Voyage Digital, Coherent, Par Pacific, GIP II Blue, ProAmpac, Avantor break; SRS gains

By Sara Rosenberg

New York, March 28 – Voyage Digital (NZ) Ltd. firmed the spread on its first-lien term loan B at the low end of talk, and Coherent Corp. finalized the issue price on its term loan at the tight end of guidance, and then these deals freed to trade on Thursday.

Other deals to make their way into the secondary market during the session included Par Pacific (Par Petroleum), GIP II Blue Holding LP (HESM Holdco), ProAmpac and Avantor Inc.

In more happenings, SRS Distribution Inc.’s term loan headed higher in trading following news that the company is being acquired by The Home Depot.

Also, Datavant (Ciox Health/CT Technologies Intermediate Holdings Inc.) pulled from market its first-lien term loan extension proposal.

Voyage updated, frees

Voyage Digital (NZ) Ltd. finalized pricing on its $477 million senior secured covenant-lite first-lien term loan B due May 14, 2029 (Ba3/BB-) at SOFR plus 325 basis points, the low end of the SOFR plus 325 bps to 350 bps talk, according to a market source.

As before, the term loan has a 0.5% floor, a par issue price, 101 soft call protection for six months and 0 bps CSA.

On Thursday, the term loan B broke for trading, with levels quoted at par ¼ bid, par ¾ offered, a trader added.

Morgan Stanley Senior Funding Inc. is the bookrunner on the deal. Global Loan Agency Servicing is the administrative agent.

The transaction will be used to reprice an existing U.S. term loan B.

Closing is expected on April 12.

Voyage Digital is a telecommunications company.

Coherent finalized, trades

Coherent firmed the issue price on its $2.443 billion term loan due 2029 at par, the tight end of the 99.75 to par talk, a market source said.

Pricing on the term loan remained at SOFR plus 250 bps with no CSA and a 0.5% floor, and the debt still has 101 soft call protection for six months and.

During the session, the term loan freed to trade, with levels quoted at par 1/8 bid, par ½ 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 275 bps. Current CSA is ARCC standard of 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

Coherent is a Saxonburg, Pa.-based provider of optical communications components and subsystems.

Par Pacific hits secondary

Par Pacific’s $545,875,000 covenant-lite term loan B due Feb. 28, 2030 broke as well, with levels quoted at par 1/8 bid, par 5/8 offered, a market source remarked.

Pricing on the term loan is SOFR plus 375 bps with a 0.5% floor and it was issued at par. The debt has 101 soft call protection for six months and no CSA.

During syndication, the issue price for new money was tightened from 99.75, while the issue price for old money remained at par.

Wells Fargo Securities LLC and MUFG are leading the deal that will be used to reprice an existing term loan B down from SOFR+10 bps CSA plus 425 bps with a step-down to SOFR plus 400 bps at corporate ratings of Ba3/BB- with stable outlooks and a 0.5% floor.

Par Pacific is a Houston-based refiner, marketer, transporter and distributor of crude oil.

GIP II Blue breaks

GIP II Blue Holding’s $524,854,341 term loan B due Sept. 29, 2028 (Ba3/BB-) began trading in the afternoon, with levels quoted at par bid, par ½ offered, according to a trader.

Pricing on the term loan is SOFR plus 375 bps with 0 bps CSA and a 1% floor. The debt was issued at par and has 101 soft call protection for six months.

During syndication, pricing on the term loan was lowered from SOFR plus 400 bps.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to reprice an existing term loan B down from SOFR+CSA plus 450 bps with a 1% 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.

Closing is expected on April 2.

GIP II, owned by Global Infrastructure Partners, is the owner of general partner and equity unit ownership interests in Hess Midstream LP and its operating subsidiary, Hess Midstream Operations LP.

ProAmpac tops par

ProAmpac’s $2.497 billion term loan (B3/B-) freed up too, with levels quoted at par 1/8 bid, par ½ offered, a market source said.

Pricing on the term loan is SOFR plus 400 bps with a 0% floor and it was issued at par. The loan has 101 soft call protection for six months.

Of the total term loan amount, $263 million is an add-on term loan that will be used to support acquisitions and $2.234 billion is a repricing of the company’s existing term loan down from SOFR plus 450 bps with a 0.75% floor.

During syndication, pricing on the term loan firmed at the low end of the SOFR plus 400 bps to 425 bps talk and the issue price on the add-on portion was tightened from 99.75.

JPMorgan Chase Bank is leading the deal.

ProAmpac is a Cincinnati-based manufacturer of flexible packaging and material science solutions.

Avantor starts trading

Avantor’s $772 million term loan B due November 2027 (Ba1/BBB-/BB+) broke in the morning, with levels quoted at par bid, par ½ offered, according to a market source.

Pricing on the term loan is SOFR+10 bps CSA plus 200 bps with a 0.5% floor and it was issued at par. The debt has 101 soft call protection for six months.

Goldman Sachs Bank USA is the left lead on the deal that will be used to reprice an existing $772 million term loan B due November 2027 down from SOFR+10 bps CSA plus 225 bps with a 0.5% floor.

Closing is expected during the week of April 1.

Avantor is a Radnor, Pa.-based provider of mission critical products and services to customers in the biopharma, health care, education & government, and advanced technologies & applied materials industries.

SRS rises

In other news, SRS Distribution’s term loan was quoted by one source at par 3/8 bid, par 5/8 offered, up from par 1/8 bid, par 3/8 offered, and by a second source in the par ½ bid 101 offered area after the company announced that it is being acquired by Home Depot.

The first source said that the term loan was rising above potential par paydown levels as investors are betting on timing on the next coupon payment before the debt gets taken out.

Under the agreement, SRS, a McKinney, Tex.-based building products distributor, is being bought for $18.25 billion from Berkshire Partners LLC and Leonard Green & Partners LP.

Home Depot, an Atlanta-based home improvement retailer, plans to finance the acquisition with cash on hand, incremental commercial paper and new unsecured notes, and intends to maintain its current investment grade ratings, with pro forma leverage of roughly 2.5x at closing.

In addition, Home Depot said in a company presentation that it is assuming SRS’ debt, other than finance lease liabilities and related financing obligations will be repaid at closing.

Closing is expected by the end of fiscal 2024, subject to regulatory approvals and customary conditions.

Datavant withdrawn

Datavant pulled from market its roughly $652 million first-lien term loan due December 2028 that was talked at SOFR plus 425 bps to 450 bps with an original issue discount of 99 to 99.5 and 101 soft call protection for six months, according to a market source.

UBS Investment Bank, Goldman Sachs Bank USA and Deutsche Bank Securities Inc. were arranging the deal that was going to be used to extend the company’s existing term loan by three years.

Datavant, backed by New Mountain Capital, is an Alpharetta, Ga.-based health care data logistics company.

Imprivata allocates

Imprivata allocated on Thursday its $1.102 billion term loan B due December 2027 that is priced at SOFR plus 350 bps with a 0.5% floor and was issued at par, a market source remarked.

The term loan has 101 soft call protection for six months and no CSA.

Goldman Sachs Bank USA is the left lead arranger on the deal, which will be used to combine into one tranche and reprice the company’s existing $725 million term loan B and $377 million incremental first-lien term loan B.

Imprivata is a Waltham, Mass.-based digital identity solutions provider in health care.

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