Four Seasons, Greystar, Lummus break; UKG, Ineos, TransUnion, Garda, Kohler, Husky tweaked

By Sara Rosenberg

New York, Jan. 30 – Four Seasons Hotels Ltd. set the spread on its first-lien term loan B at the high end of talk and Greystar Real Estate Partners changed the issue price on its add-on term loan, and then these deals freed to trade on Tuesday, and Lummus Technology Holdings V LLC’s first-lien term loan broke as well.

In more happenings, UKG Inc. upsized its first-lien term loan B, firmed pricing at the low end of guidance and tightened the original issue discount, Ineos Group Holdings updated price talk on U.S. and euro term loans and changed the minimum size of the euro tranche, and TransUnion LLC widened the issue price on its term loan B-6.

Also, Garda World Security Corp. raised the size of its add-on term loan and finalized the original issue discount at the tight end of guidance, and Kohler Energy (Discovery Energy Holding Corp.) downsized its U.S. term loan B and firmed the issue price on the U.S. and euro loans at the tight side of revised talk.

Additionally, Husky Injection Molding Systems Ltd. increased its first-lien debt plans and accelerated the commitment deadline on its term loan B, Banijay modified price talk on its euro term loan B, Consolidated Energy Finance SA released price talk with launch, and Gray Television Inc. joined this week’s primary calendar.

Four Seasons updated, frees

Four Seasons Hotels firmed pricing on its $841.5 million senior secured covenant-lite first-lien term loan B (Ba3/BBB-) due Nov. 30, 2029 at SOFR plus 200 bps, the wide end of the SOFR plus 175 bps to 200 bps talk, according to a market source.

As before, the term loan has a 0.5% floor, a par issue price, 101 soft call protection for six months and 0 bps CSA.

Commitments continued to be due at noon ET on Tuesday and the term loan began trading late in the day, with levels quoted at par bid, par ¼ offered, a trader added.

Morgan Stanley Senior Funding Inc. is the bookrunner on the deal. Citigroup Global Markets Inc. is the administrative agent.

The term loan will be used to reprice an existing term loan B due November 2029 down from SOFR+10 bps CSA plus 250 bps with a 0.5% floor.

Closing is expected in late February.

Four Seasons is a Toronto-based luxury hotels company.

Greystar tightened, trades

Greystar Real Estate Partners adjusted the issue price on its fungible $45 million add-on term loan due August 2030 to par from 99.75, a market source remarked.

Pricing on the add-on term loan, as well as on the company’s $449 million repriced term loan due August 2030, remained at SOFR plus 325 bps with a 0.5% floor and the debt still has 101 soft call protection for six months. The par issue price on the repriced term loan was unchanged.

During the session, the total $494 million term loan freed to trade, with levels quoted at par bid, par 3/8 offered, a trader added.

JPMorgan Chase Bank is leading the deal.

The add-on term loan will be used for general corporate purposes, including to fund a potential acquisition, and the repricing will take the company’s existing term loan down from SOFR plus 375 bps with a 0.5% floor.

Greystar is a Charleston, S.C.-based real estate company.

Lummus tops OID

Lummus Technology’s roughly $1 billion first-lien term loan due December 2029 began trading too, with levels quoted at 99 5/8 bid, par offered, according to a market source.

Pricing on the term loan is SOFR+CSA plus 350 bps with a 0% floor and it was sold at an original issue discount of 99.5. CSA is 11 bps one-month rate, 26 bps three-month rate and 42 bps six-month rate. The debt has 101 soft call protection for six months.

UBS Investment Bank is the left lead on the deal that will be used to extend an existing term loan by 2.5 years.

The company is also extending its existing revolver and letter-of-credit facility by 2.5 years to December 2027.

Lummus is a provider of process licenses, engineering services, catalysts and equipment for polymers & petrochemicals, services & supplies, clean fuels and crude-to-chemical, and new ventures.

UKG reworked

UKG lifted its seven-year covenant-lite first-lien term loan B to $5.385 billion from $4.885 billion, set pricing at SOFR plus 350 bps, the low end of the SOFR plus 350 bps to 375 bps talk, and changed the original issue discount to 99.875 from 99.5, a market source said.

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

The company’s now $6.33 billion of credit facilities (B2/B-/BB) also include a $945 million five-year revolver.

Recommitments were due at 5 p.m. ET on Tuesday and allocations are expected on Wednesday morning, the source added.

UKG lead banks

Nomura, JPMorgan Chase Bank, BNP Paribas Securities Corp., Citigroup Global Markets Inc., Goldman Sachs Bank USA, BofA Securities Inc., UBS Investment Bank, RBC Capital Markets, Wells Fargo Securities LLC, Deutsche Bank Securities Inc., Jefferies LLC, SMBC, Macquarie Capital (USA) Inc., TD Securities (USA) LLC, Truist Securities and Blackstone are leading UKG’s credit facilities.

The credit facilities will be used with $2.5 billion of senior secured notes to refinance existing first-lien term loans, pay down a revolver draw, fund cash to the balance sheet, and pay fees and expenses, and the funds from the term loan upsizing will be used to partially refinance an existing $1.45 billion second-lien term loan.

UKG is a provider of human capital management solutions based in Weston, Fla., and Lowell, Mass.

Ineos updated

Ineos Group changed price talk on its minimum $500 million seven-year term loan B to SOFR plus 375 bps from talk in the range of SOFR plus 375 bps to 400 bps, revised its euro seven-year term loan B to a minimum size of €400 million from a minimum size of €300 million, and modified price talk on the euro loan to Euribor plus 400 bps from talk in the range of Euribor plus 400 bps to 425 bps, a market source remarked.

Both term loans still have a 0% floor, an original issue discount of 99 and 101 soft call protection for six months.

The company plans to raise minimum €2.1 billion equivalent, up from €2 billion equivalent, across the U.S. and euro term loan Bs and five-year senior secured notes.

The notes include a minimum $600 million tranche, increased from minimum $500 million, and a minimum €700 million tranche, increased from minimum €400 million.

Ineos deadline

Commitments for Ineos’ term loans are due at 9:30 a.m. ET on Wednesday, the source added. The original commitment deadline had been noon ET on Tuesday.

Barclays is the physical bookrunner on the U.S. term loan and a joint global coordinator. Barclays, Deutsche Bank and Santander are joint physical bookrunners on the euro term loan and joint global coordinators. Credit Agricole, Goldman Sachs and JPMorgan Chase Bank are joint global coordinators. ABN Amro, Commerzbank, ING, Intesa, KBC, Lloyds and NatWest are mandated lead arrangers. Barclays is the agent.

The new debt will be used to refinance part of the company’s 2025 and 2026 maturities, for acquisition financing and to add cash to the balance sheet to prefund Project One, and, due to the upsizings, to tender for additional bonds.

Ineos is a chemical company.

Transunion widened

TransUnion revised the original issue discount on its $1.888 billion term loan B-6 due December 2028 to 99.75 from par, according to a market source.

Pricing on the term loan remained at SOFR plus 200 bps with a 0.5% floor, and the debt still has 101 soft call protection for six months.

JPMorgan Chase Bank is leading the deal. Deutsche Bank Securities Inc. is the administrative agent.

The term loan will be used to reprice an existing term loan down from SOFR+ARRC CSA plus 225 bps with a 0.5% floor.

TransUnion is a Chicago-based information and insights company.

Garda revised

Garda World Security increased its fungible add-on term loan due 2029 to $1.638 billion from $1.438 billion and firmed the original issue discount at 99.75, the tight end of the 99.5 to 99.75 talk, a market source said.

Pricing on the add-on term loan is SOFR plus 425 bps with a 0% floor, in line with existing 2029 term loan pricing, and all of the debt is getting 101 soft call protection for six months.

Recommitments were due at noon ET on Tuesday, the source added.

JPMorgan Chase Bank is leading the deal that will be used to refinance an existing term loan B due 2026 priced at SOFR+10 bps CSA plus 425 bps with a 0% floor and, due to the upsizing, for general corporate purposes.

Garda is a Montreal-based provider of cash logistics and security solutions.

Kohler Energy updated

Kohler Energy trimmed its U.S. seven-year term loan B (B1/B) to $1.265 billion from $1.275 billion, and firmed the original issue discount on the U.S. loan, as well as on its €350 million seven-year term loan B (B1/B) at 97, the tight end of revised talk of 96.5 to 97 but wider than initial talk of 98, according to a market source.

Pricing on the term loans is SOFR/Euribor plus 475 bps with a 0% floor, and the debt has 101 hard call protection for one year, and ticking fees of half the margin from days 46 to 90 and the full margin thereafter.

Earlier in syndication, the total amount of term loan debt was revised from initial talk of roughly $1.625 billion equivalent, pricing was raised from talk in the range of SOFR/Euribor plus 375 bps to 400 bps, the call protection was changed from a 101 soft call for six months, and some changes were made to documentation.

BofA Securities Inc., Goldman Sachs, BMO Capital Markets, Deutsche Bank Securities Inc., HSBC Securities, Mizuho, Nomura, Santander, Stifel and UBS Investment Bank are leading the deal that will be used to help fund the acquisition of a majority stake in Kohler Co.’s energy division by Platinum Equity. Kohler will continue to stay invested in the energy business following completion of the transaction.

Closing is expected in the first half of this year.

Kohler Energy is a provider of mission critical power solutions to homes, businesses and equipment.

Husky tweaked

Husky Injection Molding Systems raised its first-lien debt plans by $150 million and, as a result, its final five-year covenant-lite term loan B size, which was originally $1.3 billion, is now to be determined, and its final secured notes size, which was originally $1.3 billion, is now to be determined, a market source remarked.

Furthermore, the commitment deadline for the term loan was moved up to noon ET on Wednesday from 5 p.m. ET on Wednesday, the source added.

Talk on the term loan (B3/B-) remained at SOFR plus 525 bps with a 0% floor, an original issue discount of 98 and 101 soft call protection for six months.

Deutsche Bank Securities Inc., BofA Securities Inc. and others to be announced are leading the term loan that will be used with the bonds and new preferred equity to refinance the company’s existing capital structure, including senior notes due 2026, senior PIK notes due 2025 and credit facilities borrowings, and to pay fees and expenses. The equity component was reduced by $150 million due to the upsizing of the first-lien debt.

Husky is a Bolton, Ont.-based provider of engineered tooling, services and systems primarily to the food and beverage packaging and medical end markets.

Banijay modified

Banijay changed price talk on its €555 million covenant-lite term loan B due March 2028 to a range of Euribor plus 375 bps to 400 bps from just Euribor plus 400 bps and firmed the issue price at par, the tight end of the 99.75 to par talk, while leaving the 0% floor unchanged, according to a market source.

Price talk on the company’s $555.8 million covenant-lite term loan B due March 2028 remained at SOFR plus 325 bps with a 0% floor and an original issue discount of 99.75 to par.

The term loans (B1/B+/BB-) still have 101 soft call protection for six months.

Commitments continued to be due at 5 p.m. ET on Tuesday for the U.S. term loan and at noon ET on Tuesday for the euro term loan, the source added.

BNP Paribas Securities Corp. is the left lead/sole physical bookrunner on the deal. Credit Agricole, Deutsche Bank Securities Inc., Goldman Sachs, Natixis and Societe Generale are passive bookrunners. U.S. Bank is the agent.

The loans will be used to reprice an existing U.S. term loan due March 2028 down from SOFR plus 375 bps and an existing euro term loan due March 2028 down from Euribor plus 450 bps.

Banijay is a Paris-based independent content production company.

Consolidated Energy guidance

Consolidated Energy held its lender call on Tuesday morning and announced talk on its $745 million senior secured 6.75-year first-lien term loan B (Ba3/BB-/BB+) at SOFR plus 425 bps to 450 bps with a 0% floor, an original issue discount of 98 and 101 soft call protection for six months, a market source remarked.

Commitments are due at noon ET on Feb. 7, the source added.

Morgan Stanley Senior Funding Inc., Santander, ADCB and SMBC are leading the deal that will be used with $580 million of senior notes to refinance bridge facilities used in part to finance an acquisition of a majority stake in OMC, to refinance an existing term loan B due 2025, to reduce debt at Proman AG and for general corporate purposes.

Consolidated Energy is an acquirer and developer of companies that focus on alternative waste management and energy production.

Gray Television on deck

Gray Television set a lender call for 11 a.m. ET on Wednesday to launch a $1.19 billion covenant-lite first-lien term loan F (BB) due July 1, 2029, according to a market source.

The term loan has 101 soft call protection for six months.

Commitments are due at noon ET on Feb. 9, the source added.

Wells Fargo Securities LLC is the left lead on the deal that will be used with a modest revolver draw to fully refinance the company’s existing term loan E due Jan. 2, 2026.

The company plans to amend its $500 million revolver to extend the maturity to December 2027 from January 2026.

Gray Television is an Atlanta-based broadcast company.

Fund flows

In other news, actively managed loan fund flows on Monday were positive $6 million and loan ETFs were negative $37 million, market sources said.

Inflows for loan funds week-to-date total an estimated $135 million, compared to inflows in the prior week of $213 million, sources added.

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