HB Fuller upsizes, SFR withdraws discount, Paradigm Outcomes finalizes pricing

By Paul A. Harris

Portland, Ore., Oct. 6 – In Friday's leveraged loan market HB Fuller Co. upsized its seven-year senior secured covenant-light term loan B (Ba2/BB+) to $2.15 billion and accelerated timing.

SFR Group SA withdrew its 25 cent discount offer from a €1 billion covenant-light term loan B-12 due January 2026.

And Paradigm Outcomes (Paradigm Acquisition Corp.) finalized pricing on a resized $430 million amount of bank debt.

HB Fuller upsizes

HB Fuller upsized its seven-year senior secured covenant-light term loan B (Ba2/BB+) to $2.15 billion from $1.85 billion, according to a market source.

Timing is accelerated: commitments are due at 5 p.m. ET Wednesday. The previous deadline was Thursday.

Price talk remains Libor plus 225 basis points to 250 bps with a 0% Libor floor and an original issue discount of 99.5, according to a market source.

The term loan has 101 soft call protection for six months and amortization of 1% per annum, the source said.

Morgan Stanley Senior Funding Inc., Citigroup Global Markets Inc. and J.P. Morgan Securities LLC are the joint lead arrangers and bookrunners on the deal, and Bank of America Merrill Lynch and U.S. Bank are co-managers.

Proceeds will be used to fund the acquisition of Royal Adhesives & Sealants for $1,575,000,000 on a cash-free, debt-free basis.

Leverage is expected to be around 5.3 times.

SFR withdraws discount

SFR Group withdrew its 25 cent discount offer from a €1 billion covenant-light term loan B-12 due January 2026, according to a market source.

The deal is now coming at par.

The $2.15 billion tranche of the B-12 loan remains offered 99.75.

Spread talk remains at Libor/Euribor plus 300 basis points with a 0% floor.

Commitments were due on Friday.

Credit Suisse and BNP Paribas are the global coordinators and bookrunners on the deal, with Credit Suisse the left lead on the U.S. piece and BNP the left lead on the euro piece. Other bookrunners include Goldman Sachs, JPMorgan, Morgan Stanley and Barclays.

The deal has 101 soft call protection for six months.

Proceeds will be used to refinance a €697 million term loan B-10 due 2025, a $1,781,000,000 term loan B-10 due 2025 and other outstanding debt.

Expected term loan B-12 ratings are B1/B+.

Paradigm Outcomes finalizes pricing

Paradigm Outcomes (Paradigm Acquisition Corp.) finalized pricing on a resized $430 million amount of bank debt, in a transfer of proceeds that saw $5 million shifted to the first-lien tranche from the second lien tranche, according to a market source.

An upsized $355 million seven-year covenant-light first-lien term loan firmed at Libor plus 425 basis points, the tight end of the 425 to 450 bps spread talk. The discount tightened to 99.75 from 99.5. The tranche retains a 1% Libor floor and has 101 soft call protection for six months. The tranche size increased from $350 million.

A downsized $75 million eight-year covenant-light second-lien term loan firmed at Libor plus 850 bps, the wide end of the 825 bps to 850 bps spread talk. The second-lien tranche remains offered at 99 and retains its 1% Libor floor and call protection of 102 in year one and 101 in year two. The tranche is downsized from $80 million.

Commitments were due on Friday.

The company’s $455 million of credit facilities also include a $25 million revolver.

Credit Suisse Securities (USA) LLC and SunTrust Robinson Humphrey Inc. are the lead banks on the deal.

Proceeds will be used to fund an acquisition and refinance existing debt.

Commitments are due on Oct. 5.

Bombardier upsizes with add-on

Bombardier Recreational Products Inc. upsized its Libor plus 250 basis points term loan due June 30, 2023 (Ba3/BB) to $793 million from $693 million by means of a fungible $100 million add-on set to price at par, according to a market source.

Commitments were due Friday.

The loan has a 0% Libor floor and 101 soft call protection for six months, the source said.

RBC Capital Markets LLC and BMO Capital Markets Corp. are the joint bookrunners on the deal.

Proceeds will be used to reprice an existing term loan B down from Libor plus 300 bps with a 0.75% Libor floor.

Energy Transfer prices

Energy Transfer Equity LP priced its $2.2 billion Libor plus 200 bps senior secured term loan B due Feb. 2, 2024 (Ba2/BB-) at 99.75, according to a market source.

The spread came at the tight end of the 200 to 225 bps spread talk. The reoffer price came on top of price talk.

Blount sets talk

Blount International Inc. talked its $615 million six-year first-lien term loan B (B1/B+) with a 425 bps to 450 bps spread to Libor and a 1% Libor floor at 99.5, according to a market source.

Commitments are due at 5 p.m. ET on Thursday.

Barclays is the lead bank on the deal.

The loan has six months of soft call protection at 101.

Proceeds will be used to refinance existing debt and to fund a dividend, the source said.

The sponsors are American Securities and P2 Capital.

ICP bank meeting

ICP Group will launch $290 million of first lien financing at a bank meeting set for Wednesday, according to a market source.

Antares Capital is the lead. BMO Capital Markets is the joint lead arranger.

The financing will be governed by a total net leverage financial covenant.

Proceeds, along with proceeds from a $105 million of second lien financing that is being raised separately, will be used to refinance debt.

ThoughtWorks cuts spread

ThoughtWorks Inc. cut the spread on its $200 million seven-year covenant-light first-lien term loan to Libor plus 450 basis points, according to a market source.

The deal had been in the market with talk of Libor plus 500 bps to 525 bps.

The spread will continue to float atop a 1% Libor floor.

Discount talk saw the reoffer price go 75 cents higher, to 99.75 from 99.

Commitments were due on Friday.

The deal retains 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC, HSBC and Nomura are the lead arrangers on the deal.

Proceeds will be used to help fund the buyout of the company by Apax Partners.

Closing is expected in the fourth quarter, subject to customary conditions.

Inovyn price talk

Inovyn Finance plc set talk on the repricing of an upsized €930 million of bank debt, according to a market source.

The deal includes an upsized €829 million covenant-light term loan B due 2024 talked with a 250 basis points spread to Euribor, a 0.75% Euribor floor at 99.875 to par. It amortizes at 1% annually and features 101 soft call protection for six months. The loan is upsized from €689 million.

There is also a €101 million amortizing term loan A due 2021 talked at Euribor plus 275 bps with a 0% Euribor floor.

Commitments will be due at 9 a.m. ET on Oct. 12.

HSBC and JPMorgan are the global coordinators and physical bookrunners. JPMorgan is the agent.

In addition to repricing its loans, Inovyn plans to use proceeds to repay its 6¼% senior secured notes due 2021.

Horizon Pharma lender call

Horizon Pharma scheduled a lender call at 10 a.m. ET on Tuesday to launch a syndicated loan.

Citigroup Global Markets Inc. is leading the deal.

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