Alliance Laundry, Atlas Iron break; Dex debt, SuperMedia strengthen; MedAssets revises deal

By Sara Rosenberg

New York, Dec. 7 - Alliance Laundry Systems LLC's credit facility made its way into the secondary market during Friday's market hours, with bids on both the first- and second-lien debt quoted above par, and Atlas Iron Ltd. freed up too.

Also in trading, Dex West, Dex East, R.H. Donnelley Inc. and SuperMedia Inc. all saw their terms loans continue to rise on the back of amendment revision news.

Over in the primary, MedAssets Inc. revised its transaction, downsizing the term loan B while reducing the coupon on the tranche, MGM Resorts International came out with official guidance with its bank meeting and Landmark Aviation released original issue discount talk.

Additionally, Aramark Corp. and CTI Foods LLC are getting ready to bring incremental term loans to market and began circulating some price talk on their deals.

Alliance Laundry frees up

Alliance Laundry's credit facility broke for trading on Friday, with its $375 million six-year covenant-light first-lien term loan (B2/B) seen at par ¼ bid, 101 offered, and its $110 million seven-year covenant-light second-lien term loan (Caa2/CCC+) quoted at par ½ bid, according to trader.

Pricing on the first-lien term loan is Libor plus 425 bps with a step-down to Libor plus 400 bps at 4¾ times leverage. There is a 1.25% Libor floor and 101 soft call protection for one year, and the debt was sold at an original issue discount of 991/2.

The second-lien loan is priced at Libor plus 825 bps with a 1.25% floor and was sold at a discount of 99. The tranche has call protection of 103 in year one, 102 in year two and 101 in year three.

Recently, the first-lien term loan was upsized from $360 million, pricing was reduced from Libor plus 450 bps, the step-down was added and the discount was revised from 99. And, the second-lien loan was downsized from $125 million, pricing was lowered from Libor plus 850 bps and the discount tightened from talk of 98 to 981/2.

Alliance Laundry revolver

In addition to the first- and second-lien term loans, Alliance Laundry's $560 million credit facility provides for a $75 million five-year revolver (B2/B).

Bank of America Merrill Lynch, BMO Capital Markets Corp., Morgan Stanley Senior Funding Inc., Scotia Capital (USA) Inc. and Fifth Third Securities Inc. are leading the deal that will be used to refinance existing debt and fund a dividend.

Alliance Laundry is a Ripon, Mass.-based designer, manufacturer and marketer of commercial laundry equipment used in laundromats, multi-housing laundries and on-premise laundries.

Atlas Iron breaks

Atlas Iron's credit facility also began trading during the session, with its $275 million five-year first-lien term loan (B2/B+) quoted at 96½ bid, 97 offered, according to a market source.

Pricing on the term loan is Libor plus 750 bps with a 1.25% Libor floor, and it was sold at a discount of 96. The debt has soft call protection of 103 in year one, 102 in year two and 101 in year three.

During syndication, the term loan was downsized from $325 million as an AUD 50 million revolver was added to the capital structure, pricing was revised from recent talk of Libor plus 700 bps and initial talk of Libor plus 550 bps, the discount widened from 98, and the soft call was changed from just 102 in year one and 101 in year two.

The revolver is being placed locally in Australia.

Credit Suisse Securities (USA) LLC is leading the deal that will be used by the Perth, Australia-based iron ore company for general corporate purposes and to fund its Horizon 1 expansion.

Dex, SuperMedia gain again

In more trading news, Dex West, Dex East and R.H. Donnelley - all subsidiaries of Dex One Corp. - and SuperMedia were once again better, continuing their run up from Thursday that was spurred by news of revised amendment proposals, according to a trader.

Dex West's term loan was quoted at 72½ bid, 74 offered, up from 70½ bid, 72½ offered on Thursday and from 68½ bid, 70 offered prior to the amendment news.

Dex East's term loan was quoted at 68½ bid, 70 offered, up from 67¾ bid, 68¾ offered in the prior session and 65½ bid, 67½ offered before that, the trader said.

R.H. Donnelley's term loan was quoted at 66½ bid, 68 offered, up on the offer side from 66½ bid, 67½ offered on Thursday, and better from 64½ bid, 66 offered on Wednesday.

And, SuperMedia's term loan was quoted at 71½ bid, 72½ offered, versus 69½ bid, 71½ offered in the previous day and from 66 bid, 67 offered prior to that, the trader added.

Dex, SuperMedia details

Under the revised Dex/SuperMedia amendments, the maturity dates of the Dex West, Dex East, R.H. Donnelley debt would be extended by 26 months to Dec. 31, 2016 and the SuperMedia loan would be extended by one year to Dec. 31, 2016, which is what the original proposal would have done.

However, Dex West pricing would be Libor plus 500 bps with a 3% floor, as opposed to the original amendment proposal that called for pricing of Libor plus 425 bps, stepping up to Libor plus 450 bps in 2015, with a 3% Libor floor. Current pricing is Libor plus 400 bps with a 3% floor.

Dex East pricing would be Libor plus 300 bps with a 3% floor, whereas under the initial proposal it would have been Libor plus 250 bps, with a step-up to Libor plus 300 bps in 2015, with a 3% Libor floor. Current pricing is Libor plus 250 bps with no floor.

R.H. Donnelley pricing would be Libor plus 675 bps with a 3% floor, compared to the prior proposal of pricing of Libor plus 625 bps with a step-up to Libor plus 650 bps in 2015, with a 3% Libor floor. Current pricing is Libor plus 600 bps with a 3% floor.

And, SuperMedia loan pricing would be Libor plus 860 bps with a 3% Libor floor, versus the prior proposal for pricing remaining at Libor plus 800 bps with a 3% floor.

Dex, SuperMedia merger

The amendments are being sought in connection with the merger of Dex One and SuperMedia, under which shareholders will exchange their shares for shares in a new company, Dex Media. Dex One shareholders will get 0.2 share for each Dex One share they own, and SuperMedia shareholders will get 0.4386 share for each SuperMedia share they own.

The Dex and SuperMedia credit facilities amendments require 100% approval from the senior lenders, and the companies are working with the steering committee to obtain the requisite approval from the remaining senior lenders.

If the companies obtain sufficient, but not unanimous, support from lenders, the companies may seek to finalize the amendments and complete the merger through a pre-packaged bankruptcy.

The merger is expected to be completed in the first half of 2013.

Dex One is a Cary, N.C.-based marketing services provider. SuperMedia is a Dallas-based directory publisher.

MedAssets changes surface

Moving to the primary, MedAssets announced some modifications to its credit facility in the morning, including reducing its seven-year term loan B to $300 million from $350 million and flexing pricing lower to Libor plus 275 bps from talk of Libor plus 300 bps to 325 bps, a market source said.

As before, the term loan B has a 1.25% Libor floor, original issue discount of 99½ and 101 soft call protection for one year. An MFN sunset provision in the credit agreement, however, was removed, the source remarked.

The company's now $700 million credit facility (Ba3/BB-) still provides for a $150 million five-year revolver and a $250 million five-year term loan A.

Recommitments are due at noon ET on Monday, the source added.

J.P. Morgan Securities LLC and Barclays are leading the deal that will take out existing bank debt.

MedAssets is an Alpharetta, Ga.-based provider of technology-enabled products and services designed to improve operating margins and cash flow for hospitals and health systems.

MGM sets guidance

MGM Resorts held a bank meeting on Friday to kick off syndication on its $4 billion senior secured credit facility (Ba2/BB), and with the launch, pricing guidance was disclosed, according to a market source.

The $1.25 billion five-year revolver and $1.25 billion five-year term loan A are both being talked at Libor plus 300 bps with no Libor floor, and the $1.5 billion seven-year term loan B is being talked at Libor plus 375 bps with a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for one year, the source said.

Commitments are due on Dec. 17.

Deutsche Bank Securities Inc. and Bank of America Merrill Lynch are the joint physical books on the deal and joint lead arrangers with Barclays and J.P. Morgan Securities LLC.

MGM refinancing

Proceeds from MGM Resorts' credit facility will be used to fund a tender offer for its existing notes and repay existing credit facility debt.

Other funds for the refinancing will come from $1.25 billion of new senior notes, which were upsized from $1 billion, resulting in the reduction of the amount to be borrowed under the new revolver.

Also, the company will use cash on hand for the refinancing.

MGM Resorts is a Las Vegas-based hospitality company, operating a portfolio of destination resort brands.

Landmark discount talk

Landmark Aviation launched with a call on Friday its $90 million of add-on first-and second-lien loans, and investors were told that all of the new debt is being offered at an original issue discount talk of 99, according to a market source.

The debt is comprised of a $60 million add-on first-lien term loan due October 2019 priced at Libor plus 450 bps with a 1.25% Libor floor and a $30 million add-on second-lien term loan due October 2020 priced at Libor plus 825 bps with a 1.25% Libor floor. Pricing matches the existing loans.

The add-on first-lien loan has 101 soft call protection through October 2013, and the add-on second-lien loan has hard call protection of 102 through October 2013 and 101 through October 2014. This is in line with existing loan terms.

Commitments are due by noon ET on Wednesday, the source said.

Morgan Stanley & Co. LLC, RBC Capital Markets and Barclays are leading the deal that will fund the acquisition of a single site FBO.

Landmark is a Tempe, Ariz., provider of aftermarket services to the business aviation industry.

Aramark plans call

Aramark set a call for 1 p.m. ET on Monday to launch a $670 million add-on U.S. term loan C due July 2016 that is priced at Libor plus 325 bps, in line with existing extended term loan pricing, according to market sources. The original issue discount on the add-on is still to be determined.

J.P. Morgan Securities LLC, Goldman Sachs & Co., Barclays, Bank of America Merrill Lynch and Wells Fargo Securities LLC are leading the deal that will be used refinance about $650 million of term loans due on Jan. 26, 2014.

With the add-on, the company is seeking an amendment to its existing credit facility to allow for the redemption of HoldCo debt with OpCo unsecured debt, sources added.

Aramark is a Philadelphia-based professional services company that provides food, hospitality and facility management services as well as uniform and work apparel.

CTI readies deal

CTI Foods emerged with plans to hold a conference call at 1 p.m. ET on Monday to launch a $45 million incremental term loan B due June 2015, according to a market source.

Pricing on the new debt will match the existing term loan pricing at Libor plus 350 bps with a 1.5% Libor floor, the source said. The original issue discount, however, is still to be determined.

J.P. Morgan Securities LLC is the leading the loan that will be used to fund the acquisition of Custom Food Products.

CTI is a Wilder, Idaho-based provider of food products to national chain restaurants.

Custom Food Products is a Carson, Calif.-based developer and manufacturer of protein ingredients for the foodservice and branded packaged foods market.

© 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.