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LevFin Insights BDC Portfolio News 2/22/21

Posted on February 22, 2021

Anthology repricing first-lien term loan; NMFC holds $22.4 million

Download: LFI BDC Portfolio News 2-22-21

Loan arrangers opted for a shock-and-awe approach after the long weekend, unleashing 22 deals for $15.15 billion on Tuesday alone, and piling on more business as the week wore on. Moreover, amid the emphasis on opportunistic business, intraweek timing ramped up the urgency factor. And while high-yield activity slowed with earnings season, those deals that came to market saw strong demand.

Arrangers rolled out a whopping $32.5 billion of loans last week from 36 issuers, including $25.3 billion of opportunistic activity, and all that recycling limited the week’s net new money to $6.3 billion. Amid hothouse market conditions, 18 issuers tightened pricing against just two deals moving wider. Those moves in turn pressured spreads further, although average all-in pricing ticked higher to L+396 from L+395 the previous week. The movement in single Bs was more reflective of market conditions, falling to L+412 from L+417. Stripping away add-on business, the single-B average fell to L+403 from L+409 the previous week.

Portfolios in brief: Holds reflect most recent reporting period available

NMFC: Anthology (B3/B-/B) — repricing

UBS set price talk on the repricing of Anthology’s $325 million first-lien term loan at L+475-500 with a 0.75% floor from the existing L+550 with a 1% floor. The repriced loan is offered at par and would include six months of 101 soft call protection. The commitment deadline will be 5 p.m. ET Tuesday, Feb. 23. The issuer is the former Astra Acquisition Corp, which was created by Veritas Capital’s acquisition of Campus Management and Edcentric Holdings from Leeds Equity Partners roughly a year ago. UBS, Deutsche Bank and Barclays arranged the term loan due 2027 (L+550, 1% floor). Last year’s financing also included a $110 million second-lien term loan that was placed privately. The buyout leveraged the issuer at 4.8x first-lien and 6.4x total. New Mountain Finance Corp. holds $22.4M in principal amount of the company’s 1L debt.

PTMN: Brightspring Health (B2/B) — repricing, add-on, M&A

A Jefferies-led arranger group added a repricing of Brightspring’s $550 million incremental term loan B-2 alongside the fungible add-on to that tranche, which has been upsized to $675 million from $600 million. The offer price has been moved to par from 99.75-100 as the upsized loan is repriced to L+350 with a 0% floor from L+375 with a 0.5% floor. The 101 soft call will be reset for six months on April 8, when the existing soft call protection expires. Commitments are due today. Proceeds of the add-on fund an acquisition. Brightspring also has in place a term loan due March 2026 (L+325, 0% floor), which totaled $1.791 billion at the time of a January 2020 repricing. Portman Ridge Finance Corp. holds $1.2M of the company’s subordinated debt due March 2027 (L+825, 1% floor).

Audax, NMFC: DiversiTech (B3/B) — add-on, M&A

RBC Capital Markets this afternoon set price talk of L+325 with a 1% floor and a 99 OID on the $125 million add-on first-lien term loan for DiversiTech. Commitments are due at noon ET Feb. 23. The existing first-lien term loan is priced at L+300, with a 1% floor, will be repriced to L+325, with the pro forma tranche size increased to $487 million. Concurrently, the issuer is also seeking a six-month extension of the existing first-lien loan, which currently matures in June 2024. Proceeds from the incremental debt would be used to fund a pair of acquisitions. Audax Credit BDC holds $1.5M of the company’sTLB-1 debt and $500,000 of its 2L debt due June 2025 (L+750). New Mountain Finance Corp. holds a combined $19.5M of the 2L debt.

OCSL: EagleView Technologies (B3/B-) — refi

Investors received allocations of the $100 million add-on term loan for EagleView Technology (L+350, 0% floor), which was issued at 99.03. Morgan Stanley was left lead on the deal, which priced in line with guidance. Proceeds will be used to refinance $40 million of revolver borrowings and about $55 million of its $230 million privately placed second-lien term loan, according to Moody’s. EagleView is a provider of 3-D aerial measurement services to the government, property and casualty insurance and residential construction markets. The company is jointly owned by Vista Equity Partners and Clearlake Capital. Oaktree Specialty Lending Corp. holds $12M in principal amount of the company’s 2L debt due August 2026 (L+750).

Audax, ORCC: Alacrity Solutions Group (B3/B) — add-on, dividend

Antares outlined price talk of L+400 with a 0% floor and a 99 OID on the $60 million first-lien term loan add-on for Alacrity Solutions Group. The incremental debt will be fungible with the first-lien tranche that allocated in May 2019. Proceeds from the transaction will be used to fund a shareholder distribution. Commitments are due by 5 p.m. ET Thursday, Feb. 25. In addition to the first-lien add-on, the company is drawing $17 million under its delayed-draw term loan and issuing a new $30 million second-lien term loan, according to Moody’s. Alacrity, formerly Worley Claims Services, is a Fishers, Ind.-based provider of insurance claims management services in North America. The $300 million funded term loan due June 2026 that allocated in May 2019 supported Kohlberg & Co.’s acquisition of the company. Antares was left lead on the transaction. The funded loan was put in place alongside a $30 million delayed-draw term loan and a $50 million revolver. A second-lien term loan due December 2026 (L+775) was privately placed with Owl Rock Capital. Audax Credit BDC holds $494,987 in principal amount of the 1L debt. Owl Rock Capital Corp. holds $20.3M of the 1L debt and $49.6 million of the 2L debt. Owl Rock Capital Corp. II holds $5.1M of the 1L term debt and $12.4M of the 2L debt.

Download LFI BDC Portfolio News 2-22-21 for BDC investment details provided by Advantage Data; click through links to view stories by LFI.


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