Six Flags better bid with Cedar Fair news; Hilton, Amneal Pharmaceuticals changes surface

By Sara Rosenberg

New York, Nov. 2 – Six Flags Entertainment Corp.’s term loan was bid higher in the secondary market on Thursday after the company announced plans to merge with Cedar Fair and refinance the loan debt.

Meanwhile, in the primary market, Hilton Worldwide Finance LLC increased the size of its seven-year term loan B and tightened the original issue discount on the tranche.

Also, Amneal Pharmaceuticals widened the spread and original issue discount on its term loan B, sweetened the call protection and made changes to documentation, and Greenway Health LLC released price talk on its term loan transaction in connection with its lender call.

Six Flags bid up

Six Flags’ term loan was quoted at 99 7/8 bid, par 1/8 offered on Thursday, up on the bid side from 99 5/8 bid, par 1/8 offered on Wednesday, as the company announced a merger agreement with Cedar Fair, a market source said.

Six Flags expects to refinance the term loan ahead of the merger close, and both companies expect to refinance their revolvers, according to an 8-K filed with the Securities and Exchange Commission

To support the transaction, Cedar Fair/Six Flags received a commitment from Goldman Sachs Bank US for a $2.3 billion 364-day term loan and $800 million of revolving credit commitments

Under the agreement, Cedar Fair unitholders will receive one share of common stock in the new combined company for each unit owned, and Six Flags shareholders will receive 0.58 shares of common stock in the new combined company for each share owned.

Closing is expected in the first half of 2024, subject to Six Flags shareholder approval, regulatory approvals and other customary conditions.

Sandusky, Ohio-based Cedar Fair and Arlington, Tex.-based Six Flags are amusement park operators. Upon closing, the combined company will operate under the name Six Flags and be based in Charlotte, N.C.

Hilton reworked

Moving to the primary market, Hilton Worldwide raised its seven-year covenant-lite term loan B to $2.119 billion from $1.619 billion and tightened the original issue discount to 99.75 from 99.5, according to a market source.

As before, the seven-year term loan is priced at SOFR+10 basis points CSA plus 200 bps with a 0% floor, the company is getting a $1 billion covenant-lite amended and extended term loan B due June 2028 priced at SOFR+10 bps CSA plus 175 bps with a 0% floor and an original issue discount of 99.5, and both term loans have 101 soft call protection for six months.

Ratings on the now $3.119 billion of term loans are expected to remain at Baa2/BBB-.

Recommitments were due at 4:30 p.m. ET on Thursday, the source added.

Deutsche Bank Securities Inc. is the left lead on the deal that will be used to refinance an existing term loan B through a partial two-year extension with the 2028 term loan and the new seven-year term loan, and the funds from the upsizing will be used for general corporate purposes, including to add cash to the balance sheet.

Hilton is a McLean, Va.-based hospitality company.

Amneal modified

Amneal Pharmaceuticals lifted pricing on its up to $2.544 billion amended and term loan B (B2/B) due 2028 to SOFR plus 550 bps from SOFR plus 525 bps, adjusted the original issue discount to 95 from 96, and revised the call protection to a hard call of 103 in year one, 102 in year two and 101 in year three, from a 102 hard call in year one and a 101 soft call in year two, a market source remarked.

Also, amortization on the term loan was raised to 2.5% per annum, changes were made to documentation, and the collateral package was reworked.

The term loan still has a 0.5% floor.

Recommitments are due at 11 a.m. ET on Friday, the source added.

JPMorgan Chase Bank is leading the deal that will be used to amend and extend all or a portion of an existing $2.544 billion term loan due May 2025 that is priced at SOFR+CSA plus 350 bps. CSA is ARRC standard of 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

Amneal is a Bridgewater, N.J.-based generic pharmaceutical manufacturer.

Greenway guidance

Greenway Health held its lender call at 10:30 a.m. ET on Thursday and, shortly before the event began, price talk on the company’s $375 million 5.25-year first-lien term loan (B3/B-) emerged at SOFR plus 575 bps to 600 bps with a 0% floor and an original issue discount of 97, according to a market source.

The term loan has 101 soft call protection for one year.

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

Jefferies LLC is the left lead on the deal that will be used to refinance existing debt.

Greenway Health is a Tampa, Fla.-based provider of software solutions to office-based physician practices and community health centers.

Fund flows

In other news, actively managed loan fund flows on Wednesday were negative $5 million and loan ETFs were positive $30 million, sources said.

Actively managed high-yield fund flows on Wednesday were negative $5 million and high-yield ETFs were positive $910 million, sources added.

Loan indices lower

S&P Global’s iBoxx loan indices were weaker on Wednesday, with the Leveraged Loan index (MiLLi) closing down 0.06% and the Liquid Leveraged Loan index (LLLi) closing down 0.16%.

Month to date, the MiLLi is down 0.06% and year to date it is up 9.71%, and the LLLi is down 0.16% month to date and up 8.65% year to date.

Average secondary market bids in the United States on Wednesday were 92.88, down 0.01% from the previous day and up 1.1% year to date.

According to the S&P Global data, some of the top advancers on Wednesday were Dawn Acquisition’s (AT&T Colocation) December 2018 covenant-lite term loan at 88.08, up from 84.16, Endo Pharmaceuticals’ March 2021 covenant-lite RSA term loan B at 68.33, up from 67.13, and Cyxtera’s May 2017 covenant-lite term loan at 57.79, up from 57.09.

Some top decliners on Wednesday were CenturyLink/Lumen’s January 2020 covenant-lite term loan B at 68.45, down from 75.05, Level 3’s November 2019 non-TSA covenant-lite term loan B at 86.7, down from 93.19, and EyeCare Partners’ August 2022 incremental term loan at 54.13, down from 57.5.

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