Indicor, H.B. Fuller break; Alliant, American, Par Petroleum, Castelake, Hanesbrands launch

By Sara Rosenberg

New York, Feb. 6 – Indicor LLC’s (Roper Industrial Products Investment Co. LLC) U.S. first-lien term loan made its way into the secondary market on Monday and was quoted above its original issue discount, and H.B. Fuller Co.’s first-lien term loan B freed up as well.

Meanwhile, in the primary market, Alliant Holdings, American Airlines Inc., Par Petroleum LLC, Castlelake Aviation and Hanesbrands Inc. released price talk with launch, and Traverse Midstream Partners LLC and Amynta joined this week’s primary calendar.

Indicor hits secondary

Indicor’s $1,230,484,043 first-lien term loan (B1/B) due Nov. 22, 2029 broke for trading on Monday, with levels quoted at 96¾ bid, 97½ offered, according to a market source.

Pricing on the term loan is SOFR plus 450 basis points with a 0.5% floor and it was sold at an original issue discount of 96.5. The debt has 101 soft call protection for one year from the funding date.

The company is also getting a €300 million first-lien term loan (B1/B) due Nov. 22, 2029 priced at Euribor plus 500 bps with a 0% floor and issued at a discount of 95. This tranche has 101 soft call protection for one year from the funding date as well.

During syndication, pricing on the U.S. term loan was lowered from revised talk of SOFR plus 475 bps and initial talk of SOFR plus 500 bps, and the discount was tightened from revised talk in the range of 95.5 to 96 and initial talk of 94. As for the euro term loan, pricing firmed at the low end of the Euribor plus 500 bps to 525 bps talk and the discount finalized at the tight end of revised talk of 94.5 to 95 and tighter than initial talk of 93. In addition, some lender friendly revisions were made to documentation.

Indicor leads

UBS Investment Bank, BNP Paribas Securities Corp., RBC Capital Markets, BMO Capital Markets, Mizuho, Natixis, TD Securities and Santander are the arrangers on Indicor’s debt, with UBS the left lead on the U.S. loan and BNP left on the euro loan. UBS is the administrative agent.

Along with the first-lien term loans, the company’s credit facilities include a $300 million revolver due Nov. 22, 2027 (B1/B) and a $475 million privately placed second-lien term loan due Nov. 22, 2030.

Proceeds 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. Roper retained a 49% minority interest in Indicor.

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

H.B. Fuller breaks

H.B. Fuller’s $800 million seven-year first-lien term loan B (Ba1/BB+/BBB-) freed to trade too, with levels quoted at par 1/8 bid, par 5/8 offered, a market source remarked.

Pricing on the term loan is SOFR plus 250 bps with a 0.5% floor and it was issued at par. The debt has 101 soft call protection for six months.

During syndication, pricing on the term loan firmed at the low end of the SOFR plus 250 bps to 275 bps talk and the issue price was changed from 99.

JPMorgan Chase Bank is leading the deal that will be used with a term loan A to refinance the company’s existing term loan B due 2024.

H.B. Fuller is a St. Paul, Minn.-based industrial adhesives, sealants, coatings and specialty materials company.

Alliant holds call

Moving to the primary market, Alliant Holdings emerged in the morning with plans to hold a lender call at noon ET on Monday to launch a $1.25 billion term loan B-5 (B) due 2027 talked at SOFR plus 350 bps with a 0.5% floor, an original issue discount of 99, 101 soft call protection for six months and no CSA, according to a market source.

JPMorgan Chase Bank, Morgan Stanley Senior Funding Inc., SPC Capital Markets, Capital One, Truist, RBC Capital Markets, BofA Securities Inc., Fifth Third, Goldman Sachs Bank USA, KKR Capital Markets, Macquarie Capital (USA) Inc. and R. Seelaus are leading the deal. Morgan Stanley is the administrative agent.

The loan will be used with $1.25 billion of senior secured notes to refinance the company’s term loan B1 due 2025 and term loan B-2 due 2025, and for general corporate purposes.

The company is also looking to amend its term loan B-4 due 2027 to shift to SOFR from Libor.

Commitments for the new loan and the amendment deadline is 5 p.m. ET on Thursday, the source added.

Alliant is a Newport Beach, Calif.-based specialty insurance brokerage firm.

American comes to market

American Airlines held a lender call at 3 p.m. ET, launching a $1 billion senior secured term loan B (Ba3/B-/B) due February 2028 at talk of SOFR+CSA plus 275 bps to 300 bps with a 0% floor, an original issue discount of 97 to 97.5 and 101 soft call protection for six months, a market source said.

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 added.

Barclays, Goldman Sachs Bank USA, BofA Securities Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., JPMorgan Chase Bank, Morgan Stanley Senior Funding Inc., ICBC, SMBC, BNP Paribas Securities Corp., Credit Agricole, Standard Chartered, MUFG, HSBC Securities (USA) Inc., US Bank and Bank of Texas are leading the deal that will be used to amend and extend a portion of the company’s existing $1.752 billion SA SGR backed term loan B due June 2025. The remainder of the term loan B will be refinanced with other secured debt that will be secured by the collateral package on a pari passu basis.

American Airlines is a Fort Worth, Tex.-based airline.

Par Petroleum guidance

Par Petroleum released talk of SOFR+10 bps CSA plus 425 bps with a 0.5% floor and an original issue discount of 97 to 98 on its $550 million seven-year covenant-lite term loan B (B1/BB) that launched with a call in the morning, a market source remarked.

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

Commitments are due at noon ET on Feb. 14.

Wells Fargo Securities LLC, BofA Securities Inc. and MUFG are leading the deal, which will be used to refinance the company’s 7¾% notes due 2025, 12 7/8% senior secured notes due 2026 and existing term loan B due 2026, and for general corporate purposes.

The company also plans to refinance its existing ABL credit facility due 2025 with a new $150 million ABL credit facility due 2028, which it expects to upsize to about $550 million upon the closing of its acquisition of 63,000 bpd Billings refinery and associated marketing and logistics assets from ExxonMobil Corp.

Closing on the acquisition is expected in the second quarter, subject to customary conditions.

Par Petroleum is a subsidiary of Par Pacific, a Houston-based refiner, marketer and distributor of crude oil.

Castlelake shops loan

Castlelake Aviation launched on a call at 2 p.m. ET a $635 million incremental first-lien term loan B (/BB/BB+) due October 2027 talked at SOFR plus 300 bps with a 0.5% floor, an original issue discount of 98.5 and 101 soft call protection for six months, according to a market source.

Commitments are due on Feb. 14, the source added.

Goldman Sachs Bank USA is the left lead on the deal that will be used to refinance existing debt, including to repay revolver borrowings and the AirAsia term loan facility, and for general corporate purposes.

Castlelake Aviation is a Dublin, Ireland-based provider of aircraft financing, leasing and servicing solutions.

Hanesbrands launches

Hanesbrands came out in the morning with intentions to host a lender call at 1 p.m. ET to launch a $750 million seven-year term loan B (Ba2/BB+) talked at SOFR plus 400 bps with a 0.5% floor, an original issue discount of 97 to 98 and 101 soft call protection for six months, a market source said.

Commitments are due at 5 p.m. ET on Feb. 15, the source added.

JPMorgan Chase Bank is leading the deal that will be used with other unsecured debt to refinance euro 3½% senior notes due 2024 and U.S. 4 5/8% senior notes due 2024.

HanesBrands is a Winston-Salem, N.C.-based marketer of everyday basic apparel.

Traverse readies deal

Traverse Midstream set a lender call for 10 a.m. ET on Tuesday to launch a $1.28 billion five-year term loan B (B2) talked at SOFR+10 bps CSA plus 400 bps with a 0.5% floor, an original issue discount of 98.5 to 99 and 101 soft call protection for six months, according to a market source.

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

JPMorgan Chase Bank is leading the deal that will be used to repay an existing term loan B, repay borrowings under a super senior revolver and to pay transaction fees and expenses.

Traverse was formed in June 2014 by the Energy & Minerals Group to build a portfolio of non-operated midstream assets.

Amynta on deck

Amynta will hold a lender call at 10 a.m. ET on Tuesday to launch a $1.04 billion term loan B (B-) due Feb 28, 2028, a market source remarked.

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

BofA Securities Inc., Barclays, BMO Capital Markets, Deutsche Bank Securities Inc., Jefferies LLC and others to be added are leading the deal that will be used to repay the company’s first-lien term loans due 2025 and to pay transaction fees and expenses.

Amynta Agency Borrower Inc. And Amynta Warranty Borrower Inc. are the borrowers.

Amynta is a New York-based insurance services company.

Fund flows

In other news, actively managed loan fund flows on Friday were negative $58 million and loan ETFs were positive $84 million, market sources said.

Outflows for loan funds in 2023 total $2.4 billion following $12.7 billion of outflows in fourth quarter 2022 and $12.8 billion of outflows in 2022, sources added.

Loan indices rise

IHS Markit’s iBoxx loan indices were stronger on Friday, with the Leveraged Loan indexes (MiLLi) closing out the day up 0.12% and the Liquid Leveraged Loan indices (LLLi) closing out the day up 0.19%.

Month to date, the MiLLi is up 0.32% and year to date it is up 2.91%, and the LLLi is up 0.35% month to date and up 2.99% year to date.

Average secondary market bids in the U.S. on Friday were 92.51, down 0.14% from the previous day and up 0.67% year to date.

According to the IHS Markit data, some of the top advancers on Friday were LaserShip May 2021 covenant-lite term loan at 80.44, up from 76.56, Telesat Canada’s December 2019 covenant-lite term loan at 52.83, up from 50.50, and National CineMedia’s June 2018 term loan B at 31.15, up from 30.40.

Some top decliners on Friday were Shutterfly’s July 2021 covenant-lite term loan at 50.06, down from 52.63, Transcendia/Transilwrap’s November 2017 covenant-lite term loan B at 69.31, down from 72.56, and Zep’s August 2017 covenant-lite term loan at 80, down from 82.67.

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