Ineos term loans gain ground in secondary with extension news; Citrix better in firm market

By Sara Rosenberg

New York, Oct. 25 – Ineos Group Holdings saw its term loans rise in trading on Tuesday after the company joined this week’s new issue calendar with plans to bring U.S. and euro term loan Bs to market. Ineos also announced price talk on the proposed debt ahead of the upcoming lender call.

In more happenings, Citrix Systems Inc.’s (Tibco Software Inc.) term loan was a bit higher as the market in general had a firm tone.

Ineos strengthens

Ineos’ term loan moved higher in the secondary market, following news of a proposed transaction that would amend and extend some of the outstanding debt, according to a trader.

The 2024 term loan B was quoted at 99 bid, 99¾ offered, up from 97¾ bid, 98¼ offered, and the 2026 term loan B was quoted at 93½ bid, 94½ offered, up from 93¼ bid, 94¼ offered, the trader said.

The movement in the existing term loans came after news emerged that Ineos will hold a lender call at 11 a.m. ET on Wednesday to launch a $750 million five-year term loan B (BB) and a €400 million five-year term loan B (BB).

Funds from the new debt will be used to extend, in part, the company’s U.S. and euro term loan Bs due March 2024 by 3½ years and for general corporate purposes.

Ineos price talk

Ahead of Wednesday’s call, price talk on Ineos’ U.S. term loan surfaced at SOFR plus 375 basis points to 400 bps with a 0% floor and an original issue discount of 95 to 96, and talk on the euro term loan is Euribor plus 400 bps to 425 bps with a 0% floor and a discount of 95 to 96, a market source remarked. Both term loans have 101 soft call protection for one year.

Commitments are due at 5 p.m. ET on Nov. 2, the source added.

Ineos US Finance LLC is the U.S. borrower and Ineos Finance plc is the euro borrower.

JPMorgan Chase Bank and Deutsche Bank Securities Inc. are the joint global coordinators on the term loans, with JPMorgan the left lead and sole physical bookrunner on the U.S. piece, and Deutsche and JPMorgan joint physical bookrunners on the euro piece. ABN Amro, Barclays, Credit Agricole, Commerzbank, ING, Intesa, KBC and MUFG are mandated lead arrangers. Barclays is the administrative agent.

Ineos is a London-based chemicals company.

Citrix gains

Citrix’s term loan B was stronger in trading, with levels quoted at 90 bid, 90¾ offered, up from 89¾ bid, 90½ offered, according to a market source.

The source said that that the secondary market in general was unchanged to maybe up an eighth of a point to a quarter of point, although volumes were relatively light.

Citrix is a Fort Lauderdale, Fla.-based provider of secure, unified digital workspace technology.

Loan indices mixed

In other news, IHS Markit’s iBoxx loan indices were mixed on Monday, with the Leveraged Loan indexes (MiLLi) closing out the day up 0.02% and the Liquid Leveraged Loan indices (LLLi) closing out the day down 0.01%.

Month to date, the MiLLi is up 0.68% and year to date its down 2.98%. The LLLi is up 1% month to date and down 3.84% year to date.

Average secondary market bids in the U.S. on Monday were 92.36, down 0.03% from the previous day and down 4.64% year to date.

According to the IHS Markit data, some of the top advancers on Monday were Associated Materials’ March 2022 covenant-lite term loan at 82.88, up from 80, Capital Vision/MyEyeDr’s August 2019 second-lien covenant-lite term loan at 75, up from 72.50, and Infinite Electronics’ March 2021 covenant-lite term loan at 93.42, up from 91.

Some top decliners on Monday were Envision Healthcare’s October 2018 covenant-lite unvoted term loan at 27.13, down from 27.61, Cineworld’s February 2018 U.S. covenant-lite term loan at 24.40, down from 24.81, and Thevelia’s June 2022 term loan at 93.50, down from 95.

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