SubCom, GMS, Refresco, Help at Home, Buckeye, American Builders, Adient, Tacala break

By Sara Rosenberg

New York, Jan. 26 – SubCom increased the size of its term loan B and firmed the spread at the low end of talk, and GMS Inc. (GYP Holdings III Corp.) set the issue price on its term loan B at the tight end of guidance, and then these deals freed to trade on Friday.

Also, before breaking for trading, Refresco Group BV (Pegasus Bidco BV) raised the size of its U.S. and euro first-lien term loans and finalized the spread on the euro tranche at the low end of revised talk, and Help at Home LLC (HAH Group Holding Co. LLC) upsized its incremental first-lien term loan and set the original issue discount at the tight end of guidance.

Other deals to make their way into the secondary market during the session included Buckeye Partners LP, American Builders & Contractors Supply Co. Inc. (ABC Supply Co. Inc.), Adient and Tacala Cos.

In more happenings, Ankura Consulting Group LLC lifted pricing on its term loan and added a ratings-based step-down, and IQ-EQ (Saphilux Sarl) lowered the spread on its U.S. term loan B and modified price talk on its euro term loan B.

Additionally, Plusgrade Inc. finalized the original issue discount on its term loan B at the tight end of guidance, and TenCate Grass Holding BV joined the near-term primary calendar.

SubCom tweaked, trades

SubCom raised its seven-year term loan B (B1/B+) to $1.4 billion from $1.35 billion and set pricing at SOFR plus 475 basis points, the low end of the SOFR plus 475 bps to 500 bps talk, a market source remarked.

As before, the term loan has a 0.75% floor, an original issue discount of 99 and 101 soft call protection for six months.

Recommitments were due at 10 a.m. ET on Friday and the term loan broke for trading thereafter, with levels quoted at 99¼ bid, 99¾ offered, another source added.

Goldman Sachs Bank USA is the left lead on the deal that will be used to refinance an existing $585 million first-lien term loan due April 2027 and a $458 million incremental first-lien term loan due April 2027, and to fund a distribution to shareholders.

Cerberus Capital Management is the sponsor.

SubCom is an Eatontown, N.J.-based subsea fiber optic cable turnkey service provider.

GMS updated, breaks

GMS finalized the issue price on its $500 million covenant-lite term loan B due May 12, 2030 at par, the tight end of the 99.75 to par talk, according to a market source.

Pricing on the term loan remained at SOFR plus 225 bps with a 0% floor, and the debt still has 101 soft call protection for six months.

Recommitments were due at noon ET on Friday and the term loan B surfaced in the secondary market in the afternoon, with levels quoted at par bid, par ¼ offered, another source added.

Wells Fargo Securities LLC is the left lead on the deal that will be used to reprice an existing term loan B down from SOFR plus 300 bps with a 0% floor.

GMS is a Tucker, Ga.-based distributor of interior construction products.

Refresco reworked, frees

Refresco upsized its U.S. first-lien term loan B due July 2029 to $1.814 billion from $1.594 billion and its euro first-lien term loan B due July 2029 to €1.665 billion from €1.53 billion, and firmed pricing on the euro tranche at Euribor plus 375 bps, the low end of revised talk of Euribor plus 375 bps to 400 bps and down from initial talk of Euribor plus 400 bps, according to a market source.

Pricing on the U.S. term loan remained at SOFR plus 375 bps with a 0.5% floor and a par issue price, and the euro term loan still has a 0% floor and a par issue price. Both loans have 101 soft call protection for six months.

Recommitments for the U.S. term loan were due at 11 a.m. ET on Friday and the U.S. loan broke later in the day, with levels quoted at par bid, par ¼ offered, another source added.

JPMorgan Chase Bank is the left lead on the U.S. loan and KKR Capital Markets is a physical bookrunner, and Goldman Sachs, JPMorgan, KKR and Rabobank are the physical bookrunners on euro loan. ABN Amro, Commerzbank, ING and Morgan Stanley are passive bookrunners. JPMorgan is the administrative agent.

The loans will be used by the Rotterdam, the Netherlands-based beverage producer to reprice existing U.S. and euro term loans, and the funds from the upsizings will be used to repay a sterling term loan B.

Help at Home upsized, trades

Help at Home increased its fungible 2022-1/2023-1 incremental first-lien term loan due Oct. 29, 2027 to $150 million from $100 million and finalized the original issue discount at 99.5, the tight end of the 99.25 to 99.5 talk, a market source remarked.

Pricing on the incremental term loan is SOFR+CSA plus 500 bps with a 1% floor, in line with existing term loan pricing. CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

Recommitments were due at 2 p.m. ET on Friday and the incremental term loan freed up in the afternoon, with levels quoted at 99½ bid, par offered, another source added.

Jefferies LLC is leading the deal that will be used to pay down revolver borrowings and for general corporate purposes.

Pro forma for the transaction, the incremental first-lien term loan will total about $480.8 million.

Help at Home is a Chicago-based provider of home care services to complex chronic individuals.

Buckeye breaks

Buckeye Partners’ $1.416 billion term loan B-1 due November 2026 broke in the afternoon, with levels quoted at par bid, par ¼ offered, according to a market source.

Pricing on the term loan is SOFR plus 200 bps with no CSA and a 0% floor. The debt was issued at par for existing/rollover orders and at an original issue discount of 99.75 for new money. The loan has 101 soft call protection for six months.

MUFG is leading the deal that will be used to reprice an existing term loan B-1 down from SOFR+10 bps CSA plus 225 bps with a 0% floor.

Buckeye is a Houston-based owner and operator of integrated midstream assets.

ABC starts trading

American Builders & Contractors Supply’s $1.415 billion seven-year term loan B (Ba2) freed to trade during the session, with levels quoted at 99 7/8 bid, par ¼ offered, a market source said.

Pricing on the term loan is SOFR plus 200 bps with a 0% floor and it was sold at an original issue discount of 99.875. The loan has 101 soft call protection for six months.

During syndication, the discount on the term loan was revised from talk in the range of 99.5 to 99.75.

BofA Securities Inc. and Morgan Stanley Senior Funding Inc. are leading the deal that will be used to refinance the company’s existing term loans.

American Builders is a distributor of building products.

Adient hits secondary

Adient’s $635 million seven-year term loan B-2 also began trading, with levels quoted at 99 7/8 bid, par 3/8 offered, according to a market source.

Pricing on the term loan is SOFR plus 275 bps with a 0% floor and it was sold at an original issue discount of 99.75. The debt has 101 soft call protection for six months.

During syndication, the discount on the term loan was tightened from 99.5.

BofA Securities Inc. is the left lead on the deal that will be used to refinance an existing term loan B-1 due April 8, 2028 and to pay related fees, expenses and premiums.

Adient is a Plymouth, Mich.-based manufacturer of automotive seating.

Tacala breaks

Tacala’s $725 million first-lien term loan (B3/B-) freed up on Friday, with levels quoted at par 1/8 bid, par 5/8 offered, a market source remarked.

Pricing on the term loan is SOFR plus 400 bps with a 0.75% floor and it was sold at an original issue discount of 99.75. The debt has 101 soft call protection for six months.

During syndication, pricing on the term loan was lowered from SOFR plus 425 bps and the discount was changed from talk in the range of 99 to 99.5.

KKR Capital Markets is leading the deal that will be used to refinance the company’s existing first- and second-lien loans.

Tacala is a Vestavia Hills, Ala.-based franchise operator of Taco Bell restaurants.

Ankura widened

Ankura Consulting Group raised pricing on its $577.1 million covenant-lite first-lien term loan due March 2028 to SOFR plus 425 bps from SOFR plus 400 bps and added a 25 bps step-down if corporate ratings are B2/B with a stable outlook, according to a market source.

The term loan still has a 0.75% floor, a par issue price, 101 soft call protection for six months and 0 bps CSA.

Recommitments were due at 1 p.m. ET on Friday, the source added.

Deutsche Bank Securities Inc. is the left lead on the deal will be used to reprice an existing $577.1 million first-lien term loan due March 2028 down from SOFR+CSA plus 450 bps with a 0.75% floor. CSA on the existing loan is ARRC standard of 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

Ankura is a specialty consulting platform.

IQ-EQ revised

IQ-EQ trimmed pricing on its $520 million term loan B due July 2028 to SOFR plus 400 bps from SOFR plus 425 bps, and changed price talk on its €500 million term loan B due July 2028 to a range of Euribor plus 400 bps to 425 bps from a range of Euribor plus 425 bps to 450 bps, a market source said.

As before, the U.S. term loan has a 0.5% floor, the euro term loan has a 0% floor, and both term loans have a par issue price and 101 soft call protection for six months.

Recommitments for the U.S. term loan were due at 3 p.m. ET on Friday and recommitments for the euro term loan were due at noon ET on Friday, the source added. Allocations are expected on Monday.

Nomura is the physical bookrunner on the U.S. term loan, and Deutsche Bank Securities Inc., HSBC, NatWest, Goldman Sachs, JPMorgan Chase Bank and Morgan Stanley Senior Funding Inc. are passive bookrunners. Deutsche Bank, HSBC and NatWest are the physical bookrunners on the euro term loan, and Nomura, Goldman Sachs, JPMorgan and Morgan Stanley are passive bookrunners. NatWest is the administrative agent.

The loans will reprice an existing U.S. term loan B due July 2028 down from SOFR plus 475 bps with 0.5% floor and an existing euro term loan B due July 2028 down from Euribor plus 475 bps with a 0% floor.

IQ-EQ, owned by Astorg Asset Management, is an investor services and independent fund specialist.

Plusgrade OID firmed

Plusgrade finalized the original issue discount on its $420 million term loan B (B2/B) due 2031 at 99, the tight end of the 98.5 to 99 talk, a market source remarked.

The term loan is still priced at SOFR plus 450 bps with a 0% floor, and still has 101 soft call protection for six months.

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

JPMorgan Chase Bank, Barclays, BMO Capital Markets, Wells Fargo Securities LLC and Bank of Nova Scotia are leading the deal that will be used to fund an investment in the company by General Atlantic.

Plusgrade is a Montreal-based provider of ancillary revenue solutions for the travel industry.

TenCate on deck

TenCate set a lender call for 10 a.m. ET on Monday to launch an $835 million seven-year term loan B, which includes a $150 million delayed-draw tranche, and a €350 million seven-year term loan B, according to a market source.

The term loans have 101 soft call protection for six months, the source added.

BofA Securities Inc. is the left lead on the U.S. loan. BofA Securities and Jefferies LLC are the joint physical bookrunners on the euro loan. Deutsche Bank Securities Inc., BMO Capital Markets, Societe Generale and ING are arrangers. BofA Securities is the agent.

The term loans will be used to help fund the buyout of the company by Leonard Green & Partners LP from Crestview Partners and select other shareholders, to add cash to the balance sheet and to par related fees. The current senior management team of TenCate will remain invested in the company.

Closing is expected in February.

TenCate is a Netherlands-based manufacturer, distributor and installer of artificial turf and other surfaces.

Fund flows

In other news, actively managed loan fund flows on Thursday were negative $24 million and loan ETFs were positive $28 million, market sources said.

Loan funds reported weekly inflows totaling $213 million, with positive $447 million ETFs. These were the largest inflows for the asset class in 10 weeks, and the tenth inflow in 13 weeks, sources added.

Inflows for loan funds in 2024 total $94 million, following outflows in 2023 totaling $17.3 billion.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.