CommScope, Go Daddy break; Vantiv, Rexnord, ATP Oil & Gas, BJ's Wholesale revise deals

By Sara Rosenberg

New York, March 6 - CommScope Inc.'s new term loan B hit the secondary market on Tuesday morning, with levels seen above its original issue discount price, and Go Daddy Operating Co. LLC's term loan freed up as well.

Over in the primary, Vantiv LLC made changes to its term loan B, lowering the coupon and tightening the original issue discount as a result of strong demand, and Rexnord LLC trimmed pricing as well as discount on its U.S. B loan.

In addition, ATP Oil & Gas Corp. upsized its term loan while flexing the spread downwards, and BJ's Wholesale Club Inc. firmed pricing on its term loan at the low end of guidance and added a leverage-based pricing step-down.

Also, Yankee Candle Co. Inc. and Oberthur Technologies came out with price talk on their new deals in connection with their launches during the session.

Furthermore, Rovi Corp. began circulating guidance on its proposed term loan B in preparation for its upcoming launch, Covanta Energy Corp. nailed down timing on the launch of its credit facility and LPL Financial LLC surfaced with refinancing plans.

CommScope starts trading

CommScope's new $992.5 million term loan B (Ba3/BB) due Jan. 14, 2018 broke for trading on Monday, with levels quoted at 99¼ bid, 99¾ offered on the open and then it moved up to 99 5/8 bid, par 1/8 offered, according to a trader.

Pricing on the loan firmed in line with talk at Libor plus 325 basis points 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.

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

Proceeds are being 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.

Go Daddy frees up

Go Daddy's $748 million senior secured term loan began trading too, with levels seen at par bid, par ¼ offered, according to a trader.

Pricing on the loan is Libor plus 425 bps with a 1.25% Libor floor. There is 101 soft call protection for one year.

Barclays Capital Inc., Deutsche Bank Securities Inc. and RBC Capital Markets LLC are the lead banks on the deal that is being used to reprice/refinance an existing term loan obtained last year at pricing of Libor plus 575 bps with a 1.25% Libor floor. The debt had been sold at an original issue discount of 93.

Lenders under the existing term loan are getting repaid at 101 due to the presence of soft call protection.

Go Daddy is a Scottsdale, Ariz.-based provider of web hosting and domain names.

Vantiv flexes lower

Moving to the primary, Vantiv reworked its up to $350 million seven-year term loan B, cutting pricing to Libor plus 275 bps from Libor plus 300 bps and revising the discount to 99½ from 99, while leaving the 1% Libor floor intact, according to a source. There is 101 soft call protection for one year.

Final sizing of the term loan B will be determined at the closing date. At launch, it was described as being $250 million to $350 million.

The company's up to $1.6 billion facility (Ba2) also includes a $250 million five-year revolver and a $1 billion five-year term loan A, both at Libor plus 225 bps. The revolver has a 50 bps undrawn fee.

Recommitments were due by 5 p.m. ET on Tuesday.

J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Credit Suisse Securities (USA) LLC and Fifth Third Securities Inc. are leading the deal that will be used to refinance existing debt.

Vantiv is a Cincinnati-based integrated payment processor for merchants and financial institutions.

Rexnord revises pricing

Rexnord made a new round of changes to its term loan, reducing spread on the $850 million U.S. piece to Libor plus 400 bps from Libor plus 425 bps and tightening the original issue discount to 99½ from 99, while keeping the 1% Libor floor intact, according to a market source.

The company's $950 million six-year covenant-light first-lien term loan also includes a $100 million euro equivalent tranche that was added recently. Pricing on the euro debt was left unchanged at Euribor plus 425 bps with a 1% floor and an original issue discount of 99, the source said.

However, as part of the changes, the entire term loan now has 101 soft call protection for six months, instead of having the call protection for one year, the source added.

Recommitments were due on Tuesday.

Rexnord getting revolver

Rexnord's $1.13 billion credit facility (Ba3/BB-), which will be used to refinance existing term loan and revolver debt, also includes a $180 million five-year revolver.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Bank of America Merrill Lynch, Barclays Capital Inc., Goldman Sachs & Co., BMO Capital Markets Corp. and Sumitomo Mitsui Banking Corp. are the lead banks on the deal.

Rexnord is a Milwaukee-based industrial company comprised of two strategic platforms: process & motion control and water management.

ATP tweaks deal

Continuing on the topic of revisions, ATP Oil & Gas upsized its incremental first-lien senior secured term loan to $155 million from $140 million and cut pricing to Libor plus 725 bps from Libor plus 750 bps, according to a market source, who said the 1.5% Libor floor and original issue discount of 99 were left unchanged, the source said.

In connection with the add-on, the company's existing $208.2 million fixed-rate term loan will be converted into a floating-rate loan at the same terms as the new debt, the source remarked.

Recommitments were due at 3 p.m. ET on Tuesday.

Credit Suisse Securities (USA) LLC is the lead bank on the add-on deal that will be used for general corporate purposes.

ATP Oil & Gas is a Houston-based offshore oil and gas development and production company.

BJ's finalizes coupon

BJ's Wholesale set pricing on its $10.75 billion first-lien term loan at Libor plus 400 bps, the low end of the Libor plus 400 bps to 425 bps talk, and added a step-down to Libor plus 375 bps at first-lien leverage of 3.0 times, according to a market source.

As before, the loan has a 1.25% Libor floor and 101 soft call protection for one year.

Deutsche Bank Securities Inc. is the lead on the deal that will be used to reprice an existing first-lien term loan from Libor plus 575 bps with a 1.25% Libor floor.

When obtained in 2011, the existing loan was sold at a discount of 95 and it included 101 soft call protection for one year, which lenders are receiving with this repricing.

BJ's is a Westborough, Mass.-based operator of warehouse clubs.

Yankee Candle launches

In more primary happenings, Yankee Candle held its bank meeting on Tuesday, and with the launch, price talk surfaced on the $580 million seven-year term loan B (Ba3/BB-), according to a market source.

The term loan B is talked at Libor plus 400 bps to 425 bps with a 1.25% Libor floor and an original issue discount of 99 and includes 101 soft call protection for one year, the source said.

The company's $755 million senior secured credit facility also provides for a $175 million five-year asset-based revolver.

Bank of America Merrill Lynch and Barclays Capital Inc. are leading the deal that will be used to refinance existing bank debt and redeem $180 million of 8½% senior notes due 2015.

Yankee Candle is a South Deerfield, Mass.-based designer, manufacturer, wholesaler and retailer of scented candles.

Oberthur reveals guidance

Another deal to launch was Oberthur Technologies, and with the meeting, investors were told that the $250 million term loan B is talked at Libor plus 500 bps with a 1.25% Libor floor and an original issue discount of 97 to 971/2, according to a market source.

The U.S. term loan B due November 2018 is being carved out of a €410 million term loan B.

Lead banks, RBC Capital Markets LLC, Barclays Capital Inc. and Lloyds Securities LLC, are seeking commitments by March 19.

Proceeds will be used to refinance some debt that was used for the company's buyout last year by Advent International.

Oberthur Technologies is France-based provider of security and identification services based on smart-card technologies.

Rovi floats talk

Rovi began distributing price talk of Libor plus 300 bps with a 1% Libor floor and an original issue discount of 99 on its proposed $500 million to $550 million new term loan B that will launch with a conference call at 2 p.m. ET on Thursday, according to market sources.

The company will also be launching a $200 million to $250 million incremental term loan A.

J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC are the joint lead arrangers and bookrunners on the deal, with Bank of America Merrill Lynch a bookrunner too.

Proceeds will be used to refinance the company's existing term loan B and provide balance sheet flexibility.

Rovi is a Santa Clara, Calif.-based provider of digital entertainment services, including interactive program guides, licensing technology, media recognition technology and content protection.

Covanta timing emerges

Covanta Energy released timing on its proposed $1.2 billion credit facility as a bank meeting has been set for Thursday afternoon, a market source said.

The facility consists of a $900 million five-year revolver and a $300 million seven-year term loan B, which is in line with the structure that the company outlined in an 8-K filing last week.

Bank of America Merrill Lynch, Morgan Stanley & Co. LLC, Barclays Capital Inc., Credit Agricole Securities (USA) Inc. and J.P. Morgan Securities LLC are the lead banks on the deal that will be used to refinance an existing credit facility.

Covanta is a Morristown, N.J.-based owner and operator of energy-from-waste and power generation projects.

LPL readies launch

LPL Financial announced plans to repay its existing senior secured credit facility, and will launch a proposed $1.6 billion credit facility with a bank meeting at 2 p.m. ET on Wednesday for the refinancing, according to sources.

The facility, which is expected to close in the second quarter, consists of a $250 million undrawn revolver and $1.35 billion in new term loans, sources said.

Specifically, proceeds will be used to replace an existing $163.5 million revolver and $1.33 billion in term loan borrowings, as well as to pay related refinancing expenses.

Bank of America Merrill Lynch and Goldman Sachs & Co. are the joint lead arrangers and bookrunners with Morgan Stanley & Co. LLC and J.P. Morgan Securities LLC.

LPL Financial is a broker-dealer, a RIA custodian and a consultant to retirement plans with headquarters in Boston, Charlotte, N.C., and San Diego.

Energy Transfer well met

Energy Transfer Equity LP's $2.25 billion five-year senior secured term loan B (Ba2/BB-) has already reached oversubscription, with lenders still having until Friday to place their orders, according to a market source.

The term loan is talked at Libor plus 350 bps with a 1% Libor floor and an original issue discount of 981/2, and includes 101 soft call protection for one year.

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.

Total debt to 2011 adjusted EBITDA is 3.9 times, and 2011 EBITDA to interest expense is 3.9 times.

Closing is expected the week of March 19.

Energy Transfer acquisition

Proceeds from Energy Transfer's term loan B will be used to help fund the purchase of Southern Union Co. for $44.25 in cash or one common unit per Southern Union share, repay revolver borrowings and for general partnership purposes.

The final amount of the term loan B will be determined by how many Southern Union shareholders elect to receive cash in exchange for their shares, but it is expected that the B loan size will range from $1.67 billion to $2.25 billion, the company said in a recent 8-K filing. Up to 60% of the $5.7 billion total consideration will be paid in cash.

Other funds for the transaction will come from a portion of the proceeds from Southern Union's contribution of its 50% interest in Citrus Corp. to Energy Transfer Partners LP in exchange for $2 billion.

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.

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