New Fortress Energy loan changes emerge; Cook & Boardman tables term loan transaction

By Sara Rosenberg

New York, Oct. 27 – In the primary market on Friday, New Fortress Energy Inc. (NFE) increased the size of its first-lien term loan B, widened the spread and original issue discount, sweetened the call protection and shortened the maturity.

Also, Cook & Boardman Group (Red Fox CD Acquisition Corp.) withdrew its term loan B from market, and Ineos Quattro joined the near-term new issue calendar with plans for U.S. and euro term loan Bs.

New Fortress reworked

New Fortress Energy lifted its senior secured covenant-lite first-lien term loan B (Ba3/BB/BB-) to $856 million from $835 million, raised pricing to SOFR plus 500 basis points from SOFR plus 450 bps, removed a 25 bps pricing step-down upon corporate rating upgrades from two of three agencies, and moved the original issue discount to 92 from revised talk of 93 and initial talk of 96, according to a market source.

Additionally, the call protection on the term loan was revised to a hard call of 102 in year one and 101 in year two from a 101 soft call for six months, the maturity was shortened to five years from seven years and the MFN was set at 50 bps for life instead of having a 12-month sunset, the source said.

The term loan still has a 0.75% floor.

Commitments were scheduled to be due at 3 p.m. ET on Friday, the source added.

Morgan Stanley Senior Funding Inc., MUFG, Natixis, Citigroup Global Markets Inc., HSBC Securities (USA) Inc., JPMorgan Chase Bank, Santander, Wells Fargo Securities LLC and Deutsche Bank Securities Inc. are leading the deal that will be used to repay an existing $400 million 364-day bridge loan and for general corporate purposes, including planned capital expenditures. The upsizing was done to fund the wider original issue discount.

Closing is expected on Monday.

New Fortress Energy is a New York-based energy infrastructure company.

Cook & Boardman shelved

Cook & Boardman pulled its $500 million seven-year term loan B (B3/B) from market, a market source remarked.

Talk on the term loan had been SOFR plus 500 bps with a 0% floor, an original issue discount of 96.5 to 97 and 101 soft call protection for six months.

BofA Securities Inc., Goldman Sachs Bank USA, TD Securities (USA) LLC, Truist Securities and Stifel were leading the deal that was going to help fund the acquisition of a majority stake in the company by Platinum Equity from Littlejohn & Co. LLC, to repay existing debt in full, and to pay fees, commissions and expenses in connection with the transactions.

Cook & Boardman is a Winston-Salem, N.C.-based distributor of commercial door and security integration solutions.

Ineos Quattro on deck

Ineos Quattro set a lender call for 11 a.m. ET on Monday to launch a €2 billion equivalent U.S. and euro term loan B due March 2029, split between a roughly $1.25 billion term loan B tranche and an €850 million term loan B tranche, according to a market source. Small group meetings will be available on Tuesday and Wednesday.

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

Commitments are due at noon ET on Nov. 8, the source added.

JPMorgan Chase Bank is the left lead bookrunner on the U.S. term loan. BNP Paribas, Citigroup Global Markets Inc. and JPMorgan are the joint physical bookrunners and joint global coordinators on the euro term loan. Credit Agricole, CCB, Commerzbank, FAB, Goldman Sachs (joint global coordinator), HSBC Securities, ING, ICBC, KBC and Mizuho are joint bookrunners. JPMorgan is the administrative agent.

The chemicals company will use the new term loans and €800 million equivalent of U.S. and euro other secured debt to partially refinance existing U.S. and euro term loan B borrowings due 2026 and other debt due 2026, to fund the $500 million acquisition of the Eastman Texas City site, including the 600kt Acetic Acid plant and all associated third party activities, from Eastman Chemical Co., and to pay transaction fees and expenses.

Closing on the acquisition is expected this year, subject to regulatory approvals.

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