Large deals for Bausch + Lomb and Refresco anchored another modest week for launches in the new-issue loan market, though favored issuers and well-rated credits continued to draw a crowd. Activity in the high-yield market was spotty, with two deals printing for $900 million, and there was no issuance late week with the 10-year Treasury yield in a 2.9% context, near a 3.5-year high and up eight basis points for the week. The secondary offered up some drama, with Netflix, Carvana and Gap among the standouts.

Launched loan activity increased last week, to $8.9 billion across 11 deals, from $5.2 billion from seven issuers the prior week. Meanwhile, net launched volume jumped to $5.9 billion from $2.7 billion thanks to $6.8 billion of M&A in the mix. As launch activity remained light, investor demand shifted momentum back more favorably toward issuers, with five deals tightening and one deal, Veracode, pricing at a premium as it was relaunched with an all-senior structure after arrangers previously tightened terms. Dayco Products’ $470 million term loan, still missing at sea more than a week after its original deadline, remains a candidate to flex wider, though the issuer was already proposing an increase to S+575-600 with a 0.50% floor and a 97.5-98 OID in exchange for a two-year maturity extension. By contrast, four deals tightened in the week ended April 15 as three others widened.

Portfolios in brief: Holds reflect most recent reporting period available

Audax: Brook & Whittle (B3/B-) – M&A

Investors last week received allocations of the $131 million add-on first-lien term loan for Brook + Whittle (S+400, 0.50% floor), which was issued at 97.5. Credit Suisse was left lead on the deal, which priced at the wide end of talk with a $5 million upsize. Proceeds, along with those from a $57 million privately placed second-lien term loan, fund the company’s purchase of Cenveo custom labels, an acquisition under letter of intent, and place cash on the balance sheet. Audax Credit BDC holds $2.5M of the existing first-lien debt.

Audax: Denali Water Solutions (B3/B-) – M&A

UBS set talk of S+450 with a 0.75% floor and a 96-96.5 OID on the $185 million incremental term loan for Denali Water Solutions backing its acquisition of Imperial Western Products. The loan includes a CSA set at 10 bps/15 bps/25 bps for one, three and six months. Investors are offered six months of 101 soft call protection. Commitments are due at 5 p.m. ET on Wednesday, May 4. The issuer last tapped the loan market in March 2021 for a $395 million term loan B due 2028 (L+425, 0.75% floor), proceeds of which were used to refinance existing loans and fund the acquisition of Organix Recycling. Audax Credit BDC holds nearly $2M of the existing first-lien debt.

PFX, PSEC, Steele Creek, GECC: First Brands (B2/B+) – GCP

A Jefferies-led arranger group launched a $300 million fungible add-on term loan for First Brands that will fund general corporate purposes and cash to the balance sheet. The loan will be fungible with First Brands’ first-lien term loan due March 2027, increasing the tranche to roughly $2.017 billion. Pricing will shift to SOFR via negative consent on the transaction, at S+500 with a 1% floor. The add-on is offered at 99.25. The CSA is set at 11.448 bps, 26.161 bps and 42.826 bps for SOFR elections of one, three and six months, respectively. Commitments are due at noon ET on April 26. Holders of the first-lien debt include PhenixFIN Corp. with nearly $4M, Prospect Capital with $16.6M, Prospect Sustainable Income Fund with $1.2M, and Steele Creek Capital Corp. with $997K. Prospect Capital also holds $32M of the second-lien term debt due March 2028 (L+850, 1% floor), with Great Elm Capital Corp. holding $6M.

BBDC, Steele Creek: Syniverse Holdings (Caa1/B-) – Refi

A Barclays-led arranger group on Friday launched a $1.025 billion term loan for Syniverse Holdings. Proceeds, along with preferred equity and an equity investment from Twilio, will be used to refinance the existing capital structure. The issuer’s existing first-lien term loan due March 2023 (L+500, 1% floor) advanced to a 97-100 market following the launch of the refinancing, versus a 95.5-97 market the day before. The seven-year loan would include six months of 101 soft call protection. Syniverse in February announced an alternative transaction with Twilio after terminating its merger agreement with special purpose acquisition company M3-Brigade Acquisition II. Twilio said it intended to pursue its previously announced minority investment of up to $750 million in Syniverse, with current sponsor Carlyle Group remaining the majority owner. The company’s existing loans stem from a 2018 refinancing. The deal included an originally $1.702 billion first-lien term loan due 2023 and a $220 million second-lien term loan due 2024 (L+900, 1% floor). Holders of the existing first-lien debt include Barings BDC ($17.3M), Barings Capital Investment Corp. ($4.6M), and Steele Creek Capital Corp. with a total of nearly $1.3M.