Berry Global tightens; Granite Energy launches $1.5 billion; loan funds see outflows

By Paul A. Harris

Portland, Ore., Oct. 15 – In Tuesday's bank loan market, Berry Global Group Inc. tightened spread talk on both tranches of its $2,032,500,000 term loan package.

Granite Energy, LLC launched $1.5 billion of senior secured credit facilities, including a $1.4 billion seven-year first-lien term loan B.

Meanwhile the combined daily cash flows of the dedicated bank loan funds were negative on Friday, as well as on Monday, according to a market source.

The combined bank loan funds saw $277 million outflows on Friday, including $67 million of daily outflows from the bank loan ETFs and $210 million of outflows from actively managed bank loan funds, on the day, the source said.

On Monday, the most recent session for which data was available at press time, the combined funds saw $49 million of daily net outflows.

On Monday the bank loan ETFs were positive, with $31 million of inflows.

However actively managed bank loan funds sustained $80 million of outflows on the day, the source said.

News on the deals

Berry Global Group tightened spread talk on both tranches of its $2,032,500,000 of term loan package.

Spread talk on both tranches dropped to Libor plus 200 basis points from 225 bps.

The debt is split between a $1.545 billion term loan W due October 2022 and a $487.5 million term loan X due January 2024.

Elsewhere Granite Energy launched $1.5 billion of senior secured credit facilities.

The institutional part of the deal includes a $1.4 billion seven-year first lien term loan B talked with a 350 to 375 bps spread to Libor and a 0% Libor floor, at 99.

High Liner Foods Inc. finalized pricing on its $300 million term loan B due October 2026 with a Libor plus 425 bps spread at 99.

The spread came tight to the 425 bps to 450 bps spread talk.

Patriot Rail & Ports priced its $285 million Libor plus 525 bps seven-year term loan B at 98.

The spread comes on top of the revised Libor plus 525 bps spread talk. Earlier spread talk was in the range of Libor plus 475 bps to 500 bps, according to a market source.

The issue price came on top of final price talk, which had been revised from 99.

Turning to new deals, Ellie Mae Inc. plans to hold a lender call on Thursday to discuss issuing an incremental term loan B.

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