AES, Jason, Remy International, Citco break; Realogy, Consolidated Precision revise deals

By Sara Rosenberg

New York, Feb. 27 - AES Corp.'s term loan B emerged in the secondary market on Wednesday, with levels seen atop its issue price, and Jason Inc., Remy International Inc. and Citco Funding LLC freed up for trading as well.

Over in the primary, Realogy Group LLC upsized its term loan B while firming the discount at the wide end of revised guidance, and the size of its revolver was finalized as well. Consolidated Precision Products Corp. (WPP CPP Holdings LLC) raised pricing on its deal.

Additionally, Hostess Brands (Cakes Business) and Constellium Holdco BV came out with price talk in connection with their launches.

AES frees up

AES' $807 million term loan B due June 1, 2018 freed up for trading on Wednesday, with levels quoted at par ¼ bid, 101 offered, according to a trader.

Pricing on the B loan is Libor plus 275 bps with a 1% Libor floor, which was modified earlier this week from 0.75%. The loan has 101 soft call protection for one year and was issued at par.

Proceeds are being used to reprice an existing term loan B from Libor plus 325 bps with a 1% Libor floor.

Citigroup Global Markets Inc. and Bank of America Merrill Lynch are the lead banks on the deal.

AES is an Arlington, Va.-based generator and distributor of electricity.

Jason hits secondary

Jason's credit facility broke too, with the $225 million six-year term loan quoted at par ¼ bid, par ¾ offered, according to a trader.

Pricing on the term loan is Libor plus 375 bps with a 1.25% Libor floor, and it was sold at an original issue discount of 991/4.

During syndication, pricing firmed at the tight end of the Libor plus 375 bps to 400 bps talk and the discount was revised from 99.

GE Capital Markets is leading the $260 million credit facility (B1/B+), which also includes a $35 million five-year revolver.

Proceeds will be used to refinance existing debt and fund a dividend.

Jason is a Milwaukee-based manufacturing company involved in the seating, finishing, components and automotive acoustics markets.

Remy starts trading

Remy's $300 million term loan B (B1/B+) made its way into the secondary as well, with levels quoted at par bid, par ½ offered, according to a trader.

Pricing on the loan is Libor plus 300 bps with a 1.25% Libor floor, and it was sold at a discount of 993/4. There is 101 soft call protection for six months.

Pricing on the loan came at the tight end of talk of Libor plus 300 bps to 325 bps with a discount of 99½ to 993/4.

Bank of America Merrill Lynch is leading the deal that will be used to refinance an existing term loan B that is priced at Libor plus 450 bps with a 1.75% Libor floor, add cash to the balance sheet and for general corporate purposes.

Remy is a Pendleton, Ind.-based manufacturer, remanufacturer and distributor of starters and alternators for light vehicle and commercial vehicle applications, locomotive products and hybrid electric motors.

Citco tops par

Another deal to begin trading was Citco, with its $80 million add-on senior term loan due 2018 and repriced term loan quoted at par 1/8 bid, par 5/8 offered on the open. It then moved up to par ¼ bid, par ¾ offered, and by the close it had come back in to par 1/8 bid, par 5/8 offered, a trader remarked.

Pricing on the debt is Libor plus 325 bps with a 1% Libor floor, and the add-on was sold at a discount of 99 7/8. The repricing was issued at par.

Recently pricing on the debt was reduced from talk of Libor plus 350 bps to 375 bps and the discount on the add-on was tightened from 991/2.

With the repricing, the company is taking its existing term loan down from Libor plus 425 bps with a 1.25% Libor floor, and proceeds from the add-on will be used to pay a $40 million dividend and place $40 million into Citco Banking Corp.

UBS Securities LLC and Deutsche Bank Securities Inc. are leading the deal.

Citco is a provider of financial services to hedge funds, private equity and real estate firms, institutional banks, companies and high net worth individuals.

BWIC announced

In more secondary happenings, a $273.4 million loan Bid-Wanted-In-Competition came out on Wednesday, and market players are being asked to get their bids in by 10 a.m. ET on Friday, according to a trader.

Some of the larger pieces of debt being offered in the portfolio are Asurion's new first-lien term loan B, DJO Global's term loan B-3, Fortescue Metals Group Ltd.'s term loan B, Getty Images' term loan B, HUB International's extended term loan, Nuveen Investments' extended term loan B and TriZetto Group's term loan B.

All in all, the portfolio includes about 140 issuers, the trader added.

Realogy restructures

Moving to the primary, Realogy lifted its term loan B due 2020 to $1.92 billion from $1.82 billion and set the original issue discount at 99, the high end of revised talk of 99 to 99½ and wide of initial talk of par, according to a market source.

Pricing on the B loan is Libor plus 350 bps with a 1% Libor floor and there is 101 soft call protection for one year. Last week, the spread was increased from talk of Libor plus 300 bps to 325 bps and the call protection was extended from six months.

As for the company's revolver due 2018, the size firmed at to $475 million, versus earlier talk of up to $600 million, the source said.

Comments on documentation are due at noon ET on Thursday, the source added.

J.P. Morgan Securities LLC is leading the now $2,395,000,000 deal (B1/BB-) that will be used to refinance an existing $363 million revolver due April 2016 and a $1.82 billion term loan due October 2016.

Realogy is a Parsippany, N.J.-based provider of real estate brokerage, relocation and settlement services.

Consolidated Precision flexes

Consolidated Precision Products lifted the spread on its $415 million first-lien term loan and a $100 million revolver to Libor plus 375 bps from Libor plus 350 bps, according to a market source.

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

UBS Securities LLC is leading the $515 million credit facility.

Proceeds are being used to reprice an existing term loan from Libor plus 450 bps with a 1.25% Libor floor, and an existing revolver from Libor plus 450 bps.

Consolidated Precision Products is a Pomona, Calif.-based manufacturer of highly engineered components and sub-assemblies, supplying the commercial aerospace, military and industrial markets with small- to large-function critical products.

Hostess sets talk

Hostess Brands held a bank meeting on Wednesday to kick off syndication on its credit facility, and with the launch, price talk on the $450 million seven-year first-lien covenant-light term loan was announced, according to a market source.

The term loan is talked at Libor plus 600 bps to 625 bps with a 1.25% Libor floor and an original issue discount of 981/2, and is non-callable for two years, then at 102 in year three and 101 in year four, the source said.

The company's $510 million credit facility also includes a $60 million ABL revolver.

Lead banks Credit Suisse Securities (USA) LLC and UBS Securities LLC are seeking commitments by March 11.

Proceeds will be used to fund the purchase of the baked snack foods business from Hostess Brands Inc. for $410 million by Apollo Global Management LLC and Metropoulos & Co., which is expected to close by the end of April, subject United States Bankruptcy Court approval and customary conditions.

Hostess Brands is an Irving, Texas-based operator of regional bakeries.

Constellium reveals guidance

Constellium also disclosed talk with launch, with its $360 million seven-year term loan guided at Libor plus 500 bps and its €75 million seven-year term loan guided at Euribor plus 550 bps, according to a market source.

Both term loan have a 1.25% floor and an original issue discount of 99, and are non-callable for one year, then at 102 in year two and 101 in year three, the source said.

Commitments are due on March 8, the source added.

Deutsche Bank Securities Inc., Goldman Sachs & Co. and BNP Paribas Securities Corp. are leading the deal that will be used to refinance existing debt and pay a dividend.

Constellium is a Paris-based designer and manufacturer of aluminum products and components.

Latisys well met

In other news, Latisys Corp.'s $200 million credit facility (B3/B) has received strong interest from investors, resulting in oversubscription ahead of Wednesday's 5 p.m. ET commitment deadline, according to a market source.

The facility consists of a $20 million revolver and a $180 million term loan B.

Talk on the B loan is Libor plus 525 bps to 550 bps with a 1.25% Libor floor, an original issue discount of 99 and 101 soft call protection for one year.

RBC Capital Markets, TD Securities (USA) LLC and SunTrust Robinson Humphrey Inc. are the lead banks on the deal.

Proceeds will be used to refinance existing debt and for general corporate purposes.

Latisys is a provider of data center, managed services and disaster recovery services with facilities located in the Ashburn, Va., Chicago, Denver, and Irvine, Calif., markets.

Mitel closes

Mitel Networks Corp. completed its $320 million credit facility that consists of a $40 million five-year revolver (B1/B+), a $200 million six-year first-lien term loan (B1/B+) and an $80 million seven-year second-lien term loan (Caa1/CCC+), according to a news release.

Pricing on the revolver is Libor plus 575 bps, pricing on the first-lien term loan is Libor plus 575 bps with a 1.25% Libor floor and pricing on the on the second-lien term loan is Libor plus 975 bps with a 1.25% Libor floor. The first-lien loan was sold at an original issue discount of 99.

During syndication, pricing on the first-lien loan firmed at the tight end of the Libor plus 575 bps to 600 bps talk and the discount was revised from 981/2.

Included in the first-lien loan is 101 soft call protection for one year and the second-lien loan is non-callable for one year then at 102 in year two and 101 in year three.

Bank of America Merrill Lynch, RBC Capital Markets LLC and MerchCap Solutions led the deal.

Mitel, a Kanata, Ont.-based provider of business communications and collaboration software and services, used the new credit facility to refinance existing bank debt.

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