Chart Industries, BRP, Apex, Axalta break; BJ’s, Travel + Leisure, Summit changes emerge

By Sara Rosenberg

New York, Dec. 8 – Chart Industries Inc. upsized its term loan B, set pricing at the low end of guidance, changed the original issue discount and tweaked the ticking fees, and BRP Inc. (Bombardier Recreational Products Inc.) increased the size of its incremental term loan B, trimmed the spread and revised the issue price, and then these deals freed up for trading on Thursday.

Also, Apex Group Ltd. modified the original issue discount on its incremental term loan B before making its way into the secondary market, and Axalta Coating Systems Ltd.’s term loan B broke for trading as well.

In more happenings, BJ’s Wholesale Club Inc. finalized the size of its amended and extended first-lien term loan and tightened the new money issue price as well as the extension fee for existing lenders, and Travel + Leisure Co. lowered the spread on its incremental term loan and changed the original issue discount.

Furthermore, Summit Materials revised price talk on its term loan B and modified the issue price, and Mariner Wealth Advisors came to market with an incremental first-lien term loan.

Chart Industries updated

Chart Industries lifted its seven-year term loan B (Ba3/B+) to $1,434,800,000 from $1.315 billion, finalized pricing at SOFR plus 375 basis points, the low end of the SOFR plus 375 bps to 400 bps talk, and tightened the original issue discount to 97.5 from 97, according to a market source.

Also, the ticking fees were changed to the full margin starting on day 31 from half the margin for days 31 to 60 and the full margin thereafter, the source said.

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

JPMorgan Chase Bank, Morgan Stanley Senior Funding Inc., HSBC Securities (USA) Inc., PNC Capital Markets, Regions, Citizens, MUFG and Synovus are leading the deal.

Chart starts trading

Commitments for Chart Industries’ term loan were due at noon ET on Thursday, accelerated from 5 p.m. ET on Thursday, and the debt broke in the afternoon, with levels quoted at 98½ bid, 99 offered, another source added.

The loan will be used with $1.46 billion of senior secured notes, upsized from $1.31 billion, $510 million of senior unsecured notes, downsized from $750 million, and preferred stock to fund the acquisition of Howden for $4.4 billion from KPS Capital Partners LP and pay all associated costs and expenses.

Closing is expected in the first half of 2023, subject to regulatory approvals and other customary conditions.

Chart Industries is a Ball Ground, Ga.-based manufacturer of highly engineered equipment servicing multiple applications in the energy and industrial gas markets. Howden is a U.K.-based provider of mission critical air and gas handling products and services.

BRP reworked, frees

BRP raised its non-fungible seven-year incremental term loan B to $500 million from $400 million, cut pricing to SOFR plus 350 bps from SOFR plus 375 bps and moved the original issue discount to 97.5 from 97, a market source said.

The term loan still has a 0.5% floor and 101 soft call protection for six months.

Recommitments were due at noon ET on Thursday and the term loan B began trading in the afternoon, with levels quoted at 97¾ bid, 98¼ offered, a trader added.

RBC Capital Markets and Citigroup Global Markets Inc. are the joint lead arrangers on the deal, BMO Capital Markets and TD Securities (USA) LLC are co-bookrunners, and CIBC and National are co-arrangers.

The loan will be used to repay outstanding revolver borrowings, to repay a $100 million term loan B-2 due 2024, for general corporate purposes and to pay related fees and expenses.

BRP is a Valcourt, Quebec-based designer, manufacturer, distributor and marketer of motorized recreational vehicles and powersports engines.

Apex revised, breaks

Apex Group changed the original issue discount on its fungible $400 million incremental term loan B (B1) due July 2028 to 94 from talk in the range of 92 to 93, according to a market source.

Pricing on the incremental term loan is SOFR plus 500 bps with a 0.5% floor, and both the incremental loan and the existing incremental term loan due July 2028 are getting 101 soft call protection for six months.

Recommitments were due at 2:30 p.m. ET on Thursday and the incremental loan broke in the afternoon, with levels quoted at 94¼ bid, 95¼ offered before moving up to 95 bid, 96 offered, another source added.

BofA Securities Inc., Goldman Sachs Bank USA, JPMorgan Chase Bank and Morgan Stanley Senior Funding Inc. are leading the deal that will be used to fund the acquisition of Pacific Fund Systems and for general corporate purposes, including other acquisitions.

If the Pacific Fund purchase does not close by Jan. 16, the incremental term loan will be repaid at its OID, plus all accrued and unpaid interest.

Apex Group is a financial services provider.

Axalta hits secondary

Axalta’s $2 billion seven-year senior secured term loan B (Ba1/BBB-) broke for trading in the afternoon, with levels quoted at 99¼ bid, par offered, a market source remarked.

Pricing on the term loan is SOFR plus 300 bps with a 0.5% floor and it was sold at an original issue discount of 99. The debt has 101 soft call protection for six months and no CSA.

During syndication, pricing on the term loan was lowered from SOFR plus 325 bps and the discount was revised from talk in the range of 97.5 to 98.5.

Barclays, Deutsche Bank Securities Inc., JPMorgan Chase Bank, BofA Securities Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA and Truist are leading the deal that will be used with cash from the balance sheet to refinance the company’s existing $2.021 billion term loan B due June 2024 and to pay related fees and expenses.

The borrowers are Axalta Coating Systems U.S. Holdings Inc. and Axalta Coating Systems Dutch Holding BBV.

Axalta, a Glen Mills, Pa.-based coatings company, expects to close on the loan during the week of Dec. 19.

BJ’s tweaks loan

BJ’s Wholesale Club firmed the size of its covenant-lite first-lien term loan due February 2027 at $450 million, compared to talk at launch of up to $452 million, adjusted the new money original issue discount to 99.75 from 99.625 and reduced the extension fee for existing lenders to 25 bps from 37.5 bps, a market source remarked.

As before, the term loan is priced at SOFR plus 275 bps with a 0% floor, and has 101 soft call protection for six months and no CSA.

Recommitments were due at 5 p.m. ET on Thursday, the source added.

Nomura Securities, BofA Securities Inc., Wells Fargo Securities LLC and Deutsche Bank Securities Inc. are leading the deal that will be used to amend and extend the maturity of $450 million of the company’s existing first-lien term loan by three years from February 2024.

With this transaction, the Westborough, Mass.-based warehouse club operator will repay $151.92 million of the existing first-lien term loan with funds from a draw on its ABL revolver.

Current pricing on the existing first-lien term loan is Libor plus 200 bps with a 0% floor.

Travel + Leisure flexes

Travel + Leisure trimmed pricing on its $300 million seven-year incremental term loan to SOFR plus 400 bps from talk in the range of SOFR plus 425 bps to 450 bps and tightened the original issue discount to 97.5 from 97, a market source said.

The term loan still has 10 bps CSA, a 0.5% floor and 101 soft call protection for six months.

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

JPMorgan Chase Bank is the left lead on the deal. BofA Securities Inc. is the administrative agent.

The loan will be used with cash on hand and revolver borrowings to refinance the company’s 3.9% notes due 2023.

Travel + Leisure is an Orlando, Fla.-based membership and leisure travel company.

Summit changes surface

Summit Materials modified price talk on its $510 million five-year term loan B (Ba1) to a range of SOFR plus 300 bps to 325 bps from SOFR plus 325 bps and revised the original issue discount to 98.5 from talk in the range of 97 to 97.5, according to a market source.

The term loan still has 10 bps CSA, a 0% floor and 101 soft call protection for six months.

Commitments continue to be due at noon ET on Friday, the source added.

BofA Securities Inc. is the left lead on the deal that will be used to refinance an existing term loan B due 2024 that is priced at Libor plus 225 bps with a 0% floor.

Summit Materials is a Denver-based construction materials company.

Mariner holds call

Mariner Wealth Advisors held a lender call at 10 a.m. ET on Thursday to launch a non-fungible $100 million incremental first-lien term loan (B-) due August 2028 talked at SOFR+10 bps CSA plus 425 bps to 450 bps with a 0.5% floor, an original issue discount of 95 and 101 soft call protection for six months, according to a market source.

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

BMO Capital Markets is leading the deal that will be used for general corporate purposes, including to fund near-term acquisitions.

Mariner Wealth Advisors is an investment adviser.

Fund flows

In other news, actively managed loan fund flows on Wednesday were negative $152 million and loan ETFs were negative $155 million, market sources said.

Actively managed high yield fund flows on Wednesday were negative $85 million and high-yield ETFs were positive $173 million, sources added.

© 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.