Pro Mach brings incremental term loan to market, frees to trade; Hubbard holds steady

By Sara Rosenberg

New York, Dec. 19 – Pro Mach Group Inc. launched an incremental first-lien term loan B with a call in the morning and firmed pricing in the afternoon at talk, and then the debt made its way into the secondary market on Monday.

In more happenings, Hubbard Radio LLC’s term loan held steady despite a ratings downgrade by Moody’s Investors Service.

Pro Mach launches, breaks

Pro Mach Group emerged in the morning with plans to hold a lender call at 11:30 a.m. ET to launch a non-fungible $100 million incremental covenant-lite first-lien term loan B (B1/B-) due Aug. 31, 2028 at talk of SOFR+10 basis points CSA plus 500 bps with a 0.5% floor, an original issue discount of 95 and 101 soft call protection for six months, a market source remarked.

Commitments were due at 1 p.m. ET on Monday and terms finalized in line with talk.

The incremental term loan freed to trade in the afternoon at 95½ bid, 96½ offered, a trader added.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used for general corporate purposes.

Closing is expected in early January.

Pro Mach is a Covington, Ky.-based provider of packaging solutions to the food, beverage, pharmaceutical, personal care and household and industrial goods industries.

Hubbard flat

Hubbard Radio’s 2025 term loan was unchanged in trading following news that Moody’s downgraded the company’s corporate family rating and senior secured credit facility rating to B3 from B2, while changing the outlook to stable from negative.

One trader had the term loan quoted at 90 bid, 93 offered, in line with Friday’s levels, and another trader had the term loan quoted at 88½ bid, 90½ offered, also unchanged on the day.

The first trader said that the term loan probably didn’t react to the news because it is “not very liquid”.

Moody’s attributed the downgrade to the impact of high inflation and recessionary pressures on radio advertising demand, which will cause Hubbard’s leverage levels to remain at elevated levels.

Hubbard Radio is a St. Paul, Minn.-based broadcasting company.

Fund flows

In other news, actively managed loan fund flows on Friday were negative $310 million and loan ETFs were negative $55 million, market sources said.

Outflows for actively managed loan funds accelerated on Friday, sources added.

Year to date outflows for loan funds total $9.4 billion.

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