GoDaddy term loan B-5 hits secondary; Omnia accelerates commitment deadline

By Sara Rosenberg

New York, July 14 – GoDaddy Inc.’s term loan B-5 freed up for trading during Friday’s session, with levels quoted above its issue price.

Meanwhile, in the primary market, Omnia Partners LLC moved up the commitment deadline for its first-lien term loan and delayed-draw first-lien term loan.

In addition, Bangl LLC joined the near-term new issue calendar with plans for a senior secured term loan B.

GoDaddy frees up

GoDaddy’s $1,761,150,000 term loan B-5 (Ba1/BB) due November 2029 broke for trading on Friday, with levels quoted at par 1/8 bid, par ½ offered, a trader said.

Pricing on the term loan is SOFR plus 250 basis points with a 0% floor and it was issued at par. The debt has 101 soft call protection for six months.

During syndication, pricing on the term loan was reduced from SOFR plus 275 bps and the 25 bps step-down when first-lien net leverage is below 1.45x was removed.

RBC Capital Markets, HSBC Securities (USA) Inc., Wells Fargo Securities LLC, BNP Paribas Securities Corp., Morgan Stanley Senior Funding Inc., JPMorgan Chase Bank, Barclays, Goldman Sachs Bank USA and Deutsche Bank Securities Inc. are leading the deal.

The transaction will be used to reprice an existing $1,761,150,000 term loan B-5 due November 2029 down from SOFR plus 325 bps with a 25 bps step-down when first-lien net leverage is below 1.45x and a 0% floor.

GoDaddy is Tempe, Ariz.-based provider of web hosting and domain names.

Omnia tweaks timing

Moving to the primary market, Omnia Partners accelerated the commitment deadline for its $1.625 billion seven-year first-lien term loan and $155 million delayed-draw first-lien term loan to noon ET on Tuesday from noon ET on Thursday, according to a market source.

The term loans, which will trade as a strip, are talked at SOFR plus 450 bps to 475 bps with a 0% floor and an original issue discount of 97.5 to 98.

The term loan has 101 soft call protection for six months, delayed-draw term loan availability is up to six months after closing, subject to first-lien net leverage of 6x or less, and ticking fees on the delayed-draw term loan are half the margin from days 46 to 90 and the full margin thereafter.

The company’s $2.03 billion of credit facilities (B2/B) also include a $250 million revolver.

Omnia lead banks

Barclays, Fifth Third, Brinley, BNP Paribas Securities Corp., Citizens, UBS Investment Bank, Jefferies LLC and Golub Capital are the joint lead arrangers on Omnia’s credit facilities. PSP is the engagement party.

Proceeds will be used to fund the acquisition of Premier Inc.’s non-health care group purchasing organization operations for about $800 million, to refinance in full the company’s existing debt, for general corporate purposes and to pay related fees and expenses.

Closing on the acquisition is expected by early August, subject to regulatory approval and customary conditions.

Omnia, owned by TA Associates, Leonard Green & Partners and management, is a Franklin, Tenn.-based non-health care group purchasing organization.

Bangl on deck

Bangl set a lender call for 10 a.m. ET on Monday to launch a $350 million seven-year senior secured term loan B (BB-), a market source remarked.

The term loan has 101 soft call protection for six months, the source added.

Barclays and Investec are leading the deal that will be used to support the construction of the Bangl expansion.

Bangl is a large-scale, operating, high barrier-to-entry pipeline system that transports NGL barrels from the Permian to Gulf Coast fractionation and purity markets.

Fund flows

In other news, actively managed loan fund flows on Thursday were negative $40 million and loan ETFs were positive $94 million, market sources said.

Loan funds reported weekly outflows totaling $137 million, including negative $59 million ETFs.

While net negative over the last six weeks, loan funds have significantly moderated from the year’s first five months, sources continued. Specifically, loan funds have reported a weekly average outflow of $33 million over the last six weeks compared to a $624 million average weekly outflow from January through May.

Year to date, outflows for loans funds total $19 million, with negative $1.1 billion ETFs, sources added.

Loan indices rise

IHS Markit’s iBoxx loan indices were stronger on Thursday, with the Leveraged Loan indexes (MiLLi) closing out the day up 0.1% and the Liquid Leveraged Loan indices (LLLi) closing out the day up 0.1%.

Month to date, the MiLLi is up 0.92% and year to date it is up 7.2%, and the LLLi is up 0.85% month to date and up 7.06% year to date.

Average secondary market bids in the U.S. on Thursday were 92.03, up 0.05% from the previous day and up 0.16% year to date.

According to the IHS Markit data, some of the top advancers on Thursday were Convergeone’s January 2019 covenant-lite term loan at 65.25, up from 63.67, LaserShip’s May 2021 covenant-lite term loan at 84.44, up from 82.55, and RCN Cable/Astound Broadband’s November 2021 covenant-lite term loan B at 85.19, up from 83.86.

Some top decliners on Thursday were Viasat’s March 2022 covenant-lite term loan at 95.25, down from 98.04, Pretium Packaging’s October 2021 covenant-lite term loan at 72.75, down from 74.25, and National CineMedia’s June 2018 term loan B at 28.25, down from 28.73.

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