Halyard Health, Omnitracs set issue prices, break; Flavors Holdings modifies term loans

By Sara Rosenberg

New York, Oct. 2 – Halyard Health Inc. finalized the original issue discount on its term loan B at the wide end of guidance and then freed up for trading on Thursday, and Omnitracs LLC also firmed issue prices before its add-on debt surfaced in the secondary.

In more happenings, Flavors Holdings Inc. reduced the sizes of its first- and second-lien term loans, widened spreads and original issue discounts on the tranches and sweetened the second-lien call protection, while Styrolution and Sutherland Global Services Inc. joined the near-term calendar.

Halyard Health set the original issue discount on its $390 million seven-year senior secured term loan B at 99, the high end of the 99 to 99½ talk, according to a market source.

The term loan B is priced at Libor plus 325 basis points with a 0.75% Libor floor, and has 101 soft call protection for one year as well as a ticking fee of the full spread after 30 days.

Recently, the spread on the B loan was cut from Libor plus 350 bps, and the ticking fee was changed from half the spread from days 31 to 60 and the full spread thereafter.

With final terms in place, the term loan B made its way into the secondary market, and levels were seen at 99¾ bid, par ¼ offered, a trader remarked.

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