Multiple deals break; Allison, Darling, Alcatel, ARC, Open Text, HydroChem, Vantage revised

By Sara Rosenberg

New York, Dec. 18 - Air Medical Group Holdings Inc. finalized pricing on its B loan at the high end of guidance, set the discount on the add-on debt at the wide side of talk and hit the secondary market on Wednesday.

Other deals to free up included Berry Plastics Corp., Valeant Pharmaceuticals International Inc., Moxie Patriot LLC, Chesapeake Services Ltd./Multi Packaging Solutions Inc., Alexander Mann Solutions (Violin Finco SARL), American Gaming Systems and Charming Charlie LLC.

In more happenings, Allison Transmission Holdings Inc. increased the size of its add-on term loan B-3 and tightened the original issue discount, Darling International Inc. upsized its term loan B and updated pricing and Alcatel-Lucent USA Inc. finalized the coupon on its term loan C at the high side of talk and changed the ticking fee.

Also, ARC Document Solutions Inc. reduced its loan size while widening the spread and discount, Open Text Corp. increased the spread on its term loan B, HydroChem (previously known as Aquilex Holdings) firmed its B loan coupon at the low end of talk, added a step-down and revised the discount price, and Vantage Energy LLC flexed pricing higher on its second-lien deal.

Air Medical updates, trades

Air Medical Group firmed pricing on its $313.1 million term loan B at Libor plus 400 basis points, the high end of the Libor plus 375 bps to 400 bps talk, according to a market source.

Proceeds will be used to reprice an existing $258.1 million term loan B from Libor plus 525 bps with a 1.25% Libor floor, and the $55 million of incremental funds being raised will be used to refinance some of the company's 9¼% senior secured notes due in 2018.

The original issue discount on the add-on finalized at 991/2, the wide side of the 99½ to par talk, and the offer price on the repricing remained at par, the source said.

The 1% Libor floor, 101 soft call protection for six months and amortization of 1% per annum on the entire tranche were unchanged.

With final terms in place, the deal broke for trading on Wednesday afternoon, with levels quoted at par bid, par ½ offered, a trader added.

Barclays, Bank of America Merrill Lynch, Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Morgan Stanley Senior Funding Inc. are leading the deal for the San Antonio, Texas-based provider of community-based air ambulance services.

Berry Plastics frees up

Berry Plastics' $1,125,000,000 seven-year first-lien covenant-light term loan E (B1/B+) also emerged in the secondary, with levels quoted at 99 7/8 bid, par ¼ offered, according to a trader.

Pricing on the loan is Libor plus 275 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.

Earlier in the week, pricing on the loan firmed at the low end of the Libor plus 275 bps to 300 bps talk and the discount was tightened from 99.

Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc. and Barclays are leading the deal that will be used to refinance the company's existing term loan C due April 2015 priced at Libor plus 200 bps.

Berry Plastics is an Evansville, Ind.-based maker of plastic consumer packaging.

Valeant hits secondary

Valeant Pharmaceuticals' $2.95 billion term loan B-series E due August 2020 broke too, with levels seen by one trader at par 5/8 bid, 101 offered.

Pricing on the loan is Libor plus 300 bps with a step-down to Libor plus 275 bps at 1.75 times secured leverage and a 0.75% Libor floor. The debt has a ticking fee of the full spread from Jan. 1, 2014 through Feb. 5, 2014, and 101 soft call protection for six months, and was issued at par.

Recently, the loan size firmed from revised talk of at least $2.8 billion and initial talk of roughly $3.18 billion, pricing was set at the wide end of the Libor plus 275 bps to 300 bps talk, the step-down was added and the ticking fee was increased from half the spread from Jan.6, 2014 through Feb. 5, 2014.

Proceeds will be used to help refinance/reprice an existing roughly $3.18 billion term loan B-series E that is priced at Libor plus 375 bps with a 0.75% Libor floor.

J.P. Morgan Securities LLC is leading the deal that will have a delayed settlement until after the existing 101 soft call protection rolls off on Feb. 5, 2014.

Valeant is a Bridgewater, N.J.-based specialty pharmaceutical company.

Moxie Patriot levels

Moxie Patriot's $585 million of seven-year term loan debt (B+) started trading during the session, with levels quoted at 101 bid, 102 offered on the open, a market source said.

The debt, comprised of a $380 million funded term loan B and a $205 million delayed-draw for one year term loan B, is priced at Libor plus 575 bps with a 1% Libor floor and was sold at an original issue discount of 99. The debt is non-callable for 2½ years, then at 102 for a year and 101 for the following year.

During syndication, the funded term loan was downsized from $385 million, the delayed-draw loan was upsized from $200 million and pricing on both tranches was reduced from talk of Libor plus 600 bps to 625 bps.

Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC, Ares Capital and Union Bank of California are leading the deal that will be used to help fund the construction of the Patriot Generation Plant, an 829-megawatt natural gas fired power plant in Lycoming County, Pa.

Closing is expected on Thursday, the source added.

Chesapeake breaks

Chesapeake Services/Multi Packaging Solutions allocated its bank debt, and the new $122 million term loan B due Sept. 30, 2020 and $280 million "rollover" term loan B due Sept. 30, 2020 freed up for trading at par bid, par ½ offered, according to a trader.

Pricing on the U.S. term loan B's is Libor plus 325 bps with a 1% Libor floor, and the debt was sold at a discount of 993/4. There is 101 soft call protection through March 30, 2014.

As part of its amended and restated credit facility, the company is also getting a £50 million multicurrency revolver due Sept. 30, 2019 priced at Libor plus 400 bps with a 25 bps step-down at 3.5 times first-lien leverage, a $50 million revolver due Aug. 15, 2018 priced at Libor plus 325 bps with a 25 bps step-down at 3 times first-lien leverage, a £145 million term loan B due Sept. 30, 2020 priced at Libor plus 500 bps with a 1% Libor floor and a €172.6 million term loan B due Sept. 30, 2020 priced at Euribor plus 450 bps with a 1% floor. The term loans have 101 soft call protection through Sept. 30, 2014.

Multi Packaging's existing lenders can be repaid at par or roll into the amended and restated Chesapeake senior secured credit facility.

Chesapeake lenders were offered a 25 bps fee for consents.

Chesapeake/Multi leads

Barclays and Credit Suisse Securities (USA) LLC are leading Chesapeake Services/Multi Packaging Solutions bank debt (B1/B+) that is being done in connection with the merger of the two companies.

Proceeds from the new term loan will be used for an equalization payment and to pay transaction related fees and expenses.

Pro forma leverage is 4.1 times on a senior secured basis and 4.9 times on a net total basis.

Chesapeake, owned by Carlyle Group LP, is a U.K.-based manufacturer of consumer packaging. Multi Packaging, owned by Madison Dearborn Partners LLC, is a New York-based provider of packaging services to the health care, consumer and multi-media end markets.

Upon completing the merger, ownership in the combined company will be split evenly between Carlyle and Madison Dearborn.

Closing is expected in the first quarter of 2014, subject to customary conditions, including regulatory approval.

Alexander Mann tops OID

Alexander Mann Solutions' credit facility began trading too, with the $160 million six-year first-lien term loan quoted at 99½ bid, par offered, according to a market source.

Pricing on the term loan is Libor plus 475 bps with a 1% Libor floor and it was sold at an original issue discount of 99. The debt has 101 soft call protection for one year.

Recently, the term loan was upsized from $150 million and pricing was lowered from Libor plus 525 bps.

The company's $200 million credit facility also includes a $40 million five-year revolver.

Credit Suisse Securities (USA) LLC, HSBC Securities (USA) Inc. and ING Capital are leading the deal that will be used with equity - the amount of which was reduced when the term loan was upsized - to fund the buyout of the company by New Mountain Capital LLC.

The transaction is subject to EU Competition Commission approval.

Alexander Mann is a London-based talent acquisition and management business.

American Gaming frees

American Gaming's credit facility started trading as well, with the $155 million term loan quoted at 97 bid, 98 offered, a trader remarked.

The term loan is priced at Libor plus 825 bps with a 1% Libor floor and was sold at a discount of 97. The debt is non-callable for one year, then at 102 in year two and 101 in year three.

The other day, pricing on the term loan was lifted from talk of Libor plus 750 bps to 775 bps and the discount widened from 98.

The company's $180 million credit facility also includes a $25 million revolver.

Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Nomura and Credit Suisse Securities (USA) LLC are leading the deal that will be used to help fund the buyout of the company by Apollo.

American Gaming is a Las Vegas-based manufacturer and operator of gaming machines.

Charming Charlie trades

Charming Charlie's $150 million six-year term loan B (B2/B-) also hit the secondary, with levels seen at 99½ bid, par ½ offered, a market source said.

Pricing on the loan is Libor plus 800 bps with a 1% 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.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to repurchase a share of equity stake in the company.

Charming Charlie is a Houston-based retailer of jewelry and accessories for women.

Allison tweaks deal

Back in the primary, Allison Transmission lifted its add-on senior secured covenant-light term loan B-3 due Aug. 23, 2019to $650 million from $500 million and moved the original issue discount to 99½ from 99, according to a market source.

As before, the loan is priced at Libor plus 275 bps with a 1% Libor floor and has 101 soft call protection until Feb. 26, 2014.

Recommitments were due at 1 p.m. ET on Wednesday, the source said.

Citigroup Global Markets Inc. is leading the deal that will be used by the Indianapolis-based automatic transmission company to refinance some term loan debt due in 2017.

Closing is expected to occur on Dec. 27.

Darling reworked

Darling International raised its euro-equivalent seven-year covenant-light term loan B to $700 million from $600 million and set pricing at Euribor plus 275 bps, the low end of the Euribor plus 275 bps to 300 bps talk, according to a market source. The 0.75% floor, discount of 99½ and 101 soft call protection for six months were unchanged.

As for the $600 million U.S. seven-year covenant-light term B, pricing firmed at Libor plus 250 bps, the tight end of the Libor plus 250 bps to 275 bps, and the discount was moved to 99¾ from 991/2, the source said, adding that the 0.75% Libor floor and 101 soft call protection for six months were left intact.

J.P. Morgan Securities LLC, BMO Capital Markets and Goldman Sachs Bank USA are leading the term loan B (Ba2) that will be used to help fund the roughly €1.6 billion acquisition of Vion Ingredients from Vion Holding NV, and due to the upsizing, to pay down some revolver debt.

Closing is targeted for January, subject to customary regulatory approvals and finalization of the required employee consultations in the Netherlands.

Darling is an Irving, Texas-based provider of rendering, recycling and recovery services to the food industry. Vion Ingredients is a Son en Breugel, the Netherlands-based developer and producer of specialty ingredients from animal origin.

Alcatel sets spread

Alcatel-Lucent firmed pricing on its $1,736,874,999 term loan C due Jan. 30, 2019 at Libor plus 350 bps, the wide end of the Libor plus 325 bps to 350 bps, and modified the ticking fee to the full spread starting on Jan. 1 from half the spread starting on Jan. 6 until the repricing is effective on Feb. 18, according to a market source.

As before, the loan has a 1% Libor floor, a par offer price and 101 soft call protection for six months.

Recommitments were due at 4 p.m. ET on Wednesday, the source said.

Morgan Stanley Senior Funding Inc. and Credit Suisse Securities (USA) LLC are leading the deal that will be used to reprice the existing term loan C from Libor plus 475 bps with a 1% Libor floor.

Alcatel is a Paris-based telecommunications services and equipment company.

ARC modified

ARC Document Solutions trimmed its five-year term loan B (B1/B+) to $200 million from $205 million, lifted pricing to Libor plus 525 bps from Libor plus 450 bps, moved the discount to 98 from 99, sweetened the soft call protection to 102 in year one and 101 in year two from just 101, and beefed up amortization to 5% per annum, according to a market source.

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

J.P. Morgan Securities LLC and Wells Fargo Securities LLC are leading the deal that will be used to repurchase 10½% senior notes due 2016.

ARC is a Walnut Creek, Calif.-based provider of technology and document-related services.

Open Text lifts pricing

Open Text raised the coupon on its $800 million seven-year senior secured term loan B (BBB) to Libor plus 250 bps from Libor plus 225 bps and eliminated the MFN sunset provision, according to a market source.

As before, the loan has a 0.75% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months.

Leads, Barclays and RBC Capital Markets, were asking for recommitments by 5 p.m. ET on Wednesday.

Proceeds, along with $265 million of cash and $100 million of equity, will be used to fund the $1,165,000,000 acquisition of GXS Group Inc.

Closing is subject to customary regulatory approvals and conditions.

Open Text is an Ontario-based provider of enterprise information management software that helps companies manage, secure and leverage their unstructured business information. GXS is a Gaithersburg, Md.-based B2B integration services provider.

Hydrochem changes emerge

HydroChem set pricing on its $250 million seven-year term loan B at Libor plus 400 bps, the tight end of the Libor plus 400 basis bps to 425 bps talk, added a step-down to Libor plus 375 bps based on leverage and modified the original issue discount to 99¾ from 991/2, according to a market source.

Unchanged on the B loan was the 1% Libor floor and 101 soft call protection.

The company's $300 million senior credit facility (B2/B) also includes a $50 million six-year revolver priced at Libor plus 400 bps with no floor. This tranche also saw its spread come at the low end of the Libor plus 400 bps to 425 bps talk.

Recommitments were due end of day on Wednesday, the source added.

GE Capital Markets is leading the deal that will be used to fund the acquisition of Inland Industrial Services Group LLC, an industrial cleaning company, from Strength Capital Partners LLC and to refinance existing debt.

HydroChem, a provider of industrial cleaning solutions for the petrochemical production, oil refining, power generation, metals and pulp and paper industries, expects to close on the transaction by year-end.

Vantage Energy revised

Vantage Energy widened pricing on its $200 million five-year second-lien term loan to Libor plus 750 bps from Libor plus 675 bps, while keeping the 1% Libor floor, original issue discount of 99 and call protection of non-callable for one year, then at 101 in year two intact, a market source said.

Other changes involved a minimum PDP test, capital expenditures restriction and hedging requirement, the source continued.

Recommitments were due at 5 p.m. ET on Wednesday.

Credit Suisse Securities (USA) LLC and Wells Fargo Securities LLC are leading the deal that will be used to repay revolver borrowings and for general corporate purposes.

Vantage Energy is an Englewood, Colo.-based oil and gas exploration company in the Barnett and Marcellus shales.

Spectrum Brands closes

In other news, Spectrum Brands Holdings Inc. completed its $215 million U.S. term loan due September 2019 and €225 million term loan due September 2019, a news release said.

Pricing on the U.S. loan is Libor plus 275 bps with a 0.75% Libor floor and it was sold at a discount of 99 7/8. There is 101 soft call protection through March 2014.

The euro loan is priced at Euribor plus 300 bps with a 0.75% floor and was sold at 99 7/8. This tranche has 101 soft call protection for six months.

During syndication, the U.S. loan was downsized from $250 million and the discount firmed at the tight end of the 99¾ to 99 7/8 talk, and the euro loan was upsized from €200 million, the floor was cut from 1% and the discount firmed at the low end of the revised 99¾ to 99 7/8 talk and tight of initial talk of 993/4.

Deutsche Bank Securities Inc. and Credit Suisse Securities (USA) LLC led the deal (BB/BB+) that was used to repay a $513 million U.S. term loan B due December 2019 priced at Libor plus 325 bps with a 1.25% Libor floor.

Spectrum Brands is a Madison, Wis.-based consumer products company.

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