MotorCity, Burger King, inVentiv, Gymboree break for trading; Claire's rises with paydown

By Sara Rosenberg

New York, Feb. 11 - MotorCity Casino Hotel, Burger King Holdings Inc., inVentiv Health Inc. and Gymboree Corp. all freed up in the secondary market during Friday's market hours, and Claire's Stores Inc.'s term loan was stronger on paydown news.

Over in the primary, DineEquity Inc. and Burlington Coat Factory Warehouse Corp. released price talk as their bank deals were presented to lenders, Fairway Market LLC started to circulate talk on its facility in preparation for an upcoming bank meeting and Precision Engineered Products LLC disclosed official guidance now that ratings have come out.

Also, SeaWorld Parks & Entertainment Inc. made some changes to its credit facility, including shifting some funds between the term loan A and the term loan B, and, regarding the B loan, a pricing step-down and call protection were added and the Libor floor was trimmed.

Additionally, Dunkin' Brands Inc. upsized its B loan and firmed pricing, MultiPlan Inc. finalized pricing on its term loan and added call protection, and Excelitas Technologies Corp. also added call protection to its repricing deal.

MotorCity frees up

MotorCity Casino Hotel's credit facility hit the secondary market on Friday, with the $615 million six-year term loan B quoted by one trader at par ¾ bid on the open and then he saw it move to 101 bid, 102 offered, while a second trader saw it quoted at 101¼ bid, 102 offered.

Pricing on the term loan is Libor plus 500 basis points with a 2% Libor floor, and it was sold at par. There is 101 soft call protection for one year.

During syndication, pricing on the loan was reduced from Libor plus 525 bps, the original issue discount of 99½ was eliminated and call protection was added.

Bank of America Merrill Lynch and Citadel are leading the $635 million credit facility (B3/B+), which also includes a $20 million five-year revolver.

MotorCity, a casino in Detroit, will use the new deal to refinance existing debt.

Burger King breaks

Another deal to make its way into the secondary was Burger King's $1.6 billion U.S. term loan (Ba3), with one trader seeing it break at par bid, 101 offered and then move up to par 7/8 bid, 101 1/8 offered and another seeing levels of 101 bid.

Pricing on the term loan is Libor plus 300 bps with a 1.5% Libor floor, and it was sold at par. There is 101 soft call protection for one year.

During syndication, the loan was upsized from $1.51 billion, pricing was reduced from Libor plus 325 bps and call protection was added.

The company is also getting a €200 million term loan (Ba3) that was downsized from €250 million and is priced at Euribor plus 325 bps with a 1.5% Libor floor. This tranche was also sold at par and had 101 soft call protection for one year added during the negotiation process.

Burger King refinancing debt

Proceeds from Burger King's term loans will be used to reprice/refinance the existing U.S. and euro term loans that were obtained in October to help fund the buyout of the company by 3G Capital.

The existing debt priced at Libor plus 450 bps/Euribor plus 475 bps with a 1.75% Libor floor, was issued at a discount of 99 and has 101 soft call protection for one year.

JPMorgan and Barclays Capital are the lead banks on the deal.

Burger King is a Miami-based fast food hamburger chain.

inVentiv starts trading

Also breaking for trading was inVentiv's term loan debt (Ba3/BB-), with levels on the $315 million incremental loan quoted at par ¼ bid, par ¾ offered on the open and then it moved up to par 3/8 bid, par 7/8 offered, according to a trader.

Meanwhile, the $522 million of replacement term loan, which is the repricing of the existing term loan, was quoted at par 7/8 bid, 101 3/8 offered, the trader said. By comparison, on Thursday, the existing term loan had been quoted at 101 bid, 101½ offered.

Both the incremental term loan and the replacement loan are priced at Libor plus 325 bps with a 1.5% Libor floor and were sold at par.

"Incremental not funding for about three months, so that's why it trades cheaper," the trader explained, adding that once the incremental funds, the two tranches should trade right on top of each other.

inVentiv lead banks

Citigroup, Bank of America Merrill Lynch, Credit Suisse, Deutsche Bank and Wells Fargo are the lead banks on inVentiv's $837 million deal.

During syndication, the incremental term loan was upsized from $300 million and pricing on this debt was first flexed from Libor plus 400 bps to Libor plus 350 bps, and then it dropped another 25 bps and the 99½ discount was removed.

Upon the first flex to the incremental loan, the company decided to reprice its existing term loan, and during negotiations, pricing on this transaction was reduced by 25 bps from Libor plus 350 bps. This tranche was sold at a discount of 98½ when it was obtained in August 2010 for the company's buyout by Thomas H. Lee Partners LP. It is being repaid at 101 due to soft call protection.

inVentiv funding acquisitions

Proceeds from inVentiv's incremental term loan will be used to help fund the acquisitions of Campbell Alliance, a management consulting firm specializing in the pharmaceutical and biotech industries, and the i3 clinical development businesses from Ingenix.

The financial terms of the Campbell Alliance acquisition, which is expected to close in the first quarter, have not been disclosed. The i3 businesses will be purchased for about $400 million, and the acquisition is expected to close in the first half of the year.

inVentiv is a Somerset, N.J.-based provider of outsourced clinical development, launch and commercialization services to the health care industry.

Gymboree hits secondary

Gymboree started trading as well on Friday, with its $820 million covenant-light term loan B (B1/B+) quoted at par ¾ bid, 101 offered, according to traders.

Pricing on the San Francisco-based specialty retailer's term loan is Libor plus 350 bps, after flexing down recently from Libor plus 412.5 bps. There's a 1.5% Libor floor and 101 soft call protection for one year against repricings, and it was sold at par.

Credit Suisse is the lead bank on the deal that will be used to refinance an existing $820 million term loan B that was obtained in November, when the company was acquired by Bain Capital Partners LLC.

The existing loan includes maintenance covenants and is priced at Libor plus 400 bps with a 1.5% Libor floor. It was sold at an original issue discount of 99½ and is getting paid down at 101 because of call protection.

Claire's trades up

In more secondary happenings, Claire's Stores' term loan moved higher after the company announced plans to repay some of its bank debt, according to traders.

The term loan was quoted by one trader at 98 7/8 bid, 99 1/8 offered, up from 97¾ bid, 98¼ offered, and by a second trader at 98¾ bid, 99½ offered, up from 97¾ bid, 98¼ offered.

On Friday morning, sources heard that the company would be issuing $400 million of senior secured second-lien notes and that proceeds from the sale would be used to repay borrowings under its credit facility.

Claire's is a Pembroke, Pines, Fla.-based specialty retailer of fashion accessories and jewelry.

DineEquity sets talk

Switching to the primary, DineEquity, a Glendale, Calif.-based restaurant company, held a call on Friday to launch its roughly $742 million term loan B, and in connection with the event, price talk of Libor plus 300 bps with a 1.25% Libor floor and a par offer price were announced, according to a market source. There is 101 soft call protection for one year.

Barclays and Goldman Sachs are leading the deal and are asking for commitments by Thursday.

Proceeds will be used to reprice/refinance the company's existing term loan B that was obtained in the latter part of 2010 to refinance existing debt. Pricing on the existing deal is Libor plus 450 bps with a 1.5% Libor floor. It was sold at a discount of 99 and includes 101 soft call protection for one year.

Originally, the term loan B was sized at $900 million, but has been paid down through free cash flow and proceeds from asset sales.

In addition, the company is upsizing its revolver to $75 million from $50 million. Pricing on the revolver is remaining at Libor plus 450 bps with a 1.5% Libor floor, the source added.

Burlington pricing

Burlington Coat Factory launched its $1 billion term loan on Friday with price talk of Libor plus 475 bps with a 1.5% Libor floor and an original issue discount of 99, according to a market source.

Proceeds, along with $400 million of senior notes, will be used to repay a term loan that had about $853 million outstanding at Oct. 30, to repurchase $305 million of 11 1/8% senior notes and roughly $99 million of 14½% senior discount notes and to fund a dividend as well as for general corporate purposes.

Burlington had already tried to get a $1 billion term loan and $500 million notes offering done in November, but that financing was pulled because of changing market conditions and less favorable pricing. Price talk on the loan last year had been Libor plus 525 bps with a 1.75% Libor floor and an original issue discount of 981/2.

JPMorgan, Goldman Sachs, Bank of America Merrill Lynch and Wells Fargo are the lead banks on the deal for the Burlington, N.J.-based discount retailer.

Cedar launches at guidance

Cedar Fair LP launched the repricing/refinancing of its $1.175 billion term loan on Friday in line with previously whispered talk at Libor plus 300 bps to 325 bps with a 1.25% Libor floor and a par offer price, according to a market source.

The company is repricing its term loan that is priced at Libor plus 400 bps with a 1.5% Libor floor. This tranche was sold at an original issue discount of 99 when it was obtained in the summer of 2010 to refinance existing debt.

JPMorgan is the lead bank on the deal for the Sandusky, Ohio-based regional amusement-resort operator.

Regal holds call

Regal Cinemas Corp. also held a lender call during the session to launch a repricing/refinancing transaction, and it will also extend the maturity of its term loan through this amendment process.

As was already reported, the term loan (Ba2/BB-) will be extended to August 2017 from Nov. 19, 2016 and pricing will be reduced to Libor plus 325 bps with a step-down to Libor plus 300 bps at less than 3 times leverage. The tranche is being offered at par and includes 101 soft call protection for one year.

The originally sized $1.25 billion term loan was completed in May 2010 to refinance existing bank debt. Pricing is Libor plus 350 bps with a step-up to 375 bps based on leverage.

The company said in a 424B3 filed with the Securities and Exchange Commission that it plans on repaying some of its senior credit facility borrowings with proceeds from an offering of $100 million of 9 1/8% senior notes that priced on Thursday at 104.5.

Regal seeks quick close

Regal also said in the filing that the term loan amendment, which is being led by Credit Suisse, is expected to be completed concurrently with the closing on the bonds, which is targeted for Feb. 15.

At Sept. 30, as adjusted for the paydowns from a notes offering in January and the current bond deal, the term loan was $997.8 million, net of debt discount.

Any remaining proceeds from the recently priced bond deal will be used for general corporate purposes, which may include the redemption, repayment or repurchase of debt.

Regal Cinemas is a subsidiary of Regal Entertainment Group, a Knoxville, Tenn.-based motion picture exhibitor.

Fairway floats talk

Fairway Market began telling lenders that its proposed $175 million credit facility is being talked at Libor plus 700 bps with a 1.5% Libor floor and an original issue discount of 98, according to a market source.

The facility consists of a $25 million five-year revolver and a $150 million six-year term loan and includes a full covenant package.

Credit Suisse is the left lead bank on the deal that will be used to refinance an existing credit facility and provide some cash for future store expansion.

The existing $114 million facility was completed in January 2010 and was structured as a $105 million five-year term loan priced at Libor plus 950 bps with a 2.5% Libor floor that was sold at an original issue discount of 97 and a $9 million 4½ year revolver.

Fairway is a supermarket chain with locations in New York, New Jersey and Connecticut.

Precision guidance surfaces

Precision Engineered Products revealed that it is talking its $190 million credit facility at Libor plus 450 bps with a 1.5% Libor floor and an original issue discount of 99 now that ratings of B1/BB- have been announced, according to a market source.

The facility, which launched with a bank meeting this past Tuesday, consists of a $30 million five-year revolver and the $160 million six-year term loan B.

KeyBanc Capital Markets is the lead on the deal that will be used to fund the buyout of the company by the Jordan Co. and Nautic Partners.

Senior and total leverage at close will be around 3.3 times.

Precision Engineered Products is an Attleboro, Mass.-based manufacturer of highly engineered precision metal and plastic components, materials and surface finishing technologies for use in medical, energy control & distribution and other demanding technical applications.

SeaWorld reworks deal

SeaWorld, an Orlando, Fla.-based theme park operator, upsized its five-year term loan A to $150 million from $125 million, downsized its 61/2-year term loan B to $900 million from $925 million and made some pricing changes to the B loan, according to a market source.

The term loan B is still offered at par and priced at Libor plus 300 bps, but now includes a step-down to Libor plus 275 bps at less than 2.25 times leverage, and the Libor floor was tightened to 1% from 1.25%, the source said. Also, 101 soft call protection for six months was added.

Pricing on the term loan A, as well as on a $140 million five-year revolver, was left unchanged at Libor plus 275 bps with no Libor floor.

Bank of America Merrill Lynch, Barclays, Deutsche Bank and Mizuho Bank are leading the $1.19 billion senior secured credit facility (Ba2/BB+) that will be used to refinance existing bank debt.

Dunkin' ups loan

Dunkin' Brands lifted its term loan B to $1.4 billion from $1.25 billion and firmed pricing at Libor plus 300 basis points, the low end of initial talk of Libor plus 300 bps to 325 bps, while leaving the 1.25% Libor floor and par offer price unchanged, according to a market source. The loan provides for 101 soft call protection for one year.

Barclays, JPMorgan, Bank of America Merrill Lynch and Goldman Sachs are the lead banks on the deal that will be used to reprice/refinance an existing $1.25 billion term loan B that was obtained late last year to repay securitization debt and pay a dividend and, because of the upsizing, to repay bonds.

Pricing on the existing loan is Libor plus 425 bps with a 1.5% Libor floor and it was sold at an original issue discount of 991/2. The tranche includes 101 soft call protection for one year.

Canton, Mass.-based Dunkin' Brands is the parent company of Dunkin' Donuts, a coffee and baked goods restaurant chain, and Baskin-Robbins, an ice cream specialty store chain.

MultiPlan firms spread

MultiPlan set pricing on its $1.265 billion term loan at Libor plus 325 bps, the tight end of the Libor plus 325 bps to 350 bps price talk, and added 101 soft call protection for one year, while leaving the 1.5% Libor floor and par offer price intact, according to a market source.

Recommitments were due at 5 p.m. ET on Friday.

Barclays, Bank of America Merrill Lynch and Credit Suisse are the leads on the deal that will be used to refinance/reprice the company's existing term loan that was obtained in August 2010 to fund the company's buyout by BC Partners and Silver Lake.

Pricing on the existing loan is Libor plus 475 bps with a 1.75% Libor floor, it was sold at an original issue discount of 98, and there is 101 soft call protection for one year. The initial size of the loan was $1.3 billion but some of the debt has been paid down since it closed.

MultiPlan is a New York-based provider of health care cost management services.

Excelitas adds call

Excelitas Technologies (previously known as Illumination and Detection Solutions) added 101 soft call protection for one year to its repricing transaction and, following that change, the deal had filled out by Friday's commitment deadline, according to a market source.

As was previously reported, the company is repricing its $200 million term loan at Libor plus 450 bps with a 1% Libor floor from Libor plus 575 bps with a 1.5% Libor floor.

The repricing term loan is being sold at par, whereas when the deal was first obtained late last year to help fund the buyout of the company by Veritas Capital, it was sold at an original issue discount of 99.

UBS is the left lead bank on the repricing that is expected to close during the week of Feb. 14.

Excelitas is a provider of specialty lighting and sensor components, subsystems and integrated products to OEMs for health, environmental and security segments.

CPI closes

CPI International Inc. closed on its $180 million senior secured credit facility (B+) on Friday, according to a market source.

The facility consists of a $150 million six-year term loan priced at Libor plus 400 bps with a 1% Libor floor that was sold at an original issue discount of 99½ and a $30 million five-year revolver priced at Libor plus 450 bps with a 1% Libor floor.

During syndication, pricing on the term loan was trimmed from Libor plus 450 bps, the floor came in from 1.75% and the discount tightened from 99.

UBS acted as the lead bank on the deal that was used to help fund the acquisition of the company by Veritas Capital for $19.50 per share in cash and to refinance existing debt.

CPI is a Palo Alto, Calif.-based provider of microwave, radio frequency, power and control services for critical defense, communications, medical, scientific and other applications.

GEO wraps acquisition

GEO Group completed its acquisition of Behavioral Interventions Inc., a Boulder, Colo.-based provider of electronic monitoring services, for $415 million in an all-cash transaction, according to a news release.

To help fund the transaction, GEO got a $100 million revolver and a $150 million term loan A-2, both priced at Libor plus 275 bps, the low end of the initial Libor plus 275 bps to 300 bps talk, with no Libor floor.

BNP Paribas acted as the lead bank on the $250 million deal (Ba3/BB) that was sold as a strip to a target audience of banks.

GEO, a Boca Raton, Fla.-based provider of correctional, detention and residential treatment services, expects to close on the transaction on Feb. 10.

Affinion incremental closes

Affinion Group Inc. completed its $250 million incremental term loan (Ba3/BB-) on Friday, according to an 8-K filed with the SEC.

Pricing on the incremental term loan is Libor plus 350 bps with a 1.5% Libor floor, same as existing pricing. The new debt was sold at an original issue discount of 99¾ after firming up from talk in the mid-to-high 99s.

Bank of America Merrill Lynch and Deutsche Bank acted as the leads on the deal that is being used for general corporate purposes, to fund future strategic initiatives, to pay a dividend and to redeem preferred equity.

Affinion is a Norwalk, Conn.-based provider of marketing services and loyalty programs.

Axcan completes loan

Axcan Holdings Inc. said in an 8-K filing that it closed on its $750 million multi-draw six-year term loan on Friday that is priced at Libor plus 400 bps with a 1.5% Libor floor and was sold at an original issue discount of 991/2. There is 101 soft call protection for one year.

During syndication, the term loan was upsized first from $225 million to $450 million when plans for a $225 million secured notes offering were terminated and then from $450 million to the final size. Also, pricing was reduced from initial talk of Libor plus 475 bps.

The company's $865 million senior secured credit facility also includes a $147 million amended and restated revolver, under which $115 million of commitments were extended to 2016 from Feb. 25, 2014 at pricing of Libor plus 450 bps.

Axcan buys Eurand

Proceeds from Axcan's term loan, equity and cash on hand were used to fund the acquisition of Eurand NV for $12.00 per share, or $586.5 million total on a fully diluted basis, to repay Eurand's debt and to repay Axcan's outstanding term loan.

The multi-draw term loan will also be used to redeem or repurchase Axcan's existing 9¼% senior secured notes due March 1, 2015.

Bank of America Merrill Lynch, RBC Capital Markets, HSBC and Barclays are the joint lead arrangers and bookrunners on the deal.

Axcan is a Mont-Saint-Hilaire, Quebec-based pharmaceutical company focused on the treatment of gastrointestinal disorders. Eurand is an Amsterdam-based specialty pharmaceutical company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.