Sheridan, Sedgwick, Firth Rixson, Party City break; primary sees slew of deals reworked

By Sara Rosenberg

New York, Feb. 12 - Sheridan Holdings Inc., Sedgwick Claims Management Services Inc., Firth Rixson Ltd. and Party City Holdings Inc. all hit the secondary market on Tuesday.

Moving to the primary, ServiceMaster Co. downsized its term loan, added a Libor floor, revised original issue discount guidance and shortened the maturity, and Sabre Inc. upsized its term loan C, downsized its term loan B and lifted pricing on the B tranche.

Also, Asurion LLC increased the size of its first-lien term loan, Cinedigm Digital Cinema Corp. lowered pricing on its loan, NuSil Technology and Mirion Technologies upsized their add-ons and revised the offer prices, and Fairmount Minerals Ltd. pulled its repricing request from market.

In addition, Polyconcept, Nielsen Finance LLC, Deltek Inc., Zayo Group LLC and Waste Industries USA Inc. released pricing guidance as their deals were presented to investors during the session.

Furthermore, Sutherland Global Services Inc., Web.com Group Inc. and RCN Cable started floating talk on their loans ahead of launch, and Phillips Plastics Corp., World Kitchen LLC, Payless ShoeSource and Realogy Group LLC surfaced with new deal plans.

Sheridan tops par

Sheridan Holdings' $672 million first-lien covenant-light term loan (B1/B+) due June 2018 freed up for trading, with levels quoted at par ¼ bid, par ¾ offered, according to a trader.

Pricing on the loan, which includes a $75 million add-on, is Libor plus 350 basis points with a 1% Libor floor. The add-on was sold at par 1/2, while the remainder was issued at par. There is 101 repricing protection for six months.

Proceeds are being used to reprice a $597 million term loan from Libor plus 475 bps with a 1.25% Libor floor and add $75 million to the balance sheet.

Existing lenders are getting paid out at 101 with the repricing.

Credit Suisse Securities (USA) LLC and Barclays are the lead banks on the deal.

Sheridan Holdings is a Sunrise, Fla.-based provider of outsourced health care services.

Sedgwick hits secondary

Another deal to break was Sedgwick Claims Management Services' roughly $640 million term loan B, with levels quoted at par 1/8 bid, according to a trader.

Pricing on the loan is Libor plus 300 bps with a 1% Libor floor, and it was issued at par. There is 101 soft call protection for six months.

Recently, the Libor floor on the loan firmed at the tight end of talk of 1% to 1.25%.

Proceeds are being used to reprice an existing term loan B from Libor plus 350 bps with a 1.5% Libor floor.

Bank of America Merrill Lynch and Barclays are leading the deal.

Sedgwick is a Memphis, Tenn.-based provider of claims and productivity management services to corporate and institutional clients.

Firth frees up

Firth Rixson made its way into the secondary market as well, with the $420 million U.S. first-lien term loan quoted at par ¼ bid, 101 offered, according to a market source.

Pricing on the U.S. term loan is Libor plus 300 bps with a 1.25% Libor floor, and it was issued at par. There is 101 soft call protection for six months.

The company is also getting a £180 million first-lien term loan that's priced at Libor plus 375 bps, after firming at the tight end of the Libor plus 375 bps to 400 bps talk. This tranche has a 1.25% Libor floor and 101 soft call protection for six months, and was also sold at par.

Proceeds will be used to reprice the existing U.S. term loan from Libor plus 425 bps with a 1.25% floor and the existing Sterling loan from Libor plus 475 bps with a 1.25% Libor floor. Existing lenders are getting paid out at 101 with the repricing.

Deutsche Bank Securities Inc., Barclays, HSBC, Lloyds Securities LLC and GE Capital Markets are leading the deal for the Sheffield, England-based provider of seamless rolled rings, closed die forgings, open die forgings, extruded forgings and specialty metals primarily to the aerospace market.

Party City breaks

Party City's roughly $1.1 billion term loan began trading too, with levels quoted at par bid, par ½ offered, a market source said.

Pricing on the loan is Libor plus 325 bps with a 1% Libor floor, and it was issued at par.

During syndication, pricing on the loan firmed at the wide end of the Libor plus 300 bps to 325 bps talk.

Proceeds will be used to reprice an existing term loan from Libor plus 450 bps with a 1.25% Libor floor.

Deutsche Bank Securities Inc. and Bank of America Merrill Lynch are the lead banks on the deal.

Party City is a Rockaway, N.J.-based designer, manufacturer and distributor of party goods, including paper and plastic tableware, metallic balloons, accessories, novelties, gifts and stationery.

HD Supply rises

HD Supply Inc.'s roughly $1 billion term loan moved up to 99 7/8 bid, par 3/8 offered on Tuesday, after breaking late Monday at 99¾ bid, par offered, according to a trader.

Pricing on the loan is Libor plus 325 bps with a 1.25% Libor floor, and it was issued at par. There is 101 soft call protection for six months.

During syndication, the Libor floor on the loan firmed at the wide end of the 1% to 1.25% talk.

Proceeds are being used to reprice an existing term loan from Libor plus 600 bps with a 1.25% Libor floor.

Bank of America Merrill Lynch is the lead bank on the deal.

HD Supply is an Atlanta-based wholesale distributor for the infrastructure and energy, maintenance, repair and improvement and specialty construction sectors.

BWIC announced

A $51.7 million Bid-Wanted-In-Competition surfaced on Tuesday morning, and market participants are being asked to place their bids by 11 a.m. ET on Thursday, according to a trader.

Some of the larger pieces of debt offered in the portfolio are Avaya Inc.'s term loan B-1, Mediacom Illinois LLC's term loan C, SkillSoft plc's new term loan, Sorencon Communications Inc.'s term loan C, Texas Competitive Electric Holdings Co. LLC's non-extended 2014 term loan, United Air Lines Inc.'s term loan B and Vanguard Health Systems Inc.'s term loan B.

The portfolio includes about 34 issuers, the trader added.

ServiceMaster reworks loan

Over in the primary, ServiceMaster cut its term loan to $1,223,000,000 from $2,253,000,000, added a 1% Libor floor, versus no floor previously, widened original issue discount talk to 99 to 99½ from 99¼ to 991/2, and changed the maturity to January 2017 from Feb. 28, 2017, according to a market source.

The loan is still priced at Libor plus 325 bps and has 101 soft call protection for one year.

Proceeds will be used to refinance a roughly $1.2 billion non-extended term loan due July 2014, but, because of the downsizing, the company will not be refinancing its roughly $1 billion extended term loan due January 2017, the source said.

Lead bank, J.P. Morgan Securities LLC, is asking for recommitments by Thursday.

ServiceMaster is a Memphis-based provider of maintenance services to residential and commercial customers.

Sabre restructures

Sabre downsized its six-year term loan B to a range of $1.75 billion to $1.775 billion from $1.95 billion and raised pricing to Libor plus 400 bps from Libor plus 375 bps, according to a market source. The 1.25% Libor floor, original issue discount of 99½ and 101 soft call protection for one year were unchanged.

Meanwhile, the five-year term loan C was increased to a range of $425 million to $450 million from $250 million, the source said. Talk was left at Libor plus Libor plus 300 bps with a 1% Libor floor, an original issue discount of 99¾ and 101 soft call protection for six months.

The company's $2.552 billion credit facility (B1/B) also includes a $352 million five-year revolver.

Recommitments were due at 5 p.m. ET on Tuesday, the source added.

Bank of America Merrill Lynch, Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc., Goldman Sachs & Co., Barclays and Natixis are leading the deal that will be used by the Southlake, Texas-based online travel company to refinance existing debt.

Asurion ups loan

Asurion lifted its first-lien term loan due May 24, 2019 to $3.9 billion from $2.6 billion and kept talk at Libor plus 325 bps with a 1.25% Libor floor, an original issue discount of 99½ to 99¾ and 101 soft call protection for one year, according to a market source.

Because of the upsizing, proceeds will be used to repay all of the company's existing first-and second-lien term loans, instead of just some, the source said..

Recommitments are due at 5 p.m. ET on Wednesday.

Bank of America Merrill Lynch, Barclays, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co. and Morgan Stanley Senior Funding Inc. are leading the deal.

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

Cinedigm trims pricing

Cinedigm Digital cut pricing on its roughly $130 million five-year term loan to Libor plus 275 bps from Libor plus 300 bps and tightened the original issue discount on the $40 million of new money being raised under the term loan to 99¾ from 991/2, according to a market source.

The loan still has a 1% Libor floor.

Proceeds will be used to reprice about $90 million of existing term loan debt from Libor plus 350 bps with a 1.75% Libor floor while extending the maturity from May 2016, and the new money will be used to repay some mezzanine debt.

Lenders are being offered a 25 bps amendment fee, revised from 50 bps, the source added.

Recommitments are due at 3 p.m. ET on Wednesday.

Societe Generale is leading the deal for the Morristown, N.J.-based company that converts movie theaters into digital and networked entertainment centers.

NuSil tweaks deal

NuSil Technology upsized its first-lien covenant-light add-on term loan due April 2017 to $125 million from $100 million and tightened the offer price to par from 991/2, according to a market source.

As before, the add-on is priced at Libor plus 400 bps (with step-downs) with a 1.25% Libor floor, and has 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC, Jefferies & Co. and Barclays are leading the deal that will be used to fund a dividend.

NuSil is a Carpinteria, Calif.-based manufacturer of silicone-based materials for the health care, aerospace, electronics and photonics industries.

Mirion reveals revisions

Mirion Technologies upsized its first-lien add-on term loan due March 2018 to $80 million from $70 million and moved the original issue discount to 99½ from 99, according to a market source.

Pricing on the add-on is still Libor plus 500 bps with a 1.25% Libor floor, which is in line with existing term loan pricing, and the add-on has the same 101 soft call protection through March 2013 as the existing loan.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to fund a share repurchase.

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

Fairmount pulled

Fairmount Minerals withdrew the repricing of its roughly $815 million senior secured term loan due March 15, 2017 from market due to market conditions, according to a source.

The repricing was talked at Libor plus 325 bps to 350 bps with a 1.25% Libor floor, a par offer price and 101 soft call protection for six months.

Barclays and KeyBanc Capital Markets were leading the deal.

Fairmount is a Chardon, Ohio-based producer of industrial sand.

Polyconcept pricing

Also in the primary, Polyconcept held a bank meeting on Tuesday morning to launch its credit facility, and shortly before the event started, talk on the $440 million seven-year senior secured term loan B (B2) came out at Libor plus 525 bps to 550 bps with a 1.25% Libor floor, an original issue discount of 98½ to 99 and 101 soft call protection for one year, according to a market source.

The company's $540 million credit facility also provides for a $100 million five-year super-priority revolver (Ba2).

J.P. Morgan Securities LLC is leading the deal that will be used to refinance an existing credit facility.

Polyconcept is a Netherlands-based promotional products supplier.

Nielsen launches

Nielsen launched with a call the U.S. portion of its class E term loan due May 2016 with talk of Libor plus 250 bps to 275 bps and the euro portion of the term loan with talk of Euribor plus 275 bps to 300 bps, according to market sources.

The loan will total $2,914,000,000, with the split between U.S. and euro debt still to be determined.

The entire term loan has no Libor floor, a par offer price and 101 soft call protection for six months, sources said.

Citigroup Global Markets Inc. is leading the deal that will be used to reprice existing term loan A, term loan B and term loan C debt.

Commitments are due on Feb. 20, sources added.

Nielsen is a New York and Netherlands-based provider of information and insights into what consumers watch and buy.

Deltek holds call

Deltek launched with a call the repricing of its $30 million revolver and a $450 million first-lien term loan, which is talked at Libor plus 375 bps, compared to current pricing of Libor plus 475 bps, according to a market source.

The term loan has a 1.25% Libor floor and 101 soft call protection through October 2013, and existing lenders will get paid out at 101 with the repricing.

Jefferies Finance LLC is leading the deal.

Commitments for the $480 million credit facility are due on Friday, the source added.

Deltek is a Herndon, Va.-based provider of enterprise software and information for professional services firms and government contractors.

Zayo repricing

Zayo Group revealed price talk on the repricing of its $1,837,000,000 credit facility with its Tuesday call, and launched an amendment that will remove the maximum senior secured and total leverage ratio covenants, but leave the fixed charge coverage ratio in place, according to a market source.

The $225 million revolver due July 2, 2017 is talked at Libor plus 300 bps with no Libor floor, and the $1,612,000,000 term loan B due July 2, 2019 is talked at Libor plus 325 bps with a 1% Libor floor, a par offer price and 101 soft call protection for one year, the source said.

By comparison, current term loan B pricing is Libor plus 400 bps with a 1.25% Libor floor.

Consents are due on Feb. 19 and closing is expected on Feb. 22.

Morgan Stanley Senior Funding Inc., Barclays and RBC Capital Markets are leading the deal.

Zayo is a Louisville, Colo.-based provider of fiber-based bandwidth infrastructure and network-neutral colocation and interconnection services.

Waste Industries hits market

Waste Industries launched a $515 million term loan due March 2017 with talk of Libor plus 300 bps with a 1% Libor floor, a par offer price and 101 soft call protection for six months, according to sources.

Proceeds will be used to reprice a $415 million term loan from Libor plus 350 bps with a 1.25% Libor floor, and $100 million add-on will be used to pay down revolver debt, sources said.

Bank of America Merrill Lynch is the lead bank on the deal.

Commitments are due on Feb. 20.

Waste Industries is a Raleigh, N.C.-based solid waste services company.

Sutherland talk emerges

Sutherland Global Services will be holding a bank meeting in New York at 10:30 a.m. ET on Wednesday, and in preparation for the event, price talk began making its way around the market, according to a source.

The company's $225 million six-year term loan is talked at Libor plus 500 bps with a 1.25% Libor floor and an original issue discount of 99, the source said, and, as previously disclosed, the tranche includes 101 repricing protection for one year.

In addition to the term loan, the company is getting a $30 million five-year revolver.

Credit Suisse Securities (USA) LLC and HSBC Securities (USA) Inc. are leading the $255 million credit facility that will refinance existing debt and help fund the purchase of Apollo Health Street Ltd., a provider of healthcare business services and Health Information Technology (HIT) based solutions.

Commitments are due on Feb. 27.

Sutherland, a Rochester, N.Y.-based provider of business process and technology management services, expects to close on the acquisition this month, subject to regulatory approvals.

Web.com reveals guidance

Web.com is talking its $660 million term loan B at Libor plus 325 bps to 350 bps with a 1% Libor floor, an offer price that is still to be determined and 101 soft call protection for six months, ahead of the 10:30 a.m. ET call on Wednesday that will launch the deal to investors, according to sources.

Proceeds will refinance a roughly $628 million first-lien term loan that is priced at Libor plus 425 bps with a 1.25% Libor floor and repay in full a roughly $32 million second-lien term loan.

J.P. Morgan Securities LLC, Deutsche Bank Securities Inc., SunTrust Robinson Humphrey Inc., Goldman Sachs Lending Partners, Citigroup Global Markets Inc. and Wells Fargo Securities LLC are leading the deal.

With the new term loan B, the company plans to upsize its revolver by $10 million and reduce pricing on the tranche from a current rate of Libor plus 375 bps with no Libor floor, sources added.

Web.com is a Jacksonville, Fla.-based provider of internet services and online marketing services for small businesses.

RCN Cable on deck

RCN Cable set a conference call for Wednesday to launch a $775 million term loan B that is being talked at Libor plus 400 bps with a 1.25% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months, according to a market source.

SunTrust Robinson Humphrey Inc., GE Capital Markets and TD Securities (USA) LLC are leading the deal.

Proceeds will be used to refinance a roughly $555 million term loan B that is priced at Libor plus 400 bps with a 1.25% Libor floor and pay a dividend. Because pricing on the term loan B is not changing, lenders are getting paid out at par, instead of at the current 101 soft call premium, the source explained.

RCN Cable is a broadband services provider.

Phillips Plastics readies

Phillips Plastics scheduled a lender call for 10 a.m. ET on Thursday to launch a $316.9 million senior credit facility that consists of a $45 million 31/2-year revolver and a $271.9 million four-year term loan, according to a market source.

The term loan will include a euro carve-out, the size of which is still to be determined.

GE Capital Markets and BNP Paribas Securities Corp. are leading the deal that will be used to refinance existing senior and mezzanine debt.

Senior and total leverage is 4 times, the source continued.

Phillips Plastics is a Hudson, Wis.-based outsource provider of design and manufacturing services to the commercial and medical device and drug delivery markets.

World Kitchen coming soon

World Kitchen will host a bank meeting on Wednesday to launch a $270 million credit facility that consists of a $90 million revolver and a $180 million term loan, according to a market source.

BMO Capital Markets, SunTrust Robinson Humphrey Inc. and J.P. Morgan Securities LLC are leading the deal.

Proceeds will be used to refinance existing debt.

World Kitchen is a Rosemont, Ill.-based manufacturer and marketer of bakeware, dinnerware, kitchen and household tools, rangetop cookware and cutlery products.

Payless joins calendar

Payless ShoeSource set a call for 11:30 a.m. ET on Thursday to launch a $175 million add-on term loan that will be used to fund a return of capital to shareholders, according to a market source.

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

Pro forma for the transaction, Payless, a Topeka, Kan.-based specialty family footwear retailer, will have net leverage of 2.5 times, the source added.

Realogy plans call

Realogy scheduled a call for 2 p.m. ET on Wednesday to launch an up to $2.42 billion credit facility that consists of an up to $600 million revolver due 2018 and a $1.82 billion term loan B due 2020, according to a market source.

Proceeds will be used to refinance an existing $363 million revolver due April 2016 and a $1.82 billion term loan due October 2016.

J.P. Morgan Securities LLC is leading the deal that is expected to close this month.

Realogy is a Parsippany, N.J.-based provider of real estate brokerage, relocation and settlement services.

Calpine allocates

In other news, Calpine Corp. allocated its $2,465,000,000 of term loans, and the first trade in the repriced debt is expected to occur on Wednesday, according to a market source.

The debt consists of a $1,277,000,000 term loan B-1 due April 1, 2018, a $355 million term loan B-2 due April 1, 2018 and an $833 million term loan B-3 due Oct. 9, 2019, all priced at Libor plus 300 bps with a 1% Libor floor and sold at par.

The repriced debt has 101 soft call protection for one year.

Through the repricing, which is planned to become effective on Friday, the company is taking pricing down on its term loans B-1, B-2 and B-3 from Libor plus 325 bps with a 1.25% Libor floor.

Morgan Stanley Senior Funding Inc. is leading the deal for the Houston-based power company.

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