Ineos Quattro, Ryan, Howden Group, Colibri, Thor Industries break; Hertz accelerated

By Sara Rosenberg

New York, Nov. 9 – Ineos Quattro upsized its euro term loan B and finalized the size of its U.S. term loan B, and Ryan LLC reduced the size of its first-lien delayed-draw term loan, set pricing on the funded and delayed-draw term loan debt at the high end of talk and widened the original issue discount, and then these deals freed to trade on Thursday.

Also, Howden Group Holdings Ltd. (Hyperion Refinance Sarl) firmed the issue price on its add-on term loan at the tight end of revised guidance before breaking for trading, and deals from Colibri and Thor Industries Inc. made their way into the secondary market as well.

In more happenings, Hertz Corp. moved up the commitment deadline for its incremental term loan B, NorthStar Group Services Inc. released price talk on its first-lien term loan in connection with its lender call, and System One joined the near-term new issue calendar.

Ineos tweaked

Ineos Quattro lifted its euro term loan B due March 2029 to €875 million from a revised size of roughly €800 million and an initial size of €850 million, and firmed its U.S. term loan B due March 2029 size at $1.1 billion, from revised talk of roughly $1.1 billion and initial talk of roughly $1.25 billion, according to a market source.

As before, the U.S. term loan is priced at SOFR+10 basis points CSA plus 425 bps with a 0% floor and an original issue discount of 97, the euro term loan is priced at Euribor plus 450 bps with a 0% floor and a discount of 97, and both loans have 101 soft call protection for one year.

Earlier in syndication, the original issue discount on both term loans was set at the wide end of the 97 to 98 talk, and the MFN was modified.

JPMorgan Chase Bank is the left lead bookrunner on the U.S. term loan. BNP Paribas, Citigroup Global Markets Inc. and JPMorgan are the joint physical bookrunners and joint global coordinators on the euro term loan. Credit Agricole, CCB, Commerzbank, FAB, Goldman Sachs (joint global coordinator), HSBC Securities, ING, ICBC, KBC and Mizuho are joint bookrunners. JPMorgan is the administrative agent.

Recommitments for Ineo’s euro term loan were due at 11:15 a.m. ET on Thursday, and books for the U.S. term loan closed at 9 a.m. ET on Thursday.

Ineos starts trading

Following the commitment deadlines, Ineos’ U.S. term loan made its way into the secondary market, with levels quoted at 97 bid, 97¾ offered, another source added.

The new loans will be used with $400 million of senior secured notes and €525 million of senior secured notes to partially refinance existing U.S. and euro term loan B borrowings due 2026, to fund the acquisition of the Eastman Texas City site, including the 600kt Acetic Acid plant and all associated third-party activities, from Eastman Chemical Co. for $500 million, to partially refinance other debt due 2026, and to pay transaction fees and expenses.

Closing on the acquisition is expected this year, subject to regulatory approvals.

Ineos Quattro is a chemicals company.

Ryan reworked, breaks

Ryan scaled back its first-lien delayed-draw term loan to $100 million from $190 million, shortened the availability period to 12 months from 24 months, and changed the ticking fees to half the margin for days 31 to 60 and the full margin thereafter, from half the margin for days 61 to 120 and the full margin thereafter, a market source remarked.

Also, pricing on the delayed-draw term loan and on the $950 million seven-year first-lien term loan finalized at SOFR plus 450 bps, the high end of the SOFR plus 425 bps to 450 bps talk, and the original issue discount was moved to 98 from talk in the range of 98.5 to 99, the source continued.

The term loan debt still has a 0.5% floor and 101 soft call protection for six months.

In the afternoon, the strip of funded and delayed-draw term loan debt freed to trade, with levels quoted at 98¾ bid, 99½ offered, another source added.

Jefferies LLC, SMBC, RBC Capital Markets, Antares Capital, BMO Capital Markets, BofA Securities Inc., JPMorgan Chase Bank and MUFG are leading the term loans (B2/B+) that will be used to refinance existing debt and finance acquisitions under letters of intent.

Ryan is a Dallas-based tax services and software provider.

Howden updated, trades

Howden Group set the original issue discount on its fungible $585 million add-on term loan (B2) due 2030 at 99.25, the tight end of revised talk of 99 to 99.25 and tighter than initial talk of 98 to 98.5, a market source said.

Pricing on the add-on term loan is SOFR plus 400 bps with a 0.5% floor.

Previously in syndication, the add-on term loan was upsized from $555 million.

During the session, the add-on term loan broke for trading, with levels quoted at 99½ bid, par offered, another source added.

JPMorgan Chase Bank, Morgan Stanley Senior Funding Inc., Barclays, RBC Capital Markets, NatWest, HSBC Securities (USA) Inc., Lloyds, Citigroup Global Markets Inc. and ING are leading the deal. Morgan Stanley is the administrative agent.

The add-on term loan will be used to partially repay a private loan and to fund the company’s locked account.

Howden Group is a London-based insurance intermediary group.

Colibri hits secondary

Colibri’s non-fungible $490 million incremental covenant-lite first-lien term loan (B3/B) due March 10, 2029 began trading in the morning, with levels quoted at 97 5/8 bid, 98 3/8 offered, according to a market source.

Pricing on the incremental term loan is SOFR plus 500 basis points with a 0.75% floor and it was sold at an original issue discount of 97.5. The debt has 101 soft call protection for six months.

During syndication, the incremental term loan was upsized from $400 million.

Golub Capital, Jefferies LLC and Capital One are leading the deal that will be used to fund two acquisitions and repay an existing second-lien term loan.

Colibri, a Gridiron Capital LLC portfolio company, is a St. Louis-based provider of career lifecycle management and mandatory professional education solutions.

Thor frees up

Thor Industries’ $450 million senior secured term loan B due November 2030 broke as well, with levels quoted at par bid, par ½ offered, a market source said.

Pricing on the Elkhart, Ind.-based recreational vehicles manufacturer’s term loan is SOFR plus 275 bps with a 0% floor and it was sold at an original issue discount of 99.5.

The company is also getting a roughly €330 million ($350 million equivalent) senior secured term loan B due November 2030 priced at Euribor plus 300 bps with a 0% floor and issued at a discount of 99.

Both term loans (Ba2/BBB-) have 101 soft call protection for six months.

During syndication, pricing on the U.S. term loan was lowered from talk in the range of SOFR plus 300 bps to 325 bps and the discount was tightened from 99, and pricing on the euro term loan was reduced from talk in the range of Euribor plus 325 bps to 350 bps.

JPMorgan Chase Bank is the physical bookrunner on the U.S. loan. Barclays and JPMorgan are the physical bookrunners on the euro. BMO Capital Markets and U.S. Bank are bookrunners. JPMorgan is the agent.

Proceeds will be used to amend and extend the company’s existing $272 million and €441 million term loan Bs due February 2026, to pay related fees and expenses, and for general corporate purposes.

Hertz moves deadline

In other news, Hertz accelerated the commitment deadline for its non-fungible $400 million incremental senior secured term loan B (Ba3//BB) due June 30, 2028 to noon ET on Monday from noon ET on Wednesday, a market source remarked.

Talk on the incremental term loan is SOFR plus 375 bps to 400 bps with a 0% floor, an original issue discount of 97.5 to 98 and 101 soft call protection for six months.

Barclays, Goldman Sachs Bank USA and others to be announced are leading the deal that will be used to repay outstanding borrowings under the company’s existing senior secured revolver due 2026, to pay transaction related fees and expenses, and for general corporate purposes.

Hertz is an Estero, Fla.-based car rental company.

NorthStar guidance

NorthStar Group held its lender call on Thursday and announced price talk on its $710 million five-year covenant-lite first-lien term loan (B2/B+) at SOFR plus 525 bps with a 0% floor and an original issue discount of 97.5 to 98, according to a market source.

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

The company’s $835 million of credit facilities also include a $125 million four-year ABL revolver.

Commitments are due at 5 p.m. ET on Nov. 20.

Macquarie Capital (USA) Inc. is leading the deal that will be used to refinance the company’s existing credit facilities.

NorthStar, a J.F. Lehman & Co. portfolio company, is a New York-based provider of diversified infrastructure and environmental services.

System One on deck

System One emerged with plans to hold a lender call at 11 a.m. ET on Monday to launch a fungible $65 million add-on covenant-lite term loan B due March 2028, a market source said.

Truist Securities is leading the deal that will be used to fund an acquisition.

System One, an Oaktree Capital Management portfolio company, is a Pittsburgh-based provider of specialized workforce solutions and integrated services.

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