GFL Environmental accelerates deadline; WhiteWater, ECL Entertainment release price talk

By Sara Rosenberg

New York, Jan. 18 – In the primary market on Wednesday, GFL Environmental Inc. moved up the commitment deadline for its recently launched amended and extended term loan transaction.

Additionally, WhiteWater Whistler Holdings LLC came out with pricing guidance on its term loan B in connection with its lender call, and ECL Entertainment LLC launched an incremental first-lien term loan B, which is expected to wrap up quickly as commitments are due on Thursday afternoon.

GFL tweaks timing

GFL Environmental accelerated the commitment deadline for its roughly $1.287 billion senior secured first-lien term loan due May 31, 2027 to 5 p.m. ET on Thursday from 5 p.m. ET on Monday, a market source said.

The term loan, which launched with a call on Tuesday afternoon, is talked at SOFR+10 basis points CSA plus 300 bps to 325 bps with a 0.5% floor, an original issue discount of 98.5 to 99.5 and 101 soft call protection for six months.

Barclays is leading the deal.

Proceeds will be used to amend and extend a roughly $1.287 billion senior secured first-lien term loan due May 2025 that is priced at Libor plus 300 bps with a 0.5% floor.

GFL is a Vaughan, Ont.-based environmental services company.

WhiteWater talk

WhiteWater Whistler held its lender call on Wednesday morning and announced price talk on its $500 million seven-year senior secured term loan B (Ba2/BB+) at SOFR plus 325 bps to 350 bps with a 0% floor and an original issue discount of 98 to 99, a market source remarked.

The term loan has 101 soft call protection for six months and no CSA.

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

Barclays, Blackstone, Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC, Macquarie Capital (USA) Inc. and MUFG are leading the deal that will be used to fund I Squared Capital’s acquisition of a 62.5% controlling equity stake in Whistler Pipeline LLC.

Whistler is an owner-operated Gulf Coast natural gas pipeline with direct connection to LNG demand and includes the Whistler Pipeline system, a 70% interest in ADCC Pipeline LLC and a 50% interest in Waha Gas Storage LLC.

ECL comes to market

ECL Entertainment launched in the morning a fungible $35 million incremental first-lien term loan B due April 2028 talked at SOFR+CSA plus 750 bps with a 0.75% floor and an original issue discount of 99, according to a market source.

CSA is 11 bps one-month rate, 26 bps three-month rate and 43 bps six-month rate, the source said.

The incremental term loan has 101 hard call protection through October 2024, just like the existing term loan B.

Commitments are due at 2 p.m. ET on Thursday, the source added.

Credit Suisse Securities (USA) LLC is leading the deal that will be used with excess cash and contributed land to fund a joint venture investment and a distribution to shareholders.

With this transaction, pricing on the regional gaming company’s existing term loan B will transition to SOFR from Libor plus 750 bps with a 0.75% floor.

Fund flows

In other news, actively managed loan fund flows on Tuesday were negative $42 million and loan ETFs were positive $6 million, market sources said.

Leveraged loan funds are tracking only their second mild inflow in 32 weeks, sources added.

Inflows for loan funds week-to-date total an estimated $53 million, following outflows in the prior week of $279 million.

Loan indices rise

IHS Markit’s iBoxx loan indices were stronger on Tuesday, with the Leveraged Loan indexes (MiLLi) closing out the day up 0.19% and the Liquid Leveraged Loan indices (LLLi) closing out the day up 0.18%.

Month to date, the MiLLi is up 1.82% and the LLLi is up 2.09%.

Average secondary market bids in the U.S. on Tuesday were 92.35, up 0.03% from the previous day and up 0.51% year to date.

According to the IHS Markit data, some of the top advancers on Tuesday were Isagenix’s June 2018 term loan at 35.60, up from 28.92, American Auto Auction/XLerate’s December 2021 covenant-lite term loan at 83.50, up from 80, and Mitel Networks’ November 2018 fourth out no roll up covenant-lite term loan at 24.57, up from 23.75.

Some top decliners on Tuesday were AOT Bedding’s June 2020 new money first out term loan at 93.67, down from 96.59, Loyalty Ventures’ November 2021 covenant-lite term loan B at 38.85, down from 40, and Strategic Materials’ November 2017 covenant-lite term loan at 76.69, down from 78.75.

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