H.B. Fuller breaks; Clear Channel up with planned paydown; ADT bid better on asset sale

By Sara Rosenberg

New York, Aug. 8 – H.B. Fuller Co. changed the issue price on its first-lien term loan B before freeing up for trading on Tuesday, Clear Channel Outdoor Holdings Inc.’s term loan was stronger in trading with news of a planned partial repayment through a Dutch auction, and ADT Inc.’s term loan was bid higher after the company announced plans to pay down the debt with proceeds from an asset sale.

In more happenings, J&J Ventures Gaming Inc. reduced the size of its term loan B, widened the spread and original issue discount, extended the call protection and shifted to a delayed-draw structure, Four Seasons Hotels Ltd. tightened the issue price on its first-lien term loan B, and Barnes Group Inc. moved up the commitment deadline for its term loan B.

Furthermore, Entegris Inc., ECL Entertainment LLC, Epicor Software Corp. and Kymera International released price talk with launch, and StandardAero (Dynasty Acquisition Co.) and Michael Baker International LLC joined this week’s new issue calendar.

H.B. Fuller updated, frees

H.B. Fuller tightened the issue price on its $798 million first-lien term loan B due February 2030 to par from talk in the range of 99.5 to 99.75, a market source said.

Pricing on the term loan remained at SOFR plus 225 basis points with a 0.5% floor, and the debt still has 101 soft call protection for six months.

Recommitments were due at 2 p.m. ET on Tuesday and the term loan broke for trading later in the day, with levels quoted at par bid, par ½ offered, another source added.

JPMorgan Chase Bank is leading the deal that will be used to reprice an existing $798 million first-lien term loan B due February 2030 down from SOFR plus 250 bps with a 0.5% floor.

H.B. Fuller is a St. Paul, Minn.-based industrial adhesives, sealants, coatings and specialty materials company.

Clear Channel rises

Clear Channel Outdoor’s term loan B due 2026 moved higher in trading on Tuesday as the company launched a Dutch auction for a portion of the debt at a price of 96.5 to 99.375, according to traders.

One trader had the term loan B quoted at 97¼ bid, 98 offered, up from 96¼ bid, 96¾ offered on Monday and a second trader had the term loan B quoted at 97¼ bid, 98 offered, up from 96 bid, 96½ offered.

The company will use proceeds from a $750 million senior secured notes offering to fund the Dutch auction, to put $75 million toward general corporate purposes and to pay related fees and expenses.

The notes were upsized from $500 million, resulting in a $175 million increase to the term loan repayment from up to $490 million and the availability of funds for general corporate purposes.

Morgan Stanley Senior Funding Inc. is the sole auction agent. Deutsche Bank is the administrative agent.

Participation notices for the auction are due from lenders by 5 p.m. ET on Monday, lenders will be informed of results by 1 p.m. ET on Aug. 17 and the settlement date is Aug. 22, a market source added.

Clear Channel Outdoor is a New York-based provider of out-of-home display advertising such as digital billboards, posters, panels, wallscapes and mobile advertising services.

ADT bid up

ADT’s term loan was quoted at 99 7/8 bid, par 1/8 offered on Tuesday, up on the bid side from 99 5/8 bid, par 1/8 offered on Monday as the company disclosed that it would use net proceeds from the sale of its commercial business to repay debt, a trader remarked.

The company expects $1.5 billion of net proceeds from the sale of its commercial security, fire and life safety business, Fire & Security Holdings LLC, to GTCR for $1,612,500,000.

The net proceeds would be used to repay term loan borrowings and $200 million of notes due 2024.

ADT said in a presentation that its net debt would be reduced to $7.8 billion from $9.3 billion and its net leverage ratio would drop to 3.3x from 3.7x at June 30.

Closing on the sale is expected in the fourth quarter, subject to customary conditions, including regulatory approvals.

GTCR’s purchase of the business will be funded with a commitment for new debt financing and equity.

J&J reworked

J&J Ventures Gaming trimmed its non-fungible covenant-lite term loan B (B2/B) due April 26, 2028 to $350 million from $375 million, lifted pricing to SOFR plus 425 bps from SOFR plus 400 bps, changed the original issue discount to 95 from talk in the range of 97 to 97.5 and extended the 101 soft call protection to one year from six months, according to a market source.

Furthermore, the term loan was revised to a delayed-draw tranche from a funded incremental tranche, the escrow ticking fee was removed, and the company added delayed-draw ticking fees of half the margin from days 31 to 60, the full margin from days 61 to 135 and SOFR+CSA plus the full margin thereafter, the source added.

The term loan still has ARRC standard CSA of 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate, and a 0.75% floor.

Final commitments are due at 10 a.m. ET on Wednesday, with allocations expected shortly thereafter.

Deutsche Bank Securities Inc., Goldman Sachs Bank USA and SMBC are leading the deal that will be used to fund the acquisition of Golden Entertainment’s distributed gaming assets in Nevada and Montana.

J&J Ventures, an Oaktree Capital Management LP portfolio company, is an Effingham, Ill.-based video gaming terminal operator.

Four Seasons revised

Four Seasons Hotels changed the issue price on its $845.75 million senior secured covenant-lite first-lien term loan B (Ba3/BBB-) due Nov. 30, 2029 to par from 99.75, a market source said.

As before, the term loan is priced at SOFR+10 bps CSA plus 250 bps with a 0.5% floor, and has 101 soft call protection for six months.

Commitments/consents are due at 3 p.m. ET on Wednesday, accelerated from 5 p.m. ET on Thursday, the source added.

Morgan Stanley Senior Funding Inc. is leading the deal. Citigroup Global Markets Inc. is the administrative agent.

The term loan will be used to reprice an $845.75 million senior secured covenant-lite first-lien term loan B due Nov. 30, 2029 down from SOFR+10 bps CSA plus 325 bps with a 0.5% floor.

Four Seasons is a Toronto-based luxury hotels company.

Barnes tweaks timing

Barnes Group accelerated the commitment deadline for its $600 million seven-year term loan B (Ba3/BB) to 4 p.m. ET on Wednesday from noon ET on Thursday, according to a market source.

Talk on the term loan is SOFR+10 bps CSA plus 350 bps with a 0% floor, an original issue discount of 98.5 to 99 and 101 soft call protection for six months

BofA Securities Inc., Citizens Bank, JPMorgan Chase Bank, Wells Fargo Securities LLC, PNC Capital Markets, TD Securities (USA) LLC, Truist Securities, HSBC Securities (USA) Inc. and US Bank are leading the deal that will be used to help fund the acquisition of MB Aerospace for about $740 million, for working capital, for capital expenditures and for other general corporate purposes.

Closing is expected in the fourth quarter, subject to regulatory approvals and other customary conditions.

Barnes is a Bristol, Conn.-based developer of advanced processes, automation solutions and applied technologies for industries ranging from medical and personal care to mobility, packaging, and aerospace. MB Aerospace is a Motherwell, U.K.-based provider of precision aero-engine component manufacturing and repair services.

Entegris holds call

Entegris held a lender call at noon ET on Tuesday, launching a $2,318,499,072.05 senior secured covenant-lite first-lien term loan B due July 06, 2029 at talk of SOFR plus 250 bps with a 0% floor, a par issue price and 101 soft call protection for six months, a market source said.

Commitments/consents are due at 5 p.m. ET on Aug. 16, the source added.

Morgan Stanley Senior Funding Inc. is the left lead on the deal that will be used to reprice an existing term loan B due 2029 down from SOFR plus 275 bps with a 0% floor.

Entegris is a Billerica, Mass.-based supplier of advanced materials and process solutions for the semiconductor and other high-tech industries.

ECL guidance

ECL Entertainment came out with talk of SOFR plus 475 bps to 500 bps with a 0.75% floor and an original issue discount of 98 on its $380 million seven-year covenant-lite term loan B (B2/B+) that launched with a call in the morning, according to a market source.

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

Commitments are due at 5 p.m. ET on Aug. 16.

Deutsche Bank Securities Inc. and Citizens are leading the deal. Citizens is the administrative agent.

The term loan will be used with a new revolving credit facility to refinance the company’s existing capital structure.

ECL is a regional gaming company focused on the Nashville, Knoxville and Southern Kentucky markets.

Epicor talk

Epicor Software held its lender call in the afternoon and announced talk on its non-fungible $350 million incremental term loan at SOFR plus 425 bps with a 0.75% floor, an original issue discount of 98.5 and 101 soft call protection for six months, a market source said.

Commitments are due at 5 p.m. ET on Aug. 15, the source added.

KKR Capital Markets is leading the deal that will be used to repay some second-lien term loan borrowings and floating-rate notes, and for general corporate purposes.

Epicor is an Austin, Tex.-based provider of enterprise business software services.

Kymera launces

Kymera launched during the session a non-fungible $100 million incremental term loan due October 2025 talked at SOFR plus 600 bps to 625 bps with a 0.5% floor and an original issue discount of 95 to 96, according to a market source.

Goldman Sachs Bank USA and M&T Bank are leading the deal that will be used to pay down borrowings under the company’s ABL facility, put cash on the balance sheet, and pay related fees and expenses.

With the new loan, the company is seeking an amendment to its credit agreement to add J. Crew, Chewy and Serta protections, the source continued.

Commitments and amendment signature pages are due at noon ET on Friday, the source added.

Palladium Equity Partners is the sponsor.

Kymera is a Research Triangle Park, N.C.-based specialty materials manufacturer and service provider, specializing in metal based powders, custom alloys and coatings across a wide range of end markets.

StandardAero joins calendar

StandardAero emerged with plans to hold a lender call at 11 a.m. ET on Wednesday to launch a $2.575 billion first-lien term loan due August 2028, a market source remarked.

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

Commitments/consents are due at noon ET on Aug. 16, the source added.

UBS Investment Bank and RBC Capital Markets are leading the deal that will be used to amend and extend an existing first-lien term loan by about 2½ years and refinance an existing 2021 incremental first-lien term loan into the new tranche.

StandardAero is a Scottsdale, Ariz.-based provider of aircraft engine maintenance, repair and overhaul services for the aerospace and defense industries.

Michael Baker on deck

Michael Baker set a lender call for 2 p.m. ET on Wednesday to launch a fungible $125 million incremental first-lien term loan due December 2028 that is talked at SOFR plus 500 bps with a 0.75% floor and an original issue discount of 98.8, according to a market source.

UBS Investment Bank is the left lead on the deal, which will be used to fund an acquisition and to repay borrowings under the company’s ABL facility.

Pro forma for the transaction, the term loan will total $420.5 million.

Michael Baker is a Pittsburgh-based provider of engineering and consulting services, focused on complex infrastructure challenges.

Fund flows

In other news, actively managed loan fund flows on Monday were positive $13 million and loan ETFs were positive $5 million, market sources said.

Outflows for loan funds week-to-date total an estimated $26 million, compared to outflows in the prior week of $278 million, sources added.

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