LevFin Insights BDC Portfolio News 6/7/21Posted on June 8, 2021
Core & Main, EverCommerce refinance for IPOs; Blackstone Private Credit Fund, Audax Credit BDC hold debt in respective companies
Continued issuer-friendly conditions in the loan market enticed issuers off the sidelines, particularly as last week came to an end, and high-yield pressed on at a slower pace but with plenty of demand, aggressive price points and some upsizings.
Loan market conditions again benefited from secondary demand, with the average bid of Credit Suisse Leveraged Loan Index grinding 0.08 point higher to 97.9 at Thursday’s close. The index last week eclipsed the prior post-Covid-19 Cessation high of 97.83 on Feb.
Last week’s light level of allocations also won’t do much to alter the current dynamic, as $5.51 billion of loans priced via eight issuers, for net new money of a mere $1.67 billion. Fund inflows, meanwhile, remain adequate with $459 million of fresh cash streaming in during the week ended June 2, according to Refinitiv Lipper, for 21 consecutive weeks of inflows.
Portfolios in brief: Holds reflect most recent reporting period available
BCRED: Core & Main (B2/B-) — IPO
J.P. Morgan launched a refinancing for Core & Main that will be contingent on its proposed initial public offering. The issuer plans a $1.5 billion seven-year term loan B that is talked at L+275 with a 0% floor with a 99.5-99.75 offer price. The loan would include six months of 101 soft call protection. Proceeds, along with cash on hand and IPO proceeds, will be used to repay the issuer’s existing debt and fund redemption costs and accrued interest. Commitments are due at 5 p.m. ET on Wednesday, June 9. Blackstone Private Credit Fund holds $7.6M in principal amount of the company’s 1L debt due August 2024 (L+275, 1% floor).
BCRED, FSK: Culligan International (B3/B) — LBO
A Morgan Stanley-led arranger group launched a $2.475 billion loan backing BDT Capital Partners’ acquisition of a majority stake in the water-treatment concern Culligan International from Advent International and Centerbridge Partners. Financing includes a $225 million revolver, a $2 billion funded term loan B and a $250 million delayed-draw term loan. Culligan currently has in place a $611 million B-1 term loan due 2023 (L+325, 1% floor) and a $548 million new term loan strip due 2023 (L+375, 1% floor). Morgan Stanley is administrative agent. The existing capital structure also includes privately placed second-lien debt. Blackstone Private Credit Fund holds $17M of the B-1 debt and $4.3M of the term loan strip debt. FS KKR Capital Corp. holds $85M of the 2L debt due December 2024 (L+850, 1% floor).
BCRED: Dole Food Co. (B2/B) — M&A
BofA Securities, Rabobank and Goldman Sachs outlined talk of L+225-250 with a 0.5% floor and a 99-99.5 offer price on their $540 million seven-year term loan B for Dole plc backing the combination of Total Produce Plc, Dole Food Co. and affiliates of Dole owner Castle & Cooke. The seven-year TLB would include six months of 101 soft call protection. The loan technically will sit at Total Produce USA. Rabobank will be administrative agent on a $500 million multicurrency revolver, while BofA will agent the TLB and new $300 million five-year U.S. dollar senior secured TLA. Blackstone Private Credit Fund holds $3M in principal amount of Dole Food Co.’s 1L debt due April 2024 (L+275, 1% floor).
Audax: EverCommerce (B1/B+) — IPO
KKR Capital Markets and RBC Capital Markets outlined guidance of L+350-375 with a 0.5% floor and a 99 offer price on their $300 million term loan for EverCommerce. Proceeds of the seven-year term loan B will be used to refinance the issuer’s capital structure in conjunction with its planned initial public offering. RBC will be administrative agent on the new loan. Commitments are due June 15. The issuer, formerly known as PaySimple, last tapped the market in 2020 for a $250 million delayed-draw term loan via KCM, Ares and Jefferies. The prior $550 million term loan due 2025 (L+550, 0% floor) refinanced debt in connection with Silver Lake’s 2019 acquisition of a minority stake in the business from Providence Equity Partners. At March 31, term loan outstandings totaled $791.1 million, according to the S-1 filing. Audax Credit BDC holds $3.1M of the company’s 1L debt.
NMF SLF I, MAIN, NMFC, NexPoint: Heartland Dental (B3/CCC+) — incremental, M&A
A Jefferies-led arranger group set talk of L+400 with a 0% floor and a 99 offer price on the $660 million term loan backing Heartland Dental’s planned acquisition of American Dental Partners. KKR-controlled Heartland
Download LFI BDC Portfolio News 6-7-21 for BDC investment details provided by Advantage Data; click through links to view stories by LFI.
Disclaimer: The information on this blog site is for informational purposes only. Advantage Data makes no representations as to the accuracy, completeness, suitability, or validity, of any information. Advantage Data will not be liable for any errors, omissions, or any losses, injuries, or damages arising from its display or use. All information is provided AS-IS with no warranties and confers no rights. Information is not and should not be considered professional financial investment advice. In all events, Advantage Data is not a broker-dealer, shall not operate as a broker or a dealer, is not holding itself out as a broker or dealer and is not engaged in the business of buying or selling securities or otherwise required to register with the National Association of Securities Dealers.
Are you using AdvantageData?
AdvantageData is your fixed income solution for pricing, analytics, reports, and insight on approximately:
- 500,000+ U.S. and international corporate bonds
- Over 300,000+ BDC fair value assessments dating back to 2000
- Over 22,000+ syndicated loans
- Over 100 equity markets worldwide
- One platform 15 products and services from debt to loans to mid-market
- Used by top buy and sell-side firms worldwide