Allspring Global term loan frees to trade; Therm-O-Disc pricing changes surface

By Sara Rosenberg

New York, May 25 – Allspring Global Investments (Allspring Buyer LLC) finalized the original issue discount on its incremental term loan B at the wide end of guidance and then the debt broke for trading on Wednesday afternoon.

Furthermore, Therm-O-Disc Inc. (Token Buyer Inc.) lifted the spread on its first-lien term loan and modified the original issue discount.

Allspring updated, breaks

Allspring Global Investments set the original issue discount on its non-fungible $250 million incremental senior secured covenant-lite term loan B due Nov 1, 2028 (Ba2/BB-/BB) at 96, the wide end of the 96 to 97 talk, according to a market source.

The incremental term loan is still priced at SOFR plus 400 basis points with 25 bps step-downs at 3.75x first-lien net leverage and upon the consummation of a qualified initial public offering, a 0.5% floor and 0 bps CSA, and has 101 soft call protection for six months.

On Wednesday, the incremental term loan made its way into the secondary market, with levels quoted at 96˝ bid, 97˝ offered, a trader added.

Morgan Stanley Senior Funding Inc. is the left lead on the deal that will be used to fund a distribution to shareholders and pay related fees, expenses and original issue discount.

Closing is expected in early June.

Allspring, formerly known as Wells Fargo Asset Management, is an asset management firm.

Therm-O-Disc revised

Therm-O-Disc raised pricing on its $355 million seven-year senior secured covenant-lite first-lien term loan B (B2/B-) to SOFR plus 600 bps from talk in the range of SOFR plus 500 bps to 525 bps and changed the original issue discount to 92 from talk in the range of 97.5 to 98, a market source remarked.

As before, the first-lien term loan has a 0.5% floor, CSA of 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate, and 101 soft call protection for one year.

Earlier in syndication, the CSA on the first-lien term loan was modified from 0 bps, leverage-based and initial public offering-based pricing step-downs were removed, and the call protection was extended from six months.

Recommitments are due at noon ET on Thursday, the source added.

The company’s $520 million of credit facilities also include a $65 million revolver (B2/B-) and a $100 million second-lien term loan (Caa2/CCC+).

Therm-O-Disc leads

Morgan Stanley Senior Funding Inc., RBC Capital Markets and Jefferies LLC are leading Therm-O-Disc’s credit facilities that will be used with cash on hand to fund the buyout of the company by One Rock Capital Partners LLC from Emerson and to pay related fees and expenses.

Closing is expected in the first half of this year, subject to applicable regulatory approvals and customary conditions.

Therm-O-Disc is a Mansfield, Ohio-based designer and manufacturer of safety-critical sensors, thermal cutoffs and sealed connecting components primarily used in heating, ventilation and air conditioning, appliance, water heater, industrial, aerospace & defense, and transportation applications.

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