Custom Building, Prestige break; Charter extends trades; Ineos, HCA up; Supervalu fees emerge

By Sara Rosenberg

New York, March 17 - Custom Building Products Inc.'s and Prestige Brands Inc.'s credit facilities hit the secondary market on Wednesday, and Charter Communications Operating LLC's extended term loan began trading.

Also in the secondary, Ineos Group Ltd.'s dollar term loan strip was stronger after the company announced refinancing plans for a significant portion of its senior debt, HCA Inc.'s term loan B was up with extension news and Lear Corp.'s second-lien term loan softened on repayment chatter.

In other news, Supervalu Inc. disclosed the fees that lenders are being offered for an amendment and extension proposal, and Skilled Healthcare Group Inc. came out with price talk on its proposed term loan as the transaction was presented to lenders in the morning.

Custom Building frees up

Custom Building Products' credit facility allocated and freed up for trading during Wednesday's market hours, with the term loan B quoted higher than the discount price at which it was sold during syndication, according to traders.

One trader said that the $295 million term loan B was quoted at par ¾ bid, 101¼ offered late in the day, but had been as high as 101 bid, 101½ offered, while a second trader said that it broke at par 3/8 bid, par ¾ offered and was then par ½ bid, par ¾ offered at the end of the day.

Pricing on the term loan B is Libor plus 400 basis points with a 1.75% Libor floor, and it was sold at an original issue discount of 99.

Custom Building getting revolver

Custom Building Products' $320 million credit facility also includes a $25 million revolver priced at Libor plus 400 bps with a 1.75% Libor floor and an unused fee of 75 bps.

Bank of America and RBC are the lead banks on the deal.

Proceeds will be used to refinance existing debt.

Custom Building Products is a Seal Beach, Calif.-based provider of installation services for tile and stone.

Prestige Brands breaks

Prestige Brands' senior secured credit facility (Ba2/BB) also freed up for trading, with the $150 million term loan B quoted at 99¼ bid, 99¾ offered on the break and then moving to par bid, par ½ offered, according to a trader.

The term loan B is priced at Libor plus 325 bps with a 1.5% Libor floor, and was sold at an original issue discount of 99.

Bank of America and Deutsche Bank are the lead banks on the $180 million deal, which also includes a $30 million revolver.

Proceeds will be used to refinance existing debt.

Prestige Brands is an Irvington, N.Y.-based marketer of branded over-the-counter health care products, household cleaning products and personal care products.

Charter extended starts trading

Charter Communications' $3 billion extended term loan began trading on Wednesday, with levels quoted at 97 3/8 bid, 97 5/8 offered, according to a trader.

Meanwhile, the non-extended term loan was quoted at 96 3/8 bid, 96 5/8 offered, down from 96½ bid, 96¾ offered on Tuesday, the trader added.

Pricing on the term loan that is being extended by 2½ years to September 2016 is Libor plus 325 bps, whereas the non-extended term loan is priced at Libor plus 200 bps.

Initially, the company was only planning on extending about $2 billion of the term loan, but that amount was later upsized.

Charter lead banks

Bank of America, Citigroup, Credit Suisse, Deutsche Bank, GE Capital, JPMorgan and UBS Securities are the joint lead arrangers and bookrunners on the Charter deal, and US Bank is a senior managing agent.

As part of the amendment, a new at least $1.2 billion revolver is being created that will mature in March 2015, a two-year maturity extension from the existing revolver.

Pricing on the extended revolver is Libor plus 300 bps.

Closing is expected to take place by March 31, but the required amount of consents for the amendment has already been received.

Lenders are getting a 10 bps amendment fee.

Charter is a St. Louis-based broadband communications company and cable operator.

Ineos gains ground

Ineos' U.S. dollar term loan strip moved higher in trading as the company said that it expects to make a significant prepayment of its senior debt at par through the issuance of new senior secured notes and term loans, according to traders.

The Lyndhurst, England-based chemical company's term loan B and C strip was quoted by one trader at 97¾ bid, 98¾ offered, up from 96½ bid, 97½ offered.

And, a second trader had the strip of debt quoted at 97¾ bid, 98¼ offered, up from 96¼ bid, 97 offered.

Under the refinancing plan, Ineos expects to issue around €1 billion of senior secured notes and term loans with maturity of at least five years.

Ineos needs approvals

Ineos' proposed refinancing transaction is contingent on approval by senior lenders and the consent of holders of a majority of the company's existing high-yield bonds.

The company said in a news release that the proposal would reinforce its financial position as trading results improve.

Also, the refinancing would extend its debt maturity profile, with no material debt amortization until December 2013, improving ongoing financial flexibility and liquidity.

Barclays Capital and JPMorgan are acting as joint coordinators and bookrunners on the senior loan transaction and solicitation agents for the high-yield bonds.

HCA strengthens

HCA's term loan B headed up to 97 3/8 bid, 97 5/8 offered from 96¾ bid, 97 offered as the company launched a proposal to extend $1 billion or more of the debt to March 2017 from November 2013, according to a trader.

Pricing on the extended debt would be Libor plus 325 bps, compared to pricing of Libor plus 225 bps on the non-extended term loan B.

Bank of America, Citigroup and JPMorgan are the lead banks on the deal and are asking for commitments by March 31.

No amendment is needed for the extension since one was already obtained in June 2009.

HCA is a Nashville-based owner and operator of hospitals and surgery centers.

Lear second-lien slides

Lear's second-lien term loan was a little bit lower after the company launched an amendment that would allow for the sale of at least $350 million in unsecured debt to repay some of the loan, according to a trader.

The proposed amendment would also allow the application of existing cash to repay the remaining amounts outstanding under the second-lien loan.

In order for the amendment to pass, the company needs consents from majority of the lenders under the first-lien credit facility.

Following the news, the second-lien loan was quoted at par ¼ bid, par ¾ offered, down from par ½ bid, 101 offered, the trader said.

Lear seeks commitments

In addition, Lear said on Wednesday that it is looking for commitments from lenders for an additional three-year revolving credit facility of $100 million to $125 million.

Proceeds from the revolver would be used for general corporate and working capital purposes and to issue letters of credit.

JPMorgan is the administrative agent on the deal.

Lear is a Southfield, Mich.-based automotive parts supplier.

Supervalu reveals fees

Supervalu held a call on Wednesday at 10 a.m. ET to launch an amendment and extension of its credit facility, and at that time, lenders were given details on the fees that they are being offered, according to a market source.

On the term loan, lenders will get a 20 bps amendment fee and a 50 bps extension fee, the source remarked.

On the revolver, lenders will get a 20 bps amendment fee and upfront fees based on the amount that is extended.

Specifically, the revolver upfront fee is 100 bps for the extension of $100 million or more, 75 bps for the extension of $75 million to $100 million, 62.5 bps for the extension of $50 million to $75 million, and 37.5 bps for the extension of less than $50 million.

Supervalu amendment details

As was previously reported, under the amendment proposal, Supervalu is looking to extend $1.5 billion of its revolver to April 2015 from June 2011 and $500 million of its term loan B to October 2015 from June 2012.

Pricing on the extended revolver will be Libor plus 225 bps, compared to pricing of Libor plus 100 bps on the non-extended revolver, and pricing on the extended term loan B will be Libor plus 275 bps, compared to Libor plus 125 bps on the non-extended.

No extension is being sought for the company's term loan A.

RBS and Credit Suisse are the lead arrangers on the deal.

Supervalu is an Eden Prairie, Minn.-based supermarket operator.

Skilled Healthcare price talk

In more loan happenings, Skilled Healthcare Group held a bank meeting on Wednesday in New York with a 10 a.m. ET start time to launch its proposed credit facility, and in connection with the event, price talk on the term loan emerged, according to sources.

The $330 million term loan is being talked at Libor plus 350 bps to 375 bps with a 1.75% Libor floor and an original issue discount of 99, sources said.

By comparison, prior to the launch, one market source had heard rumors of price talk in the Libor plus 375 bps area with a possible 1.5% Libor floor on the new loan.

The company's $430 million credit facility also includes a $100 million revolver.

Skilled Healthcare refinancing debt

Proceeds from Skilled Healthcare's credit facility will be used to refinance its existing senior secured credit facility that consists of a $260 million term loan and a $135 million revolver.

The goal of the refinancing is to extend maturities and revise certain covenants, the company said in a recent news release.

Credit Suisse, Barclays, JPMorgan and Bank of America are the lead banks on the new deal, with Credit Suisse the left lead.

Secured leverage is 3.1 times and total leverage is 4.2 times.

Skilled Healthcare is a Foothill Ranch, Calif.-based health care services company.

Solutia closes

Solutia Inc. closed on its new $1.15 billion senior secured credit facility (Ba2), consisting of an $850 million term loan B due in 2017 and a $300 million revolver due in 2015, according to a news release.

The term loan B is priced at Libor plus 325 bps with a step down to Libor plus 300 bps at 2.5 times leverage and a 1.5% Libor floor, and it was sold at an original issue discount of 991/2. The revolver is priced at Libor plus 350 bps with no Libor floor.

During syndication, the term loan B was upsized from $750 million, pricing firmed at the low end of initial talk of Libor plus 325 bps to 350 bps, the step-down was added and the original issue discount was lowered from 99.

Deutsche Bank, Jefferies, Citigroup, HSBC and JPMorgan acted as the joint lead arrangers and joint bookrunners on the deal that is being used to repay the company's existing $876 million term loan and replace the existing asset-based revolver.

Solutia is a St. Louis-based performance materials and specialty chemicals company.

International Lease closes

International Lease Finance Corp. closed on its $1.3 billion in term loans on Wednesday, according to an 8-K filed with the Securities and Exchange Commission.

The debt is comprised of a $750 million senior secured term loan (Ba2/BBB/BBB-) priced at Libor plus 475 bps and a $550 million six-year term loan (Ba3/BBB-/NA) priced at Libor plus 500 bps.

Both terms loans include a 2% Libor floor and were sold at an original issue discount of 98.

The $750 million loan has call protection of 101 in year one and the $550 million loan has call protection of 102 in year one and 101 in year two.

During syndication, pricing on the $750 million term loan firmed at the tight end of initial talk of Libor plus 475 bps to 500 bps and the $550 million term loan was added to the deal.

Bank of America and Goldman Sachs acted as the lead banks on the loans that are being used to refinance existing debt and for general corporate purposes.

International Lease is a Los Angeles-based leaser and remarketer of advanced technology commercial jet aircraft to airlines.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.