Bangl, Legence, Arconic term loans break; Fortress Investment accelerates deadline

By Sara Rosenberg

New York, July 27 – Bangl LLC set the spread and original issue discount on its term loan B at the wide end of talk and shortened the maturity, and then the debt freed up for trading on Thursday afternoon.

Also, Legence Holdings LLC finalized the issue price on its incremental first-lien term loan at the tight end of revised guidance before breaking for trading, and Arconic Corp.’s term loan B made its way into the secondary market as well.

Additionally, Fortress Investment Group FinCo I LLC moved up the new lender commitment deadline for its term loan B, and H.B. Fuller Co. and Avient Corp. Inc. joined the near-term primary calendar.

Bangl revised, frees

Bangl finalized pricing on its $350 million senior secured term loan B (B2/BB-/BB) at SOFR plus 450 basis points, the high end of the SOFR plus 425 bps to 450 bps talk, firmed the original issue discount at 98, the wide end of the 98 to 98.5 talk, and shortened the maturity to 5˝ years from seven years, according to a market source.

As before, the term loan has a 0% floor, 101 soft call protection for six months and no CSA.

Recommitments were due at 1 p.m. ET on Thursday and the term loan began trading in the afternoon, with levels quoted at 98 bid, 99 offered, another 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.

Legence updated, breaks

Legence Holdings set the original issue discount on its fungible $155 million incremental first-lien term loan (B2/B-) due Dec. 16, 2027 at 99.25, the tight end of revised talk of 99.03 to 99.25 and tighter than initial talk of 99.03, a market source said.

Like the existing term loan, the incremental term loan is priced at SOFR+10 bps CSA plus 375 bps with a 0.75% floor.

Previously in syndication, the incremental term loan was upsized from $125 million.

On Thursday, the incremental term loan freed to trade, with levels quoted at 99 3/8 bid, 99 7/8 offered, another source added.

Jefferies LLC, Societe Generale, BMO Capital Markets, MUFG and Blackstone are leading the deal that will be used for general corporate purposes, including to fund future acquisitions.

Pro forma for the transaction, the term loan totals about $1.044 billion.

Legence, formerly Therma Holdings LLC, is a Blackstone-owned San Jose, Calif.-based specialty mechanical, electrical and plumbing services provider focused on serving mission-critical facilities with a high cost of failure.

Arconic hits secondary

Arconic’s $1.425 billion seven-year term loan B broke for trading, with levels quoted at 99˝ bid, par offered, a market source remarked.

Pricing on the term loan is SOFR plus 450 bps with a 25 bps step-down when net total leverage is below 2.75x and a 0% floor. The debt was sold at an original issue discount of 99, and has 101 soft call protection for six months, and ticking fees of half the margin on days 46 through 90 and the full margin plus three-month SOFR thereafter.

During syndication, the term loan was upsized from a revised amount of $1.225 billion and an initial size of $1 billion, pricing was reduced from SOFR plus 475 bps, the step-down was added, and the discount was tightened from revised talk in the range of 98 to 98.5 and initial talk in the range of 97 to 97.5.

The company’s $2.625 billion of senior secured credit facilities also include a $1.2 billion five-year asset-based revolver.

Arconic lead banks

JPMorgan Chase Bank, Wells Fargo Securities LLC, Apollo, BMO Capital Markets, Mizuho, TD Securities (USA) LLC, Citigroup Global Markets Inc., Citizens, Fifth Third, Standard Chartered and Truist are leading Arconic’s credit facilities.

Proceeds will be used with $700 million of senior secured notes, $500 million of senior unsecured notes, $2.304 billion of equity and $175 million of balance sheet cash to fund the buyout of the company by Apollo Global Management Inc. for $30.00 per share in cash in a transaction with an enterprise value of about $5.2 billion.

The senior secured notes were downsized from $900 million and the unsecured notes were downsized from $725 million when the term loan was upsized.

Closing is expected in the third quarter, subject to customary conditions.

Arconic is a Pittsburgh-based provider of aluminum sheet, plate and extrusions as well as architectural products.

Fortress tweaks timing

Fortress Investment Group accelerated the deadline for new lender commitments for its $800 million covenant-lite term loan B (Ba1/BB/BB) due June 2028 to 3 p.m. ET on Friday from noon ET on Monday, according to a market source.

Commitments from existing lenders were already due at 5 p.m. ET on Wednesday.

Talk on the term loan is SOFR plus 300 bps with a 0% floor, an original issue discount of 99 and 101 soft call protection for six months.

Deutsche Bank Securities Inc. and Goldman Sachs Bank USA are leading the deal that will be used to amend and extend by three years an existing $700 million term loan B and to fund future acquisitions.

Fortress Investment is an alternative investment management firm.

H.B. Fuller on deck

H.B. Fuller set a lender call for 10 a.m. ET on Monday to launch a $798 million first-lien term loan B due February 2030 talked at SOFR plus 225 bps with a 0.5% floor, an original issue discount of 99.5 to 99.75 and 101 soft call protection for six months, a market source remarked.

Commitments are due at noon ET on Aug. 10, the source added.

JPMorgan Chase Bank is leading the deal that will be used to reprice an existing $798 million first-lien term loan B due February 2030 down from SOFR plus 250 bps with a 0.5% floor.

H.B. Fuller is a St. Paul, Minn.-based industrial adhesives, sealants, coatings and specialty materials company.

Avient joins calendar

Avient emerged with plans to hold a lender call at 10 a.m. ET on Friday to launch a roughly $832 million first-lien senior secured term loan B-7, according to a market source.

Morgan Stanley Senior Funding Inc. is the left lead on the deal that will be used to refinance the company’s existing term loan B-5 due 2026 and term loan B-6 due 2029, and to pay related fees and expenses.

Avient is an Avon Lake, Ohio-based provider of specialized and sustainable material solutions.

Fund flows

In other news, actively managed loan fund flows on Wednesday were negative $5 million and loan ETFs were positive $11 million, market sources said.

The tracking estimate for Thursday night’s Lipper numbers for loans are outflows totaling $75 million, sources added.

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