Harland Clarke, Focus Brands, Caraustar break; SuperMedia term loan dips with numbers

By Sara Rosenberg

New York, April 26 - Harland Clarke Holdings Corp.'s term loan made its way into the secondary market on Friday, with levels seen above its original issue discount price, and Focus Brands Inc. and Caraustar Industries Inc. freed up as well.

Also in trading, SuperMedia Inc.'s term loan was a little lower after the release of quarterly results that showed a year-over-year decline in income and revenue.

Moving to the primary, Constellation Brands Inc. (CIH International SARL) firmed pricing on its term loan B at the low end of guidance while adding a leverage-based step-down, EP Energy Corp. set pricing at the tight end of talk, and Liquidnet Holdings Inc. moved up the commitment deadline on its first-lien term loan.

Furthermore, Charlotte Russe began circulating talk on its loan ahead of launch, Coinmach Corp. timing emerged, and Digital Cinema Implementation Partners LLC, Press Ganey Associates Inc. (PGA Holdings Inc.), Alvogen Pharma U.S., Inc. USA and Seminole Hard Rock Entertainment are getting ready to bring new deals to market.

Harland starts trading

Harland Clarke's $750 million first-lien covenant-light incremental term loan B-3 (B1/B+) due May 2018 freed up on Friday, with levels quoted at 99 5/8 bid, par 1/8 offered, according to a market source.

Pricing on the loan is Libor plus 550 basis points with a 1.5% Libor floor, and it was sold at an original issue discount of 99. There is call protection of 102 in year one and 101 in year two.

During syndication, the spread firmed at the wide end of the Libor plus 525 bps to 550 bps talk, the Libor floor was raised from 1.25%, call protection was revised from 101 for one year, and amortization was increased to 2.5% from 1%.

Credit Suisse Securities (USA) LLC, BofA Merrill Lynch, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co., Jefferies Finance LLC and J.P. Morgan Securities LLC are leading the deal that will repay a non-extended term loan due 2014 priced at Libor plus 250 bps.

Pro forma leverage is 4 times last-12-months March 31 adjusted EBITDA of $510 million.

Harland Clarke is a San Antonio-based provider of payment, marketing and security services.

Focus frees up

Focus Brands' $354.1 million first-lien term loan due February 2018 also hit the secondary market, with levels quoted at par ½ bid, 101 offered, sources remarked.

Pricing on the loan is Libor plus 325 bps with a 1% Libor floor, and it was issued at par. There is 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC is leading the deal that is being used to reprice an existing term loan from Libor plus 500 bps with a 1.25% Libor floor.

Focus Brands is an Atlanta-based franchisor and operator of ice cream stores, bakeries, restaurants and cafes.

Caraustar tops OID

Another deal to break was Caraustar Industries' credit facility, with the $350 million six-year covenant-light first-lien term loan (B2/B+) quoted by one source at par bid and by a second source at par bid, 101 offered.

Pricing on the term loan is Libor plus 625 bps with a 1.25% Libor floor, and it was sold at a discount of 991/4. There is soft call protection of 102 in year one and 101 in year two.

Recently, the term loan was upsized from $330 million, pricing was reduced from Libor plus 650 bps and the discount was tightened from 99.

The company's $400 million credit facility also provides for a $50 million five-year ABL revolver (Ba2/BB).

Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. and Jefferies Finance LLC are leading the deal that will help fund the buyout of the company by H.I.G. Capital.

As a result of the term loan upsizing, the amount of equity being used for the buyout was reduced.

Caraustar is an Austell, Ga.-based manufacturer of recycled paperboard products and packaging.

SuperMedia slides

Also on the trading front, SuperMedia's term loan dropped to 74 bid, 75 offered from 74¼ bid, 75¼ offered after the company announced quarterly numbers in a 10-Q filed with the Securities and Exchange Commission, according to a trader.

For the quarter ended March 31, the company reported net income of $40 million, or $2.55 per share, compared to net income of $62 million, or $3.97 per share, in the comparable period in 2012.

And, oOperating revenue for the quarter was $293 million, down from $363 million last year.

SuperMedia is a Dallas-based directory publisher.

Constellation updates terms

Over in the primary, Constellation Brands set the spread on its $1 billion seven-year term loan B at Libor plus 200 bps, the low end of the Libor plus 200 bps to 225 bps talk, and added a step-down to Libor plus 175 bps when consolidated leverage is less than 4.25 times that is only available after the delivery of financials for two full quarters following closing, according to a market source.

As before, the loan has a 0.75% Libor floor, an original issue discount of 99¾ and 101 soft call protection for one year.

Recommitments were due at 5 p.m. ET on Friday, the source remarked.

J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Wells Fargo Securities LLC and Barclays are leading the deal that will be used to help fund the acquisition of Grupo Modelo's U.S. business.

Constellation Brands is a Victor, N.Y.-based wine company.

EP Energy sets coupon

EP Energy firmed pricing on its $750 million senior secured term loan B-3 due April 24, 2018 at Libor plus 275 bps, the tight end of the Libor plus 275 bps to 300 bps area talk, according to a market source.

The loan still has a 0.75% Libor floor, a par offer price and 101 soft call protection for six months.

Citigroup Global Markets Inc. is leading the deal that will be used to reprice/refinance a $750 million term loan B-1 due May 1, 2018 priced at Libor plus 400 bps with a 1% Libor floor.

EP Energy is a Houston-based oil and natural gas exploration and production company.

Liquidnet shutting early

Liquidnet accelerated the commitment deadline on its $150 million four-year senior secured first-lien term loan (B3/B) to 4 p.m. ET on Monday from May 3, according to a market source.

Talk on the term loan is Libor plus 800 bps with a 1.25% Libor floor, an original issue discount of 99 and 101 soft call protection for one year.

Jefferies Finance LLC and J.P. Morgan Securities LLC are the lead banks on the deal.

Proceeds will be used to refinance existing debt.

Liquidnet is a New York-based institutional equities trading network.

Charlotte Russe floats talk

In other primary happenings, Charlotte Russe started going out with talk of Libor plus 500 bps to 550 bps with a 1.25% Libor floor, an original issue discount of 99 and 101 soft call protection for one year on its $150 million six-year covenant-light term loan that will launch with a bank meeting at 11 a.m. ET on Tuesday, according to a market source.

Jefferies Finance LLC and Macquarie Capital are leading the deal.

Proceeds will be used to refinance existing debt.

With this transaction, Charlotte Russe, a San Diego-based women's apparel company, will have leverage of less than 2 times and debt to EBITDAR is in the low-5 times area, the source added.

Coinmach reveals timing

Coinmach announced timing on its credit facility, setting a bank meeting for Tuesday to launch the $75 million five-year revolver (B2) and $770 million 61/2-year covenant-light first-lien term loan (B2) tranches, according to a market source.

The company's $325 million seven-year covenant-light second-lien term loan will not be presented to lenders since it has already been placed with the sponsor and friends and family of the sponsor, the source explained.

Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc., KeyBanc Capital Markets LLC, Credit Suisse Securities (USA) LLC and UBS Investment Bank are leading the first-lien debt, and Deutsche Bank is sole lead on the second-lien debt.

Proceeds from the $1.17 billion credit facility will be used to help fund the buyout of the company by Pamplona Capital Management.

Coinmach, a laundry equipment service provider, will have first-lien leverage of 3.3 times and total leverage of 4.8 times.

Digital Cinema readies deal

Digital Cinema Implementation Partners set a bank meeting for Tuesday to launch a $755 million credit facility that will be used to refinance existing bank debt, according to a market source.

The facility consists of a $75 million revolver and a $680 million term loan, the source said, adding that price talk is not yet available.

Barclays and Credit Suisse Securities (USA) LLC are leading the transaction.

Digital Cinema is a Mahwah, N.J.-based digital cinema integrator.

Press Ganey joins calendar

Press Ganey Associates scheduled a call for 2 p.m. ET on Monday to launch a $371,550,000 first-lien senior secured term loan due April 20, 2018, according to a market source.

Barclays is leading the deal that will be used to reprice an existing $341,550,000 first-lien term loan and the $30 million of incremental debt will be used to repay some second-lien term loan borrowings.

Press Ganey is a South Bend, Ind.-based provider of health care performance improvement services.

Alvogen on deck

f Alvogen Pharma will host a bank meeting at 2 p.m. ET in New York on Tuesday to launch a $225 million five-year term loan B that will be used to refinance existing debt, according to a market source.

Morgan Stanley Senior Funding Inc. and Jefferies Finance LLC are leading the deal.

Alvogen is a Pine Brook, N.J.-based pharmaceuticals company.

Seminole coming soon

Seminole Hard Rock Entertainment set a bank meeting for 10:30 a.m. ET in New York on Tuesday to launch a $240 million seven-year covenant-light term loan B that has 101 soft call protection for six months, according to a market source.

Bank of America Merrill Lynch and Credit Suisse Securities (USA) LLC are leading the financing.

Proceeds will be used to repay existing debt and for general corporate purposes.

Seminole Hard Rock is an owner, operator and franchisor of Hard Rock cafes, casinos and hotels.

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