CRC Health, Kindred Healthcare, Cooper-Standard, CPI, Learfield, MoneyGram, U.S. Renal break

By Sara Rosenberg

New York, March 28 - CRC Health Corp.'s credit facility made its way into the secondary market on Friday, with both the first- and second-lien term loans seen trading above their original issue discounts, and Kindred Healthcare Inc., Cooper-Standard Automotive Inc., CPI International Inc., Learfield Communications Inc., MoneyGram International Inc. and U.S. Renal Care Inc. broke too.

Moving to the primary, Telx Group Inc. reduced the size of its first-lien term loan, and AssuredPartners Inc. trimmed pricing on its second-lien term loan.

Also, Nielsen Finance LLC disclosed talk on its deal with launch and Multi Packaging Solutions Inc./Chesapeake Services Ltd. released original issue discount guidance on its term loan.

Furthermore, Orbitz Worldwide Inc., Munters Group, Millennium Laboratories, Sesac and Doncasters Group Ltd. are getting ready to bring new deals to market.

CRC starts trading

CRC Health's credit facility freed up for trading on Friday, with the $475 million seven-year first-lien term loan (B1/B) quoted at par bid, par ½ offered on the open and then it moved up to par ¼ bid, par ¾ offered, and the $300 million 71/2-year second-lien term loan (Caa1/CCC+) quoted at par bid, par ¾ offered, according to sources.

Pricing on the first-lien term loan is Libor plus 425 basis points with a 1% Libor floor and it was sold at an original issue discount of 99. There is 101 soft call protection for one year.

The second-lien term loan is priced at Libor plus 800 bps with a 1% Libor floor and was sold at a discount of 98. This debt has hard call protection of 103 in year one, 102 in year two and 101 in year three.

Along with the term loans, the company's $840 million credit facility includes a $65 million five-year revolver (B1/B).

Citigroup Global Markets Inc. (left on first-lien) and Credit Suisse Securities (USA) LLC (left on second-lien) are leading the deal that was scheduled to close on Friday.

CRC refinancing

Proceeds from CRC's credit facility are being used to refinance existing debt. The Cupertino, Calif.-based operator of addiction recovery centers has said that it will take out all of the outstanding debt under its existing senior secured credit agreement and senior subordinated bonds and retire a portion of its parent company debt.

During syndication of the new deal, pricing on the first-lien term loan was increased from talk of Libor plus 375 bps to 400 bps, the discount widened from 99½ and the call protection was extended from six months.

Also, pricing on the second-lien term loan firmed at the low end of revised talk of Libor plus 800 bps to 825 bps but up from initial talk of Libor plus 725 bps, the discount was revised from 99 and the call protection was sweetened from 102 in year one and 101 in year two.

In addition, the term loans went from having no financial covenants to having a net opco leverage covenant, the accordion feature was adjusted, and both the 18-month MFN sunset provision and change-of-control carve-out were removed.

Kindred tops OID

Kindred Healthcare's credit facility emerged in the secondary as well, with the $1 billion senior secured seven-year term loan B (B1/B+) quoted at par ½ bid, 101 offered, according to a trader.

Pricing on the term loan is Libor plus 300 bps with a 1% Libor floor, and it was sold at a discount of 993/4, after firming at the tight end of the 99½ to 99¾ talk. There is 101 soft call protection for six months.

The company's $1.75 billion credit facility also includes a $750 million five-year ABL revolver that has pricing of Libor plus 200 bps to 250 bps based on availability, a 37.5 bps undrawn fee and a 25 bps upfront fee.

J.P. Morgan Securities LLC is leading the deal that will be used with $500 million in bonds to refinance existing secured debt and senior unsecured debt.

Kindred Healthcare, a Louisville, Ky.-based health care services company, expects to close on the refinancing on April 9.

Cooper-Standard frees up

Cooper-Standard Automotive's $750 million seven-year covenant-light term loan B (BB-) also broke, with levels seen at par 1/8 bid, par ¾ offered, according to a market source.

Pricing on the loan Libor plus 300 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.

During syndication, the loan was upsized from $725 million, the spread was reduced from Libor plus 350 bps and the call protection was extended from six months.

Deutsche Bank Securities Inc., Bank of America Merrill Lynch, Barclays, J.P. Morgan Securities LLC and UBS Securities LLC are leading the deal that will be used to refinance existing debt, including 8½% notes due 2018 and 7 3/8% PIK toggle notes due 2018, and due to the recent upsizing, for general corporate purposes.

Cooper-Standard is a Novi, Mich.-based supplier of systems and components for the automotive industry.

CPI levels emerge

CPI International's credit facility surfaced in the secondary, with the $310 million seven-year term loan quoted at par ¼ bid, par ¾ offered on the break and then it moved up to par ½ bid, 101 offered, a trader said.

Pricing on the term loan is Libor plus 325 bps with a 1% Libor floor and it was sold at a discount of 993/4. There is 101 soft call protection for six months.

The other day, the spread on the term loan was trimmed from Libor plus 350 bps and the discount was changed from 991/2.

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

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.

Learfield hits secondary

Learfield's $280 million covenant-light first-lien term loan due October 2020 began trading too, with levels quoted at par ¼ bid, par ¾ offered, a source remarked.

Pricing on the loan is Libor plus 350 bps, after firming at the wide end of the Libor plus 325 bps to 350 bps talk. There is a step-down to Libor plus 325 bps at first-lien leverage of 4 times that was added during syndication, a 1% Libor floor and 101 soft call protection for six months. The debt was issued at par.

Deutsche Bank Securities Inc. is leading the deal that will be used to reprice an existing first-lien term loan from Libor plus 400 bps with a 1% Libor floor.

Learfield is a Jefferson City, Mo.-based college sports multimedia rights marketing company.

MoneyGram above par

Another deal to free to trade was MoneyGram's fungible $130 million add-on term loan due March 2020, with levels seen at par 1/8 bid, par 5/8 offered, according to a trader.

The add-on is priced at Libor plus 325 bps with a 1% Libor floor, in line with the existing term loan, and was sold at a discount of 99 7/8. All of the term loan debt has 101 soft call protection for six months.

Recently, the add-on loan was reduced from $150 million and the discount was changed from 991/2.

Bank of America Merrill Lynch, Wells Fargo Securities LLC and J.P. Morgan Securities LLC are leading the deal that will be used to repurchase shares.

MoneyGram is a Dallas-based money transfer company.

U.S. Renal breaks

U.S. Renal's new debt hit the secondary during the session, with the $225 million incremental first-lien term loan (Ba3) due July 3, 2019 seen at 99 7/8 bid, par 3/8 offered, a source remarked.

Pricing on the loan is Libor plus 325 bps with a 1% Libor floor, in line with the company's existing first-lien term loan, and all of the first-lien term loan debt has 101 soft call protection for six months. The incremental loan was sold at a discount of 993/4, after tightening the other day from 991/2.

The company is also getting a $25 million incremental second-lien term loan (Caa1) due Jan. 3, 2020 priced at Libor plus 750 bps with a 1% Libor floor, in line with the existing second-lien loan, and sold at par. This debt is non-callable through August, then at 102 for a year and 101 for a year.

With this transaction, existing second-lien loan lenders were offered a 25 bps amendment fee.

Barclays, RBC Capital Markets, Goldman Sachs Bank USA and SunTrust Robinson Humphrey Inc. are leading the $250 million of covenant-light debt that will be used by the Plano, Texas-based provider of dialysis services to fund a dividend.

Telx downsizes

Over in the primary, Telx cut its six-year first-lien term loan B (B1/B-) amount to $450 million from $475 million, and left talk at Libor plus 375 bps to 400 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.

The company's now $745 million senior secured credit facility still includes a $110 million five-year revolver (B1/B-) talked at Libor plus 350 bps to 375 bps with no floor, and a $185 million seven-year second-lien term loan (Caa1/CCC) talked at Libor plus 675 bps to 700 bps with a 1% Libor floor, a discount of 99 and hard call protection of 102 in year one and 101 in year two.

Commitments are due on Wednesday and closing is expected on April 9.

Telx lead banks

Morgan Stanley Senior Funding Inc., Deutsche Bank Securities Inc. and TD Securities (USA) LLC are the joint bookrunners on Telx's deal and joint lead arrangers with RBC Capital Markets.

Proceeds will be used to refinance an existing credit facility, redeem a portion of the company's mezzanine notes and fund a dividend - which was reduced with the term loan downsizing.

Telx is a New York-based provider of interconnection and co-location facilities.

AssuredPartners tweaks deal

AssuredPartners cut pricing on its $135 million eight-year second-lien term loan (Caa2/CCC+) to Libor plus 675 bps from Libor plus 700 bps, while keeping the 1% Libor floor, original issue discount of 99 and call protection of 102 in year one and 101 in year two intact, a market source said.

The company is also getting a $420 million seven-year first-lien term loan (B2/B) at Libor plus 350 bps with a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months.

Bank of America Merrill Lynch (left on first-lien), J.P. Morgan Securities LLC (left on second-lien), RBC Capital Markets, BMO Capital Markets and Madison Capital are leading the $555 million deal that will be used to refinance existing debt and add cash to the balance sheet.

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

Nielsen holds call

Nielsen Finance LLC held a call on Friday to launch $1.8 billion in new term loans (BBB-) comprised of a $200 million five-year term loan A, a $500 million term loan B-1 due 2017 and a $1.1 billion seven-year term loan B-2, according to sources.

Talk on the term loan B-1 is Libor plus 225 bps to 250 bps with no Libor floor and a par offer price, and the term loan B-2 is talked at Libor plus 275 bps to 300 bps with no Libor floor and an original issue discount of 993/4, sources continued, adding that both tranches have 101 soft call protection for six months.

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

Nielsen is a New York and Netherlands-based provider of information and insights into what consumers watch and buy.

Multi Packaging reveals OID

Multi Packaging/Chesapeake came out with original issue discount talk of 99¾ on its $50 million incremental term loan due Sept. 30, 2020 that launched with a call in the morning, a market source said.

Pricing on the incremental loan is Libor plus 325 bps with a 1% Libor floor and there is 101 soft call protection through Aug. 14, 2014, which is all in line with the existing term loan.

Commitments are due on Wednesday, the source added.

Barclays is leading the deal that will be used to fund contemplated acquisitions.

Multi Packaging/Chesapeake is a provider of value-added packaging services.

Orbitz plans meeting

Orbitz Worldwide scheduled a bank meeting for 1:30 p.m. ET in New York on Monday to launch a $525 million credit facility, a market source said.

The facility consists of a $75 million revolver, and a $450 million seven-year first-lien term loan that has 101 soft call protection for six months, the source continued.

Commitments are due on April 10.

Credit Suisse Securities (USA) LLC is leading the deal that will be used by the Chicago-based online travel agency to refinance existing term loan B and term loan C debt.

Munters coming soon

Munters Group will hold a bank meeting at 10 a.m. ET in New York on Tuesday to launch a $280 million seven-year covenant-light term loan B that has 101 soft call protection for six months, according to a market source.

Deutsche Bank Securities Inc. is leading the deal.

Munters, a Sweden-based provider of energy-efficient air treatment services with expertise in climate control technologies, will use the new term loan to refinance existing debt.

Millennium on deck

Millennium Laboratories is set to hold a bank meeting on Monday to launch a $1,815,000,000 credit facility, according to a market source.

The facility consists of a $50 million five-year revolver and a $1,765,000,000 seven-year term loan B, the source said.

J.P. Morgan Securities LLC, Citigroup Global Markets Inc., BMO Capital Markets and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to refinance existing debt and fund a dividend.

Millennium Laboratories is a San Diego-based specialty diagnostics laboratory.

Sesac joins calendar

Sesac scheduled a call for Tuesday to launch a $115 million add-on first-lien term loan, according to a market source.

The add-on is priced at Libor plus 400 bps with a 1% Libor floor, like the existing term loan, the source said. Original issue discount is still to be determined.

Jefferies Finance LLC is leading the deal that will be used to repay second-lien term loan debt.

Sesac is a Nashville, Tenn.-based performing rights organization that represents the interests of individual songwriters and publishers of music to ensure they are compensated for the public performance of their copyrighted material.

Doncasters readies deal

Doncasters Group plans to hold a call on Monday to launch a $130 million add-on first-lien term loan and a repricing of its existing $615 million first-lien term loan and its existing £159 million first-lien term loan, according to a market source.

Talk on the add-on term loan and the U.S. term loan repricing is Libor plus 325 bps to 350 bps with a 1% Libor floor, an original issue discount of 99¾ and 101 soft call protection for one year, the source said.

Proceeds from the add-on will be used to repay some second-lien term loan borrowings, and the repricing will take the U.S. term loan down from Libor plus 425 bps with a 1.25% Libor floor and the sterling term loan down from Libor plus 475 bps with a 1.25% floor.

J.P. Morgan Securities LLC is the left lead on the deal.

Doncasters is a Burton-upon-Trent, England-based manufacturer of complex precision components.

Websense fills out

In other news, Websense Inc.'s fungible $80 million add-on first-lien term loan (B1/B+) due June 2020 was fully syndicated prior to its official launch with a call on Thursday as there was strong reverse inquiry from investors, according to a market source.

As a result of the strong interest, offer price talk on the add-on loan has not yet come out, the source said.

Pricing on the first-lien term loan is Libor plus 350 bps with a 1% Libor floor.

RBC Capital Markets is leading the deal that will be used to repay a shareholder loan.

Responses are due on Thursday and allocations are expected thereafter, the source added.

Websense amendment

As previously reported, in connection with the add-on, Websense is seeking an amendment to its existing credit facility to allow for the new debt, provide for 101 soft call protection for six months to all of the first-lien term loan debt, reset the second-lien term loan call protection at 102 in year one and 101 in year two from closing of the amendment, and set RBC as the administrative agent on the first-lien term loan, replacing J.P. Morgan Securities LLC.

First-lien lenders are offered a 12.5 bps amendment fee and second-lien lenders are offered a 25 bps amendment fee.

Websense is a San Diego-based provider of web security, e-mail security, mobile security and data loss prevention.

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