Howden, Core & Main, Covanta, ION, Copeland, PlayAGS, SAIC, Renaissance Learning break

By Sara Rosenberg

New York, Feb. 2 – Howden Group Holdings Ltd. reduced the size of its U.S. term loan and set the spread at the high end of talk, and increased the size of its euro term loan while tightening the issue price on the tranche, and Core & Main Inc. finalized pricing on its incremental term loan B at the low end of guidance, and then these deals freed to trade on Friday.

Also, before breaking for trading, Covanta modified the original issue discount on its incremental term loan B, and ION Markets upsized its incremental term loan and widened the spread and issue price, and terminated plans for a repricing of its existing first-lien term loan.

Other deals to make their way into the secondary during market hours included Copeland, PlayAGS Inc. (AP Gaming I LLC), Science Applications International Corp. (SAIC) and Renaissance Learning Inc.

In more happenings, Artera Services LLC and TenCate Grass Holding BV (Touchdown Acquirer Inc.) moved up the commitment deadlines for their term loan transactions, and PlayCore joined the near-term primary calendar.

Howden reworked

Howden Group scaled back its U.S. seven-year term loan B to $2.925 billion from $3.435 billion and finalized pricing at SOFR plus 350 basis points, the wide end of the SOFR plus 325 bps to 350 bps talk, a market source remarked.

The company also raised its euro seven-year term loan B to €900 million from €660 million and adjusted the original issue discount to 99.75 from 99.5, the source continued.

As before, the U.S. term loan B has a 0.5% floor and an original issue discount of 99.5, the euro term loan B is priced at Euribor plus 400 bps with a 0% floor, and both loans (B2/B) have 101 soft call protection for six months.

The company also plans on getting a £630 million revolver.

Earlier in syndication, the company canceled plans for a repricing of its $1.083 billion term loan B due 2030 that was talked at SOFR plus 325 bps to 350 bps with a 0.5% floor and a par issue price, and would have taken the existing term loan due 2030 down from SOFR plus 400 bps.

Howden hits secondary

Recommitments for Howden’s term loans were due at 10 a.m. ET on Friday, and the U.S. term loan began trading later in the day, with levels quoted at 99 5/8 bid, 99 7/8 offered, another source added.

JPMorgan Chase Bank, Morgan Stanley Senior Funding Inc., BofA Securities Inc., Barclays, Goldman Sachs, RBC Capital Markets, Citigroup Global Markets Inc., HSBC Securities, ING, Lloyds, NatWest and Santander are the joint bookrunners on the deal. JPMorgan is the lead arranger. Morgan Stanley is the agent.

The term loans will be used with $1 billion of senior secured notes, upsized from $750 million, and $500 million of senior notes to repay a $620 million SOFR plus 525 bps term loan due November 2027, a $2.708 billion Libor plus 325 bps term loan due November 2027, a $253 million equivalent euro Euribor plus 450 bps term loan due November 2027, a $688 million equivalent euro Euribor plus 350 bps term loan due November 2027 and a $455 million second-lien term loan, to pay fees and expenses, to fund the locked account and for general corporate purposes.

Howden is a London-based insurance intermediary group.

Core & Main updated, frees

Core & Main firmed pricing on its non-fungible $750 million incremental term loan B (Ba3/BB-) at SOFR plus 225 bps, the low end of the SOFR plus 225 bps to 250 bps talk, according to a market source.

The loan still has a 0% floor, an original issue discount of 99.5 and 101 soft call protection for six months.

During the session, the term loan broke for trading, with levels quoted at 99 5/8 bid, par 1/8 offered, another source added.

JPMorgan Chase Bank is the left lead on the deal that will be used for general corporate purposes, including the repayment of about $430 million in total outstanding borrowings under the company’s asset-based lending facility, investment in organic growth and productivity initiatives, M&A, share repurchases or other initiatives aligned with the company’s capital allocation strategy.

The company is also pursuing an amendment to its $1.25 billion asset-based lending credit agreement to extend the maturity to 2029 from 2026.

Core & Main is a St. Louis-based distributor of water, wastewater, storm drainage and fire protection products, and related services.

Covanta tightened, breaks

Covanta changed the original issue discount on its $150 million incremental term loan B due Nov. 30, 2028 to 99.75 from 99.5, a market source remarked.

The issue price on the company’s $399 million repriced term loan B due Nov. 30, 2028 and $30 million repriced term loan C due Nov. 30, 2028 remained at par, pricing on all of the term loan debt is still SOFR plus 275 bps with a 0.5% floor, and the debt is still getting 101 soft call protection for six months.

All lender holdings upon closing of the transaction will be recalibrated so each lender will hold a pro rata strip across the pro forma $549 million term loan B and the $30 million term loan C, the source said.

Recommitments were due at 11 a.m. ET on Friday and the term loan debt freed to trade later in the day, with levels quoted at 99 7/8 bid, par 1/8 offered, another source added.

Barclays is the left lead on the deal.

The incremental loan will be used to repay revolver borrowings and to pay transaction costs, and the repricing will take the existing term loan B and term loan C down from SOFR plus 300 bps with a 0.5% floor.

Covanta is a Morristown, N.J.-based provider of sustainable waste solutions.

ION revised, trades

ION Markets raised its fungible incremental term loan due April 2028 to $140 million from $125 million, lifted pricing to SOFR+10 bps CSA plus 475 bps from SOFR plus 425 bps and changed the original issue discount to 99.03 from 99.5, a market source said.

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

In addition, the company pulled the repricing of its $1.697 billion first-lien term loan due April 2028 that was talked at SOFR plus 425 bps with a 0% floor and an original issue discount of 99.75 to par. The repricing would have reduced pricing on the existing term loan from SOFR+10 bps CSA plus 475 bps.

On Friday, the incremental term loan began trading, with levels quoted at 99 bid, 99½ offered, another source added.

UBS Investment Bank is the left lead on the deal that will be used to fund a distribution.

The borrowers are ION Trading Finance Ltd. and ION Trading Technologies Sarl.

ION Markets is a provider of mission-critical software for the global capital markets.

Copeland frees

Copeland’s $1,519,312,500 term loan B due May 2030 also freed up, with levels quoted at 99 7/8 bid, par 3/8 offered, according to a trader.

Pricing on the term loan is SOFR plus 250 bps with a 0% floor and it was sold at an original issue discount of 99.875. The debt has 101 soft call protection for six months.

During syndication, the term loan was downsized from a revised amount of $1,569,312,500 and an initial size of $1.769 billion, and the discount was revised from initial talk of 99.75 to par for new money indications and a par issue price for existing lenders.

RBC Capital Markets is the left lead on the deal that will be used to reprice an existing term loan B due May 2030 down from SOFR plus 300 bps with a 0% floor.

The existing term loan B is being paid down from $2.269 billion with senior secured notes in connection with the repricing. The U.S. and euro notes offering was recently upsized to about $750 million equivalent from a revised amount of roughly $700 million equivalent and an initial size of $500 million equivalent.

Copeland, owned by Blackstone, is a manufacturer of mission critical, highly engineered heating, ventilation, air conditioning and refrigeration components.

PlayAGS starts trading

PlayAGS’ roughly $549.9 million first-lien term loan due Feb. 15, 2029 began trading too, with levels quoted at par bid, par 3/8 offered, a market source remarked.

Pricing on the term loan is SOFR plus 375 bps with no CSA and a 0.75% floor. The debt was sold at a par issue price and has 101 soft call protection for six months.

Jefferies LLC and Truist Securities are leading the deal that will be used to reprice an existing first-lien term loan down from SOFR+CSA plus 400 bps with a 0.75% floor. CSA on the existing loan is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

The existing term loan is expected to be paid down by $15 million from roughly $564.9 million in connection with the repricing.

PlayAGS is a Las Vegas-based designer and supplier of diverse gaming products and services to the gaming industry.

Science Applications breaks

Science Applications International’s $510.25 million seven-year senior secured covenant-lite term loan B (Ba1/BB+) freed to trade in the afternoon, with levels quoted at 99 7/8 bid, par 3/8 offered, according to a market source.

Pricing on the term loan is SOFR plus 187.5 bps with a 0% floor and it was sold at an original issue discount of 99.75. The debt has 101 soft call protection for six months.

During syndication, the discount on the loan was tightened from talk in the range of 99.25 to 99.5.

Citigroup Global Markets Inc. is the left lead on the deal that will be used to repay an existing term loan B due 2025 and term loan B-2 due 2027, and to pay fees and expenses.

Closing is expected on Thursday.

Science Applications is a Reston, Va.-based technology integrator.

Renaissance hits secondary

Renaissance Learning’s $2,014,950,000 term loan B due April 7, 2030 made its way into the secondary market during the session, with levels quoted at par bid, par ¼ offered, a market source said.

Pricing on the term loan is SOFR plus 425 bps with a 0.5% floor. The debt was sold at an original issue discount of 99.75 for net new money and at par for existing lenders, and has 101 soft call protection for six months.

Barclays is the left lead on the deal that will be used to reprice an existing term loan due 2030 down from SOFR plus 475 bps with a 0.5% floor.

Renaissance Learning is a Wisconsin Rapids, Wis.-based provider of software solutions for assessment, teaching and learning to K-12 schools and districts.

Artera timing tweaked

Artera Services accelerated the commitment deadline for its $740 million seven-year first-lien term loan to 5 p.m. ET on Tuesday from 10 a.m. ET on Thursday, according to a market source.

Talk on the term loan is SOFR plus 500 bps with an original issue discount of 98 to 99 and 101 soft call protection for six months.

UBS Investment Bank, BofA Securities Inc., BMO Capital Markets, BNP Paribas Securities Corp., Citizens, Deutsche Bank Securities Inc., Jefferies LLC, Mizuho, MUFG and PNC are leading the deal. Credit Suisse is the administrative agent.

Proceeds will be used with $740 million of senior secured first priority notes, cash from the balance sheet, a sponsor first-lien PIK term loan and a sponsor contribution to refinance existing first- and second-lien term loans, to repay borrowings outstanding under the company’s receivables facility, to redeem existing notes in full, and to pay related fees and expenses.

Artera is an Atlanta-based provider of integrated infrastructure services serving utilities and midstream operators in the natural gas market.

TenCate accelerated

TenCate changed the commitment deadline for its $835 million seven-year term loan B and €350 million seven-year term loan B to noon ET on Wednesday from noon ET on Thursday, a market source remarked.

Talk on the term loans (B2/B) is SOFR/Euribor plus 425 bps to 450 bps with a 0% floor, an original issue discount of 98.5 and 101 soft call protection for six months.

Included in the U.S. term loan B is a $150 million delayed-draw tranche.

BofA Securities Inc. is the left lead on the U.S. loan. BofA Securities and Jefferies LLC are the joint physical bookrunners on the euro loan. Deutsche Bank Securities Inc., BMO Capital Markets, Societe Generale and ING are arrangers. BofA Securities is the administrative agent.

The loans will be used with contributed equity to fund the buyout of the company by Leonard Green & Partners LP from Crestview Partners and select other shareholders, to add cash to the balance sheet and to pay related fees. The current senior management team of TenCate will remain invested in the company.

Closing is expected this month.

TenCate is a Netherlands-based manufacturer, distributor and installer of artificial turf and other surfaces.

PlayCore on deck

PlayCore set a lender call for 10 a.m. ET on Monday to launch a $1.05 billion term loan B, according to a market source.

Goldman Sachs Bank USA is the left lead on the deal that will be used to refinance the company’s existing $640 million first-lien term loan, fund a distribution to shareholders, and pay related fees and expenses.

Court Square Capital Partners is the sponsor.

PlayCore is a Chattanooga, Tenn.-based designer, manufacturer and marketer of commercial playground, park, recreation and specialty equipment and related complementary products.

Inizio allocated

Inizio allocated its fungible $150 million add-on term loan B due August 2028, which is priced at SOFR+10 bps CSA plus 425 bps with a 0.5% floor and was sold at an original issue discount of 99.03, a market source remarked.

JPMorgan Chase Bank, Citigroup Global Markets Inc. and Morgan Stanley Senior Funding Inc. are leading the deal that will be used to repay revolver borrowings and for general corporate purposes.

Inizio is a provider of medical communications, marketing, advisory and packaging services to pharma and biotech clients.

Fund flows

In other news, actively managed loan fund flows on Thursday were negative $2 million and loan ETFs were negative $96 million, market sources said.

Loan funds reported weekly inflows totaling $410 million, with positive $254 million ETFs. These were the largest inflows for the asset class in 12 weeks and included the first inflows for actively managed loan funds in 20 weeks, sources added.

Inflows for loan funds in 2024 total $522 million, following outflows in 2023 totaling $17.3 billion.

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