AZZ, Chemours, Cushman & Wakefield, OpenText, NorthRiver, Barnes, Installed Building break

By Sara Rosenberg

New York, Aug. 10 – AZZ Inc. finalized the spread on its term loan B at the low end of talk, Chemours Co. moved some funds between its U.S. and euro term loans and firmed pricing at the high end of guidance, and Cushman & Wakefield tightened the original issue discount on its term loan B for a second time, and then these deals freed to trade on Thursday.

Other deals to make their way into the secondary market during the session included OpenText Corp., NorthRiver Midstream Finance LP, Barnes Group Inc. and Installed Building Products Inc.

In more happenings, Advisor Group Holdings Inc. increased the size of its first-lien term loan and revised the original issue discount, and Convergint Technologies upsized its add-on first-lien term loan and adjusted the issue price.

Also, Tronox raised the size of its incremental term loan B and set the original issue discount at the tight end of guidance, Consilio lowered the spread on its incremental first-lien term loan and tightened the original issue discount, and AppLovin Corp. and PlayCore released price talk on their term loans in connection with lender calls.

AZZ sets spread, frees

AZZ firmed pricing on its $1.03 billion senior secured covenant-lite term loan B (Ba3/B) due May 13, 2029 at SOFR plus 375 basis points, the low end of the SOFR plus 375 bps to 400 bps talk, according to a market source.

The term loan still has a 0.5% floor, a par issue price, 101 soft call protection for six months and no CSA.

On Thursday, the term loan broke for trading, with levels quoted at par 1/8 bid, par ½ offered, another source added.

Citigroup Global Markets Inc., Wells Fargo Securities LLC, Barclays, U.S. Bank and CIBC are leading the deal that will be used to reprice an existing term loan B down from SOFR plus 425 bps with a 0.5% floor.

Closing is expected in late August.

AZZ is a Fort Worth, Tex.-based provider of hot-dip galvanizing and coil coating solutions.

Chemours updated, trades

Chemours increased its U.S. five-year term loan B to $1.07 billion from $960 million and set pricing at SOFR plus 350 bps, the high end of the SOFR plus 325 bps to 350 bps talk, and decreased its euro five-year term loan B to €415 million from €515 million and firmed pricing at Euribor plus 400 bps, the high end of the Euribor plus 375 bps to 400 bps talk, a market source remarked.

The U.S. term loan still has a 0.5% floor, the euro term loan still has 0% floor, and both term loans (Ba1/BBB-) still have an original issue discount of 98.5 and have 101 soft call protection for six months.

Recommitments for the U.S. term loan were due at 10 a.m. ET on Thursday and recommitments for the euro term loan were due at 8 a.m. ET on Thursday, and the U.S. term loan freed up later in the day, with levels quoted at 98½ bid, 98 7/8 offered, another source added.

JPMorgan Chase Bank is the left lead on the deal that will be used to refinance existing U.S. and euro term loans due 2025, to pre-fund a legal settlement and for general corporate purposes.

Chemours is a Wilmington, Del.-based provider of performance chemicals.

Cushman tightened, breaks

Cushman & Wakefield changed the original issue discount on its $1 billion term loan B due Jan. 31, 2030 to 97.5 from revised talk of 97 and initial talk of 96, according to a market source.

Pricing on the term loan is SOFR plus 400 bps with a 0.5% floor.

Earlier syndication, the term loan was upsized from $700 million and pricing was reduced from SOFR plus 425 bps.

During the session, the term loan began trading, with levels quoted at 98¼ bid, 98¾ offered, another source added.

JPMorgan Chase Bank is leading the deal that will be used with $400 million of senior secured notes, downsized from $500 million when the term loan was upsized, to refinance a portion of the company’s existing $1.593 billion senior secured term loan B due Aug. 21, 2025.

In advance of the 2025 maturity, the company expects to repay the remaining $193 million of term loan debt using on-hand cash and cash equivalents.

Cushman & Wakefield is a Chicago-based commercial real estate services company.

OpenText frees up

Another deal to make its way into the secondary market was OpenText’s $3.567 billion senior secured term loan B (Ba1/BBB-/BBB-) due Jan. 31, 2030, with levels quoted at par bid, par ¼ offered, a market source said.

Pricing on the term loan is SOFR+10 bps CSA plus 275 bps with a 0.5% floor and it was issued at par. The debt has 101 soft call protection for six months.

Barclays and BofA Securities Inc. are leading the deal that will be used to reprice an existing term loan B due January 2030 down from SOFR+10 bps CSA plus 350 bps with a 0.5% floor.

OpenText is a Waterloo, Ont.-based provider of enterprise information management, helping companies securely capture, govern and exchange information.

NorthRiver hits secondary

NorthRiver Midstream Finance’s $850 million seven-year covenant-lite first-lien term loan B (Ba3/BB) freed to trade as well, with levels quoted at 99 3/8 bid, 99 7/8 offered on the break and then it moved up to 99¾ bid, par 1/8 offered, according to a trader.

Pricing on the term loan is SOFR plus 300 bps with a 0% floor and it was sold at an original issue discount of 99. The debt has 101 soft call protection for six months.

During syndication, pricing on the term loan was lowered from talk in the range of SOFR plus 325 bps to 350 bps and the discount firmed at the tight end of the 98.5 to 99 talk.

BMO Capital Markets, RBC Capital Markets, CIBC, Bank of Nova Scotia, Credit Suisse Securities (USA) LLC and HSBC Securities (USA) Inc. are leading the deal. RBC is the agent.

Proceeds will be used with revolver borrowings to refinance an existing term loan due October 2025.

Brookfield Infrastructure is the sponsor.

NorthRiver Midstream is a Canadian gas gathering and processing business.

Barnes starts trading

Barnes Group’s $650 million seven-year term loan B (Ba3/BB) surfaced in the secondary market too, with levels quoted at 99¾ bid, par ¼ offered, a market source remarked.

Pricing on the term loan is SOFR+10 bps CSA plus 300 bps with a 0% floor and it was sold at an original issue discount of 99.25. The loan has 101 soft call protection for six months.

During syndication, the term loan was upsized from $600 million, pricing was cut from SOFR plus 350 bps and the discount was revised from talk in the range of 98.5 to 99.

BofA Securities Inc., Citizens Bank, JPMorgan Chase Bank, Wells Fargo Securities LLC, PNC Capital Markets, TD Securities (USA) LLC, Truist Securities, HSBC Securities (USA) Inc. and US Bank are leading the deal that will be used to help fund the acquisition of MB Aerospace for about $740 million, for working capital, for capital expenditures and for other general corporate purposes.

Closing is expected in the fourth quarter, subject to regulatory approvals and other customary conditions.

Barnes is a Bristol, Conn.-based developer of advanced processes, automation solutions and applied technologies. MB Aerospace is a Motherwell, U.K.-based provider of precision aero-engine component manufacturing and repair services.

Installed Building breaks

Installed Building Products’ $492.5 million term loan B (Ba2/BB+) due Dec. 14, 2028 freed up in the afternoon, with levels quoted at par bid, par ¼ offered, according to a trader.

Pricing on the term loan is SOFR+CSA plus 200 bps with a 0.5% floor and it was issued at par. CSA is ARRC standard of 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate. The term loan has 101 soft call protection for six months.

During syndication, the CSA was added to the term loan.

RBC Capital Markets is the left lead on the deal that will be used to reprice an existing $492.5 million term loan B due Dec. 14, 2028 down from SOFR+ ARRC CSA plus 225 bps with a 0.5% floor.

Installed Building Products is a Columbus, Ohio-based installer of insulation and complementary building products.

Advisor reworked

Advisor Group lifted its first-lien term loan due August 2028 to $1,747,500,000 from $1,647,500,000, changed the original issue discount to 99 from 98.5 and added Serta protection, a market source said.

As before, the term loan is priced at SOFR plus 450 bps with a 0% floor, and has 101 soft call protection for six months.

Commitments were due at noon ET on Thursday, the source added.

UBS Investment Bank, BMO Capital Markets, BofA Securities Inc., Goldman Sachs Bank USA, Barclays, Deutsche Bank Securities Inc., Truist, Morgan Stanley Senior Funding Inc., Jefferies LLC and Wells Fargo Securities LLC are leading the deal that will be used to extend a $1,447,500,000 first-lien term loan from August 2026 and the $300 million of fungible term loan debt raised, increased from $200 million, will provide cash to the balance sheet for general corporate purposes, including mergers and acquisitions.

The company is also extending the maturity of somewhere between $631.1 million to $641.1 million of its existing revolver to May 2028, and leaving $72.8 million of non-extended revolver in place, split between a $38.5 million revolver due August 2024 and a $34.3 million revolver due August 2026.

Advisor Group, doing business as Osaic Holdings Inc., is a provider of a multi-custodial, wealth management model for financial advisers.

Convergint tweaked

Convergint Technologies raised its fungible add-on first-lien term loan (B-) due March 2028 to $175 million from $150 million and moved the original issue discount to 99 from talk in the range of 98 to 98.5, according to a market source.

The add-on term loan is priced at SOFR plus 475 bps with a 0.75% floor, and has 101 soft call protection for six months.

Recommitments were due at 11 a.m. ET on Thursday, the source added.

JPMorgan Chase Bank, Credit Suisse Securities (USA) LLC, Mizuho and MUFG are leading the deal. Credit Suisse is the administrative agent.

The term loan will be used to repay revolver borrowings and for general corporate purposes.

Convergint is a Schaumberg, Ill.-based service-based security systems integrator.

Tronox modified

Tronox upsized its incremental term loan B (Ba2/BB) due 2028 to $350 million from $300 million and finalized the original issue discount at 99, the tight end of the 98.5 to 99 talk, a market source remarked.

The incremental term loan is priced at SOFR plus 350 bps with a 0.5% floor, and has 101 soft call protection for six months.

Goldman Sachs Bank USA, HSBC Securities (USA) Inc., BofA Securities Inc., Barclays, BNP Paribas Securities Corp. and Deutsche Bank Securities Inc. are leading the deal. HSBC is the agent.

The incremental term loan will be used to opportunistically repay outstanding revolver borrowings and supplement existing liquidity, with remaining cash to fund capital expenditures and general corporate purposes.

Tronox is a Stamford, Conn.-based producer of titanium bearing mineral sands and titanium dioxide pigment.

Consilio flexed

Consilio cut pricing on its $200 million incremental first-lien term loan (B-) due 2028 to SOFR plus 450 bps from SOFR plus 475 bps and changed the original issue discount to 98 from 97, a market source said.

The term loan still has a 0.5% floor, CSA of 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate, and 101 soft call protection for six months.

Recommitments were due at 2 p.m. ET on Thursday, the source added.

KKR Capital Markets and Stone Point are leading the deal. Blackstone Credit will be a lead investor in the loan.

The term loan will be used to fund the acquisition of Oxo, a provider of legal services.

Consilio is a Washington, D.C.-based provider of eDiscovery and document review solutions.

AppLovin holds call

AppLovin held a lender call at 10:30 a.m. ET on Thursday, launcing a $1.5 billion first-lien term loan B (Ba3) due August 2030 at talk of SOFR plus 310 bps with a 0.5% floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months, according to a market source.

Commitments are due at 5 p.m. ET on Monday, the source added.

JPMorgan Chase Bank, BofA Securities Inc., KKR Capital Markets, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA and Morgan Stanley Senior Funding Inc. are leading the deal. BofA is the administrative agent.

The new debt will be used to help refinance an existing $1.749 billion term loan due 2025.

KKR is the sponsor.

AppLovin is a Palo Alto, Calif.-based provider of marketing software.

PlayCore guidance

PlayCore held its lender call in the morning and announced talk on its $640 million first-lien term loan B (B2/B) due March 2027 at SOFR plus 425 bps to 450 bps with a 1% 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 Aug. 17, the source added.

Goldman Sachs Bank USA is the left lead on the deal that will be used to refinance the company’s existing $396 million first-lien term loan and $145 million second-lien term loan, and to add cash to the balance sheet for mergers and acquisitions.

Court Square Capital Partners is the sponsor.

PlayCore is a Chattanooga, Tenn.-based designer, manufacturer and marketer of commercial playground, park, recreation and specialty equipment and related complementary products.

Michael Baker timing

Michael Baker International LLC set an Aug. 16 commitment deadline for its fungible $125 million incremental first-lien term loan due December 2028, according to a market source.

As previously reported, price talk on the incremental term loan, which launched with a call on Wednesday afternoon, is SOFR plus 500 bps with a 0.75% floor and an original issue discount of 98.8.

UBS Investment Bank is the left lead on the deal that will be used to fund an acquisition and to repay borrowings under the company’s ABL facility.

Pro forma for the transaction, the term loan will total $420.5 million.

Michael Baker is a Pittsburgh-based provider of engineering and consulting services, focused on complex infrastructure challenges.

Fund flows

In other news, actively managed loan fund flows on Wednesday were negative $17 million and loan ETFs were positive $20 million, market sources said.

The tracking estimate for Thursday night’s weekly Lipper numbers for loans are outflows totaling $110 million, sources added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.