Idera, P&I deals allocate; loan funds see $163 million outflows in week to Feb. 12 close

By Paul A. Harris

Portland, Ore., Feb. 14 – Valentine’s Day Friday, falling ahead of the extended Presidents Day holiday weekend, saw a moderate news flow in the leveraged loan market.

P&I (Athena Bidco GmbH) priced its €475 million seven-year covenant-lite term loan B, and Idera Inc. priced and allocated its $770 million first-lien term loan.

The retail cash picture of the bank loan funds, year-to-date, is one of negative but moderating flows, following 2019’s record outflows, a market source said.

Dedicated bank loan funds saw outflows of $163 million in the week to the Wednesday, Feb. 12 close, according to the source.

However, weekly outflows from the loan funds appear to be moderating, the source specified, adding that the most recent weekly outflow comes on the heels of consecutive weekly outflows totaling $487 million and $661 million.

The loan funds, after sustaining a record $38.3 billion of outflows in 2019, actually began the new year with back-to-back inflows, but have since returned to negative weekly flows, the source said, noting that the loan funds have now seen weekly outflows in 62 of the past 65 weeks.

Year-to-date, the loan funds have seen $351 million of net outflows, the market source said.

Friday bank loan business

P&I (Athena Bidco GmbH) priced its €475 million seven-year covenant-lite term loan B with a 325 bps spread to Euribor at par.

The deal allocated.

The spread came inside of the 350 to 375 bps spread talk. The issue price came at the rich end of the revised 99.75 to par price talk; earlier talk was 99.5.

Idera Inc. priced and allocated its $770 million first-lien term loan due June 2024 (B3/B-).

The deal features a 400 bps spread to Libor, tight to the 400 to 425 bps spread talk.

The loan priced at par for existing holders. New money accounts got in at 99.75.

Ceridian HCM Holding Inc. priced a $672 million covenant-lite term loan B due April 30, 2025 (B2/B+) with a 250 bps spread to Libor at par.

The spread and issue price came on top of talk.

Meanwhile, Help/Systems Holdings, Inc. scheduled a lender call at 11 a.m. ET on Tuesday for a $60 million fungible incremental first-lien term loan due November 2026.

Proceeds will be used to fund an acquisition.

And Tecomet plans to participate in a lender call at 1 p.m. ET on Tuesday as they launch a $135 million fungible incremental first-lien term loan due May 1, 2024 into the market.

The Wilmington, Mass.-based provider of precision manufacturing solutions to medical device, aerospace and defense original equipment manufacturers plans to use the proceeds to fund a shareholder distribution.

© 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.