Castlelake, Playa, Davis, WireCo, Aspire, TouchTunes break; Medallion, Amynta revised

By Sara Rosenberg

New York, Dec. 15 – Castlelake Aviation set the issue price on its first-lien term loan B at the tight end of guidance, Playa Hotels & Resorts firmed the spread on its term loan B at the low end of talk and added a leverage-based step-up, and Davis-Standard LLC (DS Parent Inc.) upsized its term loan B and finalized the original issue discount at the wide end of revised talk, and then these deals freed to trade on Friday.

Also, before breaking for trading, WireCo WorldGroup Inc. set the issue price on its term loan B at the tight end of guidance, Aspire Bakeries Holdings LLC trimmed the spread on its first-lien term loan and modified the issue price, and Nemera finalized the original issue discount on its euro term loan B at the tight end of revised talk.

Another deal to make its way into the secondary market during the session was TouchTunes’ (TA TT Buyer LLC) incremental first-lien term loan.

In more happenings, Medallion Midland Acquisition LP increased the size of its first-lien term loan, and Amynta upsized its term loan and trimmed the spread.

Castlelake finalized, frees

Castlelake Aviation firmed the issue price on its $1,156,399,537 senior secured first-lien term loan B (Ba3/BB) due Oct. 22, 2026 at par, the tight end of the 99.75 to par talk, a market source remarked.

Pricing on the term loan remained at SOFR plus 250 basis points with a 0% floor, and the debt still has 101 soft call protection for six months.

On Friday morning, the term loan B broke for trading, with levels quoted at par 1/8 bid, par 3/8 offered, a trader added.

Morgan Stanley Senior Funding Inc., Citigroup Global Markets Inc., BNP Paribas Securities Corp., MUFG, Fifth Third, Goldman Sachs Bank USA, RBC Capital Markets and Natixis are leading the deal that will be used to reprice an existing term loan due 2026 down from SOFR plus 275 bps.

Closing is expected during the week of Dec. 18.

Castlelake Aviation is a Dublin, Ireland-based provider of aircraft financing, leasing and servicing solutions.

Playa tweaked, trades

Playa Hotels & Resorts finalized pricing on its $1.092 billion covenant-lite term loan B (B1/B+) due January 2029 at SOFR plus 325 bps, the low end of the SOFR plus 325 bps to 350 bps talk, and added a step-up to SOFR plus 350 bps at 3.75x net first-lien leverage, a market source said.

The term loan still has a 0.5% floor, a par issue price and 101 soft call protection for six months.

In the late morning, the term loan freed to trade, with levels quoted at par bid, par ¼ offered, another source added.

Deutsche Bank Securities Inc., BofA Securities Inc., JPMorgan Chase Bank, Goldman Sachs Bank USA, Truist Securities and SMBC are leading the deal that will be used to reprice an existing term loan B due January 2029 down from SOFR plus 425 bps with a 0.5% floor.

Closing is expected on Dec. 20.

Playa Hotels is an owner, operator and developer of all-inclusive resorts located in Mexico, Dominican Republic and Jamaica.

Davis-Standard revised

Davis-Standard raised its seven-year covenant-lite term loan B to $465 million from $450 million and set the original issue discount at 95, the wide end of revised talk of 95 to 96 and wider than initial talk in the range of 97 to 98, according to a market source.

Pricing on the term loan is SOFR plus 550 bps with a 0.75% floor, and the loan has 101 soft call protection for six months.

Previously in syndication, pricing on the term loan firmed at the high end of the SOFR plus 525 bps to 550 bps talk and a 25 bps step-down at less than 3.25x first-lien net leverage was removed.

Wells Fargo Securities LLC is the left lead arranger on the deal. The debt commitment was provided by Wells Fargo, BMO Capital Markets Corp., UBS Securities LLC, Deutsche Bank Securities Inc., Stifel, Nicolaus & Co. Inc. and Citizens Bank.

Davis-Standard breaks

On Friday afternoon, Davis-Standard’s term loan B made its way into the secondary market, with levels quoted at 95¼ bid, 96¼ offered, another source added.

The term loan will be used to fund the acquisition of the Extrusion Technology Group from Nimbus and to refinance existing debt, and the funds from the upsizing will pay for the wider original issue discount.

Davis-Standard, owned by Gamut Capital Management LP, is a Pawcatuck, Conn.-based developer, distributor and aftermarket servicer of extrusion and converting technology. Extrusion Technology is a provider of extrusion equipment and services.

WireCo updated, frees

WireCo finalized the issue price on its $472 million term loan B due November 2028 at par, the tight end of the 99.75 to par talk, a market source said.

As before, pricing on the term loan is SOFR plus 375 bps with a 25 bps step-down upon an initial public offering and a 0% floor, and the debt has 101 soft call protection for six months and 0 bps CSA.

During the session, the term loan B broke for trading, with levels quoted at par ¼ bid, par ¾ offered, another source added.

JPMorgan Chase Bank is leading the deal that will be used to reprice an existing term loan down from SOFR+CSA plus 425 bps with a 0.5% floor. Current CSA is ARRC standard of 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

WireCo is a Prairie Village, Kan.-based manufacturer and distributor of wires and synthetic ropes.

Aspire modified, trades

Aspire Bakeries cuts pricing on its $425 million seven-year first-lien term loan (B2/B) to SOFR plus 425 bps from SOFR plus 450 bps and adjusted the original issue discount to 99 from 98.5, a market source said.

The term loan still has a 25 bps step-down upon an initial public offering, a 0% floor and 101 soft call protection for six months.

On Friday, the term loan freed to trade, with levels quoted at 99¾ bid, par ½ offered, another source added.

JPMorgan Chase Bank is leading the deal that will be used to refinance the company’s existing first- and second-lien term loans.

Aspire Bakeries is a provider of baked goods to customers in the foodservice and retail markets.

Nemera updated

Nemera set the original issue discount on its €525 million covenant-lite term loan B due January 2029 at 98.5, the tight end of revised talk of 98 to 98.5 and tighter than initial talk in the range of 97.5 to 98, according to a market source.

Pricing on the euro term loan remained at Euribor plus 500 bps with two 25 bps step-downs at 4.5x and 4x senior secured net leverage and a 0% floor.

The company is also getting a $75 million covenant-lite term loan B due January 2029 priced at SOFR plus 500 bps with 25 bps step-downs at 4.5x and 4x senior secured net leverage, a 0% floor and an original issue discount of 98.

Both term loans (B3/B-) have 101 soft call protection for six months.

Earlier in syndication, the U.S. term loan was added to the capital structure, the euro term loan was downsized from €590 million and the pricing grid on the euro term loan was modified from three step-downs at 4.75x, 4.25x and 3.75x senior secured net leverage.

Nemera euro breaks

Nemera’s euro term loan freed to trade during the session, with levels quoted at 98 7/8 bid on the break and then it moved up to 99½ bid, par offered, another source remarked.

The U.S. term loan, which allocated on Friday, is not liquid/traded given its size, so a market was unavailable, the source added.

HSBC, ING, Natixis and UniCredit are the physical bookrunners on the deal. Natixis is the administrative agent.

The term loans will be used to extend by three years an existing €460 million term loan B, which includes a U.S. carve-out, to partially refinance second-lien debt and for general corporate purposes.

Nemera, owned by Astorg and Montagu, is a France-based manufacturer of drug delivery devices.

TouchTunes tops OID

TouchTunes’ fungible $155 million incremental covenant-lite first-lien term loan due April 1, 2029 began trading as well, with levels quoted at 99½ bid, par offered, a market source remarked.

Pricing on the incremental term loan is SOFR plus 525 bps with a 0.5% floor and it was sold at an original issue discount of 99. The debt has 101 soft call protection for six months.

During syndication, the incremental term loan was upsized from $140 million and the discount was revised from 98.789.

Citizens Bank is leading the deal that will be used to pay down a portion of the company’s existing second-lien term loan and to fund a shareholder distribution.

TA Associates is the sponsor.

TouchTunes is a New York-based music distributor through a network of jukeboxes.

Medallion upsized

Medallion Midland lifted its first-lien term loan due Oct. 18, 2028 to roughly $872 million from roughly $822 million, according to a market source.

Pricing on the term loan remained at SOFR plus 350 bps with a 0% floor, a par issue price for existing lenders and an original issue discount of 99.75 for new money, and the debt still has 101 soft call protection for six months.

Recommitments were due at 10 a.m. ET on Friday and allocations went out later in the day, the source added.

Jefferies LLC is leading the deal that will be used to reprice an existing roughly $822 million first-lien term loan down from SOFR+ARRC CSA plus 375 bps with a 0% floor and, due to the upsizing, to fund a dividend.

Medallion Midland is a crude oil gathering/intra-basin transport system in the core of the Midland Basin of the Permian.

Amynta reworked

Amynta upsized its term loan due February 2028 to $1.062 billion from $1.037 billion, revised price talk to a range of SOFR plus 425 bps to 450 bps from just SOFR plus 450 bps, and then finalized pricing at SOFR plus 425 bps, a market source remarked.

The term loan still has a 0% floor, a par issue price, 101 soft call protection for six months and 0 bps CSA.

BofA Securities Inc. is the left lead on the deal that will be used to reprice an existing term loan down from SOFR+10 bps CSA plus 500 bps with a 0% floor.

Amynta is a New York-based insurance services company.

Fund flows

In other news, actively managed loan fund flows on Thursday were negative $23 million and loan ETFs were positive $12 million, sources said.

Loan funds reported weekly inflows totaling $83 million, with positive $340 million ETFs, which is the sixth inflow in seven weeks.

Loan funds have reported only 13 weekly inflows in the past 69 weeks.

Year-to-date, outflows for loan funds total $17.6 billion, with positive $2.6 billion ETFs, sources added.

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