Sedgwick finalizes add-on terms; outflows moderate; Grocery Outlet, Eco Services on tap next week

By Paul A. Harris

Portland, Ore., Sept. 26 – The LCDX 22 index of bank loan credit default swaps finished the Friday session unchanged at 103¼ bid, 103¾ offered.

Earlier in the session, there was heaviness, according to a bank loan trader working on the East Coast of the United States.

The Burger King Worldwide Inc. Libor plus 350 basis points covenant-light term loan B was 99 3/8 bid, 99 5/8 offered, off a quarter to three-eighths of a point from Thursday's highs of 99¾ bid, par ¼ offered.

That was a function of the whole market being down, the trader said.

The $6.75 billion priced at 99 earlier in the week.

The trader expects new issues to slow down over the next couple of weeks due to a heavy primary market and outflows.

However, outflows moderated over the past week, the trader said.

Dedicated bank loan funds saw $383 million of outflows for the week to Wednesday, the smallest in a five-week succession of outflows, the trader said.

In the new issue market, plans were disclosed for rolling out deals from Grocery Outlet, Inc. and Eco Services Operations LLC in the week ahead.

Sedgwick finalizes

Sedgwick Inc. finalized terms on its $190 million Libor plus 500 basis points add-on second-lien term loan (Caa2/CCC+) at 97.5, in line with price talk.

Both the add-on and the existing loan will get call protection of 102 for one year and 101 for the following year.

UBS Securities LLC, KKR Capital Markets and MCS Capital Markets are the joint bookrunners on the deal.

Proceeds will be used to fund an acquisition.

Sedgwick is a Memphis, Tenn.-based provider of technology-enabled claims and productivity management services.

Grocery Outlet bank meeting

A bank meeting is set to take on Tuesday for Grocery Outlet's $725 million of credit facilities, according to a market source.

Morgan Stanley and Deutsche Bank are the arrangers.

The deal includes a $75 million revolver, a $440 million first-lien credit facility and a $210 million second-lien credit facility.

The borrower is an Emeryville, Calif.-based grocery store operator.

Eco Services lender call

Eco Services Operations will take part in a lender call on Monday to confer about its proposed $500 million senior secured term loan (B1//), according to a market source.

Talk has the deal coming at Libor plus 400 basis points with a 1% Libor floor at 99.

Credit Suisse Securities (USA) LLC is the lead.

Proceeds from the loan, along with proceeds from a $200 million offering of senior notes and an equity contribution from private equity sponsor CCMP Capital Advisors, will be used to fund the purchase of Solvay SA's sulfuric acid business for $890 million.

Eco Services is a Cranbury, N.J.-based chemical company.

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