Hayward Industries, Conair, Generate Life Sciences loans free to trade

By Sara Rosenberg

New York, May 14 – Hayward Industries Inc. finalized the original issue discount on its term loan B at the tight end of guidance before freeing up for trading during Friday’s market hours.

Also, Conair Corp.’s first-lien term loan made its way into the secondary market, with levels quoted above its original issue discount, and Generate Life Sciences’ incremental first-lien term loan broke for trading too.

Meanwhile, in the primary market, DT Midstream Inc. surfaced with new deal plans, and launch timing surfaced on Charter Next Generation’s incremental term loan.

Hayward updated

Hayward Industries set the original issue discount on its $1 billion seven-year term loan B (B2/BB-) at 99.5, the tight end of the 99 to 99.5 talk, according to a market source.

The term loan is still priced at Libor plus 275 basis points with a 0.5% Libor floor and has 101 soft call protection for six months.

On Friday, the term loan started trading, with levels quoted at 99¾ bid, par 1/8 offered, another source added.

BofA Securities Inc. and Nomura are leading the deal that will be used to repay existing first-lien term loans and ABL revolver borrowings.

Hayward is a Berkeley Heights, N.J.-based manufacturer of residential and commercial pool and spa equipment as well as industrial flow control products.

Conair hits secondary

Conair’s $1.27 billion seven-year senior secured covenant-lite first-lien term loan freed up as well, with levels quoted at par bid, par 3/8 offered, a market source remarked.

Pricing on the first-lien term loan is Libor plus 375 bps 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.

The company is also getting a $410 million privately placed second-lien term loan.

During syndication, the first-lien term loan was upsized from $1.165 billion, pricing firmed at the low end of the Libor plus 375 bps to 400 bps talk and the discount tightened from 99. In addition, the second-lien term loan was downsized from $430 million.

BofA Securities Inc., Credit Suisse Securities (USA) LLC, RBC Capital Markets, Barclays, Jefferies LLC and Stifel are leading the deal that will be used with equity to fund the buyout of the company by American Securities LLC.

Conair is a Stamford, Conn.-based designer, manufacturer, and marketer of personal care and small kitchen appliances, cookware, hair brushes & accessories, cosmetic bags, and travel accessories.

Generate frees up

Generate Life Sciences’ fungible $130 million incremental covenant-lite first-lien term loan due Aug. 6, 2025 began trading as well, with levels quoted at 99¼ bid, par offered, a market source said.

Pricing on the incremental term loan is Libor plus 400 bps with a 0% Libor floor, in line with existing term loan pricing, and the new debt was sold at an original issue discount of 99.03.

Golub Capital Markets LLC is leading the deal that will be used to fund an acquisition.

Generate Life Sciences, formerly known as California Cryobank, is a Los Angeles-based life sciences company helping to grow and protect families through reproductive, newborn stem cell, genetic screening, medical device, and health care technology services.

DT Midstream on deck

Moving to the primary market, DT Midstream will hold a lender call at 10 a.m. ET on Monday to launch a $1 billion seven-year senior secured term loan B (Baa2), according to a market source.

The term loan has 101 soft call protection for six months, the source said.

Barclays, BofA Securities Inc., Citigroup Global Markets Inc., JPMorgan Chase Bank and Wells Fargo Securities LLC are the lead bookrunners on the deal. CoBank, Fifth Third, Mizuho, MUFG, PNC Capital Markets, Bank of Nova Scotia, TD Securities (USA) LLC, Truist and U.S. Bank are joint bookrunners. Barclays is the administrative agent.

The loan will be used with $2.1 billion of new unsecured debt to make a payment to DTE Energy and to pay related transaction costs, fees and expenses.

DT Midstream is a large-scale platform connecting supply basins to the natural gas demand markets.

Charter Next sets call

Charter Next Generation scheduled a lender call for Monday to launch its previously announced $240 million incremental term loan, a market source remarked.

KKR Capital Markets, Jefferies LLC and Morgan Stanley Senior Funding Inc. are leading the deal.

The loan will be used to help fund an investment in the company by KKR, which will be joining Leonard Green & Partners LP as an equal co-owner of the business. A wholly owned subsidiary of the Abu Dhabi Investment Authority will also be investing in the transaction to become a minority owner.

Charter Next Generation is a Milton, Wis.-based producer of specialty films used in flexible packaging, industrial, health care, and consumer applications.

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