Par Pharma, SBA, Chrysler, Dunkin', NewPage, ExGen break; Ziggo, PeroxyChem, Bob's reworked

By Sara Rosenberg

New York, Feb. 5 - Par Pharmaceutical Cos. Inc. set the spread on its term loan at the high end of talk, tightened the original issue discount on its add-on debt and then freed up for trading, and SBA Communications Corp., Chrysler Group LLC, Dunkin' Brands Group Inc., NewPage Corp. and ExGen Renewables I LLC made their way into the secondary, too.

In more happenings, Ziggo revealed U.S. and euro term loan tranches sizes, firmed pricing at the high end of guidance and revised the ticking fee, and PeroxyChem increased the coupon on its term loan.

Also, Bob's Discount Furniture Inc. raised the spread on its first-lien term loan and widened the discount on its second-lien term loan, and Regent Seven Seas Cruises and Oceania Cruises Inc. finalized pricing on their loans at the low end of guidance.

Furthermore, Caraustar Industries Inc. launched a first-lien tack-on term loan to investors, and Fieldwood Energy LLC set timing on its new deal.

Par Pharma tweaked, breaks

Par Pharmaceutical finalized pricing on its $1.45 billion term loan (B1/B) due September 2019 at Libor plus 300 basis points, the wide end of the Libor plus 275 bps to 300 bps talk, and modified the offer price on the $395 million of add-on debt included in the tranche to 99¾ from 991/2, according to a market source. The 1% Libor floor and 101 soft call protection for six months were unchanged.

The add-on will be used to help fund the $490 million acquisition of JHP Group Holdings, a specialty pharmaceutical company that makes sterile injectable products, that is expected to close this quarter, and the remaining $1,055,000,000 of the term loan tranche will be used to reprice an existing term loan from Libor plus 325 bps with a 1% Libor floor. The repricing was issued at par.

With final terms in place, the deal broke for trading in the afternoon, with levels seen at par bid, par ½ offered, a trader added.

Bank of America Merrill Lynch and Goldman Sachs Bank USA are leading the deal for the Woodcliff Lake, N.J.-based specialty pharmaceutical company.

SBA frees to trade

SBA Communications' $1.5 billion seven-year incremental senior secured term loan B (BB) began trading too, with levels quoted at par bid, par ½ offered on the break and then it moved to par 1/8 bid, par 7/8 offered, a trader said.

Pricing on the term loan B is Libor plus 250 bps with a 0.75% Libor floor and it was sold at a discount of 993/4. There is 101 soft call protection for six months and a ticking fee of half the spread from day 46 until March 31.

During syndication, the loan was upsized from $1 billion, the spread firmed at the tight end of the Libor plus 250 bps to 275 bps talk and the discount was changed from 991/2.

Citigroup Global Markets Inc., Barclays, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, TD Securities (USA) LLC, RBS Securities Inc. and Wells Fargo Securities LLC are leading the deal that will be used to fund the acquisition of 2,007 wireless sites in Brazil from Oi SA for about R$1,525,000,000. Funds from the upsizing will be used to refinance existing term loan B debt and for general corporate purposes.

SBA is a Boca Raton, Fla.-based wireless communications infrastructure company.

Chrysler levels surface

Chrysler's term loans broke during the session, with the $1.75 billion term loan due December 2018 quoted par bid, par ½ offered and the $250 million add-on term loan due May 2017 quoted at par ½ bid, 101 offered, according to a trader.

Pricing on the 2018 term loan is Libor plus 250 bps with a 0.75% Libor floor and it was sold at a discount of 991/2. There is 101 soft call protection for six months.

The add-on loan is priced at Libor plus 275 bps with a 0.75% Libor floor and was sold at 99 7/8. The add-on has the same spread and floor as the company's existing term loan due May 2017, as well as the same call protection, which is a 101 soft call that expires six months from December 2013.

Earlier this week, the spread on the 2018 loan was cut from Libor plus 275 bps and the discount on the add-on loan was tightened from 993/4.

Chrysler repaying note

Proceeds from Chrysler's $2 billion of senior secured term loans (Ba1/BB+) and $2,755,000,000 of senior secured notes will repay all of its unsecured note issued on June 10, 2009 to the VEBA Trust.

The bond offering was upsized from $2.7 billion.

J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Barclays, Citigroup Global Markets Inc., Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc. and UBS Securities LLC are leading the term loans that are expected to close on Friday.

Chrysler is an Auburn Hills, Mich.-based automotive company.

Dunkin' hits secondary

Dunkin' Brands' term loans also freed up, with the $1,379,000,000 term loan B-4 due February 2021 quoted at 99 7/8 bid, par 1/8 offered and the $450 million term loan C due 2017 quoted at par bid, par ½ offered, another trader remarked.

Pricing on the term loan B-4 is Libor plus 250 bps with a 0.75% Libor floor and was sold at a discount of 993/4. There is 101 soft call protection for six months.

The term loan C is priced at Libor plus 250 bps with no Libor floor and was sold at 993/4. This debt has 101 soft call protection for six months as well.

Dunkin' refinancing

Proceeds from Dunkin' Brands' term loans (B+) will be used to refinance an existing term loan due 2020 priced at Libor plus 275 bps with a 1% Libor floor.

During syndication of the new deal, the 2021 term loan was reduced from $1,829,000,000, pricing was set at the wide end of the Libor plus 225 bps to 250 bps talk and the discount firmed at the high side of the 99¾ to par talk. Also, the 2017 loan was added to the capital structure and the spread came at the wide end of the Libor plus 225 bps to 250 bps talk.

J.P. Morgan Securities LLC, Barclays and Goldman Sachs Bank USA are leading the deal.

Dunkin' Brands is a Canton, Mass.-based franchisor of quick-service restaurants serving hot and cold coffee and baked goods as well as hard-serve ice cream.

NewPage tops OID

NewPage's $750 million seven-year first-lien term loan (B2/B+) emerged in the secondary as well, with levels seen at 99½ bid, par ¼ offered, a trader said.

Pricing on the loan is Libor plus 825 bps with a 1.25% Libor floor and it was sold at an original issue discount of 98. There is call protection of 103 in year one, 102 in year two and 101 in year three, with the provision that it is callable at par for 30 days if the merger agreement with Verso Paper Corp. is terminated.

Recently, pricing on the loan was increased from talk of Libor plus 750 bps to 775 bps, the discount widened from 99 and amortization was revised to 5% per annum for 18 months after an 18-month holiday, 7.5% for a year and 10% thereafter, from just 5% per annum after an 18-month holiday.

The company's $1.1 billion senior secured credit facility also includes a $350 million five-year asset-based revolver priced at Libor plus 200 bps with a 50 bps unused fee.

Pro forma for the proposed financing, net leverage is 2.7 times 2013E adjusted EBITDA.

NewPage, Verso merger

Under the merger agreement with Verso, NewPage's equity holders will receive total cash and debt consideration of $900 million, consisting of $250 million in cash to be paid as a special dividend, $650 million of new Verso first-lien notes to be issued at closing and shares of Verso common stock representing 20% of the outstanding shares as of immediately prior to closing.

Proceeds from the new credit facility will be used to fund the dividend, refinance NewPage's existing $495 million term loan and replace an existing $350 million ABL facility.

Credit Suisse Securities (USA) LLC, Barclays, UBS Securities LLC and BMO Capital Markets are leading the deal, with Credit Suisse the left lead on the term loan and Barclays the left lead on the revolver.

Closing on the credit facility is targeted for this week, while closing on the acquisition is expected in the second half of the year.

NewPage is a Miamisburg, Ohio-based producer of printing and specialty papers. Verso is a Memphis, Tenn.-based producer of coated papers.

ExGen breaks

Another deal to free up was ExGen's $300 million seven-year first-lien HoldCo senior secured term loan (Ba3/BB-), with levels quoted at 99¾ bid, par ¾ offered, according to a trader.

The loan is priced at Libor plus 425 bps with a 1% Libor floor and was issued at 991/2. There is soft call protection of 102 in year one and 101 in year two.

The other day, pricing on the loan was trimmed from talk of Libor plus 450 bps to 475 bps and the original issue discount was moved from 99.

Barclays is leading the deal that will be used to make a distribution to parent company Exelon Corp. and for general corporate purposes.

ExGen is an operator of a portfolio of 13 contracted wind energy assets.

Ziggo updates emerge

Back in the primary, Ziggo sets its U.S. senior secured term loan B due Jan. 15, 2022 size at $2.35 billion and firmed pricing at Libor plus 275 bps, the wide end of the Libor plus 250 bps to 275 bps talk, according to a market source.

Also, the euro senior secured term loan B due Jan. 15, 2022 size came out as €2 billion and the spread was set at Euribor plus 300 bps, the high end of the Euribor plus 275 bps to 300 bps, the source said.

Additionally, the ticking fee on the entire €3,735,000,000-equivalent term loan B (Ba3/BB-) was modified to half the spread for days 31 to 105 and the full spread thereafter, from half the spread from days 61 to 120 and the full spread thereafter, the source continued.

Unchanged on the entire term loan B was the 0.75% floor, original issue discount of 99¾ and 101 soft call protection for six months.

Ziggo lead banks

Credit Suisse Securities (USA) LLC and Bank of America Merrill Lynch are the global coordinators on Ziggo's loan and bookrunners with ABN Amro Inc., Credit Agricole Securities (USA) Inc., Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., ING Financial Markets LLC, J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc., Nomura Securities Co. Ltd., Rabobank, Scotiabank and Societe Generale. Scotiabank is the administrative agent.

Proceeds will refinance existing Ziggo debt and help fund the acquisition of Ziggo by Liberty Global plc for about €10 billion, in which Ziggo shareholders will receive €11.00 in cash, 0.2282 Liberty Global Class A ordinary shares and 0.5630 Liberty Global Class C ordinary shares for each Ziggo share that they hold.

Closing is expected in the second half of this year.

Ziggo is an Utrecht, the Netherlands-based provider of entertainment, information and communication through television, internet and telephony services. Liberty is an Englewood, Colo.-based cable company.

PeroxyChem flexes

PeroxyChem lifted pricing on its $135 million six-year first-lien term loan to Libor plus 650 bps from talk of Libor plus 500 bps to 525 bps, and left the 1% Libor floor, original issue discount of 98 and 101 soft call protection for one year unchanged, according to a market source.

Commitments are due at 2 p.m. ET on Thursday, the source remarked.

The company's $155 million credit facility (B2/B+) also includes a $20 million five-year revolver.

Macquarie Capital is leading the deal that will be used to help fund the acquisition of FMC Corp.'s Peroxygens business by One Equity Partners for about $200 million.

Closing is expected this quarter, subject to regulatory approvals and customary conditions.

PeroxyChem is a supplier of hydrogen peroxide, persulfate products, peracetic acid and other eco-friendly specialty oxidants.

Bob's revises terms

Bob's Discount Furniture lifted pricing on its $180 million first-lien term loan (B2/B) to Libor plus 425 bps from Libor plus 400 bps, while keeping the 1% Libor floor and original issue discount of 99 intact, according to a market source.

As for the $80 million second-lien term loan (Caa1/CCC+), the offer price was revised to 98 from 99, but pricing was left at Libor plus 800 bps with a 1% Libor floor, the source remarked.

The company's $300 million senior secured credit facility also includes a $40 million asset-based revolver.

RBC Capital Markets and UBS Securities LLC are leading the deal that will be used to help fund the buyout of the company by Bain Capital. At close, which is expected this quarter, management will continue to own a significant stake in the company.

Bob's is a Manchester, Conn.-based retailer of furniture and bedding.

Regent Seven firms spread

Regent Seven Seas Cruises set the coupon on its $246 million term loan B at Libor plus 275 bps, the tight end of the Libor plus 275 bps to 300 bps talk, according to a market source, who said the 1% Libor floor, par offer price and 101 soft call protection for six months were unchanged.

Deutsche Bank Securities Inc. is leading the deal that will be used to reprice an existing term loan B from Libor plus 350 bps with a 1.25% Libor floor.

As part of the repricing, the company is paying down $50 million of its existing term loan B, which is why the new deal is sized at $246 million.

Regent Seven Seas is a Miami-based cruise ship company.

Oceania sets pricing

Oceania Cruises firmed its $249 million term loan B (B+) due July 2020 at Libor plus 425 bps, the low end of the Libor plus 425 bps to 450 bps talk, according to a market source.

As before, the loan has a 1% Libor floor, a par offer price and 101 soft call protection for six months.

Deutsche Bank Securities Inc. is leading the deal that will be used to reprice the company's existing term loan B from Libor plus 575 bps with a 1% Libor floor.

With the repricing, the company is paying down $50 million of the term loan B, resulting in the new $249 million size.

Oceania Cruises is a Miami-based upper premium cruise line.

Caraustar holds call

Also in the primary, Caraustar announced in the morning plans to hold a call at 2 p.m. ET on Wednesday to launch a fungible $80 million first-lien tack-on covenant-light term loan due May 2019 talked at Libor plus 625 bps with a 1.25% Libor floor an original issue discount of 99, and call protection of 102 through May 1, 2014 and 101 for a year thereafter, a market source said.

The spread, floor and call protection match the existing first-lien term loan.

Proceeds will be used to fund a dividend to shareholders.

Also, the company launched an amendment to its existing credit facility to allow for the new debt and the one-time dividend, and lenders are being offered a 10 bps consent fee.

Credit Suisse Securities (USA) LLC is the sole bookrunner on the deal, for which commitments are due on Feb. 12, and a joint lead arranger with Goldman Sachs Bank USA and Jefferies Finance LLC.

Caraustar is an Austell, Ga.-based manufacturer of recycled paperboard products and packaging.

Fieldwood on deck

Fieldwood Energy set a term loan lender call for 11:30 a.m. ET on Monday to launch the financing for its acquisition of SandRidge Energy Inc.'s Gulf of Mexico and Gulf Coast business, according to a market source.

The assets are being acquired for $750 million, and as part of the transaction, SandRidge will retain a 2% overriding royalty interest in two identified exploration prospects.

Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Deutsche Bank Securities Inc., Bank of America Merrill Lynch and Goldman Sachs Bank USA are leading the deal.

Fieldwood is a Houston-based acquirer and developer of conventional oil and gas assets.

Taminco closes

In other news, Taminco Global Chemical Corp. completed its deal, a news release said, which includes a $386.9 million U.S. term loan B due Feb. 15, 2019 and a €185.9 million term loan B due Feb. 15, 2019.

Pricing on the U.S term loan, of which $43 million is incremental and $343.9 million is for a repricing of the existing loan, is Libor plus 250 bps with a 0.75% Libor floor, and it was issued at par. There is 101 soft call protection for six months.

The euro term loan is priced at Euribor plus 275 bps with a 0.75% floor and was sold at par. This tranche, split between €68 million of incremental debt and €117.9 million repricing debt, also has 101 soft call protection for six months.

During syndication, pricing on the U.S. loan was decreased from Libor plus 275 bps and pricing on the euro loan was cut from Euribor plus 300 bps.

Citigroup Global Markets Inc. led the senior secured deal (BB-).

Taminco funding acquisition

Proceeds from Taminco's incremental loans and cash on hand are being used to fund the roughly $190 million acquisition of the formic acid business of Kemira Oyj.

The incremental debt has a ticking fee of half the spread from days 31 to 75 and the full spread from day 76 and thereafter.

Meanwhile, the repricing will take the U.S. term loan B down from Libor plus 325 bps with a 1% Libor floor and the euro term B down from Euribor plus 350 bps with a 1% floor.

The company also repriced its $200 million revolver due Feb. 15, 2017 to Libor plus 250 bps with a 0.75% Libor floor from Libor plus 325 bps with a 1% Libor floor.

The spread on the revolver was flexed from Libor plus 275 bps during syndication.

Taminco is an Allentown, Pa.-based producer of alkylamines and alkylamine derivatives.

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