FTS rises with amendment; CPG shutting early; FoxCo tweaks deal; Nuveen finalizes OID

By Sara Rosenberg

New York, Sept. 12 - FTS International Inc.'s term loan rallied in trading on Wednesday as the company disclosed plans for an amendment that, in addition to revising covenants, would require a paydown, and Quad/Graphics Inc. and Sinclair Television Corp. both saw their term loans rise.

Moving to the primary, CPG International Inc. accelerated the commitment deadline on its loan due to strong demand, FoxCo Acquisition Sub LLC revised size and discount on its term loan while also firming the coupon at the low end of guidance, and Nuveen Investments firmed the original issue discount for new money for its term loan at the tight end of talk.

Also, Ollie's Bargain Outlet released talk as the deal was presented to lenders during the session, and some guidance on Jackson Hewitt Tax Service is being circulated ahead of its bank meeting.

In addition, Valeant Pharmaceuticals International Inc. and Plains Exploration & Production Co. came out with timing on the launch of their term loans, and Potpourri Group Inc. and Cannery Casino Resorts LLC announced new deal plans.

FTS strengthens

FTS International's term loan saw a considerable jump in the secondary market on Wednesday after news of an amendment and a concurrent $200 million repayment surfaced, according to traders.

The term loan was quoted by one trader at 94 bid, 94¾ offered, up from 91 bid, 91¾ offered, and by a second trader at 94 bid, 95 offered, up from 89½ bid, 90½ offered.

Under the amendment, the company is asking to suspend the maximum leverage ratio until the third quarter of 2014 and replace with it with a minimum EBITDA covenant starting in the fourth quarter.

Also, the leverage ratio would be increased when it returns in the third quarter of 2014, and the interest coverage ratio would be suspended for the third quarter of 2012 and reduced thereafter.

The amendment is conditioned on the paydown, which will be funded by a $350 million convertible preferred stock offering. Remaining proceeds from the convertibles will be used to redeem up to 35% of the company's 7 1/8% senior notes due 2018.

FTS International is a provider of well completion services for the oil and gas industry with corporate offices in Fort Worth and Cisco, Texas.

Quad/Graphics gains

Quad/Graphics' term loan moved up to 99 bid, par offered, from 98¾ bid, 99¼ offered as the company set a call for 11 a.m. ET on Thursday to launch an amendment to its credit facility, according to a trader.

The facility consists of an $850 million revolver, a $450 million term loan A and a $198.5 million term loan B.

J.P. Morgan Securities LLC is leading the amendment process.

Quad/Graphics is a Sussex, Wis.-based provider of print and related products and services.

Sinclair trades up

Sinclair Television's term loan B was also better with credit facility amendment news, moving to par ½ bid, 101 offered, from par 3/8 bid, par 7/8 offered, a trader said.

A call to launch the amendment was held at 11 a.m. ET on Wednesday and consents are due form lenders by 3 p.m. ET on Sept. 19.

Lenders are being offered a 25 basis points amendment fee, sources added.

J.P. Morgan Securities LLC and Wells Fargo Securities LLC are leading the amendment.

The Hunt Valley, Md.-based television broadcasting company's credit facility consists of a $97.5 million revolver, a $268 million term loan A and a $591 million term loan B.

CPG moves deadline

Switching to the primary, CPG International revised the commitment deadline on its $355 million seven-year covenant-light first-lien term loan (B1/B) to Friday from Tuesday as the deal is oversubscribed, according to a market source.

Talk on the loan is Libor plus 500 bps with a 1.25% Libor floor, an original issue discount of 99 and 101 repricing protection for one year.

The company's $465 million credit facility also includes a $110 million five-year ABL revolver that has pricing ranging from Libor plus 150 bps to 200 bps.

Credit Suisse Securities (USA) LLC and Barclays are leading the term loan, and Wells Fargo Securities LLC, Credit Suisse and Barclays are leading the revolver.

Proceeds will be used to help fund the purchase of TimberTech, which is expected to close this month, and to refinance existing debt.

CPG is a Scranton, Pa.-based manufacturer of synthetic building products. TimberTech is a Wilmington, Ohio-based manufacturer of low maintenance decking, railing and accessory products.

FoxCo reworks deal

FoxCo made a number of changes to its covenant-light term loan (B2/B+), including increasing the size to $765 million from $715 million, setting pricing at Libor plus 450 bps, the low end of the Libor plus 450 bps to 475 bps talk, and trimming the original issue discount to 99½ from 99, according to a market source.

As before, the loan has a 1% Libor floor and 101 soft call protection for one year.

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

Deutsche Bank Securities Inc. and UBS Securities LLC are leading the deal that will be used to refinance existing term loan debt and bonds, and to fund a dividend payment, the size of which was increased due to the term loan upsizing.

FoxCo is a Fort Wright, Ky.-based owner and operator of television stations.

Nuveen sets discount

Nuveen Investments firmed the original issue discount on new money for its $435 million term loan due May 2017 (B2) at 991/2, the tight end of the 99 to 99½ talk, according to a market source. Existing lenders were offered the debt at par for rollover commitments.

Pricing on the loan is Libor plus 550 bps with no Libor floor, and there is 101 soft call protection through February 2013.

Bank of America Merrill Lynch, Deutsche Bank Securities Inc., Citigroup Global Markets Inc., RBC Capital Markets LLC, Morgan Stanley Senior Funding Inc., UBS Securities LLC and Wells Fargo Securities LLC are leading the deal that will be used to refinance existing non-extended debt.

Nuveen is a Chicago-based provider of investment services to institutions as well as individual investors.

Ollie's reveals guidance

In more primary news, Ollie's Bargain Outlet disclosed talk of Libor plus 550 bps with a 1.25% Libor floor, an original issue discount of 99 and 101 soft call protection for one year on its $225 million term loan with its late morning bank meeting, according to a market source.

The company's $300 million senior secured credit facility also includes a $75 million ABL revolver, of which $25 million will be funded at close.

Commitments are due on Sept. 24, the source added.

Jefferies Finance LLC, M&T Bank and KeyBanc Capital Markets are leading the deal that will be used with around $465 million of new and rollover equity, to fund the roughly $700 million buyout of the company by CCMP Capital Advisors LLC from KarpReilly LLC.

Total leverage is in the low-to-mid 4 times area.

Ollie's is a Harrisburg, Pa.-based retailer of closeouts, excess inventory and salvage merchandise.

Jackson Hewitt floats talk

Jackson Hewitt Tax Service started going out with talk of Libor plus 800 bps with a 1.5% Libor floor and an original issue discount that is still to be determined on its $150 million term loan in preparation for its Thursday bank meeting, according to a market source.

Bank of America Merrill Lynch is the lead bank on the $200 million five-year credit facility, which also includes a $50 million revolver.

Proceeds will be used to refinance existing debt.

Jackson Hewitt is a Parsippany, N.J.-based provider of full-service individual federal and state income tax return preparation.

Valeant readies launch

Valeant Pharmaceuticals released timing on its $1 billion seven-year incremental term loan B (BBB-), with syndication on the deal set to kick off with a bank meeting at 10:30 a.m. ET on Friday in New York, according to a market source.

J.P. Morgan Securities LLC is leading the loan that will be used, along with $1.75 billion of bonds, to fund the acquisition of Medicis Pharmaceutical Corp., a Scottsdale, Ariz.-based specialty pharmaceutical company, for $44 per share in cash, or about $2.6 billion.

Backing the financing is a commitment for a $2.75 billion unsecured bridge loan priced at Libor plus 612.5 bps with a 1.25% Libor floor. The spread will increase by 50 bps after three months and every three months thereafter until it hits a specified cap.

Closing is expected in the first half of 2013, subject to customary conditions, including approval by Medicis stockholders and expiration of any applicable regulatory waiting period.

Valeant, a Mississauga, Ont.-based specialty pharmaceutical company, will have leverage of around 4.2 times.

Plains sets meeting

Plains Exploration & Production scheduled a bank meeting in New York at 1 p.m. ET on Thursday to launch its previously announced $1.25 billion seven-year term loan B, according to a market source.

J.P. Morgan Securities LLC, Barclays, Bank of America Merrill Lynch, BMO Capital Markets Corp., Citigroup Global Markets Inc., RBC Capital Markets LLC, Scotia Capital (USA) Inc., TD Securities (USA) LLC and Wells Fargo Securities LLC are the lead banks on the debt.

The company previously said that it will also be getting a $3 billion five-year revolver and a $750 million five-year term loan A as part of its $5 billion senior secured credit facility.

Proceeds will be used to help fund the $560 million acquisition of a 50% working interest in the Holstein Field from Shell Offshore Inc., the $5.55 billion purchase of oil and natural gas interests in the Gulf of Mexico from BP Exploration & Production Inc., to refinance some existing debt and for general corporate purposes.

Plains plans notes

In addition to the credit facility, Plains Exploration expects to sell $2 billion of senior notes, which are backed by a commitment for a $2 billion senior unsecured bridge loan that is priced at Libor plus 750 bps.

Closing on the Holstein acquisition is expected by year-end and on the BP acquisition on Nov. 30.

Following completion of the transactions, the company plans to reduce leverage by hedging up to 90% of oil production through 2015 to achieve $1 billion plus of yearly free cash flow and divesting $1.5 billion to $2 billion of low margin non-operated natural gas assets.

Plains Exploration is a Houston-based oil and gas company primarily engaged in the activities of acquiring, developing, exploring and producing oil and gas in California, Texas, Louisiana, and the Gulf of Mexico.

Potpourri deal emerges

Potpourri Group set a bank meeting for Thursday to launch a $135 million credit facility that consists of a $25 million revolver and a $110 million term loan B, according to a market source.

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

GE Capital Markets and NXT Capital are leading the deal.

Potpourri is a N. Billerica, Mass.-based multi-title catalog company offering products in home décor, casual apparel, gifts and unique accessories.

Cannery coming soon

Cannery Casino Resorts will hold a bank meeting at 2 p.m. ET on Thursday to launch a $565 million credit facility that will be used to repay bank debt and some PIK preferred stock, according to a market source.

The facility consists of a $40 million five-year revolver (B2), a $350 million six-year first-lien term loan (B2) and a $175 million seven-year second-lien term loan (Caa2), the source remarked.

Deutsche Bank Securities Inc., Bank of America Merrill Lynch, Goldman Sachs & Co., Wells Fargo Securities LLC, Credit Suisse Securities (USA) LLC and Macquarie Capital are leading the deal.

Cannery Casino is a Las Vegas-based owner and operator of hotels and casinos.

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