Grifols breaks; Claire's, Sabre rise; Asurion shutting early; Schaeffler, ACCO tweak deals

By Sara Rosenberg

New York, Feb. 13 - Grifols credit facility emerged in the secondary market on Monday afternoon, with the U.S. term loan B quoted a bit higher than its original issue discount price.

Also in trading, Claire's Stores Inc.'s term loan was stronger as the company revealed plans to repay some of the debt with senior notes proceeds, and Sabre Holdings gained ground with amendment and extension news.

Moving to the primary, NEW Asurion moved up the commitment deadline on its term loan due to strong demand, Schaeffler AG upsized its term loan C-2, firmed up U.S. and euro tranche sizes and reducing pricing, and ACCO Brands Corp. reduced the spread on its term loan B.

Additionally, Telx Group came out with price talk on its add-on, NXP Semiconductors disclosed plans to bring an incremental term loan B to market and Catalent Pharma Solutions Inc. revealed timing and size on its proposed deal.

Grifols frees up

Grifols' credit facility broke for trading on Monday, with the $1.7 billion U.S. term loan B quoted at 99 7/8 bid, par 3/8 offered, according to a market source.

Pricing on the U.S. B loan, as well as on a €200 million tranche, is Libor/Euribor plus 350 basis points with a step-down to Libor/Euribor plus 325 bps at less than 3.25 times total net leverage. There is a 1% Libor floor and 101 soft call protection for one year, and the debt was sold at an original issue discount of 991/2.

During syndication, the Barcelona, Spain-based health care company's roughly $1.97 billion term loan B was downsized from $2.2 billion, and the euro carve-out and the pricing step-down were added.

The company's roughly $3.1 billion senior secured facility also includes a $200 million revolver that was downsized from $300 million, a $600 million term loan A and a €220 million term loan A.

Deutsche Bank Securities Inc., Nomura, BBVA Securities Inc., BNP Paribas Securities Corp., HSBC Securities (USA) Inc. and Morgan Stanley & Co. LLC are the lead banks on the deal that will be used to refinance the company's existing credit facility.

Claire's rallies

In more trading news, Claire's Stores' term loan headed higher after the company announced plans for a new notes offering that will be used to reduce credit facility borrowings, according to traders.

The term loan was quoted in the early part of the day by one trader at 95 bid, 97 offered, up from 93 bid, 94 offered, and by a second trader at 95¾ bid, 96½ offered, up from 93½ bid, 94¼ offered.

By late day, a third trader was quoting it at 95 bid, 95¾ offered, up from 93½ bid, 94 offered. He said levels got as high as 95½ bid, 96½ offered, but they came in a little as the day progressed.

Early in the morning, the company invited investors to participate in a 10:30 a.m. ET call that would be used to launch its $400 million senior secured first-lien notes offering.

The notes were talked at 8¾% to 9% and then priced in the afternoon at par to yield 9%.

Claire's is a Pembroke Pines, Fla.-based specialty retailer of accessories and jewelry.

Sabre strengthens

Also moving up was Sabre Holdings' term loan, with the momentum attributed to the company launching an amendment that would extend its revolver maturity and allow for future term loan extensions, according to traders.

One trader had the loan quoted at 91 bid, 92 offered, up from 89¾ bid, 90¼ offered, and a second trader was seeing it at 91½ bid 92½ offered, up from 89¾ bid, 90¾ offered.

Specifically, under the amendment, the company is looking to push out the maturity on at least $400 million of its $500 million revolver by 31/2-years to September 2016 at pricing of Libor plus 450 bps. Non-extended pricing is Libor plus 200 bps.

Bank of America Merrill Lynch is leading the amendment.

Sabre, a Southlake, Texas-based online travel company, is offering lenders a 15 bps consent fee.

Asurion accelerates deadline

Over in the primary, NEW Asurion revised the commitment deadline on its $1 billion 71/2-year senior unsecured term loan (B2/B-) to 5 p.m. ET on Tuesday from Thursday since the deal is already oversubscribed, according to a market source.

The loan is talked at Libor plus 950 bps with a 1.5% Libor floor and an original issue discount of 96, and is non-callable for two years, then at 102 in year three and 101 in year four.

Morgan Stanley Senior Funding Inc. is the lead bank on the deal that will be used to buy back equity.

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

Schaeffler reworks C-2

Schaeffler made a round of changes to its five-year term loan C-2 (B1), increasing the total size to €1.4 billion from €1 billion and setting the breakdown as a $1.275 billion U.S. tranche and a €450 million tranche, according to a market source.

Previously it was known that the deal would be split between euros and dollars, but the amounts were still to be determined.

Also, pricing on the U.S. tranche was reduced to Libor plus 475 bps with a 1.25% Libor floor and an original issue discount of 98, from initial talk of Libor plus 550 bps with a 1.5% floor and a discount of 97, the source remarked.

Furthermore, a pricing step-down to Libor plus 450 bps at less than 2.5 times net leverage was added.

The entire term loan C-2 continues to include 101 soft call protection for one year.

Schaeffler trims C-1

As a result of the term loan C-2 increase, Schaeffler reduced its five-year term loan C-1 to €600 million from €1 billion, while leaving the three-year term loan B unchanged at €3 billion, the source continued.

Recommitments towards the U.S. tranche on the C-2 loan were due by 5 p.m. ET on Monday.

J.P. Morgan Securities LLC is the left lead bank on the deal. Other participants in the credit facility, which the company said provides for a €1 billion revolver and a total of €7 billion in term loans, include BNP Paribas Securities Corp., Commerzbank, Deutsche Bank Securities Inc., HSBC Securities Inc., LBBW, Royal Bank of Scotland and UniCredit.

Proceeds are being used to refinance an existing €7.7 billion credit facility that was set to mature in June 2014 and for general corporate purposes.

Schaeffler is a Herzogenaurach, Germany-based supplier of components and systems for the automotive industry and a variety of industrial sectors.

ACCO cuts pricing

ACCO Brands reduced pricing on its $370 million term loan B to Libor plus 325 bps from Libor plus 375 bps, while leaving the 1% Libor floor, original issue discount of 99 and 101 soft call protection for one year intact, according to a market source.

Also, the commitment deadline on the B loan was accelerated to Tuesday from Thursday, the source said.

The company's $920 million senior secured credit facility (Ba2/BB+/BB+) still provides for a $250 million revolver and a $300 million term loan A, both talked at Libor plus 300 bps, and the commitment deadline on these tranches was left unchanged for Thursday.

Barclays Capital Inc., Bank of America Merrill Lynch and Bank of Montreal are the lead banks on the deal.

ACCO funding merger

Proceeds from ACCO's credit facility, along with $270 million of bonds that are backed by a senior unsecured bridge loan commitment, will be used to fund its merger with MeadWestvaco's office supplies business, repay its 10 5/8% senior secured notes and pay for ongoing working capital requirements.

The merger with the consumer & office products business is valued at about $860 million, and at completion, MeadWestvaco shareholders will own 50.5% of the combined company.

Closing is expected in the second quarter, subject to approval by ACCO shareholders. The company disclosed on Monday that Hart-Scott-Rodino and Canada Competition Act clearance have already been obtained.

ACCO Brands is a Lincolnshire, Ill.-based office supply manufacturer.

Telx launches, sets talk

Also in the primary, Telx Group revealed plans for a $75 million incremental term loan (B1/B) in the morning and then launched the deal with a conference call at 2:30 p.m. ET at talk of Libor plus 650 bps with a 1.25% Libor floor and an original issue discount of 991/2, according to a market source.

The spread and floor are the same as on the existing term loan. The existing debt, however, was sold at a discount of 94 when done in 2011.

Morgan Stanley Senior Funding Inc. and TD Securities (USA) LLC are the lead banks on the incremental loan that will be used to repay revolver debt and for general corporate purposes.

Commitments are due at 5 p.m. ET on Thursday.

Telx is a New York-based provider of interconnection and colocation facilities.

NXP readies loan

NXP Semiconductors set a conference call for 10 a.m. ET on Tuesday to launch a proposed $475 million seven-year incremental term loan B that is non-callable for one year, then at 101 in year two, according to a market source.

Price talk on the loan is expected to emerge on the call, the source added.

Morgan Stanley & Co. LLC and Bank of America Merrill Lynch are the lead arrangers on the deal that will be used to repay the company's 8 5/8% senior unsecured notes due in October 2015 and 9½% senior notes due in October 2015.

The total amount of notes being repaid is about $775 million, and other funds for the transaction will come from a $300 million revolver draw.

The borrowers of the new term loan will be NXP BV and NXP Funding LLC.

NXP, an Eindhoven, Netherlands-based provider of mixed-signal products and semiconductor components, is seeking commitments towards the new term loan by noon ET on Thursday.

Catalent details emerge

Catalent Pharma Solutions disclosed that it will be launching a $400 million incremental term loan B with a conference call on Tuesday morning via lead bank Morgan Stanley Senior Funding Inc., according to a market source.

Proceeds from the loan and cash on hand will fund the acquisition of Aptuit LLC's clinical trial supplies business for $410 million. This transaction was announced back in August, at which time the company said it would be getting new term debt, but timing and size had not been available until now.

Along with the new loan, the company will be seeking an amend and extend deal, under which it will ask to push out the maturity on a portion of its existing term loan B due in 2014. Further details on the amendment will likely come out at launch, the source remarked.

Catalent is a Somerset, N.J.-based provider of advanced technologies and development, manufacturing and packaging services for pharmaceutical, biotechnology and consumer health care companies.

Valeant closes

In other news, Valeant Pharmaceuticals International Inc. completed its $600 million seven-year term loan B (Ba1/BBB-) on Monday, according to a news release.

The loan is priced at Libor plus 275 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 one year.

During syndication, the tranche was upsized from $500 million, the spread was lowered from Libor plus 300 bps and the discount tightened from 99.

J.P. Morgan Securities LLC, Goldman Sachs & Co. and Morgan Stanley & Co. LLC led the deal that is being used to repay borrowings under the company's $275 million revolver and for general corporate purposes, including acquisitions.

Valeant is a Mississauga, Ont.-based specialty pharmaceutical company.

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