Upfield firms tranche sizes; Ontic, Omnia, Odyssey Logistics, AlixPartners reveal price talk

By Sara Rosenberg

New York, July 10 – In the primary market on Monday, Upfield finalized the sizes of its amended and extended U.S., euro and sterling term loan Bs, and outlined sizes on the non-extended stub tranches.

Also, Ontic (Bleriot US Bidco Inc.), Omnia Partners LLC, Odyssey Logistics & Technology Corp. and AlixPartners LLP released price talk on their loan transactions in connection with lender calls.

Additionally, One Toronto Gaming and IQ-EQ (Saphilux Sarl) joined this week’s new-issue calendar.

Upfield updated

Upfield set the size of its U.S. extended term loan B due January 2028 at $797 million and is leaving a $40 million non-extended tranche in place, firmed its euro extended term loan B due January 2028 at €1.872 billion, and a €527 million non-extended tranche is remaining in place, and finalized its sterling extended term loan B due January 2028 at £468 million, and is keeping a £164 million non-extended tranche in place, a market source remarked.

The U.S. extended term loan B is priced at SOFR plus 475 basis points with an original issue discount of 97.5, the euro extended term loan B is priced at Euribor plus 500 bps with a discount of 97.5 and the sterling extended term loan B is priced at Sonia plus 575 bps with an original issue discount of 97. All of the term loans have 101 soft call protection for six months.

Previously in syndication, pricing on the U.S. loan firmed at the low end of the SOFR plus 475 bps to 500 bps talk and pricing on the euro loan was set at the wide end of the Euribor plus 475 bps to 500 bps talk.

Upfield lead banks

KKR Capital Markets is the sole physical bookrunner on Upfield’s term loans (B1/B/B+). BNP Paribas Securities Corp., Citigroup Global Markets Inc., Credit Agricole, Credit Suisse, Goldman Sachs, HSBC Securities, ING, Mizuho, RBC Capital Markets, Societe Generale and UniCredit are joint bookrunners, and Deutsche Bank Securities Inc. is a joint bookrunner on the euro and sterling loans.

Through this transaction, the company is amending and extending a portion of its existing $833 million term loan B due July 2025 that is priced at SOFR plus 300 bps, a portion of its existing €2.375 billion term loan B due July 2025 that is priced at Euribor plus 350 bps and a portion of its existing £656 million term loan B due July 2025 that is priced at Sonia plus 400 bps.

There has been movement between tranches due to re-designations and amortization on the U.S. term loan B, therefore sum of the extended tranche size and the non-extended stub will differ from the original tranche size, the source added.

Upfield is an Amsterdam-based plant-based consumer product company.

Ontic proposed terms

Ontic held its lender call on Monday morning, launching its up to $937 million covenant-lite first-lien term loan B due October 2028, inclusive of an incremental $100 million term loan, at talk of SOFR+CSA plus 425 bps with a 0% floor and an original issue discount of 99 to 99.5, according to a market source.

CSA is 11.4 bps one-month rate, 26.2 bps three-month rate and 42.8 bps six-month rate, and the term loan has 101 soft call protection for six months.

Ontic’s up to $1.022 billion of credit facilities (B2/B) also include an $85 million revolver due July 2028.

Commitments are due at noon ET on July 19.

Nomura Securities, Barclays, Macquarie Capital (USA) Inc. and KKR Capital Markets are leading the deal that will be used to extend an existing revolver from October 2024, extend from October 2026 and combine into one tranche an existing term loan B priced at SOFR+CSA plus 400 bps with a 0% floor and an existing term loan B-2 priced at SOFR+CSA plus 450 bps with a 0% floor, and the incremental term loan will repay outstanding revolver borrowings and fund general corporate purposes.

Ontic is a provider of OEM-licensed parts and aftermarket services for mature aerospace and defense platforms.

Omnia sets talk

Omnia Partners launched on its afternoon call its $1.625 billion seven-year first-lien term loan and $155 million first-lien delayed-draw term loan, which will trade as a strip, with talk of SOFR plus 450 bps to 475 bps with a 0% floor and an original issue discount of 97.5 to 98, a market source remarked.

The term loan has 101 soft call protection for six months, delayed-draw term loan availability is up to six months after closing, subject to first-lien net leverage of 6x or less, and ticking fees on the delayed-draw term loan are half the margin from days 46 to 90 and the full margin thereafter, the source continued.

The company’s $2.03 billion of credit facilities (B2/B) also include a $250 million revolver.

Commitments are due at noon ET on July 20, the source added.

Omnia buying Premier

Omnia will use the new credit facilities to fund the acquisition of Premier Inc.’s non-health care group purchasing organization operations for about $800 million, to refinance existing debt in full, for general corporate purposes and to pay related fees and expenses.

Barclays, Fifth Third, Brinley, BNP Paribas Securities Corp., Citizens, UBS Investment Bank, Jefferies LLC and Golub Capital are leading the deal.

Closing on the acquisition is expected by early August, subject to regulatory approval and customary conditions.

Omnia, owned by TA Associates, Leonard Green & Partners and management, is a Franklin, Tenn.-based non-health care group purchasing organization.

Odyssey guidance

Odyssey Logistics came out with talk of SOFR plus 475 bps with a 0.5% floor, an original issue discount of 96.5 to 97.5 and 101 soft call protection for six months on its $501 million first-lien term loan due October 2027 shortly before its 2 p.m. ET lender call began, a market source said.

The company’s $626 million of credit facilities (B2/B) also include a $125 million revolver.

UBS Investment Bank, Credit Suisse Securities (USA) LLC, JPMorgan Chase Bank, RBC Capital Markets, Citizens Bank and KeyBanc Capital Markets are leading the deal that will be used to amend and extend the company’s existing first-lien credit facilities, while also increasing the revolver size from its current amount.

With the extension, the company’s second-lien term loan will be paid down using cash on the balance sheet.

Commitments/consents are due at 5 p.m. ET on July 19, the source added.

Odyssey Logistics is a Danbury, Conn.-based provider of multi-modal logistics services and technology solutions.

AlixPartners holds call

AlixPartners emerged in the morning with plans to hold a lender call at 1 p.m. ET to launch a $375 million incremental first-lien term loan B due Feb. 4, 2028 talked at SOFR+CSA plus 275 bps to 300 bps with a 0.5% floor, an original issue discount in the 99 area and 101 soft call protection for six months, according to a market source.

The CSA on the term loan will be 10 bps if it is non-fungible, and ARRC standard of 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate if it is fungible with the existing term loan.

Commitments are due at noon ET on Thursday, the source added.

BofA Securities Inc., HSBC Securities (USA) Inc., Goldman Sachs Bank USA and JPMorgan Chase Bank are leading the deal that will be earmarked for a distribution to shareholders before year end, but up to half of the proceeds could be prioritized for financing tuck-in acquisitions, if suitable acquisitions are completed in the interim.

AlixPartners is a New York-based team of business and consulting professionals delivering change for clients in high impact situations.

One Toronto on deck

One Toronto Gaming scheduled a lender call for 1 p.m. ET on Tuesday to launch an $800 million seven-year term loan B, a market source remarked.

Barclays is the left lead on the deal that will be used with $400 million of other senior secured debt to refinance the company’s existing capital structure, to pay related fees and expenses, and for general corporate purposes.

One Toronto Gaming, located in the greater Toronto area, is a gaming, entertainment and hospitality company operating under an equal-interest partnership between Great Canadian Gaming Corp. and Brookfield Business Partners and its institutional partners.

IQ-EQ joins calendar

IQ-EQ will hold a lender call at 9 a.m. ET on Tuesday and small group meetings on Tuesday and Wednesday to launch a €1.1 billion equivalent U.S. and euro first-lien term loan B due July 2028, with the split subject to a minimum U.S. tranche size of $500 million and a minimum euro tranche size of €500 million, according to market sources.

The U.S. term loan is talked at SOFR plus 475 bps to 500 bps with a 0.5% floor and an original issue discount of 98, and the euro term loan is talked at Euribor plus 475 bps to 500 bps with a 0% floor and a discount of 98, sources said.

Nomura is the sole physical bookrunner on the U.S. term loan. Deutsche Bank Securities Inc., HSBC, NatWest and Nomura are the joint physical bookrunners on the euro term loan. Morgan Stanley is a passive bookrunner. NatWest is the administrative agent.

The company is also getting a privately placed sterling term loan.

IQ-EQ extending

IQ-EQ will use the term loans to amend and extend an existing €499 million term loan B due July 2025, an existing €100 million equivalent U.S. term loan B due July 2025 and an existing €268 million equivalent sterling term loan B due July 2025, to repay existing debt, including the partial repayment of existing U.S. and sterling second-lien term loans due July 2026, for general corporate purposes, for acquisition activity, and to pay transaction related fees and expenses.

Cashless and cash roll consents are due at noon ET on July 18, and commitments are due at noon ET on July 19, sources added.

Astorg Asset Management is the sponsor.

IQ-EQ is an investor services and independent fund specialist.

Fund flows

In other news, actively managed loan fund flows on Friday were negative $78 million and loan ETFs were negative $50 million, market sources said.

Loan funds are seeing their largest withdrawals since late May in the new reporting week, sources added.

Outflows for loan funds year to date total $18.9 billion, with negative $1 billion ETFs.

Loan indices rise

In other news, IHS Markit’s iBoxx loan indices were stronger on Friday, with the Leveraged Loan indexes (MiLLi) closing out the day up 0.07% and the Liquid Leveraged Loan indices (LLLi) closing out the day up 0.08%.

Month to date, the MiLLi is up 0.35% and year to date it is up 6.6%, and the LLLi is up 0.31% month to date and up 6.48% year to date.

Average secondary market bids in the U.S. on Friday were 91.75, down 0.01% from the previous day and down 0.14% year to date.

According to the IHS Markit data, some of the top advancers on Friday were EyeCare Partners’ February 2020 covenant-lite term loan B at 76.08, up from 73.33, RSA Security’s April 2021 covenant-lite term loan at 85.13, up from 83.71, and Air Medical’s March 2018 covenant-lite term loan at 56, up from 55.2.

Some top decliners on Friday were Securus Technologies’ June 2017 covenant-lite term loan at 80, down from 88.97, Sandvine/Procera’s October 2018 covenant-lite term loan at 91, down from 94, and Carestream Dental’s November 2021 covenant-lite term loan at 88, down from 89.

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