Clarios breaks; Packers Sanitation, BlueTriton strengthen; Simply Good changes emerge

By Sara Rosenberg

New York, April 20 – Clarios Global LP increased the size of its term loan B, reduced the spread and modified the original issue discount, and then the debt made its way into the secondary market on Thursday, with levels quoted above the revised issue price.

Also, Packers Sanitation Services Inc.’s (PSSI) term loan rebounded a little in trading after spending the first half of this week falling in reaction to news reports that Cargill Inc. canceled its contracts with the company, and BlueTriton Brands’ term loan was stronger with the release of earnings to lenders.

In more happenings, Simply Good Foods Co. (Atkins Nutritionals Holdings Inc.) trimmed the spread on its term loan B and tightened the original issue discount.

Furthermore, Signant Health (Bracket Intermediate Holding Corp.), Tekni-Plex Inc. (Trident TPI Holdings Inc.), Talen Energy Supply LLC and GMS Inc. (GYP Holdings III Corp.) released price talk with launch, and Kenan Advantage Group Inc. joined the near-term primary calendar.

Clarios reworked, frees

Clarios lifted its seven-year term loan B (B1/B+) to $2.75 billion from $1 billion, revised pricing to SOFR plus 375 basis points from SOFR plus 400 bps, and changed the original issue discount talk to a range of 99 to 99.5 from 98, before firming at 99.5, a market source said.

The term loan still has a 0% floor and 101 soft call protection for six months.

Late Thursday, the term loan broke for trading, with levels quoted at 99 5/8 bid, 99 7/8 offered, another source added.

JPMorgan Chase Bank is the left lead on the deal that will be used with $750 million of senior secured notes, upsized from $500 million, to refinance in its entirety a roughly $3.46 billion term loan due 2026. Prior to the upsizings of the term loan and notes, the company was only planning on refinancing about $1.5 billion of the existing term loan.

Clarios is a Milwaukee-based supplier of low voltage automotive batteries.

Packers rises

Packers Sanitation’s term loan moved up in trading to 72½ bid, 75½ offered on Thursday from 64 bid, 67 offered on Wednesday, according to a trader, but the debt is still down from levels of 91½ bid 92½ offered on Monday.

The term loan spent the first half of the week sliding lower on the heels of news reports late Friday that Cargill is terminating all contracts for sanitation services with the company as a result of allegations of the use of child labor.

The trader said that the company came out today with plans to hold a call for lenders on Monday to address the situation after staying silent on it till this point, which might have helped the paper regain some lost ground.

Additionally, the trader explained that once levels on the term loan drifted into the 60s there were a couple of buyers that found it interesting and that helped push it up during Thursday’s session as well.

Packers Sanitation is a Kieler, Wis.-based provider of mission critical cleaning, sanitation and compliance services to the food processing industry. Cargill is a Minneapolis-based food company.

BlueTriton better

BlueTriton’s term loan rose to 93¾ bid, 94¾ offered from 90 bid, 91½ offered on Wednesday, a market source remarked.

The source attributed the gain to investors reacting positively to a quarterly earnings call that was held for lenders.

BlueTriton is a Stamford, Conn.-based provider of bottler water.

Simply Good revised

Back in the primary market, Simply Good Foods cut pricing on its $350 million senior secured term loan B (Ba3/BB+) due March 17, 2027 to SOFR+250 bps from talk in the range of SOFR plus 275 bps to 300 bps and changed the original issue discount to 99.25 from 99, a market source said.

As before, the term loan has CSA of 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate, a 0.5% floor and 101 soft call protection for six months.

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

Barclays, BMO Capital Markets, Deutsche Bank Securities Inc. and Goldman Sachs Bank USA are leading the deal that will be used to amend and extend an existing $350 million senior secured term loan B due July 7, 2024 priced at SOFR+CSA of 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate plus 325 bps with a 0.5% floor.

Simply Good is a Denver-based developer, marketer and seller of branded nutritional foods and snacking products.

Signant guidance

Signant Health held its lender call at 11 a.m. ET on Thursday and, shortly before the call began, price talk on its $850 million five-year first-lien term loan and $130 million delayed-draw first-lien term loan was announced at SOFR+10 bps CSA plus 500 bps with one 25 bps leverage-based step-down, a 0.5% floor and an original issue discount of 96.5, according to a market source.

The delayed-draw term loan is available for six months and has ticking fees of half the margin for days 46 to 90 and the full margin thereafter. Half of the original issue discount on the delayed-draw term loan will be paid at close and the other half will be paid at funding, the source said.

Included in the term loan is 101 soft call protection for six months.

Along with the term loans, the company’s $1.06 billion of credit facilities provide for an $80 million revolver.

Commitments are due at 2 p.m. ET on May 2.

Jefferies LLC and Antares Capital are leading the deal that will refinance the company’s existing debt.

Signant is a Blue Bell, Pa., provider of clinical research technology and solutions for clinical trials.

Tekni-Plex proposed terms

Tekni-Plex came out with price talk on its $626 million incremental covenant-lite first-lien term loan B due September 2028 and $254 million equivalent euro incremental covenant-lite first-lien term loan B due September 2028 with its morning lender call, a market source remarked.

The U.S. term loan is talked at SOFR plus 450 bps to 475 bps with a 0.5% floor and an original issue discount of 97, and the euro term loan is talked at Euribor plus 475 bps to 500 bps with a 0% floor and a discount of 96 to 97, the source added.

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

Commitments are due at noon ET on Tuesday.

Credit Suisse, BMO Capital Markets, Jefferies LLC and Goldman Sachs are leading the deal that will be used to refinance existing debt.

Tekni-Plex is a Wayne, Pa.-based provider of health care and consumer material solutions.

Talen details emerge

Talen Energy held its lender call in the morning, launching an $825 million seven-year senior secured covenant-lite term loan B and a $545 million seven-year senior secured covenant-lite term loan C at talk of SOFR plus 425 bps to 450 bps with one 25 bps step-down at 2x first-lien net leverage starting June 30, 2024, a 0.5% floor, an original issue discount of 97 to 98 and 101 soft call protection for six months, according to a market source.

The term loan B has amortization of 1% per annum and the term loan C has no amortization.

Commitments are due at 5 p.m. ET on April 27, the source added.

Citigroup Global Markets Inc. is the left lead on the $1.37 billion of term loans (Ba3/BB/BB+) that will be used to refinance the company’s existing secured financing agreements, to add cash to the balance sheet, for general corporate purposes and to pay fees, costs, and expenses related to the transaction.

The loans are being done in connection with the company’s emergence from Chapter 11.

Closing is expected in late May.

Talen Energy is a Houston-based power generation and infrastructure company.

GMS holds call

GMS held a lender call at 2:30 p.m. ET to launch a $500 million seven-year term loan B (Ba2/BB-) that is talked at SOFR plus 325 bps to 350 bps with a 0% floor, an original issue discount of 98.5 and 101 soft call protection for six months, a market source remarked.

Commitments are due at 5 p.m. ET on April 27, the source added.

JPMorgan Chase Bank is leading the deal that will be used to help refinance an existing term loan B due 2025.

GMS is a Tucker, Ga.-based distributor of interior construction products.

Kenan readies deal

Kenan Advantage set a lender call for 2 p.m. ET on Monday to launch a non-fungible $250 million incremental first-lien term loan, according to a market source.

The term loan has ARRC CSA of 11.448 basis points one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate, the source said.

KeyBanc Capital Markets LLC is the left lead on the deal that will be used with cash on hand to refinance a $300 million second-lien term loan due 2027.

Kenan Advantage is a North Canton, Ohio-based provider of liquid bulk transportation services to the fuels, chemicals, liquid foods and merchant gas markets.

Fund flows

In other news, actively managed loan fund flows on Wednesday were negative $113 million and loan ETFs were negative $11 million, market sources said.

The tracking estimate for Thursday night’s weekly Lipper numbers for loans are outflows totaling $350 million, sources added.

Loan indices slide

IHS Markit’s iBoxx loan indices were weaker on Wednesday, with the Leveraged Loan indexes (MiLLi) closing out the day down 0.02% and the Liquid Leveraged Loan indices (LLLi) closing out the day down 0.02%.

Month to date, the MiLLi is up 0.78% and year to date it is up 3.86%, and the LLLi is up 0.95% month to date and up 4.28% year to date.

Average secondary market bids in the U.S. on Wednesday were 91.56, down 0.01% from the previous day and down 0.35% year to date.

According to the IHS Markit data, some of the top advancers on Wednesday were Trilliant Food’s April 2018 covenant-lite term loan B at 80, up from 78.4, Monitronics’ August 2019 takeback term loan at 50, up from 49.25, and LogMeIn’s August 2020 covenant-lite term loan B at 60.83, up from 60.22.

Some top decliners on Wednesday were Shutterfly’s July 2021 covenant-lite term loan at 40.5, down from 44.14, Tortoise Investments’ January 2018 covenant-lite term loan at 56.13, down from 58.38, and Traeger Grills’ June 2021 covenant-lite term loan at 78.69, down from 80.92.

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