Digital Cinema, Teine, KIK Custom Products, HCA break; Atlantic Broadband finalizes coupon

By Sara Rosenberg

New York, May 17 - Digital Cinema Implementation Partners LLC's credit facility freed up for trading on Friday, with the term loan B quoted above its issue price, and Teine Energy Ltd., KIK Custom Products Inc. and HCA Inc. hit the secondary market as well.

Moving to the primary, Atlantic Broadband Group LLC firmed pricing on its term loan at the low end of guidance, BioScrip Inc. revealed timing and structure on its credit facility, and Cunningham Lindsey Group Ltd., Globe Energy Services LLC and NRG Energy Inc. announced new deal plans.

Digital Cinema frees up

Digital Cinema Implementation Partners' credit facility made its way into the secondary market on Friday, with the $680 million eight-year term loan B quoted at par ½ bid, 101½ offered and then it moved to par ¼ bid, 101¼ offered, according to a market source.

Pricing on the term loan is Libor plus 250 basis points with a 0.75% Libor floor, and it was issued at par. There is 101 soft call protection for one year.

During syndication, pricing on the loan was reduced from Libor plus 275 bps and the offer price was tightened from 991/2.

Also included in the company's $755 million credit facility (Baa2) is a $75 million five-year revolver.

Barclays and Credit Suisse Securities (USA) LLC led the deal that closed on Friday and was used to refinance existing bank debt.

Digital Cinema is a Mahwah, N.J.-based digital cinema integrator.

Teine tops OID

Teine Energy's credit facility broke too, with the $300 million six-year second-lien term loan quoted at par ¼ bid, 101¼ offered, a market source said.

Pricing on the loan is Libor plus 625 bps with a 1.25% Libor floor, and it was sold at an original issue discount of 981/2. There is hard call protection of 102 in year one and 101 in year two.

Recently, the loan was upsized from $200 million and pricing was reduced from talk of Libor plus 650 bps to 675 bps.

The company's new credit facility also includes a C$175 million five-year revolver.

Barclays is leading the deal that will be used to refinance existing debt and for general corporate purposes.

Net debt is 1.6 times.

Teine Energy is a Calgary, Alta.-based company focused on acquiring and developing low-cost, repeatable, long reserve life index, high netback oil and gas assets.

KIK starts trading

KIK Custom Products also freed up, with the $420 million six-year first-lien covenant-light term loan (B3/B-) quoted at 99½ bid and the $220 million 61/2-year second-lien covenant-light term loan (Caa2/CCC) quoted at 98½ bid, according to a market source.

Pricing on the first-lien term loan is Libor plus 425 bps with a 1.25% Libor floor, and it was sold at an original issue discount of 99. There is 101 repricing protection for one year.

The second-lien term loan, meanwhile, is priced at Libor plus 825 bps with a 1.25% floor, and was sold at 98. This tranche has call protection of 103 in year one, 102 in year two and 101 in year three.

Credit Suisse Securities (USA) LLC, UBS Investment Bank, RBC Capital Markets and Scotia Capital (USA) Inc. are leading the $715 million credit facility, which also includes a $75 million ABL revolver.

Proceeds will be used to refinance existing bank debt.

KIK is a Concord, Ont.-based manufacturer of retail-branded bleach.

HCA breaks

HCA's $726 million term loan A-4 due February 2016 broke as well, with levels quoted at par ¼ bid, a trader remarked.

Pricing on the loan is Libor plus 250 bps with no Libor floor, and it was issued at par. There is 101 soft call protection for six months.

Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Wells Fargo Securities LLC, Deutsche Bank Securities Inc. and Barclays are the lead banks on the deal.

Proceeds are being used to refinance an existing term loan A-3 that is priced at Libor plus 325 bps with no floor.

HCA is a Nashville-based health care company.

Atlantic Broadband spread

Switching to the primary, Atlantic Broadband firmed pricing on its $419 million term loan B at Libor plus 250 bps, the tight end of the Libor plus 250 bps to 275 bps talk, according to a market source.

The loan still has a 0.75% Libor floor, a par offer price and 101 soft call protection for six months.

Bank of America Merrill Lynch is leading the deal that will be used to reprice an existing term loan B from Libor plus 350 bps with a 1% Libor floor.

Atlantic Broadband is a Quincy, Mass.-based cable system operator.

BioScrip details emerge

BioScrip set a bank meeting for Thursday morning to launch its $325 million senior secured credit facility, which is now known to include a $75 million revolver and a $250 million covenant-light term loan B, according to a market source.

SunTrust Robinson Humphrey Inc., Jefferies Finance LLC and Morgan Stanley Senior Credit Funding Inc. are leading the deal.

Proceeds will be used to refinance an existing asset-based revolver, to redeem 10¼% senior unsecured notes and for working capital and general corporate purposes.

BioScrip is an Eden Prairie, Minn.-based provider of comprehensive infusion and home care solutions.

Cunningham readies add-on

Cunningham Lindsey scheduled a call for Monday to launch a $75 million add-on to its first-lien covenant-light term loan B that is priced at Libor plus 375 bps with a 1.25% Libor floor, according to a market source.

The offer price on the add-on is still to be determined, the source said.

Bank of America Merrill Lynch is leading the deal that will be used for general corporate purposes.

Cunningham Lindsey is a Tampa, Fla.-based provider of independent loss adjusting and claims management services.

Globe Energy coming soon

Globe Energy Services will hold a bank meeting on Tuesday to launch a $350 million six-year covenant-light term loan that will be used to refinance existing debt, according to a market source.

Bank of America Merrill Lynch, Wells Fargo Securities LLC and RBC Capital Markets are leading the transaction.

Globe Energy is a Snyder, Texas-based oilfield services company.

NRG plans loan

NRG Energy scheduled a call for 1 p.m. ET on Monday to launch a $450 million incremental term loan, a repricing of its existing term loan and a repricing and extension of its revolver, according to a market source.

Morgan Stanley Senior Funding Inc. and Citigroup Global Markets Inc. are the lead banks on the deal, with Morgan Stanley leading the term loan and Citigroup leading the revolver.

NRG Energy is a wholesale power generation company with headquarters in Princeton, N.J., and Houston.

Xerium closes

In other news, Xerium Technologies Inc. closed on its $240 million credit facility that consists of a $200 million six-year covenant-light term loan (Ba3/BB-) and a $40 million asset-based revolver, according to a news release.

Pricing on the term loan is Libor plus 500 bps with a 1.25% Libor floor, and it was sold at an original issue discount of 991/2. There is a step-down starting Sept. 30 to Libor plus 450 bps if leverage falls below 2 times and 101 soft call protection for six months.

During syndication, the discount on the term loan was tightened from 99 and the call protection was shortened from one year.

Jefferies Finance LLC led the deal that was used to refinance existing U.S. and euro term loans.

Senior leverage is 2 times. Leverage through the company's notes is around 4.4 times.

Xerium is a Raleigh, N.C.-based manufacturer of clothing and roll covers used primarily in the paper production process.

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