Belfor frees to trade; Packers Sanitation retreats some more; Clarios accelerates deadline

By Sara Rosenberg

New York, April 19 – Belfor Holdings Inc. tightened the original issue discount on its add-on term loan and then the debt made its way into the secondary market on Wednesday, with levels quoted above the revised issue price.

Also, Packers Sanitation Services Inc.’s (PSSI) term loan continued to slide in trading on Wednesday in reaction to news reports that Cargill Inc. has canceled its contracts with the company.

Meanwhile, in other happenings, Clarios Global LP moved up the commitment deadline for its term loan B, and Tekni-Plex Inc. (Trident TPI Holdings Inc.), Tank Holding Corp., Talen Energy Supply LLC and Signant Health (Bracket Intermediate Holding Corp.) joined this week’s new issue calendar.

Belfor revised, breaks

Belfor adjusted the original issue discount on its fungible $300 million add-on term loan (B1) due 2026 to 99.75 from talk in the range of 99 to 99.5, a market source said.

Pricing on the add-on term loan is SOFR plus 425 basis points with a 0.5% floor.

Recommitments were due at 2 p.m. ET on Wednesday, and the add-on term loan began trading later in the day, with levels quoted at par bid, par ½ offered, another source added.

JPMorgan Chase Bank is leading the deal that will be used to repay revolver borrowings and for general corporate purposes.

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

Packers softens

Packers Sanitation’s term loan continued its downward trend on Wednesday, which began on the heels of news reports late Friday that Cargill is terminating all contracts for sanitation services with the company as a result of allegations of the use of child labor, according to a market source.

“To be clear, while allegations settled between PSSI and the Department of Labor did not involve any claims of misconduct against Cargill, we will not tolerate the use of underage labor within our facilities or supplier network. Cargill is steadfast in ensuring fair and equitable labor practices for all employees that work in our facilities and holds all third parties to the highest ethical standards,” Cargill told Prospect News in a company statement.

Packers Sanitation’s term loan was quoted by one source at 67 bid, 72 offered on Wednesday afternoon, down from 74 bid, 79 offered in the early morning, 76 bid, 81 offered on Tuesday and 91½ bid 92½ offered on Monday.

A second source had the term loan quoted at 64 bid, 67½ offered on Wednesday, down from 71 bid, 74 offered on Tuesday.

Packers Sanitation is a Kieler, Wis.-based provider of mission critical cleaning, sanitation and compliance services to the food processing industry. Cargill is a Minneapolis-based food company.

Clarios tweaks timing

In other news, Clarios accelerated the commitment deadline for its $1 billion seven-year term loan B (B+) to 5 p.m. ET on Wednesday from 5 p.m. ET on Thursday, a market source remarked.

Talk on the term loan is SOFR plus 400 bps with a 0% floor, an original issue discount of 98 and 101 soft call protection for six months.

JPMorgan Chase Bank is the left lead on the deal that will be used with $500 million of senior secured notes to refinance about $1.5 billion of the company’s existing term loan due 2026.

Clarios is a Milwaukee-based supplier of low voltage automotive batteries.

Tekni-Plex on deck

Tekni-Plex set a lender call for 10 a.m. ET on Thursday to launch an $880 million equivalent U.S. and euro incremental covenant-lite first-lien term loan B due September 2028, according to a market source.

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

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

Credit Suisse, BMO Capital Markets, Jefferies LLC and Goldman Sachs are leading the deal that will be used to refinance existing debt.

Tekni-Plex is a Wayne, Pa.-based provider of healthcare and consumer material solutions.

Tank readies deal

Tank Holding will hold a lender call on Thursday to launch a non-fungible $450 million incremental unitranche term loan, a market source said.

Antares Capital is leading the deal that will be used to fund several acquisitions.

Tank Holding is a Lincoln, Neb.-based designer and manufacturer of rigid liquid storage tanks and containers, material handling solutions, and custom products.

Talen coming soon

Talen Energy Supply scheduled a lender call for 9:30 a.m. ET on Thursday to launch a new loan (BB), according to a market source.

Citigroup Global Markets Inc. is leading the deal that will be used to help fund the company’s emergence from Chapter 11.

The company expects to emerge from bankruptcy in the first half of this year.

Talen Energy is a Houston-based power generation and infrastructure company.

Signant joins calendar

Signant Health emerged with plans to hold a lender call at 11 a.m. ET on Thursday to launch $1.06 billion of credit facilities, a market source remarked.

The facilities consist of an $80 million revolver, an $850 million five-year first-lien term loan and a $130 million delayed-draw first-lien term loan, the source continued.

The term loan has 101 soft call protection for six months, and the delayed-draw term loan is available for six months and has ticking fees of half the margin for days 46 to 90 and the full margin thereafter.

Commitments are due at 2 p.m. ET on May 2, the source added.

Jefferies LLC and Antares Capital are leading the deal that will be used to refinance the company’s existing debt.

Signant is a provider of clinical research technology and solutions for clinical trials.

Loan indices rise

IHS Markit’s iBoxx loan indices were higher on Tuesday, with the Leveraged Loan indexes (MiLLi) closing out the day up 0.05% and the Liquid Leveraged Loan indices (LLLi) closing out the day up 0.01%.

Month to date, the MiLLi is up 0.8% and year to date it is up 3.88%, and the LLLi is up 0.97% month to date and up 4.3% year to date.

Average secondary market bids in the U.S. on Tuesday were 91.6, up 0.05% from the previous day and down 0.3% year to date.

According to the IHS Markit data, some of the top advancers on Tuesday were ClubCorp’s August 2017 covenant-lite term loan B at 92.13, up from 89.44, LogMeIn’s August 2020 covenant-lite term loan B at 60.22, up from 58.96, and Monitronics’ August 2019 takeback term loan at 49.25, up from 48.25.

Some top decliners on Tuesday were Packers Sanitation Services/PSSI’s March 2021 covenant-lite term loan at 74.33, down from 91.45, Genesis Care’s March 2020 U.S. covenant-lite term loan B at 26.42, down from 27.75, and Tradesmen/Tribe Buyer’s February 2017 term loan at 65.75, down from 68.88.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.