Delta accelerates term B commitment deadline; US Foods, AppLovin price talk emerges

By Sara Rosenberg

New York, April 24 – In the primary market on Friday, Delta Air Lines Inc. moved up the commitment deadline for its term loan B, and US Foods Inc. and AppLovin Corp. released price talk with launch.

Delta revised the deadline on its $1.5 billion three-year first-lien senior secured term loan B (Baa2/BBB-) to noon ET on Monday from noon ET on Tuesday, according to a market source.

Price talk on the term loan is Libor plus 500 basis points with a 1% Libor floor and an original issue discount of 97, and the loan is non-callable for one year, with a make-whole call at Treasuries plus 50 bps.

The term loan has 50 bps MFN in the context of any incremental term loan issuance, amortization of 1% per annum, and maintenance covenants that include a minimum collateral coverage ratio of 1.6x tested semiannually and a minimum unrestricted liquidity threshold of $2 billion at all times.

Security is a diverse pool of slots, gates and routes collateral comprised of domestic slots at New York-JFK, New York-LaGuardia and Reagan National Airport, slots at Heathrow, London routes, other European and Latin American routes.

Barclays, J.P Morgan Securities LLC, BofA Securities, Inc., BBVA, BNP Paribas Securities Corp., Citigroup Global Markets Inc., Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc., SMBC, Standard Chartered, US Bank and Wells Fargo Securities LLC are leading Delta’s term loan, which will be used with $1.5 billion of senior secured notes for general corporate purposes and to support liquidity.

Delta is an Atlanta-based airline company.

US Foods sets talk

US Foods launched during the session its $300 million five-year senior secured covenant-lite term loan B (B3/BB) at talk of Libor plus 325 bps with 50 bps step ups per annum, a 1% Libor floor and an original issue discount of 92 to 93, a market source remarked.

The term loan has 101 soft call protection for six months, and amortization of 2.5% in years one and two, and 5% in years three and four.

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

Citigroup Global Markets and BofA Securities, Inc. are leading the deal that will be used with a portion of the proceeds from a recently priced $1 billion notes offering to fund the $970 million acquisition of Smart Foodservice Warehouse Stores from Apollo Global Management Inc., which was completed on Friday.

US Foods is a Rosemont, Ill.-based foodservice distributor. Smart Foodservice is a Portland, Ore.-based operator of cash and carry stores that serve small and mid-sized restaurants and other food business customers.

AppLovin guidance

AppLovin hosted a lender call at 11 a.m. ET, launching a $250 million non-fungible incremental term loan at talk of Libor plus 400 bps with a 0% Libor floor and an original issue discount of 94 to 95, according to a market source.

The term loan has 101 soft call protection for six months, the source said.

Commitments are due at noon ET on Wednesday.

KKR Capital Markets is the left lead arranger on the deal that will be used for general corporate purposes.

AppLovin is a Palo Alto, Calif.-based mobile monetization platform that enables performance-based user acquisition campaigns for mobile game and other app developers.

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