Hilton Grand Vacations, Omnia Partners, Zelis Payments, Light & Wonder, KBR come to market

By Sara Rosenberg

New York, Jan. 4 – In the primary market on Thursday, Hilton Grand Vacations Borrower LLC and Omnia Partners LLC released price talk on their term loans in connection with their lender calls.

Also, Zelis Payments Buyer Inc. launched a refinancing/extension term loan B proposal, Light & Wonder Inc. approached investors with a repricing of its term loan B, and KBR Inc. came to market with a refinancing transaction.

Hilton proposed terms

Hilton Grand Vacations held its lender call on Thursday afternoon and announced price talk on its $900 million seven-year incremental term loan B (Ba2/BB+) at SOFR plus 275 basis points to 300 bps with a 0% floor and an original issue discount of 99.5, a market source remarked.

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

Commitments are due at noon ET on Jan. 11, the source continued.

Pro forma net secured leverage is expected to be 2.1x and total net leverage is expected to be 3.4x, excluding non-recourse securitized debt, based on LTM Sept. 30, 2023 pro forma adjusted EBITDA attributable to stockholders of $1.249 billion.

Along with the new term loan, the company is seeking an amendment, the source added.

Hilton lead banks

BofA Securities Inc., Deutsche Bank Securities Inc., Barclays, JPMorgan Chase Bank, MUFG and Goldman Sachs Bank USA are leading Hilton Grand Vacations’ term loan.

The term loan will be used with $900 million of other new senior secured debt to fund the acquisition of Bluegreen Vacations Holding Corp. for $75 per share in an all-cash transaction, representing total consideration of about $1.5 billion, inclusive of net debt.

Closing is anticipated during the first half of this year, subject to customary conditions and regulatory approvals.

Hilton Grand Vacations is an Orlando, Fla.-based timeshare company. Bluegreen Vacations is a Boca Raton, Fla.-based vacation ownership company.

Omnia guidance

Omnia launched on its morning call its $1.805 billion senior secured term loan B (B2/B) due July 25, 2030 at talk of SOFR plus 375 bps with a 0% floor and a par issue price, according to a market source.

The term loan has a 25 bps step-down at about a turn inside of opening first-lien net leverage, but can’t step down for 12 months post closing, and 101 soft call protection for six months, the source said.

Commitments are due at 5 p.m. ET on Tuesday.

Barclays is the left lead on the deal that will be used to reprice an existing $1.805 billion senior secured term loan B due July 25, 2030 from SOFR plus 425 bps with a 0% floor. The existing term loan has a 25 bps step-down at 1x inside closing date consolidated first-lien net leverage, but was unable to step down prior to 12 months from the original closing date.

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

Zelis hits market

Zelis Payments held a lender call at 11 a.m. ET, launching a $1,977,981,495 senior secured covenant-lite first-lien term loan B (B1/B+) due September 2029 at talk of SOFR plus 300 bps to 325 bps with a 0% floor, an original issue discount of 99.5 and 101 soft call protection for six months, a market source said.

Commitments are due at 5 p.m. ET on Jan. 11, the source added.

Morgan Stanley Senior Funding Inc. is the left lead on the deal that will be used to refinance/extend an existing term loan B due September 2026.

Zelis is a Boston-based healthcare technology company, providing a connected platform that bridges the gaps and aligns interests across payers, providers and healthcare consumers.

Light & Wonder launches

Light & Wonder emerged with plans to hold a lender call at 2 p.m. ET to launch a $2.2 billion term loan B due 2029 talked at SOFR plus 275 bps with no CSA, a 0.5% floor, an original issue discount of 99.75 to par and 101 soft call protection for six months, a market source remarked.

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 reprice an existing term loan B down from SOFR+CSA plus 300 bps with a 0.5% floor. CSA on the existing loan is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

Light & Wonder is a Las Vegas-based cross-platform games and entertainment company.

KBR holds call

KBR held a lender call during the session to launch an $800 million seven-year term loan B (Ba1/BB) talked at SOFR plus 225 bps to 250 bps with a 0% floor, an original issue discount of 99.5 and 101 soft call protection for six months, according to a market source.

Commitments are due at noon ET on Jan. 11, the source added.

BofA Securities Inc. is the left lead on the deal that will be used to refinance an existing term loan B due 2027 and to pay down revolver borrowings.

KBR is a Houston-based provider of differentiated, professional services and technologies across a government, defense and industrial base.

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