Aramark, ArcLight NGPL free up; Oldcastle BuildingEnvelope, Confluent Health term loans rise

By Sara Rosenberg

New York, June 13 – Aramark increased the size of its term loan B, reduced the spread and tightened the original issue discount, and ArcLight NGPL Holdings LLC (AL NGPL Holdings LLC) finalized the issue price on its term loan at the tight end of guidance, and then both of these deals broke for trading on Tuesday.

Also in the secondary market, Oldcastle BuildingEnvelope’s first-lien term loan B headed higher as some buying interest was seen in the name, and the market in general was stronger on the day, and Confluent Health LLC’s term loan B gained ground as well.

Aramark reworked, trades

Aramark raised its seven-year term loan B to $1.1 billion from $750 million, trimmed pricing to SOFR plus 250 basis points from talk in the range of SOFR plus 275 bps to 300 bps and adjusted the original issue discount to 99 from 98.5, a market source said.

As before, the term loan has a 0% floor, CSA of 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate, and 101 soft call protection for six months.

Recommitments were due at 1 p.m. ET on Tuesday and the term loan broke later in the day, with levels quoted at 99½ bid, par offered, another source added.

JPMorgan Chase Bank is leading the deal that will be used to repay in full the company’s $1.097 billion term loan B-3 due 2025. Prior to the upsizing, the company was going to repay a portion of the term loan B-3.

Aramark is a Philadelphia-based professional services company that provides food, hospitality and facility management services as well as uniform and work apparel.

ArcLight updated, breaks

ArcLight NGPL firmed the original issue discount on its non-fungible $235 million senior secured term loan (Ba3/B+) due April 15, 2028 at 98, the tight end of the 97.5 to 98 talk, according to a market source.

Pricing on the term loan remained at SOFR+CSA plus 375 bps with a 1% floor and the debt still has 101 soft call protection for six months. CSA is 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

During the session, the term loan freed to trade, with levels quoted at 98½ bid, 99 offered, another source added.

Barclays is the left lead on the deal that will be used to support the acquisition by an affiliate of ArcLight Capital Partners of an additional 12.5% stake in NGPL Holdings LLC, which indirectly owns 100% of Natural Gas Pipeline Co. of America LLC, to fund the purchase of a 12.5% share of the shareholders notes, and to pay related fees and expenses.

NGPL is a FERC-regulated natural gas pipeline system.

Oldcastle gains ground

Oldcastle BuildingEnvelope’s first-lien term loan B moved up with the gain being attributed to some buying interest pushing levels higher and a better general market tone, traders remarked.

On trader had the term loan quoted at 96¾ bid, 97¼ offered on Tuesday, up from 95¾ bid, 96¼ offered on Monday, while a second source had the loan quoted at 96¼ bid, 97¼ offered, up from 96 bid, 97 offered.

The trader said that it’s not a name that is traded a lot but, for no particular reason, it was actively traded during Tuesday’s session.

Also, helping the paper rise was the overall strength in the secondary market, which was described by the trader as being generally up by about a quarter to a half a point on the day with “thin volumes”.

Oldcastle BuildingEnvelope is a supplier of value-added, glazing-focused, interior and exterior products and services.

Confluent strengthens

Confluent Health’s term loan B was quoted at 89 bid on Tuesday, up from 82 bid, according to a market source.

Another source said that the company released strong quarterly numbers last week, which might be the driver behind the positive momentum.

Confluent Health is a Louisville, Ky.-based provider of outpatient physical, employee screening and occupational therapy services.

Fund flows

In other news, actively managed loan fund flows on Monday were negative $32 million and loan ETFs were positive $16 million, market sources said.

Inflows for loan funds week-to-date total an estimated $66 million, following inflows in the prior week of $320 million, sources added.

Loan indices rise

IHS Markit’s iBoxx loan indices were stronger on Monday, with the Leveraged Loan indexes (MiLLi) closing out the day up 0.19% and the Liquid Leveraged Loan indices (LLLi) closing out the day up 0.2%.

Month to date, the MiLLi is up 1.08% and year to date it is up 5.03%, and the LLLi is up 1.3% month to date and up 5.19% year to date.

Average secondary market bids in the U.S. on Monday were 91.27, up 0.03% from the previous day and down 0.66% year to date.

According to the IHS Markit data, some of the top advancers on Monday were EyeCare Partners’ December 2020 covenant-lite term loan B at 73.25, up from 68.17, Envision Healthcare/Amsurg’s July 2022 first-out covenant-lite term loan at 107.33, up from 101, and Wheel Pros’ May 2021 covenant-lite term loan at 66.13, up from 63.69.

Some top decliners on Monday were Sound Physicians’ June 2018 term loan at 60.5, down from 65, Heritage Power’s July 2019 term loan at 22.6, down from 24.05, and Cyxtera’s May 2017 covenant-lite term loan at 44.29, down from 45.75.

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