LFI BDC Portfolio News 3/6/23: Qlik, U.S. Silica, Wrench Group seek to tap institutional market

LFI BDC Portfolio News 3/6/23: Qlik, U.S. Silica, Wrench Group seek to tap institutional market

Earnings season continued to keep investors on their toes—standouts included iHeart, Olaplex and B&G Foods—while the high-yield market, despite technical headwinds, churned out more than $6 billion, including a cross-border refinancing exercise for Teva Pharmaceutical and an M&A-related execution for Ritchie Bros Auctioneers. Loans plugged along with another string of deals, all of which were opportunistic business, including a pair of repricings for four B rated borrowers. March kicked off with opportunistic activity comprising 100% of this week’s $7.5 billion gross launched loan volume across nine issuers, continuing February’s trend during which opportunistic activity surged to 93% of launched deal flow. On a net basis, this week’s new launches yielded $2.1 billion of volume. Market conditions remained largely issuer-friendly, with a flex ratio of four deals tightening to just one moving wider, at least officially.

Portfolios in brief: Holds reflect the most recent reporting period available

ARCC, BlackRock Private Credit: Qlik Technologies (B3/B) – Amend-to-extend A Morgan Stanley-led arranger group outlined guidance of S+400-425 with a 0.5% floor and 99-99.5 offer price on the proposed three-year extension of Qlik’s approximately $1.39 billion term loan B. The CSA is set at 0 bps. Ares Capital holds $2.8M of the existing first-lien term loan due April 2024 (L+400, 0% floor), while BlackRock Private Credit retains $1.275M of the existing first-lien term loan due April 2024 (L+400, 0% floor). BBDC: U.S. Silica Co. (B-/B2) – Refi A BNP Paribas-led arranger group launched a $950 million term loan B for U.S. Silica. Price talk is circulating at S+475 with a 0.5% floor and a 97-98 OID. Lenders are offered six months of 101 soft call protection. Barings BDC holds $1.456M of the existing first-lien term loan due May 2025 (L+400, 1% floor). ORCC, CCAP: Wrench Group (B3/B-) – GCP Jefferies, Macquarie and Antares Capital launched a $150 million incremental term loan for Wrench Group, proceeds of which would be available for general corporate purposes, including future acquisitions. Arrangers are circulating price talk of S+475 with a 0.5% floor, a 97.5-98 OID and a flat 10 bps CSA. Owl Rock Capital’s ORCC Senior Loan Fund JV holds $32.008M of the existing first-lien term loan due April 2026 (L+400, 0% floor), while Crescent Capital BDC holds $4.833M of the existing second-lien term loan due April 2027 (L+787, 1% floor).