Bombardier, Russell break; Banijay Group, Innophos, Agiliti, Arconic, KBR revise deals

By Sara Rosenberg

New York, Feb. 3 – Bombardier Recreational Products Inc. and Russell Investments US Institutional Holdco both saw their term loans free to trade during Monday’s market hours and both pieces of debt were bid in line with their issue prices.

Moving to the primary market, Banijay Group revised the size of its U.S. term loan B and tightened spread and original issue discount talk on the U.S. loan as well as on its euro term loan B, and Innophos Holdings Inc. upsized its seven-year first-lien term loan B and trimmed pricing.

Also, Agiliti tightened the original issue discount on its term loan, Arconic Rolled Products Corp. downsized its term loan B, KBR Inc. reduced the size of its term loan B and firmed the spread at the low end of guidance and Charter NEX US Inc. pulled its incremental first-lien term loan from market.

In addition, Custom Truck One Source (CTOS LLC), Altium Packaging LLC, Avolon, Floor & Decor, StandardAero (Dynasty Acquisition Co. Inc.) and Lonestar II Generation Holdings LLC all released price talk with launch.

Furthermore, Zayo Group Holdings Inc., GVC Holdings, Matador Bidco, Allegiant Travel Co., CCC Information Services (Cypress Intermediate Holdings III Inc.), Tibco Software Inc., Alera Group and Citadel joined this week’s primary calendar.

Bombardier frees up

Bombardier Recreational Products’ $1,219,825,000 term loan B (Ba3/BB) due May 23, 2027 broke for trading on Monday morning after allocating late Friday, and levels were quoted at 99¾ bid, par 1/8 offered, according to a trader.

Pricing on the term loan is Libor plus 200 basis points with a 0% Libor floor, and it was sold at an original issue discount of 99.75. The debt has 101 soft call protection for six months.

During syndication, the spread on the term loan firmed at the high end of the Libor plus 175 bps to 200 bps talk.

RBC Capital Markets, BMO Capital Markets and TD Securities are leading the deal that will be used to amend and extend by two year an existing term loan B, remove U.S. Real Property in flood areas only and upsize the term loan B to repay the term loan B-2.

Closing is expected on Tuesday.

Bombardier Recreational is a Valcourt, Quebec-based designer, manufacturer, distributor and marketer of motorized recreational vehicles and powersports engines.

Russell hits secondary

Russell Investments’ $1.026 billion first-lien term loan B due June 2023 began trading too, with levels quoted at par bid, par 3/8 offered, a trader said.

Pricing on the term loan is Libor plus 275 bps with a 1% Libor floor and it was issued at par. The debt has 101 soft call protection for six months.

During syndication, pricing on the term loan finalized at the high end of the Libor plus 250 bps to 275 bps talk.

Barclays is leading the deal that will be used to reprice an existing term loan B, which is being paid down by about $90 million to $1.026 billion.

Russell is a Seattle-based asset manager.

Banijay modified

Moving to the primary market, Banijay Group trimmed its U.S. five-year covenant-lite term loan B (B1/B/B+) to $460 million from €450 million equivalent, lowered pricing to Libor plus 375 bps from talk in the range of Libor plus 425 bps to 450 bps, removed the margin step-down and changed the original issue discount to 99.75 from 99, according to a market source.

In addition, the company trimmed pricing on its €503 million five-year covenant-lite term loan B (B1/B/B+) to Euribor plus 400 bps from talk in the range of Euribor plus 425 bps to 450 bps and revised original issue discount talk to a range of 99.75 to par from 99.5, the source said.

As before, both term loans have a 0% floor and 101 soft call protection for six months.

Recommitments for the U.S. term loan were due at 4 p.m. ET on Monday and commitments for the euro term loan are due at 6 a.m. ET on Tuesday, the source added. Allocations are expected on Tuesday.

Banijay lead banks

Deutsche Bank, Natixis and Societe Generale are the global coordinators and joint bookrunners on Banijay’s term loans. BNP Paribas and BofA Securities, Inc. are passive bookrunners.

The new loans will be used to help redeem Banijay 2022 notes and repay senior credit facilities, to fund the acquisition of Endemol Shine from The Walt Disney Co. and Apollo Global Management Inc. and repay debt, to refinance the consideration paid for the Bear Grylls acquisitions, and to pay fees and expenses.

Also for the transaction, the company plans on getting $403 million of senior secured notes, revised from €325 million equivalent, €525 million of senior secured notes and €400 million of senior notes.

Banijay is a Paris-based independent production and distribution business.

Innophos sets changes

Innophos raised its seven-year first-lien term loan B to $440 million from $415 million and cut pricing to Libor plus 375 bps from talk in the range of Libor plus 400 bps to 425 bps, a market source said.

The term loan B still has a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

The company’s now $565 million of senior secured credit facilities also include a $125 million five-year asset-based revolver.

Allocations are targeted for Tuesday, the source added.

RBC Capital Markets, KeyBanc Capital Markets and Barclays are leading the deal that will be used to help fund the buyout of the company by One Rock Capital Partners LLC for $32.00 per share, or $944 million.

The company will also fund the buyout with $275 million of senior notes, downsized from $300 million with the term loan upsizing, and $306 million of equity, which is 30% of the capitalization.

Closing is expected this quarter, subject to stockholder and regulatory approvals, and customary conditions.

Innophos is a Cranbury, N.J.-based producer of essential ingredients.

Agiliti tightens

Agiliti adjusted the original issue discount on its $125 million term loan to 99.875 from talk in the range of 99.5 to 99.75, a market source remarked.

Pricing on the term loan is Libor plus 300 bps with a 0% Libor floor.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance existing debt.

Agiliti is a Minneapolis-based provider of health care technology management and service solutions.

Arconic downsizes

Arconic Rolled Products scaled back its seven-year first-lien senior secured term loan B (Ba1/BB+/BBB-) to $600 million from $800 million and lifted its second-lien secured notes to $600 million from $400 million, according to a market source.

Price talk on the term loan B is Libor plus 350 bps with a 0% Libor floor and an original issue discount of 99.

Commitments are due on Tuesday.

J.P. Morgan Securities LLC is the left lead on the deal that will be used to help fund the separation of the company from Arconic Inc.

Other funds for the transaction will come from of, upsized with the term loan downsizing.

Arconic Rolled is an aluminum products company.

KBR reworked

KBR scaled back its term loan B to $520 million from $625 million term loan and set pricing at Libor plus 275 bps, the low end of the Libor plus 275 bps to 300 bps talk, a market source said.

The term loan still has a 0% Libor floor and an original issue discount of 99.5.

BofA Securities Inc. is leading the deal that will be used to refinance existing debt.

KBR is a Houston-based provider of comprehensive solutions for aerospace and defense, energy and chemicals, intel and data science, and federal and civilian markets.

Charter NEX pulled

Charter NEX withdrew from market its $780 million incremental first-lien term loan due May 16, 2025 that was talked at Libor plus 300 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, according to a source.

Jefferies LLC, Nomura and UBS Investment Bank were leading the deal.

The loan was going to be used to refinance an existing first-lien term loan due May 2024 priced at Libor plus 350 bps, and partially repay unsecured PIK toggle notes.

Charter NEX is a manufacturer of highly engineered specialty films, focused on the stable food and medical end-markets.

Custom Truck details

In more primary happenings, Custom Truck One Source held its lender call on Monday and launched to investors a $557 million senior secured covenant-lite term loan B (B+) due April 18, 2025 talked at Libor plus 450 bps with a 0% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months, according to a market source.

Citigroup Global Markets Inc. is leading the deal. Morgan Stanley Senior Funding Inc. is the administrative agent.

The loan will be used to reprice an existing term loan down from Libor plus 550 bps with a 1% Libor floor and extend the maturity by two years.

Commitments from existing lenders are due at 5 p.m. ET on Feb. 10 and commitments from new lenders are due at 5 p.m. ET on Feb. 11, the source added.

Closing is targeted for Feb. 19.

Custom Truck One Source is a Kansas City, Mo.-based provider of specialized truck and heavy equipment solutions.

Altium refinancing

Altium Packaging launched with a 1 p.m. ET call a roughly $830 million first-lien term loan B due June 14, 2026 at talk of Libor plus 250 bps to 275 bps with an original issue discount of 99.75 to par and 101 soft call protection for six months, a market source remarked.

Commitments are due at noon ET on Friday, the source added.

Barclays is leading the deal that will be used to refinance/reprice and consolidate its existing term loan 2024 and 2026 tranches into one new senior secured term loan.

Altium, formerly known as Consolidated Container Co., is an Atlanta-based rigid plastic packaging manufacturer.

Avolon holds call

Avolon held a lender call at 10:30 a.m. ET, launching a $750 million seven-year first-lien term loan B-4 at talk of Libor plus 150 bps with a 0.75% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months, according to a market source.

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

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to partially refinance an existing term loan B-3 to pay related fees and expenses.

Avolon is an Ireland-based provider of aircraft leasing and lease management services.

Floor & Decor guidance

Floor & Decor launched on its morning call a $144.6 million seven-year first-lien term loan talked at Libor plus 225 bps with a step-up to Libor plus 250 bps at 2x leverage, a 1% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months, according to a market source.

Commitments are due on Feb. 12, the source continued.

UBS Investment Bank, BofA Securities Inc. and Wells Fargo Securities LLC are leading the deal that will be used to amend and extend an existing term loan.

Floor & Decor is an Atlanta-based specialty retailer in the hard surface flooring market.

StandardAero OID talk

StandardAero came out with original issue discount talk in the range of 99.5 to 99.75 on its fungible $200 million incremental covenant-lite first-lien term loan (B2/B) due April 2026 that launched with a morning call, a market source remarked.

As reported earlier, the incremental loan and repricing of the company’s existing $2.14 billion covenant-lite first-lien term loan (B2/B) due April 2026 are talked at Libor plus 350 bps with a 25 bps step-down at 4.25x first-lien leverage, a 0% Libor floor and 101 soft call protection for six months, and the repricing is offered at par.

Commitments are due at 5 p.m. ET on Thursday.

Credit Suisse Securities (USA) LLC is the left lead on the deal.

The incremental term loan will be used to refinance an ABL draw, and the repricing will take the existing term loan down from Libor plus 400 bps.

StandardAero is a Scottsdale, Ariz.-based provider of aircraft engine maintenance, repair and overhaul services.

Lonestar launches

Lonestar II Generation Holdings held a lender call at 2 p.m. ET on Monday to launch a $50 million incremental covenant-lite term loan B due April 18, 2026 and a $6 million incremental covenant-lite term loan C due April 18, 2026, both talked at Libor plus 500 bps with a 0% Libor 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 Thursday, the source said.

Morgan Stanley Senior Funding Inc. is leading the $56 million of incremental senior secured term loans (B+) that will be used to fund a cash collateralized letter of credit account, fund a distribution to the Lonestar Generation LLC balance sheet, and pay transaction fees and expenses.

Consenting lenders are being offered a 25 bps fee.

Pro forma for the transaction, the term loan B will be sized at $299 million and the term loan C will be sized at $36 million.

Lonestar II Generation is the owner of a roughly 1.1 GW portfolio of three thermal power generation assets located in Texas and serving the ERCOT market.

Zayo on deck

Zayo will hold a bank meeting at 2:30 p.m. ET in New York on Wednesday and a bank meeting at 7:30 a.m. ET in London on Thursday to launch $5.06 billion equivalent of term loans, a market source said.

The debt consists of a $4.235 billion seven-year covenant-lite first-lien term loan and an $825 million euro equivalent seven-year covenant-lite first-lien term loan, both talked with a 0% floor and 101 soft call protection for six months, the source said.

Commitments for the U.S. loan are due at 5 p.m. ET on Feb. 19 and commitments for the euro loan are due at noon ET on Feb. 19.

Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., SunTrust Robinson Humphrey Inc. and TD Securities (USA) LLC are leading the deal that will help fund the buyout of the company by Digital Colony Partners and the EQT Infrastructure IV fund for $35.00 in cash per share or about $14.3 billion, including the assumption of $5.9 billion of Zayo’s net debt.

Closing is expected in the first half of this year, subject to customary conditions, including regulatory clearance and Zayo shareholder approvals.

Zayo is a Boulder, Colo.-based provider of mission-critical bandwidth to companies.

GVC joins calendar

GVC set a lender call for 10 a.m. ET on Tuesday to launch a $786 million covenant-lite first-lien term loan (Ba2/BB/BB+) due March 2024 talked at Libor plus 225 bps with a 1% Libor floor, an original issue discount of 99.75 to par and 101 soft call protection for six months a market source remarked.

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

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to reprice an existing term loan down from Libor plus 250 bps.

GVC is an Isle of Man-based sports betting and gaming group.

Matador readies loan

Matador Bidco scheduled a lender call for 10 a.m. ET on Tuesday to launch a fungible $200 million incremental term loan B (BB-/BB) due October 2026, according to a market source.

The incremental term loan is priced at Libor plus 475 bps with a 0% Libor floor, in line with the existing term loan B, and has a ticking fee of half the spread from days 45 to 90 and the full spread thereafter, the source said.

Original issue discount talk on the incremental term loan is not yet available.

Commitments are due at 5 p.m. ET on Feb. 11.

HSBC Securities (USA) Inc. is the sole physical bookrunner on the deal. TCG, BNP Paribas Securities Corp., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., RBC Capital Markets, Santander and Intesa are bookrunners.

The loan, which is expected to fund in mid-May, will be used to fund a portion of a pre-agreed deferred purchase price to Mubadala.

Matador amending

In addition to the incremental term loan B, Matador is looking to amend its credit agreement to change the debt incurrence and restricted payment provisions to facilitate the proposed transaction, the source continued.

Lenders are being offered a 5 bps amendment fee.

Including the incremental loan, the term loan B will total $825 million.

Matador Bidco is a holding company that is a 38.5% shareholder in CEPSA, a privately-held integrated energy company in Europe. Carlyle is the sponsor.

Allegiant coming soon

Allegiant Travel emerged with plans to hold a lender call at 10 a.m. ET on Tuesday to launch a $546.6 million first-lien term loan B due Feb. 5, 2024, a market source remarked.

Commitments are due at noon ET on Friday, the source added.

Barclays, Credit Agricole and Goldman Sachs Bank USA are leading the deal that will be used to reprice an existing term loan B and concurrently upsize the loan by $100 million from $446.6 million.

Allegiant is a Las Vegas-based provider of affordable and convenient leisure travel.

CCC plans call

CCC Information Services set a lender call for 2 p.m. ET on Wednesday to launch a fungible $250 million incremental first-lien term loan due March 2024, according to a market source.

The incremental term loan is priced at Libor plus 300 bps with one 25 bps leverage-based step-down and a 1% Libor floor, the source said.

Commitments are due at 5 p.m. ET on Feb. 11.

Jefferies LLC is leading the deal that will be used to prepay a corresponding amount of an existing second-lien term loan.

Pro forma for the transaction, the first-lien term loan will be sized at about $1,227,500,000. The existing term loan is currently priced at Libor plus 275 bps, but the spread will move up to Libor plus 300 bps based on the existing leverage-based pricing grid.

CCC Information is a Chicago-based provider of mission-critical infrastructure to the automotive insurance and claim industry through its integrated software, data, analytics and workflow management systems.

Tibco coming soon

Tibco Software will hold a lender call on Tuesday to launch $1.01 billion of term loans, a market source said.

The debt consists of a $360 million add-on first-lien term loan talked at Libor plus 400 basis points with a 0% Libor floor and an original issue discount of 99.5, and a $650 million eight-year second-lien term loan talked at Libor plus 775 bps with a 0% Libor floor and a discount of 98.5 to 99, the source added.

J.P. Morgan Securities LLC is the left lead on the deal that will be used to repay notes.

Tibco is a Palo Alto, Calif.-based infrastructure and business intelligence software company.

Alera joins calendar

Alera Group set a lender call for Tuesday to launch a $697 million term loan talked at Libor plus 400 bps with a 0% Libor floor and a par issue price, according to a market source.

J.P. Morgan Securities LLC is leading the deal that will be used to reprice an existing term loan.

Alera is a Deerfield, Ill.-based insurance brokerage and wealth management firm.

Citadel on deck

Citadel scheduled a lender call for Tuesday to launch a $259 million add-on term loan and a repricing of its existing $1.241 billion term loan, a market source remarked.

The term loans are talked at Libor plus 300 bps with a 0% Libor floor. The add-on is talked with an original issue discount of 99.75 and the repricing is offered at par, the source added.

J.P. Morgan Securities LLC is leading the deal.

The add-on loan will be used for general corporate purposes.

Citadel is a Chicago-based provider of market-making services to the fixed income, currency and commodity markets.

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