Tamko Building breaks; American Airlines softens; Iridium, USI, Bausch, AerCap updated

By Sara Rosenberg

New York, Sept. 13 – Tamko Building Products LLC modified the original issue discount on its term loan B before freeing up for trading on Wednesday, and American Airlines Group Inc.’s term loans were a little weaker as the company revised its projected third quarter earnings lower due to higher fuel prices.

In more happenings, Iridium Satellite LLC changed the original issue discount on its term loan B and removed the CSA, and USI Inc. added a term loan tranche to its transaction for the purpose of refinancing debt, and tightened the spread and issue price on its incremental first-lien term loan B.

Also, Bausch + Lomb Corp. revised the original issue discount on its term loan B, AerCap (Delos Aircraft DAC) changed the issue price talk on its term loan B, and Syneos Health Inc. moved up the commitment deadline for its term loan B.

Furthermore, Viasat Inc., NCR Atleos LLC and BCP Renaissance Parent LLC released price talk with launch, and ProAmpac joined this week’s primary calendar.

Tamko revised

Tamko Building Products tightened the original issue discount on its $821 million term loan B (B2/BB-) due 2030 to 99.5 from talk in the range of 98.5 to 99, according to a market source.

As before, the term loan is priced at SOFR plus 350 basis points with a 25 bps step-down at less than 3.5x first-lien net leverage and a 0% floor, and has 101 soft call protection for six months.

Commitments were due at 11 a.m. ET on Wednesday, accelerated from 5 p.m. ET on Wednesday, and the debt began trading later in the day, with levels quoted at par bid, par ½ offered, another source added.

JPMorgan Chase Bank is leading the deal that will be used with cash on hand to repay the company’s existing $821 million term loan B due 2026 and to pay related fees and expenses.

Tamko is a Galena, Kan.-based roofing products manufacturer.

American Airlines dips

American Airlines’ term loan was a touch weaker in trading on Wednesday as the company reduced its adjusted earnings per diluted share estimate for the third quarter to a range of about $0.20 to $0.30 from a range of about $0.85 to $0.95, a market source said.

The company’s 2027 term loan was quoted at 98 7/8 bid, 99 3/8 offered, down from 99 bid, 99½ offered on Tuesday, and the 2028 term loan was quoted at 99 5/8 bid, par 1/8 offered, down from 99¾ bid, par ¼ offered, the source said.

The company said the revision to estimated earnings was due to fuel prices increasing considerably since the initial third-quarter guidance was issued on July 20, 2023.

American Airlines is a Fort Worth, Tex.-based airline company.

Iridium changes emerge

Back in the primary market, Iridium Satellite moved the original issue discount on its $1.5 billion seven-year covenant-lite term loan B (Ba3/BB/BBB-) to 99.75 from talk in the range of 99 to 99.5 and removed the 10 bps CSA, according to a market source.

As before, the term loan is priced at SOFR plus 250 bps with a 0.75% floor, and has 101 soft call protection for six months.

Deutsche Bank Securities Inc., Wells Fargo Securities LLC, Barclays and RBC Capital Markets are leading the deal that will be used to refinance an existing term loan B due 2026 priced at SOFR+10 bps CSA plus 250 bps with a 0.75% floor.

Commitments from existing lenders were due at 10:30 a.m. ET on Wednesday. Commitments from new lenders are due at noon ET on Thursday, accelerated from noon ET on Friday, the source added.

Iridium is a McLean, Va.-based provider of mobile satellite communications services.

USI reworked

USI added an $820 million seven-year senior secured covenant-lite first-lien term loan B to its capital structure that is priced at SOFR plus 325 basis points with an original issue discount of 99.75, a market source remarked.

Additionally, pricing on the company’s $600 million seven-year senior secured incremental covenant-lite first-lien term loan B was cut to SOFR plus 325 bps from SOFR plus 375 bps and the original issue discount was adjusted to 99.75 from 99.5, the source said.

The term loan debt still has a 0% floor and 101 soft call protection for six months.

No changes are expected to the B1/B term loan ratings.

Recommitments were due at 3:30 p.m. ET on Wednesday, the source added.

USI lead banks

Morgan Stanley Senior Funding Inc., KKR Capital Markets, Goldman Sachs Bank USA, BofA Securities Inc., Barclays, SPC, Citigroup Global Markets Inc., ING and Macquarie Capital (USA) Inc. are leading USI’s term loans. BofA Securities is the administrative agent.

The new $820 million term loan, which is expected to fund in September, will be used to refinance a 2026 term loan and repay revolver borrowings, and the $600 million incremental term loan, which is expected to fund in November, will be used to fund a repurchase of shares from CDPQ and certain co-investors. More than 50% of the shares held by CDPQ will be purchased in the transaction. Existing shareholder KKR is making a new equity investment of more than $1 billion in the company and will be USI’s largest single shareholder.

Both term loan tranches will become one fungible $1.42 billion term loan upon the acquisition tranche funding.

USI is a Valhalla, N.Y.-based insurance brokerage and consulting firm.

Bausch modified

Bausch + Lomb tightened the original issue discount on its $500 million five-year term loan B (B1/B-) to 99 from talk in the range of 98 to 98.5, according to a market source.

Pricing on the term loan remained at SOFR plus 400 bps with a 0% floor, and the debt still has 101 soft call protection for six months, and ticking fees of half the margin from days 46 to 90 and the full margin thereafter.

Commitments are due at noon ET on Thursday, accelerated from 5 p.m. ET on Thursday, the source added.

JPMorgan Chase Bank is the lead left lead on the deal will be used with $1.4 billion of senior secured notes due 2028 to fund the $1.75 billion acquisition of the Xiidra, libvatrep and AcuStream ophthalmology assets from Novartis, to repay revolver borrowings and to pay related fees and expenses..

Closing is expected at or around the end of this month, subject to regulatory approval and other customary conditions.

Bausch + Lomb is a Vaughan, Ont.-based eye health company.

AerCap updated

AerCap changed original issue discount talk on its $600 million term loan B (Baa1/BBB/BBB) due Oct. 31, 2027 to a range of 99.75 to par from 99.5, according to a market source.

Pricing on the term loan remained at SOFR plus 200 bps with a 0% floor, and the debt still has 101 soft call protection for six months.

Commitments continued to be due at 5 p.m. ET on Wednesday, and pricing is expected on Thursday, the source added.

Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc. and RBC Capital Markets are leading the deal that will be used with cash from the balance sheet to refinance an existing term loan B.

Cashless roll is being offered.

AerCap is a Dublin-based aviation leasing company.

Syneos tweaks timing

Syneos Health accelerated the commitment deadline for its $2 billion seven-year term loan B (B1/B/BB) to noon ET on Monday from 5 p.m. ET on Sept. 20, a market source remarked.

Talk on the term loan is SOFR plus 450 bps with a 0% floor, an original issue discount of 97 and 101 soft call protection for six months.

The company’s $2.5 billion of credit facilities also include a $500 million revolver.

Goldman Sachs Bank USA, UBS Investment Bank, RBC Capital Markets LLC, BMO Capital Markets Corp., HSBC Securities (USA) Inc., Wells Fargo Securities LLC, Citigroup Global Markets Inc., Jefferies LLC, Macquarie Capital (USA) Inc., Natixis, Truist Securities Inc., Citizens Bank, MUFG, SMBC, Capital One and Societe Generale are leading the deal.

Syneos being acquired

Syneos will use the new credit facilities, along with $1.7 billion of senior secured notes, to help fund its buyout by Elliott Investment Management, Patient Square Capital and Veritas Capital for $43 per share in cash in a transaction valued at about $7.1 billion, including outstanding debt, and to pay related fees and expenses.

Closing is expected this year, subject to the approval of Syneos shareholders and other customary conditions, including regulatory approvals.

Syneos is a Morrisville, N.C.-based contract research organizations and contract commercial organization.

Viasat guidance

Viasat held its lender call on Wednesday morning and announced price talk on its $616.7 million term loan B (BB) due May 30, 2030 at SOFR+CSA plus 450 bps with a 0.5% floor and an original issue discount of 95 to 96, according to a market source. CSA is ARRC standard of 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

The term loan has 101 soft call protection for one year.

Commitments are due at noon ET on Sept. 20, the source added.

BofA Securities Inc., JPMorgan Chase Bank, Barclays, Credit Suisse Securities (USA) LLC, MUFG, Truist Securities Inc. and Citizens Bank are leading the deal.

The term loan funded in May to help fund the acquisition of Inmarsat (Connect Topco Ltd.) for $550.7 million in cash and about 46.36 million shares of common stock.

Viasat is a Carlsbad, Calif.-based communications company. Inmarsat is a London-based provider of global mobile satellite communications services.

NCR Atleos talk

NCR Atleos came out with talk of SOFR+10 bps CSA plus 475 bps with a 0% floor and an original issue discount of 98 on its $1.05 billion seven-year term loan B (B2/B+/BB+) that launched with a lender call in the afternoon, a market source said.

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

Commitments are due at 10 a.m. ET on Sept. 22, the source added.

BofA Securities Inc., JPMorgan Chase Bank, Goldman Sachs Bank USA, RBC Capital Markets, Wells Fargo Securities LLC, Truist Securities, MUFG, PNC Capital Markets, Capital One, TD Securities (USA) LLC, Fifth Third, US Bank, Regions, M&T and Citigroup Global Markets Inc. are leading the deal, which will be used with $1.05 billion of other secured debt to fund a cash distribution to NCR Corp. in connection with the spin-off of NCR Atleos.

Closing is expected in the fourth quarter.

NCR Atleos is a financial technology company providing self-directed banking solutions through automated teller machines and interactive teller machines.

BCP shops incremental

BCP Renaissance launched during the session without a lender call a fungible $75 million incremental term loan B due Oct. 31, 2026 talked with an original issue discount of 99.5 to 99.75, a market source remarked.

Pricing on the incremental term loan is SOFR plus 350 bps with a 1% floor, in line with existing term loan pricing.

Jefferies LLC is leading the deal that will be used to fund a distribution.

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

Consents for the amendment that goes along with the incremental term loan are also due at 5 p.m. ET on Monday and lenders are being offered a 15 bp consent fee.

BCP Renaissance is the owner of a 32.435% interest in the Rover Pipeline, which transports natural gas from the Marcellus and Utica Shale production areas.

ProAmpac on deck

ProAmpac set a lender call for 10 a.m. ET on Thursday to launch a $2.085 billion first-lien term loan (B3) due 2028 talked at SOFR plus 475 bps with a 0.75% floor, an original issue discount of 98 and 101 soft call protection for six months, according to a market source.

Commitments are due at 5 p.m. ET on Sept. 26, the source added.

JPMorgan Chase Bank, Antares Capital and others are leading the deal that will be used to amend and extend an existing $2.105 billion first-lien term loan due 2025 and to repay revolver borrowings.

ProAmpac is a Cincinnati-based manufacturer of flexible packaging and material science solutions.

Fund flows

In other news, actively managed loan fund flows on Tuesday were positive $28 million and loan ETFs were positive $40 million, market sources said.

Actively managed high-yield fund flows on Tuesday were negative $16 million and high-yield ETFs were negative $32 million, sources added.

Loan indices rise

IHS Markit’s iBoxx loan indices were stronger on Tuesday, 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 0.11%.

Month to date, the MiLLi is up 0.63% and year to date it is up 9.54%, and the LLLi is up 0.51% month to date and up 8.96% year to date.

Average secondary market bids in the U.S. on Tuesday were 93.05, up 0.11% from the previous day and up 1.28% year to date.

According to the IHS Markit data, some of the top advancers on Tuesday were CPC Acquisition’s December 2020 second-lien covenant-lite term loan at 54.42, up from 49, Win Waste/Waste Innovations’ March 2021 covenant-lite term loan B at 90.58, up from 86.16, and Cano Health’s January 2022 covenant-lite term loan at 64.75, up from 61.94.

Some top decliners on Tuesday were Lucky Bucks’ July 2021 covenant-lite term loan at 28.33, down from 30.13, Wheel Pros’ May 2021 covenant-lite non-TSA term loan at 62.25, down from 65.25, and Thrasio’s December 2020 term loan at 74.33, down from 75.5.

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