Minimax Viking, Acrisure, Ciena term loans break for trading; BGIS shelves loan

By Sara Rosenberg

New York, Oct. 20 – Minimax Viking finalized sizes on its U.S. and euro term loans and set the original issue discount on both tranches at the tight end of revised guidance before freeing up for trading during Friday’s market hours.

Also, Acrisure LLC firmed the spread on its term loan B-5 at the low end of talk and then broke for trading, and Ciena Corp.’s term loan B surfaced in the secondary market as well.

In more happenings, BGIS withdrew from market its first-lien term loan that would have refinanced existing first- and second-lien debt and funded tuck-in acquisition activity.

Minimax finalized, frees

Minimax Viking set the size of U.S. term loan B due July 2028 at $570 million, versus talk at launch of a minimum $500 million, set the size of its euro term loan B due July 2028 at €490 million, versus talk at launch of a minimum €450 million, and firmed the original issue discount on both loans (Ba3/BB-) at 99.75, the tight end of revised talk of 99.5 to 99.75 and tighter than initial talk of 99, according to market sources.

As before, the U.S. term loan is priced at SOFR plus 275 basis points with a 0.75% floor, the euro term loan is priced at Euribor plus 325 bps with a 0% floor, and both loans have 101 soft call protection for six months.

Earlier in syndication, pricing on the U.S. term loan finalized at the low end of the SOFR plus 275 bps to 300 bps talk and pricing on the euro term loan firmed at the low end of the Euribor plus 325 bps to 350 bps talk.

On Friday, the debt broke for trading, with the U.S. loan quoted at par bid, par ˝ offered, sources added.

Deutsche Bank is the global coordinator and physical bookrunner on the deal. UniCredit and Commerzbank are passive bookrunners. Deutsche Bank is the agent.

The loans will be used to amend and extend an existing $569 million term loan B due July 2025 and an existing €488 million term loan B due July 2025, and to pay transaction related fees and expenses.

Minimax is a Bad Oldesloe, Germany-based fire protection company.

Acrisure updated, trades

Acrisure firmed pricing on its $1 billion seven-year term loan B-5 (B2/B) at SOFR plus 450 bps, the low end of the SOFR plus 450 bps to 475 bps talk, a market source said.

The term loan still has a 0% floor and an original issue discount of 99.

During the session, the term loan B-5 made its way into the secondary market, with levels quoted at 99 1/8 bid, 99 5/8 offered, another source added.

JPMorgan Chase Bank, BMO Capital Markets, RBC Capital Markets, Truist Securities, Citigroup Global Markets Inc., BofA Securities Inc., TD Securities (USA) LLC, Wells Fargo Securities LLC, Goldman Sachs Bank USA and Mizuho are leading the deal that will be used to refinance an existing term loan B-4 due 2027 priced at SOFR plus 575 bps with a 1% floor.

Acrisure is a Caledonia, Mich.-based insurance brokerage.

Ciena hits secondary

Ciena’s $1.17 billion seven-year term loan B (Baa3/BB+) freed to trade too, with levels quoted at 99 7/8 bid, par 3/8 offered, according to a market source.

Pricing on the term loan is SOFR plus 200 bps with a 0% floor, and it was sold at an original issue discount of 99.75. The debt has 101 soft call protection for six months.

During syndication, the term loan was upsized from $670 million, pricing was set at the low end of the SOFR plus 200 bps to 225 bps talk, and the discount firmed at the tight end of revised talk of 99.5 to 99.75 and tighter than initial talk of 99.5.

BofA Securities Inc., Deutsche Bank Securities Inc., JPMorgan Chase Bank, Wells Fargo Securities LLC, Citigroup Global Markets Inc. and MUFG are leading the deal that will be used to refinance the company’s existing term loan B due 2025 and, due to the recent upsizing, to refinance an existing term loan due 2030.

Ciena is a Hanover, Md.-based networking systems, services and software company.

BGIS pulled

BGIS removed from market its $916 million senior secured covenant-lite first-lien term loan due May 31, 2028 (B3/B) as a result of current market conditions, a market source remarked.

Talk on the term loan had been SOFR plus 450 bps with a 0.5% floor, an original issue discount of 98 and 101 soft call protection for six months.

Citigroup Global Markets Inc. was leading the deal that was going to be used to refinance an existing first-lien term loan due May 2026, to refinance an existing second-lien term loan and to fund tuck-in acquisition activity.

BGIS is an integrated facilities management company.

Fund flows

In other news, actively managed loan fund flows on Thursday were negative $33 million and loan ETFs were positive $18 million, sources said.

Loan funds reported weekly outflows totaling $26 million, with positive $206 million ETFs. These were a fourth consecutive outflow totaling $1.5 billion, sources continued.

Loan funds have reported outflows in 54 of the last 61 weeks.

Year to date, outflows for loan funds total $19 billion, with positive $237 million ETFs, sources added.

Loan indices lower

IHS Markit’s iBoxx loan indices were weaker on Thursday, with the Leveraged Loan indexes (MiLLi) closing down 0.02% and the Liquid Leveraged Loan indices (LLLi) closing down 0.04%.

Month to date, the MiLLi is up 0.17% and year to date it is up 10.01%, and the LLLi is up 0.19% month to date and up 9.27% year to date.

Average secondary market bids in the United States on Thursday were 93.01, down 0.01% from the previous day and up 1.24% year to date.

According to the IHS Markit data, some of the top advancers on Thursday were Sound Physicians’ June 2018 term loan at 30.1, up from 29.45, Air Methods’ April 2017 covenant-lite term loan B at 28.5, up from 28.31, and Pretium Packaging’s October 2021 covenant-lite term loan B at 73.92, up from 73.54.

Some top decliners on Thursday were New Trojan/Careismatic’s January 2021 covenant-lite term loan at 48.44, down from 51.98, Research Now/Survey Sampling’s December 2017 second-lien covenant-lite term loan B at 37.17, down from 38.21, and Petmate/Doskocil’s October 2021 incremental covenant-lite term loan B at 60.33, down from 61.67.

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