Greatbatch frees to trade, Sylvamo firms pricing; Reedy, LendingTree ready allocations

By Sara Rosenberg

New York, Aug. 20 – Greatbatch Ltd. (Integer) saw its term loan B make its way into the secondary market on Friday, and trading levels were quoted above the original issue discount.

Meanwhile, in the primary market, Sylvamo Corp. finalized the spread on its term loan B at the high end of revised guidance, and Reedy Industries and LendingTree are planning on allocating their loan transactions within the next few days.

Greatbatch hits secondary

Greatbatch’s $350 million seven-year senior secured covenant-lite term loan B (Ba3/BB-) freed to trade on Friday, with levels quoted at 99¾ bid, par ¼ offered, according to a market source.

Pricing on the term loan is Libor plus 250 basis points with a 0.5% Libor floor, and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months.

During syndication, pricing on the term loan firmed at the low end of the Libor plus 250 bps to 275 bps talk and the discount finalized at the tight end of the 99 to 99.5 talk.

Wells Fargo Securities LLC, BofA Securities Inc., Fifth Third, KeyBanc Capital Markets, Citigroup Global Markets Inc. and Santander are leading the deal that will be used to refinance existing debt.

Greatbatch is a Plano, Tex.-based medical device company.

Sylvamo updated

Moving to the primary market, Sylvamo set pricing on its $450 million seven-year term loan B at Libor plus 450 bps, the wide end of revised talk of Libor plus 425 bps to 450 bps and up from initial talk in the range of Libor plus 275 bps to 300 bps, a market source remarked.

As before, the term loan has a 0.5% Libor floor, an original issue discount of 99 and 101 soft call protection for one year.

Previously in syndication, the term loan was downsized from $500 million, the discount firmed at the wide end of the 99 to 99.5 talk and the call protection was extended from six months.

BofA Securities Inc. is leading the deal that will be used with $450 million of senior notes, downsized recently from $500 million, to help fund the spinoff of the company from International Paper.

Sylvamo is a Memphis-based printing papers company.

Reedy readies allocations

Reedy Industries’ $325 million seven-year covenant-lite first-lien term loan (B2/B-) and $76 million delayed-draw first-lien term loan (B2/B-) are oversubscribed, and the expectation is that the debt will allocate early in the Aug. 23 week, most likely on Tuesday, market sources said.

Talk on the term loan debt is Libor plus 450 bps with a 0.75% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months.

The company’s $575.5 million of credit facilities also include a $65 million revolver (B2/B-) and a $109.5 million pre-placed second-lien term loan, of which $16 million is a delayed-draw tranche.

Truist, Antares Capital, Ares and Blackstone are leading the deal that will be used to help fund the buyout of the company by Partners Group from Audax Private Equity.

Closing is expected in the third quarter.

Reedy Industries is a Deerfield, Ill.-based provider of commercial heating, ventilation and air conditioning services.

LendingTree sees demand

LendingTree’s $250 million term loan is “well in hand” and allocations are targeted for early in the Aug. 23 week, likely on Tuesday, a market source remarked.

Talk on the term loan is Libor plus 400 bps with a 0.75% Libor floor and an original issue discount of 99.

The company’s $450 million of credit facilities (Ba3/BB-) also include a $200 million revolver.

Truist is leading the deal that will be used to refinance existing debt and for general corporate purposes.

LendingTree is a Charlotte, N.C.-based online lending marketplace.

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