BJ’s Wholesale, PowerSchool loans break for trading; iSolved changes surface

By Sara Rosenberg

New York, Oct. 4 – BJ’s Wholesale Club Inc. firmed the spread on its term loan B at the low end of guidance before freeing up for trading on Wednesday, and PowerSchool Holdings Inc.’s (Severin Acquisition LLC) first-lien term loan broke as well.

Meanwhile, in more happenings, iSolved increased the size of its first-lien term loan and lowered the spread, while leaving the floor and original issue discount unchanged.

BJ’s updated, frees

BJ’s Wholesale Club set pricing on its $400 million covenant-lite term loan B (Ba2/BBB-) due February 2029 at SOFR plus 200 basis points, the low end of the SOFR plus 200 bps to 225 bps talk, according to a market source.

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

On Wednesday, the term loan broke for trading, with levels quoted at par ¼ bid, par ½ offered, another source added.

Deutsche Bank Securities Inc., Nomura Securities, BofA Securities Inc. and Wells Fargo Securities LLC are leading the deal that will be used to refinance existing debt.

BJ’s is a Marlborough, Mass.-based warehouse club operator.

PowerSchool hits secondary

PowerSchool’s $840 million first-lien term loan due Aug. 1, 2027 freed to trade in the afternoon, with levels quoted at 99¾ bid, par offered, a market source remarked.

Pricing on the term loan is SOFR plus 325 bps with a step-down to SOFR plus 300 bps at 0.25x inside closing total first-lien net leverage and a 0% floor. The debt was sold at an original issue discount of 99.5 and has 101 soft call protection for six months.

Barclays is the left lead on the deal that will be used to amend and extend an existing $840 million first-lien term loan due August 2025.

PowerSchool is a Folsom, Calif.-based provider of cloud-based software for K-12 education.

iSolved revised

iSolved raised its seven-year first-lien term loan to $575 million from $550 million and trimmed pricing to SOFR plus 400 bps from SOFR plus 425 bps, according to a market source.

As before, the term loan has a 0.5% floor, an original issue discount of 99 and 101 soft call protection for six months.

The company’s now $650 million of credit facilities (B2/B) also include a $75 million five-year revolver.

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

UBS Investment Bank, Deutsche Bank Securities Inc., Citigroup Global Markets Inc., Jefferies LLC and JPMorgan Chase Bank are leading the deal that will be used to repay existing debt, to fund cash to the balance sheet and for general corporate purposes.

Accel-KKR is the sponsor.

iSolved is a provider of cloud based human capital management software, focusing on SMB and midmarket organizations.

Fund flows

In other news, actively managed loan fund flows on Tuesday were negative $86 million and loan ETFs were negative $141 million, sources said.

Actively managed high-yield fund flows on Tuesday were negative $515 million and high-yield ETFs were negative $301 million, sources added.

Loan indices slide

In other news, IHS Markit’s iBoxx loan indices were weaker on Tuesday, with the Leveraged Loan indexes (MiLLi) closing out the day down 0.14% and the Liquid Leveraged Loan indices (LLLi) closing out the day down 0.24%.

Month to date, the MiLLi is down 0.17% and year to date it is up 9.63%, and the LLLi is down 0.29% month to date and up 8.75% year to date.

Average secondary market bids in the U.S. on Tuesday were 93.01, down 0.05% from the previous day and up 1.24% year to date.

According to the IHS Markit data, some of the top advancers on Tuesday were Lucky Bucks July 2021 covenant-lite term loan at 26.88, up from 26.33, Tradesmen/Tribe Buyer’s February 2017 term loan at 50.63, up from 50.08, and Avison Young’s January 2019 covenant-lite term loan at 37.75, up from 37.38.

Some top decliners on Tuesday were Jo-Ann Stores’ July 2021 covenant-lite term loan B at 29.5, down from 30.9, Juice Plus+’s November 2018 term loan at 32.38, down from 33.17, and Strategic Materials’ November 2017 covenant-lite term loan at 63.25, down from 64.5.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.