Sebia, DexKo, Electro Rent free to trade; Entain reworks term loan sizes; Vistage on deck

By Sara Rosenberg

New York, Dec. 1 – Sebia increased sizes of its U.S. and euro term loans and DexKo Global Inc. modified the original issue discount on its first-lien term loan, and then both of these deals broke for trading on Thursday.

Also, before making its way into the secondary market, Electro Rent Corp. set the size of its amended and extended covenant-lite first-lien term loan and revealed that it is now leaving a small non-extended term loan tranche in place.

In more happenings, Entain plc upsized its U.S. add-on term loan B and its euro term loan B, and Vistage Worldwide joined the near-term primary calendar with an add-on first-lien term loan.

Sebia upsized

Sebia raised its U.S. covenant-lite term loan B due December 2027 to $250 million from $225 million and its euro covenant-lite term loan B due December 2027 to €900 million from €890 million, according to a market source.

The U.S. term loan is priced at SOFR plus 475 basis points with a 0% floor, no CSA and an original issue discount of 97, and the euro term loan is priced at Euribor plus 475 bps with a 0% floor and a discount of 98. Both loans have 101 soft call protection for six months.

Earlier in syndication, pricing on the term loans finalized at the high end of the SOFR/Euribor plus 450 bps to 475 bps talk, the discount on the U.S. loan firmed at the wide end of the 97 to 98 guidance and the discount on the euro loan was set at the tight end of the 97 to 98 talk.

Nomura is the sole global coordinator and physical bookrunner on the deal. BNP Paribas Securities Corp., Credit Agricole, Deutsche Bank Securities Inc., HSBC and Natixis are joint bookrunners and mandated lead arrangers. Natixis is the agent.

Sebia hits secondary

On Thursday morning, Sebia’s loans broke for trading, with the U.S. term loan quoted at 97¼ bid, 98¼ offered, and the euro term loan quoted at 98¼ bid, 99¼ offered, a trader added.

The loans will be used to extend an existing U.S. term loan due 2024 that is priced at Libor plus 325 bps, an existing euro term loan due 2024 that is priced at Euribor plus 275 bps and an existing euro term loan due 2024 that is priced at Euribor plus 350 bps, and to add cash to the balance sheet. There will be no December 2024 stub loans left as they will be repaid.

The sponsors are CVC, CDPQ and Tethys Investment.

Sebia is a France-based multi-specialty in-vitro diagnostics company focusing on oncology, genetic hemoglobin and metabolic disorders.

DexKo tweaked

Early in the day, DexKo moved up the commitment deadline for its non-fungible $225 million first-lien term loan (B2/B-) due October 2028 to noon ET on Thursday from 5 p.m. ET on Thursday and then, in the late morning, the original issue discount talk on the loan was changed to a range of 92 to 93 from a range of 90 to 91, a market source remarked.

Recommitments were due at 1 p.m. ET on Thursday and, after the deadline passed, the discount on the term loan finalized at 93, the tight end of the revised talk.

Pricing on the term loan is still SOFR plus 650 bps with a step-up to SOFR plus 750 bps on Oct. 5, 2023 and a 0.5% floor, and the debt still has no call protection.

DexKo breaks

In the afternoon, DexKo’s term loan freed to trade, with levels quoted at 93½ bid, 94½ offered, another source added.

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

The term loan is a secondary sell-down of American Trailer World’s position in a DexKo seller term loan related to DexKo’s acquisition of TexTrail Inc. from American Trailer.

DexKo is a Novi, Mich.-based producer of engineered products critical to safety and performance of towable industrial trailer and recreational trailer applications. TexTrail is a supplier of trailer parts, accessories, tires and wheels.

Electro updated, frees

Electro Rent firmed the size of its amended and extended covenant-lite first-lien term loan (B2/B-) due Nov. 1, 2024 at $519,789,872, compared to talk at launch of $534 million, and is now keeping a $13,871,345 non-extended term loan tranche due Jan. 31, 2024 in place, according to a market source.

As before, pricing on the extended term loan is SOFR+10 bps CSA plus 550 bps with a 1% floor and a 150 bps extension fee, and the debt has 101 soft call protection for one year.

The non-extended term loan is priced at Libor plus 500 bps with a 1% floor.

During the session, the extended term loan began trading, with levels quoted at 97¼ bid, another source added. The non-extended term loan was quoted at 96 bid.

Deutsche Bank Securities Inc., Barclays, BMO Capital Markets and Goldman Sachs Bank USA are leading the deal.

Electro Rent, a West Hills, Calif.-based provider of electronic testing and measurement equipment services, expects to close on the loan transaction on Tuesday.

Entain revised

Entain increased its U.S. fungible add-on term loan B due October 2029 to $375 million from $250 million and its euro term loan B due June 2028 to €800 million from €500 million, a market source remarked.

As before, talk on the U.S. term loan is SOFR+10 bps CSA plus 350 bps with a 0.5% floor and an original issue discount of 98, and talk on the euro term loan is Euribor plus 375 bps with a 0% floor, a discount of 97 and 101 soft call protection for one year. Call protection on the add-on U.S. loan is the same as the call protection on the existing U.S. term loan B.

Commitments for the U.S. term loan continued to be due at 5 p.m. ET on Thursday, and commitments for the euro term loan are still due at 7 a.m. ET on Friday, the source added.

Entain lead banks

Deutsche Bank Securities Inc. is the left lead and sole physical bookrunner on Entain’s U.S. term loan and Barclays is a physical bookrunner. Barclays and Deutsche are the joint global coordinators and physical bookrunners on the euro term loan. Mandated lead arrangers include Lloyds, Mediobanca, Morgan Stanley Senior Funding Inc., Natwest and Santander. Wilmington Trust is the administrative agent.

Due to the upsizings, proceeds will be used to repay in full a euro term loan due March 2024, instead of repaying a portion of the debt, and to cover transaction fees and expenses.

Entain is a Douglas, Isle of Man-based sports-betting, gaming and interactive entertainment group.

Vistage readies deal

Vistage emerged with plans to hold a lender call at 2 p.m. ET on Monday to launch a fungible $44 million add-on first-lien term loan, according to a market source.

Pricing on the add-on term loan is SOFR+CSA plus 525 bps with a 0.75% floor, in line with the existing first-lien term loan. CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

Original issue discount talk on the add-on term loan is not yet available, the source said.

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

Vistage is a San Diego-based member-based advisory company for executives of small and medium-sized businesses.

Fund flows

In other news, actively managed loan fund flows on Wednesday were negative $161 million and loan ETFs were positive $18 million, market sources said.

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

Loan indices mixed

IHS Markit’s iBoxx loan indices were mixed on Wednesday, with the Leveraged Loan indexes (MiLLi) closing out the day unchanged and the Liquid Leveraged Loan indices (LLLi) closing out the day up 0.04%.

Month to date, the MiLLi is up 1.15% and year to date its down 1.64%. The LLLi is up 0.99% month to date and down 2.48% year to date.

Average secondary market bids in the U.S. on Wednesday were 92.27, down 0.02% from the previous day and down 4.73% year to date.

According to the IHS Markit data, some of the top advancers on Wednesday were Ten-X’s September 2017 covenant-lite term loan B at 90.69, up from 85, United Site’s December 2021 covenant-lite term loan B at 80.67, up from 77.54, and American Trailer World’s March 2021 covenant-lite term loan at 89.31, up from 86.19.

Some top decliners on Wednesday were Cubic’s May 2021 covenant-lite term loan B at 85.92, down from 91.43, Xplornet’s October 2021 covenant-lite term loan at 81.25, down from 82.83, and Revlon’s November 2020 additional covenant-lite term loan B2 at 46, down from 46.84.

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