Filtration Group, Wyndham, XPO, PG&E, Cinemark, Golden Entertainment, TTM set talk

By Sara Rosenberg

New York, May 15 – It was a relatively busy day in the primary market on Monday, with deals from Filtration Group Corp., Wyndham Hotels & Resorts Inc., XPO Inc., PG&E Corp., Cinemark Holdings Inc., Golden Entertainment Inc. and TTM Technologies Inc. all releasing price talk on their term loans in connection with lender calls.

Also, Solenis scheduled a lender call for its previously announced incremental term loan B and Protective Industrial Products Inc. (PIP) joined this week’s new issue calendar.

Filtration comes to market

Filtration Group surfaced in the morning with the intention to hold a lender call at 11:30 a.m. ET on Monday to launch a $1.227 billion first-lien term loan due October 2028 and a €409 million first-lien term loan due October 2028, a market source remarked.

The U.S. term loan is talked at SOFR+CSA plus 375 basis points to 400 bps with a 0.5% floor and an original issue discount of 99, and the euro term loan is talked at Euribor plus 425 bps to 450 bps with a 0.5% floor and a discount of 98, the source continued.

CSA on the U.S. loan is 11 bps one-month rate, 26 bps three-month rate and 43 bps six-month rate, and both loans have 101 soft call protection for six months.

Goldman Sachs Bank USA and JPMorgan Chase Bank are leading the deal that will be used to amend and extend an existing U.S. first-lien term loan due 2025 and an existing euro first-lien term loan due 2025.

New lender commitments are due at 10 a.m. ET on Friday, and rolled signature pages and amendment consents are due at 5 p.m. ET on Thursday for the U.S. loan and end of day London time on Thursday for the euro loan, the source added.

Filtration Group is a provider of filtration solutions serving a diverse portfolio of global end markets.

Wyndham holds call

Wyndham Hotels & Resorts emerged early in the day with plans to hold a lender call at 2 p.m. ET to launch a $750 million seven-year covenant-lite term loan B (//BBB-) talked at SOFR+10 bps CSA plus 225 bps to 250 bps with a 0% floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months, according to a market source.

Commitments are due at noon ET on Thursday, the source continued.

Deutsche Bank Securities Inc., JPMorgan Chase Bank and BofA Securities Inc. are leading the deal that will be used with $400 million of other senior secured debt to refinance an existing term loan B.

Cashless roll into the new term loan B is available, the source added.

Wyndham is a Parsippany, N.J.-based hotel franchising company.

XPO proposed terms

XPO hosted a lender call at 10 a.m. ET, launching a $700 million amended and extended term loan B (BBB-) due May 2028 talked at SOFR plus 200 bps to 225 bps with a 0% floor, an original issue discount of 99 and 101 soft call protection for six months, a market source said.

Goldman Sachs Bank USA, Citigroup Global Markets Inc., BofA Securities Inc., Morgan Stanley Senior Funding Inc. and Credit Agricole are leading the loan that will be used with $830 million of additional senior secured debt, $450 million of additional senior unsecured debt and cash on hand to refinance an existing roughly $2 billion term loan F due 2025.

New lender commitments are due at 11 a.m. ET on Thursday and rolled signature pages are due at 3 p.m. ET on Wednesday, the source added.

XPO is a Greenwich, Conn.-based provider of freight transportation services.

PG&E refinancing

PG&E came out in the morning with plans to hold a lender call at 2 p.m. ET to launch roughly $2.66 billion of term loans, split between a roughly $1.33 billion term loan due June 2026 and a roughly $1.33 billion term loan due June 2028, according to a market source.

Both term loans are talked at SOFR plus 300 bps with a 0.5% floor and 101 soft call protection for six months, the source said. The 2026 term loan is talked with an original issue discount of 99.25 and the 2028 is talked with a discount of 98.75 to 99.

Commitments are due at 5 p.m. ET on May 22, the source added.

JPMorgan Chase Bank is leading the deal that will be used to refinance a roughly $2.67 billion term loan due June 2025.

PG&E is a San Francisco-based electric and natural gas utility.

Cinemark shops loan

Cinemark held a lender call at 3 p.m. ET, launching a $650 million seven-year first-lien term loan B (Ba2) at talk of SOFR plus 350 bps to 375 bps with a 0.5% floor, an original issue discount of 98.5 and 101 soft call protection for six months, a market source remarked.

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

Barclays, Wells Fargo Securities LLC and JPMorgan Chase Bank are leading the deal that will be used to refinance the company’s existing first-lien term loan B due March 2025 and pay related fees and expenses.

The borrower is Cinemark USA Inc.

Cinemark is a Plano, Tex.-based motion picture exhibitor.

Golden Entertainment guidance

Golden Entertainment announced price talk of SOFR+10 bps CSA plus 275 bps to 300 bps with a 0.5% floor and an original issue discount of 99 on its $400 million seven-year first-lien term loan B (Ba3/BB) in connection with its afternoon lender call, a market source said.

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

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

JPMorgan Chase Bank, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Citizens Bank are leading the deal that will be used to help repay a roughly $575 million term loan due 2024, and pay related fees and expenses.

The refinancing will also be funded with proceeds from the sale of the company’s Rocky Gap Casino Resort through which Century Casinos Inc. will acquire the operations of Rocky Gap for $56.1 million, subject to customary working capital adjustments, and VICI Properties Inc. will acquire an interest in the land and buildings associated with Rocky Gap for $203.9 million.

Closing on the sale is expected mid-year, subject to regulatory approvals and customary conditions.

Golden Entertainment is a Las Vegas-based owner and operator of a diversified entertainment platform.

TTM launches

TTM Technologies set a lender call for 2 p.m. ET on Monday to launch a $350 million seven-year term loan B (Ba1//BB+) talked at SOFR plus 275 bps to 300 bps with a 0% floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

Commitments are due at noon ET on May 23, the source added.

JPMorgan Chase Bank is leading the deal that will be used to refinance an existing term loan due September 2024.

TTM is a Santa Ana, Calif.-based printed circuit board manufacturer.

Solenis on deck

Solenis scheduled a lender call for 9:30 a.m. ET on Tuesday to launch its previously announced non-fungible $750 million incremental term loan B (B3) due Nov. 9, 2028, a market source remarked.

Goldman Sachs Bank USA, BofA Securities Inc., BMO Capital Markets, HSBC Securities (USA) Inc., Deutsche Bank Securities Inc., Citigroup Global Markets Inc., Macquarie Capital (USA) Inc. and Nomura are leading the loan that will be used with $1.625 billion of senior secured notes, $500 million equivalent of euro senior secured notes and about $2 billion of contributed equity to fund the acquisition of Diversey Holdings Ltd. for an enterprise value of about $4.6 billion, to repay existing Diversey net debt, and to pay related fees and expenses.

Diversey shareholders, other than shareholders affiliated with Bain Capital Private Equity, will receive $8.40 per share in cash. Bain Capital will receive $7.84 per share in cash and will rollover a portion of its shares of Diversey into an affiliate of Solenis in exchange for common and preferred units of such affiliate.

Closing is expected in the second half of this year, subject to customary conditions, including approval by Diversey shareholders and receipt of regulatory approvals.

Solenis, a Platinum Equity portfolio company, is a Wilmington, Del.-based manufacturer of specialty chemicals used in water-intensive industries. Diversey is a Fort Mill, S.C.-based provider of hygiene, infection prevention and cleaning solutions.

PIP readies loan

Protective Industrial Products set a lender call for 10 a.m. ET on Tuesday to launch a non-fungible $150 million incremental first-lien term loan, according to a market source.

Antares Capital is the left lead on the deal that will be used to fund acquisitions.

Protective Industrial, a portfolio company of Odyssey Investment Partners, is a Latham, N.Y.-based provider of essential, consumable and high-performance hand and arm protection as well as other personal protective equipment and workwear.

Loan indices slide

In other news, IHS Markit’s iBoxx loan indices were lower on Friday, with the Leveraged Loan indexes (MiLLi) closing out the day down 0.01% and the Liquid Leveraged Loan indices (LLLi) closing out the day down 0.04%.

Month to date, the MiLLi is down 0.16% and year to date it is up 3.89%, and the LLLi is down 0.43% month to date and up 4.01% year to date.

Average secondary market bids in the U.S. on Friday were 91.12, down 0.08% from the previous day and down 0.83% year to date.

According to the IHS Markit data, some of the top advancers on Friday were Akorn’s October 2020 exit term loan at 87.67, up from 28.08, Mitel Networks’ November 2018 covenant-lite fourth out no roll-up term loan at 24.5, up from 23.25, and Forming Machining/Atlas Group’s October 2018 covenant-lite term loan at 78, up from 75.

Some top decliners on Friday were Checkers Drive-In’s April 2017 term loan at 43, down from 46.25, Tosca’s February 2021 covenant-lite term loan at 70, down from 72.38, and National CineMedia’s June 2018 term loan B at 32.63, down from 33.55.

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