GoDaddy dips with repricing news; AlixPartners tweaks loan; One Toronto Gaming sets talk

By Sara Rosenberg

New York, July 11 – GoDaddy Inc.’s term loan B-5 weakened slightly in the secondary market on Tuesday after the company approached lenders with a repricing of the debt.

Meanwhile, in more happenings, AlixPartners LLP firmed the spread on its incremental first-lien term loan B at the low end of guidance, set the CSA and modified the original issue discount talk.

Also, One Toronto Gaming released price talk on its term loan B in connection with its lender call, and CentroMotion (LSF12 Badger Bidco LLC) joined this week’s new issue calendar.

GoDaddy softens

GoDaddy’s term loan B-5 dipped to par 1/8 bid, par 7/8 offered on Tuesday from par ¼ bid, par ½ offered on Monday as the company launched a repricing of the tranche to investors, a trader said.

A lender call was held at noon ET on Tuesday to launch the repriced $1,761,150,000 term loan B-5 (Ba1/BB) due November 2029 at talk of SOFR plus 275 basis points with a 25 bps step-down when first-lien net leverage is below 1.45x, a 0% floor, a par issue price and 101 soft call protection for six months, another source remarked.

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

RBC Capital Markets, HSBC Securities (USA) Inc., Wells Fargo Securities LLC, BNP Paribas Securities Corp., JPMorgan Chase Bank, Morgan Stanley Senior Funding Inc., Barclays, MUFG, Goldman Sachs Bank USA and Deutsche Bank Securities Inc. are leading the deal.

The transaction will take pricing on the existing $1,761,150,000 term loan B-5 due November 2029 down from SOFR plus 325 bps with a 25 bps step-down when first-lien net leverage is below 1.45x and a 0% floor.

GoDaddy is Tempe, Ariz.-based provider of web hosting and domain names.

AlixPartners updated

AlixPartners finalized pricing on its $375 million incremental first-lien term loan B due Feb. 4, 2028 at SOFR plus 275 bps, the low end of the SOFR plus 275 bps to 300 bps talk, made the loan fungible with the company’s existing term loan and set the CSA at ARRC standard of 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate, from initial talk of 10 bps if it is non-fungible with the existing term loan and ARRC if it is fungible, and changed the original issue discount talk to a range of 99.03 to 99.25 from prior talk in the 99 area, according to a market source.

As before, the incremental term loan has a 0.5% floor and 101 soft call protection for six months.

Commitments were due at 5 p.m. ET on Tuesday, accelerated from noon ET on Thursday, and allocations are expected on Wednesday, the source added.

BofA Securities Inc., HSBC Securities (USA) Inc., Goldman Sachs Bank USA and JPMorgan Chase Bank are leading the deal that will be earmarked for a distribution to shareholders before year-end, but up to half of the proceeds could be prioritized for financing tuck-in acquisitions, if suitable acquisitions are completed in the interim.

AlixPartners is a New York-based team of business and consulting professionals delivering change for clients in high impact situations.

One Toronto guidance

One Toronto Gaming held its lender call on Tuesday afternoon and announced talk on its $800 million seven-year term loan B at SOFR plus 425 bps to 450 bps with a 25 bps step-down at first-lien net covenant adjusted leverage of 2.25x, a 25 bps step-down upon completion of an initial public offering, a 0.5% floor, an original issue discount of 97.5 to 98 and 101 soft call protection for six months, a market source remarked.

Commitments are due at noon ET on July 20, the source added.

Barclays is the left lead on the deal that will be used with $400 million of other senior secured debt to refinance the company’s existing capital structure, to pay related fees and expenses and for general corporate purposes.

One Toronto Gaming, located in the greater Toronto area, is a gaming, entertainment and hospitality company operating under an equal-interest partnership between Great Canadian Gaming Corp. and Brookfield Business Partners and its institutional partners.

CentroMotion on deck

CentroMotion emerged with plans to hold a lender call at 11 a.m. ET on Wednesday to launch a $450 million term loan B (B2/B) due 2030, according to a market source.

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

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

JPMorgan Chase Bank is the left lead on the deal that will be used to help fund the buyout of the company by Lone Star Funds from One Rock Capital Partners LLC.

CentroMotion is a Waukesha, Wis.-based designer and manufacturer of highly engineered systems and solutions for industrial and transportation applications.

Fund flows

In other news, actively managed loan fund flows on Monday were positive $7 million and loan ETFs were $0, market sources said.

Outflows for loan funds week-to-date total an estimated $224 million, compared to inflows in the prior week of $53 million, sources added.

Loan indices rise

IHS Markit’s iBoxx loan indices were stronger on Monday, with the Leveraged Loan indexes (MiLLi) closing out the day up 0.14% and the Liquid Leveraged Loan indices (LLLi) closing out the day up 0.12%.

Month to date, the MiLLi is up 0.5% and year to date it is up 6.76%, and the LLLi is up 0.43% month to date and up 6.61% year to date.

Average secondary market bids in the U.S. on Monday were 91.86, up 0.12% from the previous day and down 0.02% year to date.

According to the IHS Markit data, some of the top advancers on Monday were Sandvine/Procera’s October 2018 covenant-lite term loan at 94, up from 91, Accuride’s November 2017 term loan B at 83, up from 81.36, and Tortoise Investments’ January 2018 covenant-lite term loan at 47.33, up from 46.57.

Some top decliners on Monday were Packers Sanitation Services/PSSI’s March 2021 covenant-lite term loan at 67.25, down from 68.89, Jo-Ann Stores’ July 2021 covenant-lite term loan B at 49.6, down from 50.67, and Lightstone’s May 2022 extended term loan B at 89.25, down from 90.13.

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