Summit, Jarden break; Prestige slides; Station banks hold B-2; RailAmerica ups deadline

By Sara Rosenberg

New York, Feb. 21 - Summit Entertainment LLC and Jarden Corp. hit the secondary market on Tuesday, and Prestige Brands Holdings Inc.'s B loan softened after news emerged of an unsolicited buyout proposal by Genomma Lab Internacional SAB de CV.

Also in trading, Swift Transportation Co.'s term loan weakened on refinancing plans, Allison Transmission Inc. was bid lower with the launch of an extension request, and Mobilitie Investments II LLC saw its term loan B levels tighten as investors are expecting to be paid down with proceeds from an asset sale.

Over in the primary, Station Casinos LLC's lead banks have decided not to sell the company's term loan B-2, which was taking longer to syndicate than the other debt components of the refinancing transaction, and RailAmerica Inc. accelerated the commitment deadline on its loan.

Additionally, Noranda Aluminum Holding Corp. and Latshaw Drilling & Exploration released talk on their new deals with the launch, and WCA Waste Corp. firmed up timing on its credit facility, which is coming with a bigger size than initially expected, and price talk on the transaction began making its way around to investors.

Furthermore, Graphic Packaging International Inc. revealed plans to launch a new credit facility later this week, and TI Group Automotive LLC, RCN, Semtech Corp. and Energy Transfer Equity LP are getting ready to bring term loans to market.

Summit starts trading

Summit Entertainment's $500 million 41/2-year senior secured term loan (B1/B+) freed up on Tuesday afternoon, with levels quoted at 98½ bid, 99½ offered, according to a trader.

Pricing on the loan firmed at Libor plus 550 basis points, the wide side of the Libor plus 525 bps to 550 bps talk, with the 1.25% Libor floor unchanged. The debt was sold at an original issue discount of 98½ and includes 101 soft call protection for one year.

The loan actually closed on Jan. 13, and at that time, pricing was Libor plus 600 bps, but upon launching syndication in early February, price talk came out tighter than the original closing spread.

J.P. Morgan Securities LLC, Barclays Capital Inc. and Jefferies & Co. led the deal that was used to refinance an existing term loan in connection with the company's $412.5 million buyout by Lions Gate Entertainment Corp., a Vancouver, B.C.-based filmed entertainment studio.

Summit Entertainment is a Santa Monica, Calif.-based motion picture studio.

Jarden frees up

Jarden's $150 million incremental term loan B also broke for trading, with levels quoted at 99 7/8 bid, par ¼ offered, according to a trader.

Pricing on the B loan add-on, which was upsized from $125 million, is Libor plus 300 bps with no Libor floor, and it was sold at an original issue discount of 993/4, after tightening from 99½ last week.

The company's $300 million of incremental debt (Ba1) also includes a $150 million term loan that was upsized from $125 million and is priced at Libor plus 225 bps. This tranche was sold with a 25 bps upfront fee.

Spreads on the incremental debt match those on the existing term loan A and term loan B.

Barclays Capital Inc. is the lead arranger on the deal and a joint bookrunner with Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Wells Fargo Securities LLC and SunTrust Robinson Humphrey Inc.

Jarden buying stock

Proceeds from Jarden's new debt, along with cash on hand, will be used for general corporate purposes, including to fund a modified Dutch auction for up to $500 million of its common stock at a price of $32 to $36 per share, increased from an original offer of $30 to $33 per share.

The stock tender offer expires on March 5.

Completion of the tender offer is not conditioned on any minimum number of shares being tendered, but is subject to the satisfaction of certain conditions, including the successful completion of the additional debt financing.

Jarden is a Rye, N.Y.-based consumer products company.

Prestige loan retreats

Prestige Brands' term loan B dipped to par 3/8 bid, par ¾ offered from par 7/8 bid, 101 1/8 offered following news of a buyout proposal from Genomma Lab, according to a trader.

Genomma is seeking to purchase the company for $16.60 per share. The transaction is valued at around $834 million, not including Prestige's net debt.

The proposal is subject to confirmatory due diligence and the negotiation of definitive documentation, as well as receipt of customary corporate and regulatory approvals.

Prestige is an Irvington, N.Y.-based marketer of branded consumer products in the over-the-counter health care and household cleaning industries. Genomma is a Mexico-based pharmaceutical and personal care products company.

Swift slides on refi

Swift Transportation's term loan headed down to par bid, par 3/8 offered from par 3/8 bid, par ¾ offered with news that the company will be launching a refinancing transaction with a call on Wednesday, according to a trader.

The proposed $1.274 billion credit facility consists of a $400 million revolver due Sept. 21, 2016, a $200 million term loan B-1 due Dec. 21, 2016 and a $674 million term loan B-2 due Dec. 15, 2017 and will essentially reprice and extend the maturities of the existing deal, a source said.

The existing deal was obtained in 2010 and is comprised of a $400 million five-year revolver and a $1.07 billion six-year term loan priced at Libor plus 450 bps with a 1.5% Libor floor.

Bank of America Merrill Lynch, Morgan Stanley Senior Funding Inc. and Wells Fargo Securities LLC are the lead arrangers on the new deal.

Swift is a Phoenix-based transportation services company and truckload carrier.

Allison bid falls

Allison Transmission's term loan was quoted at 98¾ bid, 99½ offered, compared to 99 bid, 99½ offered on Friday after an extension proposal was launched to lenders on Tuesday, according to a trader.

Under the request, the company is looking to extend $1 billion to $1.5 billion of the term loan by three years to August 2017 at pricing of Libor plus 350 bps, a source remarked. Non-extended pricing is Libor plus 250 bps.

Commitments are due on Feb. 28.

Citigroup Global Markets Inc., Bank of America Merrill Lynch, Barclays Capital Inc., Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC are the lead banks on the deal.

Allison is an Indianapolis-based automatic transmission company.

Mobilitie levels tighten

Mobilitie's term loan B was quoted at 99¾ bid, par ¼ offered on Tuesday, compared to prior levels of 99½ bid, par ½ offered, as investors are anticipating that the debt will be repaid in full with proceeds from an asset sale to SBA Communications Corp., according to a trader.

Under the agreement, Mobilitie is selling entities owning in excess of 2,300 tower sites and indoor and outdoor distributed antenna systems to SBA for $850 million in cash and 5.25 million shares of class A common stock.

For the transaction, SBA has obtained a $500 million financing commitment from Barclays Bank plc and J.P. Morgan, and will also use cash on hand and borrowings under its existing credit facilities.

Mobilitie is a Newport Beach, Calif.-based owner and constructor of communication towers. SBA is a Boca Raton, Fla.-based provider, owner and operator of wireless communications infrastructure.

Station B-2 being held

Moving to the primary, Station Casinos' $746 million term loan B-2 is "not going to be sold", a market source told Prospect News. This decision was made on the back of syndication wrapping up on the $195 million term loan B-1 and a $625 million bond offering were completed.

Price talk on the B-2 loan was Libor plus 400 bps with an original issue discount in the 85 area.

The company's term loan B-1 is priced at Libor plus 300 bps with step ups to Libor plus 550 bps over time, and was sold at an original issue discount of 89. The discount price firmed last week from earlier guidance in the 90 area.

Also last week, the company set the discount price on its bond offering at 61½ for a yield of 14.942%. The notes pay an initial coupon of 3.65% with step ups until it reaches 9.54% on June 16, 2017.

Station replacing debt

Proceeds from Station Casinos' term loans, a $125 million revolver and bonds will be used to refinance existing debt that was obtained when the company emerged from bankruptcy protection last year.

Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC are the lead banks on the $1.066 billion credit facility.

The facility is due June 17, 2016, but includes two one-year extension options subject to a 100 bps extension fee.

Station Casinos is a Las Vegas-based casino company.

RailAmerica moves deadline

RailAmerica revised the commitment deadline on its well received $585 million seven-year senior secured term loan (B1/BB+) to noon ET on Thursday from Feb. 27, according to a market source.

Price talk on the loan remains at Libor plus 300 bps to 325 bps with a 1% Libor floor and an original issue discount of 99 to 991/2, and there is 101 soft call protection for one year.

Morgan Stanley & Co. LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and BMO Capital Markets Corp. are the lead banks on the deal.

Proceeds will be used to help fund a tender offer that expires on Feb. 29 for up to $444 million of the company's 9¼% senior secured notes. Early tenders for about $513 million of the $518 million notes outstanding have already been received and the company will accept the tendered notes on a pro rata basis.

RailAmerica is a Jacksonville, Fla.-based owner and operator of short-line and regional freight railroads.

Noranda loan guidance

Noranda Aluminum held a bank meeting on Tuesday to kick off syndication on its credit facility, at which time price talk on the $300 million seven-year term loan (Ba2) was announced, according to market sources.

The loan is being shopped at Libor plus 450 bps to 475 bps with a 1.25% Libor floor and an original issue discount of 99 and includes 101 soft call protection for one year, sources said.

Commitments are due on Friday.

Bank of America Merrill Lynch, Citigroup Global Markets Inc., UBS Securities LLC, Barclays Capital Inc., Credit Suisse Securities (USA) LLC and Goldman Sachs & Co. are the lead banks on the deal.

Noranda getting revolver

Along with the term loan, Noranda is getting a new $250 million ABL revolver, sources continued.

Proceeds from the $550 million credit facility will be used to repay an existing term loan B, fund a tender offer for a portion of the company's outstanding senior floating rate notes due 2015, fund a dividend of about $1.25 per share and for general corporate purposes.

Noranda is a Franklin, Tenn.-based producer of value-added primary aluminum products and rolled aluminum coils.

Latshaw talk emerges

Also launching was Latshaw Drilling & Exploration's $100 million ABL revolving credit facility, which is being talked at Libor plus 275 bps, according to a market source.

SunTrust Robinson Humphrey Inc. is the lead bank on the deal that will be used to refinance existing debt and for general corporate purposes.

Latshaw is a Tulsa, Okla.-based driller of oil and natural gas wells.

CommScope launches

As expected, CommScope Inc. launched with a call on Tuesday its $992.5 million term loan B (Ba3) due Jan. 14, 2018 at talk of Libor plus 325 bps with a 1% Libor floor, an original issue discount of 99 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 the company's existing term loan B that was obtained last year at pricing of Libor plus 350 bps with a 1.5% Libor floor and sold at an original issue discount of 991/2.

CommScope is a Hickory, N.C.-based provider of infrastructure services for communication networks.

WCA sets meeting

WCA Waste nailed down timing on its credit facility, scheduling a bank meeting for 2 p.m. ET on Thursday to launch the deal, according to a market source. Previously, it was heard that the meeting would be this week but a specific date had been unavailable.

The deal is coming with a size of $375 million, up from the $325 million amount that the company had disclosed in filings with the Securities and Exchange Commission, as the five-year revolver component has been increased to $100 million from $50 million, the source said.

The facility also provides for a $275 million six-year first-lien term loan

Credit Suisse Securities (USA) LLC and Macquarie Capital are leading the Houston-based non-hazardous solid-waste services company's deal.

WCA floats talk

With firm details on timing and size, WCA released price talk on its revolver and term loan at Libor plus 500 bps with a 1.25% Libor floor, an original issue discount of 981/2, the source continued. The term loan has 101 soft call protection for one year.

Proceeds from the credit facility and shareholder capital will fund the buyout of the company by Macquarie Infrastructure Partners II for $6.50 per share in cash in a transaction valued at about $526 million, refinance existing bank debt and 7½% senior notes due 2019, and provide liquidity.

Total leverage is 4.25 times and there is 50% plus of equity.

A tender offer for the notes expires on March 8, and the size of the term loan will be reduced to the extent that any notes remain in place.

Closing is expected this quarter, subject to stockholder approval, which will be sought at a meeting on March 8. Regulatory approvals have already been received.

Graphic joins calendar

Graphic Packaging will be holding a bank meeting on Friday to launch a proposed $2 billion credit facility that will be used to refinance existing debt, according to a market source.

The facility consists of an $800 million revolver, an $800 million term loan A and a $400 million term loan B, the source said, adding that price talk is not yet available.

Bank of America Merrill Lynch, SunTrust Robinson Humphrey Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. and J.P. Morgan Securities LLC are the lead banks on the deal.

Graphic Packaging is a Marietta, Ga.-based provider of packaging solutions for food, beverage and other consumer products companies.

TI Group loan surfaces

Also coming up is TI Group Automotive's proposed $550 million six-year term loan B, which is scheduled to launch with a bank meeting at 11 a.m. ET on Thursday, according to a market source.

Price talk is not yet out, the source said.

J.P. Morgan Securities LLC is the lead bank on the deal that will be used to refinance an existing senior secured term loan due in 2016 and fund a special one-time dividend.

TI Group is an Auburn Hills, Mich.-based automotive supplier with a focus on fluid storage, transfer and delivery technology.

RCN readies deal

RCN has set a bank meeting for 2 p.m. ET on Thursday to launch a proposed $125 million add-on term loan B due August 2016 that is priced at Libor plus 450 bps with a 2% Libor floor, according to a market source. Original issue discount is not yet available.

The maturity, coupon and floor matches existing term loan B pricing.

SunTrust Robinson Humphrey Inc. and GE Capital Markets are the lead banks on the deal that will be used to fund a dividend.

Total and senior leverage will be 4.2 times, up from current leverage of 3.4 times.

RCN is a Herndon, Va.-based broadband services provider.

Semtech plans loans

Semtech is scheduled to hold a bank meeting on Thursday morning to launch $350 million in new five-year debt that consists of a $100 million amortizing term loan A and a $250 million term loan B, according to a market source.

Jefferies & Co. is the lead bank on the deal that will be used, along with cash on hand, to fund the acquisition of Gennum Corp. for C$13.55 in cash per share, or about C$500 million.

The transaction is subject to the receipt of approval of at least 66 2/3% of votes cast by Gennum shareholders, and approval of the Ontario Superior Court of Justice.

Semtech is a Camarillo, Calif.-based supplier of analog and mixed-signal semiconductors. Gennum is a Burlington, Ont.-based supplier of high speed analog and mixed-signal semiconductors for the optical communications and video broadcast markets,

Energy Transfer coming soon

Energy Transfer Equity has set a bank meeting for Wednesday to launch its proposed up to $2.3 billion senior secured term loan B, according to a market source.

Credit Suisse Securities (USA) LLC, Wells Fargo Securities LLC, BNP Paribas Securities Corp., RBS Securities Inc. and SunTrust Robinson Humphrey Inc. are the lead banks on the deal.

Proceeds will be used to help fund the cash portion of the acquisition of Southern Union Co., and the final size will be determined by how many Southern Union shareholders choose to receive cash in exchange for their shares. The offer price for Southern Union is $44.25 in cash or one common unit per Southern Union share, and up to 60% of the $5.7 billion total consideration will be paid in cash.

Closing is expected in this quarter.

Energy Transfer Equity is a Dallas-based provider of energy-related services. Southern Union is a Houston-based transporter, gatherer, processor and distributor of natural gas.

Presidio fills out

In other news, Presidio Inc.'s $60 million add-on term loan is oversubscribed as Friday's commitment deadline passed, according to a market source, who said the deal will close at initial terms.

Pricing on the loan is Libor plus 550 bps with a 1.75% Libor floor, and it was sold at an original issue discount of 991/2.

Coupon and floor matches the existing term loan B, but when obtained last year, the existing debt was sold at a discount of 981/2.

Barclays Capital Inc. and PNC Capital Markets LLC are the lead banks on the deal that will be used to help fund the acquisition of BlueWater Communications Group, a provider of IT infrastructure services.

Presidio is a Greenbelt, Md.-based provider of advanced technology infrastructure services.

Telx closes

Telx Group said in a news release on Tuesday that it closed on its $75 million incremental term loan (B1/B).

Pricing on the loan is Libor plus 650 bps with a 1.25% Libor floor, in line with existing term loan pricing, and it was sold at an original issue discount of 991/2. By comparison, when the existing loan was obtained last year, it was sold at a discount price of 94.

Morgan Stanley Senior Funding Inc. and TD Securities (USA) LLC led the deal that was used to repay revolver borrowings and for general corporate purposes.

Telx is a New York-based provider of interconnection and colocation facilities.

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