Vantiv, BJ's Wholesale break; Asurion dips with add-on news; Hawker Beechcraft softens

By Sara Rosenberg

New York, March 7 - Vantiv LLC's credit facility freed up for trading on Wednesday, with the term loan B initially bid right around its original issue discount price and then quickly moving higher from there, and BJ's Wholesale Club Inc. started trading too.

Also in the secondary, Asurion LLC's first- and second-lien term loans headed lower with talk that the company will be expanding the tranches so as to refinance debt at the holding company level, and Hawker Beechcraft Acquisition Co. LLC weakened on speculation of a restructuring.

Over in the primary, Graphic Packaging International Inc. upsized its pro rata tranches and discarded term loan B plans, LPL Financial LLC revealed tranching and price talk on its credit facility with launch, and Mirion Technologies began distributing guidance on its deal in preparation for an upcoming bank meeting.

Vantiv free to trade

Vantiv's credit facility began trading on Wednesday afternoon, with the $350 million seven-year term loan B quoted at 99½ bid, par offered on the open and then it moved to 99¾ bid, par ¼ offered, according to a trader.

Pricing on the B loan is Libor plus 275 basis points with a 1% Libor floor, and it was sold at an original issue discount of 991/2. There is 101 soft call protection for one year.

Recently, the spread on the loan was reduced from Libor plus 300 bps and the discount was tightened from 99 as a result of strong demand.

The company's $1.6 billion facility (Ba2) also includes a $250 million five-year revolver and a $1 billion five-year term loan A, both priced at Libor plus 225 bps. The revolver has a 50 bps undrawn fee.

J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Credit Suisse Securities (USA) LLC and Fifth Third Securities Inc. are leading the deal that will be used to refinance existing debt.

Vantiv is a Cincinnati-based integrated payment processor for merchants and financial institutions.

BJ's hits secondary

BJ's Wholesale's $1.075 billion first-lien term loan also broke, with levels quoted at par 3/8 bid, par ¾ offered, according to a market source.

Pricing on the loan is Libor plus 400 bps with a step-down to Libor plus 375 bps at first-lien leverage of 3.0 times. There is a 1.25% Libor floor and 101 soft call protection for one year.

During syndication, the spread firmed at the tight end of the Libor plus 400 bps to 425 bps talk and the step down was added.

Deutsche Bank Securities Inc. is leading the deal that is being used to reprice an existing first-lien term loan from Libor plus 575 bps with a 1.25% Libor floor.

When obtained in 2011, the existing loan was sold at a discount of 95 and it included 101 soft call protection for one year, which lenders are receiving with this repricing.

BJ's is a Westborough, Mass.-based operator of warehouse clubs.

Asurion slides

In more trading happenings, Asurion's 2011 first- and second-lien term loans were softer following word that the company will be coming to market with add-ons to the two tranches, according to traders.

The first-lien term loan was quoted by one trader at 99 3/8 bid 99¾ offered, down from 99¾ bid, par offered and by a second trader at 99 bid, 99½ offered, down from 99¾ bid, par ¼ offered.

And, the second-lien term loan was quoted by a trader at 101 bid, 102 offered, down from 102 bid, 103 offered.

Movement in the debt levels came as the company revealed early in the day that it will be holding a call at 10:30 a.m. ET on Thursday to launch an at least $575 million add-on first-lien term loan and an up to $300 million add-on second-lien term loan, traders explained.

Meanwhile, the NEW Asurion $1 billion term loan that just freed up for trading last month was unaffected by the news with levels staying flat at 101 bid, 102 offered, a trader added.

Asurion pricing

With the new deal announcement, lenders were told that Asurion will keep spread and Libor floor on its new first-and second-lien debt in line with existing loan terms - meaning the add-on first-lien term loan will be priced at Libor plus 400 bps with a 1.5% Libor floor and the add-on second-lien term loan will be priced at Libor plus 750 bps with a 1.5% Libor floor, a source remarked.

When obtained in May 2011, the first-lien term loan was sold at an original issue discount of 99 and the second-lien term loan was sold at a discount of 991/2. Original issue discounts on the new debt will be different, the source said, adding that details are not yet available.

The existing first-lien term loan has 101 soft call protection and the existing second-lien loan is non-callable for one year, then at 103 in year two and 101 in year three.

Asurion repaying debt

Proceeds from Asurion's incremental loans will be used to pay down the $575 million first-lien term loan at NEW Holdings and tender for the $300 million unsecured term loan at NEW Holdings at a price of 102.

The tender offer is subject to at least 50.1% of the debt being redeemed, and, if less than 100% is repurchased, the company will amend the unsecured loan to strip affirmative and negative covenants.

Morgan Stanley Senior Funding Inc., Bank of America Merrill Lynch, Goldman Sachs & Co., Barclays Capital Inc., Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. are leading the add-on loans, and Morgan Stanley is the auction manager on the tender offer.

Commitments are due at noon ET on Tuesday.

Asurion is a Nashville-based provider of technology protection services.

Hawker Beechcraft retreats

Hawker Beechcraft's strip of bank debt dropped on Wednesday to 72 bid, 74 offered from 73 bid, 75 offered with concerns that the company may be heading towards a restructuring, according to sources.

"[There was a] story out yesterday that the company has hired Alvarez & Marsal to assist with restructuring. Also, bonds began trading flat yesterday. All news points towards a restructuring in the near future," a buyside source remarked.

The company's 8½% and 8 7/8% bonds were quoted at 12 bid, 15 offered, and its 9¾% bonds were quoted at 2 bid, 5 offered during the session, a trader added.

Hawker Beechcraft is a Wichita, Kan., maker of business, general aviation, training and special mission aircraft.

Graphic ups pro rata

Switching to the primary, Graphic Packaging lifted its revolver to $1 billion from $800 million and its term loan A to $1 billion from $800 million, while canceling plans for a $400 million term loan B, according to a market source.

A bank meeting for the pro rata tranches took place on Feb. 24. The term loan B had not yet launched.

Pricing on the revolver and term loan A is Libor plus 225 bps.

Bank of America Merrill Lynch, SunTrust Robinson Humphrey Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. and J.P. Morgan Securities LLC are the lead banks on the $2 billion credit facility (Ba2/BBB) that will be used to refinance existing debt.

Graphic Packaging is a Marietta, Ga.-based provider of packaging services for food, beverage and other consumer products companies.

LPL details surface

LPL Financial held a bank meeting on Wednesday afternoon to launch its $1.6 billion credit facility, and with the event, tranching details and price talk were announced, according to sources.

The facility was previously described as a $250 million five-year undrawn revolver and $1.35 billion in term loans, but it is now known that the funded debt is comprised of a $550 million five-year term loan A and an $800 million seven-year term loan B, sources said.

Also, price talk on the revolver and term loan A came out at Libor plus 250 bps, subject to a net leverage grid, while the term loan B is talked at Libor plus 300 bps with a 1% Libor floor, an original issue discount of 99 to 99½ and 101 soft call protection for one year, sources continued.

Commitments are due on March 21.

LPL lead banks

Bank of America Merrill Lynch and Goldman Sachs & Co. are the joint lead arrangers on LPL Financials' credit facility, and they are bookrunners with Morgan Stanley & Co. LLC and J.P. Morgan Securities LLC.

Proceeds will be used to refinance an existing $163.5 million revolver and $1.33 billion in term loan debt, and to pay related refinancing expenses.

Pricing on the existing revolver is Libor plus 350 bps, on the term loan due 2013 is Libor plus 175 bps, on the term loan due 2015 is Libor plus 275 bps with a 1.5% Libor floor, and on the term loan due 2017 is Libor plus 375 bps with a 1.5% Libor floor, according to a recent 10-K filing.

Closing on the new credit facility is expected to occur in the second quarter.

LPL Financial is a broker-dealer, an RIA custodian and a consultant to retirement plans with offices in Boston, Charlotte, N.C., and San Diego.

Mirion floats talk

Mirion Technologies has scheduled a bank meeting for Thursday to launch a proposed $225 million credit facility (B1), and price talk on the deal was revealed as well, according to a market source.

The facility, which consists of a $25 million five-year revolver and a $200 million six-year term loan B, is being talked at Libor plus 500 bps with a 1.25% Libor floor, the source said.

The term loan B is being offered at an original issue discount of 98 and includes 101 soft call protection for one year, the source continued.

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

Mirion is a San Ramon, Calif.-based provider of mission critical products to detect, monitor and identify radiation.

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