American Airlines breaks; Inspire, Ineos changes emerge; ArcLight, Aggreko, AmWINS set talk

By Sara Rosenberg

New York, Feb. 8 – American Airlines Inc. set the spread on its term loan B at the low end of guidance and tightened the issue price, and then the debt made its way into the secondary market late in the day on Wednesday.

Also, Inspire Brands Inc. (IRB Holdings Corp.) reduced pricing on its first-lien term loan, revised the original issue discount and changed the debt to be fungible with an existing term loan, and Ineos Group Holdings increased the combined total size of its U.S. and euro term loans and U.S. and euro senior secured notes offerings.

Furthermore, ArcLight GCX (AL GCX Holdings LLC), Aggreko LLC and AmWINS Group Inc. released price talk with launch.

American revised, frees

American Airlines firmed pricing on its $1 billion senior secured term loan B (Ba3/B-/B) due February 2028 at SOFR plus 275 basis points, the low end of the SOFR plus 275 bps to 300 bps, and changed the original issue discount to 98 from talk in the range of 97 to 97.5, according to a market source.

The term loan still has a 0% floor, CSA of 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate, and 101 soft call protection for six months.

Recommitments were due at 2:30 p.m. ET on Wednesday and the term loan broke for trading late in the day, with levels quoted at 98 1/8 bid, 98 5/8 offered, another source added.

Barclays, Goldman Sachs Bank USA, BofA Securities Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., JPMorgan Chase Bank, Morgan Stanley Senior Funding Inc., ICBC, SMBC, BNP Paribas Securities Corp., Credit Agricole, Standard Chartered, MUFG, HSBC Securities (USA) Inc., US Bank and Bank of Texas are leading the deal.

The loan will be used with $750 million of senior secured notes to refinance/extend an existing $1.752 billion SA SGR backed term loan B due June 2025.

American Airlines is a Fort Worth-based airline.

Inspire Brands reworked

Inspire Brands trimmed pricing on its $1.75 billion senior secured first-lien term loan (B2/B+) due Dec. 15, 2027 to SOFR+CSA plus 300 bps from SOFR+CSA plus 325 bps, modified the original issue discount to roughly 99.03 from talk in the range of 98.5 to 99, and revised the debt to be fungible with an existing term loan priced at SOFR+CSA plus 300 bps with a 0.75% floor from non-fungible at launch, a market source remarked.

Additionally, the 101 soft call protection for six months will now apply to the new term loan and the existing term loan.

As before, the new term loan has a 0.75% floor, and CSA of 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

Recommitments were due at 5 p.m. ET on Wednesday, with allocations expected on Thursday, the source added.

Barclays is the left lead on the deal that will be used with anticipated variable funding note (VFN) proceeds to refinance an existing $2.488 billion term loan B-1 due February 2025.

Inspire Brands is an Atlanta-based multi-brand restaurant company.

Ineos tweaks deal

Ineos raised its U.S. term loan B due February 2030, fungible add-on euro term loan B due November 2027, and U.S. and euro senior secured notes offering combination to a total of €2.6 billion equivalent from a total of €2 billion equivalent, a market source said.

Furthermore, price talk on the U.S. term loan was revised to SOFR+10 bps CSA plus 375 bps from initial talk of SOFR plus 375 bps to 400 bps and the original issue discount was tightened to 99 from 98.5, and the discount on the add-on euro term loan was modified to 98 from talk in the range of 97 to 97.5, the source continued.

The U.S. term loan still has a 0% floor and 101 soft call protection for one year, and the euro term loan is still priced at Euribor plus 400 bps with a 0% floor and 101 soft call protection until November 2023.

Commitments continue to be due at 10 a.m. ET on Thursday, the source added.

Ineos leads

Barclays is the active bookrunner on Ineos’ U.S. loan, and Barclays, BNP Paribas Securities Corp. and Citigroup Global Markets Inc. are joint global coordinators and active bookrunners on the euro loan. Goldman Sachs, HSBC and ING are joint global coordinators. China Construction Bank, Credit Agricole, First Abu Dhabi, Industrial and Commercial Bank of China, Mizuho, MUFG and Santander are passive bookrunners. Barclays is the administrative agent.

The new debt will be used by the London-based chemicals company to repay U.S. and euro term loan Bs due 2024 and for general corporate purposes.

The U.S. borrower is Ineos US Finance LLC, and the euro borrower is Ineos Finance plc.

ArcLight holds call

ArcLight GCX emerged in the morning with plans to hold a lender call at 1 p.m. ET on Wednesday to launch a $615 million senior secured term loan B due May 18, 2029 talked at SOFR+CSA plus 350 bps with a 0.5% floor, an original issue discount of 99.75 for new money, a par issue price for existing lenders and 101 soft call protection for six months, according to a market source.

CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

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

Barclays is the left lead on the deal that will be used to reprice an existing first-lien term loan B down from SOFR+CSA plus 375 bps with a 0.5% floor.

ArcLight GCX is a new-build 450-mile Permian natural gas pipeline.

Aggreko guidance

Aggreko came out with talk of SOFR plus 550 bps with a 0.5% floor and an original issue discount of 94 on its non-fungible $300 million incremental term loan (B1) due Aug. 17, 2026, and original issue discount talk in the range of 96.5 to 97 on its fungible €130 million add-on term loan (B1) due Aug. 17, 2026, in connection with its morning lender call, a market source said.

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

Like the existing euro term loan, the add-on euro loan is priced at Euribor plus 525 bps with a 0% floor.

Commitments for the U.S. loan are due at 5 p.m. ET on Feb. 16, and commitments for the euro loan are due at noon ET on Feb. 16.

Barclays and Goldman Sachs are the physical bookrunners on the deal and global coordinators with HSBC. GLAS USA is the administrative agent.

The new loans will be used to refinance some debt, including debt related to the acquisition of Resolute Industrial from AE Industrial Partners LP for $440 million.

Aggreko is a Glasgow, U.K.-based provider of mobile power, heating and cooling solutions. Resolute Industrial is a provider of specialized temporary heating, ventilation, air conditioning and refrigeration solutions.

AmWINS sets talk

AmWINS held its call in the afternoon, launching its non-fungible $700 million incremental term loan B (Ba3/B+) due February 2028 at talk of SOFR +10 bps CSA plus 300 bps with a 0.75% floor, an original issue discount of 98 to 98.5 and 101 soft call protection for six months, a market source remarked.

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

Goldman Sachs Bank USA is the left lead on the deal that will be used with cash on hand to fund a dividend to shareholders.

AmWINS is a Charlotte, N.C.-based specialty insurance broker.

Loan indices rise

In other news, IHS Markit’s iBoxx loan indices were stronger on Tuesday, with the Leveraged Loan indexes (MiLLi) closing out the day up 0.13% and the Liquid Leveraged Loan indices (LLLi) closing out the day up 0.11%.

Month to date, the MiLLi is up 0.58% and year to date it is up 3.18%, and the LLLi is up 0.55% month to date and up 3.19% year to date.

Average secondary market bids in the U.S. on Tuesday were 92.62, up 0.06% from the previous day and up 0.79% year to date.

According to the IHS Markit data, some of the top advancers on Tuesday were AMC Entertainment’s April 2019 covenant-lite term loan B at 68.69, up from 65.70, Envision Healthcare/Amsurg’s July 2022 first-out covenant-lite term loan at 90.13, up from 86.81, and Cision US/Castle US’ January 2020 U.S. term loan at 69.88, up from 67.66.

Some top decliners on Tuesday were Mad Engine’s June 2021 covenant-lite term loan at 78.13, down from 81.25, Instant Brands’ April 2021 covenant-lite term loan at 54, down from 55, and Avaya’s July 2022 covenant-lite term loan at 55.88, down from 56.75.

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