Albertson’s frees to trade; Charter Communications, Visant, Packaging Coordinators revised

By Sara Rosenberg

New York, Aug. 11 – Albertson’s Holdings LLC (Safeway Acquisition Merger Sub Inc.) saw its term loans emerge in the secondary market on Monday with levels quoted above the debts’ original issue discounts.

Switching to the primary, Charter Communications Operating LLC reduced its institutional term loan size and updated pricing, and Visant Corp. lifted the spread on its term loan, widened the original issue discount and extended the call protection.

Also, Packaging Coordinators Inc. moved some funds to its first-lien term loan from its second-lien term loan, raised pricing on both tranches, and sweetened the offer price and call protection on the first-lien debt.

Albertson’s starts trading

Albertson’s Holdings’ bank debt freed up on Monday, with the $950 million five-year first-lien covenant-light term loan B-3 quoted at 98 5/8 bid, 99 offered and the $3,609,000,000 seven-year first-lien covenant-light term loan B-4 quoted at 98¾ bid, 99 offered, according to a trader.

Pricing on the term loan B-3 is Libor plus 400 basis points with a 1% Libor floor and it was sold at an original issue discount of 98½. There is 101 soft call protection for one year.

The term loan B-4 is priced at Libor plus 450 bps with a 1% Libor floor and it was issued at a discount of 98½. This tranche also has 101 soft call protection for one year.

During syndication, the term loan B-3 was reduced from $1,519,000,000, pricing firmed at the wide end of revised talk of Libor plus 375 bps to 400 bps and up from initial talk of Libor plus 325 bps, and the original issue discount widened from revised talk of 99 and initial talk of 99½.

Additionally, the term loan B-4 was increased from $3.04 billion, pricing settled at the high end of revised talk of Libor plus 425 bps to 450 bps and up from original talk of Libor plus 375 bps, the discount was modified from 99, and the call protection on both tranches was extended from six months.

Albertson’s buying Safeway

Proceeds from Albertson’s $4,559,000,000 of term loans (Ba3/BB-) will be used to fund the acquisition of Safeway Inc., which is subject to customary conditions, including approval by Safeway shareholders and regulatory approvals.

The term loans have a ticking fee of the full spread starting on day 31.

Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch, Citigroup Global Markets Inc., Morgan Stanley Senior Funding Inc., Barclays, Deutsche Bank Securities Inc., PNC Capital Markets LLC, US Bank and SunTrust Robinson Humphrey Inc. are leading the deal.

Albertson’s is a Spokane, Wash.-based supermarket chain. Safeway is a Pleasanton, Calif.-based food and drug retailer.

Charter reworked

Moving to the primary, Charter Communications told investors that it is now seeking a minimum $3.5 billion seven-year first-lien term loan G talked at Libor plus 350 bps with a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, according to a market source.

This compares to the company’s originally ask for a $3.2 billion six-year term loan G talked at Libor plus 275 bps to 300 bps with a 0.75% Libor floor, a discount of 99½ and 101 soft call protection for six months, and a $4.2 billion seven-year term loan H talked at Libor plus 275 bps to 300 bps with a 0.75% Libor floor, a discount of 99 and101 soft call protection for six months.

Also, the revised term loan G will fund immediately into escrow, includes a ticking fee of the full spread and Libor floor upon funding, and has 0 bps MFN, triggered only by the balance of acquisition proceeds and applying to secured loans and secured bonds, the source remarked.

Recommitments were due at 5 p.m. ET on Monday and closing is expected in early-to mid-September.

Charter lead banks

Goldman Sachs Bank USA, Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. are leading Charter’s senior secured deal that will be used to fund the acquisitions of customers and systems from Comcast Corp.

The acquisitions are conditioned on the completion of the merger of Comcast and Time Warner Cable, as well as the receipt of Hart-Scott-Rodino, FCC and other required regulatory approvals, Charter shareholder approval and various other matters.

Following the close of the Comcast-Time Warner Cable merger, Charter will buy systems serving about 1.4 million of the prior Time Warner Cable video customers for an estimated value of $7.4 billion based on projected 2014 EBITDA.

Furthermore, Charter will own through the issuance of stock to Comcast shareholders, about 33% of the new publicly traded cable provider (SpinCo) to be spun off by Comcast serving about 2.5 million customers, and Comcast shareholders will own about 67% of SpinCo.

Charter is a Stamford, Conn.-based broadband communications company and cable operator.

Visant revises deal

Visant raised pricing on its $775 million seven-year first-lien term loan to Libor plus 600 bps from Libor plus 450 bps, moved the original issue discount to 98 from 99 and pushed out the 101 soft call protection to one year from six months, a market source said.

As before, the term loan has a 1% Libor floor.

The company’s $875 million credit facility (BB-) also includes a $100 million revolver.

Recommitments are due at noon ET on Wednesday, the source continued.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to refinance existing bank debt.

Visant is an Armonk, N.Y.-based marketing and publishing services enterprise servicing the school affinity, direct marketing, fragrance, cosmetic and personal care sampling and packaging and educational and trade publishing segments.

Packaging Coordinators restructures

Packaging Coordinators raised its seven-year first-lien term loan to $355 million from $340 million, lifted pricing to Libor plus 425 bps from Libor plus 400 bps, widened the original issue discount to 99 from 99½ and extended the 101 soft call protection to one year from six months, according to a market source, who added that the 1% Libor floor was left intact.

Also, the eight-year second-lien term loan was cut to $105 million from $120 million and pricing was flexed to Libor plus 800 bps from talk of Libor plus 725 bps to 750 bps, while the 1% Libor floor, discount of 99 and call protection of 102 in year one and 101 in year two were unchanged, the source said.

Recommitments for the company’s $510 million credit facility, which also includes a $50 million five-year revolver, are due by noon ET on Tuesday, the source added.

RBC Capital Markets LLC, Deutsche Bank Securities Inc. and GE Capital Markets are leading the deal that will be used to refinance existing debt and to partially fund the acquisition of a related business.

Packaging Coordinators is a provider of commercial packaging and clinical trial services for the pharmaceutical industry.

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