Wrench Group frees to trade; Cetera, Help at Home changes surface; Russell sets talk

By Sara Rosenberg

New York, March 7 – Wrench Group LLC lowered the spread on its incremental first-lien term loan and finalized the original issue discount at the tight end of talk, and then the debt made its way into the secondary market on Tuesday.

In more happenings, Cetera Financial Group (Aretec Group Inc.) set pricing on its incremental first-lien term loan at the low end of guidance and modified the issue price, and Help at Home LLC revised its add-on term loan to a delayed-draw structure and adjusted the original issue discount.

Furthermore, Russell Investments released price talk on its first-lien term loan B in connection with a lender call, and Ineos Enterprises Holdings Ltd. joined the near-term primary calendar.

Wrench flexes, breaks

Wrench Group trimmed pricing on its non-fungible $150 million incremental senior secured first-lien term loan (B2/B-) due April 30, 2026 to SOFR plus 450 basis points from SOFR plus 475 bps and set the original issue discount at 98, the tight end of the 97.5 to 98 talk, according to a market source.

As before, the incremental term loan has 10 bps CSA and a 0.5% floor.

Commitments remained due at noon ET on Tuesday, and the incremental term loan freed to trade later in the day, with levels quoted at 98˝ bid, 99˝ offered, a trader added.

Jefferies LLC, Macquarie Capital (USA) Inc. and Antares Capital are leading the deal that will be used for general corporate purposes, including funding future acquisitions.

Wrench Group is a provider of home maintenance and repair services specializing in heating, ventilation and air conditioning, plumbing, electrical and water quality services.

Cetera tweaked

Cetera Financial Group firmed the spread on its non-fungible $750 million seven-year incremental first-lien term loan (B1/B) at SOFR plus 450 bps, the low end of the SOFR plus 450 bps to 475 bps talk, and changed the original issue discount to 98 from 97, a market source said.

The term loan still has a 0% floor, CSA of 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate, 101 soft call protection for six months from the closing date, and a ticking fee of half the margin from days 46 to 90 and the full margin thereafter.

Recommitments were due at 5 p.m. ET on Tuesday and allocations are expected on Wednesday, the source added.

UBS Investment Bank, BMO Capital Markets, Deutsche Bank Securities Inc., Jefferies LLC, Goldman Sachs Bank USA, Truist and Antares are leading the deal that will be used to fund the acquisition of the retail wealth business of Securian Financial Group Inc.

Closing is expected in the third quarter, subject to regulatory approval.

Cetera is a San Diego-based network of financial professionals.

Help at Home revised

Help at Home modified its fungible $130 million add-on term loan due 2027 to a delayed-draw tranche available through May 15 from a funded tranche, changed the original issue discount to 97.09 from 97.01, and added a ticking fee of SOFR plus the margin starting on day 31, according to a market source.

Pricing on the add-on term loan remained at SOFR+CSA plus 500 bps with a 1% floor. CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

Recommitments were due at 5 p.m. ET on Tuesday, the source added.

Jefferies LLC is the left lead on the deal that will be used to repay revolver borrowings and for general corporate purposes.

Help at Home is a Chicago-based provider of home care and support to the elderly and people with disabilities in their homes and community-based settings.

Russell holds call

Russell Investments held a lender call at 1 p.m. ET on Tuesday, launching a $1.16 billion first-lien term loan B due May 30, 2028 at talk of SOFR plus 400 bps with a 0.5% floor, an original issue discount of 98 and 101 soft call protection for six months, a market source remarked.

Commitments are due at noon ET on March 14, the source added.

Barclays is the left lead on the deal that will be used to amend and extend an existing first-lien term loan B due May 30, 2025, which is being paid down by $100 million with cash on hand.

TA Associates and Reverence Capital Partners are the sponsors.

Russell Investments is a Seattle-based investment solutions provider.

Ineos readies deal

Ineos Enterprises set a lender call for 9 a.m. ET on Wednesday to launch an €820 million equivalent U.S. and euro seven-year senior secured term loan B (BB), according to a market source. The split of U.S. and euro term loan debt is to be determined.

Commitments for the U.S. term loan are due at 5 p.m. ET on March 20 and commitments for the euro term loan are due at 7 a.m. ET on March 21, the source added.

Barclays is the global coordinator on the U.S. loan, and Barclays, MUFG and NatWest are the joint global coordinators and physical bookrunners on the euro loan. ABN Amro, Banco Santander, Fifth Third and JPMorgan are mandated lead arrangers. Barclays is the administrative agent.

The new debt will be used to fund the €720 million acquisition of MBCC Group’s Admixture business, a producer of concrete additives essential for the construction industry, from Sika AG, refinance €72 million of drawings under the company’s securitization facility, pay related transaction fees and retain additional liquidity.

Closing on the acquisition is expected to close in the first half of this year, subject to regulatory approvals.

Ineos Enterprises is a specialty and commodity chemical producer headquartered in the U.K.

Entegris allocates

In other news, Entegris Inc.’s $2.495 billion covenant-lite term loan B (Baa3/BB/BBB-) due July 6, 2029 allocated on Tuesday, a market source remarked.

Pricing on the term loan is SOFR plus 275 bps with a 0% floor and a par issue price. The loan has 101 soft call protection for six months and 0 bps CSA.

Morgan Stanley Senior Funding Inc., Barclays, BofA Securities Inc., Citigroup Global Markets Inc., Wells Fargo Securities LLC, PNC, Truist and Goldman Sachs Bank USA are leading the deal that will be used to reprice an existing first-lien term loan due 2029.

Closing is expected later this week or early next week.

Entegris is a Billerica, Mass.-based manufacturing company.

Fund flows

Actively managed loan fund flows on Monday were negative $20 million and loan ETFs were positive $11 million, market sources said.

Actively managed high-yield fund flows on Monday were positive $40 million and high-yield ETFs were positive $372 million, sources added.

Loan indices rise

IHS Markit’s iBoxx loan indices were stronger on Monday, with the Leveraged Loan indexes (MiLLi) closing out the day up 0.08% and the Liquid Leveraged Loan indices (LLLi) closing out the day up 0.14%.

Month to date, the MiLLi is up 0.12% and year to date it is up 3.33%, and the LLLi is up 0.31% month to date and up 3.25% year to date.

Average secondary market bids in the U.S. on Monday were 91.76, up 0.02% from the previous day and down 0.14% year to date.

According to the IHS Markit data, some of the top advancers on Monday were Wahoo Fitness’ August 2021 term loan B at 51.25, up from 45, Akorn’s October 2020 exit term loan at 21.40, up from 20.50, and Euro Garages/EG Group’s March 2018 U.S incremental covenant-lite term loan B at 96.25, up from 93.42.

Some top decliners on Monday were Novaria’s January 2020 covenant-lite term loan B at 90.50, down from 93, VeriFone’s August 2018 covenant-lite term loan B at 87.58, down from 89.75, and ScionHealth’s December 2021 covenant-lite term loan B at 56.83, down from 57.83.

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