Regal, Townsquare, National Financial, Planet Fitness, SeaWorld break; Allison reworked

By Sara Rosenberg

New York, March 27 – Regal Cinemas Corp.’s term loan emerged in the secondary market on Friday with levels quoted above par, and Townsquare Media Inc., National Financial Partners Corp. and Planet Fitness Holdings LLC began trading as well.

Also, SeaWorld Entertainment Inc. reduced pricing on its incremental term loan B-3, finalized the offer price at the tight end of guidance and then freed to trade in the afternoon.

In other primary happenings, Allison Transmission Inc. lowered the spread on its term loan, tightened the original issue discount and restructured the debt as an add-on to an existing tranche, CPM Holdings Inc. approached investors with a credit facility, and Tekni-Plex Inc. surfaced with new deal plans.

Regal tops OID

Regal Cinemas’ $966 million senior secured covenant-light term loan due in 2022 (Ba1/BB) broke for trading on Friday with levels seen at par 1/8 bid, par 5/8 offered, according to a trader.

Pricing on the term loan is Libor plus 300 basis points with a 0.75% Libor floor, and it was sold at an original issue discount of 99¾. The debt includes 101 soft call protection for six months.

Recently, the spread on the term loan was reduced from Libor plus 325 bps, the discount was modified from 99 and the call protection was shortened from one year.

Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch, Barclays, Morgan Stanley Senior Funding Inc. and Wells Fargo Securities LLC are leading the deal that will be used to refinance an existing term loan.

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

Townsquare frees up

Townsquare Media’s credit facility hit the secondary market too, with the $275 million seven-year term loan B quoted at par 1/8 bid, par 5/8 offered, a trader remarked.

Pricing on the B loan is Libor plus 325 bps with a 1% Libor floor, and it was sold at an original issue discount of 99½. There is 101 soft call protection for one year.

During syndication, the term loan B was upsized from $255 million in connection with the company’s bond offering being reduced to $300 million from $320 million, pricing was cut from Libor plus 375 bps, the call protection was extended from six months and the MFN sunset was eliminated.

In addition to the term loan B, the company’s $325 million senior secured credit facility (Ba2/BB-) includes a $50 million five-year revolver.

Townsquare refinancing

Proceeds from Townsquare Media’s credit facility and its new 6½% senior notes will be used to refinance an existing senior secured credit facility and $410.9 million of 9% senior notes due 2019 issued by Townsquare Radio LLC and Townsquare Radio Inc.

RBC Capital Markets LLC, Bank of America Merrill Lynch, SunTrust Robinson Humphrey Inc., Macquarie Capital (USA) Inc. and Jefferies Finance LLC are leading the credit facility.

Townsquare Media is a Greenwich, Conn.-based diversified media and entertainment and digital marketing services company.

National Financial breaks

Another deal to free up was National Financial Partners’ fungible $165 million add-on covenant-light term loan B due July 2020, with levels seen at 99½ bid, par offered, a trader said.

Pricing on the add-on is Libor plus 350 bps with a 1% Libor floor, in line with the existing term loan B due July 2020, and all of the term loan debt is getting 101 soft call protection for six months. The add-on was sold at an original issue discount of 99.

The other day, the add-on term loan was upsized from $125 million and the discount was set at the tight end of the 98¾ to 99 talk.

Bank of America Merrill Lynch and Jefferies Finance LLC are leading the deal that will be used to pay down revolver borrowings and for general corporate purposes.

National Financial is a New York-based provider of insurance brokerage and wealth management services to middle-market companies, financial advisers and high-net-worth individuals.

Planet Fitness hits secondary

Planet Fitness’ fungible $120 million add-on covenant-light term loan B due 2021 also began trading, with levels quoted at par bid, par ½ offered, according to a market source.

The term loan is priced at Libor plus 375 bps with a 1% Libor floor, and was issued at a discount of 99 7/8 after tightening the other day from 99½. The add-on, as well as the company’s existing term loan B, are getting 101 soft call protection for six months.

J.P. Morgan Securities LLC, Guggenheim Securities Holdings LLC, Jefferies Finance LLC, BMO Capital Markets Corp. and U.S. Bank are leading the deal that will be used by the operator of health clubs to fund a dividend and for general corporate purposes.

SeaWorld modified, trades

SeaWorld cut pricing on its $280 million incremental term loan B-3 (B1/BB) to Libor plus 325 bps from Libor plus 350 bps and set the original issue discount at 99½, the tight end of the 99 to 99½ talk, a market source said.

As before, the B-3 loan has a 0.75% Libor floor and 101 soft call protection for six months.

With final terms in place, the B-3 debt emerged in the secondary market and levels were seen at 99 ¾ bid, par 1/8 offered, a trader remarked.

Bank of America Merrill Lynch is the left lead on the deal that will be used to refinance existing senior notes due 2016.

SeaWorld is an Orlando, Fla.-based theme park operator.

Allison revises deal

In other news, Allison Transmission trimmed pricing on its $470 million senior secured first-lien term loan (Ba2/BB+/BB) due Aug. 23, 2019 to Libor plus 250 bps from talk of Libor plus 275 bps to 300 bps, moved the original issue discount to 99¾ from 99½ and restructured the debt as a fungible add-on to the existing term loan B-3 instead of an incremental term loan B-4, according to a market source.

As before, the new term debt has a 1% Libor floor and 101 soft call protection for six months, and now the existing term loan B-3 will get 101 soft call protection for six months as well.

Recommitments were due by 5 p.m. ET on Friday, the source said.

Citigroup Global Markets Inc., Barclays, Fifth Third Bank, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Goldman Sachs Bank USA, BMO Capital Markets Corp., Mitsubishi UFJ Securities (USA) Inc. and Sumitomo Mitsui are leading the deal that will be used to fund a tender offer expiring on April 14 for the company’s 7 1/8% senior notes due 2019.

Allison Transmission is an Indianapolis-based automatic transmission company.

CPM holds call

CPM Holdings hosted a call at 1 p.m. ET on Friday to launch a $325 million senior secured credit facility, according to a market source.

The facility consists of a $30 million revolver, and a $295 million seven-year term loan B talked at Libor plus 500 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, the source said.

Commitments are due on Thursday.

Morgan Stanley Senior Funding Inc. and Jefferies Finance LLC are the joint bookrunners on the deal and joint lead arrangers with Rabobank and ING.

CPM recapitalizing

Proceeds from CPM’s credit facility, along with a privately placed second-lien term loan, will be used to refinance existing debt and pay a distribution to shareholders.

The company had approached the loan market with a $445 million senior secured credit facility in December, but the refinancing and dividend deal was pulled due to poor market conditions.

The pulled facility was comprised of a $30 million revolver, a $315 million seven-year first-lien term B talked at Libor plus 500 bps to 525 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and a $100 million eight-year second-lien term loan talked at Libor plus 900 bps to 925 bps with a 1% Libor floor, a discount of 98½, and hard call protection of 102 in year one and 101 in year two.

CPM is a Waterloo, Iowa-based supplier of process equipment used for oilseed processing and animal feed production.

Tekni-Plex coming soon

Tekni-Plex set a bank meeting for 10 a.m. ET in New York on Wednesday to launch $690 million of term loans to refinance existing debt and fund a dividend, a market source said.

The debt consists of a $535 million seven-year first-lien covenant-light term loan, including a carve-out of up to €200 million, talked at Libor/Euribor plus 400 bps with a 1% floor, an original issue discount of 99 to 99½ and 101 soft call protection for six months, and a $155 million eight-year second-lien covenant-light term loan talked at Libor plus 800 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 continued.

Commitments are due on April 15.

Credit Suisse Securities (USA) LLC, BMO Capital Markets, Barclays and Goldman Sachs Bank USA are leading the deal for the King of Prussia, Pa.-based provider of specialty packaging services.

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