CNO Financial, BJ's, Atlantic Broadband break; primary active with multiple launches

By Sara Rosenberg

New York, Sept. 20 - CNO Financial Group Inc. upsized its credit facility and reduced pricing, and then the deal made its way into the secondary market on Thursday afternoon with both term loans quoted above their original issue discount prices.

BJ's Wholesale Club Inc.'s credit facility also broke for trading, with first- and second-lien levels seen atop par, and Atlantic Broadband Group LLC's term loan B freed up as well.

Meanwhile, in the primary market, Harvard Drug Group LLC, Deltek Inc., RadNet Inc., TriZetto Group Inc., Intelsat Jackson Holdings SA, Jacobs Entertainment Inc. and Pilot Travel Centers LLC came out with talk with launch, and CAMP International Holding Co. emerged with repricing plans.

CNO starts trading

CNO Financial's credit facility freed up for trading on Thursday, with the $250 million four-year term loan B-1 quoted at par 1/8 bid, par 5/8 offered, and the $425 million six-year term loan B-2 quoted at 99¾ bid, par ¼ offered on the break, according to a trader.

By late afternoon, the term loan B-1 had traded up to par 3/8 bid, par 7/8 offered and the term loan B-2 had traded up to par ¼ bid, par ¾ offered, the trader said.

Pricing on the term loan B-1 is Libor plus 325 basis points with a 1% Libor floor, and it was sold at an original issue discount of 991/2, a source said. By comparison, initial talk on the loan had been Libor plus 350 bps with a 1% floor and a discount of 99 to 991/2.

Amortization on the term B-1 is 20% in years one and two and 30% in years three and four.

As for the term loan B-2, pricing firmed at Libor plus 375 bps after flexing down from talk of Libor plus 400 bps to 425 bps. The tranche, which was upsized from $400 million and amortizes at a rate of 1% per annum, saw its 1.25% Libor floor and original issue discount of 99 remain intact.

Both term loans have 101 soft call protection for one year.

CNO getting revolver

CNO Financial's $725 million credit facility (Ba3/B+), for which recommitments were due in the morning, also includes a $50 million three-year unfunded revolver.

Goldman Sachs & Co. and J.P. Morgan Securities LLC are the leading the deal that will help repay all $224 million outstanding under the company's existing senior secured credit facility, to repurchase up to $275 million of 9% senior secured notes due 2018 for about $323 million and to repurchase about $200 million of 7% convertible senior debentures due 2016 from Paulson & Co. for around $334 million.

In addition, the company is getting $275 million of new senior secured notes, upsized from $250 million, for the refinancing.

The extra proceeds being raised through the term B-2 and bonds upsizings will add cash to the balance sheet, a source remarked.

CNO Financial, a Carmel, Ind.-based insurance company, expects to close on the refinancing late this month.

BJ's frees up

BJ's Wholesale Club's credit facility began trading too, with the $1.3 billion seven-year first-lien term loan (B3/B) quoted at par ¼ bid, 101¼ offered, and the $325 million 71/2-year second-lien term loan (Caa1/CCC+) quoted at par ½ bid, according to sources.

Pricing on the first-lien term loan is Libor plus 450 bps with a 1.25% Libor floor, and it was sold at a discount of 99. There is 101 soft call protection for one year.

The second-lien term loan is priced at Libor plus 850 bps with a 1.25% floor, and was sold at 99 as well. The debt is non-callable for one year, then at 102 in year two and 101 in year three.

Earlier this week, the first-lien loan was upsized from $1.225 billion and pricing was cut from the Libor plus 525 bps area, and the second-lien loan was downsized from $400 million with pricing flexing down from Libor plus 925 bps.

Deutsche Bank Securities Inc. is leading the $1.625 billion deal that will be used by the Westborough, Mass.-based operator of warehouse clubs to fund a dividend recapitalization.

Atlantic Broadband breaks

Also hitting the secondary market was Atlantic Broadband's credit facility, with its $430 million seven-year term loan B quoted at par bid, par ½ offered on the open and then it moved up to par ½ bid, 101 offered, according to traders.

Pricing on the B loan is Libor plus 350 bps with a 1% Libor floor, and it was sold at an original issue discount of 991/4. There is 101 soft call protection for one year.

The company's $710 million credit facility (Ba3/BB+) also includes a $230 million five-year term loan A and a $50 million five-year revolver, both priced at Libor plus 300 bps with no Libor floor.

During syndication, the term loan B was downsized from $460 million, the Libor floor was reduced from 1.25% and the discount was tightened from 99. Also, the term loan A was upsized from $200 million.

Atlantic Broadband leads

Bank of America Merrill Lynch, TD Securities (USA) LLC and BMO Capital Markets Corp. are leading Atlantic Broadband's credit facility that will help fund its acquisition by Cogeco Cable Inc. and refinance existing debt.

The new credit facility is non-recourse to Cogeco.

Under the agreement, Cogeco is buying Atlantic Broadband in a transaction valued at $1.36 billion from ABRY Partners IV LP and Oak Hill Capital Partners LP. Cogeco will fund the remainder of the purchase price with about $150 million of cash on hand and a roughly $550 million draw under its existing revolver.

Pro forma leverage at Atlantic Broadband will be 4.3 times, at Cogeco will be 2.7 times and consolidated will be 3.1 times.

Closing is expected before the end of the year, subject to Hart-Scott-Rodino approval, federal, state and local regulatory approvals and other customary conditions.

Atlantic Broadband is a Quincy, Mass.-based cable system operator. Cogeco is a Montreal-based telecommunications corporation.

Sabre steady

In more trading happenings, Sabre Inc.'s non-extended term loan was basically flat on the day at 99¾ bid, par ¼ bid, following news that the company will repay a portion of the debt with proceeds from a $400 million 8½% senior secured notes offering that was upsized from $250 million, according to a trader.

However, the company's December 2017 term loan was a touch higher in trading at 99 3/8 bid, 99 7/8 offered, versus 99 bid, 99½ offered in the prior session, the trader said.

Sabre is a Southlake, Texas-based travel technology company.

Harvard Drug reveals talk

Over in the primary, Harvard Drug Group held a bank meeting on Thursday morning to kick off syndication on its senior secured credit facility, and with the launch, price talk on the $345 million seven-year term loan B was announced, according to a market source.

The B loan, of which $45 million is delayed-draw, is being talked at Libor plus 500 bps with a 1.25% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, the source said. The delayed-draw portion has a ticking fee of half the spread after 30 days from close, stepping up to the full spread after 60 days.

The company's $380 million deal (B+) also includes a $35 million five-year revolver.

Lead banks, Morgan Stanley & Co. and Deutsche Bank Securities Inc., are seeking commitments by Oct. 4, the source added.

Proceeds will be used to refinance debt and finance the acquisition of the Rugby Group Inc. and another company.

Harvard Drug is a Livonia, Mich.-based independent pharmaceutical distributor.

Deltek releases details

Deltek came out with talk of Libor plus 475 bps with a 1.25% Libor floor, an original issue discount of 99 and 101 soft call protection for one year on its $425 million first-lien term loan with its bank meeting, according to market sources.

Also, talk on the $225 million second-lien term loan emerged as Libor plus 875 bps with a 1.25% Libor floor and a discount of 981/2, sources said, adding that call protection is 103 in year one, 102 in year two and 101 in year three.

The company's $680 million senior secured credit facility also includes a $30 million revolver.

Lead banks, Jefferies Finance LLC and RBC Capital Markets, are seeking commitments by Oct. 4.

Proceeds will help fund the buyout of the company by Thoma Bravo LLC for $13 per share, or about $1.1 billion.

Closing is expected in the fourth quarter, subject to regulatory approvals.

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

RadNet pricing

Another company to hold a bank meeting was RadNet, at which time its $330 million six-year term loan B was presented with talk of Libor plus 425 bps to 450 bps with a 1.25% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, a source said.

Also, the company revealed that its five-year revolver is proposed to be sized at $101.25 million, versus earlier guidance of a size between $100 million to $125 million, the source said.

Commitments for the $431.25 million senior secured credit facility (Ba3/B+) are due on Oct. 3.

Barclays, GE Capital Markets, RBC Capital Markets LLC and Deutsche Bank Securities Inc. are leading the deal that will be used to refinance an existing senior secured credit facility.

Leverage is 2.9 times on a senior secured basis and 4.4 times total, the source remarked.

RadNet is a Los Angeles-based owner and operator of fixed-site diagnostic imaging centers.

TriZetto holds call

TriZetto held its lender call in the afternoon, launching its $150 million 61/2-year second-lien term loan with talk of Libor plus 725 bps to 750 bps with a 1.25% Libor floor and an original issue discount of 981/2, according to a market source.

Included in the loan is call protection of 103 in year one, 102 in year two and 101 in year three, the source remarked.

Commitments are due on Wednesday.

RBC Capital Markets is leading the deal that will be used to refinance revolver borrowings and to put additional cash on its balance sheet.

TriZetto is a Greenwood Village, Colo.-based health care information technology company to the health care payer industry.

Intelsat guidance emerges

Intelsat Jackson revealed talk of Libor plus 325 bps to 350 bps with a 1% Libor floor, a par offer price and 101 soft call protection for one year on its $3.218 billion term loan B-1 that launched with a call in the morning, according to sources.

The company's $3.718 billion credit facility also includes a $500 million revolver.

Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC and J.P. Morgan Securities LLC are leading the deal that will be used to refinance/reprice existing debt through an amendment to the current credit facility that will take term loan pricing down from Libor plus 375 bps with a 1.5% Libor floor.

Commitments are due on Tuesday, sources added.

Intelsat is a Luxembourg-based provider of satellite services.

Jacobs talk comes out

Jacobs Entertainment set guidance on its $210 million six-year first-lien term loan (B2/BB-) at Libor plus 500 bps with a 1.25% Libor floor, an original issue discount of 98½ and 101 repricing protection for one year, a source said.

And, talk on the $110 million seven-year second-lien term loan (Caa2/CCC+) surfaced at Libor plus 950 bps with a 1.25% floor, a discount of 98 and call protection of 103 in year one, 102 in year two and 101 in year three, the source continued.

Commitments for the company's $370 million credit facility, which also includes a $50 million five-year revolver (B2/BB-), are due on Oct. 4.

Credit Suisse Securities (USA) LLC is leading the deal that will refinance $210 million of 9¾% senior unsecured notes due June 15, 2014 and a $97 million senior bank credit facility.

Jacobs Entertainment is a Golden, Colo.-based owner and operator of gaming properties.

Pilot Travel repricing

Pilot Travel launched a $971.4 million term loan B due March 2018 with talk of Libor plus 275 bps to 300 bps with a 0.75% Libor floor and a par offer price, and it will reprice an existing term loan B from Libor plus 325 bps with a 1% Libor floor, according to a market source.

The repriced B loan has 101 soft call protection for one year, the source said.

Lead bank, Bank of America Merrill Lynch, is asking for commitments by noon ET on Sept. 27.

Pilot is a Knoxville, Tenn.-based operator of travel centers.

GNC launches

Also launching during the session was General Nutrition Centers Inc.'s (GNC) $1.1 billion term loan B due March 2018, and it came in line with previously outlined talk of Libor plus 275 bps with a 1% Libor floor, an offer price of 99¾ to par and 101 soft call protection for one year, according to a market source.

J.P. Morgan Securities LLC is the lead bank on the deal.

Proceeds will be used to refinance an existing term loan B.

General Nutrition is a Pittsburgh-based specialty retailer of health and wellness products.

First American sets deadline

First American Payment Systems LP told investors that they have until Oct. 3 to place their orders for its $405 million credit facility that launched on Thursday afternoon, according to a market source.

As reported earlier, the facility consists of a $30 million five-year revolver and a $250 million six-year first-lien term loan, both talked at Libor plus 500 bps with a 1.25% Libor floor and an original issue discount of 99, and a $125 million 61/2-year second-lien term loan talked at Libor plus 950 bps with a 1.25% floor and a discount of 98.

Included in the first-lien term loan 101 repricing protection for one year, and call protection on the second-lien term loan is 103 in year one, 102 in year two and 101 in year three.

Credit Suisse Securities (USA) LLC and Goldman Sachs & Co. are the lead banks on the deal that will be used to refinance existing debt and fund a dividend.

First American Payment is a Fort Worth, Texas-based provider of payment processing services.

CAMP readies deal

In other news, CAMP International set a conference call for 11 a.m. ET on Friday to launch a repricing of its roughly $255 million covenant-light first-lien term loan from Libor plus 525 bps with a 1.25% Libor floor, according to a market source.

Deutsche Bank Securities Inc. is the lead bank on the deal.

CAMP is a Ronkonkoma, N.Y.-based provider of maintenance tracking for business aviation.

Essar Steel closes

Essar Steel Algoma Inc. completed its $350 million two-year senior secured asset-based term loan (B1), according to a news release.

Pricing on the loan is Libor plus 750 bps with a 1.25% Libor floor, and it was sold at a discount of 98, after tightening from 96. The debt is non-callable for one year, then at 102 for six months and par thereafter.

Deutsche Bank Securities Inc. led the deal that was used to repay in full all outstanding amounts and terminate all commitments under the company's existing senior secured asset-based revolver.

Essar Steel is a Sault Ste. Marie, Ont.-based manufacturer and seller of rolled steel products, including hot and cold rolled sheet and plate.

IntegraMed wraps

IntegraMed America Inc. closed on its $95 million five-year senior secured credit facility that helped fund its buyout by Sagard Capital Partners LP for $14.05 per share in cash, or a total equity purchase price of $169.5 million, according to a news release.

Golub Capital led the deal.

In filings with the Securities and Exchange Commission, the facility was outlined as a $5 million revolver and a $90 million term loan, with both tranches priced at Libor plus 725 bps with a 1.25% Libor floor. The revolver has a 50 bps unused fee, and call protection on the term loan is 103 in year one, 102 in year two and 101 in year three.

IntegraMed is a Purchase, N.Y.-based developer, marketer and manager of specialty health care facilities in the fertility and vein care markets.

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