Reynolds talks $2.48 billion; Cobham talks dual-currency deal; 2020 fund flows turn positive

By Paul A. Harris

Portland, Ore., Jan. 21 – The dedicated bank loan funds appear to have a foot firmly planted, in the opening weeks of the new year, according to market sources.

The combined funds saw $80 million of daily inflows on Friday, the most recent session for which data was available at press time.

Bank loan ETFs saw $50 million of inflows on the day.

Actively managed bank loan funds saw $30 million of inflows on Friday, the source said.

Factoring the $327 million of net inflows which the combined funds saw in the week to Jan. 15 close, they have seen $780 million of inflows, year-to-date.

However, the funds have wood to chop, seeing as how they sustained a record $38.3 billion of net outflows last year, the market source noted.

In the primary market, Reynolds Consumer Products LLC talked its $2,475,000,000 seven-year first-lien term loan with a 175 to 200 basis points spread to Libor at 99.5.

And Cobham plc set pricing in its dual-currency seven-year first lien term loan deal (B1/B).

The deals

In Tuesday's post-holiday weekend market Reynolds Consumer Products talked its $2,475,000,000 seven-year first-lien term loan with a 175 to 200 bps spread to Libor at 99.5.

Commitments are due at 5 p.m. ET on Jan. 29.

The deal has a 0% Libor floor and features 101 soft call protection for six months.

Cobham set pricing in its dual-currency seven-year first-lien term loan deal (B1/B).

The offering includes a $788 million loan with pricing at Libor plus 425 bps atop a 1% Libor floor at 99.

It also features a €885 million loan (B1/B) with pricing at Euribor plus 425 bps atop a 1% Euribor floor at 99.

Commitments are due on Feb. 4.

France-based Banijay Group plans to run an international roadshow for two tranches of five-year covenant-lite senior secured term loan debt.

The deal sees Banijay Entertainment SAS undertaking the syndication of €503 million of the term loan B, while Banijay Group US Holding Inc. is in the market with $500 million of the loan.

The European roadshow starts Wednesday in London. The U.S. roadshow starts Monday. Deadlines for both loans are set for Feb. 6.

Ineos Styrolution US Holding LLC and Ineos Styrolution Group GmbH revised price talk on their dual-tranche term loan (Ba2/BB).

A $202 million term loan is talked with a 200 bps spread to Libor, decreased from 225 bps.

A €500 million term loan with price talk of Euribor plus 200 to 225 bps at 99.75 to par. Previous talk had a 225 to 250 bps spread at 99.75.

Books close Wednesday.

EyeCare Partners, LLC plans to launch a $900 million seven-year covenant-lite first-lien term loan at a bank meeting set to get underway on Wednesday morning.

Avantor tightened price talk on its $677 million term loan B due November 2024 and its €349 million term loan B due November 2024 (Ba2/B+/BB+).

Revised talk on the U.S. term loan is Libor plus 225 bps at par. The coupon tightened from 250 bps. The issue price talk increased from 99.875 to par. The spread comes with a 25 bps step-down at 0.5x inside closing date net first-lien leverage, a 1% Libor floor.

Revised talk on the euro term loan is Euribor plus 250 bps at par. The coupon tightened from 275 bps. The issue price increased from 99.875 to par. The spread comes with a 25 bps step-down at 0.5x inside closing date net first-lien leverage, a 0% floor.

Norway-based Petroleum Geo-Services is in the market with up to $527 million first lien term loan B facilities due March 2024.

The deal includes a $377 million outstanding of existing term loan which the company proposes to extend by 36 months.

There will also be a new $150 million term loan.

Pricing is partially based on gross leverage: Libor plus 700 bps at 1.75 times leverage or greater, 650 bps at less than 1.75 times, 600 bps at less than 1.25 times.

Atlantic Power Corp. detailed its $380 million term loan B (Ba2/BB) repricing.

The repricing would lower the spread to Libor plus 250 basis points from the present 275 bps spread.

Offering price talk is 99.875 to par.

Consents are due on Jan. 28.

And Fiserv Investment Solutions, Inc. will hold a lender meeting on Wednesday morning in New York for a term loan B.

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