Snap One Holdings term loan B unmoved in secondary by incremental private placement

By Sara Rosenberg

New York, Oct. 7 – Snap One Holdings Corp.’s existing term loan B held steady in trading on Friday following news of a privately placed incremental term loan B.

The existing term loan B was quoted at 91 bid, 93 offered, unchanged on the day, after it was revealed that the company privately placed with one account a non-fungible $55 million three-year incremental covenant-lite term loan B, a trader remarked.

Pricing on the incremental term loan is SOFR plus 675 basis points with a 0.5% floor, and the debt has 101 soft call protection for one year.

The existing term loan priced in November 2021 at Libor plus 450 bps with a 0.5% Libor floor.

Morgan Stanley Senior Funding Inc. is led the incremental loan, which will be used for general corporate purposes.

Snap One is a Charlotte, N.C.-based provider of a suite of products, services and software to professional do-it-for-me integrators.

Fund flows

In other news, actively managed loan fund flows on Thursday were negative $70 million and loan ETFs were positive $37 million, sources said.

Loan funds reported weekly outflows totaling $1.55 billion, including negative $279 million ETFs.

For loans, the past seven weeks’ outflows total $8.5 billion, equating to 9.7% of weekly AUM. September was the fourth largest outflow on record for loans at $6.7 billion, behind December 2018’s $15.3 billion, March 2020’s $13.4 billion and December 2014’s $7.4 billion, sources added.

Net inflows for loan funds since the beginning of 2021 are down to $46.5 billion.

Loan indices gain

IHS Markit’s iBoxx loan indices rose on Thursday, with the Leveraged Loan indexes (MiLLi) closing out the day up 0.05% and the Liquid Leveraged Loan indices (LLLi) closing out the day up 0.08%.

Month to date, the MiLLi is up 0.75% and year to date its down 2.91%. The LLLi is up 1.12% month to date and down 3.73% year to date.

Average secondary market bids in the U.S. on Thursday were 92.58, down 0.01% from the previous day and down 4.41% year to date.

According to the IHS Markit data, some of the top advancers on Thursday were Associated Materials’ March 2022 covenant-lite term loan at 89.83, up from 85, Weight Watchers’ April 2021 covenant-lite term loan B at 66.88, up from 65.63, and Chamberlain/Chariot Buyer’s November 2021 covenant-lite term loan at 92.47, up from 91.

Some top decliners on Thursday were EagleView Technology’s August 2018 covenant-lite term loan at 89.75, down from 92.53, Tecomet’s (Symmetry Medical) November 2017 covenant-lite term loan B at 87.80, down from 89.92, and Cineworld’s February 2018 U.S. covenant-lite term loan at 38.88, down from 39.81.

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