Allied Security, YRC, Diamond Foods, Kronos break; Ineos, CareCore, Hyland, YP update deals

By Sara Rosenberg

New York, Feb. 12 - Allied Security Holdings LLC's (AlliedBarton) term loans emerged in the secondary market on Wednesday, with the first-and second-lien loans quoted above their original issue discount prices, and YRC Worldwide Inc., Diamond Foods Inc. and Kronos Worldwide Inc. broke too.

Over in the primary, Ineos firmed pricing on its term loans at the high end of talk and increased the floors, and CareCore National LLC set pricing on its credit facility at the low end of talk, tightened the offer price on its term loan and extended the call protection.

Also, Hyland Software Inc. upsized its term loan; YP LLC increased its add-on size and modified the offer price; Seadrill Ltd. accelerated the commitment deadline on its term loan B; Synarc-BioCore Holdings LLC revised its bank meeting date; and C.H.I. Overhead Doors Inc. changed its launch plans to a call from a meeting.

Furthermore, La Quinta Corp., Revlon Consumer Products Corp., Wesco Aircraft Holdings Inc., Del Monte Corp. and TNS Inc. came out with additional details on their transactions with launch, and Arctic Glacier LLC and Nine West Holdings Inc. joined this week's calendar.

Allied Security frees up

Allied Security's term loans broke for trading on Wednesday, with the $840 million seven-year first-lien covenant-light term loan (B1/B) quoted at par ½ bid, 101 offered and the $365 million 71/2-year second-lien covenant-light term loan (Caa1/CCC+) quoted at par ¾ bid, 101¾ offered, according to a trader.

Pricing on the first-lien term loan, of which $220 million is delayed-draw, is Libor plus 325 bps with a 1% Libor floor and it was sold at an original issue discount of 991/2. There is 101 soft call protection for six months.

The second-lien term loan, of which $100 million is delayed-draw, is priced at Libor plus 700 bps with a 1% Libor floor and it was sold at a discount of 991/4. This tranche has call protection of 102 in year one and 101 in year two.

The delayed-draw debt has a ticking fee of half the spread from days 46 to 90 and the full spread thereafter.

Allied Security lead banks

Credit Suisse Securities (USA) LLC, HSBC Securities (USA) Inc., Natixis and SMBC are leading Allied Security's $1.21 billion loan deal.

During syndication, pricing on the first-lien term loan was reduced from Libor plus 350 bps, and the second-lien term loan saw its spread cut from Libor plus 725 bps and its offer price tighten from 99.

Proceeds will be used to refinance existing debt, fund a dividend and finance a potential acquisition.

Allied Security is a Conshohocken, Pa.-based provider of security officer services.

YRC starts trading

YRC Worldwide's credit facility also freed up, with the $700 million five-year senior secured term loan (Ba3/CCC+) quoted at par ¼ bid, par ¾ offered, according to a trader.

Pricing on the term loan is Libor plus 700 bps with a 1% Libor floor and it was sold at an original issue discount of 99. There is soft call protection to 102 in year one and 101 in year two.

Recently, the spread on the term loan was increased from Libor plus 675 bps and the call protection was changed from just 101 for one year.

The company's $1.15 billion credit facility also includes a $450 million ABL revolver.

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

YRC is an Overland Park, Kan.-based less-than-truckload carrier.

Diamond Foods breaks

Diamond Foods' $415 million 41/2-year first-lien covenant-light term loan (B2/B-) hit the secondary, with levels quoted at par bid, par ½ offered on the open and then it moved up to par ¼ bid, par ¾ offered, a source said.

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

Recently, pricing on the loan was trimmed from talk of Libor plus 375 bps to 400 bps.

The San Francisco-based packaged food company's $540 million senior secured credit facility also includes a $125 million asset-based revolver due in 2018.

Credit Suisse Securities (USA) LLC, Wells Fargo Securities LLC, Barclays, BMO Capital Markets and SunTrust Robinson Humphrey Inc. are leading the deal that will be used with $230 million of senior unsecured notes to refinance an existing credit facility due Feb. 25, 2015 and senior notes due 2020 held by Oaktree.

Kronos tops OID

Kronos' $350 million six-year term loan B (B1/B+/BB-) started trading as well, with levels seen at par ½ bid, 101½ offered, a trader remarked.

Pricing on the loan is Libor plus 375 bps with a 1% Libor floor and it was sold at a discount of 991/2. There is 101 hard call for one year.

During syndication, the loan was upsized from $275 million, pricing was cut from talk of Libor plus 425 bps to 450 bps, the discount was changed from 99 and the call protection was revised from hard call protection of 102 in year one and 101 in year two.

Deutsche Bank Securities Inc. is leading the deal that will be used to refinance existing debt.

Kronos is a Dallas-based producer of titanium dioxide pigments, the primary pigment for providing whiteness, brightness and opacity.

Ineos adjusts terms

In the primary, Ineos finalized the spread on its roughly $2,607,000,000 term loan due May 4, 2018 at Libor plus 275 bps, the wide end of the Libor plus 250 bps to 275 bps talk, and on its roughly €841 million term loan due May 4, 2018 at Euribor plus 300 bps, the high end of the Euribor plus 275 bps to 300 bps talk, moved the floors on the loans to 1% from 0.75% and eliminated step-down provisions, a market source said.

As before, the loans have a par offer price and 101 soft call protection for six months.

Recommitments for the senior secured covenant-light term loans were due at noon ET on Wednesday.

Barclays and Bank of America Merrill Lynch are leading the deal that will be used to reprice an existing U.S. term loan from Libor plus 300 bps with a 1% Libor floor and an existing euro term loan from Euribor plus 325 bps with a 1% floor.

With the repricing, the company is seeking an amendment to certain provisions of its credit agreement, and that amendment was changed to remove the proposal to permit open market purchases of loans, the source added.

Ineos is a Switzerland-based manufacturer of petrochemicals, specialty chemicals and oil products.

CareCore updates deal

CareCore firmed pricing on its $315 million term loan at Libor plus 450 bps, the tight end of the Libor plus 450 bps to 475 bps talk, moved the original issue discount to 99½ from 99, pushed out the 101 soft call protection to one year from six months and removed the MFN sunset provision, according to a market source. The 1% Libor floor was unchanged.

Also, pricing on the $75 million revolver was set Libor plus 450 bps, the low end of the Libor plus 450 bps to 475 bps talk.

Recommitments for the $390 million credit facility (B2/B) were due at the end of the day on Wednesday and allocations are expected on Thursday, the source remarked.

RBC Capital Markets, Fifth Third Bank and GE Capital Markets Inc. are leading the deal that will help fund the buyout of the company by General Atlantic LLC.

CareCore is a Bluffton, S.C.-based provider of specialty benefits management services to managed care organizations, self-insured entities and risk-bearing provider organizations.

Hyland ups loan

Hyland Software raised its seven-year first-lien covenant-light term loan (B2/B) to $475 million from $435 million and moved up the commitment deadline to 3 p.m. ET on Friday from Tuesday, according to a market source.

As before, the loan is priced at Libor plus 375 bps with a 1% Libor floor and an original issue discount of 991/2, and has 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC and Jefferies Finance LLC are leading the deal that will be used to refinance existing debt and fund a dividend.

Hyland is a Westlake, Ohio-based enterprise content-management software developer.

YP reworks add-on

YP lifted its add-on term loan B (B2) to $250 million from $200 million and tightened the offer price to par from 991/2, according to a market source.

Pricing on the add-on is Libor plus 675 bps with a 1.25% Libor floor, in line with the existing term loan B.

J.P. Morgan Securities LLC is leading the deal that will be used to fund a dividend.

YP is a Tucker, Ga.-based provider of local business print, online and mobile directory services.

Seadrill moves deadline

Seadrill revised the commitment deadline on its $1.7 billion seven-year term loan B (Ba3) to 5 p.m. ET on Thursday from noon ET on Friday, according to a market source.

The B loan is talked 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 one year.

Also included in the company's $1.8 billion credit facility is a $100 million first-out senior secured revolver (Baa3).

Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, Barclays and RBC Capital Markets are leading the deal that will be used to refinance existing debt and for general corporate purposes.

Closing is targeted for the third week of February.

Seadrill is an Oslo-based provider of offshore drilling services to the oil and gas industry.

Synarc-BioCore reschedules launch

Synarc-BioCore opted to delay the bank meeting for its $365 million credit facility to 3 p.m. ET in New York on Tuesday from 10 a.m. ET in New York on Thursday because of expected inclement weather, a market source said.

The facility consists of a $40 million revolver, a $225 million seven-year first-lien covenant-light term loan with 101 soft call protection for six months and a $100 million eight-year second-lien covenant-light term loan with call protection of 102 in year one and 101 in year two.

Credit Suisse Securities (USA) LLC, Jefferies Finance LLC and KeyBanc Capital Markets are leading the deal that will be used to help fund the merger of CCBR-Synarc, a Newark, Calif.-based provider of clinical services to pharmaceutical and biotechnology companies, and BioClinica Inc., a Newton, Pa.-based provider of integrated, technology-enhanced clinical trial management services.

Closing is expected this quarter.

Synarc-BioCore is a clinical imaging and patient recruitment company for pharmaceutical and CRO clinical trials.

C.H.I. Overhead

C.H.I. Overhead Doors will now hold a conference call on Thursday instead of a bank meeting to launch its fungible $70 million add-on term loan B due March 2019 due to weather, according to a market source.

Talk on the add-on is Libor plus 425 bps with a 1.25% Libor floor, in line with the existing B loan, and it is being offered with an upfront fee of 50 bps.

GE Capital Markets is leading the deal that will be used to fund a dividend.

C.H.I. Overhead is an Arthur, Ill.-based manufacturer of residential, commercial and rolling steel overhead garage doors.

La Quinta sets talk

In more primary happenings, La Quinta released talk of Libor plus 300 bps to 325 bps with a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months on its $2.1 billion seven-year term loan B that launched with a bank meeting on Wednesday, according to a market source.

The company's $2.35 billion credit facility (B1/BB-) also includes a $250 million five-year revolver.

J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc. and Deutsche Bank Securities Inc. are leading the deal that will be used to refinance existing debt.

La Quinta is a Dallas-based owner/operator of limited-service hotels.

Revlon details surface

Revlon Consumer Products held its call in the morning, launching a $675 million term loan B due Nov. 19, 2017 with talk of Libor plus 250 bps to 275 bps with a 0.75% Libor floor, a par offer price and 101 soft call protection for six months, according to a market source.

Proceeds will be used to refinance an existing term loan B due 2017 priced at Libor plus 300 bps with a 1% Libor floor.

Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Bank of America Merrill Lynch and Wells Fargo Securities LLC are leading the deal for which commitments are due on Feb. 20, the source added.

Closing is targeted for Feb. 25.

Revlon is a New York-based cosmetics and accessories company.

Wesco reveals guidance

Wesco Aircraft launched during the session its $525 million seven-year senior secured term loan B with talk of Libor plus 275 bps with a 0.75% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months, a market source said.

Bank of America Merrill Lynch, Barclays, Morgan Stanley Senior Funding Inc. and RBC Capital Markets are leading the deal that will be used with a $32.9 million draw under the company's existing revolver and $25 million of cash on hand to fund the $550 million purchase of Haas Group Inc. from The Jordan Co. LP.

With the transaction, the company is seeking an amendment to its existing credit facility to allow for the new term loan B, increase the consolidated total leverage ratio levels and increase negative covenant baskets.

Consolidated total leverage is expected to be 4.4 times.

Closing is expected by the end of this quarter, subject to customary conditions.

Valencia, Calif.-based Wesco and West Chester, Pa.-based Haas are providers of supply chain management services.

Del Monte launches

Del Monte held a call to launch a $1,726,000,000 term loan B due February 2020 with talk of Libor plus 250 bps to 275 bps with a 0.75% Libor floor, an original issue discount of 99¾ and 101 soft call protection for six months, according to sources.

J.P. Morgan Securities LLC and KKR Capital Markets are leading the deal for which commitments are due on Feb. 19, sources said.

Proceeds will be used to refinance an existing B loan priced at Libor plus 300 bps with a 1% Libor floor.

Currently, the existing term loan B is sized at $2,607,400,000 but about $881 million of that amount is expected to be repaid in connection with the sale of the company's consumer products business.

Del Monte is a San Francisco-based producer, distributor and marketer of pet products and food products.

TNS discloses OIDs

TNS announced original issue discount guidance of 99½ on its $70 million add-on first-lien term loan (BB-) and $115 million add-on second-lien term loan (B) that launched with a call, according to a market source.

Pricing on the tranches matches existing pricing, so the first-lien term loan is priced at Libor plus 400 bps with a 1% Libor floor, and the second-lien term loan is priced at Libor plus 800 bps with a 1% Libor floor.

SunTrust Robinson Humphrey Inc. and Macquarie Capital (USA) Inc. are leading the $185 million deal that will be used to fund a dividend.

With the add-ons, the company is asking to amend its existing credit facility to allow for the transaction, and lenders are being offered a 15 bps consent fee.

Pro forma leverage is 3.5 times through the first lien and 4.7 times through the second lien.

TNS is a Reston, Va.-based provider of data communications and interoperability services.

Arctic Glacier plans call

Arctic Glacier set a call for 2 p.m. ET on Thursday to launch a $279 million first-lien covenant-light term loan due May 2019 that is offered at par and has 101 soft call protection for six months, according to a market source.

Proceeds will be used to reprice an existing term loan from Libor plus 475 bps with a 1.25% Libor floor.

Commitments are due at 5 p.m. ET on Feb. 20, the source remarked.

Credit Suisse Securities (USA) LLC is leading the deal.

Arctic Glacier is a Winnipeg-based manufacturer and distributor of packaged ice.

Nine West on deck

Nine West scheduled a bank meeting for 9:30 a.m. ET in New York on Friday to launch a new senior credit facility, according to market sources, who said details on size and structure are not yet available.

Morgan Stanley Senior Funding Inc., Jefferies Finance LLC and MCS Capital Markets LLC are leading the deal.

Proceeds will be used to help fund the buyout of parent company, Jones Group Inc., by Sycamore Partners for $15.00 per share in cash in a transaction valued at about $2.2 billion, including net debt.

With the buyout, Jones Group will transfer ownership of its Jones Apparel business, its Kurt Geiger business and its Stuart Weitzman business to separate Sycamore affiliates, so that it will only be comprised of the Nine West business and the Jeanswear business.

Jones is a New York-based designer, marketer and wholesaler of apparel, footwear, jeanswear, jewelry and handbags.

© 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.