Ascend Performance, Hyperion Materials & Technologies term loans free to trade

By Sara Rosenberg

New York, Aug. 16 – Ascend Performance Materials’ term loan B made its way into the secondary market on Friday and was seen trading above its original issue discount.

Also, Hyperion Materials & Technologies modified original issue discounts and Libor floors on its first- and second-lien term loans, and then the debt freed up as well.

Ascend hits secondary

Ascend Performance Materials’ $1.1 billion seven-year covenant-lite term loan B (B1/BB-) broke for trading on Friday, with levels quoted at 98¾ bid, 99½ offered, according to a market source.

Pricing on the term loan is Libor plus 525 basis points with a 1% Libor floor, and it was sold at an original issue discount of 98. The debt has 101 soft call protection for one year.

During syndication, pricing on the term loan was increased from talk in the range of Libor plus 475 bps to 500 bps, the Libor floor was revised from 0%, the discount widened from 99, the call protection was extended from six months and a number of changes were made to documentation.

BofA Securities Inc., Goldman Sachs Bank USA, HSBC Securities (USA) Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC are leading the loan that will be used to refinance existing debt and fund a dividend.

Ascend Performance Materials is a Houston-based provider of chemicals, fibers and plastics.

Hyperion tweaked, breaks

Hyperion Materials changed the original issue discount on its $240 million seven-year first-lien term loan to 98 from 99 and the discount on its $100 million eight-year second-lien term loan to 97 from 98, a market source remarked.

Additionally, the Libor floor on both term loans was revised to 1% from 0%.

As before, the first-lien term loan is priced at Libor plus 550 bps and has 101 soft call protection for one year, and the second-lien term loan is priced at Libor plus 900 bps and has hard call protection of 102 in year one and 101 in year two.

The company’s $405 million of credit facilities also include a $65 million five-year revolver.

During the session, the bank debt began trading, with the first-lien term loan quoted at 98 bid, 99 offered and the second-lien term loan quoted at 97 bid, 98 offered, the source added.

UBS Investment Bank and KKR Capital Markets are leading the deal that will be used to refinance existing debt, with UBS the left lead on the first-lien debt and KKR the left lead on the second-lien debt.

Hyperion Materials is a Worthington, Ohio-based provider of hard and super-hard materials.

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