Imperial Dade, Atlantic Aviation, Focus Financial break; Ryman Hospitality changes surface

By Sara Rosenberg

New York, May 10 – Imperial Dade upsized its term loan and set the original issue discount at the tight side of guidance, and then the debt made its way into the secondary market on Wednesday, with levels bid in line with the issue price.

Also, Atlantic Aviation (KKR Apple Bidco LLC) finalized the original issue discount on its incremental first-lien term loan at the tight end of talk before freeing up for trading, and Focus Financial’s first-lien term loan B-6 broke as well.

In more happenings, Ryman Hospitality Properties Inc. (RHP Hotel Properties LP) increased the size of its term loan B and tightened the issue price, and MoneyGram International Inc. and IMA Financial Group joined this week’s primary calendar.

Imperial revised, trades

Imperial Dade upsized its term loan (B3) due 2028 to $2.003 billion from a revised amount of minimum $1.8 billion that was announced in the morning and an initial size of $1.5 billion, a market source said.

Furthermore, the company finalized the original issue discount on the term loan at 99, the tight end of revised talk of 98.5 to 99 and tighter than initial talk in the range of 97.5 to 98, the source continued.

As before, the term loan is priced at SOFR plus 475 basis points with a 0.5% floor, and has 101 soft call protection for six months.

On Wednesday, the term loan began trading, with levels quoted at 99 bid, 99½ offered, another source added.

JPMorgan Chase Bank, Barclays, BMO Capital Markets, Credit Suisse Securities (USA) LLC, Citizens, MUFG, Stifel, TD Securities (USA) LLC and US Bank are leading the deal that will be used to extend in full, instead of in part as originally proposed, the company’s existing first-lien term loans due in 2026.

Imperial Dade is a Jersey City, N.J.-based distributor of foodservice disposables and janitorial sanitation products.

Atlantic updated, frees

Atlantic Aviation set the original issue discount on its fungible $750 million incremental first-lien term loan (B2/B) due September 2028 at 99, the tight end of the 98.5 to 99 talk, according to a market source.

The incremental term loan is priced at SOFR plus 400 bps with a 0.5% floor.

During the session, the incremental term loan broke for trading, with levels quoted at 99 1/8 bid, 99 5/8 offered, another source added.

KKR Capital Markets is the left lead on the deal that will be used to repay a second-lien term loan and fund a shareholder distribution.

Atlantic Aviation is an operator of fixed base operations, providing a full suite of critical services to the private aviation sector.

Focus Financial breaks

Focus Financial’s $500 million first-lien term loan B-6 (B1/B+) due June 30, 2028 freed to trade as well, with levels quoted at 98¾ bid, 99¼ offered, a trader remarked.

Pricing on the term loan B-6 is SOFR plus 350 bps with a 25 bps step-down at 4.25x first-lien net leverage and a 0.5% floor. The debt was sold at an original issue discount of 98.5, and has 101 soft call protection for six months and ticking fees of half the spread from days 46 to 90 and the full spread thereafter.

During syndication, the company removed one of two leverage-based pricing step-downs from the term loan B-6 and added the ticking fees.

RBC Capital Markets, Stone Point Capital Markets, Truist, Citizens, MUFG, Fifth Third, BMO Capital Markets and Capital One are leading the deal that will be used with equity to fund the buyout of the company by Clayton, Dubilier & Rice LLC for $53 in cash per share. The transaction has an enterprise value of over $7 billion.

Funds managed by Stone Point Capital LLC have agreed to retain a portion of their investment in Focus Financial and provide new equity financing as part of the proposed transaction.

Focus Financial, a New York-based partnership of independent, fiduciary wealth management firms, expects the buyout to close next quarter, subject to stockholder and regulatory approvals and other conditions.

Ryman tweaked

Ryman Hospitality Properties raised its seven-year covenant-lite term loan B to $500 million from $375 million and adjusted the original issue discount to 99.25 from 99, according to a market source.

The term loan is still priced at SOFR plus 275 bps with a 0% floor, and has 101 soft call protection for six months.

Recommitments were due at 5 p.m. ET on Wednesday and allocations are expected on Thursday, the source added.

Wells Fargo Securities LLC, BofA Securities Inc., Deutsche Bank Securities Inc., JPMorgan Chase Bank and US Bank are leading the deal that will be used to refinance an existing term loan B and, as a result of the upsizing, for general corporate purposes, including adding cash to the balance sheet.

Ryman is a Nashville, Tenn.-based real estate investment trust that owns and operates a portfolio of large, group-oriented hotels in urban and resort markets.

MoneyGram on deck

MoneyGram emerged with plans to hold a lender call at 1 p.m. ET on Thursday to launch a $500 million first-lien term loan B, a market source remarked.

Goldman Sachs Bank USA, Barclays, Deutsche Bank Securities Inc. and Wells Fargo Securities LLC are leading the deal that will be used with $400 million of other first-lien secured debt to help fund the buyout of the company by Madison Dearborn Partners LLC for $11.00 per share in an all-cash transaction valued at about $1.8 billion.

Closing on the buyout is expected on or before June 1.

MoneyGram is a Dallas-based digital P2P payments company.

IMA readies loan

IMA Financial Group scheduled a lender call for 12:30 p.m. ET on Thursday to launch a non-fungible $200 million incremental term loan due November 2028, according to a market source.

BMO Capital Markets is leading the deal that will be used to fund near-term acquisitions under letters of intent and to pay down revolver borrowings.

IMA Financial is a Denver-based insurance brokerage firm.

Fund flows

In other news, actively managed loan fund flows on Tuesday were negative $125 million and loan ETFs were negative $25 million, market sources said.

Outflows for leveraged loan mutual funds total $51.9 billion, or 37% of beginning period assets under management since May 2022, sources added.

Loan indices slide

IHS Markit’s iBoxx loan indices were lower on Tuesday, with the Leveraged Loan indexes (MiLLi) closing out the day down 0.02% and the Liquid Leveraged Loan indices (LLLi) closing out the day down 0.04%.

Month to date, the MiLLi is down 0.14% and year to date it is up 3.91%, and the LLLi is down 0.34% month to date and up 4.1% year to date.

Average secondary market bids in the U.S. on Tuesday were 91.23, down 0.01% from the previous day and down 0.71% year to date.

According to the IHS Markit data, some of the top advancers on Tuesday were Mattress Firm’s September 2021 covenant-lite term loan B at 96.67, up from 92.05, Cyxtera’s May 2017 covenant-lite term loan at 61.83, up from 60, and Atlantic Aviation’s September 2021 second-lien covenant-lite term loan at 99.33, up from 97.35.

Some top decliners on Tuesday were Packers Sanitation Services/PSSI’s March 2021 covenant-lite term loan at 37.95, down from 41.19, Air Methods’ April 2017 covenant-lite term loan B at 57.83, down from 59.65, and Wheel Pros’ May 2021 covenant-lite term loan at 66.83, down from 68.92.

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