LFI BDC Portfolio News 3/13/23: Morgan Stanley BDC among investors in Alight Solutions

LFI BDC Portfolio News 3/13/23: Morgan Stanley BDC among investors in Alight Solutions

Demand for well-rated paper continued to drive activity in the loan market during what was a somewhat-muted with many participants out at the J.P. Morgan Leveraged Finance conference. High-yield was dormant yet again, with Chairman Powell’s testimony before Congress indicating interest rates could be higher than earlier anticipated due to hot economic data. In the secondary, news that Platinum Equity-backed Solenis agreed to purchase Diversey sent Diversey debt higher, but Solenis debt cooled as the transaction entails committed debt financing. As expected, new-issue loan activity slowed to $6.5 billion via eight issuers, and $1 billion on a net basis as opportunistic deal flow continued to dominate. However, this week’s far more balanced flex ratio of 3:2 in favor of issuers shows a more discerning market for certain sectors and ratings categories. Moreover, late-week developments may mean new challenges ahead.

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

NH Private Income: Alight Solutions (fka Tempo Acquisition) (Ba3/B+) – Refi Investors received allocations of Alight Solutions’ (FKA Tempo Acquisition) $65 million fungible add-on term loan B (S+300, 0.5% floor), which broke to a 99.875-100.25 market from issuance at 99.75, sources said. BofA Securities was left lead on the deal, which priced tight to initial talk. Net proceeds refinance the issuer’s existing term loan due 2024. North Haven Private Income Fund holds $4.95 million of the first-lien term loan due August 2028.