HUB, Calpine, Crocs, Solenis, Autokiniton, Chamberlain, Cross, Warner, Kenan and more break

By Sara Rosenberg

New York, Jan. 19 – HUB International trimmed the spread on its term loan B and widened the issue price, Calpine Corp. finalized the original issue discounts on its term loan B-5 and term loan B-10, Crocs Inc. set the spread on term loan B at the low end of talk, and Solenis firmed the issue price on its term loan B at the tight end of talk, and then these deals freed to trade on Friday.

Also, before breaking for trading, Autokiniton US Holdings Inc. set pricing on its term loan B at the low side of guidance, Chamberlain Group LLC (Chariot Buyer LLC) upsized its incremental term loan B, firmed pricing at the low end of talk, added a step-down and modified the issue price, Cross Financial cut pricing on its term loan B, and Warner Music Group (WMG Acquisition Corp.) revised the original issue discount on its term loan B.

Some other deals that made their way into the secondary market during the session included Kenan Advantage Group Inc., Westinghouse (WEC US Holdings Ltd.) and Insulet Corp.

In more happenings, Ensemble lowered pricing on its term loan B, SBA Communications Corp. upsized its term loan B, PCI Pharma Services (Packaging Coordinators Midco Inc.) increased the size of its incremental first-lien term loan and revised the original issue discount, and Rough Country raised the size of its add-on term loan and tightened the issue price.

Additionally, Foundation Building Materials and Savers Inc. released price talk with launch, and Wood Mackenzie (Planet US Buyer LLC), Science Applications International Corp., Univar Solutions Inc. and Refresco Group BV joined the near-term primary calendar.

HUB revised, frees

HUB International cut pricing on its $4.86 billion term loan B due June 2030 to SOFR plus 325 bps from SOFR plus 350 bps and changed the original issue discount to 99.875 from par, a market source said.

The term loan still has a 0.75% floor and 101 soft call protection for six months.

Recommitments were due at 11:30 a.m. ET on Friday and the term loan started trading later in the day, with levels quoted at par 1/8 bid, par 3/8 offered, a trader added.

Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc. and JPMorgan Chase Bank are leading the deal that will be used to reprice an existing $4.75 billion term loan B due 2030 down from SOFR plus 425 bps with a 0.75% floor, and will be used with a $1.9 billion senior unsecured notes offering and a $1.1 billion add-on secured notes offering to refinance an existing $844 million term loan B-4 due 2029 and $1.67 billion of senior unsecured notes due 2026.

Hellman & Friedman is the sponsor.

HUB is a Chicago-based insurance brokerage firm.

Calpine updated, trades

Calpine set the original issue discount on its $700 million term loan B-5 due December 2027 at 99.875, the midpoint of the 99.75 to par talk, and finalized the discount on its $730 million term loan B-10 due January 2031 at 99.5, the wide end of the 99.5 to 99.75 talk, according to a market source.

Pricing on both term loans remained at SOFR plus 200 bps with a 0% floor.

During the session, the term loans broke for trading, with the B-5 quoted at 99 7/8 bid, par 1/8 offered and the B-10 quoted at 99½ bid, 99¾ offered, a trader added.

BMO Capital Markets, BofA Securities Inc., Barclays, BNP Paribas Securities Corp., Citigroup Global Markets Inc., Credit Agricole, Deutsche Bank Securities Inc., Goldman Sachs Bank USA, JPMorgan Chase Bank, Mizuho Morgan Stanley Senior Funding Inc., MUFG, Natixis, RBC Capital Markets, Santander and SMBC are leading the deal that will be used to reprice an existing term loan B-5 due December 2027 and to amend and extend an existing upsized term loan B-10 due August 2026.

Calpine is a Houston-based provider of power generation services.

Crocs sets spread, frees

Crocs finalized pricing on its $820 million senior secured covenant-lite term loan B (Ba2) due Feb. 17, 2029 at SOFR plus 225 bps, the low end of the SOFR plus 225 bps to 250 bps talk, a market source said.

The term loan still has a 0.5% floor, a par issue price, 101 soft call protection for six months and no CSA.

On Friday, the term loan made its way into the secondary market, with levels quoted at par bid, par 3/8 offered, another source added.

Citigroup Global Markets Inc., HSBC Securities (USA) Inc., Morgan Stanley Senior Funding Inc. and PNC are leading the deal that will be used to reprice an existing term loan down from SOFR+CSA plus 300 bps with a 0.5% floor. CSA on the existing term loan is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

Closing is expected on Feb. 13.

Crocs is a Broomfield, Colo.-based casual footwear company.

Autokiniton finalized, breaks

Autokiniton firmed pricing on its $1.155 billion senior secured covenant-lite term loan B due April 6, 2028 at SOFR plus 400 bps, the low end of the SOFR plus 400 bps to 425 bps talk, according to a market source.

The term loan still has a 25 bps step-down at 2.61x net first-lien leverage, ARRC CSA of 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate, a 0.5% floor, a par issue price and 101 soft call protection for six months.

During market hours, the term loan began trading, with levels quoted at par 1/8 bid, par ½ offered, another source added.

Citigroup Global Markets Inc. is leading the deal that will be used to reprice an existing term loan down from SOFR+ARRC CSA plus 450 bps with a 25 bps step-down at 2.61x net first-lien leverage and a 0.5% floor.

Autokiniton is a New Boston, Mich.-based provider of automotive components and assembly solutions.

Chamberlain tweaked, trades

Chamberlain Group lifted its non-fungible incremental covenant-lite term loan B (//B-) due Nov. 3, 2028 to $775 million from $625 million, set pricing at SOFR plus 375 bps, the low end of the SOFR plus 375 bps to 400 bps talk, added a step-down to SOFR plus 350 bps at 4.75x first-lien net leverage, and moved the original issue discount to 99.25 from talk in the range of 98.75 to 99, a market source said.

As before, the incremental term loan has a 0.5% floor and 101 soft call protection for six months.

Recommitments were due at 1:30 p.m. ET on Friday and the term loan freed to trade late in the day, with levels quoted at 99 3/8 bid, 99¾ offered, another source added.

Wells Fargo Securities LLC is the left lead on the deal that will be used to repay an existing second-lien term loan, to pay transaction-related fees and expenses, and for general corporate purposes.

Blackstone is the sponsor.

Chamberlain Group is an Oak Brook, Ill.-based provider of smart access solutions across residential and commercial properties.

Solenis firmed, hits secondary

Solenis finalized the issue price on its $793.5 million term loan B (B3/B-) due November 2028 at par, the tight end of the 99.75 to par talk, a market source remarked.

Pricing on the term loan remained at SOFR plus 425 bps with a 0.5% floor, and the debt still has 101 soft call protection for six months.

On Friday, the term loan broke for trading, with levels quoted at par ¼ bid, par ½ offered, a trader added.

Goldman Sachs Bank USA, BofA Securities Inc., BMO Capital Markets, HSBC Securities (USA) Inc., Citigroup Global Markets Inc., Macquarie Capital (USA) Inc. and Nomura are leading the deal that will be used to reprice and combine the company’s 2023 incremental term loan B due 2028 and 2022 incremental term loan B due 2028.

Solenis, a Platinum Equity portfolio company, is a Wilmington, Del.-based provider of services for water intensive and disinfection end markets.

Cross trims pricing, frees

Cross Financial lowered pricing on its $438 million term loan B due September 2027 to SOFR plus 350 bps from SOFR plus 375 bps, according to a market source.

The term loan still has a 0.75% floor, a par issue price and 101 soft call protection for six months.

Recommitments were due at 1 p.m. ET on Friday and the term loan freed up later in the day, with levels quoted at par bid, par 3/8 offered, another source added.

JPMorgan Chase Bank is leading the deal that will be used to reprice an existing term loan down from SOFR+ARRC CSA plus 400 bps with a 0.75% floor.

Cross Financial is an insurance broker.

Warner Music revised, breaks

Warner Music Group adjusted the original issue discount on its $1.295 billion seven-year term loan B to 99.875 from talk in the range of 99.5 to 99.75, a market source said.

The term loan is still priced at SOFR plus 200 bps with a 0% floor, and has 101 soft call protection for six months.

Recommitments were due at noon ET on Friday and the term loan broke later in the day, with levels quoted at 99 7/8 bid, par ¼ offered, another source added.

JPMorgan Chase Bank is leading the deal that will be used to refinance an existing term loan due 2028 that is priced at SOFR+ARRC CSA plus 212.5 bps with a 0% floor.

Originally, the company was seeking a repricing of the term loan with original issue discount talk of 99.75 to par and no change to maturity, but it was switched to a refinancing during syndication.

Warner Music is a New York-based music entertainment company.

Kenan starts trading

Kenan Advantage Group’s $1.48 billion five-year covenant-lite term loan B freed to trade, with levels quoted at 99 7/8 bid, par 1/8 offered, according to a market source.

Pricing on the U.S. term loan, as well as on a $46.1 million equivalent Canadian five-year covenant-lite term loan B, is SOFR plus 375 bps with a 0% floor. The debt was sold at an original issue discount of 99.5 and has 101 soft call protection for six months.

During syndication, the size of the U.S. and Canadian tranches were outlined after launching as $1.525 billion equivalent U.S. and Canadian term loan B with tranching to be determined, pricing was reduced from talk in the range of SOFR plus 400 bps to 425 bps and the discount was revised from 99.

The company’s $1.7261 billion of credit facilities (B2/B) also include a $200 million five-year revolver with a springing maturity 91 days in advance of the term loan B.

Kenan lead banks

KeyBanc Capital Markets, Citizens, Barclays, CIBC, ING, MUFG, Regions, UBS Investment Bank, Wells Fargo Securities LLC and Fifth Third are leading Kenan’s credit facilities.

Proceeds will be used to extend existing credit facilities from March 2026 and to pay related fees and expenses.

Kenan Advantage, owned by OMERS, is a North Canton, Ohio-based provider of liquid bulk transportation services to the fuels, chemicals, liquid foods and merchant gas markets.

Westinghouse hits secondary

Westinghouse’s $3.5 billion seven-year first-lien term loan B (B1/B+/BB-) broke as well, with levels quoted at 99 7/8 bid, par 1/8 offered, a trader said.

Pricing on the term loan is SOFR plus 275 bps with a 25 bps step-down at Ba3/BB- ratings with a stable outlook and a 0% floor. The debt was sold at an original issue discount of 99.5 and has 101 soft call protection for six months.

During syndication, pricing on the term loan was lowered from talk in the range of SOFR plus 300 bps to 325 bps, all leverage-based and initial public offering pricing step-downs were removed and the ratings-based step-down was added, and some changes were made to documentation.

Deutsche Bank Securities Inc., BMO Capital Markets, BNP Paribas Securities Corp., RBC Capital Markets, Credit Agricole, Goldman Sachs Bank USA, TD Securities (USA) LLC, Santander and Barclays are leading the deal that will be used to refinance the company’s existing capital structure.

Westinghouse, a Cranberry Township, Pa.-based provider of infrastructure services to the nuclear power sector, expects to close on the term loan B on Thursday.

Insulet breaks

Insulet’s $488 million senior secured covenant-lite first-lien term loan B (Ba2/BB-) due May 2028 also began trading, with levels quoted at par 1/8 bid, par 5/8 offered, according to a trader.

Pricing on the term loan is SOFR plus 300 bps with a 0% floor and it was issued at par. The debt has 101 soft call protection for six months.

Morgan Stanley Senior Funding Inc., Citigroup Global Markets Inc., JPMorgan Chase Bank, Goldman Sachs Bank USA, DNB, Bank of Nova Scotia and TD Securities (USA) LLC are leading the deal that will be used to reprice an existing term loan.

Closing is expected late in the week of Jan. 22.

Insulet is an Acton, Mass.-based medical device company dedicated to simplifying life for people with diabetes and other conditions.

Ensemble flexed

Ensemble trimmed pricing on its $1.7 billion term loan B (B2/B) due August 2029 to SOFR plus 300 bps from talk in the range of SOFR plus 325 bps to 350 bps, a market source remarked.

The term loan still has a 0% floor, an original issue discount of 99.5, 101 soft call protection for six months and no CSA.

Recommitments were due at 10 a.m. ET on Friday and allocations went out later in the day, the source added.

Goldman Sachs Bank USA is the left lead on the deal that will be used to refinance an existing $1.7 billion term loan B due 2026 that is priced at SOFR+10 bps CSA plus 375 bps with a 0% floor.

Berkshire Partners, Warburg Pincus and Golden Gate Capital are the sponsors.

Ensemble is a Cincinnati-based provider of technology-enabled, end-to-end revenue cycle management services to hospitals and health systems.

SBA upsized

SBA Communications lifted its seven-year term loan B to $2.3 billion from $2 billion, and left pricing at SOFR plus 200 bps with no CSA, a 0% floor and an original issue discount of 99.75, a market source remarked.

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

Previously in syndication, the discount on the term loan was changed from 99.5.

Allocations are expected on Monday, the source added.

TD Securities (USA) LLC and Mizuho are the joint lead arrangers on the deal, and are joint bookrunners with Barclays, Citigroup Global Markets Inc., Goldman Sachs Bank USA, JPMorgan Chase Bank and Wells Fargo Securities LLC.

The term loan will be used with cash on hand and a revolver draw, the amount of which is being reduced as a result of the term loan upsizing, to refinance an existing roughly $2.4 billion term loan B due April 2025 that is priced at SOFR+10 bps CSA plus 175 bps, and to pay related fees and expenses.

SBA is a Boca Raton, Fla.-based owner and operator of wireless communications infrastructure.

PCI reworked

PCI Pharma Services raised its fungible incremental first-lien term loan due Nov. 30, 2027 to $440 million from $400 million and changed the original issue discount to 99.5 from 99.27, according to a market source.

Pricing on the incremental term loan is SOFR+CSA plus 350 bps with a 0.75% floor, in line with existing term loan pricing. CSA is ARRC standard of 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

Commitments are due at 2 p.m. ET on Monday, accelerated from noon ET on Wednesday, the source added.

Jefferies LLC is the left lead on the deal that will be used to refinance the company’s second-lien term loan and, as a result of the upsizing, for general corporate purposes.

PCI is a Philadelphia-based provider of outsourced pharmaceutical services.

Rough Country modified

Rough Country increased its fungible add-on term loan due July 28, 2028 to $110 million from $100 million and revised the original issue discount to 99.5 from 99.03, a market source said.

Pricing on the add-on term loan is SOFR+CSA plus 350 bps with a 0.75% floor, in line with existing term loan pricing. CSA is ARRC standard of 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

Allocations went out on Friday, the source added.

Golub Capital and Jefferies LLC are leading the deal that will be used to repay a portion of the company’s existing second-lien term loan.

Rough Country is a Dyersburg, Tenn.-based manufacturer and distributor of off-road accessories and suspension systems.

Foundation guidance

Foundation Building Materials held its lender call on Friday morning and announced talk on its $1 billion seven-year term loan B-2 (B2/B) at SOFR plus 400 bps with a 0% floor, an original issue discount of 98.5 and 101 soft call protection for six months, according to a market source.

Commitments are due at noon ET on Jan. 26, the source added.

RBC Capital Markets, Goldman Sachs Bank USA, Deutsche Bank Securities Inc., BofA Securities Inc., US Bank, Truist Securities, TD Securities (USA) LLC, KeyBanc Capital Markets and UBS Investment Bank are leading the deal that will be used to partially pay down a HoldCo seller note and to fund a shareholder dividend.

American Securities is the sponsor.

Foundation Building is a Santa Ana, Calif.-based specialty distributor of wallboard, metal framing and suspended ceiling systems.

Savers talk

Savers came out with talk of SOFR plus 400 bps with no CSA, a 0.75% floor, a par issue price and 101 soft call protection for six months on its $322 million first-lien term loan B that launched with a call in the afternoon, a market source said.

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

KKR Capital Markets is leading the deal, which will be used to reprice an existing term loan down from SOFR+CSA plus 525 bps with a 0.75% floor. Current CSA is 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

Savers is a Bellevue, Wash.-based thrift store chain.

Wood Mackenzie on deck

Wood Mackenzie set a lender call for 10:30 a.m. ET on Tuesday to launch a $1.315 billion seven-year term loan B, according to market sources.

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

BofA Securities Inc., Nomura, BMO Capital Markets and others to be announced are leading the deal that will be used to refinance an existing $1.244 billion unitranche term loan.

Wood Mackenzie is an Edinburgh, UK-based provider of data, analytics, research and consulting services for the energy, renewables and natural resources sectors.

Science readies deal

Science Applications International scheduled a lender call for 11 a.m. ET on Monday to launch an up to $510.25 million seven-year senior secured covenant-lite term loan B, a market source remarked.

Talk on the term loan is SOFR plus 187.5 bps with a 0% floor, an original issue discount of 99.25 to 99.5 and 101 soft call protection for six months, the source added.

Commitments are due at 5 p.m. ET on Feb. 1, with allocations expected on Feb. 2.

Citigroup Global Markets Inc. is the left lead on the deal that will be used to repay an existing term loan B due 2025 and term loan B-2 due 2027, and to pay fees and expenses.

Science Applications is a Reston, Va.-based technology integrator.

Univar joins calendar

Univar Solutions will hold a lender call at 12:30 p.m. ET on Monday to launch a fungible $325 million add-on term loan due August 2030 and a fungible $125 million equivalent euro add-on term loan due August 2030, according to a market source. Small group meetings are available on Tuesday and Wednesday.

Pricing on the add-on term loans is SOFR/Euribor plus 450 bps with a 0% floor, in line with existing U.S. and euro term loan pricing.

Both add-on term loans are talked with an original issue discount of 99 to 99.5, the source continued.

Commitments are due at 5 p.m. ET on Thursday for the U.S. loan and at noon ET on Thursday for the euro loan, the source added.

JPMorgan Chase Bank is leading the deal (//BB-) that will be used to fund a dividend.

Univar is a Downers Grover, Ill.-based specialty chemical and ingredient distributor.

Refresco coming soon

Refresco plans to hold a lender call at 10:30 a.m. ET on Monday to launch a $1.594 billion term loan B due 2029 and a €1.53 billion term loan B due 2029, a market source said.

Price talk on the U.S. term loan is SOFR plus 375 bps with a 0.5% floor and a par issue price, and talk on the euro term loan is Euribor plus 400 bps with a 0% floor and a par issue price, the source continued. Both loans have 101 soft call protection for six months.

Commitments for the U.S. loan are due at 5 p.m. ET on Thursday and commitments for the euro loan are due at noon ET on Thursday, the source added.

JPMorgan Chase Bank is the left lead on the U.S. loan and KKR Capital Markets is a physical bookrunner, and Goldman Sachs, JPMorgan, KKR and Rabobank are the joint physical bookrunners on euro loan. ABN Amro, Commerzbank and ING are passive bookrunners. JPMorgan is the agent.

The debt will be used to reprice existing U.S. and euro term loans.

Refresco is a Rotterdam, the Netherlands-based beverage producer.

Fund flows

In other news, actively managed loan fund flows on Thursday were negative $24 million and loan ETFs were positive $34 million, according to a market source.

Loan funds reported weekly outflows totaling $3 million, with positive $179 million ETFs. These were the third outflows in the last 12 weeks.

Outflows for loan funds in 2024 total $118 million, compared to outflows in 2023 totaling $17.3 billion, the source added.

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