CoAdvantage, Jones DesLauriers free to trade; Asurion changes emerge; Avient sets talk

By Sara Rosenberg

New York, July 28 – CoAdvantage (AQ Carver Buyer Inc.) increased the size of its term loan B, set the spread at the low end of talk and made some revisions to documentation, and Jones DesLauriers Insurance Management Inc. (Navacord) raised the size of its first-lien term loan B and modified the issue price, and then these deals broke for trading on Friday.

Also, Asurion LLC upsized its add-on term loan B-11 and tightened the original issue discount, Avient Corp. Inc. released price talk on its term loan B-7 in connection with its lender call, and Talen Energy Supply LLC joined the near-term primary calendar.

CoAdvantage revised

CoAdvantage raised its six-year term loan B (B2/B) to $575 million from $550 million and finalized pricing at SOFR plus 550 basis points, the low end of the SOFR plus 550 bps to 575 bps talk, according to a market source.

Also, the incremental and portability ratios were increased by 0.25x to reflect the term loan upsizing, MFN was finalized at 50 bps with no sunset, the EBITDA definition was revised for a 25% synergy cap to include restructuring, business optimization, and extraordinary/non-recurring charges, and the company added a requirement for quarterly lender calls, the source continued.

As before, the term loan has 10 bps CSA, a 1% floor, an original issue discount of 98 and 101 hard call protection for one year, and portability is also subject to B3/B- corporate ratings with stable outlooks, maximum 50% loan-to-value, sponsor with $1 billion assets under management, and a two-year expiry.

CoAdvantage hits secondary

Recommitments for CoaAdvantage’s term loan were due at 10:30 a.m. ET on Friday and the debt freed to trade later in the day, with levels quoted at 98¼ bid, 99¼ offered, another source added.

Deutsche Bank Securities Inc., Antares Capital and Goldman Sachs Bank USA are leading the deal that will be used to refinance first- and second-lien debt and to pay a dividend.

CoAdvantage is a Tampa, Fla.-based professional employer organization and a provider of strategic human resource solutions.

Jones updated, breaks

Jones DesLauriers Insurance Management increased its first-lien term loan B due March 16, 2030 to $375 million from $350 million and moved the original issue discount to 99.25 from 99, a market source said.

Pricing on the term loan remained at SOFR plus 425 bps with a 25 bps step-down at B2/B ratings and a 0% floor, and the debt still has 101 soft call protection for six months and 0 bps CSA.

The term loan B emerged in the secondary market during the session, with levels quoted at 99 3/8 bid, par 3/8 offered, another source added.

BofA Securities Inc. is the left lead on the deal that will be used to refinance the company’s existing first-lien Canadian term loan due March 2028 and for general corporate purposes, including near-term acquisition opportunities.

Jones DesLauriers is a Mississauga, Ont., commercial insurance broker.

Asurion tweaked

Asurion lifted its fungible add-on term loan B-11 due Aug. 19, 2028 to $600 million from $550 million and adjusted the original issue discount to 95.5 from talk in the 95 area, according to a market source.

Like the existing term loan B-11, the add-on term loan is priced at SOFR+10 bps CSA plus 425 bps with a 0% floor.

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

Recommitments were due at 10 a.m. ET on Friday, the source added.

BofA Securities Inc. is the left lead on the deal that will be used with cash from the balance sheet to refinance the company’s existing term loan B-7 and pay fees and expenses.

Asurion is a Nashville-based provider of insurance for smartphones, tablets, consumer electronics, appliances, satellite receivers and jewelry.

Avient guidance

Avient held its lender call on Friday morning and announced talk on its $832 million first-lien senior secured covenant-lite term loan B-7 (Ba1/BB+) due Aug. 29, 2029 at SOFR plus 250 bps with a 0.5% floor and 101 soft call protection for six months, a market source remarked.

Existing term loan B-5 lenders and new money lenders are being offered the term loan B-7 with an original issue discount of 99.75, and existing term loan B-6 lenders are being offered the term loan B-7 at par, the source said.

Morgan Stanley Senior Funding Inc., JPMorgan Chase Bank and Citigroup Global Markets Inc. are leading the deal that will be used to refinance the company’s existing term loan B-5 due 2026 and term loan B-6 due Aug. 29, 2029 and to pay related fees and expenses.

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

Cashless settlement option/cashless roll are available to existing term loan B-5 and B-6 lenders.

Avient is an Avon Lake, Ohio-based provider of specialized and sustainable material solutions.

Talen on deck

Talen Energy Supply set a lender call for 10:30 a.m. ET on Monday to launch a new loan transaction, according to a market source.

Citigroup Global Markets Inc. is leading the deal.

Talen Energy is a Houston-based power generation and infrastructure company.

Fund flows

In other news, actively managed loan fund flows on Thursday were negative $17 million and loan ETFs were positive $16 million, market sources said.

Loan funds reported weekly outflows totaling $58 million, including positive $27 million ETFs, sources continued. As a result, flows are about balanced now over the past eight reporting weeks, net negative $18 million, flowing a stretch of $57 billion of outflows equating to 40% of AUM since May 2022.

Year to date outflows for loan funds total $18.8 billion, with negative $824 million ETFs, sources added.

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