HomeServe, Gentiva term loans free to trade; New Fortress Energy readies deal

By Sara Rosenberg

New York, Oct. 13 – HomeServe North America lowered pricing on its term loan B and made some revisions to documentation, and Gentiva increased the size of its add-on term loan B, and then both of these deals made their way into the secondary market on Friday.

Furthermore, New Fortress Energy Inc. (NFE) joined the near-term primary calendar with plans for a new senior secured first-lien term loan B.

HomeServe revised, breaks

HomeServe trimmed pricing on its $1.05 billion seven-year term loan B (B1/BB-) to SOFR plus 300 basis points from talk in the range of SOFR plus 325 bps to 350 bps, according to a market source.

In addition, the MFN was changed to 50 bps with a 12-month sunset from 100 bps with a six-month sunset, the MFN carve-out for permitted acquisitions or other permitted investments was removed, the re-allocation between general restricted payments and general RDP baskets was removed, and inter-company investments in non-guarantors was revised to 100% LTM EBITDA from unlimited, the source said.

As before, the term loan has a 0% floor, an original issue discount of 99 and 101 soft call protection for six months.

Recommitments were due at 11 a.m. ET on Friday and the term loan B began trading in the afternoon, with levels quoted at 99½ bid, par offered shortly after the break, another source added.

Deutsche Bank Securities Inc., MUFG, RBC Capital Markets, ING, BofA Securities Inc. and Brookfield Capital Solutions are leading the deal that will be used to refinance the company’s existing capital structure.

HomeServe is a Norwalk, Conn.-based provider of service plans, repair and energy efficiency services.

Gentiva upsized, frees

Gentiva lifted its fungible add-on term loan B due February 2028 to $570 million from $500 million, a market source remarked.

The add-on term loan is priced at SOFR plus 525 bps with a 0.5% floor, in line with the existing term loan, and the new debt is being sold at an original issue discount of 98.

Earlier in syndication, the discount on the add-on loan was changed from talk in the range of 97 to 97.5.

The add-on term loan freed to trade in the afternoon, with levels quoted at 99 bid, 99¾ offered, another source added.

Goldman Sachs Bank USA, Deutsche Bank Securities Inc., UBS Investment Bank, BNP Paribas Securities Corp., Citizens Bank, Truist Securities, Wells Fargo Securities LLC, Mizuho and Natixis are leading the deal that will be used to fund the acquisition of Heartland hospice and home care agencies/locations from ProMedica, and, as a result of the upsizing, to pay down an outstanding revolver draw in full.

Closing is expected in late October/early November.

Gentiva, owned by CD&R, is a provider of hospice, palliative, and personal care services.

New Fortress on deck

New Fortress Energy set a lender call for 2 p.m. ET on Monday to launch an $835 million senior secured first-lien term loan B, according to a market source.

Morgan Stanley Senior Funding Inc., MUFG, Natixis, Citigroup Global Markets Inc., HSBC Securities (USA) Inc., JPMorgan Chase Bank, Santander, Wells Fargo Securities LLC and Deutsche Bank Securities Inc. are leading the deal that will be used to repay an existing $400 million 364-day bridge loan and for general corporate purposes, including planned capital expenditures.

New Fortress Energy is a New York-based energy infrastructure company.

Loan indices rise

In other news, IHS Markit’s iBoxx loan indices were stronger on Thursday, with the Leveraged Loan indexes (MiLLi) closing out the day up 0.09% and the Liquid Leveraged Loan indices (LLLi) closing out the day up 0.09%.

Month to date, the MiLLi is up 0.07% and year to date it is up 9.9%, and the LLLi is up 0.09% month to date and up 9.16% year to date.

Average secondary market bids in the U.S. on Thursday were 92.99, up 0.02% from the previous day and up 1.22% year to date.

According to the IHS Markit data, some of the top advancers on Thursday were Sound Physicians’ June 2018 term loan at 28.4, up from 27.5, Allen Media’s August 2021 covenant-lite term loan at 88.17, up from 86.17, and ScionHealth’s December 2021 covenant-lite term loan B at 23, up from 22.67.

Some top decliners on Thursday were EyeCare Partners’ August 2022 incremental term loan at 69.5, down from 71.17, U.S. Renal Care’s July 2023 term loan at 61.33, down from 62.5, and Revlon’s May 2023 new money exit term loan at 96.88, down from 98.13.

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