Navistar gains on Volkswagen Truck alliance; Cablevision dips; Xplornet breaks atop OID

By Sara Rosenberg

New York, Sept. 6 – Navistar International Corp.’s term loan jumped higher by a number of points in trading on Tuesday after the company announced the formation of a strategic alliance with Volkswagen Truck & Bus.

Also in the secondary market, Cablevision Systems Corp.’s term loan B softened a little with partial refinancing news, and Xplornet Communications Inc.’s credit facility freed up for trading.

Switching to the primary market, LANDesk Software disclosed tranching and price talk on its credit facility with launch, and Ineos Styrolution Group GmbH, Badger Sportswear, Allison Transmission Inc. and Solaray LLC joined this week’s new issue calendar.

In addition, Intellectual Property & Science (Camelot Finance LP) came out with timing and structure on its credit facility, bank meeting dates surfaced on Polycom Inc., Coinstar, Epiq Systems Inc. and Dell Software Group’s loan transactions, and Floor & Decor emerged with new deal plans.

Navistar rallies

Navistar’s term loan was much stronger in the secondary market on Tuesday with news of an alliance with Volkswagen Truck & Bus that includes an equity investment in Navistar and framework agreements for strategic technology and supply collaboration and a procurement joint venture, according to a trader.

The term loan was quoted at par bid, 101 offered, up from 94½ bid, 95½ offered, the trader said.

Under the alliance, Volkswagen Truck & Bus will acquire 16.2 million newly issued shares in Navistar for $15.76 per share, representing 16.6% of post-transaction undiluted common stock or 19.9% of pre-transaction outstanding common stock.

Navistar will use the $256 million in proceeds from the equity investment for general corporate purposes.

Closing of the share purchase agreement implementing the strategic alliance is subject to certain regulatory approvals, the finalization of the agreements governing the procurement joint venture and the first contract under the technology and supply framework agreement and other customary conditions.

Navistar is a Lisle, Ill.-based manufacturer and seller of commercial and military trucks, buses and diesel engines and a provider of service parts for trucks and trailers. Volkswagen Truck is a commercial vehicle company.

Cablevision weakens

Cablevision’s term loan B due October 2022 fell to 100 3/8 bid, 100 7/8 offered from 100¾ bid, 101 1/8 offered as news came out that the company will refinance a portion of the loan with proceeds from a proposed $1.9 billion eight-year term loan B, a trader remarked.

The new loan, which will launch with a lender call on Wednesday, is talked at Libor plus 325 basis points with a 0.75% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months, a source added.

J.P. Morgan Securities LLC is leading the new deal.

Cablevision is a Bethpage, N.Y.-based media and telecommunications company.

Xplornet frees up

Also in trading, Xplornet Communications’ credit facility starting trading, with the $285 million five-year term loan (B1/B) quoted at 99¾ bid, 100¼ offered on the break, and then it moved up to par bid, a market source said.

Pricing on the term loan is Libor plus 600 bps with a 1% Libor floor, and it was sold at an original issue discount of 99. The debt has 101 soft call protection for one year.

During syndication, the issue price on the term loan was tightened from 98.5.

The company’s $335 million credit facility also includes a $50 million revolver (Ba3/B+).

SunTrust Robinson Humphrey Inc., BMO Capital Markets Corp. and Jefferies Finance LLC are leading the deal that will be used to refinance existing senior secured notes.

Xplornet is a Woodstock, New Brunswick-based rural-focused broadband service provider.

LANDesk details emerge

Moving to the primary market. LANDesk Software held its bank meeting on Tuesday, launching a $730 million credit facility to investors, a market source said.

The facility consists of a $20 million five-year revolver (B+), a $515 million six-year first-lien term loan (B+) and a $195 million seven-year second-lien term loan (CCC+).

Talk on the first-lien term loan is Libor plus 450 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and talk on the second-lien term loan is Libor plus 850 bps with a 1% Libor floor, a discount of 98 and hard call protection of 102 in year one and 101 in year two, the source continued.

Commitments are due on Sept. 16.

Jefferies Finance LLC is leading the deal that will be used to refinance existing debt and fund a dividend.

LANDesk is a South Jordan, Utah-based user-centered IT management company.

Ineos Styrolution on deck

Ineos Styrolution emerged with plans to hold a lender call on Wednesday to launch a €1,102,000,000-equivalent U.S. dollar and euro five-year term loan B, with the U.S. and euro split still to be determined, according to a market source.

Barclays and J.P. Morgan Securities LLC are leading the deal that will be used with balance sheet cash to refinance the company’s existing senior secured term loans, to repay its second-lien PIK toggle loan held by Ineos and to pay related fees and expenses.

Ineos Styrolution is a Germany-based styrenics supplier with a focus on styrene monomer, polystyrene, ABS Standard and styrenic specialties.

Badger deal surfaces

Badger Sportswear scheduled a lender meeting for Friday to launch a $210 million senior credit facility, split between a $20 million six-year revolver and $190 million seven-year term loan, a market source said.

The company is also getting a $75 million second-lien term loan that has been privately placed, the source added.

Antares Capital is leading the deal that will be used to help fund the buyout of the company by CCMP Capital Advisors.

Badger Sportswear is a Statesville, N.C.-based manufacturer and supplier of on-field uniforms and performance athletic apparel focused on serving youth and adult recreational leagues, as well as elementary, middle and high schools.

Allison joins calendar

Allison Transmission set a call for 11 a.m. ET on Wednesday to launch a new loan to current and prospective lenders, a source remarked.

Citigroup Global Markets Inc. is leading the deal.

Allison Transmission is an Indianapolis-based automatic transmission company and supplier of hybrid-propulsion systems.

Solaray plans meeting

Solaray will hold a bank meeting on Thursday to launch a new loan transaction, according to a market source, who said details on the debt are not yet available.

Antares Capital is leading the deal that will be used to help fund the buyout of the company by Aurora Capital.

Solaray is a Sapulpa, Okla.-based seller of sunglasses, wireless accessories, lighters and promotional products.

Intellectual Property sets launch

Intellectual Property & Science scheduled a bank meeting for 10 a.m. ET in New York on Wednesday to launch a $1,625,000,000 credit facility, a market source said. Timing on the deal was formerly described broadly as expected September business.

Also, the facility is now known to consist of a $175 million revolver, and a $1.45 billion seven-year covenant-light first-lien term loan that is talked with a 1% Libor floor and 101 soft call protection for six months, the source continued. Structure on the financing was not previously available.

Commitments are due at 5 p.m. ET on Sept. 15.

Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch, RBC Capital Markets LLC, Citigroup Global Markets Inc., Barclays, Goldman Sachs Bank USA and Guggenheim are leading the deal.

Intellectual Property being acquired

Proceeds from Intellectual Property & Science’s credit facility will be used with bonds and about $1.6 billion in equity to fund its acquisition by Onex Corp. and Baring Private Equity Asia from Thomson Reuters for $3.55 billion in cash.

Closing is expected in the next few months, subject to regulatory approval and customary conditions. The transaction is not subject to financing.

Intellectual Property & Science is a Philadelphia-based provider of comprehensive intellectual property and scientific information, decision support tools and services.

Polycom readies deal

Polycom will hold a bank meeting on Thursday morning to launch its $50 million five-year revolver and $750 million seven-year first-lien term loan, a market source remarked. Previously, timing on the deal was outlined as September business.

The company’s $1 billion credit facility also provides for a $200 million eight-year second-lien term loan that was privately placed.

Macquarie Capital (USA) Inc. is leading the credit facility that will be used with equity to fund the buyout of the company by Siris Capital Group LLC for $12.50 per share in cash, or about $2 billion, including Polycom’s outstanding debt.

Closing is expected in in September/October, subject to regulatory approval, shareholder approval, which has been received, and other customary conditions.

Polycom is a San Jose, Calif.-based provider of secure video, voice and content solutions.

Coinstar timing revealed

Coinstar scheduled a bank meeting for 10 a.m. ET in New York on Thursday to launch its previously announced $745 million senior secured credit facility, a market source said.

The facility consists of a $75 million five-year revolver, a $535 million seven-year covenant-light first-lien term loan and a $135 million eight-year covenant-light second-lien term loan.

According to filings with the Securities and Exchange Commission, the first-lien term loan is expected to have a 1% Libor floor and 101 soft call protection for six months, and the second-lien term loan is expected to have a 1% Libor floor and call protection of 102 in year one and 101 in year two.

Bank of America Merrill Lynch, Jefferies Finance LLC, Credit Suisse Securities (USA) LLC and Barclays are leading the deal that will back the buyout of Coinstar’s parent company, Bellevue, Wash.-based Outerwall Inc., by Apollo Global Management LLC for $52 per share in cash, or about $1.6 billion, including net debt.

Closing is expected during the third quarter, subject to satisfaction of a minimum tender condition, the receipt of regulatory approvals and other customary conditions.

Coinstar is a fully automated network of self-service coin-counting machines.

Epiq schedules meeting

Epiq Systems set a bank meeting for Thursday to launch its $1,295,000,000 credit facility, consisting of a $100 million revolver and a $1,195,000,000 seven-year covenant-light term loan B, according to a market source.

Bank of America Merrill Lynch, Goldman Sachs Bank USA, Antares Capital, Ares Capital Management LLC and Golub Capital LLC are leading the deal that will be used with up to $490 million in equity to fund the buyout of the company by OMERS Private Equity and Harvest Partners LP for $16.50 per share in cash, or about $1 billion, including assumed debt obligations.

Epiq will be combined with DTI, an Atlanta-based legal process outsourcing company majority-owned by OMERS.

Closing is expected in the fourth quarter, subject to customary conditions, including receipt of shareholder and regulatory approvals.

Epiq is a Kansas City, Kan.-based provider of integrated technology and services for the legal profession.

Dell Software coming soon

Dell Software Group set a bank meeting for 10 a.m. ET on Friday to launch its loan financing, according to a market source.

Details on the structure of the deal are not yet available, the source said.

Credit Suisse Securities (USA) LLC and RBC Capital Markets are leading the debt that will be used to help fund the buyout of the company by Francisco Partners and Elliott Management Corp. from Dell Inc.

Closing is subject to customary regulatory review.

Dell Software is a provider of mission-critical software.

Floor & Decor next week

Floor & Decor is expected to host a bank meeting during the week of Sept. 12 to launch a new loan transaction, a market source remarked.

UBS Investment Bank is leading the deal.

Floor & Decor is an Atlanta-based specialty retailer in the hard surface flooring market.

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