Shearer’s, WestJet, Banijay, Ineos, Waupaca, Envu, UKG, Magnite break; Wood, Husky revised

By Sara Rosenberg

New York, Jan. 31 – Shearer’s Foods (Fiesta Purchaser Inc.) trimmed pricing on its term loan B, removed step-downs, tightened the original issue discount and made some changes to documentation, and WestJet Loyalty LP increased the size of its term loan B and set the margin and issue price at the tight end of talk, and then these deals freed to trade on Wednesday.

Also, before breaking for trading, Banijay set the issue price on its U.S. term loan B at the tight end talk and the spread on its euro term loan B at the low end of revised guidance, Ineos Group Holdings firmed sizes of its U.S. and euro term loans, and Waupaca Foundry Inc. set the original issue discount on its term loan B at the tight end of revised talk.

Additionally, Envu (Discovery Purchaser Corp.) finalized the issue price on its add-on first-lien term loan at the tight end of talk and then hit the secondary market, and deals from UKG Inc. and Magnite Inc. began trading as well.

Furthermore, Wood Mackenzie (Planet US Buyer LLC) changed the spread and issue price on its term loan B, Husky Injection Molding Systems Ltd. upsized its term loan B, lowered pricing, modified the original issue discount and made some revisions to documentation, and Argus Media cut the margin on its term loan B and set the issue price at the tight end of guidance.

Lastly, Gray Television Inc. and Sharp Services LLC released price talk with launch, and Vestis Corp. and Ensono joined this week’s primary calendar.

Shearer’s revised

Shearer’s Foods cut pricing on its $1.22 billion seven-year covenant-lite term loan B (B3/B) to SOFR plus 400 basis points from talk in the range of SOFR plus 425 bps to 450 bps, removed 25 bps step-downs at 5x and 4.5x first-lien leverage so that there are no longer any step-downs, and adjusted the original issue discount to 99 from 98, according to a market source.

Also, J Crew, Chewy and Serta protection provisions were added, the earlier maturity date debt basket was changed to the greater of $315 million/100% of EBITDA from the greater of $630 million/200% of EBITDA, and quarterly management discussion and analysis was added, the source said.

As before, the term loan has a 0% floor and 101 soft call protection for six months.

Shearer’s starts trading

Commitments for Shearer’s Foods’ term loan B were due at 1 p.m. ET on Wednesday, accelerated from 5 p.m. ET on Wednesday, and the debt broke in the afternoon, with levels quoted at 99 3/8 bid, 99 7/8 offered, another source added.

Deutsche Bank Securities Inc., UBS Investment Bank, Blue Owl, BMO Capital Markets Corp., BNP Paribas Securities Corp., RBC Capital Markets LLC, TD Securities (USA) LLC, Goldman Sachs Bank USA, Rabobank, Citizens, Macquarie Capital (USA) Inc., Mizuho, Natixis and Stifel are leading the deal.

The term loan will be used with $500 million of senior secured notes to help fund the buyout of the company by Clayton Dubilier & Rice from Ontario Teachers’ Pension Plan Board.

Shearer’s Foods is a Massillon, Ohio-based contract manufacturer and private label supplier serving the snack industry.

WestJet reworked, frees

WestJet raised its seven-year senior secured term loan B to $1.5 billion from $1 billion as plans for a $500 million senior secured notes offering were cancelled, firmed pricing at SOFR plus 375 bps, the low end of the SOFR plus 375 bps to 400 bps talk, and set the original issue discount at 99, the tight end of the 98 to 99 talk, a market source remarked.

The term loan still has a 0% floor and 101 soft call protection for six months.

Recommitments were due at 2 p.m. ET on Wednesday, accelerated from an original deadline of noon ET on Thursday, and the term loan broke later in the day, with levels quoted at 99 1/8 bid, 99 5/8 offered, another source added.

Barclays is the left lead on the deal that will be used to partially repay the company’s existing term loan B due 2026 and for transaction related fees and expenses.

WestJet is a Calgary, Alta.-based airline company.

Banijay updated

Banijay finalized the issue price on its $555.8 million covenant-lite term loan B due March 2028 at par, the tight end of the 99.75 to par talk, and firmed pricing on its €555 million covenant-lite term loan B due March 2028 at Euribor plus 375 bps, the low end of revised talk of Euribor plus 375 bps to 400 bps and down from initial talk of Euribor plus 400 bps, a market source said.

As before, the U.S. term loan is priced at SOFR plus 325 bps with a 0% floor, the euro term loan has a 0% floor and a par issue price, and both loans (B1/B+/BB-) have 101 soft call protection for six months.

Previously in syndication, the issue price on the euro loan was set at the tight end of the 99.75 to par talk.

Banijay Group US Holding Inc. is the U.S. borrower and Banijay Entertainment SAS is the euro borrower.

Banijay hits secondary

Banijay’s U.S. term loan broke for trading in the morning, with levels quoted at par bid, par 3/8 offered, another source added.

BNP Paribas Securities Corp. is the left lead/sole physical bookrunner on the deal. Credit Agricole, Deutsche Bank Securities Inc., Goldman Sachs, Natixis and Societe Generale are passive bookrunners. U.S. Bank is the agent.

The loans will be used to reprice an existing U.S. term loan due March 2028 down from SOFR plus 375 bps and an existing euro term loan due March 2028 down from Euribor plus 450 bps.

Banijay is a Paris-based independent content production company.

Ineos sizes set

Ineos finalized the size of its U.S. seven-year term loan B at $500 million, compared to previous talk of minimum $500 million, and the size of its euro seven-year term loan B at €425 million, compared to revised talk of minimum €400 million and initial talk of minimum €300 million, a market source remarked.

Pricing on the U.S. term loan is SOFR plus 375 bps and pricing on the euro term loan is Euribor plus 400 bps. Both term loans have a 0% floor, an original issue discount of 99 and 101 soft call protection for six months.

Earlier in syndication, pricing on the U.S. loan was set at the low end of the SOFR plus 375 bps to 400 bps talk, and pricing on the euro term loan firmed at the low end of the Euribor plus 400 bps to 425 bps talk.

The company is also getting $725 million of senior secured notes and €850 million of senior secured notes.

Initially, the company was planning on raising €2 billion equivalent across the term loans and the notes, but that was recently upsized to minimum €2.1 billion equivalent and then finalized on Wednesday at €2.4 billion equivalent.

Ineos breaks

Ineos’ U.S. term loan freed to trade during the session, with levels quoted at 99 1/8 bid, 99½ offered, another source added.

Barclays is the physical bookrunner on the U.S. term loan and a joint global coordinator. Barclays, Deutsche Bank and Santander are joint physical bookrunners on the euro term loan and joint global coordinators. Credit Agricole, Goldman Sachs and JPMorgan Chase Bank are joint global coordinators. ABN Amro, Commerzbank, ING, Intesa, KBC, Lloyds and NatWest are mandated lead arrangers. Barclays is the agent.

The new debt will be used to refinance part of the company’s 2025 and 2026 maturities, for acquisition financing and to add cash to the balance sheet to prefund Project One, and, due to the upsizing, to tender for additional bonds.

Ineos US Finance LLC is the borrower on the U.S. term loan, and Ineos Finance plc is the borrower on the euro term loan.

Ineos is a chemical company.

Waupaca finalized, trades

Waupaca Foundry firmed the original issue discount on its $360 million six-year covenant-lite term loan B (B2/B) at 99, the tight end of revised talk of 98.5 to 99 and tighter than initial talk of 98, a market source said.

Pricing on the term loan is SOFR plus 600 bps with a 1% floor, and the debt has soft call protection of 102 in year one and 101 in year two.

Previously in syndication, the term loan was upsized from $330 million and pricing was lowered from talk in the range of SOFR plus 625 bps to 650 bps.

During the session, the term loan B made its way into the secondary market, with levels quoted at 99¾ bid, par ¾ offered, a trader added.

BMO Capital Markets, PNC Capital, KeyBanc Capital Markets and Silver Point are leading the deal that will be used to help fund the buyout of the company by Monomoy Capital Partners from Proterial Ltd.

Closing is expected early this year, subject to customary conditions.

Waupaca Foundry is a Waupaca, Wis.-based supplier of cast and machined iron castings.

Envu OID firmed, frees

Envu set the original issue discount on its fungible $100 million add-on covenant-lite first-lien term loan due October 2029 (B3/B-) at 98.5, the tight end of the 98 to 98.5 talk, according to a market source.

Pricing on the add-on term loan is SOFR plus 437.5 bps with a 0.5% floor.

In the morning, the add-on term loan broke for trading, with levels quoted at 98¾ bid, 99¼ offered, a trader added.

BMO Capital Markets, HSBC Securities (USA) Inc. and ING are leading the deal that will be used to repay revolver borrowings and for general corporate purposes.

Cinven is the sponsor.

Envu, previously known as Bayer Environmental, is a Cary, N.C.-based provider of environmental products and solutions.

UKG breaks

UKG’s $5.385 billion seven-year covenant-lite first-lien term loan B broke as well, with levels quoted at par 1/8 bid, par 3/8 offered, a trader remarked.

Pricing on the term loan is SOFR plus 350 bps with a 0% floor and it was sold at an original issue discount of 99.875. The debt has 101 soft call protection for six months.

During syndication, the term loan was upsized from $4.885 billion, pricing was set at the low end of the SOFR plus 350 bps to 375 bps talk and the discount was revised from 99.5.

The company’s $6.33 billion of credit facilities (B2/B-/BB) also include a $945 million five-year revolver.

UKG lead banks

Nomura, JPMorgan Chase Bank, BNP Paribas Securities Corp., Citigroup Global Markets Inc., Goldman Sachs Bank USA, BofA Securities Inc., UBS Investment Bank, RBC Capital Markets, Wells Fargo Securities LLC, Deutsche Bank Securities Inc., Jefferies LLC, SMBC, Macquarie Capital (USA) Inc., TD Securities (USA) LLC, Truist Securities and Blackstone are leading UKG’s credit facilities.

Proceeds will be used with $2.5 billion of senior secured notes to refinance existing first-lien term loans, pay down a revolver draw, fund cash to the balance sheet, and pay fees and expenses, and, due to the recent term loan upsizing, to partially refinance an existing $1.45 billion second-lien term loan.

Closing is expected on Feb. 9.

UKG, based in Weston, Fla., and Lowell, Mass., is a provider of human capital management solutions.

Magnite starts trading

Magnite’s $365 million senior secured covenant-lite first-lien term loan B (Ba3/BB-) due February 2031 also freed to trade, with levels quoted at 99¼ bid, 99¾ offered, according to a trader.

Pricing on the term loan is SOFR plus 450 bps with a 0% floor and it was sold at an original issue discount of 99. The loan has 101 soft call protection for six months.

Morgan Stanley Senior Funding Inc., Citigroup Global Markets Inc., Barclays, Capital One, Goldman Sachs Bank USA, MUFG, SVB and Truist Securities are leading the deal that will be used to refinance an existing $351 million term loan B and to pay transaction related fees and expenses.

In addition, the company plans to get a new upsized five-year senior secured revolving credit facility to refinance its existing $65 million revolver.

Closing is expected on Feb. 6.

Magnite is a New York-based sellside advertising company.

Wood Mackenzie flexed

Wood Mackenzie reduced pricing on its $1.315 billion seven-year term loan B (B2/B+) to SOFR plus 350 bps from talk in the range of SOFR plus 375 bps to 400 bps, added a 25 bps step-down at 3.85x first-lien net leverage and modified the original issue discount to 99.75 from 99, a market source said.

The term loan still has a 0% floor and 101 soft call protection for six months.

Recommitments were due at 2:30 p.m. ET on Wednesday, with allocations expected later in the day, the source added.

BofA Securities Inc., Barclays, BMO Capital Markets, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., JPMorgan Chase Bank and Nomura are leading the deal that will be used to refinance an existing $1.244 billion unitranche term loan.

Wood Mackenzie is an Edinburgh, U.K.-based provider of data, analytics, research and consulting services for the energy, renewables and natural resources sectors.

Husky modified

Husky Injection Molding Systems increased its five-year covenant-lite term loan B (B3/B-) to $1.75 billion from an original size of $1.3 billion, cut pricing to SOFR plus 500 bps from SOFR plus 525 bps and changed the original issue discount to 98.5 from 98, according to a market source.

Also, a ticking fee was added of half the spread for days 46 to 90, and the transaction must close within 90 days, the source said.

In addition, revisions were made to J. Crew and portability, the agreement was revised to prohibit any restricted subsidiary from being designated as unrestricted if it owns or exclusively licenses any material IP, and covenants were adjusted upward 0.25x for increase in closing leverage except for unlimited restricted payments, which will remain unchanged.

As before, the term loan has a 0% floor and 101 soft call protection for six months.

Husky shuts books

Recommitments for Husky’s term loans were due at 4:30 p.m. ET on Wednesday and allocations are expected on Thursday morning, the source added.

Deutsche Bank Securities Inc., BofA Securities Inc. and others to be announced are leading the deal that will be used with $1 billion of secured notes, downsized from $1.3 billion, and new preferred equity, downsized by $150 million, to refinance the company’s existing capital structure, including senior notes due 2026, senior PIK notes due 2025 and credit facilities borrowings, and to pay respective fees and expenses.

Husky is a Bolton, Ont.-based provider of engineered tooling, services and systems primarily to the food and beverage packaging and medical end markets.

Argus tweaked

Argus Media lowered pricing on its $1.2 billion seven-year term loan B (B2/B+) to SOFR plus 325 bps from SOFR plus 375 bps and finalized the original issue discount at 99.5, the tight end of the 99 to 99.5 talk, a market source remarked.

The term loan still has a 0% floor and 101 soft call protection for six months.

Recommitments were due at 5 p.m. ET on Wednesday and allocations are expected on Thursday.

JPMorgan Chase Bank, Citigroup Global Markets Inc., ING and SMBC are leading the deal that will be used to refinance an existing $479 million term loan B due 2026 and to return capital to certain shareholders.

Recently, the company announced that Adrian Binks, chairman and chief executive of Argus, along with General Atlantic, an existing Argus minority shareholder, will each consolidate their stakes in Argus, with General Atlantic and Argus itself acquiring shares from current minority shareholder, Hg.

Adrian Binks will become the majority owner of the company and General Atlantic will own a large minority of the company, with Argus management also remaining as shareholders.

Argus is a London-based provider of intelligence to the global energy and commodity markets.

Gray guidance

Gray Television held its lender call on Wednesday morning and announced talk on its $1.19 billion covenant-lite first-lien term loan F (Ba3/BB) due July 1, 2029 at SOFR plus 375 bps to 400 bps with a 0% floor and an original issue discount of 99, according to a market source.

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

Commitments are due at noon ET on Feb. 9.

Wells Fargo Securities LLC is the left lead on the deal that will be used with a modest revolver draw to fully refinance the company’s existing term loan E due Jan. 2, 2026.

The company plans to amend its $500 million revolver to extend the maturity to December 2027 from January 2026

Gray Television is an Atlanta-based broadcast company.

Sharp holds call

Sharp Services LLC held a lender call at noon ET, launching a fungible $150 million add-on first-lien term loan (B3) due December 2028 with original issue discount talk of 99.03, a market source said.

Pricing on the add-on term loan is SOFR+10 bps CSA plus 400 bps with a 0.5% floor.

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

JPMorgan Chase Bank and RBC Capital Markets are co-leads on the deal that will be used with cash on hand to refinance an existing $157.5 million privately placed second-lien term loan.

Sharp Services is a provider of pharmaceutical packaging and clinical services.

Vestis on deck

Vestis set a lender call for 11 a.m. ET on Thursday to launch an $800 million seven-year covenant-lite term loan B (Ba2/BB+) talked at SOFR plus 225 bps to 250 bps with a 0% floor, an original issue discount of 99.5 and 101 soft call protection for six months, according to a market source.

Commitments are due at noon ET on Feb. 15, the source added.

Wells Fargo Securities LLC is the left lead on the deal that will be used to refinance an existing $800 million term loan A-2 due 2025.

Vestis is a Roswell, Ga.-based provider of uniform rentals and workplace supplies.

Ensono joins calendar

Ensono scheduled a lender call for 2 p.m. ET on Thursday to launch a fungible $100 million add-on term loan, a market source remarked.

KKR Capital Markets is leading the deal that will be used for general corporate purposes.

Pricing on the existing term loan is SOFR+CSA plus 400 bps with a step-down to SOFR plus 375 bps and a 0.75% 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.

Ensono is a Downers Grove, Ill.-based technology adviser, innovation partner and managed service provider.

Fund flows

In other news, actively managed loan fund flows on Tuesday were positive $7 million and loan ETFs were negative $4 million, market sources said.

Actively managed high-yield fund flows on Tuesday were positive $123 million and high-yield ETFs were positive $378 million, sources added.

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