Nalco, Advance Pierre, HGI break; Knology tweaks B loan; Ascend Performance sets talk

By Sara Rosenberg

New York, Sept. 29 - Nalco Co.'s new bank debt freed up for trading during Wednesday's market hours, with the term loan B-1 quoted around par, and Advance Pierre Foods and HGI Holdings Inc. broke as well.

Over in the primary market, Knology Inc. came out with changes to its heavily oversubscribed term loan B, including lowering the spread, the Libor floor and the original issue discount, and Ascend Performance Materials LLC released talk on its term loan B after doing price discovery with lenders.

Also, Metaldyne LLC and Tekni-Plex Inc. are getting ready to come to market with new term loans, and Sun Healthcare Group Inc. launched its credit facility at the previously circulated price talk.

And, chatter is that RBS WorldPay's U.S. term loan is coming along well, Fortress Investment Group LLC's credit facility filled out at initial terms and allocations are expected to go out shortly, and Internet Brands Inc.'s new deal has been clubbed up.

Nalco starts trading

Nalco's new bank debt hit the secondary market on Wednesday, with the $650 million term loan B-1 quoted by one trader at 99 7/8 bid, par ¼ offered and by a second trader at 99¾ bid, par ¼ offered.

Pricing on the term loan B-1 is Libor plus 300 basis points with a step-down to Libor plus 275 bps when corporate ratings are Ba1/BB+. There is a 1.5% Libor floor and 101 soft call protection for one year, and it was sold at an original issue discount of 991/2.

During syndication, pricing on the term loan B-1 was reduced from Libor plus 325 bps and the step-down was added.

Nalco's $750 million of new term loans (BB+) also includes a $100 million term loan C-1 priced at Libor plus 175 bps that was sold at a discount of 951/2.

Deutsche Bank is the lead bank on the refinancing deal for the Naperville, Ill.-based manufacturer and seller of specialized service chemical programs.

Advance Pierre frees up

Also breaking was Advance Pierre Foods' credit facility, with the $835 million first-lien term loan (B1/B+) quoted at 98½ bid, 99¼ offered and the $230 million second-lien term loan quoted at 97 bid, 98½ offered, according to traders.

Pricing on the first-lien term loan is Libor plus 525 bps with a 1.75% Libor floor, and it was sold at an original issue discount of 98. There is 101 soft call protection for one year.

Meanwhile, pricing on the second-lien loan is Libor plus 950 bps with a 1.75% Libor floor, and it was sold at a discount of 961/2. The loan is non-callable for 18 months, 106 for the next six months, 103 in year three and 101 in year four

During syndication, pricing on the second-lien loan was flexed up from Libor plus 875 bps, the discount widened from 98, and the call protection was changed from 103 in year one, 102 in year two and 101 in year three.

Advance Pierre revolver

Advance Pierre Foods' $1.14 billion credit facility also includes a $75 million ABL revolving credit facility.

Credit Suisse, Barclays Capital, Morgan Stanley and BMO Capital Markets are the lead banks on the deal that is being obtained in connection with the creation of the company through the merger of Pierre Foods Inc., Advance Food Co. Inc. and Advance Brands LLC.

Following completion of the merger, Oaktree Capital Management, the current majority shareholder of Pierre Foods, will maintain a majority share of the combined company. The current shareholders of Advance Food, the Allen and McLaughlin families, will own a minority share of the combined company.

Advance Pierre Foods will be a Cincinnati-based supplier of value-added protein and handheld convenience food products to the foodservice, school, retail, club, vending and convenience store channels.

HGI Holdings breaks

Another deal to free up for trading was HGI Holdings, with its $315 million six-year term loan quoted at 99¾ bid, par ¼ offered, according to a market source.

Pricing on the term loan firmed in line with initial talk at Libor plus 500 bps with a 1.75% Libor floor and an original issue discount of 98. There is 101 soft call protection for one year

The company's $365 million credit facility (B1/B+) also includes a $50 million five-year revolver priced at Libor plus 475 bps, with a 1.75% Libor floor. This tranche was sold at 98 as well.

Goldman Sachs, Jefferies and Morgan Stanley are the lead banks on the deal.

HGI being acquired

Proceeds from HGI Holdings' credit facility will be used to help fund its buyout by Clayton, Dubilier & Rice LLC and GS Capital Partners from the Jordan Co. and members of the Harrington family.

Other financing for the transaction will come from $150 million of mezzanine debt.

Closing on the transaction is expected to take place in the beginning of the fourth quarter.

HGI is a Cleveland-based mail-order, direct-to-home provider of specialty medical products for chronic disease patients.

Clopay Ames moves

Clopay Ames True Temper Holding Corp. (Griffon Corp.) saw its $375 million six-year term loan (B1/BB+) weaken a bit in the morning from its Tuesday breaking levels, but then it rebounded by the afternoon, according to a trader,

The term loan was quoted at 99¾ bid, par ¾ offered early on in the day, the trader said, adding that it then moved back to par ½ bid, par ¾ offered to end the day unchanged.

Pricing on the term loan is Libor plus 600 bps with a 1.75% Libor floor, and it was sold at an original issue discount of 98. There is 101 soft call protection for one year.

When the deal first launched this summer, the term loan was sized at $500 million and the spread was talked at Libor plus 450 bps to 500 bps. Pricing was later flexed up and, after that, the tranche was basically relaunched to lenders with the smaller size.

Goldman Sachs and Deutsche Bank are the lead banks on the term loan.

Clopay Ames funding

Clopay Ames True Temper's credit facility will be used to help fund the acquisition of Ames True Temper Inc. by Griffon Corp., the parent company of Clopay Ames True Temper.

Ames True Temper is being bought from Castle Harlan Inc. for a total consideration of $542 million.

As part of the financing, the company is also getting a $125 million four-year asset-based revolver (Ba1/BB+) priced at Libor plus 225 bps.

JPMorgan and Deutsche Bank are the lead banks on the revolver that was initially sized at $150 million, was then downsized to $100 million and then ended up being upsized to its current amount.

Also, during syndication, pricing on the revolver was reverse flexed from Libor plus 275 bps.

Griffon is a New York-based manufacturing company. Ames True Temper is a Camp Hill, Pa.-based manufacturer and marketer of non-powered lawn and garden tools, wheelbarrows and other outdoor work products.

BWIC won by Jefferies

Jefferies won a $77 million Bid Wanted In Competition on Wednesday as it topped the 93 cover bid, according to a market source.

The portfolio included flow names like Univision Communications Inc., Claire's Stores Inc. and First Data Corp., as well as some off the run stuff, the source added.

Knology revises pricing

Moving to the primary market, Knology revised spread, Libor floor and original issue discount on its $570 million term loan B as a result of strong demand, according to a market source.

The term loan B is now priced at Libor plus 400 bps with a 1.5% Libor floor and an original issue discount of 99, compared to initial talk of Libor plus 450 bps with a 1.75% Libor floor and an original issue discount of 981/2, the source said.

Recommitments towards the B loan were due from lenders at 5 p.m. ET on Wednesday. The other day, the deadline was accelerated to Tuesday because syndication was going so well. But, now, as a result of the changes, the deadline reverted back to its original timeframe.

Allocations are expected to go out on Thursday, the source added.

Knology pro rata unchanged

Knology's $770 million credit facility (B1/B+) also includes a $50 million revolver and $150 million term loan A that are both priced at Libor plus 400 bps - in line with original talk.

Credit Suisse and SunTrust are the lead banks on the deal, with Credit Suisse the left lead.

Proceeds will be used, along with cash on hand, to fund the acquisition of Sunflower Broadband for $165 million in cash and to refinance existing debt.

Knology is a West Point, Ga.-based provider of interactive communications and entertainment services. Sunflower is a provider of video, voice and data services to residential and business customers.

Ascend talk emerges

Ascend Performance Materials came out with talk on its $800 million six-year term B (B) more than a week after the deal was launched as the banks completed the price discovery process, according to a market source.

The term loan B is being talked at Libor plus 800 bps with a 2% Libor floor and an original issue discount of 97, the source said. The tranche is non-callable for one year, then at 102 in year two and 101 in year three.

The company's $1.075 billion credit facility also includes a $275 million ABL revolver.

Morgan Stanley and Bank of America are the lead banks on the B loan, and Wells Fargo is leading the revolver.

Proceeds will be used by the Houston-based producer of nylon chemicals for a dividend recapitalization.

Metaldyne readies deal

Metaldyne is set to hold a bank meeting on Thursday to launch a proposed $225 million term loan that will be used to refinance existing debt and fund a dividend, according to a market source.

Price talk on the loan is still to be determined, the source said.

Deutsche Bank and Barclays are the lead banks on the deal.

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

Tekni-Plex launching loan

Tekni-Plex has scheduled a bank meeting for Thursday to launch a proposed $285 million six-year term loan to investors, according to a market source.

Price talk on the term loan is not yet available, the source said.

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

Tekni-Plex is a King of Prussia, Pa.-based manufacturer of packaging, products, and materials for the health care, consumer, and food packaging industries.

Sun Healthcare holds meeting

As expected, Sun Healthcare held a bank meeting on Wednesday to launch its proposed $285 million credit facility (Ba2/B+) that is being led by Credit Suisse, JPMorgan and RBC, according to a market source.

The facility consists of a $60 million revolver and a $225 million term loan, of which $75 million will cash collateralize letters of credit.

Price talk on the term loan is Libor plus 475 bps with a 1.75% Libor floor and an original issue discount of 981/2.

Proceeds from the new debt will be used to help repay the company's 9 1/8% senior subordinated notes and outstanding term loans, and for general corporate purposes.

Sun Healthcare separating

Sun Healthcare's credit facility is in connection with its separation into two publicly traded companies. The separation will be done through a distribution to Sun stockholders of the common stock of the new Sun Healthcare Group and is expected to be completed in the fourth quarter, subject to regulatory, stockholder, final board and other approvals.

The first company will be new Sun, a provider of nursing, rehabilitative and related specialty health care services, and manager of rehabilitation therapy, medical staffing services and hospice businesses.

The second company will be Sabra Health Care REIT Inc., an owner of substantially all of Sun's currently owned real property portfolio and intends to operate as a real estate investment trust.

Sabra's capital structure is expected to include a new $100 million secured revolver and new notes in the amount of $225 million.

RBS WorldPay nets interest

RBS WorldPay's £235 million seven-year dollar equivalent term loan B-2 "seems to be getting pretty healthy demand" since it was launched to U.S. investors on Sept. 17, according to a market source.

Price talk on the term loan is Libor plus 500 bps with a 1.75% Libor floor and an original issue discount of 98 to 99.

The company's £970 million secured credit facility (Ba2/BB) also includes a £75 million six-year revolver, a £75 million six-year capital expenditures facility, a £160 million six-year term loan A, a £325 million seven-year term loan B-1 and a £100 million seven-year euro equivalent term loan B-3. These tranches are being marketed in Europe.

RBS WorldPay lead banks

Goldman Sachs, Barclays, Morgan Stanley, RBS and UBS are the lead banks on RBS WorldPay's credit facility, with Goldman the left lead on the U.S. piece.

Proceeds will be used to help fund the acquisition of an 80.01% interest in the company by Advent International and Bain Capital from RBS Group for an enterprise value of up to £2.025 billion.

Closing on the transaction is expected by the end of the year, subject to regulatory approvals.

RBS WorldPay is a provider of global payment processing services.

Fortress allocating soon

Fortress Investment Group's $440 million credit facility is expected to allocate and free up for trading on Thursday as the deal filled out at initial terms, according to a market source.

The facility consists of a $100 million revolver and a $340 million term loan.

Pricing on the term loan is Libor plus 400 bps with a 1.75% floor and no discount. The loan is non-callable for two years, then at 101 in years three and four.

Bank of America is the lead bank on the deal that will be used to refinance existing debt.

Fortress is a New York-based investment management firm.

Internet Brands club style

Internet Brands' new credit facility has been syndicated through a club-style execution and there are no plans to go out to the broad market, according to a market source.

Bank of America, BMO Capital Markets, GE Capital and RBC Capital Markets are the lead banks on the deal.

Proceeds will be used to help fund the buyout of the company by Hellman & Friedman LLC for $13.35 in cash per share. The transaction is valued at about $640 million.

The transaction is expected to close in the fourth quarter, subject to stockholder approval and other customary conditions.

Internet Brands is an El Segundo, Calif.-based internet media company.

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