Healthcare Royalty, Asurion, ZoomInfo break; Flutter, Entain updates surface; ATI pulls loan

By Sara Rosenberg

New York, July 15 – Healthcare Royalty Inc. (HCRX Investments HoldCo LP) increased the size of its term loan B, trimmed the spread and tightened the original issue discount, Asurion LLC moved some funds between its term loans and updated pricing on the B-4 tranche, and ZoomInfo LLC finalized the original issue discount on its add-on term loan B at the tight end of talk, and then all of these deals freed to trade on Thursday.

In more happenings, Flutter Entertainment plc firmed pricing on its U.S. and euro term loans at the low end of guidance and modified the original issue discount on the U.S. tranche, Entain plc upsized its U.S. term loan B and modified the spread as well as the issue price, and cancelled plans for a new euro term loan B, and ATI Physical Therapy (ATI Holdings Acquisition Inc.) withdrew its first-lien term loan from market.

Additionally, RxBenefits Inc. (RXB Holdings Inc.), Allen Media LLC and Hudson River Trading LLC released price talk with launch, and Hyperion Materials & Technologies joined the near-term primary calendar.

Healthcare revised, trades

Healthcare Royalty raised its seven-year senior secured covenant-lite term loan B to $850 million from $750 million, lowered pricing to Libor plus 225 basis points from talk in the range of Libor plus 250 bps to 275 bps and changed the original issue discount to 99.75 from 99.5, according to a market source.

As before, the term loan has a 0.5% Libor floor and 101 soft call protection for six months.

Recommitments were due at 1 p.m. ET on Thursday and the term loan B began trading in the afternoon, with levels quoted at 99 7/8 bid, par 3/8 offered, another source added.

Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Truist, BMO Capital Markets, SVB, Raymond James and Stifel are leading the deal that will be used with $650 million of unsecured notes, downsized from $750 million, and an initial public offering of common stock to repurchase Holdings LP class B units as part of a reorganization buyback transaction.

The company also plans on getting a new senior secured revolver.

Healthcare Royalty, a Stamford, Conn.-based royalty acquisition company focused on the biopharmaceutical industry, expects to close on the term loan late this month.

Asurion modified, breaks

Asurion scaled back its second-lien term loan B-4 due January 2029 to $2.675 billion from $2.8 billion, firmed the spread at Libor plus 525 bps, the low end of the Libor plus 525 bps to 550 bps talk, and set the original issue discount at 99, the wide end of the 99 to 99.5 talk, a market source said.

The second-lien term loan B-4 still has a 0% Libor floor and call protection of 102 in year one and 101 in year two.

As for the add-on first-lien term loan B-9 due 2027, it was upsized to $625 million from $500 million, with pricing remaining at Libor plus 325 bps with a 0% Libor floor and a discount of 98.5.

During the session, the loans freed to trade, with the second-lien term loan B-4 quoted at 99½ bid, par offered and the add-on first-lien term loan B-9 quoted at 98 5/8 bid, 98 7/8 offered, another source added.

BofA Securities Inc. is the left lead on the deal that will be used to fund a dividend.

Asurion is a Nashville-based provider of technology protection services.

ZoomInfo updated, frees

ZoomInfo finalized the original issue discount on its $200 million add-on covenant-lite term loan B (Ba2/BB) due Feb. 1, 2026 at 99.5, the tight end of the 99 to 99.5 talk, a market source remarked.

Like the existing term loan, the add-on term loan is priced at Libor plus 300 bps with a 0% Libor floor.

The add-on term loan broke for trading late in the day, with levels quoted 99¾ bid, par ¼ offered, a trader added.

Morgan Stanley Senior Funding Inc., Barclays, JPMorgan Chase Bank, BofA Securities Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Wells Fargo Securities LLC, Deutsche Bank Securities Inc., Citigroup Global Markets Inc., Mizuho and RBC Capital Markets are leading the deal that will be used with $300 million of senior unsecured notes to repay revolver borrowings incurred to finance a portion of the roughly $575 million acquisition of Chorus.ai, to pay fees and expenses related to the transaction, to pay the tax gross up and for general corporate purposes.

Closing is expected on Tuesday.

ZoomInfo is a Vancouver, Wash.-based provider of sales and marketing data. Chorus is a San Francisco-based conversation intelligence platform.

Flutter tweaked

Flutter Entertainment set pricing on its $2.938 billion five-year covenant-lite term loan B at Libor plus 225 bps, the low end of the Libor plus 225 bps to 250 bps talk, and revised the original issue discount to 99.75 from 99.5, according to a market source.

Also, the company set pricing on its €507 million five-year covenant-lite term loan B at Euribor plus 250 bps, the low end of the Euribor plus 250 bps to 275 bps talk, the source said.

Both term loans (Ba1/BBB-/BBB) still have a 0% floor and 101 soft call protection for six months, and the euro term loan still has a discount of 99.5.

Recommitments for the U.S. term loan were due at 11:30 a.m. ET on Thursday and allocations are expected on Friday, the source added.

Flutter lead banks

Deutsche Bank Securities Inc. is the U.S. sole physical bookrunner on Flutter Entertainment’s transaction, and Barclays and JPMorgan Chase Bank are joint physical bookrunners on the euro loan. AIB, BofA Securities Inc., BMO Capital Markets, Bank of Ireland, Goldmans Sachs, Lloyds, Mediobanca, Natwest Markets and Santander are bookrunners.

The loans will be used to fully redeem the company’s existing unsecured notes and for general corporate purposes, and to extend by one year and reprice an existing $1.438 billion covenant-lite term loan B and an existing €507 million covenant-lite term loan B.

The $1.5 billion of incremental term loan debt raised through this transaction for the notes redemption was described at launch as U.S. and euro debt, with the currency split to be determined, but has since finalized as all U.S. debt.

Flutter Entertainment is a Dublin-based sports betting and gaming operator.

Entain reworked

Entain lifted its U.S. covenant-lite term loan B (Ba2/BB) due March 2027 to $1.125 billion from $774 million and terminated plans for a €300 million covenant-lite term loan B due July 2028, according to a market source.

Also, pricing on the U.S. term loan was trimmed to Libor plus 250 bps from Libor plus 275 bps and the original issue discount was tightened to 99.75 from 99.5, the source said. The spread is subject to a leverage-based grid.

The 0.5% Libor floor and 101 soft call protection for six months on the U.S. term loan were unchanged.

Talk on the eliminated euro term loan was Euribor plus 275 bps to 300 bps with a 0% floor, a discount of 99.5 and 101 soft call protection for six months.

Commitments continue to be due at 10 a.m. ET on Friday, the source added.

Morgan Stanley Senior Funding Inc. is the left lead on the U.S. term loan that will be used to refinance an existing $774 million term loan, to enhance liquidity and for ongoing corporate development.

Entain is a London-based online-led sports-betting and gaming group.

ATI tables loan

ATI Physical Therapy decided not to move forward with its $570 million seven-year first-lien term loan (B1/B) that was launched into syndication last week, a market source said.

The term loan had been talked at Libor plus 325 bps to 350 bps with a 0.5% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

Barclays was the left lead on the deal, which was going to be used to refinance the company’s existing capital structure.

ATI is a Bolingbrook, Ill.-based outpatient physical therapy provider.

RxBenefits guidance

RxBenefits held its lender call on Thursday morning and announced price talk on its $415 million first-lien term loan due Dec. 18, 2027 at Libor plus 475 bps with a 0.75% Libor floor, according to a market source.

Of the total term loan amount, $115 million is incremental debt that is talked with an original issue discount of 99.5, and the remaining $300 million is for a repricing and is talked with a par issue price, the source said.

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

Commitments are due at noon ET on July 29, the source added.

Barclays, Deutsche Bank Securities Inc. and Goldman Sachs Bank USA are leading the deal.

The incremental loan will be used with a privately placed $45 million add-on second-lien term loan and rollover equity to fund an acquisition. The repricing will take the existing term loan down from Libor plus 525 bps with a 0.75% Libor floor.

Advent International and Great Hill Partners are the sponsors.

RxBenefits is a Birmingham, Ala.-based pharmacy benefits optimizer for the employee benefit industry.

Allen Media talk

Allen Media came out with original issue discount talk of 99 on its fungible $210 million add-on term loan B that launched with a call in the afternoon, a market source remarked.

Pricing on the add-on term loan B is Libor plus 550 bps with a 0% Libor floor, in line with existing term loan B pricing.

Of the total add-on term loan amount, $100 million is a delayed-draw tranche.

Commitments are due at noon ET on July 26, the source added.

RBC Capital Markets is leading the deal, which will be used to help fund the acquisition of certain television stations owned by Quincy Media Inc. for $380 million.

Closing is expected on the third quarter.

Allen Media is a Los Angeles-based media, content and technology company.

Hudson River holds call

Hudson River Trading hosted a lender call during the session to launch a fungible $200 million add-on term loan B (BB-) talked with an original issue discount of 98.5 to 98.75, a market source said.

Pricing on the add-on term loan is Libor plus 300 bps with a 0% Libor floor.

Commitments are due at noon ET on July 22, the source added.

BofA Securities Inc., Goldman Sachs Bank USA and JPMorgan Chase Bank are leading the deal that will be used for general corporate purposes.

Hudson River Trading is a New York-based electronic market maker and liquidity provider.

Hyperion Materials on deck

Hyperion Materials & Technologies emerged with plans to hold a lender call on Monday to launch $465 million of credit facilities, according to a market source.

The facilities consist of a $75 million revolver and a $390 million first-lien term loan, the source said.

UBS Investment Bank and KKR Capital Markets are leading the deal that will be used to refinance existing debt.

Hyperion Materials, a KKR portfolio company, is a Worthington, Ohio-based solutions provider of effective applications for hard and super-hard materials.

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