Peloton, Barracuda Networks break for trading; Premise Health discloses loan talk

By Sara Rosenberg

New York, May 17 – Peloton Interactive Inc. firmed the original issue discount on its term loan at the midpoint of guidance before freeing up for trading on Tuesday, and Barracuda Networks Inc.’s bank debt broke as well.

In other news, Premise Health released price talk on its incremental first-lien term loan in connection with its lender call.

Peloton updated, frees

Peloton Interactive finalized the original issue discount on its $750 million five-year senior secured term loan at 95.5, the middle of the 95 to 96 talk, a market source said.

As before, the term loan is priced at SOFR plus 650 basis points with a 50 bps step-up if it is not rated by Moody’s or S&P within six months of closing and a 0.5% floor, and is non-callable for one year, then at 103 in year two.

On Tuesday, the term loan made its way into the secondary market, with levels quoted at 96¾ bid, 97¾ offered, another source added.

JPMorgan Chase Bank and Goldman Sachs Bank USA are leading the deal that will be used for working capital and capital expenditures.

Peloton is a New York-based exercise and media company.

Barracuda starts trading

Barracuda Networks’ bank debt broke for trading, with the $1.115 billion seven-year first-lien term loan (B2/B) quoted at 97¼ bid, 98 offered, a market source remarked.

Pricing on the first-lien term loan is SOFR plus 450 bps with a 0.5% floor and it was sold at an original issue discount of 97. The debt has 101 soft call protection for six months.

The company’s $1.72 billion of credit facilities also include a $150 million revolver (B2/B) and a $455 million eight-year second-lien term loan (Caa2/CCC+).

The second-lien term loan is priced at SOFR plus 700 bps with a 0.5% floor and was issued at a discount of 97. This tranche has hard call protection of 102 in year one and 101 in year two.

During syndication, pricing on the first-lien term loan was increased from talk in the range of SOFR plus 400 bps to 425 bps and the discount was revised from 99, and pricing on the second-lien term loan firmed at the high end of the SOFR plus 675 bps to 700 bps talk and the discount widened from 99.

Barracuda lead banks

UBS Investment Bank, KKR Capital Markets, Barclays, Jefferies LLC, PSP, SVB, Stone Point and Wells Fargo Securities LLC are leading Barracuda Networks’ credit facilities, with UBS the left lead on the first-lien and KKR the left lead on the second-lien.

Proceeds will be used to help fund the buyout of the company by KKR from Thoma Bravo.

Closing is expected this year, subject to customary conditions.

Barracuda Networks is a provider of cybersecurity solutions.

Premise Health guidance

In more happenings, Premise Health held its lender call on Tuesday morning and announced price talk on its non-fungible $191 million incremental first-lien term loan at SOFR plus 450 bps to 475 bps with a 0.5% floor and an original issue discount of 98, according to a market source.

Commitments are due at noon ET on May 25, the source added.

Ares Management Credit and Golub are leading the deal that will be used to fund a distribution to sponsor OMERS and other shareholders.

Premise Health is a Brentwood, Tenn.-based provider of employer-sponsored healthcare.

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