Revlon, Wesco, Party City, Coinmach, TNS break; Deluxe, Curo, Calpine, Playa update deals

By Sara Rosenberg

New York, Feb. 24 - Revlon Consumer Products Corp.'s term loan freed up for trading on Monday, and Wesco Aircraft Holdings Inc., Party City Holdings Inc., Coinmach Corp. and TNS Inc. emerged in the secondary market as well.

Over in the primary, Deluxe Entertainment Services Group Inc. lifted the size of its term loan, tightened the spread and original issue discount and shortened the call protection, and Curo Health Services revised the coupon and offer price on its term loan.

Also, Calpine Construction Finance Co. increased its add-on loan size and finalized the offer price, Playa Resorts Holding BV firmed pricing on its loan at the low end of guidance and International Lease Finance Corp. moved up the commitment deadline on its term loan.

Furthermore, National Vision Inc. released price talk on its term debt with launch, and Empire Generating Co. LLC, IMG Worldwide Holdings Inc., Hudson Products Corp., Steak n Shake Operations Inc., National Response Corp. and Charlotte Russe are on deck to launch new deals this week.

Revlon starts trading

Revlon's $675 million senior secured term loan B due Nov. 19, 2017 made its way into the secondary market on Monday with levels quoted at par bid, par ¼ offered, according to a trader.

Pricing on the loan is Libor plus 250 basis points with a 0.75% Libor floor and it was issued at par. There is 101 soft call protection for one year.

During syndication, the spread on the term loan firmed at the low end of the Libor plus 250 bps to 275 bps talk and the call protection was extended from six months.

Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Bank of America Merrill Lynch and Wells Fargo Securities LLC are leading the deal that will be used to refinance an existing term loan B due 2017 priced at Libor plus 300 bps with a 1% Libor floor.

Closing is targeted for Wednesday.

Revlon is a New York-based cosmetics and accessories company.

Wesco hits secondary

Wesco Aircraft's $525 million seven-year senior secured term loan B (Ba3/BB-) began trading too, with levels quoted at par bid, par ½ offered, a trader said.

Pricing on the B loan is Libor plus 250 bps with a 0.75% Libor floor and it was sold at an original issue discount of 993/4. There is 101 soft call protection for six months.

Recently, pricing on the loan was cut from Libor plus 275 bps and the discount was changed from 991/2.

Bank of America Merrill Lynch, Barclays, Morgan Stanley Senior Funding Inc. and RBC Capital Markets are leading the deal.

Wesco buying Haas

Proceeds from Wesco's term loan, a $32.9 million draw under its existing revolver and $25 million of cash on hand will be used to fund the acquisition of Haas Group Inc. for $550 million in cash, subject to certain closing adjustments, from the Jordan Co. LP.

Pro forma for the transaction, consolidated total leverage is expected to be 4.4 times.

Closing is expected by the end of this quarter, subject to customary conditions.

Wesco is a Valencia, Calif.-based provider of comprehensive supply chain management services to the aerospace industry. Haas is a West Chester, Pa.-based provider of chemical supply chain management solutions to the commercial aerospace, airline, military, energy and other markets.

Party City frees up

Party City's $1.11 billion covenant-light term loan B due July 2019 broke as well, with levels seen at par 1/8 bid, par ½ offered, a source said.

Pricing on the loan is Libor plus 300 bps with a 1% Libor floor and it was issued at par. There is 101 soft call protection for six months.

During syndication, the offer price was changed from talk of 99¾ to 99 7/8, and the company removed proposed step-downs to Libor plus 275 bps at 6.25 times total leverage and to Libor plus 250 bps at 5.5 times total leverage subject to a qualifying initial public offering.

Deutsche Bank Securities Inc. is leading the deal that will be used to reprice an existing term loan from Libor plus 325 bps with a 1% Libor floor.

Party City is a Rockaway, N.J.-based designer, manufacturer and distributor of party goods, including paper and plastic tableware, metallic balloons, accessories, novelties, gifts and stationery.

Coinmach tops par

Another deal to start trading was Coinmach's $125 million incremental covenant-light first-lien term loan due November 2019, with levels quoted at par 1/8 bid, par ½ offered, according to a market source.

The term loan is priced at Libor plus 325 bps with a 1% Libor floor and has 101 soft call protection until July 2014, which matches the existing first-lien term loan. The debt was issued at par, after firming at the tight end of the 99¾ to par talk.

Deutsche Bank Securities Inc. and Morgan Stanley Senior Funding Inc. are leading the deal that will be used to refinance a portion of the company's existing second-lien term loan.

Coinmach is a laundry equipment service provider.

TNS breaks

TNS' terms loan emerged in the secondary too, with the $100 million add-on first-lien term loan quoted at par ¼ bid, par ¾ offered and the $100 million add-on second-lien term loan quoted at 101½ bid, 102¼ offered, a market source said.

Pricing on the first-lien term loan is Libor plus 400 bps with a 1% Libor floor and pricing on the second-lien term loan is Libor plus 800 bps with a 1% Libor floor, in line with existing first-and second-lien term loan pricing. The first-lien loan was sold at par and the second-lien loan was sold at 991/2.

During syndication, the add-on first-lien loan was increased from $70 million and the offer price was tightened from 991/2, and the add-on second-lien loan was decreased from $115 million.

SunTrust Robinson Humphrey Inc. and Macquarie Capital (USA) Inc. are leading the deal that will be used to fund a dividend.

TNS is a Reston, Va.-based provider of data communications and interoperability services.

Caribbean holds steady

In more trading news, Caribbean Restaurants LLC's $145 million five-year first-lien term loan (Caa1/B-) was seen at 99 bid and its $50 million 51/2-year second-lien term loan (Caa3/CCC) was seen at 98 bid, in line with where the debt freed up for trading late Friday, a trader remarked.

Pricing on the first-lien term loan is Libor plus 775 bps with a 1% Libor floor and it was sold at an original issue discount of 99. There is 101 soft call protection for one year.

The second-lien term loan is priced at Libor plus 1,100 bps cash plus 6% PIK with a 1% Libor floor and was sold at 98. This tranche is non-callable for three years, then at 106 in year four and 103 in year five.

The company's $205 million credit facility also includes $10 million revolver (Caa1/B-).

During syndication, the operator of Burger King restaurants in Puerto Rico upsized its first-lien term loan from $140 million and the downsized its revolver from $15 million.

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

Sensis flat

Sensis' $315 million five-year term loan was quoted at 99½ bid, par ¼ offered on Monday, unchanged from Friday's breaking levels, according to a trader.

Pricing on the term loan is Libor plus 700 bps with a 1% Libor floor and it was sold at a discount of 99, after flexing recently from 98. There is 101 soft call protection for one year.

Bank of America Merrill Lynch, Macquarie Capital and Credit Suisse Securities (USA) LLC are leading the deal that will be used to help fund the purchase of a 70% stake in the company by Platinum Equity from Telstra Corp. Ltd. for $454 million.

Sensis is a provider of local search and digital marketing services to Australian businesses.

Deluxe reworks loan

Moving to the primary, Deluxe Entertainment increased its six-year first-lien term loan (B2/B) to $605 million from $570 million, trimmed pricing to Libor plus 550 bps from Libor plus 650 bps, moved the original issue discount to 99½ from 99 and revised the 101 soft call protection to a term of six months from one year, according to a market source. The 1% Libor floor was unchanged.

The company's now $705 million credit facility also includes a $100 million five-year ABL revolver.

Recommitments were due at 5 p.m. ET on Monday, the source said.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Citigroup Global Markets Inc. and Morgan Stanley Senior Funding Inc. are leading the deal that will be used to refinance existing debt, and because of the term loan upsizing, to fund a dividend and for general corporate purposes.

Deluxe is a Shoreview, Minn.-based provider of digital asset creation, management and distribution services.

Curo modifies pricing

Curo Health Services reduced the spread on its $135 million term loan to Libor plus 375 bps from Libor plus 400 bps and changed the original issue discount to 99½ from 99, a market source said.

The term loan still has a 1% Libor floor and 101 soft call protection for six months.

The company's $160 million credit facility also includes a $25 million revolver.

SunTrust Robinson Humphrey Inc. and GE Capital Markets are leading the deal that will be used to refinance existing debt and fund a dividend.

Curo Health is a Mooresville, N.C.-based provider of home health care and hospice services.

Calpine Construction revised

Calpine Construction Finance raised its add-on term loan B-2 due Jan. 31, 2022 to $425 million from $375 million and set the original issue discount at 983/4, the middle of the 98½ to 99 talk, according to a market source.

Pricing on the add-on is Libor plus 250 bps with a 0.75% Libor floor, which matches the existing term loan B-2.

Bank of America Merrill Lynch, Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc., Credit Suisse Securities (USA) LLC, Union Bank and UBS Securities LLC are leading the deal that will be used to help fund the $625 million acquisition of a nominal 1,050 megawatt, combined-cycle power plant in Guadalupe County from MinnTex Power Holdings LLC.

Closing is expected this quarter, subject to customary conditions, antitrust review under the Hart-Scott-Rodino Act and approval by the Public Utility Commission of Texas.

Calpine Construction is a subsidiary of Calpine Corp., a Houston-based power producer.

Playa finalizes spread

Playa Resorts set pricing on its $375 million term loan (B2) due August 2019 at Libor plus 300 bps, the low end of the Libor plus 300 bps to 325 bps talk, and kept the 1% Libor floor, par offer price and 101 soft call protection for six months intact, according to a market source.

Proceeds will be used to reprice an existing term loan from Libor plus 375 bps with a 1% Libor floor, and existing lenders will get paid out at 101 due to current call protection.

Deutsche Bank Securities Inc. and Bank of America Merrill Lynch are leading the deal.

Playa is an owner, operator and developer of all-inclusive resorts in the Dominican Republic, Mexico and Jamaica.

International Lease deadline

International Lease Finance accelerated the commitment deadline on its $1 billion seven-year term loan B (Ba2/BBB-/BB) to 5 p.m. ET on Wednesday from noon ET on Thursday, a market source remarked.

The loan is talked at Libor plus 275 bps to 300 bps with a 0.75% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months.

Deutsche Bank Securities Inc., Goldman Sachs Bank USA and RBC Capital Markets are leading the deal that will be used for general corporate purposes.

International Lease is a Los Angeles-based independent aircraft lessor.

Fibertech closes books

Fibertech Networks shut the books on Monday on its $511.2 million term loan B after recently adding a leverage-based step-down to Libor plus 275 bps and setting the offer price on the $135 million add-on portion of the tranche at 993/4, the tight end of the 99½ to 99¾ talk, according to a market source.

Opening pricing on the loan remained at Libor plus 300 bps with a 1% Libor floor and there is still 101 soft call protection for six months.

Proceeds from the add-on debt and cash on hand will be used to fund a dividend, and the remaining portion will be used to reprice an existing term loan from Libor plus 350 bps with a 1% Libor floor.

TD Securities (USA) LLC is leading the deal that is expected to allocate this week and close on March 7 when the current call protection on the existing term loan B expires.

Pro forma net leverage is 4.1 times all senior.

Fibertech is a Rochester, N.Y.-based provider of fiber optic bandwidth services.

National Vision sets talk

Also in the primary, National Vision held its bank meeting on Monday, launching its $475 million first-lien term loan with talk of Libor plus 325 bps with a 1% Libor floor, an original issue discount of 99¾ and 101 soft call protection for six months, according to a market source.

Also, the $150 million second-lien term loan was launched at Libor plus 625 bps with a 1% Libor floor, a discount of 991/2, and call protection of 102 in year one and 101 in year two, the source said.

Commitments for the company's $700 million credit facility, which also includes a $75 million revolver, are due on March 10.

Goldman Sachs Bank USA (left on first-lien), Morgan Stanley Senior Funding Inc. (left on second-lien), Citigroup Global Markets Inc., KKR Capital Markets, Mizuho, Barclays and Macquarie Capital are leading the deal that will be used to help fund the buyout of the company by KKR from Berkshire Partners.

Closing is expected by the end of this quarter, subject to regulatory approvals and customary conditions.

National Vision is a Lawrenceville, Ga.-based retailer of eyeglasses and contact lenses.

Empire Generating on deck

Empire Generating surfaced with plans to hold a bank meeting at 3 p.m. ET in New York on Wednesday to launch a $480 million credit facility, according to a market source.

The facility consists of a $20 million five-year revolver, a $430 million seven-year term loan B and a $30 million seven-year letter-of-credit term loan C, the source said.

The term loan B and the term loan C will be sold as a strip and have 101 soft call protection for six months, the source continued.

Deutsche Bank Securities Inc., Barclays and Credit Agricole Securities (USA) Inc. are leading the deal that will be used to refinance existing debt and for general corporate purposes.

Empire Generating is the owner of a combined cycle, natural gas fired power plant in Rensselaer, N.Y. with a seasonal weighted capacity of 645 megawatts.

IMG readies deal

IMG will hold a bank meeting on Wednesday to launch a $2.45 billion credit facility, according to a market source.

The facility consists of a $100 million revolver, a $1.9 billion seven-year first-lien term loan and a $450 million eight-year second-lien term loan, the source said.

J.P. Morgan Securities LLC and Barclays are leading the deal that will be used to help fund the acquisition of IMG by Silver Lake Partners and William Morris Endeavor Entertainment LLC from Forstmann Little & Co. and to refinance existing debt.

IMG is a New York-based sports, fashion and media business.

Hudson plans meeting

Hudson Products scheduled a bank meeting for 10 a.m. ET on Tuesday to launch a $300 million credit facility, according to a market source.

The facility consists of a $30 million 41/2-year revolver, and a $270 million five-year covenant-light term loan talked in the Libor plus mid-400 bps area with a 1% Libor floor and 101 soft call protection for six months, the source said.

BNP Paribas Securities Corp. is leading the deal that will be used to refinance existing debt and fund a dividend.

Hudson Products is a Beasley, Texas-based designer and manufacturer of air-cooled heat exchanger equipment to serve the oil, gas and petrochemical processing industries.

Steak n Shake joins calendar

Steak n Shake set a bank meeting for 2 p.m. ET on Wednesday to launch a $220 million term loan B and a new revolver for which a size is still to be determined, according to a market source.

Jefferies Finance LLC is leading the deal.

Proceeds will be used by the restaurant operator to refinance existing debt and fund a dividend to Biglari Holdings Inc.

National Response emerges

National Response plans to hold a bank meeting at 10 a.m. ET on Wednesday to launch a $160 million credit facility, according to a market source.

The facility consists of a $15 million five-year revolver, and a $145 million six-year term loan talked in the Libor plus low-400 bps area with a 1% Libor floor and 101 soft call protection for six months, the source said.

Expected ratings are in the mid-B's, the source added.

BNP Paribas Securities Corp. is leading the deal that will be used to fund two acquisitions.

National Response is a Great River, N.Y.-based provider of United States Oil Pollution Act of 1990 regulatory compliance and emergency response services.

Charlotte Russe on deck

Charlotte Russe scheduled a call at 1:30 p.m. ET on Tuesday to launch a $50 million non-fungible add-on term loan, according to market sources.

Terms on the add-on will be the same as the existing term loan, which places pricing at Libor plus 550 bps with a 1.25% Libor floor, but the original issue discount and amendment fee are not yet available, sources said.

Jefferies Finance LLC and Macquarie Capital are leading the deal that will be used to fund a dividend.

Charlotte Russe is a San Diego-based women's apparel company.

Atlantic Power wraps

In other news, Atlantic Power LP entered into its new $810 million credit facility (Ba3/B+) comprised of a $600 million term loan and a $210 million four-year revolver, according to a news release.

The seven-year term loan B is priced at Libor plus 375 bps with a 1% Libor floor and was sold at a discount of 99. There is 101 soft call protection for one year.

During syndication, the spread on the term loan was reduced from Libor plus 400 bps, and the revolver was upsized from $200 million.

Goldman Sachs Bank USA and Bank of America Merrill Lynch led the term loan, and Goldman, Bank of America, RBC Capital Markets and Union Bank led the revolver.

Proceeds are being used to refinance existing debt, for general corporate purposes, to support collateral support obligations to contract counterparties and to fund a debt service reserve.

Atlantic Power LP, a subsidiary of Atlantic Power Corp., a Boston-based owner and operator of power generation assets, has 1,173 megawatts of hydro, natural gas and generation capacity.

Aramark closes

Aramark Corp., a Philadelphia-based professional services company, completed its refinancing, according to an 8-K filed with the Securities and Exchange Commission.

For the transaction, the company got a $1.4 billion term E due September 2019 priced at Libor plus 250 bps and sold at 993/4, a $2.15 billion seven-year term F priced at Libor plus 250 bps and sold at 991/2, a £115 million seven-year term loan priced at Libor plus 325 bps and sold at 99½ and a €140 million seven-year term loan priced at Euribor plus 275 bps and sold at 99 1/2. All tranches have a 0.75% floor and 101 soft call protection for one year.

During syndication, the spread on the term loan E was increased from Libor plus 225 bps and the offer price firmed at the high end of revised talk of 99¾ to par and wide of initial talk of just par; the offer price on the term loan F finalized at the high end of revised talk of 99½ to 99¾ and wide of initial talk of just 993/4; pricing on the pound term loan firmed at the low end of the Libor plus 325 bps to 350 bps talk; the euro term loan was upsized from €110 million while the spread firmed at the tight end of the Euribor plus 275 bps to 300 bps talk, a C$95 million seven-year term loan was eliminated; and all of the loans saw the call protection extended from six months.

J.P. Morgan Securities LLC, Barclays, Goldman Sachs Bank USA, Wells Fargo Securities LLC and RBC Capital Markets led the deal (B1/BBB-).

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.