DXP Enterprises, Ineos Enterprises term loans free to trade

By Sara Rosenberg

New York, Oct. 6 – DXP Enterprises Inc. firmed the spread and issue price on its term loan B at the wide side of talk, and then the debt made its way into the secondary market on Friday.

Also, before breaking for trading during the session, Ineos Enterprises Holdings Ltd. finalized sizes of its U.S. and euro add-on term loans and set the original issue discount on the tranches at the wide end of guidance.

DXP finalized, breaks

DXP Enterprises set pricing on its $550 million seven-year term loan B (B2/B) at SOFR plus 475 basis points, the high end of the SOFR plus 450 bps to 475 bps talk, and firmed the original issue discount at 98.5, the wide end of the 98.5 to 99 talk, a market source remarked.

As before, the term loan has 10 bps CSA, a 1% floor and 101 soft call protection for six months.

In the morning, the term loan B began trading, with levels quoted at 98¾ bid, 99¾ offered, another source added.

Goldman Sachs Bank USA, BofA Securities Inc., Jefferies LLC, BMO Capital Markets and Stephens are leading the deal that will be used with cash on the balance sheet to refinance a roughly $426 million term loan B, to add about $125 million of cash to the balance sheet to pre-fund tuck-in acquisitions under letters of intent or committed, and to pay transaction fees, expenses and original issue discount.

DXP is a Houston-based products and services distributor that adds value and cost savings solutions to industrial customers.

Ineos updated

Ineos firmed the size of its fungible U.S. senior secured add-on term loan B due July 7, 2030 at $310 million and the size of its fungible euro senior secured add-on term loan B due July 7, 2030 at €350 million, compared to talk at launch of a €645 million equivalent U.S. and euro add-on term loan B, with tranches sizes to be determined, according to a market source.

In addition, the original issue discount on the U.S. and euro add-on term loans (Ba3/BB/BB+) was set at 98.5, the wide end of the 98.5 to 99 talk, the source said.

Like the existing term loans, the U.S. add-on term loan is priced at SOFR+10 bps CSA plus 375 bps with a 0% floor, the euro add-on term loan is priced at Euribor plus 400 bps with a 0% floor, and both loans have 101 soft call protection until January 2024.

Ineos hits secondary

During the session, Ineos’ bank debt allocated and freed to trade, with the U.S. add-on term loan B quoted at 98½ bid, 99 1/8 offered, another source added.

Barclays is the sole bookrunner on the U.S. add-on term loan. Barclays, MUFG and NatWest Markets are joint physical bookrunners on the euro add-on term loan. Barclays is the administrative agent.

The term loans will be used to refinance all of the company’s existing term loan A and euro term loan B debt due 2026 and to pay transaction fees and expenses.

Ineos Enterprises is a London-based specialty and commodity chemical producer.

Fund flows

In other news, actively managed loan fund flows on Thursday were negative $73 million and loan ETFs were negative $5 million, sources said.

Loan funds reported weekly outflows totaling $942 million, with negative $412 million ETFs, which were the largest withdrawals since May including the largest outflows from the ETFs since mid-March.

Year to date, outflows for loan funds total $19 billion, sources added.

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