Floatel, Authentic Brands, Vocus, Albaugh, SunEdison, Wyle, EnergySolutions, Genex break

By Sara Rosenberg

New York, May 22 - Floatel International Ltd.'s first-lien term loan made its way into the secondary market on Thursday with levels seen above its original issue discount, and Authentic Brands Group, Vocus Cision, Albaugh Inc., SunEdison Semiconductor Ltd. and Wyle Services Corp. freed up too.

Also, EnergySolutions LLC raised pricing on its term loan B, widened the original issue discount, modified the call protection and shortened the maturity, and Genex Holdings Inc. increased the size of its term loans and, on its first-lien tranche, tightened the offer price and extended the call protection, and then both of these deals broke for trading as well.

In addition, Electronic Funds Source LLC (WP Mustang Holdings LLC) sweetened terms on its first- and second-lien loans, 21st Century Oncology Inc. pulled its term loan B from market, Arizona Chemical Inc. disclosed timing on its credit facility launch, and Creative Circle LLC and Ryman Hospitality Properties (RHP Hotel Properties LP) surfaced with new deal plans.

Floatel hits secondary

Floatel International's $650 million six-year covenant-light first-lien term loan (B2/B) broke for trading on Thursday, with levels quoted at 99¾ bid, par ½ offered, according to a market source.

Pricing on the loan is Libor plus 500 basis points with a 1% Libor floor and it was sold at an original issue discount of 99. There is hard call protection of 102 in year one and 101 in year two, with a 35% equity claw at par.

Recently, the spread on the loan finalized at the high end of the Libor plus 475 bps to 500 bps talk, the call protection was revised from a 101 soft call for one year, an excess cash flow sweep was added of 50% above 3 times leverage, 25% between 2.5 times to 3 times leverage and 0% below, the MFN sunset was removed, the $50 million free and clear accordion was eliminated, the accordion construct became subject to additional 3.5 times net leverage with a new build facility carved out at 4 times, dividends became subject to 3 times net leverage pre an initial public offering and 3.5 times post an initial public offering, and annual appraisals became required.

Deutsche Bank Securities Inc. and Bank of America Merrill Lynch are leading the loan that will be used by the Sweden-based owner and operator of offshore vessels to refinance existing debt.

Authentic Brands breaks

Authentic Brands' term loans emerged in the secondary too, with the $320 million seven-year first-lien term loan seen at 99¼ bid, par ¼ offered and the $105 million eight-year second-lien term loan seen at 99½ bid, par ½ offered, according to a trader.

Pricing on the first-lien term loan is Libor plus 450 bps with a 1% Libor floor and it was sold at a discount of 99. There is 101 soft call protection for one year.

The second-lien loan is priced at Libor plus 800 bps with a 1% Libor floor and was sold at 99. This tranche has call protection of 102 in year one and 101 in year two.

Bank of America Merrill Lynch, KeyBanc Capital Markets, Barclays and Canaccord are leading the $425 million deal for the New York-based brand development and licensing company.

Authentic Brands recapitalizing

Proceeds from Authentic Brands will be used to refinance existing debt, redeem preferred stock, fund a dividend and purchase a minority interest in the Marilyn Monroe brand.

Earlier this week, the first-lien term loan was downsized from $335 million, pricing was raised from Libor plus 400 bps, the discount firmed at the wide end of the 99 to 99½ talk and the call protection was extended from six months, and the second-lien loan was cut from $130 million with pricing lifted from Libor plus 750 bps.

The term loan downsizings resulted in a reduction in the dividend size.

Other changes made during syndication included increasing the excess cash flow sweep to 75% with step-downs from 50% with step-downs, removing the $80 million general accordion basket and setting the incremental subject to 3.75 first-lien net leverage and 5.5 times net secured leverage, and eliminating the $20 million available amount starter basket and adding a 5.5 times total net leverage incurrence test for utilization of the available amount builder basket.

Vocus levels emerge

Vocus Cision's deal hit the secondary with both the $325 million seven-year first-lien term loan (B+) and the $115 million 71/2-year second-lien term loan (CCC+) quoted at 99¼ bid, par ¼ offered, according to a trader.

The first-lien term loan, of which $140 million is delayed-draw, is priced at Libor plus 500 bps with a 1% Libor floor and was sold at an original issue discount of 99. There is 101 soft call protection for one year.

Pricing on the second-lien term loan is Libor plus 850 bps with a 1% Libor floor and it was sold at 99. This debt has call protection of 102 in year one and 101 in year two and includes a $40 million delayed-draw tranche.

The term loans have a ticking fee of half the spread from days 31 to 90 and the full spread thereafter.

During syndication, pricing on the first-lien term loan was increased from Libor plus 450 bps, the discount widened from 99½ and call protection was extended from six months, pricing on the second-lien term loan was raised from Libor plus 800 bps, the MFN sunset provision was eliminated and the excess cash flow sweep was lifted to 75% with step-downs from 50%.

Vocus being acquired

Proceeds from Vocus' $465 million credit facility, which also includes a $25 million five-year revolver (B+), will be used with equity to fund its buyout by GTCR LLC for $18.00 per share, or about $446.5 million, and merger with Cision.

Jefferies Finance LLC, Deutsche Bank Securities Inc., BMO Capital Markets and AllyCommercial Finance are leading the deal.

Total leverage is 4.5 times.

Closing is expected by the end of this quarter, subject a minimum tender condition, clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and other customary conditions.

Beltsville, Md.-based Vocus and Cision are providers of cloud-based marketing and public relations software.

Albaugh frees up

Albaugh's credit facility also began trading, with the $300 million seven-year term loan B quoted at 98 bid, 98¾ offered, a market source said.

Pricing on the term loan is Libor plus 500 bps with a 1% Libor floor and it was sold at an original issue discount of 98. There is hard call protection of 102 in year one and 101 in year two.

During syndication, pricing on the B loan was lifted from revised talk of Libor plus 425 bps to 450 bps and initial talk of Libor plus 350 bps to 375 bps, the discount widened from revised talk of 99 and initial talk of 991/2, the call protection was changed from revised talk of a 101 soft call for one year and initial talk of a 101 soft call for six months, the amortization was increased to 5% per annum from 1%, a total net leverage covenant was added to the originally covenant-light loan and the MFN sunset provision was eliminated, setting the 50 bps MFN for life.

Albaugh lead banks

HSBC Securities (USA) Inc., Credit Suisse Securities (USA) LLC and J.P. Morgan Securities LLC are leading Albaugh's $385 million credit facility (B1/BB-) that also includes an $85 million five-year revolver.

The revolver size firmed during syndication from initial talk of up to $100 million.

Proceeds from the credit facility, which is expected to close and fund late in the week of May 26, will be used to refinance existing debt and for general corporate purposes.

Albaugh is an Ankeny, Iowa-based producer of generic crop protection products.

SunEdison wraps par

Another deal to break was SunEdison Semiconductor, with its $200 million term loan B quoted at 99½ bid, par ½ offered, a source said.

The term loan is priced at Libor plus 550 bps with a 1% Libor floor and was sold at a discount of 99. There is soft call protection of 102 in year one and 101 in year two, after being revised the other day from 101 soft call protection for one year.

The company's $250 million credit facility (B2/B) also includes a $50 million revolver.

Goldman Sachs Bank USA and Macquarie Capital are leading the deal that will repay intercompany notes in connection with the company's spinoff from SunEdison Inc. and initial public offering of ordinary shares.

SunEdison Semiconductor is a Toa Payoh, Singapore-based developer, manufacturer and seller of silicon wafers to the semiconductor industry.

Wyle starts trading

Wyle Services' $250 million seven-year term loan freed up as well, with the debt seen at 99¾ bid, a market source said.

Pricing on the loan is Libor plus 400 bps with a 25 bps step-down subject to Ba3/BB- corporate ratings. There is a 1% Libor floor and 101 soft call protection for one year, and the debt was sold at a discount of 99.

During syndication, the spread on the loan was increased from talk of Libor plus 350 bps to 375 bps, the step-down condition was revised from B1/B+ corporate ratings and the call protection was pushed out from six months.

J.P. Morgan Securities LLC, SunTrust Robinson Humphrey Inc. and Regions Capital Markets are leading the deal (B1/BB) that will be used to refinance existing debt.

Wyle is an El Segundo, Calif.-based provider of high-tech aerospace engineering, information technology and scientific services to the federal government.

EnergySolutions reworked

EnergySolutions lifted pricing on its $700 million first-lien covenant-light term loan B to Libor plus 575 bps from talk of Libor plus 425 bps to 450 bps, moved the original issue discount to 98 from talk of 99 to 991/2, changed the call protection to a 101 hard call for one year from a 101 soft call for six months and shortened the maturity to six years from seven years, according to a market source.

As before, the term still has a 1% Libor floor.

There were also some other updates to the term B, including setting the excess cash flow sweep at 50% with step-downs at 3 times and 2 times secured leverage, eliminating the MFN sunset, trimming the general basket to $30 million from $60 million and having the incremental facility subject to 3.5 times secured leverage, compared to a $100 million basket and 4 secured leverage previously, the source said.

Recommitments were due at 1 p.m. ET on Thursday.

EnergySolutions trades

By late afternoon, EnergySolutions' term loan B surfaced in the secondary, with levels quoted at 98¾ bid, 99½ offered on the break and then it moved up to 99 bid, 99¾ offered, traders said.

In addition to the term loan B, the company's $825 million senior secured credit facility (B3/BB-) includes a $125 million five-year revolver.

Morgan Stanley Senior Funding Inc., Barclays and Deutsche Bank Securities Inc. are leading the deal that will be used to refinance existing debt, including a $353 million term loan and $300 million of senior notes.

Pro forma leverage is 4.4 times.

EnergySolutions is a Salt Lake City-based nuclear commercial services company.

Genex updated

Genex lifted its first-lien term loan (B) to $195 million from $190 million, modified the original issue discount to 99½ from 99 and extended the 101 soft call protection to one year from six months, while keeping pricing at Libor plus 425 bps with a 1% Libor floor, a market source said.

Furthermore, the second-lien term loan (CCC+) was increased to $92.5 million from $90 million, while pricing remained at Libor plus 775 bps with a 1% Libor floor and a discount of 99, and the call protection was left at 102 in year one and 101 in year two, the source continued.

The company's now $317.5 million senior secured credit facility includes also includes a $30 million revolver (B).

Recommitments were due at 1 p.m. ET on Thursday, the source added.

Genex tops OIDs

With final terms and commitments in place, Genex freed up for trading in the afternoon, with the first-lien term loan quoted at par ¼ bid, par ¾ offered and the second-lien term loan quoted at par ½ bid, 101½ offered, a trader remarked.

Proceeds from the credit facility will be used to help finance the buyout of the company by Apax Partners, and the funds from the term loan upsizing are being used to reduce sponsor equity.

RBC Capital Markets, SunTrust Robinson Humphrey Inc. and UBS AG are leading the deal.

First-lien leverage is 4.38 times and total leverage is 6.4 times.

Genex is a Wayne, Pa.-based provider of integrated managed care services, focused on controlling health care costs and reducing disability expenses.

Electronic Funds revised

Also in the loan market, Electronic Funds Source widened pricing on its $495 million seven-year first-lien covenant-light term loan (B) to Libor plus 450 bps from talk of Libor plus 375 bps to 400 bps and extended the 101 soft call protection to one year from six months, while keeping the 1% Libor floor and discount of 99 intact, according to a market source.

In addition, pricing on the $250 million eight-year second-lien covenant-light term loan (CCC+) was flexed to Libor plus 750 bps from talk of Libor plus 700 bps to 725 bps, the original issue discount was changed to 97 from 99, and the call protection was revised to 103 in year one, 102 in year two and 101 in year three from 102 in year one and 101 in year two, the source said. This tranche still has a 1% Libor floor.

Electronic Funds revolver

Along with the term loans, Electronic Funds Source's $845 million credit facility includes a $100 million revolver (B).

Goldman Sachs Bank USA and Credit Suisse Securities (USA) LLC are the lead banks on the deal, with Goldman left lead on the first-lien and Credit Suisse left lead on the second-lien.

Proceeds will be used to help fund the buyout of the payments services company by Warburg Pincus from an investor group including First Data Transportation Services Inc., CTP Holdings LLC and FJ Management Inc.

Closing is expected this quarter, subject to customary conditions and regulatory approvals.

21st Century withdrawn

21st Century Oncology pulled its $430 million seven-year first-lien senior secured term loan B from the primary that was talked at Libor plus 425 bps to 450 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, a market source remarked.

The loan was withdrawn in connection with the company's decision to postpone its initial public offering of common stock and public offering of series A mandatory convertible junior non-voting preferred stock as a result of unfavorable market conditions.

Morgan Stanley Senior Funding Inc., J.P. Morgan Securities LLC, GE Capital Markets and Wells Fargo Securities LLC were leading the loan that was going to be used to refinance existing debt.

21st Century Oncology is a Fort Myers, Fla.-based provider of cancer care services.

Arizona Chemical timing

Arizona Chemical nailed down timing on its $940 million credit facility, scheduling a bank meeting for Wednesday to launch the transaction, according to a market source. When announced around mid-May, the deal was described as anticipated to launch within the next few weeks.

The facility consists of a $60 million five-year revolver (BB-), a $675 million seven-year covenant-light first-lien term loan (BB-) and a $205 million eight-year covenant-light second-lien term loan (B-).

Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC, Jefferies Finance LLC and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to refinance existing debt and fund a dividend.

Arizona Chemical is a Jacksonville, Fla.-based biorefiner of pine chemicals.

Creative Circle on deck

Creative Circle set a bank meeting for Wednesday to launch a $200 million credit facility, according to a market source.

The facility consists of a $15 million revolver (B1/B+), a $150 million first-lien term loan (B1/B+) and a $35 million second-lien term loan (Caa1/CCC+), the source said.

Societe Generale is leading the deal that will be used to refinance existing debt and fund a dividend.

Senior leverage is 3.7 times and total leverage is 4.6 times, the source added.

Creative Circle is a Los Angeles-based provider of specialized freelance and permanent staffing for advertising, creative, digital/IT marketing talent.

Ryman readies deal

Ryman Hospitality Properties will hold a bank meeting at 10 a.m. ET in New York on Wednesday to launch a $400 million covenant-light term loan B due January 2021 that has 101 soft call protection for six months, according to a market source.

Deutsche Bank Securities Inc., Wells Fargo Securities LLC, J.P. Morgan Securities LLC, Bank of America Merrill Lynch and U.S. Bank are leading the deal.

Proceeds will be used to repay revolver borrowings and for general corporate purposes.

Ryman is a Nashville, Tenn.-based real estate investment trust specializing in group-oriented, destination hotel assets in urban and resort markets.

Corporate Capital closes

In other news, Corporate Capital Trust completed its $400 million five-year senior secured term loan B that is priced at Libor plus 325 bps with a 0.75% Libor floor and was sold at an original issue discount of 991/2, a news release said. The loan is non-callable for one year.

During syndication, the size of the term loan firmed from a revised amount of a minimum of $350 million and an original amount of $500 million, pricing was lifted from talk of Libor plus 275 bps to 300 bps, the discount was set at the wide end of the 99½ to 99¾ talk, the call protection was changed from a 101 soft call for six months and the maturity was shortened from seven years.

J.P. Morgan Securities LLC was the lead arranger on the deal. Joint book runners and co-syndication agents on the loan included JPMorgan, Mizuho Bank Ltd., HSBC Securities (USA) Inc., Bank of America Merrill Lynch, Barclays and Greensledge Capital Markets LLC.

Proceeds were used to pay down revolver borrowings and to fund new investments in portfolio companies.

Corporate Capital amends

Along with the new term loan, Corporate Capital Trust amended its senior secured credit facility to increase the capacity to $900 million from $600 million.

The committed capacity is currently at $490 million, representing lending commitments from 16 commercial banks, the news release added.

Corporate Capital Trust is an Orlando-based business development company that invests in privately owned American companies.

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