Nascar, AmWINS break; Refinitiv strengthens; Ineos changes emerge; Knowlton revises deadline

By Sara Rosenberg

New York, July 26 – Nascar Holdings Inc.’s term loan began trading on Friday, with levels quoted above its original issue discount, and AmWINS Group LLC’s incremental first-lien term loan freed up after the original issue discount was tightened.

Also in the secondary market, Refinitiv’s term loan headed higher with rumors of a potential combination with the London Stock Exchange Group.

In more happenings, Ineos Enterprises shifted some funds between its term loans, raised pricing on its U.S. and euro term B tranches and set the issue price at the wide end of guidance, increased the Libor floor on the U.S. piece and made a number of changes to documentation.

Furthermore, Knowlton Development Corp. accelerated the commitment deadline for its incremental first-lien term loan, and WestJet Airlines Ltd. joined the near-term primary calendar.

Nascar hits secondary

Nascar’s $1.41 billion seven-year first-lien term loan (Ba2/BB) broke for trading on Friday, with levels quoted at par bid, par ˝ offered, according to a trader.

Pricing on the term loan is Libor plus 275 basis points with a 25 bps step-down when first-lien net leverage is 3.5x and a 0% Libor floor. The debt was sold at an original issue discount of 99.5, and has 101 soft call protection for six months and a ticking fee of half the margin for days 46 through 90 and the full margin thereafter.

During syndication, pricing on the term loan was reduced from talk in the range of Libor plus 300 bps to 325 bps, the step-down was added and the discount was revised from 99.

Goldman Sachs Bank USA, BofA Securities Inc. and PNC Capital Markets are leading the deal that will be used to help fund the acquisition of International Speedway Corp. for $45 in cash per share, or about $2 billion.

Closing is expected this year, subject to International Speedway shareholder approval and customary conditions.

Nascar is a Daytona Beach, Fla.-based sports sanctioning body and provider of news, statistics and information services on races, drivers, teams and industry events. International Speedway is a Daytona Beach, Fla.-based promoter of motorsports activities.

AmWINS tweaked, trades

AmWINS modified the original issue discount on its fungible $250 million incremental first-lien term loan (B1/B+) due January 2024 to 99.5 from 99.05, according to a market source.

The incremental term loan is priced at Libor plus 275 bps with a 1% Libor floor, and has 101 soft call protection for six months.

Recommitments were due at noon ET on Friday and the loan freed to trade later in the day, with levels quoted at 99 7/8 bid, par 3/8 offered, another source added.

Goldman Sachs Bank USA, Barclays, Morgan Stanley Senior Funding Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC are leading the deal that will be used for general corporate purposes, which will include acquisitions currently under letters of intent.

Closing is expected during the week of July 29.

AmWINS is a Charlotte, N.C.-based specialty insurance broker.

Refinitiv gains ground

Also in trading, Refinitiv’s term loan was stronger with chatter that the company may enter into a deal to combine with the London Stock Exchange Group, a trader remarked.

The term loan was quoted at 99 1/8 bid, 99 5/8 offered in the late afternoon on Friday, up from 98˝ bid, 98 7/8 offered on Thursday, the trader added,

Refinitiv is a data and financial technology platform. London Stock Exchange Group is a financial markets infrastructure business.

Ineos reworked

Back in the primary market, Ineos trimmed its U.S. dollar seven-year term loan B to $450 million from €525 million equivalent, lifted its euro seven-year term loan B to €580 million from €525 million and raised its five-year term loan A to €420 million equivalent from €350 million equivalent, according to a market source.

Furthermore, the company lifted pricing on its U.S. and euro term loan B’s to Libor/Euribor plus 400 bps from talk in the range of Libor/Euribor plus 325 bps to 350 bps, and firmed the original issue discount at 99, the wide end of the 99 to 99.5 talk, the source said.

Also, the Libor floor on the U.S. term loan was changed to 1% from 0%, while the floor on the euro term loan remained at 0%.

The term loans have 101 soft call protection for six months.

Ineos documentation changes

Along with size and pricing revisions, Ineos revised documentation for its credit facilities (Ba3/BB). The MFN was set at 50bps with a 24 months sunset and no carve-outs, the restricted payments provision was tightened, the “no worse” limb from acquisition/acquired debt was deleted, the excess cash flow sweep step-downs thresholds were tightened, the ticking fee holiday construct was modified and the cap on cost savings EBITDA add-backs was reduced, the source continued.

Barclays, BNP Paribas and NatWest Markets are leading the deal, which will be used to finance acquisitions, refinance existing debt and pay transaction expenses.

Final commitments were due at the close of business on Friday and allocations are targeted for Monday, the source added.

Ineos is a London-based producer of intermediate chemicals.

Knowlton accelerated

Knowlton Development moved up the commitment deadline for its fungible $85 million incremental first-lien term loan due Dec. 21, 2025 to 5 p.m. ET on Monday from Tuesday, a market source said.

Pricing on the incremental term loan is Libor plus 425 bps with a 0% Libor floor, and the debt is talked with an original issue discount of 99.5.

Jefferies LLC is the left lead on the deal that will be used to fund an acquisition.

Knowlton Development is a Quebec-based custom formulator and solution services partner to beauty, personal care and home/industrial care companies.

WestJet on deck

WestJet Airlines set a bank meeting for 10 a.m. ET on Monday to launch $2,305,000,000 of credit facilities, according to a market source.

The facilities consist of a $350 million revolver and a $1,955,000,000 seven-year first-lien term loan, the source said.

Barclays, Morgan Stanley Senior Funding Inc., RBC Capital Markets, Citigroup Global Markets Inc., UBS Investment Bank, BMO Capital Markets, Bank of Nova Scotia and TD Securities (USA) LLC are leading the debt that will be used with equity to fund the buyout of the company by Onex Corp. for C$31.00 per share. The transaction is valued at about C$5 billion, including assumed debt.

Closing is expected in the latter part of 2019 or early 2020, subject to court and shareholder approval, and regulatory approvals.

WestJet is a Calgary, Alta.-based airline company.

Veritext allocates

In other news, Veritext Corp. allocated its fungible $50 million add-on term loan, a market source remarked.

The add-on term is priced at Libor plus 375 bps with a 0% Libor floor and was sold at an original issue discount of 99.75. The debt has 101 soft call protection for six months.

During syndication, the discount on the term loan was tightened from 99.5.

BNP Paribas Securities Corp. is leading the deal that will be used to repay revolving credit facility borrowings.

Veritext is a Livingston, N.J.-based provider of deposition and litigation support solutions for law firms and corporations.

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