Boyd Gaming, Multi Packaging Solutions, U.S. Renal Care, Keystone, Endurance break

By Sara Rosenberg

New York, Aug. 8 - Boyd Gaming Corp. firmed pricing on its term loan B at the low end of revised guidance and then the debt emerged in the secondary market, and Multi Packaging Solutions Inc., U.S. Renal Care Inc., Keystone Automotive Operations Inc. and Endurance International Group (EIG Investors Corp.) broke too.

Moving to the primary, Level 3 Financing Inc. trimmed the coupon on its term loan B-III, Yonkers Racing Corp. tightened the spread and original issue discount on its first-lien term loan, and American Capital Ltd. lowered pricing on its loan.

Also, Kinetic Concepts Inc. revealed original issue discount talk on its add-on term loan with its conference call, and RBS Global Inc. (Rexnord) launched its term loan and disclosed the full list of lead banks.

Boyd starts trading

Boyd Gaming's credit facility freed up for trading on Thursday, with the $900 million seven-year covenant-light term loan B quoted at par ½ bid, par ¾ offered, according to a trader.

Pricing on the B loan, which was downsized earlier from $1 billion, finalized at Libor plus 300 basis points, the low end of revised talk of Libor plus 300 bps to 325 bps and down from initial talk of Libor plus 350 bps. The debt has a 1% Libor floor and 101 soft call protection for six months and was issued at a discount of 991/2.

The company's $1.75 billion credit facility (Ba3/BB-) also includes a $250 million five-year term loan A, which was upsized from $150 million when the term loan B was downsized, and a $600 million five-year revolver. These tranches are priced at Libor plus 300 bps.

Bank of America Merrill Lynch, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, UBS Securities LLC, Wells Fargo Securities LLC and Nomura are leading the deal that will be used by the Las Vegas-based owner and operator of gaming entertainment properties to refinance existing debt.

Multi Packaging hits secondary

Multi Packaging Solutions' credit facility was another deal to break, with the $280 million seven-year covenant-light first-lien term loan B quoted at 99¾ bid, par ¾ offered on the open and then it moved to par bid, 101 offered, a source said.

Pricing on the B loan is Libor plus 325 bps with a 1% Libor floor and it was sold at a discount of 991/2. There is 101 soft call protection for six months.

During syndication, pricing on the loan was cut from talk of Libor plus 375 bps to 400 bps, the discount tightened from 99 and the foreign acquisition basket was changed to the greater of $100 million and 12% of total assets, from $75 million and 9.25% of total assets.

Multi Packaging getting revolver

In addition to the term loan B, Multi Packaging's $330 million senior secured credit facility includes a $50 million five-year revolver.

Barclays, Bank of America Merrill Lynch, Citigroup Global Markets Inc. and UBS Securities LLC are leading the deal that will help fund the company's buyout by Madison Dearborn Partners from Irving Place Capital and refinance its existing senior secured credit facility.

With this transaction, Multi Packaging Solutions, a New York-based manufacturer of printed folding cartons, labels, and inserts, will have senior secured leverage of 3.5 times and total leverage of 5.8 times.

U.S. Renal tops OIDs

U.S. Renal's credit facility made its way into the secondary as well, with the $637 million first-lien term loan (Ba3/B) due July 3, 2019 seen at par bid, 101 offered and the $160 million incremental second-lien term loan (B3/CCC+) due Jan. 3, 2020 seen at 98½ bid, according to a source

Pricing on the first-lien term loan, which includes $335 million of incremental debt and $302 million of existing debt, is Libor plus 425 bps with a step-down to Libor plus 400 bps at 5 times total net opco leverage. There is a 1% Libor floor and 101 soft call protection for one year. The incremental was issued at 99 and the existing debt was issued at par.

The second-lien loan is priced at Libor plus 750 bps with a 1% Libor floor and it was sold at a discount of 98. This tranche is non-callable for one year, then at 102 in year two and 101 in year three.

During syndication, pricing on the incremental first-lien debt was lowered from talk of Libor plus 450 bps to 475 bps, the step-down was added and the discount was modified from 98, the repricing of the existing first-lien term loan from Libor plus 500 bps with a 1.25% Libor floor was added to the transaction, and pricing on the second-lien term loan was trimmed from Libor plus 800 bps.

U.S. Renal funding acquisition

Proceeds from U.S. Renal's incremental term loans will be used to finance purchase of Ambulatory Services of America Inc., which is expected to close this month.

Barclays, RBC Capital Markets, Goldman Sachs Bank USA and SunTrust Robinson Humphrey Inc. are leading the deal.

U.S. Renal is a Plano, Texas-based developer, acquirer and operator of outpatient treatment centers for persons suffering from chronic kidney failure. Ambulatory Services is a Brentwood, Tenn.-based health care services company that provides alternative site services in partnership with physicians.

Keystone frees up

Keystone Automotive's credit facility also began trading, with the $235 million six-year first-lien term loan (B3/B) quoted at 99 bid, par offered and the $100 million seven-year second-lien term loan (Caa2/CCC+) quoted at par bid, 101 offered, according to a market source.

The first-lien term loan is priced at Libor plus 575 basis points with a 1.25% Libor floor and was sold at an original issue discount of 981/2. There is 101 soft call protection for one year.

Pricing on the second-lien term loan is Libor plus 950 bps with a 1.25% Libor floor and it was sold at a discount of 98. This tranche has call protection of 103 in year one, 102 in year two and 101 in year three.

During syndication, the spread on the first-lien loan was increased from Libor plus 475 bps and pricing on the second-lien loan was lifted from Libor plus 850 bps.

Keystone lead banks

UBS Securities LLC, Goldman Sachs Bank USA and Bank of America Merrill Lynch are leading Keystone's $360 million credit facility, which also includes a $25 million ABL revolver.

Proceeds will be used to repay existing debt and fund a dividend to shareholders.

Closing is scheduled for Tuesday.

Keystone is an Exeter, Pa.-based distributor and marketer of aftermarket automotive equipment and accessories.

Endurance breaks

Endurance International Group's $90 million first-lien tack-on term loan due November 2019 freed up in the afternoon, with levels quoted at par ½ bid, 101 offered, a market source remarked.

The tack-on is priced at Libor plus 500 bps with a 1.25% Libor floor and has 101 soft call protection through November 2013, just like the existing term loan, and the new debt was sold at an original issue discount of 99¾ after tightening from talk of 99 to 991/2, another source said.

Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc. and Goldman Sachs Bank USA are leading the deal that will be used for general corporate purposes and/or potential tuck-in acquisitions, the source added.

Endurance is a Burlington, Mass.-based provider of web hosting and online services.

BWIC announced

In more secondary happenings, a $73 million Bid Wanted In Competition emerged on Thursday, with bids due from market players at 10 a.m. ET on Friday, according to a trader.

Some of the debt in the portfolio is Aramark Corp.'s term loan C, Biomet Inc.'s term loan B-1, Community Health Systems Inc.'s extended term loan, First Data Corp.'s 2017 and 2018 term loans, HCA Inc.'s term loan B-4 and B-5, Scientific Games Corp.'s term loan B and Windstream Corp.'s term loan B-4.

The portfolio includes about 165 issuers, the trader added.

Level 3 flexes

Over in the primary, Level 3 Financing lowered pricing on its $815 million senior secured term loan B-III (Ba3/BB-/BB) due Aug. 1, 2019 to Libor plus 300 bps from Libor plus 325bps, while keeping the 1% Libor floor, par offer price and 101 soft call protection for six months intact, according to a market source.

Commitments were due at noon ET on Thursday. Closing is targeted for Monday.

Bank of America Merrill Lynch and Citigroup Global Markets Inc. are the joint lead arrangers on the deal and bookrunners with Morgan Stanley Senior Funding Inc., Credit Suisse Securities (USA) LLC, Jefferies Finance LLC and J.P. Morgan Securities LLC.

Proceeds will be used to refinance an existing $815 million term loan B due Aug. 1, 2019 that is priced at Libor plus 375 bps with a 1.5% Libor floor.

Level 3 is a Broomfield, Colo.-based provider of fiber-based communications services.

Yonkers tweaks first-lien

Yonkers Racing trimmed pricing on its $245 million first-lien term loan (Ba3/BB-) to Libor plus 325 bps from talk of Libor plus 350 bps to 375 bps and moved the original issue discount to 99½ from 99, according to a market source. The debt still has a 1% Libor floor and 101 soft call protection for six months.

Meanwhile, pricing on the company's $70 million second-lien term loan (B3/B-) was left unchanged at Libor plus 750 bps with a 1.25% Libor floor and a discount of 99, and there is still hard call protection of 103 in year one, 102 in year two and 101 in year three.

Recommitments are due at noon ET on Friday, the source added.

J.P. Morgan Securities LLC is leading the deal that will be used to redeem 11 3/8% senior secured notes due 2016.

Yonkers Racing is an owner and operator of a gaming and entertainment facility comprised of Empire City Casino and Yonkers Raceway.

American Capital trims pricing

American Capital reduced pricing on its $600 million term loan B (BB-) to Libor plus 300 bps from talk of Libor plus 325 bps to 350 bps, a market source said, adding that the debt still has a 1% Libor floor, a par offer price and 101 soft call protection for six months.

Following an amortization payment on Aug. 22, the term loan B will be sized at $450 million.

Lead bank, J.P. Morgan Securities LLC, asked for recommitments by 5 p.m. ET on Thursday.

Proceeds will be used to refinance an existing term loan B that is priced at Libor plus 425 bps with a 1.25% Libor floor.

American Capital is a Bethesda, Md.-based private equity firm and global asset manager.

Kinetic OID talk

Also in the primary, Kinetic Concepts held its call, launching its $350 million add-on term loan (Ba3/BB-) with original issue discount guidance of 99 to 991/2, according to a market source.

Pricing on the add-on is Libor plus 350 bps with a 1% Libor floor.

Lead banks, Bank of America Merrill Lynch, Morgan Stanley Senior Funding Inc. and Goldman Sachs Bank USA, are seeking commitments by Aug. 14, the source said.

Proceeds will be used to help fund the $485 million acquisition of Systagenix, a U.K.-based provider of advanced wound care products.

Closing is expected in the fourth quarter, subject to customary conditions, including applicable antitrust approvals.

Kinetic Concepts is a San Antonio, Texas-based medical technology company.

RBS discloses leads

RBS Global held its call on Thursday to launch its $1.95 billion seven-year first-lien covenant-light term loan (B2/B+), and ahead of the launch, the full list of lead banks on the transaction emerged, according to a market source.

As previously reported, the left lead is Credit Suisse Securities (USA) LLC, and now it is known that on the right is Deutsche Bank Securities Inc., Goldman Sachs Bank USA, Bank of America Merrill Lynch, BMO Capital Markets, Barclays, SMBC and Mizuho Securities USA Inc., the source said.

Talk on the term loan was announced earlier this week at Libor plus 300 bps to 325 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

Commitments are due on Aug. 14.

Proceeds will be used to refinance existing 8½% senior notes and a term loan.

RBS is a Milwaukee, Wis.-based multi-platform industrial company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.