Mallinckrodt, Payless, Cengage, National Vision, Synarc break; Rexnord, Realogy, EMI revised

By Sara Rosenberg

New York, March 6 - Mallinckrodt plc's credit facility hit the secondary markets on Thursday, as did deals from Payless Inc., Cengage Learning Acquisitions Inc., National Vision Inc. and Synarc-BioCore Holdings LLC.

Moving to the primary, Rexnord LLC raised the spread on its term loan and extended the call protection, Realogy Holdings Corp. modified the Libor floor on its loan, EMI Music Publishing revised the call premium on its repricing transaction, and IMS Health set the original issue discount on its U.S. loan at the wide end of talk.

In addition, Microsemi Corp., SBP Holdings and RadNet Inc. disclosed talk with launch, CPI International Inc. revealed timing on its credit facility, and details on MultiPlan Inc.'s buyout deal emerged.

Mallinckrodt hits secondary

Mallinckrodt's credit facility freed up for trading on Thursday, with the $1.3 billion seven-year covenant-light term loan B quoted at par bid, par ½ offered, according to a trader.

Pricing on the B loan is Libor plus 275 bps with a step-down to Libor plus 250 bps at 3.75 times net total leverage. There is a 0.75% Libor floor and 101 soft call protection for six months, and the debt was issued at an original issue discount of 993/4.

Earlier this week, the spread on the term loan B firmed at the tight end of the Libor plus 275 bps to 300 bps talk, the step-down was added and the discount was revised from 991/2.

The company's $1.55 billion credit facility (Ba3/BB+) also includes a $250 million five-year revolver.

Deutsche Bank Securities Inc., Barclays, Citigroup Global Markets Inc. and Wells Fargo Securities LLC are leading the deal.

Mallinckrodt funds acquisition

Proceeds from Mallinckrodt's credit facility, along with cash on hand, will be used to fund the purchase of Cadence Pharmaceuticals Inc. for $14.00 per share in cash, or about $1.3 billion on a fully diluted basis.

Closing is expected in mid-to late March, subject to customary conditions, the tender of a majority of Cadence Pharmaceuticals' shares and the expiration or termination of the waiting period under the Hart Scott Rodino Antitrust Improvements Act.

Mallinckrodt is a Dublin-based specialty pharmaceutical and medical imaging business. Cadence Pharmaceuticals is a San Diego-based biopharmaceutical company focused on commercializing products principally for use in the hospital setting.

Payless firms terms, breaks

Payless set pricing on its $520 million seven-year first-lien term loan B (B1/B) at Libor plus 400 bps, the low end of the Libor plus 400 bps to 425 bps talk, and kept the 1% Libor floor, original issue discount of 99½ and 101 soft call protection for six months unchanged, according to a market source.

In addition, pricing on the $145 million eight-year second-lien term loan (B3/CCC+) firmed at Libor plus 750 bps, the tight end of the Libor plus 750 bps to 775 bps talk, while the 1% Libor floor, discount of 99 and hard call protection of 102 in year one and 101 in year two were left intact, the source said.

With the pricing update, it was disclosed that the MFN sunset was removed, the source continued.

Following the finalization of terms, the deal began trading, with the first-lien quoted at par bid, par ½ offered and the second-lien loan quoted at 99¾ bid, par offered, a trader added.

Morgan Stanley Senior Funding Inc., Jefferies Finance LLC and MCS Capital Markets are leading the deal that will refinance the Topeka, Kan.-based specialty family footwear retailer's existing B loan and fund a dividend.

Cengage tops OID

Cengage Learning's $1.75 billion six-year first-lien covenant-light term loan (B2) freed up as well, with levels seen at 101¼ bid, 101¾ offered, according to a trader.

Pricing on the term loan is Libor plus 600 bps with a 1% Libor floor and it was sold at an original issue discount of 991/2. There is 101 soft call protection for six months.

During syndication, pricing on the term loan was trimmed from Libor plus 700 bps and the discount was changed from 99.

The company's $1.95 billion credit facility also provides for a $200 million ABL revolver.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc., Citigroup Global Markets Inc. and KKR Capital Markets are leading the deal that will be used to help fund the company's emergence from Chapter 11.

Cengage is a Stamford, Conn.-based provider of teaching, learning and research services for the academic, professional and library markets.

National Vision starts trading

Another deal to emerge in the secondary market was National Vision, with its $500 million seven-year first-lien term loan B quoted at par ¼ bid, par ½ offered and its $125 million eight-year second-lien term loan quoted at 101 bid, 101¾ offered, a trader said.

The first-lien term loan is priced at Libor plus 300 bps with a 1% Libor floor and was issued at par. There is 101 soft call protection for six months.

Pricing on the second-lien term loan is Libor plus 575 bps with a 1% Libor floor and it was sold at a discount of 99 7/8. There is hard call protection of 102 in year one and 101 in year two.

During syndication, the first-lien term loan was upsized from $475 million, pricing was cut from Libor plus 325 bps and the offer price was revised from 993/4, and the second-lien term loan was downsized from $150 million, the spread was trimmed from Libor plus 625 bps and the discount was tightened from 991/2.

National Vision revolver

In addition to the first- and second-lien term loans, National Vision's $700 million credit facility includes a $75 million revolver.

Goldman Sachs Bank USA (left on first-lien), Morgan Stanley Senior Funding Inc. (left on second-lien), Citigroup Global Markets Inc., KKR Capital Markets, Mizuho, Barclays and Macquarie Capital are leading the deal that will be used to help fund the buyout of the company by KKR from Berkshire Partners.

Closing is expected by the end of this quarter, subject to regulatory approvals and customary conditions.

National Vision is a Lawrenceville, Ga.-based retailer of eyeglasses and contact lenses.

Synarc frees up

Synarc-BioCore's credit facility also began trading, with the $225 million seven-year first-lien covenant-light term loan (B1/B-) seen at 99¾ bid, par offered and the $100 million eight-year second-lien covenant-light term loan (Caa1/CCC) seen at par bid, 101 offered, according to a trader.

Pricing on the first-lien term loan is Libor plus 450 bps, after finalizing at the wide end of the Libor plus 425 bps to 450 bps talk, a source said. The loan has a 1% Libor floor and 101 soft call protection for six months, and was sold at an original issue discount of 99.

The second-lien term loan is priced at Libor plus 825 bps with a 1% Libor floor and was sold at a discount of 99. This tranche has call protection of 102 in year one and 101 in year two.

The company's $365 million credit facility also includes a $40 million revolver (B1/B-).

Synarc lead banks

Credit Suisse Securities (USA) LLC, Jefferies Finance LLC and KeyBanc Capital Markets are Leading Synarc-BioCore's credit facility.

Proceeds will be used to help fund the merger of CCBR-Synarc, a Newark, Calif.-based provider of clinical services to pharmaceutical and biotechnology companies, and BioClinica Inc., a Newton, Pa.-based provider of integrated, technology-enhanced clinical trial management services.

Closing is expected this quarter.

Synarc-BioCore is a clinical imaging and patient recruitment company for pharmaceutical and CRO clinical trials.

Rexnord flexes up

Back in the primary market, Rexnord lifted pricing on its $1.95 billion first-lien covenant-light term loan due August 2020 to Libor plus 300 bps from Libor plus 275 bps and pushed out the 101 soft call protection to one year from six months, according to a market source.

The loan still has a 0.75% Libor floor and a par offer price.

Commitments continue to be due at 4 p.m. ET on Friday, the source said.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to reprice an existing term loan from Libor plus 300 bps with a 1% Libor floor.

Rexnord is a Milwaukee-based industrial company comprising two strategic platforms: process & motion control and water management.

Realogy tweaks floor

Realogy changed the Libor floor on its roughly $1.9 billion senior secured term loan to 0.75% from 1% and extended the 101 soft call protection to one year from six months, according to a market source.

Pricing on the loan is still Libor plus 300 bps with a par offer price.

J.P. Morgan Securities LLC is leading the deal that will be used to reprice an existing term loan from Libor plus 350 bps with a 1% Libor floor.

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

EMI adjust call protection

EMI Music Publishing extended the 101 soft call on its roughly $1.08 billion term loan B to one year from six months, according to a market source.

Pricing on the loan is still Libor plus 275 bps with a 1% Libor floor and a par offer price.

UBS Securities LLC is leading the deal that will be used to reprice an existing term loan from Libor plus 325 bps with a 1% Libor floor.

EMI Music is a New York-based music publisher.

IMS firms U.S. OID

IMS Health set the original issue discount on its $1,747,000,000 seven-year covenant-light term loan B at 991/2, the high end of the 99½ to 99¾ talk, according to a market source.

As before, the loan is priced at Libor plus 275 basis points with a 25 bps step-down in spread when net opco leverage is less than 5 times and a 1% Libor floor, and has 101 soft call protection for six months.

The company's €747 million seven-year covenant-light term loan B is still talked at Euribor plus 300 bps with a 25 bps step-down in spread when net opco leverage is less than 5 times, a 1.25% floor, a discount of 99½ to 99¾ and 101 soft call protection for six months.

Bank of America Merrill Lynch, Goldman Sachs Bank USA, HSBC Securities (USA) Inc., J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc., Barclays, Deutsche Bank Securities Inc. and Wells Fargo Securities LLC are leading the deal (Ba3/BB-) that will be used to refinance existing debt.

IMS is a Danbury, Conn.-based provider of information, services and technology for the health care industry.

Microsemi reveals guidance

In more primary happenings, Microsemi held its call in the morning, launching its $646 million covenant-light term loan B-1 with talk of Libor plus 250 bps with a 0.75% Libor floor, a par offer price and 101 soft call protection for six months, a market source remarked.

Commitments are due on March 13, the source added.

RBC Capital Markets is leading the deal that will be used to refinance an existing term loan priced at Libor plus 275 bps with a 1% Libor floor.

Microsemi is an Aliso Viejo, Calif.-based provider of semiconductor services.

SBP sets talk

SBP Holdings launched with a bank meeting its $225 million seven-year first-lien term loan with talk of Libor plus 375 bps with a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months, according to a market source.

Also, the $127.5 million eight-year second-lien term loan was launched with talk of Libor plus 725 bps with a 1% Libor floor, a discount of 99 and call protection of 102 in year one and 101 in year two, the source said.

The company's $452.5 million credit facility also include a $100 million five-year ABL revolver.

Commitments are due on March 19, the source added.

UBS Securities LLC is leading the deal that will be used to help fund the acquisition of Delta Rigging & Tools and to refinance existing debt.

SBP is a Glen Burnie, Md.-based industrial products distributor. Delta Rigging is a Pearland, Texas-based provider of lifting and rigging products and related services.

RadNet pricing

RadNet came out with talk of Libor plus 675 bps to 700 bps with a 1% Libor floor, an original issue discount of 99 and call protection of non-callable for one year, then at 102 in year two and 101 in year three on its $180 million seven-year second-lien covenant-light term loan (Caa1/CCC+) that launched during the session, a market source said.

Additionally, talk out the $30 million tack-on first-lien term B (Ba3) due Oct. 10, 2018 was announced as Libor plus 325 bps with a 1% Libor floor, a discount of 99¼ to 99½ and 101 soft call protection for six months, the source continued.

Commitments are due on March 17 and closing is expected in April.

Barclays, RBC Capital Markets, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and GE Capital Markets are leading the deal that refinance $200 million of 10 3/8% senior unsecured notes due 2018.

First-lien leverage is 3.5 times and second-lien leverage is 5 times, the source added.

RadNet is a Los Angeles-based owner and operator of fixed-site diagnostic imaging centers.

CPI discloses timing

CPI International came out with timing on its $340 million senior secured credit facility, with the deal slated to launch with a bank meeting at 2:30 p.m. ET on March 17, a market source said.

The facility consists of a $30 million five-year revolver, and a $310 million seven-year term loan that has a 1% Libor floor.

UBS Securities LLC is leading the deal.

Proceeds will be used to fund an up to $175 million dividend to parent company CPI International Holding Corp. and to refinance an existing credit facility.

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.

MultiPlan on deck

MultiPlan scheduled a bank meeting for 2:30 p.m. ET on Monday to launch a $2,275,000,000 credit facility, according to a market source.

The facility consists of a $75 million five-year revolver and a $2.2 billion seven-year term loan, the source said.

Barclays and J.P. Morgan Securities LLC are leading the deal that will be used to help fund the company's buyout by Starr Investment Holdings and Partners Group from Silver Lake and BC Partners and to refinance existing debt.

Closing is subject to regulatory approvals and customary conditions.

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

ILFC closes

International Lease Finance Corp. (ILFC) completed its $1.5 billion seven-year term loan B (Ba2/BBB-/BB), according to a news release.

Pricing on the loan is Libor plus 275 bps with a 0.75% Libor floor and it was sold at a discount of 991/2. There is 101 soft call protection for six months.

During syndication, the loan was upsized from $1 billion and pricing firmed at the tight end of the Libor plus 275 bps to 300 bps talk.

Deutsche Bank Securities Inc., Goldman Sachs Bank USA and RBC Capital Markets led the deal that is being used for general corporate purposes.

International Lease is a Los Angeles-based independent aircraft lessor.

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