Avient term loan frees to trade; Kindred At Home accelerated; Venator sets price talk

By Sara Rosenberg

New York, July 27 – Avient Corp. increased the size of its first-lien term loan B and tightened the original issue discount, and then the debt made its way into the secondary market on Wednesday.

In more happenings, Kindred At Home Hospice moved up the commitment deadline for its first- and second-lien term loans.

Additionally, Venator Materials plc released price talk with launch and Hemisphere Media Holdings LLC surfaced with plans to bring its term loan B to market this week.

Avient tweaked, trades

Avient raised its seven-year senior secured covenant-lite first-lien term loan B (Ba1/BB+) to $575 million from $500 million and changed original issue discount talk to a range of 96 to 97 from the 96 area, before firming at 97, a market source remarked.

As before, the term loan is priced at SOFR plus 325 basis points with 0 bps CSA and a 0.5% floor, and has 101 soft call protection for six months.

Commitments were due at 10:30 a.m. ET on Wednesday and the term loan began trading in the afternoon, with levels quoted at 97˝ bid, 98˝ offered on the break and at 98 bid, 99 offered shortly thereafter, a trader added.

Morgan Stanley Senior Funding Inc. and JPMorgan Chase Bank are leading the deal that will be used with $725 million of senior notes and balance sheet cash to fund the $1.485 billion acquisition of Royal DSM’s Protective Materials business (Dyneema), pay for transaction-related fees and expenses, and, as a result of the upsizing, for general corporate purposes.

Closing is expected on Sept. 1.

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

Kindred revises timing

Kindred At Home Hospice accelerated the commitment deadline for its $1.2 billion 5˝-year first-lien term loan B (B2/B) and $450 million six-year second-lien term loan (Caa2/CCC+) to 5 p.m. ET on Monday from noon ET on Tuesday, according to a market source.

Also, it was disclosed that credit agreement comments are due at 5 p.m. ET on Friday, the source said.

Talk on the first-lien term loan is SOFR plus 525 bps with a 0.5% floor, an original issue discount of 92 to 93 and 101 soft call protection for six months, and talk on the second-lien term loan is SOFR plus 825 bps with a 0.5% floor, a discount of 91 to 92 and hard call protection of 102 in year one and 101 in year two.

The company is getting a $400 million five-year term loan A (B2/B) as well.

Goldman Sachs Bank USA, Barclays, Deutsche Bank Securities Inc., UBS Investment Bank, BNP Paribas Securities Corp., Citizens, Mizuho, RBC Capital Markets, Truist and Wells Fargo Securities LLC are leading the deal, with Goldman the left lead on the first-lien and Barclays the left lead on the second-lien.

Kindred being acquired

Proceeds from Kindred At Home Hospice’s term loans will be used to help fund the acquisition of a 60% interest in the company by Clayton, Dubilier & Rice from Humana Inc. for about $2.8 billion. Humana will retain a 40% stake in the company.

Closing is expected this quarter, subject to customary state and federal regulatory approvals.

Kindred At Home Hospice is a provider of home-based personal care and hospice services.

Venator holds call

Venator Materials hosted a lender call at 2:30 p.m. ET on Wednesday to launch a $337 million amended and extended term loan (B1/B) due July 2025 talked at SOFR+10 bps CSA plus 450 bps with a 0% floor and a 150 bps extension fee, a market source said.

Commitments are due at 5 p.m. ET on Aug. 3, the source added.

JPMorgan Chase Bank is leading the deal that will be used to amend and extend an existing term loan due August 2024 and priced at Libor plus 300 bps with a 0% floor. The existing term loan is being paid down from cash on hand to $337 million from $357 million with the extension.

Venator is a The Woodlands, Tex.-based manufacturer and marketer of chemical products.

Hemisphere on deck

Hemisphere Media set a lender call for 1 p.m. ET on Thursday to launch a $370 million seven-year covenant-lite term loan B, according to a market source.

The term loan has 101 soft call protection for one year.

Commitments are due at noon ET on Aug. 11, the source added.

Wells Fargo Securities LLC, Truist Bank, Fifth Third Bank and Deutsche Bank Securities Inc. are leading the deal that will be used to help fund the acquisition by Gato Investments LP of the 61% of Hemisphere Media that it does not currently own. Gato Investments, a portfolio investment of Searchlight Capital Partners LP, is buying Hemisphere Media for $7.00 per share.

Closing is expected in the third quarter, subject to customary conditions, including approval by Hemisphere Media stockholders and receipt of regulatory approvals.

Hemisphere Media is a Coral Gables, Fla.-based pure-play media company targeting the U.S. Hispanic and Latin American markets.

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