XPO, Cvent Holding, IMA Financial deal changes surface; Protective Industrial sets talk

By Sara Rosenberg

New York, May 17 – In the primary market on Wednesday, XPO Inc. finalized the spread on its amended and extended term loan B at the low end of guidance and tightened the issue price, and Cvent Holding Corp. (Capstone Borrower Inc.) cut the spread on its senior secured first-lien term loan B and revised original issue discount guidance.

Additionally, IMA Financial Group Inc. tightened the issue price on its incremental term loan, and Protective Industrial Products Inc. (PIP) released price talk on its incremental first-lien term loan.

XPO updated

XPO set pricing on its $700 million amended and extended term loan B (Ba1/BBB-/BBB-) due May 2028 at SOFR plus 200 basis points, the low end of the SOFR plus 200 bps to 225 bps talk, and adjusted the original issue discount to 99.5 from 99, a market source remarked.

The term loan still has a 0% floor and 101 soft call protection for six months.

Recommitments were due at 2 p.m. ET on Wednesday, the source added.

Goldman Sachs Bank USA, Citigroup Global Markets Inc., BofA Securities Inc., Morgan Stanley Senior Funding Inc. and Credit Agricole are leading the loan that will be used with $830 million of senior secured notes and $450 million of senior unsecured notes to refinance an existing roughly $2 billion term loan F due 2025.

XPO is a Greenwich, Conn.-based provider of freight transportation services.

Cvent tweaked

Cvent trimmed pricing on its $400 million seven-year first-lien senior secured covenant-lite term loan B to SOFR plus 375 bps from SOFR plus 400 bps and revised original issue discount talk to a range of 98.5 to 99 from a range of 98 to 98.5, according to a market source.

As before, the term loan has a 25 bps pricing step-down at 3.75x first-lien leverage, a 25 bps step-down at 3.25x first-lien leverage and a 25 bps step-down following an initial public offering, a 0% floor and 101 soft call protection for six months.

The company’s $515 million of credit facilities (B2/B-/BB) also include a $115 million revolver.

Commitments continued to due at 5 p.m. ET on Wednesday, the source added.

Allocations are expected on Thursday.

Morgan Stanley Senior Funding Inc., UBS Securities LLC, Citizens Bank and Fifth Third are leading the deal.

Cvent being acquired

Cvent’s credit facilities will be used with $500 million of senior secured notes and about $2.5 billion of equity to fund its buyout by Blackstone for $8.50 per share in cash, or about $4.6 billion, to refinance existing credit facilities, and to pay fees and expenses related to the transaction.

A wholly owned subsidiary of the Abu Dhabi Investment Authority will be a significant minority investor alongside Blackstone as part of the buyout. Also, Vista Equity Partners, a majority stockholder of Cvent, has agreed to invest a portion of its proceeds as non-convertible preferred stock in financing for the transaction.

Closing is expected mid-year, subject to customary conditions, including stockholder and regulatory approvals.

Cvent is a Tysons, Va.-based provider of meetings, events and hospitality technology.

IMA revised

IMA Financial Group modified the original issue discount on its non-fungible $200 million incremental term loan (B3/B) due November 2028 to 97.5 from talk in the range of 96 to 97, a market source said.

The term loan is still priced at SOFR+10 bps CSA plus 425 bps with a 0.5% floor, and still has 101 soft call protection for six months.

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.

PIP guidance surfaces

Protective Industrial Products came out with talk of SOFR plus 500 bps with a 0.75% floor, an original issue discount of 97 and 101 soft call protection for six months on its non-fungible $150 million incremental first-lien term loan (B2/B-), a market source remarked.

Commitments are due on Tuesday, the source added.

Antares Capital is the left lead on the deal that launched with a call on May 16.

The term loan will be used to fund acquisitions.

Protective Industrial, a portfolio company of Odyssey Investment Partners, is a Latham, N.Y.-based provider of essential, consumable and high-performance hand and arm protection as well as other personal protective equipment and workwear.

Loan indices slide

In other news, IHS Markit’s iBoxx loan indices were lower on Tuesday, with the Leveraged Loan indexes (MiLLi) closing out the day down 0.04% and the Liquid Leveraged Loan indices (LLLi) closing out the day down 0.08%.

Month to date, the MiLLi is down 0.17% and year to date it is up 3.88%, and the LLLi is down 0.48% month to date and up 3.96% year to date.

Average secondary market bids in the U.S. on Tuesday were 91.09, down 0.03% from the previous day and down 0.86% year to date.

According to the IHS Markit data, some of the top advancers on Tuesday were Rackspace Hosting’s December 2021 covenant-lite term loan B at 39.47, up from 38.69, Forming Machining/Atlas Group’s October 2018 covenant-lite term loan at 77.75, up from 76.5, and Petmate/Doskocil’s October 2021 incremental covenant-lite term loan B at 62.59, up from 61.59.

Some top decliners on Tuesday were United Site’s December 2021 covenant-lite term loan B at 76.17, down from 78.72, Air Methods’ April 2017 covenant-lite term loan B at 51.4, down from 52.89, and National CineMedia’s June 2018 term loan B at 31.92, down from 32.78.

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