Topgolf frees to trade; Uber launches, prices add-on; Qlik tables loan; Agiliti sets talk

By Sara Rosenberg

New York, March 9 – Topgolf Callaway Brands Corp. increased the size of its term loan B, added a pricing step-down and firmed the original issue discount at the tight end of talk, and then the debt made its way into the secondary market on Thursday.

Also, Uber Technologies Inc. launched in the morning an add-on term loan B, upsized it slightly and finalized the original issue discount at the wide end of guidance in the afternoon, and was working on allocations late in the day.

Additionally, Qlik Technologies Inc. (Project Alpha Intermediate Holding Inc.) opted to pull its opportunistic term loan B from market, Agiliti Health released price talk on its term loan B in connection with a lender call, and Mitratech joined the near-term primary calendar.

Topgolf revised, breaks

Topgolf raised its seven-year covenant-lite term loan B (B1/B+) to $1.25 billion from $1.1 billion, added a 25 basis points pricing step-down upon corporate family ratings being upgraded to Ba3/BB- and set the original issue discount at 99, the tight end of the 98.5 to 99 talk, according to a market source. Current corporate family ratings are B1/B+ with a stable outlook.

Initial pricing on the term loan remained at SOFR+10 bps CSA plus 350 bps with a 0% floor and the debt still has 101 soft call protection for six months.

Commitments were due at 2 p.m. ET on Thursday and the term loan freed to trade in the afternoon, with levels quoted at 99 5/8 bid, par 1/8 offered, another source added.

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

Along with the term loan, the Carlsbad, Calif.-based tech enabled modern golf and active lifestyle company is getting a new $525 million five-year ABL facility to refinance and upsize its existing ABL revolver.

Uber add-on drive-by

Uber Technologies launched in the morning a fungible $760,625,000 seven-year add-on senior secured covenant-lite term loan B (Ba2/BB-) due March 3, 2030 talked with an original issue discount of 99.75 to par and, following the 2 p.m. ET commitment deadline, the add-on was upsized to $761 million and the discount was set at 99.75, a market source said.

Pricing on the add-on term loan is SOFR plus 275 bps with a 0% floor and 0 bps CSA, and the debt has 101 soft call protection for six months.

Allocations were being worked on late in the day, another source added.

Morgan Stanley Senior Funding Inc., Barclays, Citigroup Global Markets Inc., Goldman Sachs Bank USA, JPMorgan Chase Bank, RBC Capital Markets, TD Securities (USA) LLC, HSBC Securities (USA) Inc. and Deutsche Bank Securities Inc. are leading the deal that will be used to refinance an existing term loan B due in 2027.

Closing is expected on Tuesday.

Uber is a San Francisco-based online transportation network company.

Qlik withdrawn

Qlik Technologies pulled its opportunistic $1,389,836,000 covenant-lite term loan B due April 2027 (B3/B) that was going to be used to amend and extend an existing term loan B due 2024, according to a market source.

The term loan had been talked at SOFR plus 400 bps to 425 bps with a 0.5% floor, an original issue discount of 99 to 99.5, 101 soft call protection for six months and 0 bps CSA.

Morgan Stanley Senior Funding Inc. was the left lead on the deal.

Qlik is a King of Prussia, Pa.-based data analytics company.

Agiliti holds call

Agiliti emerged in the morning with plans to hold a lender call at 1 p.m. ET on Thursday to launch a $1.075 billion seven-year term loan B talked at SOFR plus 300 bps to 325 bps with a 0.5% floor and an original issue discount of 99, a market source remarked.

Commitments are due at noon ET on Wednesday, the source added.

JPMorgan Chase Bank is leading the deal that will be used to refinance both of the company’s term loans into one loan.

Furthermore, the company plans on getting a $300 million revolver due 2028 to refinance its existing $250 million revolver due 2026.

Agiliti is an Eden Prairie, Minn.-based essential service provider to the U.S. health care industry.

Mitratech on deck

Mitratech will be posting a pre-recorded lender presentation on Tuesday with a live lender question and answer session at 9:30 a.m. ET on Wednesday to launch a non-fungible $225 million incremental first-lien term loan and a $30 million upsize to its existing revolver, according to a market source.

Golub Capital is the left lead on the deal.

The term loan will be used to fund two acquisitions.

Ontario Teachers’ Pension Plan is the majority owner of Mitratech and Hg Capital is a minority owner.

Mitratech is an Austin, Tex.-based provider of legal matter management, compliance and operational risk software solutions for corporate in-house legal departments and law firms.

Fund flows

In other news, actively managed loan fund flows on Wednesday were negative $99 million and loan ETFs were negative $98 million, market sources said.

Actively managed high-yield fund flows on Wednesday were positive $5 million and high-yield ETFs were negative $754 million, sources added.

Loan indices rise

IHS Markit’s iBoxx loan indices were stronger on Wednesday, with the Leveraged Loan indexes (MiLLi) closing out the day up 0.03% and the Liquid Leveraged Loan indices (LLLi) closing out the day up 0.03%.

Month to date, the MiLLi is up 0.2% and year to date it is up 3.41%, and the LLLi is up 0.4% month to date and up 3.33% year to date.

Average secondary market bids in the U.S. on Wednesday were 91.84, up 0.04% from the previous day and down 0.05% year to date.

According to the IHS Markit data, some of the top advancers on Wednesday were Weight Watchers’ April 2021 covenant-lite term loan B at 58.83, up from 55.93, Genesis Care’s March 2020 U.S. covenant-lite term loan B at 25.5, up from 24.59, and Zep’s August 2017 second-lien covenant-lite term loan at 56.67, up from 55.

Some top decliners on Wednesday were Loyalty Ventures’ November 2021 covenant-lite term loan B at 15, down from 27.50, United Road Services’ September 2017 covenant-lite term loan B at 41, down from 45.33, and City Brewing’s April 2021 covenant-lite term loan at 44.21, down from 46.

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