Alight launches, modifies and frees add-on term loan; Topgolf price guidance surfaces

By Sara Rosenberg

New York, March 6 – Alight Inc. (Tempo Acquisition LLC) came to market in the morning with an add-on term loan B, tightened the original issue discount and accelerated the commitment deadline in the afternoon, and broke for trading late in the day.

And, in more happenings, Topgolf Callaway Brands Corp. released price talk on its term loan B in connection with its lender call.

Alight shops add-on, breaks

Alight launched in the morning a fungible $65 million add-on term loan B due Aug. 31, 2028 talked with an original issue discount of 99.5 and, in the afternoon, the discount was revised to 99.75, according to a market source.

Like the existing term loan B, pricing on the add-on term loan is SOFR plus 300 basis points with a 0.5% floor and no CSA.

Commitments were due at 3:30 p.m. ET on Monday, moved up from noon ET on Tuesday upon the tightening of the original issue discount, and the add-on term loan made its way into the secondary market late in the session, with levels quoted at 99 7/8 bid, par ¼ offered, another source added.

BofA Securities Inc. is leading the deal that will be used to refinance an existing term loan due 2024.

Alight is a Lincolnshire, Ill.-based provider of integrated, cloud-based human capital and business solutions.

Topgolf holds call

Topgolf Callaway Brands held a lender call at 1p.m. ET on Monday, launching a $1.1 billion seven-year covenant-lite term loan B (B1/B+) at talk of SOFR+10 bps CSA plus 350 bps with a 0% floor, an original issue discount of 98.5 to 99 and 101 soft call protection for six months, a market source remarked.

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

BofA Securities Inc., JPMorgan Chase Bank, MUFG and Truist are leading the deal that will be used to refinance the existing $432 million Topgolf Callaway Brands level and $337 million Topgolf subsidiary level term loan B borrowings, to repay $136 million of borrowings under the existing ABL revolver, to repay $110 million of borrowings under the existing Topgolf revolver, and to add $85 million of cash to the balance sheet for general corporate purposes.

The Carlsbad, Calif.-based tech enabled modern golf and active lifestyle company is also refinancing and upsizing its existing ABL revolver with a new $525 million five-year ABL facility.

Pro forma for the financing, total leverage will be 4.3x and total net leverage will be 3.4x based on fiscal year 2022 adjusted EBITDA of $558 million.

Fund flows

In other news, actively managed loan fund flows on Friday were negative $48 million and loan ETFs were positive $87 million, market sources said.

Outflows for loan funds in 2023 total $4.6 billion, sources added.

Loan indices rise

IHS Markit’s iBoxx loan indices were stronger on Friday, 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 0.10%.

Month to date, the MiLLi is up 0.05% and year to date it is up 3.25%, and the LLLi is up 0.17% month to date and up 3.10% year to date.

Average secondary market bids in the U.S. on Friday were 91.74, up 0.02% from the previous day and down 0.16% year to date.

According to the IHS Markit data, some of the top advancers on Friday were Venator’s June 2017 covenant-lite term loan B at 63.29, up from 60.80, West Marine’s June 2021 covenant-lite term loan at 57.17, up from 56.17, and Athletico Physical’s February 2022 covenant-lite term loan B at 65.88, up from 65.13.

Some top decliners on Friday were Lucky Bucks’ July 2021 covenant-lite term loan at 38.25, down from 49.59, Loyalty Ventures’ November 2021 covenant-lite term loan B at 30, down from 33.22, and Husky IMS’ March 2018 covenant-lite term loan B at 93.06, down from 95.71.

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