BBB Industries, Flow Control deal changes emerge; Belron accelerates commitment deadline

By Sara Rosenberg

New York, April 5 – In the primary market, BBB Industries LLC increased the size of its fungible add-on term loan, and Flow Control Group tightened the original issue discount on its incremental first-lien term loan.

Also, Belron moved up the commitment deadline for its first-lien term loan B, and Optiv Inc. approached lenders with a new first-lien term loan to help refinance existing debt and fund an acquisition.

BBB upsized

BBB Industries LLC lifted its fungible add-on term loan due 2029 to $200 million from $150 million, a market source said.

Pricing on the add-on term loan finalized in line with talk at SOFR plus 525 basis points with a 0.5% floor and an original issue discount of 93.

Commitments were due at 3 p.m. ET on Wednesday, moved up from 5 p.m. ET on Wednesday, the source added.

JPMorgan Chase Bank and KKR Capital Markets are leading the deal that will be used to fund acquisitions under letters of intent, to refinance some debt and for general corporate purposes.

BBB Industries is a Daphne, Ala.-based sustainable manufacturer of automotive replacement parts.

Flow Control tweaked

Flow Control modified the original issue discount on its fungible $75 million incremental first-lien term loan due April 2028 to 97.25 from talk in the range of 96.5 to 97, according to a market source.

The incremental term loan is priced at SOFR plus 475 basis points with a 0.5% floor.

Allocations went out on Wednesday, the source added.

KKR Capital Markets is leading the deal that will be used to fund acquisitions under letters of intent.

Flow Control is a Charlotte, N.C.-based distributor and technical adviser for mission critical flow control and industrial automation products and related services.

Belron revises timing

Belron accelerated the commitment deadline for its $870 million six-year first-lien term loan B (Ba2/BBB-) to 5 p.m. ET on Wednesday from 10 a.m. ET on Thursday, a market source remarked.

Allocations are expected on Thursday, the source added.

Talk on the term loan is SOFR plus 10 bps CSA plus 300 bps to 325 bps with a 0.5% floor, an original issue discount of 98 to 98.5 and 101 soft call protection for six months.

BofA Securities Inc., Barclays, BNP Paribas Securities Corp., ING and JPMorgan Chase Bank are the joint global coordinators on the deal. Citigroup Global Markets Inc., Citizens, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Fifth Third, Goldman Sachs Bank USA, HSBC Securities (USA) Inc. and KBC are the bookrunners and arrangers.

Proceeds will be used to pay a dividend to shareholders.

Belron is a U.K.-based provider of vehicle glass repair and replacement services.

Optiv holds call

Optiv held a lender call at 3 p.m. ET on Wednesday to launch a $725 million first-lien term loan due August 2026 talked at SOFR plus 500 bps to 525 bps with a 1% floor, an original issue discount of 96.5 and 101 soft call protection for six months, according to a market source.

Commitments are due at 5 p.m. ET on April 17, the source added.

Jefferies LLC and KKR Capital Markets are leading the deal that will be used with a $185 million privately placed second-lien PIK toggle facility to refinance the company’s existing debt and fund the acquisition of ClearShark LLC, a Maryland-based advisor and top value-added reseller of cybersecurity and modernization technology to the U.S. federal government.

Optiv is a Denver-based pureplay cyber security solutions provider.

Fund flows

In other news, actively managed loan fund flows on Tuesday were negative $26 million and loan ETFs were negative $51 million, market sources said.

Actively managed high-yield fund flows on Tuesday were positive $490 million and high-yield ETFs were positive $313 million, sources added.

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