Helix Gen Funding, Cyanco, Dave & Buster’s free to trade; Idemia changes surface

By Sara Rosenberg

New York, June 29 – Helix Gen Funding LLC downsized its term loan, set pricing at the high end of guidance, revised the floor and extended the call protection, and upsized its revolving credit facility, before breaking for trading on Thursday.

Also, Cyanco Intermediate 2 Corp. finalized the spread on its term loan B at the low end of talk, increased the floor and made a number of revisions to documentation, and then freed to trade above its original issue discount.

Another deal to make its way into the secondary market during the session was Dave & Buster’s Inc.’s term loan B.

And, in more happenings, Idemia increased the sizes of its U.S. and euro first-lien term loans, firmed spreads at the low end of guidance and tightened original issue discounts.

Helix Gen reworked, frees

Helix Gen Funding trimmed its senior secured term loan due Dec. 31, 2027 to $675 million from $700 million, firmed pricing at SOFR plus 475 basis points, the high end of the SOFR plus 450 bps to 475 bps talk, increased the floor to 1% from 0.5% and extended the 101 soft call protection one year from six months, while keeping the original issue discount of 98 unchanged, a market source said.

Also, the target debt balance is scheduled quarterly amounts to reach $300 million at the December 2027 maturity, calculated on a straight line basis based on the starting term loan amount, versus $339.3 million previously, the source continued.

Furthermore, the company upsized its revolver to $175 million from $150 million, with the split being $125 million for letters of credit and $50 million revolver.

Recommitments were due at 3 p.m. ET on Thursday and the term loan broke for trading later in the day, with levels quoted at 98¼ bid, 98¾ offered, another source added.

Barclays, Goldman Sachs Bank USA, RBC Capital Markets, BMO Capital Markets, MUFG, Mizuho and SMBC are leading the deal that will be used to amend and extend an existing term loan B due June 30, 2024.

Helix is an independent power producer with about 2 GW of clean, high-quality dual-fuel generation.

Cyanco updated

Cyanco set pricing on its $420 million five-year covenant-lite term loan B (B2/B) at SOFR plus 475 bps, the low end of the SOFR plus 475 bps to 500 bps talk, and changed the floor to 1% from 0%, according to a market source.

Also, changes were made to documentation, including to accordion, MFN, secured/total ratio debt, acquisition debt, equity contribution basket, first-lien/secured ratio liens, acquisition liens, restricted payments unlimited ratio basket, restricted debt payments, investments, asset sale sweeps, consolidated EBITDA/pro forma adjustments, unrestricted subsidiaries and Chewy, the source continued. And the restricted payments capacity debt basket was removed and quarterly lender calls were added,

The term loan still has an original issue discount of 97 and 101 soft call protection for six months.

Cyanco hits secondary

Recommitments for Cyanco’s term loan B were due at 2 p.m. ET on Thursday, and the debt freed to trade later in the day, with levels quoted at 97¼ bid, 98 offered, another source added.

Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc., RBC Capital Markets and Societe Generale are leading the deal that will be used to refinance an existing term loan B.

Closing is expected in early July.

Cyanco is a Sugar Land, Tex.-based supplier of sodium cyanide and the only pure play provider in the market with world-scale capabilities in both liquid and solid-form NaCN.

Dave & Buster’s breaks

Dave & Buster’s $900 million covenant-lite term loan B due June 2029 began trading as well, with levels quoted at 99¼ bid, par offered, a market source remarked.

Pricing on the term loan is SOFR+10 bps CSA plus 375 bps with a 0.5% floor and it was sold at an original issue discount of 99. The debt has 101 soft call protection for six months.

During syndication, the term loan was upsized from $844 million and the discount was set at the tight end of the 98.5 to 99 talk.

Deutsche Bank Securities Inc., JPMorgan Chase Bank, BMO Capital Markets, Wells Fargo Securities LLC, Truist, Capital One and Fifth Third are leading the deal that will be used to refinance an existing $844 million term loan B due June 2029 priced at SOFR+10 bps CSA plus 500 bps with a 0.5% floor, and, due to the recent upsizing, for general corporate purposes.

Dave & Buster’s is a Coppell, Tex.-based owner and operator of entertainment and dining venues.

Idemia tweaked

Idemia lifted its U.S. first-lien term loan B due September 2028 to $750 million from $642 million, set pricing at SOFR plus 475 bps, the low end of the SOFR plus 475 bps to 500 bps talk, and removed the one 25 bps leverage-based pricing step-down, according to a market source.

The company also raised its euro first-lien term loan B due September 2028 to €1.5 billion from €1.45 billion, firmed pricing at Euribor plus 475 bps, the low end of the Euribor plus 475 bps to 500 bps talk, and eliminated one of the two leverage-based pricing step-downs, the source continued.

Furthermore, the original issue discount on both term loans (B2/B/B+) was adjusted to 98.75 from 98.

As before, the U.S. term loan has a 0.75% floor, the euro term loan has a 0% floor, and both loans have 101 soft call protection for six months.

The loans will be used to amend and extend existing $642 million and €1.45 billion first-lien term loans due January 2026, to pay transaction fees and expenses, and, due to the upsizing, to add cash to the balance sheet.

Idemia shuts books

Unconditional consents and commitments for Idemia’s term loans were due at 12:30 p.m. ET on Thursday, the source added.

The U.S. loan was expected to allocate on Thursday and allocations for the euro loan are expected on Friday.

JPMorgan Chase Bank is the physical bookrunner on the U.S. term loan. BNP Paribas Securities Corp., Credit Agricole, HSBC Securities, JPMorgan and Societe Generale are the physical bookrunners on the euro term loan, and are joint global coordinators. CM-CIC, Deutsche Bank, Goldman Sachs, Morgan Stanley, Natixis and Nomura are passive bookrunners. Alter Domus is the administrative agent on the U.S. loan and Natixis is the agent on the euro loan.

Advent is the sponsor.

Idemia is a France-based provider of security technology products and services.

Fund flows

In other news, actively managed loan fund flows on Wednesday were negative $3 million and loan ETFs were positive $86 million, market sources said.

The tracking estimate for Thursday night’s weekly Lipper numbers for loans are outflows totaling $50 million, sources added.

Loan indices rise

IHS Markit’s iBoxx loan indices were stronger on Wednesday, with the Leveraged Loan indexes (MiLLi) closing out the day up 0.12% and the Liquid Leveraged Loan indices (LLLi) closing out the day up 0.13%.

Month to date, the MiLLi is up 1.94% and year to date it is up 5.92%, and the LLLi is up 1.92% month to date and up 5.83% year to date.

Average secondary market bids in the U.S. on Wednesday were 91.5, up 0.08% from the previous day and down 0.41% year to date.

According to the IHS Markit data, some of the top advancers on Wednesday were Whole Earth Brands’ February 2021 term loan B at 75.5, up from 73.57, Brook & Whittle’s December 2021 covenant-lite term loan at 89.67, up from 87.5, and Sound Physicians’ June 2018 term loan at 58.04, up from 56.75.

Some top decliners on Wednesday were Juice Plus+’s November 2018 term loan at 40, down from 45.67, U.S. Renal Care’s June 2019 term loan B at 45.63, down from 47.57, and US Infrastructure’s May 2021 covenant-lite term loan at 93.17, down from 96.93.

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