Omnia breaks; IQ-EQ, Odyssey Logistics tweaked; Calpine Construction, Dexko accelerated

By Sara Rosenberg

New York, July 19 – Omnia Partners LLC firmed the original issue discount on its funded and delayed-draw term loans at the tight end of revised talk, and then the debt freed to trade on Wednesday.

In more happenings, IQ-EQ (Saphilux Sarl) finalized sizes and spreads on its U.S. and euro first-lien term loans, revised the issue price on the U.S. tranche, and modified original issue discount guidance on the euro tranche, and Odyssey Logistics & Technology Corp. trimmed the spread on its first-lien term loan and changed the original issue discount.

Also, Calpine Construction Finance Co. LP moved up the commitment deadline for new money commitments for its term loan B, Dexko Global accelerated the commitment deadline for its incremental first-lien term loan, and Fortress Investment Group FinCo I LLC and Select Medical Corp. joined this week’s primary calendar.

Omnia updated

Omnia Partners set the original issue discount on its $1.65 billion seven-year first-lien term loan and $155 million delayed-draw first-lien term loan at 99, the tight end of revised talk of 98.5 to 99 and tighter than initial talk in the range of 97.5 to 98, a market source remarked.

The term loans, which will trade as a strip, are priced at SOFR plus 425 basis points with a 0% floor. The debt has a 25 bps step-down at 1x inside closing date consolidated first-lien net leverage, but can’t step-down prior to 12 months from the closing date.

The term loan has 101 soft call protection for six months, delayed-draw term loan availability is up to six months after closing, subject to first-lien net leverage of 6x or less, and ticking fees on the delayed-draw term loan are half the margin from days 46 to 90 and the full margin thereafter.

Previously in syndication, the funded term loan was upsized from $1.625 billion, pricing on the term loans was reduced from talk in the range of SOFR plus 450 bps to 475 bps, one leverage-based pricing step-down was removed, leaving one in place, and some changes were made to documentation.

The company’s $2.055 billion of credit facilities also include a $250 million revolver.

Omnia frees up

Omnia’s strip of funded and delayed-draw term loan debt made its way into the secondary market on Wednesday, with levels quoted at 99¼ bid, 99¾ offered, another source added.

Barclays, Fifth Third, Brinley, BNP Paribas Securities Corp., Citizens, UBS Investment Bank, Jefferies LLC and Golub Capital are leading the deal thatwill be used to fund the acquisition of Premier Inc.’s non-health care 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-health care group purchasing organization.

IQ-EQ revised

IQ-EQ firmed the size of its U.S. first-lien term loan B (B3/B-) due July 2028 at $520 million, compared to original talk at launch of a minimum size of $500 million, set pricing at SOFR plus 475 bps, the low end of the SOFR plus 475 bps to 500 bps talk, adjusted the original issue discount to 98.5 from 98 and added a six months ratchet holiday, according to market sources.

Additionally, the company finalized the size of its euro first-lien term loan B (B3/B-) due July 2028 at €500 million, versus talk at launch of minimum €500 million, firmed pricing at Euribor plus 475 bps, the low end of the Euribor plus 475 bps to 500 bps talk, and changed the original issue discount talk to a range of 98.75 to 99 from revised talk in the range of 98 to 98.5 and initial talk of 98, sources said.

As before, the U.S. term loan has a 25 bps step-down at 0.5x inside opening senior secured net leverage, a 0.5% floor and no CSA, and the euro term loan has a 0% floor.

The company is also getting a privately placed sterling term loan.

In total, the company is getting €1.1 billion equivalent of first-lien term loan B, split between the U.S., euro and sterling term loans, which is unchanged from launch.

IQ-EQ lead banks

Nomura is the sole physical bookrunner on IQ-EQ’s U.S. term loan. Deutsche Bank Securities Inc., HSBC, NatWest and Nomura are the joint physical bookrunners on the euro term loan. Morgan Stanley is a passive bookrunner. NatWest is the administrative agent.

Commitments continued to be due at noon ET on Wednesday, and the debt is expected to free to trade on Thursday, sources added.

The new debt will be used to amend and extend an existing €499 million term loan B due July 2025, an existing €100 million equivalent U.S. term loan B due July 2025 and an existing €268 million equivalent sterling term loan B due July 2025, to repay existing debt, including the partial repayment of existing U.S. and sterling second-lien term loans due July 2026, for general corporate purposes, for acquisition activity, and to pay transaction related fees and expenses.

Astorg Asset Management is the sponsor.

IQ-EQ is an investor services and independent fund specialist.

Odyssey flexed

Odyssey Logistics cut pricing on its roughly $501 million first-lien term loan due October 2027 to SOFR plus 450 bps from SOFR plus 475 bps and tightened the original issue discount to 98 from talk in the range of 96.5 to 97.5, a market source said.

The term loan still has a 0.5% floor and 101 soft call protection for six months.

Recommitments were due at 5 p.m. ET on Wednesday, the source added.

The company’s $626 million of credit facilities (B2/B) also include a $125 million revolver.

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.

Calpine tweaks timing

Calpine Construction Finance accelerated the commitment deadline for new money commitments for its $1 billion seven-year covenant-lite term loan B (BB+) to noon ET on Thursday from 5 p.m. ET on Thursday, according to a market source.

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

Talk on the term loan is SOFR plus 250 bps to 275 bps with a 0% floor, an original issue discount of 99 and 101 soft call protection for six months.

Citigroup Global Markets Inc., BMO Capital Markets, Barclays, BNP Paribas Securities Corp., Mizuho, MUFG, RBC Capital Markets, SMBC, Credit Suisse Securities (USA) LLC, ING and Morgan Stanley Senior Funding Inc. are leading the deal. Credit Suisse is the agent.

The term loan will be used to refinance the company’s existing $945 million senior secured term loan B and pay associated fees and expenses.

Closing is expected in late July.

Calpine Construction is an owner and operator of power generation capacity.

Dexko accelerated

Dexko moved up the commitment deadline for its $300 million incremental first-lien term loan (B2/B-) due Oct. 4, 2028 to 5p.m. ET on Thursday from Tuesday, a market source remarked.

Talk on the term loan is SOFR plus 450 bps to 475 bps with a 0% floor, an original issue discount of 96 and 101 soft call protection for six months.

Goldman Sachs Bank USA, Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, BMO Capital Markets, RBC Capital Markets, BofA Securities Inc., Barclays, TD Securities (USA) LLC, CIBC and BNP Paribas Securities Corp. are leading the deal that will be used to refinance the company’s U.S. first-lien seller term loan and repay ABL revolver borrowings.

Brookfield is the sponsor.

Dexko is a Novi, Mich.-based manufacturer and distributor of highly engineered components and systems critical to the safety and performance of a range of towable and related applications.

Fortress readies loan

Fortress Investment Group set a lender call for 1:30 p.m. ET on Thursday to launch an $800 million covenant-lite term loan B due June 2028, according to a market source.

The term loan has 101 soft call protection for six months.

Deutsche Bank Securities Inc. and Goldman Sachs Bank USA are leading the deal that will be used to amend and extend by three years an existing $700 million term loan B and to fund future acquisitions.

Commitments from existing lenders are due at 5 p.m. ET on July 26 and commitments from new lenders are due at noon ET on July 31, the source added.

Fortress Investment is an alternative investment management firm.

Select Medical on deck

Select Medical will hold a lender call at 1 p.m. ET on Thursday to launch a $2.103 billion term loan B due March 2027 talked at SOFR plus 300 bps with a 25 bps step-down at 4x net leverage, an original issue discount of 99 to 99.25 and 101 soft call protection for six months, a market source remarked.

JPMorgan Chase Bank is the left lead on the deal that will be used to amend and extend an existing $2.103 billion term loan B due 2025.

Select Medical is a Mechanicsburg, Pa.-based health care company.

Fund flows

In other news, actively managed loan fund flows on Tuesday were positive $45 million and loan ETFs were positive $25 million, market sources said.

Actively managed high-yield fund flows on Tuesday were $0 million and high-yield ETFs were positive $373 million, sources added.

Loan indices dip

IHS Markit’s iBoxx loan indices were weaker on Tuesday, with the Leveraged Loan indexes (MiLLi) closing out the day down 0.01% and the Liquid Leveraged Loan indices (LLLi) closing out the day down 0.04%.

Month to date, the MiLLi is up 1.01% and year to date it is up 7.3%, and the LLLi is up 0.86% month to date and up 7.06% year to date.

Average secondary market bids in the U.S. on Tuesday were 92.16, down 0.03% from the previous day and up 0.3% year to date.

According to the IHS Markit data, some of the top advancers on Tuesday were Juice Plus+’s November 2018 term loan at 44.6, up from 42.5, Forming Machining/Atlas Group’s October 2018 covenant-lite term loan at 77, up from 75.83, and Whole Earth Brands’ February 2021 term loan B at 83.5, up from 82.33.

Some top decliners on Tuesday were API Technologies’ May 2019 covenant-lite term loan B at 66.67, down from 68.5, CenturyLink/Lumen’s January 2020 covenant-lite term loan B at 71.94, down from 73.55, and Duff & Phelps’ April 2020 U.S. covenant-lite term loan B at 96.63, down from 98.25.

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