Energy Future, Peak 10, Gray Television, Arizona Chem, Deltek break; Brickman moves deadline

By Sara Rosenberg

New York, June 10 – Energy Future Intermediate Holding Co. LLC’s (EFIH Finance Inc.) debtor-in-possession term loan emerged in the secondary market on Tuesday with levels seen above its issue price, and Peak 10 Inc., Gray Television Inc., Arizona Chemical Inc. and Deltek Inc. began trading as well.

Moving to the primary, Brickman Group Ltd. LLC moved up the commitment deadline on its loan transaction, VeriFone Inc. and Alion Science and Technology Corp. disclosed price talk with launch, and Mauser Holdings announced guidance on its upcoming deal.

Furthermore, Overseas Shipholding Group Inc., LA Fitness International LLC, Akorn Inc. and Equinox Holdings Inc. joined this week’s calendar, and Spencer Spirit Holdings Inc. revealed size on its proposed loan.

Energy Future frees up

Energy Future Intermediate Holding’s $1,325,000,000 24-month super-priority first-lien debtor-in-possession term loan (Ba3/BB) broke for trading on Tuesday, with levels quoted at par ¼ bid, par 5/8 offered on the open and then it moved up to par 5/8 bid, par 7/8 offered, according to a market source.

Pricing on the loan is Libor plus 325 basis points with a 1% Libor floor and it was issued at par, after tightening the other day from 99.

Deutsche Bank Securities Inc., Citigroup Global Markets Inc., Bank of America Merrill Lynch, Morgan Stanley Senior Funding Inc., RBC Capital Markets and Union Bank are leading the deal that will be used to fund Chapter 11 expenses, to refinance existing first-lien notes, for adequate protection payments, working capital and general corporate purposes and to comply with any legal and/or regulatory requirements.

Energy Future is a Dallas-based power generation company and utility operator.

Peak 10 starts trading

Peak 10’s credit facility hit the secondary market too, with the $330 million seven-year first-lien covenant-light term loan (B2/B) quoted at par ¼ bid, par ¾ offered and the $130 million eight-year second-lien covenant-light term loan (Caa2/CCC+) quoted at 99½ bid, par ½ offered, according to a trader. Then, by late afternoon, the second-lien loan was seen at par bid, par ½ offered, the trader added.

Pricing on the first-lien term loan is Libor plus 400 bps with a 25 bps step-down at 4 times leverage. There is a 1% Libor floor and 101 soft call protection for six months, and the debt was sold at an original issue discount of 99½.

The second-lien term loan is priced at Libor plus 725 bps with a 1% Libor floor and was sold at a discount of 99. This tranche has call protection of 102 in year one and 101 in year two.

During syndication, pricing on the first-lien term loan was reduced from Libor plus 450 bps and the discount was tightened from 99, and pricing on the second-lien term loan was trimmed from Libor plus 750 bps.

Peak 10 lead banks

Credit Suisse Securities (USA) LLC, RBC Capital Markets and Jefferies Finance LLC are leading Peak 10’s credit facility, with Credit Suisse left lead on the first-lien and RBC left lead on the second-lien.

Along with the term loans, the $515 million credit facility includes a $55 million revolver (B2/B) that was downsized from $65 million during syndication.

Proceeds will be used to help fund the buyout of the company by GI Partners from Welsh, Carson, Anderson & Stowe.

Closing on the credit facility is expected on June 17.

Peak 10 is a Charlotte, N.C.-based IT infrastructure and cloud provider.

Gray Television breaks

Gray Television’s credit facility began trading as well, with the $525 million term loan seen at par ½ bid, 101 offered, a source remarked.

The term loan is priced at Libor plus 300 bps with a 0.75% Libor floor and was sold at an original issue discount of 99¾.

During syndication, the term loan was upsized from $500 million, the floor was cut from 1% and the discount was revised from 99½.

The company’s $575 million senior secured credit facility (Ba3/BB) also includes a $50 million revolver.

Wells Fargo Securities LLC, Bank of America Merrill Lynch and RBC Capital Markets are leading the deal that will be used to refinance existing debt and to complete pending acquisitions.

Closing is expected on or before June 30.

Gray Television is an Atlanta-based owner and operator of television stations and digital assets.

Arizona Chemical trades

Arizona Chemical’s credit facility surfaced in the secondary as well, with the $730 million seven-year covenant-light first-lien term loan quoted at par ½ bid, 101¼ offered and the $150 million eight-year covenant-light second-lien term loan quoted at par ¼ bid, according to a trader.

Pricing on the first-lien term loan is Libor plus 350 bps with a 1% Libor floor and it was sold at a discount of 99½. There is 101 soft call protection for one year.

The second-lien term loan is priced at Libor plus 650 bps with a 1% Libor floor and was issued at 99½. This tranche has hard call protection of 102 in year one and 101 in year two.

During syndication, the first-lien term loan was upsized from $675 million and pricing was decreased from talk of Libor plus 375 bps to 400 bps, and the second-lien loan was downsized from $205 million, pricing was trimmed from talk of Libor plus 675 bps to 700 bps and the discount was modified from 99.

Arizona Chemical recapitalizing

Proceeds from Arizona Chemical’s $940 million credit facility, which also provides for a $60 million five-year revolver, will be used to refinance existing debt and fund a dividend.

Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC, Jefferies Finance LLC and SunTrust Robinson Humphrey Inc. are the lead banks on the deal.

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

Deltek tops OID

Another deal to start trading was Deltek’s fungible $55 million add-on first-lien term loan, with levels on the add-on/existing term loan quoted at par ¼ bid, 101 offered after the add-on allocated, a trader said. Prior to the add-on allocating, the existing term loan was quoted at par bid, par ½ offered.

Pricing on the add-on loan is Libor plus 350 bps with a 1% Libor floor, in line with the existing first-lien term loan, and it was issued at 99¾, after being revised during syndication from 99½.

Jefferies Finance LLC is leading the deal that is being used to fund the recently announced acquisition of Axium, a Portland, Ore.-based provider of accounting and project management services.

Deltek is a Herndon, Va.-based provider of enterprise software and information for professional services firms and government contractors.

Brickman tweaks deadline

Over in the primary, Brickman Group accelerated the commitment deadline on its fungible $725 million incremental first-lien term loan due December 2020 to 4 p.m. ET on Thursday from June 19, according to a market source.

The incremental loan is talked at Libor plus 300 bps with a 1% Libor floor, in line with the existing $735 million first-lien covenant-light term loan, and is being offered at an original issue discount of 99. All of the first-lien term debt will get 101 soft call protection for six months.

The company is also getting a $100 million revolver.

Jefferies Finance LLC, Macquarie Capital (USA) Inc., Mizuho Bank, Sumitomo Mitsui Banking Corp., Nomura and KKR Capital Markets are leading the $825 million deal. Morgan Stanley Senior Funding Inc. is the administrative agent.

Brickman buying ValleyCrest

Proceeds from Brickman’s new bank debt will be used to help fund the acquisition of ValleyCrest Cos. LLC, which is expected to close by mid-year.

Brickman is owned by KKR, and ValleyCrest is currently owned by MSD Capital LP. Following the close, KKR will have majority ownership of the combined company, and MSD Capital will retain a significant minority ownership interest.

Brickman is a Rockville, Md.-based provider of landscape maintenance and snow removal services. ValleyCrest is a Calabasas, Calif.-based landscape services company.

VeriFone talk emerges

VeriFone held its bank meeting on Tuesday, and in connection with the event, price talk on its $1.2 billion credit facility (Ba3/BB) was announced, according to a market source.

The $400 million revolver and $550 million term loan A are both talked at Libor plus 250 bps, the source said, while the $250 million term loan B is talked at Libor plus 300 bps to 325 bps with a 0.75% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance existing debt.

VeriFone is a San Jose, Calif.-based company that makes secure electronic payment equipment.

Alion Science launches

Alion Science and Technology came out with talk of Libor plus 700 bps to 750 bps with a 1% Libor floor, an original issue discount of 99 and call protection of 102 in year one and 101 in year two on its $300 million five-year term loan B that launched with a meeting during the session, a source remarked.

Goldman Sachs Bank USA is the left lead bank on the deal.

Proceeds will be used to refinance PIK notes.

Alion is a McLean, Va.-based research and development, IT and operational services company.

Mauser floats guidance

Mauser began circulating price talk on its $465 million seven-year first-lien term loan, €340 million seven-year first-lien term loan and $405 million eight-year second-lien term loan in preparation for its Wednesday bank meeting in New York and Thursday bank meeting in London, according to a market source.

The covenant-light first-lien term loans are talked at Libor/Euribor plus 375 bps to 400 bps with a 1% floor, an original issue discount of 99 and 101 soft call protection for six months, and the covenant-light second-lien loan is talked at Libor plus 725 bps to 750 bps with a 1% Libor floor, a discount of 99 and call protection of 102 in year one and 101 in year two, the source said.

The company’s credit facility, for which commitments are due on June 25, also includes a €150 million five-year revolver and a €50 million capital expenditures facility.

Credit Suisse Securities (USA) LLC, Barclays, BNP Paribas Securities Corp., ING Capital LLC, Natixis and Nomura Securities International Inc. are leading the deal that will help fund the roughly €1.2 billion buyout of the Bruehl, Germany-based industrial packaging company by Clayton, Dubilier & Rice.

Overseas Shipholding meeting

Also in the primary, Overseas Shipholding Group set a bank meeting for Thursday to launch a $1.35 billion credit facility that will help fund its exit from bankruptcy, according to a market source.

The facility consists of a $75 million 4½-year asset-based revolver at OSG Bulk Ships (domestic borrower) with pricing ranging from Libor plus 225 bps to 275 bps based on availability, a $75 million 4½-year cash-flow revolver at OSG International (international borrower) talked at Libor plus 450 bps with a 1% Libor floor, a $600 million five-year covenant-light term loan at OSG Bulk Ships talked at Libor plus 475 bps with a 1% Libor floor and 101 soft call protection for one year and a $600 million five-year covenant-light term loan at OSG International talked at Libor plus 525 bps with a 1% Libor floor and 101 soft call protection for one year, the source said.

Original issue discounts on the term loans are not yet available.

Jefferies Finance LLC is leading the deal for the New York-based tanker company.

LA Fitness on deck

LA Fitness scheduled a bank meeting for 10 a.m. ET in New York on Thursday to launch a $1.5 billion six-year covenant-light term loan B, a market source said.

Bank of America Merrill Lynch, BNP Paribas Securities Corp. and Barclays are leading the deal that will be used to refinance existing debt, fund a one-time repurchase of equity interests and for general corporate purposes.

LA Fitness is an Irvine, Calif.-based health club chain.

Akorn timing emerges

Akorn plans to hold a call on Thursday to launch its previously announced $445 million incremental term loan (B1) and talk on the deal surfaced at Libor plus 350 bps with a 1% Libor floor, an original issue discount of 99¼ to 99½ and 101 soft call protection through October, according to a market source.

The spread and floor on the incremental loan match the existing term loan.

J.P. Morgan Securities LLC is the left lead on the deal that will be used to fund the $440 million acquisition of VPI Holdings Corp., the parent company of VersaPharm Inc.

Closing is expected in the third quarter, subject to customary conditions, including termination of the waiting period under the provisions of the Hart-Scott-Rodino Antitrust Improvement Act of 1976.

Akorn is a Lake Forest, Ill.-based niche pharmaceutical company. VersaPharm is a Marietta, Ga.-based developer and marketer of multi-source prescription pharmaceuticals.

Equinox plans loan

Equinox set a call for Wednesday to launch a fungible $100 million add-on term loan (Ba3), according to a market source.

The add-on is talked at Libor plus 325 bps with a 1.25% Libor floor, in line with the existing term loan, and an original issue discount that is still to be determined, the source said.

Bank of America Merrill Lynch and Morgan Stanley Senior Funding Inc. are leading the deal that will be used for general corporate purposes.

Equinox is a New York-based exercise and fitness company.

Spencer size surfaces

Spencer Spirit will be launching a $360 million term loan at its Wednesday bank meeting, according to a market source.

Wells Fargo Securities LLC and Credit Suisse Securities (USA) LLC are leading the deal that will be used to refinance notes.

Spencer Spirit is an Egg Harbor Township, N.J.-based specialty retailer.

Green Plains closes

In other news, Green Plains Renewable Energy Inc. completed its $225 million senior secured term loan (B2/BB), a news release said.

Pricing on the loan is Libor plus 550 bps with a 1% Libor floor and it was sold at an original issue discount of 99. There is 101 soft call protection for one year.

During syndication, pricing on the term loan firmed at the tight end of the Libor plus 550 bps to 575 bps talk.

BMO Capital Markets and BNP Paribas Securities Corp. led the deal that is being used to refinance existing ethanol plant credit facilities.

Green Plains Renewable is an Omaha-based diversified commodity-processing business with operations related to ethanol production, corn oil production, grain handling and storage, and commodity marketing and distribution services.

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