Four Seasons, SolarWinds term loans free to trade; Focus Financial revised again

By Sara Rosenberg

New York, Nov. 17 – Four Seasons Hotels and Resorts finalized the issue price on its first-lien term loan B at the tight end of revised talk, and SolarWinds Inc. set the spread on its first-lien term loan at the low end of guidance and modified the original issue discount, and then both of these deals broke for trading on Thursday.

In other happenings, Focus Financial Partners LLC shifted some fund to its term loan B from its term loan A for a second time and revised the issue price on the term B debt, and Amynta Group approached lenders with an incremental term loan B.

Four Seasons updated, breaks

Four Seasons Hotels and Resorts set the original issue discount on its $850 million seven-year senior secured first-lien term loan B (Ba3/BB+) at 98.5, the tight end of revised talk of 98 to 98.5 and tighter than initial talk of 97, according to a market source.

The term loan is priced at SOFR+10 basis points CSA plus 325 bps with a 0.5% floor, and has 101 soft call protection for six months.

Previously in syndication, the spread on the term loan finalized at the low end of the SOFR plus 325 bps to 350 bps talk.

Late Thursday, the term loan freed to trade, with levels quoted at 99 bid, par offered, another source added.

Citigroup Global Markets Inc. and Morgan Stanley Senior Funding Inc. are leading the deal that will refinance an existing senior secured first-lien term loan due November 2023 and pay related fees and expenses.

Closing is expected on Nov. 30.

Four Seasons is a Toronto-based luxury hotels company.

SolarWinds tweaked, trades

SolarWinds firmed pricing on its $1.245 billion amended and extended first-lien term loan (B1/B+) due 2027 at SOFR plus 400 bps, the low end of the SOFR plus 400 bps to 425 bps talk, and adjusted the original issue discount to 97.5 from 97, a market source remarked.

As before, the term loan has a 0% floor, 101 soft call protection for six months and no CSA.

Recommitments were due at 12:15 p.m. ET on Thursday and the term loan broke for trading in the afternoon, with levels quoted at 98 bid, 98½ offered, another source added.

JPMorgan Chase Bank, Goldman Sachs Bank USA and Wells Fargo Securities LLC are leading the deal. Credit Suisse is the administrative agent.

The loan will be used to extend by three years an existing term loan due February 2024 that is priced at Libor plus 275 bps with a 0% floor.

With this transaction, $350 million of the term loan is being repaid.

SolarWinds is an Austin, Tex., provider of IT network and systems infrastructure management software.

Focus reworked

Focus Financial Partners lifted its term loan B due June 30, 2028 to $1.76 billion from a revised amount of $1.75 billion and an initial size of $1.65 billion, and scaled back its delayed-draw term loan A to $240 million from a revised amount of $250 million and an initial size of $350 million, according to a market source.

Additionally, the company revised the original issue discount on the term loan B to 98.25 from revised talk of 98 and initial talk in the range of 97 to 98, the source said.

The term loan B is still priced at SOFR plus 325 bps with a 0.5% floor, and still has 101 soft call protection for six months and no CSA.

Recommitments were due at 5 p.m. ET on Thursday, the source added.

Focus leads

RBC Capital Markets and Stone Point Capital Markets are co-lead arrangers on Focus Financial’s term loans (Ba3/BB-), and joint lead arrangers include BMO Capital Markets, Truist Securities, BofA Securities Inc., Capital One, Fifth Third, MUFG, Citizens and Huntington.

The term loans will be used to refinance existing debt, including an existing first-lien term loan, and for general corporate purposes, which may include acquisitions.

The company is also extending its $650 million revolver from June 2024.

Focus Financial is a New York-based partnership of independent, fiduciary wealth management firms operating in the registered investment advisor industry.

Amynta holds call

Amynta Group emerged in the morning with plans to hold a lender call at 1 p.m. ET on Thursday to launch a non-fungible $150 million incremental term loan B (B2/B-) due February 2025 talked at SOFR plus 475 bps to 500 bps with a 0% floor, an original issue discount of 94 to 95 and 101 soft call protection for six months, a market source remarked.

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

BofA Securities Inc. is leading the deal that will be used to repay revolver borrowings and add cash to the balance sheet.

Amynta Group is a N.Y.-based provider of property, casualty and specialty insurance as well as warranty and protection.

Fund flows

In other news, actively managed loan fund flows on Wednesday were negative $142 million and loan ETFs were positive $69 million, according to market sources.

The tracking estimate for Thursday night’s weekly Lipper numbers for loans are outflows totaling $135 million, sources added.

Despite more than $300 million of ETF inflows, loan funds are tracking an outflow for the twenty second time in the last 23 weeks.

Loan indices mixed

IHS Markit’s iBoxx loan indices were mixed on Wednesday, with the Leveraged Loan indexes (MiLLi) closing out the day up 0.04% and the Liquid Leveraged Loan indices (LLLi) closing out the day down 0.01%.

Month to date, the MiLLi is up 1.24% and year to date its down 1.55%. The LLLi is up 1.34% month to date and down 2.14% year to date.

Average secondary market bids in the U.S. on Wednesday were 92.50, down 0.02% from the previous day and down 4.49% year to date.

According to the IHS Markit data, some of the top advancers on Wednesday were Flora Food’s March 2018 U.S. covenant-lite term loan B2 at 90.83, up from 87.01, Epic Crude’s March 2019 term loan B at 87.58, up from 85.50, and Rackspace Hosting’s February 2021 covenant-lite term loan B at 64.75, up from 63.34.

Some top decliners on Wednesday were Veritas’ March 2021 U.S. covenant-lite term loan B at 74.40, down from 80.57, Fox US Bidco/Robertshaw’s February 2018 covenant-lite term loan B at 73.63, down from 78.33, and Envision Healthcare’s July 2022 second out covenant-lite term loan at 38.67, down from 40.

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