Belfor, FR Refuel allocate loans; Ryan, A-Gas FinCo, Colibri, Lifetime Brands set talk

By Sara Rosenberg

New York, Oct. 25 – Belfor allocated its term loans during Wednesday’s market hours, and FR Refuel LLC’s incremental first-lien term loan allocated as well.

In more happenings, Ryan LLC, A-Gas FinCo Inc., Colibri and Lifetime Brands Inc. released price talk on their term loans in connection with their lender calls, and Thor Industries Inc. joined this week’s new issue calendar.

Belfor wraps

Belfor allocated on Wednesday its $1.235 billion term loan B due 2030 and its €250 million term loan B due 2030, according to a market source.

Pricing on the U.S. term loan is SOFR plus 375 basis points with a 0.5% floor, and it was sold at an original issue discount of 99, and pricing on the euro term loan is Euribor plus 425 bps with a 0% floor, and it was issued at a discount of 98.5.

Both term loans (B1/B) have 101 soft call protection for six months.

During syndication, pricing on the U.S. term loan firmed at the low end of the SOFR plus 375 bps to 400 bps talk, and the spread on the euro term loan was set at the high end of the Euribor plus 400 bps to 425 bps talk while the discount widened from 99.

JPMorgan Chase Bank is the left lead on the deal that will be used to refinance an existing $783 million first-lien term loan B due 2026 and a $654 million incremental first-lien term loan B due 2026, to repay revolver borrowings and for general corporate purposes.

Belfore is a Birmingham, Mich.-based disaster recovery and property restoration company.

FR Refuel allocates

FR Refuel allocated its non-fungible $100 million incremental covenant-lite first-lien term loan due Nov. 8, 2028, a market source remarked.

Pricing on the incremental term loan is SOFR+CSA plus 475 bps with a 0.75% floor, and it was sold at an original issue discount of 96. CSA is 11 bps one-month rate, 26 bps three-month rate and 43 bps six-month rate. The debt has 101 soft call protection for six months.

During syndication, the incremental term loan was downsized from $120 million and the discount was revised from 97.

Citizens Bank is leading the deal that will be used to term out revolver borrowings and to fund an acquisition.

First Reserve is the sponsor.

FR Refuel is a Charleston, S.C.-based regional convenience store operator.

Ryan proposed terms

Ryan held its lender call on Wednesday morning and announced talk on its $950 million seven-year first-lien term loan and $190 million first-lien delayed-draw term loan at SOFR plus 425 bps to 450 bps with a 0.5% floor and an original issue discount of 98.5 to 99, according to a market source.

The term loan has 101 soft call protection for six months.

The delayed-draw term loan has 24-months availability and ticking fees of half the margin for days 61 to 120 and the full margin thereafter.

Commitments are due at noon ET on Nov. 8, the source added.

Jefferies LLC, SMBC, Antares Capital, BMO Capital Markets, BofA Securities Inc., JPMorgan Chase Bank, MUFG and RBC Capital Markets are leading the $1.14 billion of term loans (B2/B+) that will be used to refinance existing debt and fund two acquisitions under letters of intent.

Ryan is a Dallas-based tax services and software provider.

A-Gas details emerge

A-Gas FinCo launched on its morning lender call a $520 million seven-year senior secured covenant-lite term loan B (B2/B) talked at SOFR plus 500 bps with 25 bps step-downs at 0.5x and 1x inside opening senior secured net leverage, a 0% floor, an original issue discount of 96 to 97 and 101 soft call protection for six months, a market source said.

Commitments are due at noon ET on Nov. 8, the source added.

Citigroup Global Markets Inc., HSBC Securities (USA) Inc., Guggenheim and Truist Securities are leading the deal. Truist is the administrative agent.

The term loan will be used to help fund the acquisition of a majority stake in the company by TPG from KKR. KKR will remain a significant minority shareholder in the business.

Closing is expected by the end of the year, subject to customary conditions, including regulatory approvals.

A-Gas is a U.K.-based supplier and lifecycle manager of refrigerant and industrial gases, fire suppressants and blowing agents.

Colibri guidance

Colibri held its lender call in the afternoon, launching a non-fungible $400 million incremental first-lien term loan due March 2029 (B3/B) at talk of SOFR plus 500 bps with a 0.75% floor, an original issue discount of 97.5 and 101 soft call protection for six months, according to a market source.

Commitments are due at noon ET on Nov. 8, the source added.

Golub Capital and Jefferies LLC are leading the deal. Jefferies is the existing agent.

The incremental term loan will be used to help support an acquisition.

Colibri, a Gridiron Capital LLC portfolio company, is a St. Louis-based provider of career lifecycle management and mandatory professional education solutions.

Lifetime holds call

Lifetime Brands held a lender call at 1 p.m. ET to launch a $150 million term loan B due August 2027 (B3/BB-) talked at SOFR plus 525 bps to 550 bps with a 1% floor, an original issue discount of 96 and call protection of non-callable for one year, then at 101 in year two, a market source remarked.

Commitments are due at 5 p.m. ET on Nov. 2, the source added.

JPMorgan Chase Bank is leading the deal that will be used with revolver borrowings to refinance/extend an existing $198.7 million covenant-lite term loan B due February 2025 priced at SOFR+CSA plus 350 bps with a 1% floor.

Lifetime Brands is a Garden City, N.Y.-based provider of kitchenware, tableware and other products used in the home.

Thor readies deal

Thor Industries set a lender call for 10 a.m. ET on Thursday to launch a $450 million senior secured term loan B due November 2030 and a roughly €330 million senior secured term loan B due November 2030, according to a market source.

Talk on the U.S. term loan is SOFR plus 300 bps to 325 bps and talk on the euro term loan is Euribor plus 325 bps to 350 bps, the source said. Both loans are talked with a 0% floor, an original issue discount of 99 and 101 soft call protection for six months.

Commitments are due at noon ET on Nov. 8, the source added.

JPMorgan Chase Bank is the physical bookrunner on the U.S. loan, and Barclays and JPMorgan are the physical bookrunners on the euro loan. BMO Capital Markets and U.S. Bank are bookrunners. JPMorgan is the administrative agent.

The new debt will be used by the Elkhart, Ind.-based manufacturer of recreational vehicles to amend and extend an existing $272 million term loan B due February 2026 and €441 million term loan B due February 2026, to pay related transaction fees and expenses, and for general corporate purposes.

Fund flows

In other news, actively managed loan fund flows on Tuesday were negative $42 million and loan ETFs were positive $42 million, sources said.

Loan funds outflows totaling $687 million in October follow net inflows totaling $249 million in September and $213 million in August, sources added.

Loan indices rise

IHS Markit’s iBoxx loan indices were stronger on Tuesday, with the Leveraged Loan indexes (MiLLi) closing up 0.01% and the Liquid Leveraged Loan indices (LLLi) closing up 0.02%.

Month to date, the MiLLi is up 0.13% and year to date it is up 9.96%, and the LLLi is up 0.04% month to date and up 9.12% year to date.

Average secondary market bids in the United States on Tuesday were 92.95, up 0.02% from the previous day and up 1.18% year to date.

According to the IHS Markit data, some of the top advancers on Tuesday were Exactech’s February 2018 covenant-lite term loan B at 60, up from 40, Carlisle FoodService’s March 2018 covenant-lite term loan at par, up from 96.06, and Weight Watchers’ April 2021 covenant-lite term loan at 76.94, up from 75.17.

Some top decliners on Tuesday were Audio Visual Services’ February 2018 second-lien covenant-lite term loan at 81.25, down from 87.17, Iris Holdings/Intertape Polymer’s June 2022 covenant-lite term loan at 90.17, down from 93.45, and Loparex’s August 2019 covenant-lite term loan at 79.83, down from 81.

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