RCN breaks; Bluestem tweaks deal; price talk emerges on multiple deals with launches

By Sara Rosenberg

New York, Dec. 3 - RCN Cable (RCN Services Telecom LLC) saw its term loan B free up for trading on Tuesday above its offer price, and a new Bid-Wanted-In-Competition was announced.

Over in the primary, Bluestem Brands Inc. lifted the size of its term loan B, and WTG Holdings, The Brickman Group, Salix Pharmaceuticals Ltd., Open Text Corp., Consolidated Communications Holdings Inc., NPC International Inc., American Gaming Systems, Raven Power Finance LLC, HydroChem (previously known as Aquilex Holdings) and ARC Document Solutions Inc. came out with talk with their launches.

Also, Darling International Inc. set talk ahead of its bank meetings, and Walter Investment Management Corp., Ardagh Group, ION Media Networks Inc., One Call Care Management, Affinity Gaming and FCI emerged with new deal plans.

RCN tops par

RCN Cable's $790 million term loan B hit the secondary market on Tuesday, with levels quoted at par ¼ bid, par ¾ offered, according to sources.

Pricing on the loan is Libor plus 350 basis points, after firming last week at the low end of the Libor plus 350 bps to 375 bps guidance. There is a 1% Libor floor and 101 soft call protection for six months, and the debt was issued at par.

SunTrust Robinson Humphrey Inc., TD Securities (USA) LLC and Credit Suisse Securities (USA) LLC are leading the deal that will be used to reprice an existing term loan B from Libor plus 400 bps with a 1.25% Libor floor.

RCN Cable is a cable provider that services Boston, Chicago, Washington, D.C., Lehigh Valley, Pa., New York City and Philadelphia.

BWIC announced

Also in trading, a $195 million Bid-Wanted-In-Competition surfaced, with market players asked to get their bids in by noon ET on Wednesday, according to a trader.

Some of the names in the portfolio are Allison Transmission Inc., Bankruptcy Management Solutions Inc., First Data Corp., Las Vegas Sands, Sports Authority, Weather Channel Co. and Wendy's.

The portfolio includes about 114 issuers, the trader added.

Bluestem ups loan

Moving to the primary, Bluestem Brands raised its term loan B (B2/B) to $225 million from $200 million, while keeping pricing at Libor plus 650 bps with a 1% Libor floor and an original issue discount of 98, a market source said.

Also, the loan still has 101 soft call protection for one year.

Allocations are expected to go out on Wednesday, the source added.

Wells Fargo Securities LLC and Bank of America Merrill Lynch are leading the deal that will be used to fund a dividend.

Bluestem is an Eden Prairie, Minn.-based multi-brand, online retailer of a broad selection of name brand and private label general merchandise serving low- to middle-income consumers.

WTG sets talk

WTG Holdings held its bank meeting on Tuesday morning, and with the launch, price talk on its first-and second-lien term loans was announced, according to a market source.

The $475 million seven-year covenant-light first-lien term loan (B+) is talked at Libor plus 425 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, the source said.

And, the $105 million eight-year covenant-light second-lien term loan (CCC+) is talked at Libor plus 800 bps with a 1% Libor floor, a discount of 98½ and call protection of 102 in year one and 101 in year two, the source continued.

The company's $655 million credit facility also includes a $75 million revolver (B+).

Commitments are due on Dec. 16.

Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc., RBC Capital Markets, UBS Securities LLC and Goldman Sachs Bank USA are leading the deal that will be used to fund the roughly €640 million acquisition of WTG, which is part of Siemens' water business, by AEA Investors LP.

WTG is a provider of solutions for treating and processing municipal and industrial water and wastewater and related service activities.

Brickman details surface

Brickman revealed guidance on its $1.08 billion senior secured credit facility with its bank meeting, and is asking for commitments by Dec. 13 as closing is targeted for Dec. 18, according to a market source.

The $110 million five-year revolver (B1/B) and the $735 million seven-year first-lien term loan B (B1/B) are talked at Libor plus 300 bps to 325 bps, with the B loan having a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months, the source said.

Meanwhile, the $235 million eight-year second-lien term loan (Caa1/CCC+) is talked at Libor plus 650 bps to 675 bps with a 1% Libor floor, a discount of 99 and hard call protection of 102 in year one and 101 in year two, the source continued.

Morgan Stanley Senior Funding Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, RBC Capital Markets, Mizuho Bank, KKR Capital Markets LLC, Macquarie Capital (USA) Inc., Sumitomo Mitsui and UBS Securities LLC are leading the deal that will be used to help fund the $1.6 billion buyout of the company by KKR from Leonard Green & Partners LP and other shareholders.

Brickman is a Rockville, Md.-based provider of landscape maintenance and snow removal services.

Salix holds meeting

Salix Pharmaceuticals launched with its bank meeting its $1.2 billion six-year covenant-light term loan B with talk of Libor plus 350 bps to 375 bps with a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months, according to a market source.

By comparison, filings with the Securities and Exchange Commission had the term loan expected at Libor plus 375 bps with a 1% Libor floor and 101 soft call protection for six months.

The company's $1.35 billion senior secured credit facility (Ba1/BB), for which commitments are due on Dec. 13, also includes a $150 million five-year revolver.

Jefferies Finance LLC, Fifth Third Securities Inc., PNC Capital Markets LLC, SunTrust Robinson Humphrey Inc. and SMBC are leading the deal that will be used with an expected $750 million notes offering and $800 million of cash to fund the purchase of Santarus Inc. for $32 per share, or $2.6 billion.

Closing is expected in the first quarter of 2014, subject to a minimum tender of at least a majority of Santarus common stock, the expiration or termination of the waiting period under the Hart Scott Rodino Antitrust Improvements Act and other customary conditions.

Salix is a Raleigh, N.C.-based developer and marketer of prescription pharmaceutical products and medical devices. Santarus is a San Diego-based specialty biopharmaceutical company.

Open Text pricing

Open Text released talk of Libor plus 225 bps with a 0.75% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months on its $800 million seven-year senior secured term loan B (BBB) that launched with a morning meeting, according to a market source.

Commitments are due on Dec. 17, the source said.

Barclays and RBC Capital Markets are leading the deal that will be used with $265 million of cash and $100 million of equity to fund the $1,165,000,000 acquisition of GXS Group Inc.

Closing is subject to customary regulatory approvals and conditions.

Open Text is an Ontario-based provider of enterprise information management software that helps companies manage, secure and leverage their unstructured business information. GXS is a Gaithersburg, Md.-based B2B integration services provider.

Consolidated term B terms

Consolidated Communications launched its $910 million seven-year term loan B with talk of Libor plus 350 bps with a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months, according to a market source.

The company's $985 million credit facility (BB-) also includes a $75 million five-year revolver.

Commitments are due on Dec. 12, the source remarked.

Wells Fargo Securities LLC is leading the deal that will be used to refinance existing debt.

Consolidated Communications is a Mattoon, Ill.-based rural local exchange company providing voice, data and video services.

NPC guidance

NPC International launched with a call in the morning its roughly $368 million term loan due Dec. 28, 2018 with talk of Libor plus 300 bps to 325 bps with a 1% Libor floor, a par offer price and 101 soft call protection for six months, according to a market source.

The company's $468 million senior secured credit facility also provides for a $100 million revolver due Dec. 28, 2017.

Barclays and Goldman Sachs Bank USA are leading the deal that will amend and restate, and reprice existing bank debt, including a term loan priced at Libor plus 325 bps with a 1.25% Libor floor.

Commitments/amendment consents are due at noon ET on Monday, the source added.

Net senior secured leverage is 2.3 times, net total leverage is 3.6 times and net rent-adjusted leverage is 4.8 times.

NPC is an Overland Park, Kan.-based Pizza Hut franchisee.

American Gaming launches

American Gaming Systems held a bank meeting to launch a $180 million credit facility (B+) that consists of a $25 million revolver and a $155 million term loan, according to a market source.

The term loan is talked at Libor plus 750 bps to 775 bps with a 1% Libor floor, an original issue discount of 98 and call protection of non-callable for one year, then at 102 in year two and 101 in year three, the source said.

Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Nomura and Credit Suisse Securities (USA) LLC are leading the deal.

Proceeds will be used to help fund the buyout of the company by Apollo.

American Gaming is a Las Vegas-based manufacturer and operator of gaming machines.

Raven Power guidance

Raven Power Finance set talk of Libor plus 425 bps to 450 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year on its $350 million term loan B (B1/BB-) that was presented to lenders in the afternoon, according to a market source.

Commitments are due on Dec. 16, the source said.

Deutsche Bank Securities Inc. and Morgan Stanley Senior Funding Inc. are leading the deal.

Proceeds will be used to refinance existing debt, to fund a distribution to shareholders and for general corporate purposes.

Raven Power is an Austin, Texas-based power company.

HydroChem pricing

HydroChem launched its $50 million six-year revolver and $250 million seven-year term loan B with talk of Libor plus 400 bps to 425 bps, according to a market source.

The revolver has no floor and is offered at 99, and the term loan B has a 1% Libor floor and 101 soft call protection and is offered at 991/2, the source said.

GE Capital Markets is leading the $300 million senior deal.

Proceeds will be used to fund the acquisition of Inland Industrial Services Group LLC, an industrial cleaning company, from Strength Capital Partners LLC and to refinance existing debt.

Closing is expected by year-end.

HydroChem is a provider of industrial cleaning solutions for the petrochemical production, oil refining, power generation, metals and pulp and paper industries.

ARC term B talk

ARC Document Solutions launched during the session its $205 million five-year term loan B (B1/B+) with talk of Libor plus 450 bps with a 1% Libor floor and an original issue discount of 99, according to a market source.

J.P. Morgan Securities LLC and Wells Fargo Securities LLC are leading the deal that will be used to repurchase 10½% senior notes due 2016.

ARC is a Walnut Creek, Calif.-based provider of technology and document-related services.

Darling floats guidance

Darling International released talk on its $1.2 billion seven-year covenant-light term loan B in preparation for its bank meeting in London on Wednesday and in New York on Thursday, according to an 8-K filed with the Securities and Exchange Commission.

The $600 million U.S. tranche of the B loan is talked at Libor plus 250 bps to 275 bps and the $600 million euro-equivalent tranche of the B loan is talked at Euribor plus 275 bps to 300 bps, with both having a 0.75% floor, a discount of 99½ and 101 soft call protection for six months, the filing said.

Commitments are due on Dec. 17 and closing is targeted for January.

The company is also getting a $1 billion revolver and a $350 million term loan A.

J.P. Morgan Securities LLC, BMO Capital Markets and Goldman Sachs Bank USA are leading the B loan. JPMorgan and BMO are leading the revolver and term A.

Proceeds will be used to help fund the acquisition of Vion Ingredients from Vion Holding NV for about €1.6 billion in cash.

Darling is an Irving, Texas-based provider of rendering, recycling and recovery solutions to the food industry. Vion is a Son en Breugel, the Netherlands-based developer and producer of services ingredients from animal origin.

Walter readies deal

Walter Investment set a bank meeting for 11 a.m. ET in New York on Wednesday to launch a $1,625,000,000 credit facility, according to a market source.

The facility consists of a $125 million five-year revolver and a $1.5 billion seven-year first-lien covenant-light term loan, with both tranches talked at Libor plus 375 bps. The term loan is also talked with a 1% Libor floor, a discount of 99 and 101 soft call protection for six months, the source said.

Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc., Bank of America Merrill Lynch and Barclays are the joint bookrunners on the deal and joint lead arrangers with RBS and UBS Securities LLC.

Proceeds, along with $500 million of senior unsecured notes, will be used to refinance existing bank debt, and for general corporate purposes, including additional investments or acquisitions.

Commitments are due on Dec. 16 and closing is targeted for Dec. 19.

Pro forma for the transaction, first-lien debt to adjusted EBITDA is 2.3 times, net first-lien debt to adjusted EBITDA is 1.9 times, total debt to adjusted EBITDA is 3.5 times and net total debt to adjusted EBITDA is 3.1 times.

Walter is a Tampa, Fla.-based asset manager, mortgage servicer and originator.

Ardagh coming soon

Ardagh Group scheduled a bank meeting for 10:30 a.m. ET in New York on Wednesday to launch a $675 million equivalent six-year senior secured term loan B (Ba3/B+) that will have U.S. dollar and euro pieces, according to a market source.

Citigroup Global Markets Inc. is leading the deal.

Proceeds will be used to repay in full the 9¼% first priority senior secured notes due 2016 issued by Ardagh Glass Finance plc and for general corporate purposes.

Ardagh is a Dublin-based supplier of glass and metal packaging.

ION Media joins calendar

ION Media plans to host a call on Wednesday morning to launch a $795 million credit facility (B1/B+) that will be used to refinance existing debt and fund a dividend, according to a market source.

The facility consists of a $75 million five-year revolver, and a $720 million seven-year term loan talked at Libor plus 375 bps to 400 bps with a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months, the source said.

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

ION is a television broadcast network.

One Call add-on

One Call Care Management set a call for Wednesday morning to launch a fungible $395 million add-on first-lien term loan, according to a market source.

Pricing on the first-lien term loan is Libor plus 400 bps with a step-down to Libor plus 375 bps when first-lien senior secured leverage is 4.25 times and a 1% Libor floor. The original issue discount on the add-on is still to be determined, the source said.

Bank of America Merrill Lynch, Deutsche Bank Securities Inc., RBC Capital Markets, Morgan Stanley Senior Funding Inc., Jefferies Finance LLC and Guggenheim are leading the deal that will be used to help fund the acquisition of Align Networks, a workers' compensation physical medicine network, from General Atlantic and The Riverside Co.

One Call is a Parsippany, N.J.-based provider of specialized cost containment services to the workers' compensation industry.

Affinity repricing

Affinity Gaming will hold a call at 2:30 p.m. ET on Wednesday to launch a $191,732,336 first-lien term loan due Nov. 9, 2017 that is talked at Libor plus 325 bps with a 1% Libor floor, a par offer price and 101 soft call protection for six months, according to a market source.

Proceeds will be used to reprice an existing term loan from Libor plus 425 bps with a 1.25% Libor floor.

Credit Suisse Securities (USA) LLC is leading the deal for which commitments are due on Dec. 10, the source added.

Affinity Gaming is a Las Vegas-based gaming company.

FCI on deck

FCI set a bank meeting for Thursday morning to launch a $300 million six-year covenant-light term loan B, according to sources.

Goldman Sachs Bank USA, Bank of America Merrill Lynch, HSBC Securities (USA) Inc. and J.P. Morgan Securities LLC are leading the deal that will be used to fund a dividend.

FCI is a manufacturer of connectors for use in electronic, micro-connector, electrical and automotive applications.

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