LFI BDC Portfolio News 4/18/22: BrightView refinances ~$1B BDC-held 1L TL

LFI BDC Portfolio News 4/18/22: BrightView refinances ~$1B BDC-held 1L TL

A modest flow of new loan business continued to trickle out last week amid an emphasis on cleaning up deals ahead of the long weekend though the relatively stable broader market spurred some opportunistic business. High-yield was more impacted amid outflows and volatility in Treasuries, and secondary situations were in focus as earning season gets underway. New-issue loan launches totaled a reasonable $5.2 billion from seven issuers for the short week, with $2.7 billion of net proposed issuance. The stable secondary helped spur $2.9 billion of opportunistic business. Conditions are constructive but cautious at the margin, as this week’s flex activity of three up and four down demonstrates. It’s a change of pace from the prior two weeks when the rebound in the secondary pushed flex activity in favor of borrowers. Portfolios in brief: Holds reflect most recent reporting period available Kayne Anderson, Twin Brook: BrightView (B1/B+) – Refi Investors last week received allocations of BrightView Landscapes’ $1.2 billion term loan, which priced at S+325 with a 0.5% floor and a 99 OID. J.P. Morgan was left lead on the deal, which priced wide of guidance with changes to documentation. Proceeds refinance the roughly $1 billion outstanding under the issuer’s term loan due 2025 (L+250, 0% floor) and fund GCP. NYSE-listed BrightView, formerly Brickman, is a provider of commercial landscaping services in the U.S. Holders of the first-lien debt targeted in the refinancing include Kayne Anderson BDC ($13.1M), Kayne DL 2021 ($2.2M) and AG Twin Brook BDC with a total of roughly $3.6 million. ARCC, ORCIC, NMFC: Mavis Tire (B3/B-) – M&A, refi Investors last week received allocations of the $315 million add-on term loan for Mavis Tire Express (S+400, 0.75% floor), which was issued at 99.25. Jefferies arranged the loan, which cleared at the tight end of talk with a $40 million upsize to place cash on the balance sheet. The original $275 million will be used to fund an acquisition and repay revolver borrowings. Alongside the add-on, the issuer approached its lenders for a negative consent amendment to migrate its existing loan to SOFR-based pricing. Mavis, which is controlled by BayPine and TSG Consumer Partners, is an independent tire dealer and automotive aftermarket service provider with more 1,255 company-operated service centers and 194 franchised service centers. The borrower’s originally $1.915 billion term loan due 2028 was syndicated in April 2021. Holders of the existing first-lien debt include Ares Capital ($15.6M) and Owl Rock Core Income Corp. (nearly $10M). NMFC Senior Loan Program III holds $4.2M of the existing subordinated debt.