XO Communications, Knowledge Universe, Hudson, Steak n Shake break; PQ dips with repricing

By Sara Rosenberg

New York, March 17 - XO Communications LLC, Knowledge Universe Education LLC, Hudson Products Corp. and Steak n Shake Operations Inc. all freed up for trading during Monday's market hours, and PQ Corp.'s term loan softened with repricing news.

Moving to the primary market, Avast lowered the spread on its term loan, added a leverage-based step-down and tightened the original issue discount, and CPI International Inc. and Mattress Holding Corp. released price talk with launch.

Also, Fairmount Minerals Ltd., Cooper-Standard Automotive Inc., AssuredPartners Inc., Boyd Corp., Belfor USA Group Inc. and Fogo de Chao joined this week's calendar.

XO frees up

XO Communications' $500 million seven-year first-lien term loan (B2/BB-) broke for trading on Monday, with levels quoted at par bid, 101 offered, according to a trader.

The term loan is priced at Libor plus 325 basis points with a 1% Libor floor and was sold at an original issue discount of 991/2. The debt has 101 soft call protection for six months.

UBS Securities LLC is leading the deal that will be used to fund a network investment.

XO, owned by Carl Icahn, is a communications service provider.

Knowledge begins trading

Knowledge Universe's $300 million seven-year term loan B hit the secondary market as well, with levels seen at par bid, par ¾ offered, according to a market source.

Pricing on the B loan is Libor plus 425 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 one year.

The loan was upsized from $270 million, pricing firmed at the low end of the Libor plus 425 bps to 450 bps talk, the discount tightened from 99 the call protection was extended from six months during the syndication process.

The company's now $370 million credit facility (B) also includes a $70 million five-year revolver.

Deutsche Bank Securities Inc., BNP Paribas Securities Corp. and BMO Capital Markets are leading the deal that will be used to refinance existing debt and, due to the recent term loan upsizing, to fund a dividend.

Knowledge Universe is a Singapore-based provider of early childhood and teacher education.

Hudson tops OID

Hudson Products' credit facility freed up for trading too, with the $270 million five-year covenant-light term loan quoted at par bid on the open and then it moved up to par ¼ bid, 101 offered, a trader remarked.

Pricing on the term loan is Libor plus 400 bps with a 1% Libor floor and it was sold at an original issue discount of 99½ for new money. There is 101 soft call protection for six months.

During syndication, pricing on the loan was reduced from talk of Libor plus 425 bps to 450 bps.

The company's $300 million credit facility (B2/B-) also includes a $30 million 41/2-year revolver.

BNP Paribas Securities Corp. is leading the deal that will be used to refinance existing debt and fund a dividend.

Hudson Products is a Beasley, Texas-based designer and manufacturer of air-cooled heat exchanger equipment to serve the oil, gas and petrochemical processing industries.

Steak n Shake breaks

Another deal to begin trading was Steak n Shake, with its $220 million covenant-light term loan B quoted at 99½ bid, par ½ offered, according to a trader.

The term loan is priced at Libor plus 375 bps with a 1% Libor floor and was sold at an original issue discount of 99, and is non-callable for one year, then at par thereafter.

The company's $250 million credit facility (B1/B+) also provides for a $30 million revolver.

Jefferies Finance LLC is leading the deal that will be used to refinance existing debt and fund a dividend to Biglari Holdings Inc.

Steak n Shake is a restaurant operator.

PQ weakens

Also in the secondary, PQ's term loan dropped to par ¼ bid, par ¾ offered from par ½ bid, 101 offered as investors were told in the morning that the company would be seeking to reprice the debt, according to a trader.

The repricing of the $1,223,000,000 first-lien term loan due August 2017 is talked at Libor plus 300 bps with a 1% Libor floor, a par offer price and 101 soft call protection for six months, a market source said.

This transaction would being the term loan pricing down from Libor plus 350 bps with a 1% Libor floor.

A call to launch the deal was held at 5 p.m. ET on Monday.

Leads, Credit Suisse Securities (USA) LLC and J.P. Morgan Securities LLC, are seeking commitments by March 24, the source added.

PQ is a Malvern, Pa.-based producer of specialty inorganic performance chemicals and catalysts.

Avast revisions emerge

Over in the primary, Avast trimmed pricing on its $420 million six-year first-lien covenant-light term loan to Libor plus 400 bps from Libor plus 425 bps, added a step-down to Libor plus 375 bps at 3 times first-lien leverage and moved the original issue discount to 99½ from 99, according to a market source.

The term loan still has a 1% Libor floor and 101 soft call protection for one year.

Recommitments for the company's $460 million credit facility (B1/B+), which also includes a $40 million five-year revolver, were due at 5 p.m. ET on Monday, the source added.

Credit Suisse Securities (USA) LLC, UBS Securities LLC and Jefferies Finance LLC are leading the deal that will be used to help fund a major investment in the company by CVC Capital Partners.

Closing is expected this month.

Avast is a Czech Republic-based provider of security software for PCs, smartphones and tablets.

CPI discloses talk

CPI International held its bank meeting on Monday afternoon, launching its $310 million seven-year term loan with talk of Libor plus 350 bps with a 1% Libor floor and an original issue discount of 991/2, according to a market source.

The company's $340 million senior secured credit facility (Ba3/B) also includes a $30 million five-year revolver.

Commitments are due on March 28, the source said.

UBS Securities LLC and MCS Capital are leading the deal that 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.

Mattress launches add-on

Mattress Holding came out with issue price talk of par on its $100 million add-on term loan due Jan. 18, 2016 that launched with a call during the session, a market source said.

Pricing on the add-on is Libor plus 350 bps with no Libor floor, which matches the existing term loan, the source continued.

Commitments are due on March 21.

UBS Securities LLC is leading the deal that will be used to repay revolver borrowings and fund an acquisition.

Mattress Holding is a Houston-based mattress retailer.

Fairmount readies deal

Fairmount Minerals Ltd. will hold a lender call at 2 p.m. ET on Tuesday to launch $1,248,000,000 of term loans, a market source said.

The debt consists of a $324 million first-lien term loan B-1 due March 15, 2017 and a $924 million first-lien term loan B-2 due Sept. 5, 2019.

Proceeds will be used to reprice the existing term loan B-1 from Libor plus 400 bps with no floor and the existing term loan B-2 from Libor plus 400 bps with a 1% Libor floor, the source remarked.

Barclays, KeyBanc Capital Markets LLC, PNC Capital Markets LLC and Wells Fargo Securities LLC are leading the deal for the Chesterland, Ohio-based producer of industrial sand.

Cooper-Standard on deck

Cooper-Standard Automotive set a bank meeting for 10 a.m. ET in New York on Tuesday to launch a $725 million seven-year covenant-light term loan B that has 101 soft call protection for six months, a market source said.

Deutsche Bank Securities Inc., Bank of America Merrill Lynch, Barclays, J.P. Morgan Securities LLC and UBS Securities LLC are leading the deal.

Proceeds will be used by the Novi, Mich.-based supplier of systems and components for the automotive industry to refinance existing debt, including 8½% notes due 2018 and 7 3/8% PIK toggle notes due 2018.

AssuredPartners coming soon

AssuredPartners scheduled a bank meeting for 10 a.m. ET on Tuesday to launch $555 million in new term loans that will be used to refinance existing debt and add cash to the balance sheet, according to sources.

The debt consists of a $420 million seven-year first-lien term loan (B), and a $135 million eight-year second-lien term loan (CCC+) talked at Libor plus 700 bps with a 1% Libor floor, an original issue discount of 99 and call protection of 102 in year one and 101 in year two, sources said.

Bank of America Merrill Lynch and J.P. Morgan Securities LLC are the lead banks on the deal, with Bank of America left on the first-lien and JPMorgan left on the second-lien.

AssuredPartners is a Lake Mary, Fla.-based investor in property and casualty and employee benefits brokerage firms.

Boyd joins calendar

Boyd emerged with plans to hold a bank meeting at 10 a.m. ET on Thursday to launch a $310 million credit facility, according to a market source.

The facility consists of a $35 million revolver and a $275 million covenant-light term loan, the source said.

BNP Paribas Securities Corp. is leading the deal that will be used to refinance existing debt, fund an acquisition and pay a dividend.

Boyd is a Modesto, Calif.-based manufacturer and supplier of custom fabricated sealing and energy management components for OEMs.

Belfor plans call

Belfor set a call for Tuesday to launch a $75 million incremental term loan B with talk of Libor plus 275 bps with a 0.75% Libor floor and an original issue discount of 99¼ to 991/2, according to a market source.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance existing debt.

Belfor is a Birmingham, Mich.-based damage recovery and restoration provider.

Fogo de Chao refinancing

Fogo de Chao scheduled a call for Tuesday to launch a $205 million term loan that will be used to refinance existing debt, according to a market source.

J.P. Morgan Securities LLC is leading the deal.

Fogo de Chao is a Dallas-based steakhouse chain in the United States and Brazil.

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