Envalior breaks for trading; Nautilus Power firms extended loan size; Simply Good sets talk

By Sara Rosenberg

New York, April 10 – In the secondary market on Monday, Envalior (DSM Engineering Materials) saw its U.S. term loan B-1 free to trade, with the debt bid in line with its original issue discount.

Meanwhile, in the primary market, Nautilus Power LLC finalized the size of its extended senior secured term loan B.

Also, Simply Good Foods Co. (Atkins Nutritional Holdings) released price talk on its senior secured term loan B in connection with its lender call, and Qualtrics (Quartz AcquireCo LLC) joined this week’s new issue calendar.

Envalior hits secondary

Envalior’s $1.411 billion seven-year term loan B-1 broke for trading on Monday, with levels quoted at 90 bid, 92 offered, a market source said.

Pricing on the U.S. term loan B-1 is SOFR plus 550 basis points with a 0.5% floor and it was sold at an original issue discount of 90.

The company is also getting a $488 million seven-year term loan B-2 priced at SOFR plus 550 bps with a 0.5% floor, and a €1.15 billion seven-year term loan B-1 priced at Euribor plus 550 bps with a 0% floor and an original issue discount of 90.

All of the term loans (B2/B+/B+) have 101 soft call protection for one year.

The euro term loan is expected to free to trade on Tuesday morning, another source added.

Barclays, BNP Paribas and UBS Investment Bank are the physical bookrunners on the deal. Commerzbank, ING, Rabobank, Standard Chartered and UniCredit are joint bookrunners. Wilmington Trust is the agent.

Envalior being acquired

The term loans will be used to help fund the buyout of DSM Engineering (Envalior) by Advent International and Lanxess from Netherlands-based Royal DSM. DSM Engineering will become part of a joint venture that is being formed by Advent and Lanxess. In addition, Lanxess is combining its High Performance Materials business unit with DSM Engineering.

Additionally, the term loans will used to refinance existing debt at DSM Engineering and High Performance Materials, for working capital and/or general corporate purposes, and to pay related fees and expenses.

Closing is expected in the first half of this year, subject to approval by authorities.

Envalior is a supplier of engineering and high-performance polymers.

Nautilus updated

Moving to the primary market, Nautilus Power set the size of its extended senior secured term loan B due Nov. 16, 2026 at $485,970,294, leaving about $12,996,950 as a non-extended tranche due May 16, 2024, according to a market source.

Pricing on the extended term loan finalized in line with talk at SOFR+26.161 bps CSA plus 525 bps with a 2% floor and a 50 bps lender consent fee.

The non-extended term loan is priced at Libor plus 425 bps with a 1% floor.

Morgan Stanley Senior Funding Inc. is the left lead on the deal that is expected to close this week.

Also, the company’s sponsor, Carlyle, will provide incremental cash to the balance sheet through a $30 million pari passu term loan, funded on the closing date, with a rate of SOFR plus ARRC CSA plus 225 bps all PIK.

The extended term loan and the Carlyle term loan will receive a 2% PIK fee on all debt that remains outstanding as of November 2025.

Nautilus is a wholesale power generation and marketing company.

Simply Good guidance

Simply Good Foods held its lender call on Monday morning and announced talk on its $350 million senior secured term loan B (Ba3/BB+) due March 17, 2027 at SOFR+CSA plus 275 bps to 300 bps with a 0.5% floor, an original issue discount of 99 and 101 soft call protection for six months, a market source remarked.

CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

Commitments are due at noon ET on April 20, the source added.

Barclays, BMO Capital Markets, Deutsche Bank Securities Inc. and Goldman Sachs Bank USA are leading the deal that will be used to amend and extend an existing $350 million senior secured term loan B due July 7, 2024 priced at SOFR+CSA of 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate plus 325 bps with a 0.5% floor.

Simply Good is a Denver-based developer, marketer and seller of branded nutritional foods and snacking products.

Qualtrics on deck

Qualtrics will hold a lender call at 11:15 a.m. ET on Tuesday to launch a $1 billion seven-year term loan B (B/BB+) talked at SOFR plus 375 bps to 400 bps with a 25 bps step-down at 1.25x gross leverage and a 25 bps step-down upon an initial public offering, a 0.5% floor, an original issue discount of 98 and 101 soft call protection for six months, according to a market source.

Commitments are due at noon ET on April 18, the source added.

JPMorgan Chase Bank, BMO Capital Markets, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., KKR Capital Markets, Mizuho, RBC Capital Markets, UBS Investment Bank and Wells Fargo Securities LLC are leading the deal that will be used with equity to fund the buyout of the company by Silver Lake and Canada Pension Plan Investment Board for $18.15 per share in cash. The transaction values Qualtrics at about $12.5 billion.

Closing is expected in the second half of this year, subject to customary conditions, including the receipt of the regulatory approvals.

Qualtrics, based in Provo, Utah, and Seattle, is a cloud-native software provider that helps organizations identify and resolve points of friction across all digital and human touchpoints in their business.

Fund flows

In other news, outflows for loans funds total $11.3 billion year to date, compared to $12.8 billion of outflows in 2022, market sources said.

High-yield bond funds outflows year to date total $12.4 billion, versus outflows of $48.9 billion in 2022, sources added.

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