Delivery Hero term loan breaks for trading atop OID; Everstream tweaks loan size

By Sara Rosenberg

New York, April 8 – Delivery Hero trimmed the spread on its term loan B and tightened the original issue discount, and then the debt made its way into the secondary market on Friday.

In more happenings, Everstream increased the size of its delayed-draw term loan, and Mavis Tire Express Services TopCo Corp. and VXI Global Solutions joined the near-term primary calendar.

Delivery revised, trades

Delivery Hero cut pricing on its $825 million 5.25-year covenant-lite term loan B (B-) to SOFR plus 575 basis points from talk in the range of SOFR plus 625 bps to 650 bps and moved the original issue discount to 97.5 from 97, according to a market source.

As before, the term loan has a 0.5% floor, and call protection of non-callable for one year, then at 103 in year two.

On Friday, the term loan freed to trade, with levels quoted at 98˝ bid, another source added.

JPMorgan Chase Bank is the sole physical bookrunner on the deal. UniCredit, HSBC and Barclays are bookrunners. HSBC is the agent.

The term loan will be used with a €300 million pre-placed term loan B (B-) for general corporate purposes, including to potentially refinance existing convertible debt at maturity, working capital and guarantees.

The company also plans on getting a €375 million three-year revolver with two one-year extension options.

Delivery Hero is a Berlin-based food delivery service.

Everstream upsizes

Everstream raised its seven-year final maturity, three-year availability, delayed-draw term loan to $250 million from $225 million, a market source remarked.

Talk on the delayed-draw term loan and $494.5 million seven-year term loan remained at SOFR+CSA plus 350 bps with time-based step-ups, a 0% floor and an original issue discount of 99.5 to 99.75.

The company’s now $784.5 million of credit facilities also include a $40 million five-year revolver.

The transaction is currently oversubscribed at talk and expected to allocate during the week of April 11, the source added.

Societe Generale, Natixis, ING, Santander, SMBC, CoBank, Macquarie Capital (USA) Inc., RBC Capital Markets, TD Securities (USA) LLC and Vantage are leading the deal that will be used to refinance existing debt, to finance capital expenditures and permitted acquisitions, and for general corporate purposes.

AMP Capital is the sponsor.

Everstream is a Cleveland-based fiber telecom provider.

Mavis readies deal

Mavis set a lender call for 11 a.m. ET on Monday to launch a fungible $275 million incremental first-lien term loan due May 2028 talked at SOFR+CSA plus 400 bps with a 0.75% floor, according to a market source.

CSA is 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

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

Jefferies LLC is leading the deal that will be used to fund an acquisition and repay existing revolver borrowings.

Pro forma for the transaction, the first-lien term loan will total $2.18 billion.

With the incremental term loan, there will be a conversion of the existing loans to SOFR from Libor with a CSA of 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate. The conversion will be done as a negative consent where lenders have five business days from the posting of the change.

Mavis is a Millwood, N.Y.-based tire and service retailer.

VXI on deck

VXI Global Solutions will hold a lender call at 10 a.m. ET on Tuesday to launch a $615 million seven-year term loan B (B), a market source said.

The term loan has 101 soft call protection for six months, the source added.

BofA Securities Inc. is leading the deal that will be used to help fund the buyout of the company by Bain Capital from Carlyle Group.

VXI is a Los Angeles-based provider of customer care and customer experience solutions.

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