Chobani, Marlink, HighTower break; Innio Group, A-Gas updated; R1 RCM accelerated

By Sara Rosenberg

New York, Dec. 12 – Chobani LLC lowered the spread on its incremental term loan B and tightened the original issue discount, and then the debt made its way into the secondary market on Tuesday, with levels quoted above the revised issue price.

Also, Marlink Group (Venga Finance) increased the size of its incremental first-lien term loan B and finalized the original issue discount at the tight end of talk before breaking for trading, and HighTower Holding LLC’s add-on term loan B freed to trade as well.

In more happenings, Innio Group firmed sizes of its U.S. and euro term loans, set spreads at the low end of guidance and tightened the original issue discount talk on both tranches, and A-Gas FinCo Inc. widened pricing on its term loan B and modified the issue price.

Furthermore, R1 RCM Inc. moved up the commitment deadline for its incremental first-lien term loan B, and ArcLight NGPL Holdings LLC (AL NGPL Holdings LLC) came to market with a new term loan B.

Chobani flexes, frees

Chobani trimmed pricing on its non-fungible $550 million incremental term loan B (B1/B-) due Oct. 23, 2027 to SOFR plus 375 basis points from talk in the range of SOFR plus 400 bps to 425 bps, and changed the original issue discount talk to a range of 99.25 to 99.5 from 98.5 before finalizing at 99.5 after the noon ET commitment deadline passed on Tuesday, according to market sources.

The term loan still has a 0% floor, 101 soft call protection for six months, and a ticking fee of half the margin from days 46 to 90 and the full margin thereafter.

During the session, the term loan broke for trading with levels quoted at 99 5/8 bid, par 1/8 offered, another source added.

BofA Securities Inc., Goldman Sachs Bank USA, JPMorgan Chase Bank and TD Securities (USA) LLC are leading the deal that is intended to be used to finance an acquisition. However, if the acquisition does not close, the proceeds will be used to repay senior notes due 2025 at par plus all associated fees and expenses.

Chobani is a New York food and beverage company known for Greek Yogurt.

Marlink revised, trades

Marlink Group raised its fungible incremental first-lien term loan B due June 29, 2029 to $80 million from $50 million and firmed the original issue discount at 98, the tight end of the 97.75 to 98 talk, a market source remarked.

Pricing on the incremental term loan is SOFR+CSA plus 475 bps with a 0.75% floor, in line with existing term loan pricing. 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 freed to trade during the day, with levels quoted at 98˝ bid, 99˝ offered, another source added.

BofA Securities Inc. and KKR Capital Markets are leading the deal that will be used to repay revolver borrowings, for general corporate purposes and to pay transaction fees and expenses.

Marlink is a provider of end-to-end managed smart network and IT services solutions to maritime, enterprise and government customers in remote places.

HighTower breaks

HighTower Holding’s fungible $150 million add-on term loan B (B2) due April 2028 began trading too, with levels quoted at 99 3/8 bid, 99 7/8 offered, a market source said.

Pricing on the add-on term loan is SOFR+CSA plus 400 bps with a 0.75% floor and it was sold at an original issue discount of 99.03. 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 debt has 101 soft call protection for six months.

JPMorgan Chase Bank is leading the deal that will be used to repay some revolver borrowings and for general corporate purposes, including acquisition activity.

HighTower is a Chicago-based registered investment adviser that owns and provides a suite of mission critical services to independent advisory practices.

Innio updated

Innio Group set the size of its U.S. covenant-lite term loan due November 2028 at $600 million and the size of its euro covenant-lite term loan due November 2028 at €1.1 billion, according to a market source. At launch, the total term loan amount being raised was described as €1.664 billion U.S. and euro equivalent, with a minimum $500 million U.S. piece and a minimum €900 euro piece.

Also, pricing on the term loans finalized at SOFR/Euribor plus 425 bps, the low end of the SOFR/Euribor plus 425 bps to 450 bps talk, and the original issue discount talk on both term loans (B2/B+/B+) was revised to a range of 99 to 99.5 from 98.5, the source said.

Both term loans still have a 0% floor and 101 soft call protection for six months.

Recommitments were due at 11 a.m. ET on Tuesday, and pricing and allocations are expected on Wednesday morning ET, the source added.

Innio use of proceeds

Innio will use the new term loans with balance sheet cash to amend and extend an existing $381 million term loan B due November 2025 and an existing €1.302 billion term loan B due November 2025, to fund the $40 million acquisition of Northeast-Western Energy Systems (NES-WES) from Penn Power Group and to pay a shareholder distribution.

Citigroup Global Markets Inc. is the left lead bookrunner on the U.S. loan, and BNP Paribas, Citigroup, Deutsche Bank Securities Inc. and Unicredit are joint physical bookrunners on the euro loan. BNP Paribas, Citigroup, Deutsche Bank, Morgan Stanley and Unicredit are global coordinators on the amend and extend. BofA Securities Inc., Credit Agricole, Erste and Helaba are passive bookrunners. Wilmington Trust is the agent.

Closing on the acquisition is expected this quarter.

Innio, owned by Advent and Luxinva, is a Jenbach, Austria-based energy solution and service provider in the power generation and compression segments. NES-WES is a power systems integrator in the United States.

A-Gas reworked

A-Gas raised pricing on its $520 million six-year senior secured covenant-lite term loan B (B2/B) to SOFR plus 525 bps from SOFR plus 500 bps, and changed the original issue discount to 87 from revised talk in the range of 85 to 86 and initial talk in the range of 96 to 97, according to a market source.

As before, the term loan has a 25 bps pricing step-down upon an initial public offering, a 0.5% floor and 101 soft call protection for one year.

Previously in syndication, the company removed 25 bps pricing step-downs at 0.5x and 1x inside opening senior secured net leverage, the floor was increased from 0%, the call protection was extended from six months, the maturity was shortened from seven years, changes were made to documentation, including to debt, fixed incremental, MFN and EBITDA, and lender calls became required every quarter in connection with delivery of quarterly and annual financials.

Allocations are expected on Wednesday morning, the source added.

A-Gas lead banks

Citigroup Global Markets Inc., HSBC Securities (USA) Inc., Guggenheim and Truist Securities are leading A-Gas’ term loan. Truist is the administrative agent.

The new debt will be used to help fund the acquisition of a majority stake in the company by TPG from KKR. KKR will remain a significant minority shareholder in the business.

Closing is expected by the end of the year, subject to customary conditions, including certain regulatory approvals.

A-Gas is a U.K.-based supplier and lifecycle manager of refrigerant and industrial gases, fire suppressants and blowing agents.

R1 RCM tweaks timing

R1 RCM accelerated the commitment deadline for its non-fungible $500 million incremental senior secured first-lien term loan B (Ba3/B+/BBB-) due June 2029 to 11 a.m. ET on Wednesday from 5 p.m. ET on Thursday, a market source said.

Talk on the term loan is SOFR plus 325 bps to 350 bps with a 0% floor, an original issue discount of 98.5, 101 soft call protection for six months, and a ticking fee of half the margin from days 46 to 90 and the full margin thereafter.

JPMorgan Chase Bank, BofA Securities Inc. and Barclays provided the debt commitment. BofA Securities is the administrative agent.

Proceeds will be used with borrowings under the company’s existing revolver and cash on hand to fund the acquisition of Acclara, a provider of revenue cycle management solutions to the health care industry, from Providence for $675 million in cash and warrants to purchase 12.2 million shares of R1 RCM stock.

Closing is expected in early 2024, subject to customary conditions, including regulatory approvals.

R1 RCM is a Murray, Utah-based provider of technology-driven solutions that transform the patient experience and financial performance of health care providers.

ArcLight NGPL launches

ArcLight NGPL launched in the morning without a lender call a roughly $268 million term loan B due April 15, 2028 that will reprice an existing roughly $233 million term loan B, fund a distribution to ArcLight and pay transaction costs, a market source remarked.

The new term loan will be fungible with the company’s existing $461 million term loan due April 15, 2028, is priced at SOFR plus 350 bps with a 1% floor and no CSA, and has 101 soft call protection until March 2024.

The term loan is talked with a par issue price for the repricing and with an original issue discount of 99.75 to par for the new money, the source added.

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

Barclays is leading the deal.

The repricing will take the existing roughly $233 million term loan down from SOFR+CSA plus 375 bps with a 1% floor. The existing CSA is ARRC standard of 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

NGPL is a FERC-regulated natural gas pipeline system.

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