Nord Anglia, Caesars, WhiteWater break; Cushman gains; Mauser, Franchise Group release talk

By Sara Rosenberg

New York, Jan. 25 – Nord Anglia Education (Fugue Finance) increased the sizes of its U.S. and euro term loans, trimmed pricing on the U.S. tranche and firmed the issue price on the euro tranche at the tight end of revised guidance, and Caesars Entertainment Inc. finalized the original issue discount on its term loan B at the tight end of modified talk, and then these deals freed up for trading on Wednesday.

Also, WhiteWater Whistler Holdings LLC set the spread on its term loan B at the low end of guidance, added a step-down and revised the original issue discount ahead of hitting the secondary market, and Cushman & Wakefield’s extended term loan B moved up in trading from where it broke late in the previous session.

Furthermore, Mauser Packaging Solutions Holding Co. and Franchise Group Inc. disclosed price talk with launch, and Indicor (Roper Industrial Products Investment Co. LLC) and Zest Dental Solutions (Zest Acquisition Corp.) joined this week’s primary calendar.

Nord Anglia revised

Nord Anglia Education raised its U.S. term loan B due January 2028 to $610 million from $500 million and reduced pricing to SOFR plus 450 basis points from revised talk of SOFR plus 475 bps and initial talk of SOFR plus 475 bps to 500 bps, a market source remarked.

Additionally, the company upsized its euro term loan B due January 2028 to €1.515 billion from €1.3 billion and set the original issue discount at 98, the tight end of revised talk of 97.5 to 98 and tighter than initial talk of 97, the source continued.

The U.S. term loan still has a 0.5% floor and an original issue discount of 98, the euro term loan is still priced at Euribor plus 475 bps with a 0% floor, and both term loans still have 101 soft call protection for six months.

Previously in syndication, the discount on the U.S. term loan was modified from 97 and the spread on the euro term loan finalized at the low end of the Euribor plus 475 bps to 500 bps talk.

Recommitments for the U.S. term loan were due at 11 a.m. ET on Wednesday and recommitments for the euro term loan were due at 8 a.m. ET on Wednesday.

Nord Anglia frees up

Late in the day, Nord Anglia’s U.S. term loan made its way into the secondary market, with levels quoted at 99 bid, 99¾ offered before moving up to 99½ bid, par offered, another source added.

The euro term loan will allocate on Thursday morning.

Deutsche Bank Securities Inc. and JPMorgan Chase Bank are joint physical bookrunners on the U.S. term loan, and HSBC is a joint bookrunner. HSBC, Deutsche Bank and JPMorgan are joint physical bookrunners on the euro term loan. Mandated lead arrangers on the loans are Citigroup Global Markets Inc., DBS, Goldman Sachs, Morgan Stanley Senior Funding Inc., Standard Chartered, BofA Securities Inc. and E. Sun. HSBC is the administrative agent.

The loans (B1/B) will be used to extend and refinance the company’s existing U.S. and euro first-lien term loans due September 2024 and, due to the upsizings, to repay $200 million of second-lien term loan borrowings and pay transaction fees and expenses.

BPEA EQT and CPP Investments are the sponsors.

Nord Anglia is a London-based K-12 schools platform.

Caesars updated, trades

Caesars Entertainment set the original issue discount on its $2.5 billion seven-year term loan B at 99, the tight end of revised talk of 98.5 to 99 and tighter than initial talk of 97.5, a market source said.

The term loan is priced at SOFR+10 bps CSA plus 325 bps with a step-down to SOFR plus 300 bps when total leverage is less than or equal to 3.75x and a 0.5% floor, and has 101 soft call protection for six months.

Previously in syndication, the Reno, Nev.-based gaming and entertainment company upsized the term loan from $1.75 billion, cut pricing from SOFR plus 375 bps and added the step-down.

On Wednesday, the term loan B began trading, with levels quoted at 99½ bid, par offered, another source added.

JPMorgan Chase Bank is the left lead on the deal that will be used with $2 billion of senior secured notes, upsized recently from $1.25 billion, to repay Caesars Resort Collection LLC’s existing term B due 2024, to pay related fees and expenses, and, due to the upsizings, to repay an incremental term loan due 2025 and add cash to the balance sheet for general corporate purposes. With the bond upsizing, the company canceled plans to draw $415 million under its revolver and use $30 million of cash on hand for the transaction.

WhiteWater tweaked, breaks

WhiteWater firmed pricing on its $500 million seven-year senior secured term loan B (Ba2/BB+) at SOFR plus 325 bps, the low end of the SOFR plus 325 bps to 350 bps talk, added a 25 bps step-down at less than or equal to 5.5x proportionate consolidated total net leverage and adjusted the original issue discount to 99.5 from talk in the range of 98 to 99, according to a market source.

As before, the term loan has a 0% floor, 101 soft call protection for six months and no CSA.

Recommitments were due at 11 a.m. ET on Wednesday and the term loan freed to trade in the afternoon, with levels quoted at 99 5/8 bid, par 1/8 offered before moving up to 99¾ bid, par ¼ offered, another 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.

Cushman strengthens

Cushman & Wakefield’s $1 billion amended and extended term loan B (BB) due January 2030 was quoted at 99 5/8 bid, par 1/8 offered on Wednesday after breaking for trading late Tuesday at 98½ bid, 99 offered, a market source said.

Pricing on the extended term loan is SOFR+10 bps CSA plus 325 bps with a 0.5% floor and it was sold at an original issue discount of 98.

During syndication, the spread on the loan was cut from SOFR plus 375 bps and the discount firmed at the tight end of the 97.5 to 98 talk.

JPMorgan Chase Bank is leading the deal that will be used to amend and extend a portion of the company’s existing $2.6 billion term loan B due August 2025, which is priced at Libor plus 275 bps with a 0% floor.

Cushman & Wakefield is a Chicago-based commercial real estate services company.

Mauser holds call

Mauser Packaging Solutions held a lender call at 2 p.m. ET on Wednesday, launching a $750 million term loan B (B2/B) due Aug. 15, 2026 talked at SOFR plus 450 bps with no floor, an original issue discount of 96 and 101 soft call protection for six months, according to a market source.

Commitments are due at 5 p.m. ET on Feb. 1, the source added.

BofA Securities Inc., BMO Capital Markets, Goldman Sachs Bank USA, JPMorgan Chase Bank, KKR Capital Markets and Morgan Stanley Senior Funding Inc. are leading the deal that will be used with $2.75 billion of senior secured notes and an equity investment to refinance a 2017 term loan and existing secured notes.

Mauser is an Oak Brook, Ill.-based supplier of rigid packaging products and services.

Franchise guidance

Franchise Group held its lender call during the session and announced price talk on its non-fungible $200 million add-on first-lien term loan (B1/B+) due March 10, 2026 at SOFR+CSA plus 475 bps with a 0.75% floor and an original issue discount of 94 to 95, a market source remarked.

CSA is 11.4 bps one-month rate, 26.2 bps three-month rate and 42.8 bps six-month rate, the source said.

The add-on term loan has 101 soft call protection for six months.

Commitments are due on Monday, with allocations expected on Tuesday.

JPMorgan Chase Bank is leading the deal that will be used to repay ABL credit facility borrowings.

Pro forma secured net leverage is expected to be 2.49x, and total net leverage is expected to be 3.22x.

Franchise Group is a Delaware, Ohio-based owner and operator of franchised and franchisable businesses.

Indicor on deck

Indicor set a bank meeting for 10:30 a.m. ET on Thursday to launch a $1,230,484,042 first-lien term loan due Nov. 22, 2029 and a €300 million first-lien term loan due Nov. 22, 2029, according to market sources.

Commitments for the U.S. first-lien term loan are due at 5 p.m. ET on Feb. 3, commitments for the euro term loan are due at noon ET on Feb. 3 and allocations are expected on Feb. 6, sources added.

UBS Investment Bank, BNP Paribas Securities Corp., RBC Capital Markets, BMO Capital Markets, Mizuho, Natixis, TD Securities and Santander are leading the deal, with UBS left on the U.S. loan and BNP left on the euro loan.

The company’s credit facilities, which also include a $300 million revolver due Nov. 22, 2027 and a $475 million privately placed second-lien term loan due Nov. 22, 2030, were used to help fund Clayton, Dubilier & Rice LLC’s roughly $2.6 billion acquisition of a majority stake in the industrial products businesses of Roper Technologies Inc., rebranded as Indicor. The transaction closed on Nov. 22, 2022 and Roper retained a 49% minority interest in the company.

Indicor is a provider of products and services within three primary product categories: material preparation and testing, sensors and controls, and flow control.

Zest joins calendar

Zest Dental emerged with plans to hold a lender call at 11 a.m. ET on Thursday to launch a $320 million first-lien term loan, a market source remarked.

Citigroup Global Markets Inc. is leading the deal that will be used with cash from the balance sheet to refinance the company’s existing term loans.

Zest is a Carlsbad, Calif.-based developer, manufacturer and supplier of solutions to treat both natural teeth and implant supported restorations.

Fund flows

In other news, actively managed loan fund flows on Tuesday were negative $126 million and loan ETFs were positive $6 million, market sources said.

Outflows for actively managed loan funds were the heaviest of 2023 on Tuesday, sources added.

Loan indices rise

IHS Markit’s iBoxx loan indices were stronger on Tuesday, with the Leveraged Loan indexes (MiLLi) closing out the day up 0.05% and the Liquid Leveraged Loan indices (LLLi) closing out the day up 0.07%.

Month to date, the MiLLi is up 2.22% and the LLLi is up 2.45%.

Average secondary market bids in the U.S. on Tuesday were 92.5, up 0.05% from the previous day and up 0.67% year to date.

According to the IHS Markit data, some of the top advancers on Tuesday were AOT Bedding’s June 2020 second out term loan at 59.04, up from 50.93, West Marine’s June 2021 covenant-lite term loan at 44.08, up from 42.25, and National CineMedia’s June 2018 term loan B at 23.33, up from 22.66.

Some top decliners on Tuesday were Learfield Communications’ December 2016 covenant-lite term loan B at 61.50, down from 73.77, Shutterfly’s July 2021 covenant-lite term loan at 46, down from 53, and LogMeIn’s August 2020 covenant-lite term loan B at 41.92, down from 46.56.

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