While activity remains limited, there are signs that the thaw in new issues is continuing, with meaningful reverse-flex activity in loans and additional deals launching off the backlog. Even so, there are few near-term prospects for a big uptick in issuance.

Overall, four loans launched last week, two of which backed refinancings and two of which supported M&A activity. Overall launched volume totaled $5.1 billion, or a less impressive $1.8 billion on a net basis.

On a gross basis, allocated volume edged up to about $5 billion, from $3 billion a week prior, with Novolex’s upsized $3 billion among those breaking secondary. Net of associated repayments, however, volume was a paltry $1.2 billion, down from $4.1 billion a week prior, what with Novolex’s roughly $2.68 billion of existing loans being repaid in connection with the buyout.

Portfolios in brief: Holds reflect most recent reporting period available

BCRED: Scientific Games (B1/BB-) – Refinancing

J.P. Morgan launched a $2.2 billion term loan B for Scientific Games, proceeds of which would be used to pay down existing debt in connection with the $5.825 billion sale of its lottery business to Brookfield Business Partners, sources said. The arranger circulated price talk of S+325 with a 0.50% floor and 98.5-99 OID; the seven-year loan would include a CSA of 10/15/25 and six months of 101 soft call protection. A lender call is set for 2 p.m. ET today, and commitments are due by 5 p.m. ET on Thursday, April 7. Scientific Games, now doing business as Light & Wonder, told investors as it released fourth-quarter results in early March that it planned to utilize over 90% of the approximately $5 billion of net proceeds from the sale of the lottery business to repay debt. Management said on its fourth-quarter earnings call it planned to refinance its credit agreement, and a few days later delivered conditional notices of redemption for four series of bonds: its $1.25 billion issue of 5% senior secured notes due 2025, its $367 million issue of 3.375% senior secured euro notes due 2026, its $283 million of 5.5% unsecured euro notes due 2026 and its $1.1 billion of 8.25% unsecured notes due 2026. The $1.1 billion of 8.25% notes are callable at 104.125%, the 5% secured notes are callable at 102.5%, and the two euro issues are callable at 101.69%. These four series of bonds collectively total $3 billion. There was $4.018 billion outstanding under the existing TLB-5 due August 2024 (L+275, 0% floor) as of Dec. 31. The company said as it released fourth-quarter results that it is targeting a net leverage ratio of 2.5x-3.5x, versus 6.2x in 2021. Blackstone Private Credit Fund holds about $3.8M of the existing first-lien debt.

Investment details provided by Advantage Data.