Intertape loan partially rebounds; Belfor updated; ITP Aero sets talk on term loan

By Sara Rosenberg

New York, Oct. 24 – Intertape Polymer Group Inc. (Iris Holdings Inc.) saw its term loan move higher in the secondary market on Tuesday, recouping some of the losses it experienced in the prior session following a ratings downgrade by S&P Global Ratings.

Meanwhile, in the primary market, Belfor set the spread on its U.S. term loan B at the low end of talk, firmed pricing on its euro term loan B at the high end of guidance and widened the original issue discount on the euro tranche, and ITP Aero (Propulsion (BC) Newco LLC) released original issue discount talk on its add-on term loan B.

Also, Ryan LLC joined this week’s new issue calendar with a new funded and delayed-draw first-lien term loan transaction, Amneal Pharmaceuticals emerged with plans for a term loan B amendment and extension proposal, and A-Gas FinCo Inc. is coming to market this week with a buyout financing term loan.

Intertape gains ground

Intertape Polymer’s first-lien term loan was quoted at 89 bid, 92 offered on Tuesday, up from Monday’s closing levels of 86 bid, 88 offered but down from Monday morning levels of 93½ bid, 94½ offered, according to a market source.

The term loan dropped on Monday after S&P trimmed the company’s issuer credit and first-lien credit facility ratings to CCC+ from B- and unsecured notes rating to CCC- from CCC, the source said. The outlook is stable.

The downgrade primarily reflects S&P’s expectation for adjusted EBITDA interest coverage of about 1x with thin free operating cash flow generation through at least 2024, the rating release explained.

Under these assumptions, S&P considers the company’s existing capital structure to be unsustainable over the long term and more dependent on favorable business conditions to meet its financial commitments.

Intertape is a Sarasota, Fla.-based provider of packaging and protective solutions.

Belfor tweaked

Moving to the primary market, Belfor finalized pricing on its $1.235 billion term loan B due 2030 at SOFR plus 375 basis points, the low end of the SOFR plus 375 bps to 400 bps talk, set pricing on its €250 million term loan B due 2030 at Euribor plus 425 bps, the high end of the Euribor plus 400 bps to 425 bps talk, and changed the original issue discount on the euro loan to 98.5 from 99, a market source remarked.

As before, the U.S. term loan has a 0.5% floor and an original issue discount of 99, the euro term loan has a 0% floor, and both loans (B1/B) have 101 soft call protection for six months.

Commitments for the U.S. term loan were due at 5 p.m. ET on Tuesday, the source added.

JPMorgan Chase Bank is the left lead on the deal that will be used to refinance an existing $783 million first-lien term loan B due 2026 and a $654 million incremental first-lien term loan B due 2026, to repay revolver borrowings and for general corporate purposes.

Belfor is a Birmingham, Mich.-based disaster recovery and property restoration company.

ITP Aero guidance

ITP Aero held its lender call on Tuesday morning and announced original issue discount talk of 99 on its fungible $200 million add-on term loan B due Sept. 14, 2029, according to a market source.

Like the existing term loan B, pricing on the add-on term loan is SOFR plus 375 bps with a step-up to SOFR plus 400 bps at more than 0.5x inside original closing first-lien net leverage of 3.5x and a 0.5% floor.

The add-on term loan has a 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.

Commitments are due at noon ET on Oct. 31, the source added.

RBC Capital Markets, UBS Investment Bank and Santander are leading the deal that will be used to fund the acquisition of BP Aerospace, an Irving, Tex.-based provider of aircraft engine aftermarket services, and to provide cash on hand for future acquisition opportunities.

Closing on the acquisition is expected by year-end, subject to regulatory approvals.

Bain Capital is the sponsor.

ITP Aero is a Zamudio, Spain-based aerospace and engine component supplier.

Ryan on deck

Ryan set a lender call for 9 a.m. ET on Wednesday to launch $1.14 billion of term loans (B2/B+), split between a $950 million seven-year first-lien term loan and a $190 million first-lien delayed-draw term loan, a market source said.

The delayed-draw term loan has 24-months availability, and ticking fees of half the margin for days 61 to 120 and the full margin thereafter, and the term loan has 101 soft call protection for six months, the source added.

Jefferies LLC, SMBC, Antares Capital, BMO Capital Markets, BofA Securities Inc., JPMorgan Chase Bank, MUFG and RBC Capital Markets are leading the deal that will be used to refinance existing debt and fund two acquisitions under letters of intent.

Ryan is a Dallas-based tax services and software provider serving blue-chip global enterprise clients with a best-in-class, founder led management team.

Amneal readies deal

Amneal Pharmaceuticals scheduled a lender call for 1 p.m. ET on Wednesday to launch a $2.544 billion term loan B due 2028 (B2/B) talked at SOFR plus 525 bps with a 0.5% floor and an original issue discount of 96, according to a market source.

The term loan has 102 hard call protection in year one and 101 soft call protection in year two.

Commitments are due at 5 p.m. ET on Nov. 1, the source added.

JPMorgan Chase Bank is leading the deal that will be used to amend and extend an existing $2.544 billion term loan due May 2025 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.

A-Gas joins calendar

A-Gas FinCo will hold a lender call at 9 a.m. ET on Wednesday to launch a new term loan, a market source remarked.

Citigroup Global Markets Inc. is leading the deal that 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.

Fund flows

In other news, actively managed loan fund flows on Monday were negative $16 million and loan ETFs were positive $23 million, sources said.

Inflows for loan funds week-to-date total an estimated $51 million, compared to outflows in the prior week of $26 million, sources added.

Loan indices mixed

IHS Markit’s iBoxx loan indices were mixed on Monday, with the Leveraged Loan indexes (MiLLi) closing up 0.01% and the Liquid Leveraged Loan indices (LLLi) closing down 0.05%.

Month to date, the MiLLi is up 0.12% and year to date it is up 9.96%, and the LLLi is up 0.02% month to date and up 9.1% year to date.

Average secondary market bids in the United States on Monday were 92.93, down 0.05% from the previous day and up 1.15% year to date.

According to the IHS Markit data, some of the top advancers on Monday were CenturyLink/Lumen’s January 2020 covenant-lite term loan B at 71.17, up from 69.76, Xplornet’s October 2021 second-lien covenant-lite term loan at 36.56, up from 36.25, and CPC Acquisition’s December 2020 covenant-lite term loan at 78.2, up from 77.83.

Some top decliners on Monday were EyeCare Partners’ August 2022 incremental term loan at 63, down from 65.17, Weight Watchers’ April 2021 covenant-lite term loan at 75.17, down from 77.04, and Petmate/Doskocil’s October 2021 incremental covenant-lite term loan B at 59.62, down from 60.82.

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