First Brands, Vistage term loans free to trade; Mariner Wealth accelerates deadline

By Sara Rosenberg

New York, Dec. 12 – First Brands Group LLC increased the size of its non-fungible incremental senior secured first-lien term loan and finalized the original issue discount at the middle of guidance before breaking for trading on Monday, and Vistage Worldwide’s add-on first-lien term loan hit the secondary market too.

In more happenings, Mariner Wealth Advisors moved up the commitment for its incremental first-lien term loan, and Walker & Dunlop Inc. came to market with an incremental term loan B-2.

First Brands upsized, breaks

First Brands raised its non-fungible incremental senior secured first-lien term loan due March 30, 2027 to $425 million from $300 million and firmed the original issue discount at 93.5, the midpoint of the 93 to 94 talk, according to a market source.

As before, the incremental term loan is priced at SOFR+CSA plus 500 basis points with a 1% floor and has 101 soft call protection for six months. CSA is 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

Commitments were due at 3:30 p.m. ET on Monday, extended from noon ET on Monday, and the incremental term loan made its way into the secondary market in the afternoon, with levels quoted at 93¾ bid, 94¾ offered, another source added.

Jefferies LLC is leading the deal that will be used to fund cash to the balance sheet for liquidity to support bids for new business, potential future acquisitions and other growth initiatives.

First Brands is an automotive aftermarket platform.

Vistage frees up

Vistage Worldwide’s fungible $55 million add-on first-lien term loan allocated and freed to trade as well, with levels quoted at 96 bid, 97 offered, a market source said.

Pricing on the add-on term loan matches existing first-lien term loan pricing at SOFR+CSA plus 525 bps with a 0.75% floor, and the new debt was sold at an original issue discount of 96.

CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

The add-on term loan has 101 soft call protection until Jan. 13.

During syndication, the add-on term loan was upsized from $44 million.

Golub Capital is leading the deal that will be used to fund an acquisition.

Vistage is a San Diego-based member-based advisory company for executives of small- and medium-sized businesses.

Mariner tweaks timing

Mariner Wealth Advisors accelerated the commitment deadline for its non-fungible $100 million incremental first-lien term loan (B-) due August 2028 to 5 p.m. ET on Monday from noon ET on Tuesday, a market source remarked.

Talk on the incremental term loan is SOFR+10 bps CSA plus 425 bps to 450 bps with a 0.5% floor, an original issue discount of 95 and 101 soft call protection for six months.

BMO Capital Markets is leading the deal that will be used for general corporate purposes, including to fund near-term acquisitions.

Mariner Wealth Advisors is an Overland Park, Kan.-based investment adviser.

Walker holds call

Walker & Dunlop emerged in the morning with plans to hold a lender call at noon ET on Monday to launch a non-fungible $200 million incremental senior secured term loan B-2 (BB+) talked at SOFR+CSA plus 300 bps to 325 bps with a 0.5% floor, an original issue discount of 97.5 and 101 soft call protection for six months, according to a market source.

CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

The incremental term loan has a ticking fee of the full margin starting on day 31, the source said.

Commitments are due at noon ET on Wednesday.

JPMorgan Chase Bank is leading the deal, of which $115 million of the proceeds will be used to refinance debt assumed in the acquisition of Alliant Capital and $85 million of proceeds will be used to strengthen the company’s balance sheet for general corporate purposes.

Walker amendment

With this transaction, Walker & Dunlop is asking to amend its existing credit agreement, to allow for a pari passu revolver and increase the excess cash flow sweep thresholds by 0.75x of leverage throughout.

Existing term loan B lenders are being offered a 5 bps fee for amendment consents, the source added.

Pro forma for the transaction, the company’s outstanding principal balance of term loan borrowings will be $795 million.

Closing on the incremental term loan is expected in January.

Walker & Dunlop is a Bethesda, Md.-based commercial real estate and multi-family finance company.

Fund flows

In other news, actively managed loan fund flows on Friday were negative $99 million and loan ETFs were negative $56 million, market sources said.

Outflows for loan funds year to date total $8.2 billion, sources added.

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