BellRing frees to trade; Patriot Rail moves deadline; HUB, Ontic disclose price guidance

By Sara Rosenberg

New York, Oct. 10 – BellRing Brands LLC, for a second time, changed the size of its first-lien term loan and the original issue discount, and then the debt broke for trading on Thursday above its issue price.

In more happenings, Patriot Rail & Ports extended the commitment deadline for its credit facilities because of the recent Yom Kippur holiday.

Also, HUB International Ltd. and Ontic (Bleriot US Bidco Inc.) released price talk with launch, and United Pacific joined the near-term primary calendar.

BellRing tweaked

BellRing Brands modified its five-year first-lien term loan size to $700 million from a revised amount of $625 million and an initial amount of $820 million, and moved the original issue discount to 98 from revised talk of 97 and initial talk of 99.5, according to a market source.

The term loan is priced at Libor plus 500 basis points with a 1% Libor floor, and has 101 hard call protection for one year, amortization of 5% per annum and a 6x total net leverage maintenance covenant.

Previously in syndication, the spread on the term loan was flexed from Libor plus 350 bps, the floor was increased from 0%, the call protection was revised from a 101 soft call for six months, the maturity was shortened from seven years and the leverage covenant was added to the initially covenant-lite loan.

Along with the term loan, the company is getting a $200 million revolver.

BellRing hits secondary

Recommitments for BellRing’s bank debt were due at 2 p.m. ET on Thursday and the term loan freed up for trading later in the day, with levels quoted at 98¼ bid, 99¼ offered, a trader added.

Credit Suisse Securities (USA) LLC, BofA Securities, Inc., Morgan Stanley Senior Funding Inc., Goldman Sachs Bank USA, Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Barclays are leading the credit facilities.

Proceeds will be used to repay corporate debt concurrently with the company’s initial public offering of common stock.

BellRing, currently owned by Post Holdings Inc., is a St. Louis-based active nutrition brand.

Patriot updates timing

Back in the primary market, Patriot Rail & Ports pushed out the commitment deadline for its $325 million of credit facilities (B) to 5 p.m. ET on Thursday from 5 p.m. ET on Wednesday due to the Yom Kippur holiday on Wednesday, a market source remarked.

The facilities consist of a $40 million revolver and a $285 million seven-year term loan B.

Talk on the term loan B is Libor plus 475 bps to 500 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

RBC Capital Markets and Barclays are leading the deal that will be used to help fund the buyout of the company by First State Investments.

Closing is expected in the fourth quarter.

Patriot Rail is a Jacksonville, Fla.-based owner of a portfolio of short-line railroads, port terminals and related infrastructure assets, providing transportation and logistics solutions.

HUB reveals talk

HUB International held its lender call on Thursday and announced talk on its non-fungible $1.27 billion incremental senior secured covenant-lite term loan B (B2/B) due April 2025 at Libor plus 375 bps to 400 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

Commitments are due at 5 p.m. ET on Oct. 17, the source said.

Morgan Stanley Senior Funding Inc., BofA Securities, Inc., Barclays, Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC, Macquarie Capital (USA) Inc., BMO Capital Markets Corp. and Nomura Securities International Inc. are leading the deal that will be used to repay revolver borrowings, finance acquisitions under letters of intent and fund a distribution to shareholders.

HUB is a Chicago-based insurance brokerage.

Ontic guidance

Ontic came out with price talk on its first- and second-lien term loans with its morning bank meeting, a market source remarked.

Talk on the $475 million seven-year covenant-lite first-lien term loan B (B2/B-) and $75 million covenant-lite delayed-draw first-lien term loan B (B2/B-) is Libor plus 475 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months. Delayed-draw term loan availability is for 12 months post-closing subject to first-lien net leverage being no greater than the ratio at closing and there is a delayed-draw ticking fee of half the spread for days 31 to 90 and the full spread onwards.

As for the $175 million eight-year covenant-lite second-lien term loan (Caa2/CCC), talk is Libor plus 825 bps to 850 bps with a 0% Libor floor, a discount of 98 and hard call protection of 102 in year one and 101 in year two, the source continued.

The company’s $810 million of credit facilities also include an $85 million five-year revolver (B2/B-).

Ontic being acquired

Ontic’s credit facilities will be used to help fund its buyout by CVC Fund VII from BBA Aviation plc for an enterprise value of $1.365 billion.

Nomura Securities, Barclays and Macquarie Capital (USA) Inc. are leading the debt.

Commitments are due at noon ET on Oct. 23, the source added.

Closing is expected during the week of Oct. 28.

Ontic is a provider of high-quality, OEM-licensed parts and MRO services largely for legacy aerospace & defense platforms.

United Pacific on deck

United Pacific set a bank meeting for 10 a.m. ET in New York on Wednesday to launch a $450 million first-lien term loan B, which includes a $100 million delayed-draw piece, according to a market source.

Goldman Sachs Bank USA is leading the deal.

United Pacific is a California-based operator of 415 gas stations and convenience stores throughout Southern and Northern California, Washington, Oregon, Colorado and Nevada.

Delek allocates

In other news, Delek US Holdings Inc. allocated late Thursday afternoon its fungible $150 million add-on covenant-lite term loan B due March 30, 2025 at an original issue discount of 98.79, a market source said, adding that trading levels on the loan are expected to emerge on Friday morning.

Pricing on the add-on term loan is Libor plus 225 bps with a 0% Libor floor, and the debt has 101 soft call protection for six months.

Wells Fargo Securities LLC is leading the deal that will be used to add cash to the balance sheet for future investment in gathering and processing assets.

The company’s existing term loan B is sized at $938 million.

Delek is a Brentwood, Tenn.-based Permian-based integrated downstream energy company.

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