Ocwen breaks; FairPoint inches up on acquisition news; Nord Anglia, BWAY updates emerge

By Sara Rosenberg

New York, Dec. 5 – Ocwen Financial Corp.’s term loan hit the secondary market on Monday above its original issue discount, and FairPoint Communications Inc.’s term loan was higher with news that the company is being acquired by Consolidated Communications Holdings Inc.

Moving to the primary market, Nord Anglia Education Inc. changed the spread and issue price on its term loan repricing transaction, and BWAY Holding Co. finalized pricing on its term loan B extension and repricing at the tight end of guidance.

Also, Prime Security Services Borrower LLC (ADT Corp.) and PSAV (AVSC Holding Corp.) released price talk with launch, EFS Cogen Holdings I LLC (Linden Cogeneration Power Complex) came to market with a repricing, and Asurion LLC launched a new loan.

In addition, Information Resources Inc., DigitalGlobe Inc., Vistra Operations Co. LLC, NFP Corp., Atkore International Inc. and Minimax Viking joined this week’s new issue calendar.

Ocwen frees up

Ocwen Financial’s $335 million four-year term loan B (B2/BB-/B-) began trading on Monday, with levels quoted at 98˝ bid, 99˝ offered on the break and then it moved up to 99 3/8 bid, par 3/8 offered, according to a trader. Then, by late afternoon, a second trader was seeing the loan at par ˝ bid, par 7/8 offered.

Pricing on the term loan B is Libor plus 500 basis points with a 1% Libor floor, and it was sold at an original issue discount of 98. The debt has 101 soft call protection for six months.

During syndication, pricing on the term loan was lowered from Libor plus 575 bps and the discount was revised from 97.

Barclays, J.P. Morgan Securities LLC, Nomura and Credit Suisse Securities (USA) LLC are leading the deal that is being used to refinance an existing term loan, to pay fees and expenses and for general corporate purposes.

Closing was targeted for Monday, another source added.

Ocwen is a West Palm Beach, Fla.-based non-bank mortgage servicer and originator.

FairPoint gains

FairPoint Communications’ term loan rose to par 5/8 bid, 101 5/8 offered from par 3/8 bid, 101 3/8 offered after it was announced that the company is being acquired by Consolidated Communications, a trader said.

Under the agreement, FairPoint shareholders will receive a fixed exchange ratio of 0.73 shares of Consolidated Communications common stock for each share of FairPoint common stock. The all-stock merger transaction is valued at about $1.5 billion, including debt.

As of Sept. 30, FairPoint had net debt of around $887 million.

Pro forma for the transaction, net leverage will be 3.8 times.

Closing is expected by mid-2017, subject to federal and state regulatory approvals, the approval of both companies’ shareholders and other customary conditions.

Consolidated plans loans

In order to refinance FairPoint debt and pay fees and expenses associated with the transaction, Consolidated Communications expected to get new term loan debt and has received a commitment for an $865 million seven-year senior secured incremental term loan and a $70 million senior unsecured term loan.

Consolidated Communications, however, intends to seek an amendment to its existing credit facility to allow for the $70 million to be incurred as a senior secured incremental term loan, which would increase the incremental senior secured term loan amount to $935 million and cancel plans for the unsecured term loan.

Morgan Stanley Senior Funding Inc., MUFG, TD Securities (USA) LLC and Mizuho Bank Ltd. are leading the new term loan debt.

FairPoint is a Charlotte, N.C.-based provider of advanced data, voice and video technologies. Consolidated Communications is a Mattoon, Ill.-based broadband and business communications provider.

Nord revises deal

In other happenings, Nord Anglia modified pricing on its $885.8 million first-lien term loan B (B1/B) due March 2021 to Libor plus 350 bps from Libor plus 325 bps and tightened the issue price to par from 99.875, according to a market source.

As before, the term loan has a 1% Libor floor and 101 soft call protection for six months.

Recommitments were due at 1 p.m. ET on Monday, the source said.

Goldman Sachs Bank USA, J.P. Morgan Securities LLC and HSBC Securities (USA) Inc. are leading the deal that will be used to reprice an existing term loan from Libor plus 400 bps with a 1% Libor floor.

Due to a principal paydown last week, the size of the term loan is now a bit smaller than the $888 million amount outlined at the launch of the repricing, the source added.

Nord Anglia is a Hong Kong-based operator of schools.

BWAY firms spread

BWAY Holding set pricing on the extension and repricing of its $1.24 billion senior secured term loan B (B2) due August 2023 at Libor plus 375 bps, the low end of the Libor plus 375 bps to 400 bps talk, according to a market source.

As before, the loan has a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

Bank of America Merrill Lynch is leading the deal that will be used to extend the term loan B from 2020 and reprice it from Libor plus 450 bps with a 1% Libor floor.

BWAY is an Atlanta-based supplier of general line rigid containers.

Prime Security sets talk

Prime Security Services held its lender call on Monday, launching its $2,763,000,000 first-lien senior secured covenant-light term loan due May 2, 2022 with talk of Libor plus 325 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, a market source remarked.

Commitments are due at noon ET on Friday.

Barclays, Deutsche Bank Securities Inc. and RBC Capital Markets LLC are leading the deal that will be used to reprice the existing first-lien term loan due 2022 and concurrently reallocate the outstanding balance of the first-lien term loan due 2021 to the 2022 tranche.

The 2021 and 2022 term loans are currently priced at Libor plus 375 bps with a 1% Libor floor.

Prime Security is a security services company.

PSAV guidance

PSAV came out with talk of Libor plus 350 bps with a 1% Libor floor and an original issue discount of 99.027 to 99.5 on its $80 million add-on senior secured term loan B (B1/B+) due January 2021 that launched with an afternoon call, a source said.

Commitments are due at 3:30 p.m. ET on Thursday, the source added.

Goldman Sachs Bank USA, Barclays, Macquarie Capital (USA) Inc. and Morgan Stanley Senior Funding Inc. are leading the deal that will be used to fund a distribution to equity holders.

PSAV is a Long Beach, Calif.-based event technology provider.

EFS holds call

EFS Cogen Holdings hosted a lender call at 11 a.m. ET to launch a repricing of its $1,018,692,351 senior secured first-lien term loan B due June 28, 2023 that is talked at Libor plus 350 bps to 375 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Consents/commitments are due at noon ET on Friday, the source said.

Morgan Stanley Senior Funding Inc. and Citigroup Global Markets Inc. are leading the deal.

When syndicated in June, the term loan was done at pricing of Libor plus 425 bps with a 1% Libor floor.

EFS Cogen is the owner of a natural gas-fired combined-cycle cogeneration project in New Jersey.

Asurion launches

Asurion launched a $1.21 billion covenant-light term loan B-2 due July 2020 that is talked at Libor plus 325 bps with a 0.75% Libor floor, an issue price of 99.75 to par and 101 soft call protection for six months, a market source said.

Commitments are due at 5 p.m. ET on Thursday, the source added.

Bank of America Merrill Lynch, Morgan Stanley Senior Funding Inc., Barclays, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Goldman Sachs Bank USA are leading the deal that will be used to refinance the existing term loan B-1 priced at Libor plus 375 bps with a 1.25% Libor floor and to reprice the existing term loan B-2 from Libor plus 350 bps with a 0.75% Libor floor.

Asurion is a Nashville-based provider of technology protection services.

Information Resources on deck

Also on the new deal front, Information Resources set a lenders’ presentation for 11 a.m. ET on Tuesday to launch a $1.33 billion senior secured credit facility, a market source remarked.

The facility consists of an $80 million revolver, a $900 million first-lien term loan and a $350 million second-lien term loan, the source added.

Morgan Stanley Senior Funding Inc., Jefferies Finance LLC and Nomura America Securities LLC are leading the deal that will be used to refinance the company’s existing credit facilities, distribute a dividend to the equity holders, and pay related fees and expenses.

Information Resources is a Chicago-based provider of big data, predictive analytics and forward-looking insights that help companies grow their businesses.

DigitalGlobe joins calendar

DigitalGlobe scheduled a bank meeting for 2 p.m. ET in New York on Tuesday to launch a $1,475,000,000 credit facility, a source said.

The facility consists of a $200 million revolver and a $1,275,000,000 term loan B, the source added.

Barclays is the lead left bookrunner on the deal that will be used to pay down revolver borrowings, to refinance a term loan B due 2020 and 5.25% notes due 2021, and to pay related fees and expenses.

DigitalGlobe is a Westminster, Colo.-based provider of Earth imaging and geospatial solutions.

Vistra Operations coming soon

Vistra Operations emerged with plans to hold a lender call at 11 a.m. ET on Tuesday to launch a $1 billion seven-year covenant-light term loan B-2 and a $110 million upsizing to its existing revolving credit facility, according to a market source.

Deutsche Bank Securities Inc., Barclays, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, RBC Capital Markets, Natixis and UBS Investment Bank are leading the deal that will be used to fund a special dividend to the common shareholders of Vistra Energy Corp.

Including the add-on, the revolver will total $860 million, the source said.

Vistra, formerly known as Texas Competitive Electric Holdings Co. LLC, is a Dallas-based power generator and retail electric provider.

NFP schedules launch

NFP set a lender call for Tuesday to launch a $1,125,000,000 seven-year term loan talked at Libor plus 375 bps to 400 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, according to a market source.

Bank of America Merrill Lynch is the left lead on the deal, which will be used to refinance and extend an existing term loan priced at Libor plus 350 bps with a 1% Libor floor.

On Monday, the company announced that HPS Investment Partners LLC has agreed to make a substantial minority investment in NFP.

Upon the closing of the transaction, Madison Dearborn Partners, which took a controlling equity ownership position in NFP in 2013, will maintain a controlling stake in the company, alongside management and employees.

Closing on the investment is expected in the first quarter of 2017, subject to customary conditions.

NFP is an insurance broker and consultant.

Atkore refinancing

Atkore International intends to hold a lender call at 10 a.m. ET on Thursday to launch a $500 million seven-year covenant-light first-lien term loan that will refinance existing first- and second-lien term loans, a market source remarked.

The term loan has 101 soft call protection for six months, the source added.

Deutsche Bank Securities Inc. is the left bookrunner on the deal.

Atkore is a Harvey Ill.-based Electrical Raceway and Mechanical Products & Solutions provider.

Minimax readies deal

Minimax Viking will hold a lender call at 11 a.m. ET on Tuesday to launch a €327 million equivalent U.S. term loan B and a €304 million term loan B that will amend and extend its existing term loans, a market source said.

Talk on the U.S. term loan B is Libor plus 275 bps with a 0.75% Libor floor and talk on the euro term loan B is Libor plus 300 bps with no floor, with both tranches offered at an original issue discount of 99.5 to 99.75, the source continued.

The loans have 101 soft call protection for six months.

The extension will push out the maturities on the term loan B’s by three years to August 2023.

Commitments are due at 5 p.m. ET on Dec. 16, the source added.

Deutsche Bank Securities Inc. is the left lead on the deal.

Minimax Viking is a fire protection company with headquarters in Bad Oldesloe in Schleswig-Holstein, Germany.

Save-A-Lot closes

In other news, the buyout of Save-A-Lot by Onex Corp. from Supervalu Inc. for $1,365,000,000 in cash has been completed, according to a news release.

To help fund the transaction, Save-A-Lot got a new $990 million credit facility that includes a $250 million five-year ABL revolver and a $740 million seven-year senior secured covenant-light term loan B (B2/B).

Pricing on the term loan B is Libor plus 600 bps with a 1% Libor floor, and it was sold at an original issue discount of 97. The debt has 101 soft call protection for one year.

During syndication, pricing on the term loan B firmed at the high end of the Libor plus 575 bps to 600 bps talk, the discount widened from 99 and the call protection was extended from six months.

Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Barclays, Deutsche Bank Securities Inc. and BMO Capital Markets Corp. led the deal.

Secured and total leverage is around 3.5 times.

Save-A-Lot is a hard-discount grocery retailer.

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