Elanco, Gardner Denver detail loan offers, funds sustain $238 million Friday outflows

By Paul A. Harris

Portland, Ore., Jan. 27 – The dedicated bank loan funds sustained $238 million of net outflows on Friday, the most recent session for which data was available at press time, according to a market source.

Bank loan ETFs saw $103 million of outflows on the day.

Actively managed bank loan funds sustained $135 million of outflows on Friday, the source said.

Yet in the wake of Friday's outflows, the bank loan funds remain in the green thus far in 2020, the source said.

The combined loan funds have seen $769 million of net inflows for the year to Friday's close.

Those year-to-date inflows, of course, pale in comparison to the $38.3 billion of net outflows which the dedicated loan funds sustained in 2019, the source pointed out.

Amid a heavy Monday news flow, Elanco Animal Health talked its $2,425,000,000 seven-year term loan B with a 200 basis points spread to Libor at 99.5 to 99.75.

And Gardner Denver Holdings, Inc. announced details on bank debt (Ba2/BB+) associated with its merger with Ingersoll-Rand Services Co.

New paper

Elanco Animal Health talked its $2,425,000,000 seven-year term loan B with a 200 bps spread to Libor at 99.5 to 99.75.

Proceeds will be used to fund the acquisition of Bayer Animal Health.

Gardner Denver Holdings announced details on bank debt (Ba2/BB+) associated with its merger with Ingersoll-Rand Services Co.

A new Ingersoll-Rand Services (SpinCo Borrower) $1.9 billion senior secured term loan B is talked with a 200 bps spread to Libor at 99.5 to 99.75.

Gardner Denver talked $928 million of extended and amended dollar-denominated senior secured term loan B with a 200 bps spread to Libor at 99.5 to 99.75.

Gardner Denver also talks $657 million equivalent (€602 million) of extended and amended euro-denominated senior secured term loan B with a 225 bps spread to Euribor at 99.5 to 99.75.

Cobham plc upsized the dollar-denominated tranche of its dual-currency seven-year first-lien term loan (B1/B) to $1,188,000,000 from $788 million.

With the upsize, the $400 million of incremental proceeds will be used to cancel out a contemplated $400 million tranche of other senior secured debt.

The size of the euro-denominated loan tranche remains unchanged at €885 million.

Along with the upsizing of the dollar-denominated tranche, timing for both tranches moved ahead. Commitments are due Jan. 30 for the dollar-denominated tranche, and Jan. 31 for the euro-denominated tranche. Previously, books for both tranches had been expected to remain open until Feb. 4.

Pricing is unchanged.

United PF Holdings, LLC, the largest Planet Fitness franchisee, plans to launch $746 million of bank debt on a Tuesday.

The facilities include a $40 million five-year revolver, a $525 million seven-year first-lien term loan and a $65 million seven-year first-lien delayed-draw term loan.

In addition to those tranches the facilities include a privately placed $116 million eight-year second-lien term loan.

In a straight-up refinancing deal National Mentor, formerly known as Civitas, launched a $205 million fungible incremental first-lien term loan due March 2026 with a 425 bps spread to Libor at 99.5 to 99.75.

The maturity and call protection are unchanged from the original loan.

Commitments are due Feb. 6.

Goldman Sachs is the left lead. UBS and Barclays are the joint leads.

Froneri International Ltd. upsized the dollar-denominated tranche of its multi-currency term loan to $2.67 billion from $2.16 billion, according to a market source.

Along with the upsize, a downsized £390 million tranche is eliminated.

The revisions are leverage neutral, the source said.

Apart from those changes, details on the €5.7 billion equivalent seven-year covenant-lite first-lien tranches (B1/B+) are unchanged.

Repricings

News on the bank loan repricing front continued to surge on Monday.

PQ Corp. detailed a repricing and extension effort underway for its $947,497,500 senior secured term loan B (B1/BB-).

The extension would push out the maturity by seven years.

Price talk is Libor plus 200 to 225 bps at 99.75, with a 0% Libor floor.

Web.com Group, Inc. seeks to reprice a $997,640,297 term loan B due Oct. 11, 2025 with a 350 bps spread to Libor at par.

Commitments and consents are due Thursday.

Radiology Partners, Inc. talked a repricing of about $1.34 billion of first-lien term loan B debt due July 9, 2025 with a 425 bps spread to Libor at par.

The existing spread is 475 bps.

Access CIG, LLC talked a repricing of $966 million of first-lien term loan debt with a 350 bps spread to Libor at par.

The deal includes a $916.2 million loan and a $50 million delayed-draw loan.

Wrench Group LLC set spread talk in a repricing of $973,900,000 million of first-lien term loan debt at Libor plus 375 to 400 bps.

The home maintenance and repair services provider wants to reprice the existing spread over Libor on about $223.9 million of term loan paper and a $750 million delayed-draw loan.

BrightSpring Health Services sold the repricing of its $1,791,000,000 term loan B (B1/B) due March 5, 2026 with a 325 bps spread to Libor at par.

The spread comes at the tight end of the 325 to 350 bps spread talk.

Russell Investments talked its $1,026,000,000 first-lien term loan B repricing with a 250 to 275 bps spread to Libor at par.

Veritext, LLC plans to launch a repricing of the VT TopCo, Inc. $471 million first-lien term loan due August 2025 on Tuesday.

Jefferies LLC has the books.

Atlantic Power Corp. tightened spread talk and widened the price talk on its $380 million term loan B (Ba2/BB) repricing.

Revised spread talk is Libor plus 250 bps, tightened from 275 bps. Revised price talk is 99.75 to par, extending the previous 99.875 to par price talk range to the cheap side by 0.125 bps.

The offer at hand would also extend the maturity to April 2025 from April 2023.

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