Web.com, Latisys, Novelis, Avis free up; Veyance Technologies, RegionalCare revise deals

By Sara Rosenberg

New York, March 4 - Web.com Group Inc. set the coupon and offer price on its loan at the high side of guidance, extended the soft call protection and then hit the secondary market by late afternoon on Monday, and Latisys Corp., Novelis Inc. and Avis Budget Car Rental LLC broke as well.

In more loan happenings, Veyance Technologies Inc. (formerly Goodyear Engineered Products) finalized the spread on its term loan at the wide end of revised talk and widened the original issue discount, and RegionalCare Hospital Partners Inc. raised pricing on its loan while revising the call protection.

Also, Milacron LLC released talk on its term loan B with launch, Covanta Energy Corp. brought a repricing to market, CBRE Services Inc., the Container Store Inc., Edwards Group and BBB Industries LLC emerged with new deal plans, and McGraw-Hill Global Education Holdings LLC revealed timing and structure on its buyout deal.

Web.com breaks

Web.com's $660 million term loan B (B1/B) due October 2017 began trading late Monday, with levels quoted at par bid, par ¾ offered, according to a trader.

Earlier in the session, pricing on the loan firmed at Libor plus 350 basis points, the wide end of the Libor plus 325 bps to 350 bps talk, and the offer price was set at 993/4, the high side of the 99¾ to par talk, a source said, adding that the 1% Libor floor was left intact.

Also, the 101 soft call protection on the loan was extended to 18 months from six months, the source remarked.

J.P. Morgan Securities LLC, Deutsche Bank Securities Inc., SunTrust Robinson Humphrey Inc., Goldman Sachs Lending Partners, Citigroup Global Markets Inc. and Wells Fargo Securities LLC are leading the deal that will refinance a roughly $628 million first-lien term loan priced at Libor plus 425 bps with a 1.25% Libor floor and repay in full a roughly $32 million second-lien term loan.

Web.com is a Jacksonville, Fla.-based provider of internet services and online marketing services for small businesses.

Latisys tops par

Latisys' credit facility also made its way into the secondary market, with the $180 million term loan B quoted at par 1/8 bid, par 5/8 offered, according to a trader.

Pricing on the loan is Libor plus 525 bps with a 1.25% Libor floor, and it was sold at a discount of 991/2. There is 101 soft call protection for one year.

During syndication, pricing on the B loan firmed at the tight end of the Libor plus 525 bps to 550 bps talk and the discount was revised from 99.

In addition to the term loan B, the company's $200 million credit facility (B3/B) includes a $20 million revolver.

RBC Capital Markets, TD Securities (USA) LLC and SunTrust Robinson Humphrey Inc. are leading the transaction that 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.

Novelis starts trading

Novelis' term loan broke too, with levels quoted at par ¼ bid, par ¾ offered, a trader remarked.

Pricing on the loan is Libor plus 275 bps with a 1% Libor floor, and it was sold at par. There is 101 soft call protection for one year.

During syndication, the Libor floor on the loan firmed at the wide end of the 0.75% to 1% talk.

Proceeds are being used to reprice an existing term loan from Libor plus 300 bps with a 1% Libor floor.

Bank of America Merrill Lynch is the lead bank.

Novelis is an Atlanta-based aluminum-rolled products and beverage can recycling company.

Avis frees up

Another deal to start trading was Avis' $900 million term loan B (Ba1/BB) due March 2019, with levels quoted at par ¼ bid, 101 offered, according to a trader.

Pricing on the loan is Libor plus 275 bps with a 1% Libor floor, and it was issued at par, There is 101 soft call protection for one year.

The Libor floor can step-down after six months from closing to 0.75% if corporate credit ratings are Ba3 or BB-, a feature that was added last week to the loan. Current corporate ratings are B1/B+.

J.P. Morgan Securities LLC and Citigroup Global Markets Inc. are leading the deal that will be used with €250 million of notes to refinance an existing term loan C due March 2019 and to fund the acquisition of Zipcar Inc. for $12.25 per share in cash, or about $500 million.

Closing on the acquisition is expected in the spring, subject to approval by Zipcar shareholders and other customary conditions.

Avis is a Parsippany, N.J.-based provider of vehicle rental services. Zipcar is a Cambridge, Mass.-based car sharing network. Following the acquisition, Zipcar will move its headquarters to Boston.

Epicor bid up

In more trading news, Epicor Software Corp.'s $860 million term loan due May 16, 2018 was quoted at par ½ bid on Monday, up from the par 3/8 bid level that was seen when it broke late Friday, according to a trader.

Pricing on the loan is Libor plus 325 bps with a 1.25% Libor floor, and it was sold at par, after firming recently at the tight end of the 99¾ to par talk. There is 101 soft call protection for six months.

Proceeds are being used to reprice an existing term loan from Libor plus 375 bps with a 1.25% Libor floor.

Bank of America Merrill Lynch and RBC Capital Markets are the lead banks on the deal.

Epicor is a Dublin, Calif.-based provider of enterprise business software services.

Veyance tweaks deal

Over in the primary, Veyance came out with a new round of update on its $1,125,000,000 first-lien covenant-light term loan due September 2017, setting pricing at Libor plus 400 bps with a 1.25% Libor floor and an original issue discount of 981/2, according to a market source.

On Friday, the spread on the loan had been revised to talk of Libor plus 375 bps to 400 bps from initial talk at launch of Libor plus 325 bps.

And, prior to now, the discount on the loan had been talked at 99, the source said.

The loan still has 101 soft call protection for one year.

Credit Suisse Securities (USA) LLC, Barclays, Deutsche Bank Securities Inc. and Goldman Sachs & Co. are leading the $1.2 billion credit facility (B2/B), which also includes a $75 million revolver.

Allocations are expected to go out later this week, the source added.

Proceeds will be used to refinance an existing first- and second-lien credit facility.

Veyance is a Fairlawn, Ohio-based manufacturer and seller of engineered rubber products, including conveyor belts, industrial hoses and power transmission products.

RegionalCare reworks loan

RegionalCare raised the spread on its $291.3 million senior secured term loan due November 2018 to Libor plus 575 bps from talk of Libor plus 475 bps to 500 bps and extended the 101 soft call protection to one year from six months, according to a market source.

The loan still has a 1.25% Libor floor and an original issue discount of 993/4.

However, the accordion was changed to 4.25 times pro forma first-lien secured leverage plus an additional $20 million, revised from 4.25 times first-lien leverage plus an additional $40 million, and the total net leverage covenant will be reset to 6.75 times with step-downs over times, instead of 7 times with step-downs over time, the source continued.

Recommitments are due at 5 p.m. ET on Tuesday.

Citigroup Global Markets Inc. is leading the deal that will be used to refinance an existing term loan that is priced at Libor plus 650 bps with a 1.5% Libor floor.

RegionalCare is a Brentwood, Tenn.-based owner and operator of hospitals.

Milacron discloses talk

Milacron held its bank meeting on Monday morning, and with the event, talk on its $245 million seven-year term loan B (B1/B) came out at Libor plus 325 bps with a 1.25% 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 leading the deal.

Proceeds will help fund the acquisition of Mold-Masters for an enterprise value of C$975 million from 3i Group plc.

Closing is expected by April, subject to certain regulatory approvals.

Milacron is a Cincinnati-based plastics processing solutions provider. Mold-Masters is a Georgetown, Canada-based designer and manufacturer of hot runner systems, temperature controllers and auxiliary equipment for the plastic industry.

Covanta repricing

Covanta Energy held a call, launching a repricing of its term loan B that is talked at Libor plus 275 bps with a 0.75% Libor floor and 101 soft call protection for six months, sources said.

By comparison, current pricing is Libor plus 300 bps with a 1% Libor floor.

Bank of America Merrill Lynch is leading the deal.

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

Jarden launches

Jarden Corp. launched its $1,486,000,000 senior secured credit facility in the morning, and set a commitment deadline of March 14 on the deal, according to a market source.

As previously reported, the facility consists of a $250 million revolver due March 31, 2016, a $596 million term loan A due March 31, 2016 and a $640 million term loan B due March 31, 2018.

The revolver and term loan A are talked at Libor plus 200 bps, with step-downs based on leverage, and the term loan B is talked at Libor plus 250 bps to 275 bps with no Libor floor, a par offer price and 101 soft call protection for six months, the source continued.

Barclays, J.P. Morgan Securities LLC and Wells Fargo Securities LLC are leading the deal that will be used to refinance/reprice an existing credit facility. The current revolver and term loan A mature in March 2016 and are priced at Libor plus 225 bps and the current term loan B matures in January 2017 and is priced at Libor plus 300 bps.

Jarden is a Rye, N.Y.-based provider of diversified niche consumer products, small appliances, household products, fishing and outdoor products and sports equipment.

CBRE coming soon

CBRE Services set a bank meeting for 10:30 a.m. ET in New York on Wednesday to launch a $1,915,000,000 credit facility that will be used to refinance existing debt, according to a market source.

The facility consists of a $1.2 billion five-year revolver and a $500 million five-year term loan A, both talked at Libor plus 200 bps with a 30 bps to 50 bps upfront fee, and a $215 million eight-year term loan B talked at Libor plus 325 bps with an original issue discount of 991/2, the source said. Existing revolver lenders will receive a 25 bps extension fee.

Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Wells Fargo Securities LLC, RBS Securities Inc., HSBC Securities (USA) Inc. and Barclays are leading the deal.

CBRE, a Los Angeles-based real estate services and asset management firm, also plans to sell $800 million of senior notes that would be used for general corporate purposes, including the repayment of debt.

Container Store joins calendar

Container Store also revealed new deal plans, as it will be holding a call at 11 a.m. ET on Tuesday to launch a roughly $362 million term loan B due 2019, according to a market source.

The loan is talked at Libor plus 425 bps to 450 bps with a 1.25% Libor floor and an original issue discount that is still to be determined, the source said.

J.P. Morgan Securities LLC, Barclays, Morgan Stanley Senior Funding Inc. and Wells Fargo Securities LLC are leading the deal that will be used to refinance a roughly $272 million term loan B and redeem a portion of the company's outstanding cumulative preferred stock.

Container Store is a Coppell, Texas-based retailer of organization and storage products.

Edwards on deck

Edwards Group set a bank meeting for Wednesday to launch a new credit facility that will include a revolver and a $560 million seven-year term loan, according to a marker source.

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

Proceeds will be used to refinance existing debt.

Edwards Group is a Crawley, U.K.-based technology business and a supplier of vacuum and abatement products for the manufacture of microelectronics devices.

BBB readies deal

BBB Industries scheduled a bank meeting for Tuesday morning to launch a $240 million credit facility that is being led by GE Capital Markets, according to a market source.

The facility consists of a $35 million five-year revolver and a $205 million six-year term loan talked at Libor plus 425 bps to 450 bps with a 1.25% Libor floor, the source said.

Proceeds will be used to refinance existing debt.

BBB Industries is a Mobile, Ala.-based manufacturer and distributor of vehicle aftermarket replacement parts, primarily remanufactured starters, alternators and power steering products.

McGraw-Hill details surface

McGraw-Hill Global Education scheduled a bank meeting for 11 a.m. ET in New York on Tuesday to launch its $800 million senior secured credit facility, according to a market source.

The facility consists of a $240 million five-year revolver and a $560 million six-year covenant-light term loan that has 101 soft call protection for one year, the source said.

Proceeds will be used to help fund the buyout of the New York-based digital learning company by Apollo Global Management LLC from McGraw-Hill Cos. for $2.5 billion, subject to certain adjustments.

Early this year, the company had said in filings with the Securities and Exchange Commission that the transaction would be funded with a $1,325,000,000 credit facility - comprised of a $150 million ABL revolver that would be done at another entity, a $175 million cash flow revolver and a $1 billion term loan - and $250 million of senior unsecured notes issued by the purchaser at an annual interest of 8.5% until five years from closing, and then pricing would increase to 11% per annum.

Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc., Jefferies & Co., UBS Investment Bank, Nomura and BMO Capital Markets Corp. are leading the new credit facility.

Freescale closes

In other news, Freescale Semiconductor Inc. completed its new deal (B) that consists of a $350 million senior secured term loan due December 2016 and a $2.39 billion senior secured term loan due March 2020, a news release said.

Pricing on the 2016 loan is Libor plus 325 bps with a 1% Libor floor, and it was sold at par. The tranche has 101 soft call protection for six months.

The 2020 loan is priced at Libor plus 375 bps with a 1.25% Libor floor, and was sold at a discount of 99. There is 101 soft call protection for one year.

During syndication, the 2016 loan was added to the capital structure and then saw its issue price tighten from 99½ and its call protection shortened from one year. Also, the 2020 loan was downsized from $2.73 billion.

Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC led the deal that repaid existing term loans due in 2016 and 2019.

Freescale is an Austin, Texas-based designer and manufacturer of embedded semiconductors.

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