CityCenter, Casella break; Forterra, PPC changes emerge; Garda, Cvent, Arris disclose talk

By Sara Rosenberg

New York, April 10 – CityCenter Holdings LLC’s term loan made its way into the secondary market on Monday, with levels quoted above its original issue discount, and Casella Waste Systems Inc. freed up for trading as well.

Switching to the primary market, Forterra Finance LLC tightened the issue price on its incremental first-lien term loan, and PPC Industries Inc. trimmed pricing on its first-lien term loan for a second time while removing a recently added leverage-based step-down.

In addition, Garda World Security Corp., Cvent Inc. and Arris Group Inc. released price talk with launch.

Furthermore, Everi Payments Inc., Ryman Hospitality Properties (RHP Hotel Properties LP), Industrial Container Services, Material Handling Systems Inc. (MHS), World Kitchen (WKI Holding Co. Inc.) and AMC Entertainment Holdings Inc. joined this week’s primary calendar.

CityCenter starts trading

CityCenter Holdings’ $1.6 billion term loan (BB-) broke for trading on Monday, with levels quoted at par bid, par 3/8 offered, according to a trader.

Pricing on the term loan is Libor plus 250 basis points with a 0.75% Libor floor, and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months.

During syndication, pricing on the term loan was reduced from Libor plus 275 bps and the 18-month MFN sunset was eliminated.

Bank of America Merrill Lynch is leading the deal that will be used to refinance an existing term loan, to fund a $350 million dividend and to pay related fees and expenses.

The company is also seeking an upsized $125 million revolver.

CityCenter, which is 50% owned by a wholly owned subsidiary of MGM Resorts International and 50% owned by Infinity World Development Corp., is an urban mixed-use development on the Las Vegas Strip.

Casella tops par

Casella Waste Systems’ $350 million term loan B hit the secondary market too, with levels quoted at par 1/8 bid, par ½ offered, a trader remarked.

Pricing on the term loan is Libor plus 275 bps with a step-down to Libor plus 250 bps when consolidated net leverage is 3.75 times and no Libor floor. The loan has 101 soft call protection for six months and was issued at par.

Bank of America Merrill Lynch and J.P. Morgan Securities LLC are leading the deal that will be used to reprice an existing term loan from Libor plus 300 bps with a step-down to Libor plus 275 bps when consolidated net leverage is 3.75 times and a 1% Libor floor.

Closing is expected on April 17.

Casella is a Rutland, Vt.-based solid waste, recycling and resource management services company.

OWIC announced

Also in trading, an Offers Wanted In Competition surfaced, with offers due at 10 a.m. ET on Wednesday, according to a trader.

Some of the names in the OWIC include Badger Sportswear, Entravision, Institutional Shareholder Services, Plaze Inc., Research Now Group Inc. and Vestcom International, the trader added.

Forterra tweaked

Moving to the primary market, Forterra changed the issue price on its $200 million incremental first-lien term loan due October 2023 to par from 99.5, according to a market source.

As before, pricing on the incremental loan, as well as on a repricing of the company’ existing $1,045,000,000 covenant-light first-lien term loan due October 2023, is Libor plus 300 bps with a 1% Libor floor, the repricing is offered at par, and all of the first-lien term loan debt is getting 101 soft call protection for six months.

Recommitments were due at 1 p.m. ET on Monday, the source said.

Credit Suisse Securities (USA) LLC is leading the deal (B1/B).

The incremental loan will be used to repay existing ABL facility borrowings, and the repricing will take the existing term loan down from Libor plus 350 bps with a 1% Libor floor.

Forterra is an Irving, Texas-based manufacturer of drainage and water transmission pipe and products.

PPC cuts spread again

PPC Industries reduced pricing on its $360 million seven-year covenant-light first-lien term loan (B2) to Libor plus 350 bps from revised talk of Libor plus 375 bps and initial talk of Libor plus 400 bps, and removed a leverage-based step-down to Libor plus 350 bps that was added to the deal earlier in syndication, according to a market source.

As before, the term loan has a 1% Libor floor, an original issue discount of 99.875 and 101 soft call protection for six months.

The discount on the first-lien term loan was revised from 99.5 at the time of the first spread flex.

The company’s $517 million in credit facilities also include a $40 million five-year revolver (B2) and a $117 million eight-year second-lien term loan (Caa2).

Allocations are expected this week, the source added.

Antares Capital is leading the deal that will be used to help fund the acquisition of Pexco LLC.

PPC, a portfolio company of Kohlberg & Co., is a provider of highly engineered consumable specialty plastics to the medical, food and industrial markets. Pexco is a custom plastic extruder serving the medical and specialty industrial end markets. The combined entity will be based in Alpharetta, Ga.

Garda reveals talk

Garda World Security held its bank meeting on Monday, and with the event, talk on its $980 million-equivalent U.S. and Canadian seven-year senior secured covenant-light term loan surfaced, a market source said.

The U.S. term loan tranche is talked at Libor plus 350 bps, and the Canadian term loan tranche is talked at CDOR plus 425 bps, with both talked with a 1% floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months, the source continued.

The company’s $1.22 billion in credit facilities (B1/B/BB+) also include a $240 million revolver.

Commitments are due at 1 p.m. ET on April 19, the source added.

Barclays, Citigroup Global Markets Inc., Macquarie Capital (USA) Inc., TD Securities (USA) LLC and Societe Generale are leading the deal that will be used with $630 million in senior unsecured notes to fund a refinancing and recapitalization.

Garda is a Montreal-based provider of cash logistics and security solutions.

Cvent seeks repricing

Cvent launched during the session a $420 million first-lien term loan B due November 2023 talked at Libor plus 400 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, a market source remarked.

Commitments are due at 3 p.m. ET on April 19, the source added.

Goldman Sachs Bank USA, Antares Capital, Jefferies Finance LLC and RBC Capital Markets are leading the deal that will be used to reprice an existing term loan B from Libor plus 500 bps with a 1% Libor floor.

Cvent is a Tysons Corner, Va.-based software-as-a-service solutions provider to the enterprise meetings and event management industry.

Arris launches

Arris Group hosted a lender call, launching a $544 million term loan at talk of Libor plus 250 bps with a 0% Libor floor and an original issue discount of 99.5, according to a market source.

Bank of America Merrill Lynch and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to refinance existing debt.

Arris is a Suwanee, Ga.-based telecommunications company.

Everi readies deal

In more primary happenings, Everi Payments will hold a bank meeting at 10 a.m. ET on Thursday to launch $855 million in credit facilities, split between a $35 million five-year revolver and an $820 million seven-year senior secured first-lien term loan, according to a market source.

The term loan has 101 soft call protection for six months, the source said.

Jefferies Finance LLC is leading the deal that will be used to refinance a roughly $462.3 million first-lien term loan due 2020 and $335 million in senior secured notes due 2021.

Everi Payments is a Las Vegas-based provider of video and mechanical reel gaming content and solutions, integrated gaming payment solutions, and compliance and efficiency software solutions.

Ryman joins calendar

Ryman Hospitality Properties scheduled a lender call for 10 a.m. ET on Tuesday to launch a $400 million seven-year covenant-light term loan B, a market source said.

In addition, the company also plans on getting a new $200 million term loan A and an extended $700 million revolver, the source continued.

Deutsche Bank Securities Inc. and Wells Fargo Securities LLC are the bookrunners on the deal, with other bookrunners to be announced.

The new debt will be used to refinance an existing term loan B and to repay some revolver borrowings.

Ryman is a Nashville, Tenn.-based real estate investment trust specializing in group-oriented, destination hotel assets in urban and resort markets.

Industrial Container plans deal

Industrial Container Services will hold a bank meeting at 10 a.m. ET in New York on Wednesday to launch $465 million in credit facilities, according to a market source.

The facilities consist of a $40 million revolver and a $425 million first-lien term loan/delayed-draw term loan, the source said.

Goldman Sachs Bank USA is leading the deal that will be used to help fund the buyout of the company by Centerbridge.

Industrial Container is a Maitland, Fla.-based provider of steel industrial container reconditioning services.

Material Handling on deck

Material Handling Systems set a lender meeting for 10 a.m. ET on Thursday to launch $265 million in credit facilities, a market source remarked.

The facilities consist of a $25 million revolver and a $240 million first-lien term loan, the source added.

RBC Capital Markets is leading the deal.

Material Handling Systems is a Louisville, Ky.-based provider of advanced parcel sortation systems, engineering, software controls, and equipment manufacturing for logistics and e-Commerce companies.

World Kitchen sets launch

World Kitchen emerged with plans to hold a bank meeting at 10 a.m. ET in New York on Wednesday to launch a new loan, according to a market source.

Citigroup Global Markets Inc. is leading the deal that will be used to help fund the buyout of the company by Cornell Capital LLC.

Closing on the buyout is expected this quarter.

World Kitchen is a Rosemont, Ill.-based manufacturer and marketer of housewares.

AMC coming soon

AMC Entertainment scheduled a lender call for 10:30 a.m. ET on Tuesday to launch a repricing of its existing term loan from Libor plus 275 bps with a 0% Libor floor, a market source said.

Citigroup Global Markets Inc. is leading the deal.

AMC is a Leawood, Kan.-based movie exhibitor.

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