Mood Media breaks; Caesars up on amend, extend; Neiman, Manitowoc, Town Sports tweak deals

By Sara Rosenberg

New York, May 4 - Mood Media Corp.'s credit facility freed up for trading during Wednesday's market hours, Caesars Entertainment Operating Co. Inc.'s term loans were stronger as the company launched an amend and extend transaction, and Green Mountain Coffee Roasters Inc.'s term loan B moved lower on repayment news.

Moving to the primary, Neiman Marcus Group Inc. made changes to its term loan B, including reducing the spread and tightening the original issue discount, Manitowoc Co. Inc. upsized its credit facility while reducing B loan pricing, and Town Sports International Holdings Inc. raised pricing and sweetened call protection.

Also, Chrysler Group LLC, Revlon Consumer Products Corp., Metaldyne LLC, Spansion Inc. and Securus Technologies released price talk on their deals as all of these transactions were launched to lenders during the session, and Raycom Media Inc. disclosed original issue discount guidance on its term loan B.

Furthermore, Wall Street Systems, Virtual Radiologic, Helm Financial Corp., Dunkin' Brands Group Inc., Xerium Technologies Inc. and LabelCorp revealed plans for new loans, and Springleaf Financial Funding Co. and Valitas Health Services Inc. in market deals are oversubscribed.

Mood Media starts trading

Mood Media's credit facility hit the secondary market on Wednesday, with the $355 million first-lien term loan quoted at par ¼ bid, 101¼ offered on the open and then it moved to par ¾ bid, 101¼ offered, according to a trader.

As for the $100 million 71/2-year second-lien term loan, that was quoted at par ½ bid, 101½ offered, the trader said.

Pricing on the first-lien term loan, as well as on a $20 million revolver, is Libor plus 550 basis points, and pricing on the second-lien term loan is Libor plus 875 bps. All tranches include a 1.5% Libor floor and were sold at an original issue discount of 99. Both the first- and the second-lien term loans have call protection of 103 in year one, 102 in year two and 101 in year three.

Credit Suisse Securities (USA) LLC is the lead bank on the deal.

Mood Media buying Muzak

Proceeds from Mood Media's credit facility will be used to help fund the acquisition of Muzak Holdings LLC for $345 million, including net debt to be repaid on closing, and to refinance existing debt.

During syndication, the revolver was downsized from $25 million, the first-lien term loan was downsized from $390 million and the second-lien term loan was upsized from $65 million. Also, pricing on the revolver and first-lien term loan was increased from talk of Libor plus 475 bps to 500 bps, and pricing on the second-lien was decreased from Libor plus 900 bps. And, call protection on the first-lien term loan was revised from just 101 soft call protection for one year.

Prior to the changes, the revolver and first-lien term loan were rated B1/B, and the second-lien term loan was rated Caa1/CCC+. On Wednesday, Moody's said that it revised the revolver and first-lien term loan rating to Ba3, while leaving the second-lien rating unchanged.

Mood Media is a Toronto-based in-store media specialist. Muzak is a Fort Mill, S.C.-based provider of sensory branding services.

Caesars rises

Caesars Entertainment's term loans B-1, B-2 and B-3 moved to 94 bid, 94½ offered, from 93¾ bid, 94 offered after word of an amendment and extension proposal hit the market, according to a trader.

Under the amend and extend, the company is looking to move the maturity on the B-1, B-2 and B-3 to Jan. 28, 2018 from Jan. 20, 2015, convert up to $816 million of revolver commitments to extended term loans and extend the remaining revolver commitments to Jan. 28, 2015 from Jan. 28, 2014.

Pricing on the extended term loan will be Libor plus 425 bps and on the extended revolver will be Libor plus 350 bps. Non-extended term loan and revolver pricing is Libor plus 300 bps.

Also, the amendment would allow the Las Vegas-based casino entertainment company to buy back term loans at any time at prices that could be below par.

Bank of America Merrill Lynch is the lead bank on the deal that was launched with a call in the afternoon.

Green Mountain softens

Green Mountain Coffee Roasters' term loan B dropped to par bid, par 3/8 offered from 101 1/8 bid, 101½ offered as the company announced plans to pay down the debt, according to a trader.

Funds for the repayment will come from the sale of 7.1 million shares of common stock and the concurrent private placement of 455,707 shares to Luigi Lavazza S.p.A., according to a 424B3 filed with the Securities and Exchange Commission.

Any remaining proceeds from the shares offerings will be used for general corporate purposes, the filing added.

Green Mountain is a Waterbury, Vt.-based specialty coffee company.

Neiman Marcus flexes

Switching to the primary, Neiman Marcus cut pricing on its $2.06 billion seven-year term loan B (B2/BB-) to Libor plus 350 bps from talk of Libor plus 375 bps to 400 bps and moved the original issue discount to 99¾ from 991/2, while leaving the 1.25% Libor floor and 101 soft call protection for one year intact, according to a market source.

The changes were announced in the morning and recommitments were due later in the day.

The $2.76 billion amended and restated senior secured credit facility also includes a $700 million five-year ABL revolver that is priced at Libor plus 225 bps with a 37.5 bps unused fee.

Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Wells Fargo Securities LLC and Barclays Capital Inc. are the lead banks on the deal.

Neiman replacing debt

Proceeds from Neiman Marcus' credit facility, along with cash on hand, will be used to refinance existing bank debt and to repurchase or redeem the company's $752.4 million 9%/9¾% senior notes due 2015.

Basically, through the amendment and restatement, the company is increasing its term loan from $1.51 billion and increasing its revolver from $600 million, and it is the incremental loan proceeds that will be used for the notes buyback.

The company said in a news release that the purpose of the planned refinancing is to lower interest expense going forward by taking advantage of current market conditions.

Neiman Marcus is a Dallas-based high-end specialty retailer.

Manitowoc reworks deal

Also revealing changes was Manitowoc as its term loans were upsized, resulting in an overall senior secured credit facility (Ba2/BB) amount of $1.25 billion, up from $1.15 billion, and pricing on the B loan was trimmed, according to a market source.

Specifically, the 61/2-year term loan B was increased to $400 million from $350 million, pricing was lowered to Libor plus 300 bps from Libor plus 350 bps, and the original issue discount tightened to 99½ from 99, the source said. The 1.25% Libor floor and 101 soft call protection for one year were left unchanged.

In addition, the five-year term loan A was lifted to $350 million from $300 million, while pricing remained at Libor plus 300 bps with no floor, the source continued.

The credit facility still provides for a $500 million five-year revolver.

Manitowoc lead banks

J.P. Morgan Securities LLC, Deutsche Bank Securities Inc., Bank of America Merrill Lynch and Wells Fargo Securities LLC are the lead banks on Manitowoc's credit facility, which will be used to refinance existing bank debt.

At Dec. 31, the company had $24.2 million outstanding under a $400 million revolver, $459.7 million of term loan A borrowings and $338.1 million of term loan B debt. Then, on Jan. 14, the company used about $124 million of the proceeds from the sale of its Kysor/Warren and Kysor/Warren de Mexico businesses to pay down term loan A and B balances.

Manitowoc is a Manitowoc, Wis.-based manufacturer and seller of cranes and related products and foodservice equipment.

Town Sports ups spread again

Town Sports, a New York-based owner and operator of fitness clubs, moved pricing on its $300 million seven-year term loan B to Libor plus 550 bps from most recent talk of Libor plus 475 bps, and from initial talk at launch of Libor plus 425 bps to 450 bps, according to a market source.

In addition, call protection was changed to a hard call of 102 in year one and 101 in year two from 101 soft call protection for one year, the source said.

The 1.5% Libor floor and original issue discount of 99 were left unchanged. However, the discount had been widened earlier from talk of 991/2.

Deutsche Bank Securities Inc. and KeyBanc Capital Markets LLC are the lead banks on the deal that will be used to repay an existing credit facility and to redeem the company's 11% senior discount notes due 2014.

Chrysler reveals guidance

In more primary happenings, Chrysler held a bank meeting on Wednesday afternoon to kick off syndication on it proposed credit facility, and in connection with the event, term loan price talk emerged, according to a market source.

The $3.5 billion six-year term loan is talked at Libor plus 400 bps to 425 bps with a 1.25% Libor floor, an original issue discount of 99 to 99½ and 101 soft call protection for one year, the source said.

The company's $5 billion senior secured credit facility (Ba2/B+) also provides for a $1.5 billion five-year revolver.

Morgan Stanley & Co. Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. and Bank of America Merrill Lynch are the lead banks on the deal, with Morgan Stanley the left lead on the term loan and Citi the left lead on the revolver.

Chrysler selling notes

In addition to the credit facility, Chrysler is planning $2.5 billion of secured notes, and proceeds from the new debt will be used to help repay all of the company's loans provided by the U.S. Department of the Treasury and the Canadian federal and Ontario governments.

Other funds for the refinancing will come from $1.3 billion of proceeds from the recently announced exercise by Fiat of an option to acquire an incremental ownership interest in Chrysler.

Completion of the credit facility, debt offering and equity investment by Fiat are expected to occur concurrently in the second quarter.

Chrysler is an Auburn Hills, Mich.-based producer of Chrysler, Jeep, Dodge, Ram, Mopar and Fiat vehicles and products.

Revlon talk emerges

Revlon disclosed that its $800 million 61/2-year term loan is being talked at Libor plus 350 bps with a 1.5% Libor floor and an original issue discount of 991/2, according to a market source.

Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Wells Fargo Securities LLC and Natixis are the lead banks on the deal that launched to investors in the morning.

Proceeds will be used to refinance a $792 million term loan due March 2015 obtained in 2010 at pricing of Libor plus 400 bps with a 2% Libor floor, and was sold at an original issue discount of 981/4.

Total first-lien secured debt to LTM March 31 adjusted EBITDA is 2.9 times and total debt to LTM March 31 adjusted EBITDA is 4.6 times.

Revlon is a New York-based cosmetics, hair color, beauty tools, fragrances, skincare, anti-perspirant/deodorant and beauty care products company.

Metaldyne launches

Metaldyne launched on Wednesday as well, with its $355 million six-year term loan B talked at Libor plus 400 bps with a 1.25% Libor floor, a par offer price and 101 soft call protection for six months, according to a market source.

Deutsche Bank Securities Inc. is the lead bank on the deal that will be used to refinance existing debt, for general corporate purposes and potential shareholder actions.

Commitments are due on May 12.

Metaldyne is a Plymouth, Mich.-based designer and supplier of metal-formed components and assemblies for engine and transmission applications.

Spansion loan guidance

Spansion launched a repricing of its roughly $250 million term loan on Wednesday with price talk of Libor plus 350 bps to 375 bps with a 1.25% Libor floor and 101 soft call protection for one year, according to a market source.

By comparison, current pricing on the term loan is Libor plus 475 bps with a 1.75% Libor floor. Existing lenders are getting paid down at 101 due to call protection.

Morgan Stanley & Co. Inc. is leading the deal for the Sunnyvale, Calif.-based semiconductor device company.

Securus pricing

Also launching Wednesday was Securus Technologies, at which time lenders were told that the $233 million first-lien term loan B is being talked at Libor plus 425 bps with a 1.5% Libor floor and an original issue discount of 99, according to a market source.

Also, the $97 million second-lien term loan is being talked at Libor plus 825 bps with a 1.75% Libor floor, an original issue discount of 98 and call protection of 103 in year one, 102 in year two and 101 in year three, the source added.

BNP Paribas Securities Corp. and GE Capital Markets are the lead banks on the $365 million deal that also includes a $35 million revolver.

Proceeds will be used to help fund the buyout of Securus, a Dallas-based provider of specialized telecommunications products and services for the corrections communications marketplace, by Castle Harlan from H.I.G. Capital.

Raycom Media OID

Raycom Media launched its $200 million six-year term loan B on Wednesday with an original issue discount of 99, according to a market source. Price talk on the loan emerged earlier at Libor plus 325 bps with a 1.25% Libor floor.

The company's $700 million credit facility also includes a $200 million five-year revolver and a $300 million five-year term loan A, with both of these tranches talked at Libor plus 275 bps.

Wells Fargo Securities LLC and GE Capital Markets are the lead banks on the deal that will be used to refinance existing debt.

Raycom is a Montgomery, Ala.-based broadcaster and owner and operator of television stations.

Wall Street readies launch

Wall Street Systems surfaced with plans for a new $350 million credit facility that is set to launch with a bank meeting on Monday at 2 p.m. ET, according to a market source.

The facility consists of a $25 million five-year revolver, a $200 million six-year first-lien term loan and a $125 million seven-year second-lien term loan, the source said, adding that price talk is not yet available.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to help fund the buyout of the company by ION Investment Group, a portfolio company of TA Associates, from Warburg Pincus.

Wall Street Systems is a New York-based provider of treasury management, central banking and FX trade processing solutions. ION is a provider of trading technology and trade processing solutions for the financial industry.

Virtual Radiologic div recap

Virtual Radiologic is set to hold a bank meeting on Thursday to launch a proposed $296 million credit facility that will be used for a dividend recapitalization, according to a market source.

The facility consists of a $40 million revolver and a $256 million term loan, with both tranches talked at Libor plus 500 bps with a 1.5% Libor floor and an original issue discount of 99, the source said.

GE Capital Markets is the lead bank on the deal.

Virtual Radiologic is an Eden Prairie, Minn.-based radiology practice and developer of radiologist workflow technology.

Helm plans refi

Helm Financial is scheduled to hold a bank meeting on Friday to launch a proposed $170 million credit facility that will be used to refinance existing debt, according to a market source.

The facility consists of a $50 million revolver and a $120 million term loan, the source said. Price talk is not yet available.

Credit Suisse Securities (USA) LLC and Guggenheim are leading the deal.

Following completion of the refinancing, Helm Financial, a San Francisco-based rail equipment lessor, will be levered at 3.3 times.

Dunkin' getting term loan

Dunkin' Brands has set a lender call for 11 a.m. ET on Friday to launch a proposed $100 million term loan that is being led by Barclays Capital Inc., according to a market source.

Proceeds from the term loan, along with proceeds from a proposed initial public offering of common stock, will be used to repay all of the company's $475 million of 9 5/8% senior notes due Dec. 1, 2018 and for working capital and general corporate purposes.

Early this year, the company got a $1.4 billion term loan B as part of a refinancing/repricing transaction that is priced at Libor plus 300 basis points with a 1.25% Libor floor, and was sold at par. There is 101 soft call protection for one year.

Canton, Mass.-based Dunkin' Brands is the parent company of Dunkin' Donuts, a coffee and baked goods restaurant chain, and Baskin-Robbins, an ice cream specialty store chain.

Xerium coming soon

Xerium Technologies will launch with a bank meeting on Thursday a new $285 million multi-currency senior secured credit facility that will be used to refinance existing bank debt, according to a market source.

Citigroup Global Markets Inc. and Jefferies & Co. are the lead banks on the deal.

Closing is expected to occur later this month.

Xerium is a Raleigh, N.C.-based manufacturer of industrial textiles and rolls used primarily in the paper production process.

LabelCorp sets launch

LabelCorp (York Label) scheduled a bank meeting for 10 a.m. ET on Friday to launch a proposed $275 million credit facility that consists of a $25 million five-year revolver, a $150 million six-year first-lien term loan B and a $100 million 61/2-year second-lien term loan, according to sources.

Bank of America Merrill Lynch and Deutsche Bank Securities Inc. are the lead banks on the deal that will be used to refinance existing debt.

LabelCorp is an Omaha, Neb.-based provider of labeling technologies to consumer goods, wine & spirits, pharmaceutical and food & beverage companies.

Springleaf well met

In other news, Springleaf Financial Funding's $3 billion six-year senior secured term loan has received a good amount of interest from investors since launching last Friday, so much so that the tranche was oversubscribed before Wednesday's 5 p.m. ET commitment deadline, a market source told Prospect News.

The term loan is being talked at Libor plus 425 bps with a 1.25% Libor floor, an original issue discount of 99½ and hard call protection of 102 in year one and 101 in year two.

Bank of America Merrill Lynch is the lead arranger on the deal that will be used to refinance the company's existing term loan obtained last year at pricing of Libor plus 550 bps with a 1.75% Libor floor and sold at an original issue discount of 981/2.

Springleaf Financial is an Evansville, Ind.-based provider of loans, retail financing and other credit related products.

Valitas going strong

Valitas Health Services' $360 million senior secured credit facility (Ba3/B) is also oversubscribed, with lenders still having until Tuesday to get place their orders, according to a market source.

The facility consists of a $285 million six-year term loan talked at Libor plus 450 bps with a 1.5% Libor floor and an original issue discount of 99, and a $75 million five-year revolver.

Barclays Capital Inc. and Bank of America Merrill Lynch are the lead banks on the deal that will be used, along with $100 million of mezzanine debt, to fund the acquisition of America Service Group Inc. for $26.00 per share in cash, or about $250 million.

Closing is expected in the second quarter, subject to the approval of America Service Group's stockholders and governmental and regulatory approval.

St. Louis-based Valitas and Brentwood, Tenn.-based America Service are providers of health care services to the incarcerated population. The combined company will be based in Brentwood, Tenn.

Surgery center closes

Surgery Center Holdings Inc. completed its acquisition of NovaMed Inc. for $13.25 per share in cash, according to a news release.

To help fund the transaction, the company got a new $260 million senior secured credit facility (Ba3/B+) led by Jefferies Finance LLC consisting of a $20 million revolver and a $240 million term loan.

Pricing on the tranches is Libor plus 500 bps with a 1.5% Libor floor, and they were sold at an original issue discount of 991/2. The term loan includes 101 soft call protection for one year.

During syndication, the term loan was upsized from $237.5 million and the call premium was added. And, pricing was reduced from Libor plus 525 bps and the discount moved from 99.

Surgery Center is a Tampa, Fla.-based acquirer, developer and manager of free-standing ambulatory surgical centers. NovaMed is a Chicago-based operator, developer and acquirer of ambulatory surgery centers.

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