MyEyeDr. gains with upgrade; APi remains above par post-paydown news; Clean Harbors updated

By Sara Rosenberg

New York, Dec. 19 – MyEyeDr. (MED ParentCo. LP) saw its first-lien term loan rise in the secondary market on Tuesday after the company’s ratings were upgraded by S&P Global Ratings, and APi Group’s term loans held steady following news that the company repaid a portion of its shorter-dated term loan tranche.

Meanwhile, in the primary market, Clean Harbors Inc. finalized the issue price on its term loan B at the tight end of guidance.

MyEyeDr. strengthens

MyEyeDr.’s first-lien term loan moved up to 98¼ bid, 99 offered on Tuesday from 97¾ bid, 98½ offered on Monday as the company’s issuer credit rating and first-lien credit facilities ratings were lifted to B- from CCC+, a trader said.

The upgrade reflects the company’s improved operating performance and progress on integrating past acquisitions, the rating release explained.

S&P expects the company will sustain S&P Global Ratings-adjusted EBITDA margin above 18% while growing revenues in the mid-single-digit percent range over the next 12 to 24 months, leading to the anticipation that S&P Global Ratings-adjusted leverage will sustain below 8x compared to 12.2x at the end of 2022.

The stable outlook reflects the expectation that operating results and cash flow generation will continue improving, the rating release added.

MyEyeDr. is a provider of eye health services.

APi holds steady

APi Group’s term loans were unchanged in trading after the company announced that it recently paid down an additional $175 million on its term loan due 2026, leaving $330 million outstanding, according to a market source.

The 2026 term loan was quoted at par 1/8 bid, par 5/8 offered, and the company’s 2029 term loan was quoted at par 1/8 bid, par ½ offered, both in line with Monday’s levels, the source said.

As a result of debt paydowns over the year, the company expects to end 2023 below its targeted net leverage ratio of 2.5x.

APi is a New Brighton, Minn.-based business services provider of life safety, security and specialty services.

Clean Harbors sets price

Moving to the primary market, Clean Harbors firmed the issue price on its $983 million term loan B (BBB-) due October 2028 at par, the tight end of the 99.75 to par talk, a market source remarked.

As before, the term loan is priced at SOFR+CSA plus 175 basis points with a 0% floor, and has 101 soft call protection for six months. CSA is ARRC standard of 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

Allocations are expected on Wednesday, the source added.

Goldman Sachs Bank USA is the left lead on the deal that will be used to reprice an existing $983 million term loan B due October 2028 down from SOFR+ARRC CSA plus 200 bps.

Clean Harbors is a Norwell, Mass.-based provider of environmental and industrial services.

Fund flows

In other news, actively managed loan fund flows on Monday were negative $393 million and loan ETFs were positive $117 million, sources said.

Monday’s sizeable outflows for actively managed loan funds were concentrated, sources added.

Outflows for loan funds week-to-date total an estimated $242 million, compared to inflows in the prior week of $83 million.

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