AMC seesaws; BMC Software gains; Tamko Building, Restaurant Brands, WaterBridge set talk

By Sara Rosenberg

New York, Sept. 6 – AMC Entertainment Holdings Inc.’s term loan rose in trading on Wednesday with news of a common stock sale but then came back down to finish the day unchanged, and BMC Software’s first-lien term loan was a little stronger as the company’s ratings were upgraded by Moody’s Investors Service.

Meanwhile, in the primary market, Tamko Building Products LLC and Restaurant Brands International Inc. approached lenders with refinancings of their term loan Bs, and WaterBridge Midstream Operating LLC came to market with an incremental term loan B.

Alsso, Syneos Health Inc., Iridium Satellite LLC, St. Joseph Energy Center and EnergySolutions joined this week’s new issue calendar.

AMC bounces around

AMC’s term loan moved around a bit as the company announced it is selling 40 million shares of class A common stock through an “at-the-market” offering program, according to a market source.

The term loan moved up to 79¼ bid, 80¼ offered early in the day on Wednesday from 78¾ bid, 79¾ offered on Tuesday, but, before noon, the term loan moved back to 78¾ bid, 79¾ offered to end the day unchanged, the source said.

The company entered into an equity distribution agreement with Citigroup Global Markets Inc., Barclays Capital Inc., B. Riley Securities Inc. and Goldman Sachs & Co. LLC as sales agents for the equity transaction.

Proceeds from the common stock sale will be used to bolster liquidity, to repay, refinance, redeem or repurchase existing debt, and for general corporate purposes.

AMC is a Leawood, Kan.-based movie exhibitor.

BMC inches up

BMC Software’s first-lien term loan was quoted at par bid, par ¼ offered on Wednesday, up from 99 7/8 bid, par 1/8 offered on Tuesday as the company’s ratings were lifted by Moody’s, a market source said.

The company’s corporate family rating was changed to B2 from B3, its senior secured first-lien credit facilities and bonds were upgraded to B1 from B2, and its second-lien credit facility and bonds were lifted to Caa1 from Caa2. The outlook was revised to stable from positive.

Moody’s attributed the upgrade to the company’s scale and stability as well as to the expectation of modest growth and deleveraging over the next several years.

BMC is a Houston-based provider of IT management software tools.

Tamko holds call

Moving to the primary market, Tamko Building Products emerged with plans to hold a lender call at 1 p.m. ET on Wednesday to launch an $821 million term loan B (B2/BB-) due 2030 talked at SOFR plus 350 basis points with a 25 bps step-down at less than 3.5x first-lien net leverage, a 0% 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 Sept. 13, the source added.

JPMorgan Chase Bank is leading the deal that will be used with cash on hand to repay the company’s existing $821 million term loan B due 2026 and to pay related fees and expenses.

Tamko is a Galena, Kan.-based roofing products manufacturer.

Restaurant Brands launches

Restaurant Brands launched with a lender call at 2 p.m. ET a $4,162,750,000 term loan B due September 2030 talked at SOFR plus 250 bps with a 0% floor, an original issue discount of 98.5 to 99 and 101 soft call protection for six months, a market source remarked.

Commitments are due at 5 p.m. ET on Sept. 13, the source added.

JPMorgan Chase Bank is leading the deal that will be used with $1 billion of other secured debt to refinance an existing $5,162,750,000 term loan B due 2026.

Restaurant Brands is a Toronto-based quick service restaurant company.

WaterBridge shops loan

WaterBridge Midstream held a lender call at 2 p.m. ET, launching a fungible $150 million incremental term loan B due June 21, 2026 with original issue discount talk of 99, a market source said.

Like the existing term loan, the incremental term loan is priced at SOFR+CSA plus 575 bps with a 1% floor. CSA is ARRC standard of 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

The term loan B debt is getting 101 soft call protection for six months.

Commitments are due at noon ET on Sept. 13, the source added.

Barclays is the left lead on the deal that will be used with cash on hand to redeem series A-1 Conoco preferred equity.

WaterBridge is a Houston-based midstream company that owns and operates extensive permanent water infrastructure systems strategically located in the Delaware and Arkoma basins.

Syneos coming soon

Syneos set a lender call for 10 a.m. ET on Thursday to launch $2.5 billion of credit facilities, according to a market source.

The facilities consist of a $500 million revolver and a $2 billion term loan B (B1/B/BB), the source said.

Goldman Sachs Bank USA, UBS Investment Bank, RBC Capital Markets LLC, BMO Capital Markets Corp., HSBC Securities (USA) Inc., Wells Fargo Securities LLC, Citigroup Global Markets Inc., Jefferies LLC, Macquarie Capital (USA) Inc., Natixis, Truist Securities Inc., Citizens Bank, MUFG, SMBC, Capital One and Societe Generale are leading the deal.

The term loan will be used with $1.7 billion of senior secured notes to help fund the buyout of the company by Elliott Investment Management, Patient Square Capital and Veritas Capital for $43 per share in cash in a transaction valued at about $7.1 billion, including outstanding debt, and to pay related fees and expenses.

Closing is expected in the second half of this year, subject to the approval of Syneos shareholders and other customary conditions, including regulatory approvals.

Syneos is a Morrisville, N.C.-based contract research organizations and contract commercial organization.

Iridium readies deal

Iridium Satellite will hold a lender call at 3 p.m. ET on Thursday to launch a $1.5 billion seven-year covenant-lite term loan B (Ba3/BB/BBB-) talked at SOFR+10 bps CSA plus 250 bps with a 0.75% floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months, a market source remarked.

Deutsche Bank Securities Inc., Wells Fargo Securities LLC, Barclays and RBC Capital Markets are leading the deal that will be used to refinance an existing term loan B due 2026 currently priced at SOFR+10 bps CSA plus 250 bps with a 0.75% floor.

Commitments from existing lenders are due at 10:30 a.m. ET on Sept. 13 and commitments from new lenders are due at noon ET on Sept. 15, the source added.

Iridium is a McLean, Va.-based provider of mobile satellite communications services.

St. Joseph joins calendar

St. Joseph Energy Center scheduled a lender meeting for Thursday to launch a $337 million first-lien term loan B due around September 2028, according to a market source.

BNP Paribas Securities Corp. is leading the deal that will be used to amend and extend an existing $337 million first-lien term loan B due 2025.

The company is also planning on extending its existing revolving credit facilities, the source added.

St. Joseph Energy Center, owned by Ares EIF Management LLC & Toyota Tsusho America Inc., is the owner of a 740.5 MW highly efficient combined cycle gas-fired power plant located in New Carlisle, Ind.

EnergySolutions on deck

EnergySolutions will hold a lender call at 11 a.m. ET on Thursday to launch a $640 million term loan B, a market source said.

RBC Capital Markets is the left lead on the deal that will be used to primarily refinance an existing roughly $546 million term loan B due 2025 priced at SOFR plus 375 bps, to partially pay down revolver borrowings and to fund the acquisition of Williams Industrial Services Group Inc.’s nuclear, fossil, energy delivery and paper mill operations for $60 million.

EnergySolutions is a Salt Lake City-based nuclear services company.

Loan indices rise

In other news, IHS Markit’s iBoxx loan indices were stronger on Tuesday, with the Leveraged Loan indexes (MiLLi) closing out the day up 0.13% and the Liquid Leveraged Loan indices (LLLi) closing out the day up 0.14%.

Month to date, the MiLLi is up 0.14% and year to date it is up 9.01%, and the LLLi is up 0.01% month to date and up 8.43% year to date.

Average secondary market bids in the U.S. on Tuesday were 92.83, up 0.14% from the previous day and up 1.04% year to date.

According to the IHS Markit data, some of the top advancers on Tuesday were McAfee/Magenta’s May 2021 second-lien covenant-lite term loan at 52, up from 44, Telesat Canada’s December 2019 covenant-lite term loan at 73.67, up from 71.1, and Exactech’s February 2018 covenant-lite term loan B at 39.67, up from 38.33.

Some top decliners on Tuesday were Jo-Ann Stores’ July 2021 covenant-lite term loan B at 35, down from 37.4, Tradesmen/Tribe Buyer’s February 2017 term loan at 54.63, down from 57, and Correct Care Solutions’ September 2018 covenant-lite term loan at 75.4, down from 77.75.

Fund flows

Actively managed loan fund flows on Tuesday were positive $24 million and loan ETFs were positive $74 million, market sources said.

Year to date, outflows for loan funds total $18.8 billion, with negative $490 million ETFs, sources added.

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