Byju’s, TransMontaigne, Parkway, United Natural, Watlow, Howden, Echo, Marlink, Ineos break

By Sara Rosenberg

New York, Nov. 5 – Byju’s (Think & Learn Private Ltd.) upsized its term loan B, and TransMontaigne Operating Co. LP set the original issue discount on its term loan B at the tight end of talk, and then these deals broke for trading on Friday.

Also, before freeing up for trading, Parkway Generation LLC, United Natural Foods Inc. and Watlow firmed the spreads on their term loans at the wide end of guidance, and Howden finalized the original issue discount on its add-on term loan at the tight side of talk.

Other deals to make their way into the secondary market during the session included Echo Global Logistics, Marlink Group and Ineos Group Holdings.

In more happenings, KKR Real Estate Finance Trust Inc. (KREF Holdings X LLC) set the spread on its add-on term loan B and repricing of its existing term loan B at the low end of guidance and modified the issue price, and Covanta Holding Corp. and S&S Holdings LLC released price talk with launch.

Additionally, Hard Rock Northern Indiana (Spectacle Gary Holdings LLC), Kraton Corp., Luihn VantEdge Partners LLC and Access CIG LLC joined the near-term primary calendar.

Byju’s upsizes, trades

Byju’s lifted its five-year senior secured covenant-lite term loan B to $1.2 billion from $500 million and made some revisions to the credit agreement, according to a market source.

As before, the term loan is priced at Libor plus 550 basis points with a 0.75% Libor floor and an original issue discount of 98.5, and has hard call protection of 105 in year one, 103 in year two and 101 in year three. The margin on the term loan will step-up to Libor plus 600 bps on the date that is nine months post-close in the event that the company has not obtained credit ratings from two of Moody’s Investors Service, S&P Global Ratings and Fitch Ratings.

Recommitments were due at noon ET on Friday and the term loan broke for trading in the afternoon, with levels quoted at 99½ bid, par ½ offered, a trader added.

Morgan Stanley Senior Funding Inc. and JPMorgan Chase Bank are leading the deal that will be used by the India-based educational technology company to fund general corporate purposes offshore only, including to support business growth initiatives in North America and to fund potential strategic opportunities.

Closing is expected mid-to-late November.

TransMontaigne updated, frees

TransMontaigne finalized the original issue discount on its $1 billion seven-year senior secured term loan B at 99.5, the tight end of the 99 to 99.5 talk, and made some changes to the credit agreement, a market source said.

Pricing on the term loan remained at Libor plus 350 bps with a 0.5% Libor floor, and the debt still has 101 soft call protection for six months.

The company’s $1.15 billion of credit facilities (B1/BB-/BB) also include a $150 million revolver.

During the session, the term loan B made its way into the secondary market, with levels quoted at 99 5/8 bid, par 1/8 offered, another source added.

Barclays is the left lead on the deal that will be used to refinance existing debt, including outstanding borrowings under a revolver, a partial repayment of HoldCo debt at TLP Finance Holdings LLC and debt outstanding at additional assets, SeaPort Financing LLC TL, being contributed, fund a distribution to the sponsor as compensation for contributing the SeaPort assets, and pay associated fees and expenses.

TransMontaigne is a Denver-based pure play downstream terminal infrastructure platform.

Parkway finalizes, breaks

Parkway Generation firmed pricing on its $1.14 billion of seven-year senior secured term loans (Ba3/BB) at Libor plus 475 bps, the high end of the Libor plus 450 bps to 475 bps talk, and changed documentation to reduce the tax distribution cap to $40 million from $50 million and add quarterly calls, according to a market source.

The term loan debt, divided between a $1 billion term loan B and a $140 million term loan C, still has a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

Ticking fees on the term loan debt is half the margin from days 46 to 90 and the full margin thereafter.

The term loans broke for trading late in the day, with levels quoted at 99¼ bid, 99¾ offered, a trader added.

Morgan Stanley Senior Funding Inc., Jefferies LLC, BNP Paribas Securities Corp. and Goldman Sachs Bank USA are leading the deal, which is expected to close in mid-December.

The term loan B will be used to help fund ArcLight Capital Partners’ acquisition of Public Service Enterprise Group Inc.’s portfolio of eight natural gas-fired power generation facilities in New Jersey and Maryland totaling 4,805 MW (Parkway Generation), and the term loan C will be used to fund a collateral account to cash collateralize the issuance of letters of credit.

United Natural firms, frees

United Natural Foods set pricing on its $844 million covenant-lite first-lien term loan (B1/BB-) due October 2025 at Libor plus 325 bps, the high end of the Libor plus 300 bps to 325 bps talk, a market source remarked.

The 0% Libor floor, par issue price and 101 soft call protection for six months on the term loan were unchanged.

The term loan freed to trade during market hours, with levels quoted at par 1/8 bid on the break, another 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 350 bps with a 0% Libor floor.

United Natural Foods is a Providence, R.I.-based distributor of natural, organic and specialty grocery and non-food products.

Watlow updated, trades

Watlow finalized the spread on its $512 million term loan B at Libor plus 375 bps, the high end of the Libor plus 350 bps to 375 bps talk, according to a market source.

The term loan still has a 0.5% Libor floor, a par issue price and 101 soft call protection for six months.

On Friday, the term loan broke for trading, with levels quoted at par bid, par ½ offered, a trader added.

BMO Capital Markets is leading the deal that will be used to reprice an existing term loan B down from Libor plus 400 bps with a 0.5% Libor floor.

Watlow is a St. Louis-based designer and manufacturer of complete thermal systems.

Howden sets OID, breaks

Howden firmed the original issue discount on its fungible $250 million add-on term loan at 99.375, the tight end of the 99.125 to 99.375 talk, a market source said.

Pricing on the add-on term loan is Libor plus 400 bps with a 0% Libor floor, in line with existing term loan pricing.

During the session, the add-on term loan started trading, with levels quoted at 99 5/8 bid, par 1/8 offered, another source added.

JPMorgan Chase Bank is leading the deal that will be used to fund the acquisition of Compressor Products International, a Houston-based provider of aftermarket components and services to the global reciprocating compressor market, to add cash to the balance sheet and for general corporate purposes.

Howden is a Glasgow, Scotland-based provider of mission critical air and gas handling products and services.

Echo hits secondary

Echo Global Logistics’ $575 million seven-year covenant-lite first-lien term loan began trading, with levels quoted at par bid par ½ offered, a market source remarked.

Pricing on the first-lien term loan is Libor plus 375 bps with a 25 bps step-down after 0.5x of first-lien net leverage deleveraging and a 0.5% Libor floor. The debt was sold at an original issue discount of 99.75 and has 101 soft call protection for six months.

The company’s $810 million of credit facilities also include a $100 million revolver and a $135 million privately placed second-lien term loan.

During syndication, the first-lien term loan was upsized from $550 million as the second-lien term loan was downsized from $160 million, pricing was reduced from talk in the range of Libor plus 400 bps to 425 bps, the step-down was added and the discount was revised from 99.5.

Echo being acquired

Proceeds from Echo’s credit facilities will be used to help fund its buyout by The Jordan Co. for $48.25 per share in cash. The transaction is valued at about $1.3 billion.

Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., BMO Capital Markets, BNP Paribas Securities Corp., Citizens Bank, UBS Investment Bank and MUFG are leading the debt.

Closing is expected in the fourth quarter, subject to customary conditions, including stockholder and regulatory approval.

Echo is a Chicago-based provider of tech-enabled transportation and supply chain management services.

Marlink breaks

Marlink Group’s $525 million seven-year first-lien term loan B freed to trade too, with levels quoted at 97½ bid, 98½ offered, a market source said.

Pricing on the term loan is Libor plus 475 bps with a 0.75% Libor floor and it was sold at an original issue discount of 97. The debt has 101 soft call protection for one year.

The company is also getting a €250 million seven-year first-lien term loan B priced at Euribor plus 475 bps with a 0% floor and issued at a discount of 97. This tranche has 101 soft call protection for one year as well.

During syndication, both term loans (B2/B) saw pricing firm at the high end of the Libor/Euribor plus 450 bps to 475 bps talk, step-downs removed, the discount widen from 99, call protection extended from six months, ticking fees changed to half the margin from days 46 to 75 and the full margin thereafter, from half the margin from days 61 to 90 and the full margin thereafter, and revisions to documentation. In addition, the Libor floor on the U.S. term loan was increased from 0.5%.

Marlink lead banks

Goldman Sachs, BNP Paribas Securities Corp., BofA Securities Inc., Barclays, KKR Capital Markets, HSBC and Banque CIC are leading Marlink’s term loans.

Proceeds that will help fund the buyout of the company by Providence Equity Partners from Apax Partners SAS for an enterprise value of about $1.4 billion.

Marlink is a Paris and Oslo-based provider of business-critical SatCom services.

Ineos tops OID

Ineos Group’s $845 million seven-year term loan B broke as well, with levels quoted at par 1/8 bid, par 3/8 offered, according to a market source.

Pricing on the U.S. term loan is Libor plus 250 bps with a 0.5% Libor floor and it was sold at an original issue discount of 99.875. The debt has 101 soft call protection for six months.

The company is also getting a €350 million seven-year term loan B priced at Euribor plus 275 bps with a 0.5% floor and issued at a discount of 99.75. This tranche has 101 soft call protection for six months too.

During syndication, the U.S. term loan was upsized from $790 million, pricing was lowered from Libor plus 275 bps and the discount was changed from 99.5, and the euro term loan was downsized from €400 million and the discount was tightened from 99.5.

JPMorgan, Barclays, Citigroup Global Markets Inc. and HSBC are the joint global coordinators and bookrunners on the deal (Ba2/BB), with JPMorgan left on the U.S. loan, and Barclays and JPMorgan joint physical leads on the euro loan. BofA Securities Inc., BNP Paribas Securities Corp., Credit Suisse, Deutsche Bank, Goldman Sachs, ING, Lloyds, NatWest and Santander are mandated lead arrangers. Barclays is the administrative agent.

Ineos, a London-based chemicals company, will use the loans to refinance senior notes due 2024.

KKR tweaks deal

Back in the primary market, KKR Real Estate Finance Trust firmed pricing on its $50 million add-on term loan B and repricing of its existing $298 million term loan B at Libor plus 350 bps, the low end of the Libor plus 350 bps to 375 bps talk, and adjusted the issue price to par from 99.75, a market source said.

The term loan debt still has a 0.5% Libor floor and 101 soft call protection for six months.

JPMorgan Chase Bank is leading the deal.

The add-on term loan will be used for general corporate purposes, and the repricing will take the existing term loan down from Libor plus 475 bps with a 1% Libor floor.

KKR Real Estate is a New York-based real estate finance company.

Covanta guidance

Covanta held its lender call on Friday morning and announced talk on its $1.335 billion seven-year sustainability linked term loan B and $100 million seven-year sustainability linked term loan C at Libor plus 275 bps with a 0.5% Libor floor and an original issue discount of 99.5, according to a market source.

The term loans have a 12.5 bps coupon increase for each of the two KPIs not met by the observation date of Dec. 31, 2025, and 101 soft call protection for six months.

Commitments are due at noon ET on Nov. 16, the source added.

Barclays is the left lead on the deal that will be used to help fund the buyout of the company by EQT Infrastructure for $20.25 per share and refinance existing debt.

Closing is expected in the fourth quarter, subject to Covanta shareholder approval and customary government approvals.

Covanta is a Morristown, N.J.-based provider of sustainable waste and energy solutions.

S&S Holdings talk

S&S Holdings came out with original issue discount talk of 98.5 on its fungible $150 million incremental first-lien term loan (B2/B) due March 11, 2028 that launched with a lender call in the morning, a market source remarked.

Like the existing term loan, the incremental term loan is priced at Libor plus 500 bps with a 0.5% Libor floor and has 101 soft call protection through March 2022.

Commitments are due at 5 p.m. ET on Nov. 16, the source added.

Barclays, Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, BMO Capital Markets, BNP Paribas Securities Corp., Citizens, Natixis and Truist are leading the deal, which will be used to fund a tuck-in acquisition.

S&S is a Bolingbrook, Ill.-based distributor of imprintable apparel and accessories.

Hard Rock readies deal

Hard Rock Northern Indiana set a lender call for 10 a.m. ET on Monday to launch a $415 million seven-year covenant-lite term loan B (B3/B/B+), according to a market source.

The term loan has 101 soft call protection for six months.

Commitments are due at noon ET on Nov. 18, the source added.

Wells Fargo Securities LLC is leading the deal that will be used to refinance existing debt and pay related fees and expenses.

Hard Rock Northern Indiana is a 200,000 square foot, full-service gaming facility and entertainment complex located in Gary, Indiana.

Kraton on deck

Kraton will hold a lender call at 11 a.m. ET on Monday to launch a $950 million equivalent U.S. and euro term loan B (Ba3), a market source said.

Sizes of the U.S. and euro term loan B are still to be determined, but the expectation is for a roughly €300 million euro tranche, the source added.

Goldman Sachs, BMO Capital Markets, Deutsche Bank Securities Inc., HSBC Securities, Wells Fargo Securities LLC, BNP Paribas Securities Corp., SMBC, BofA Securities Inc. and Mizuho are leading the deal that will be used to help fund the acquisition of the company by DL Chemical Co. Ltd. for $46.50 per share. The transaction has an enterprise value of about $2.5 billion.

Closing is expected in the first half of 2022, subject to customary conditions, including the receipt of stockholder and regulatory approvals.

Kraton is a Houston-based producer of specialty polymers and high-value bio-based products derived from pine wood pulping co-products. DL Chemical is a Korea-based petrochemical company.

Luihn joins calendar

Luihn VantEdge Partners scheduled a lender meeting for 3 p.m. ET on Tuesday to launch $345 million of term loans, according to a market source.

The debt is split between a $280 million seven-year covenant-lite first-lien term loan and a $65 million eight-year covenant-lite second-lien term loan, the source said.

Citizens Bank is leading the deal that will be used to fund an acquisition and refinance existing debt.

VantEdge Partners LLC is the sponsor.

Luihn VantEdge is a Morrisville, N.C.-based owner and operator of 172 restaurants (primarily Taco Bell units) across five states.

Access CIG plans call

Access CIG set a lender call for 2 p.m. ET on Monday to launch a fungible $75 million incremental first-lien term loan due Feb. 27, 2025 talked with an original issue discount of 99.27, a market source remarked.

Pricing on the incremental term loan is Libor plus 375 bps with a 0% Libor floor.

The incremental and existing first-lien term loans are getting 101 soft call protection for six months.

Commitments are due at noon ET on Nov. 15, the source added.

Jefferies LLC, Macquarie Capital (USA) Inc., Nomura and Golub are leading the deal that will be used to fund cash to the balance sheet to be used for acquisitions.

Pro forma for the transaction, the first-lien term loan will total about $1,024,200,000.

Along with the incremental term loan, the company is seeking an amendment to extend its existing revolver to Nov. 28, 2024.

Access CIG is a Livermore, Calif.-based provider of physical and digital records and information management services.

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