 soft call protection for six months and no CSA.

Commitments are due on July 13.

BNP Paribas Securities Corp. and JPMorgan Chase Bank are leading the deal that will be used to refinance $200 million of existing debt and for general corporate purposes, including a distribution and adding cash to the balance sheet.

ION is a provider of software and solutions focused on corporate treasury and commodities management.

SiteOne holds call

SiteOne Landscape Supply held a lender call at 11 a.m. ET, launching a fungible $120 million add-on term loan talked with an original issue discount of 99.03, according to a market source.

Pricing on the add-on term loan is SOFR+CSA plus 200 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.

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

JPMorgan Chase Bank is leading the deal that will be used to pay down ABL borrowings and for general corporate purposes.

SiteOne is a Roswell, Ga.-based distributor of wholesale irrigation, landscape lighting, nursery, hardscapes, maintenance products and supplies for the green industry.

Odyssey rescheduled

Odyssey Logistics postponed the lender call for its roughly $627 million of credit facilities to 2 p.m. ET on Monday from 2 p.m. ET on Thursday, a market source said.

The facilities consist of a $125 million revolver and a $502,333,867 first-lien term loan.

UBS Investment Bank, Credit Suisse Securities (USA) LLC, JPMorgan Chase Bank, RBC Capital Markets, Citizens Bank and KeyBanc Capital Markets are leading the deal that will be used to amend and extend the company’s existing first-lien credit facilities, while also increasing the revolver size from its current amount.

With the extension, the company’s second-lien term loan will be paid down using cash on the balance sheet.

Odyssey Logistics is a Danbury, Conn.-based provider of multi-modal logistics services and technology solutions.

Omnia readies deal

Omnia Partners set a lender call for 2:30 p.m. ET on Monday to launch $2.03 billion of credit facilities (B2/B), according to a market source.

The facilities consist of a $250 million revolver, a $1.625 billion seven-year first-lien term loan and a $155 million first-lien delayed-draw term loan, the source added. The term loans will trade as a strip.

Barclays, Fifth Third, Brinley, BNP Paribas Securities Corp., Citizens, UBS Investment Bank, Jefferies LLC and Golub Capital are leading the deal that will be used to fund the acquisition of Premier Inc.’s non-healthcare group purchasing organization operations for about $800 million, to refinance in full the company’s existing debt, for general corporate purposes and to pay related fees and expenses.

Closing on the acquisition is expected by early August, subject to regulatory approval and customary conditions.

Omnia, owned by TA Associates, Leonard Green & Partners and management, is a Franklin, Tenn.-based non-healthcare group purchasing organization.

Risk Strategies on deck

Risk Strategies will hold a lender call at 4 p.m. ET on Monday to launch a unitranche incremental delayed-draw term loan, a market source remarked.

Golub Capital is the left lead on the deal that will be used to support ongoing acquisition opportunities.

The company currently has a roughly $3.5 billion unitranche facility.

Risk Strategies, a portfolio company of Kelso & Co., is a Boston-based insurance brokerage firm.

Fund flows

In other news, actively managed loan fund flows on Wednesday were negative $5 million and loan ETFs were positive $42 million, market sources said.

Actively managed high-yield fund flows on Wednesday were positive $6 million and high-yield ETFs were negative $819 million, sources added.

Loan indices rise

In other news, IHS Markit’s iBoxx loan indices were stronger on Wednesday, with the Leveraged Loan indexes (MiLLi) closing out the day up 0.11% and the Liquid Leveraged Loan indices (LLLi) closing out the day up 0.15%.

Month to date, the MiLLi is up 0.22% and year to date it is up 6.46%, and the LLLi is up 0.18% month to date and up 6.35% year to date.

Average secondary market bids in the U.S. on Wednesday were 91.76, up 0.05% from the previous day and down 0.13% year to date.

According to the IHS Markit data, some of the top advancers on Wednesday were SVP Worldwide’s July 2021 covenant-lite term loan at 75.75, up from 74.33, American Trailer World’s March 2021 covenant-lite term loan at 91.38, up from 89.72, and Tosca’s February 2021 covenant-lite term loan at 81.4, up from 80.06.

Some top decliners on Wednesday were Vida Capital’s October 2019 covenant-lite term loan at 74.25, down from 76, Amneal Pharmaceuticals’ May 2018 covenant-lite term loan at 94, down from 96.1, and Lonza Group/Lonza Specialty’s April 2021 U.S. covenant-lite term loan B at 84.15, down from 84.96.

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