Fiat Chrysler quoted wider with amendment request; PDC plans add-on; AWAS readies extension

By Sara Rosenberg

New York, March 7 – FCA US LLC (Fiat Chrysler Automobiles) saw levels on its term loans widen out a bit in the secondary market on Monday after details surfaced on the company’s planned amendment.

In other happenings, PDC Brands joined this week’s new issue calendar, AWAS Finance is getting ready to bring a term loan extension transaction to market, and Harvey Gulf International Marine LLC set a call to launch an amendment proposal.

FCA offered higher

FCA US’ term loans were unchanged on the bid side but stronger on the offer side following the launch of an amendment with a lender call in the morning, according to a trader.

The 2017 term loan was quoted at 99 7/8 bid, 100 3/8 offered, versus 99 7/8 bid, 100 1/8 offered on Friday, and the 2018 term loan was quoted at 99 5/8 bid, 100 1/8 offered, compared to 99 5/8 bid, 99 7/8 offered previously, the trader said.

Under the amendment proposal, the company is looking to remove the restriction on distributions to parent company, FCA Group, and, in return, lenders will get a $2 billion paydown on the term loans and a 25-basis-point consent fee, a market source remarked.

Responses are due on Thursday.

Citigroup Global Markets Inc. is the administrative agent on the 2017 loan, and J.P. Morgan Securities LLC is the administrative agent on the 2018 loan.

FCA US is an Auburn Hills, Mich.-based automaker. FCA Group is a London-based automaker.

PDC Brands on deck

Moving to the primary market, PDC Brands emerged with plans to hold a lender call on Tuesday to launch a $40 million add-on term loan, a market source said.

Antares Capital is leading the debt that will be used to fund a tack-on acquisition.

PDC Brands, formerly known as Parfums de Coeur, is a Stamford, Conn.-based beauty, personal care and wellness company.

AWAS sets call

AWAS Finance scheduled a lender call for 11 a.m. ET on Tuesday to launch an extension of its roughly $245 million term loan to June 2018 from June 2016, according to a market source.

RBC Capital Markets is leading the transaction.

Current pricing on the term loan is Libor plus 275 bps with a 0.75% Libor floor. Extended term loan price talk is not yet available.

AWAS is a Dublin-based aircraft leasing company.

Harvey to seek amendment

Harvey Gulf set a lender call for noon ET on Tuesday to launch an amendment to its term loan A and revolving credit facility, a market source remarked.

Bank of America Merrill Lynch is leading the transaction.

Harvey Gulf is a New Orleans-based marine transportation company.

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