YP, Star West, KCG, Entravision break; Genpact, LS Power, Formula One, F+W set talk

By Sara Rosenberg

New York, May 30 - YP LLC's credit facility freed up for trading on Thursday, with the term loan B quoted above its original issue discount price, and Star West Generation LLC, KCG Holdings Inc. and Entravision Communications Corp. broke, too.

Moving to the primary, Genpact International Inc., LS Power (LSP Madison LLC), Formula One and F+W Media Inc. came out with talk as their deals were presented to lenders during the session.

Additionally, Custom Ecology Inc. began circulating guidance on its upcoming transaction, and Clearwater Seafoods Inc. and LANDesk Software surfaced with new deal plans.

YP tops OID

YP's credit facility made its way into the secondary market on Thursday, with the $700 million five-year term loan B (B2/B) quoted at 98½ bid, 99½ offered on the open and then it moved to 99 bid, 99¾ offered, according to a trader.

Pricing on the B loan is Libor plus 675 basis points with a 1.25% Libor floor, and it was sold at an original issue discount of 971/2. The debt includes 101 soft call protection for one year.

During syndication, the loan size firmed at the high end of the revised $650 million to $700 million guidance but down from an initial amount of $775 million, the coupon came at the wide end of the revised talk of Libor plus 650 bps to 675 bps and up from original talk of Libor plus 550 bps to 600 bps, and the discount was widened from 981/2.

The company's $1.15 billion credit facility also includes a $450 million five-year ABL revolver.

J.P. Morgan Securities LLC, PNC Capital Markets LLC, Goldman Sachs Bank USA and Wells Fargo Securities LLC are leading the term loan, and PNC is leading the revolver.

Proceeds will refinance all of the company's existing debt and fund a dividend to equity holders.

YP is a Tucker, Ga.-based provider of local business print, online and mobile directory services.

Star West hits secondary

Star West Generation's $750 million senior secured term loan B due March 13, 2020 broke as well, with levels quoted at par ¼ bid, par ¾ offered, a market source said.

Pricing on the term loan is Libor plus 325 bps with a 1% Libor floor, and it was issued at par. There is 101 soft call protection until March 2014.

Earlier this week, pricing on the loan finalized at the wide end of the Libor plus 300 bps to 325 bps talk.

Citigroup is leading the deal that is being used to refinance an existing term loan B that is priced at Libor plus 400 bps with a 1% Libor floor.

Star West Generation is a Houston-based power producer.

KCG frees up

KCG Holdings' $535 million 41/2-year term loan B (Ba3/BB-) hit the secondary too, with levels quoted at 99½ bid, par ½ offered, a trader remarked.

Pricing on the B loan is Libor plus 450 bps with a 1.25% Libor floor, and it was sold at 99. There is 101 soft call protection for one year and a ticking fee of half the spread from days 31 through 60 and the full spread after 60 days.

Recently, pricing on the Jersey City, N.J.-based financial services firm's loan was reduced from talk of Libor plus 475 bps to 500 bps and the discount was revised from 981/2, and a $20 million four-year revolver was eliminated from the new credit facility.

Jefferies Finance LLC and Goldman Sachs & Co. are leading the deal that will be used with $305 million of senior secured notes to help fund the merger of Chicago-based Getco Holding Co. LLC and Jersey City, N.J.-based Knight Capital Group Inc. to form KCG and to refinance existing debt.

Gross leverage is 1.8 times through the first-lien and 2.9 times total.

Entravision breaks

Entravision Communications' credit facility also began trading, with the $375 million seven-year covenant-light delayed-draw term loan quoted at par bid, par ½ offered, according to a market source.

Pricing on the term loan is Libor plus 250 bps with a 1% Libor floor, and it was issued at par. There is 101 soft call protection for six months and a ticking of 75 bps that starts on day 31.

During syndication, the spread on the term loan was reduced from talk of Libor plus 275 bps to 300 bps, the offer price firmed at the tight end of the 99½ to par talk, and the ticking fee was reduced from a third of the spread.

The company's $405 million credit facility (B2/B+) also includes a $30 million five-year revolver.

GE Capital Markets is leading the deal that will be used to refinance an existing credit facility and redeem 8¾% senior notes due 2017.

The term loan is expected to be drawn in full when the bonds are callable in August.

Entravision is a Santa Monica, Calif.-based diversified Spanish-language media company.

Genpact sets talk

Switching to the primary, Genpact held its call on Thursday afternoon, launching its $875 million covenant-light term loan B due Aug. 30, 2019 with talk of Libor plus 250 with a 0.75% Libor floor and 101 soft call protection for six months, according to a market source.

The term loan B is comprised of $671,625,000 of existing debt and $203,375,000 of add-on debt, and the new money is being offered at an original issue discount of 991/2, the source said.

The company's $1,125,000,000 senior secured credit facility also includes a $250 million revolver due Aug. 30, 2017.

Morgan Stanley Senior Funding Inc., Citigroup Global Markets Inc., Bank of America Merrill Lynch, Crédit Agricole Corporate and Investment Bank, J.P. Morgan Securities LLC and Wells Fargo Securities LLC are leading the deal that will be used to refinance debt and for general corporate purposes.

Commitments are due on June 6.

Genpact is a Hamilton, Bermuda-based provider of business process management services.

LS Power pricing

LS Power launched during the session its $450 million seven-year first-lien covenant-light term loan with talk of Libor plus 300 bps with a 1% Libor floor, an original issue discount of 99¾ and 101 repricing protection for one year, according to a market source.

Credit Suisse Securities (USA) LLC and Goldman Sachs Bank USA are leading the deal that will be used to refinance an existing term loan, to fund a dividend payment and for general corporate purposes.

Commitments are due on June 17.

LS Power is a New York-based portfolio of power generating facilities.

Formula One launches

Formula One held a meeting in the afternoon to launch a $2.18 billion term loan due April 2019 that has 101 soft call protection for six months and an original issue discount of 99½ on new money only, according to a market source. Rollover commitments are being offered at par.

The U.S. tranche of the term loan is talked at Libor plus 325 bps with a 1% Libor floor and the euro tranche is talked at Euribor plus 375 bps with a 1% floor.

Proceeds will be used to reprice an existing U.S. term loan from Libor plus 475 bps with a 1% Libor floor and an existing euro term loan from Euribor plus 475 bps with a 1% floor.

Existing lenders will be paid out at 101 with the repricing.

Goldman Sachs Bank USA, UBS Securities LLC and RBS Securities Inc. are leading the deal for which commitments are due on June 13, the source said.

Formula One is the organizer of the Formula One World Championship (F1) and owner of the commercial rights to F1 motorsports racing.

F+W Media guidance

F+W Media announced talk of Libor plus 500 bps to 525 bps with a 1.25% Libor floor and an original issue discount of 99 on its $135 million credit facility that launched with an 11 a.m. ET bank meeting, according to a market source.

The facility, for which commitments are due on June 13, consists of a $10 million revolver and a $125 million term loan B.

Included in the B loan is 101 soft call protection for one year, the source said.

Macquarie Capital is leading the deal that will be used to refinance existing debt.

Net first-lien leverage is 3.7 times.

The company is also extending the maturity on its existing $25 million second-lien term loan, but the tranche is not being syndicated since existing lenders have already rolled over their commitments, the source added.

F+W Media is a community-focused, content creator and marketer of products and services for enthusiasts that has main offices in Blue Ash, Ohio, New York and Broomfield, Colo.

Custom Ecology readies deal

Custom Ecology set a bank meeting for Friday to launch a $130 million credit facility that includes a $10 million revolver and a $120 million six-year term loan, according to a market source.

And, ahead of the meeting, talk on the term loan emerged at Libor plus 500 bps with a 1.25% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, the source said.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to refinance existing debt.

Leverage is 3.6 times, the source added.

Custom Ecology is a Walker, La.-based industrial and hazardous waste transporter.

Clearwater coming soon

Clearwater Seafoods emerged with plans to hold a bank meeting on Monday to launch a roughly $335 million credit facility, according to a market source.

The facility consists of a C$60 million five-year revolver, a C$30 million five-year term loan A, a C$45 million five-year delayed-draw term loan A and a $200 million six-year term loan B, the source said.

BMO Capital Markets Corp. and GE Capital Markets are leading the transaction that will be used to refinance existing debt and for capital expenditures.

Clearwater is a Bedford, Nova Scotia-based seafood company.

LANDesk joins calendar

LANDesk Software scheduled a bank meeting for Tuesday to launch a $355 million credit facility that consists of a $25 million five-year revolver and a $330 million seven-year term loan B, according to sources.

BMO Capital Markets Corp. and Credit Suisse Securities (USA) LLC are leading the deal.

Proceeds will be used to refinance existing debt and fund a dividend.

LANDesk is a South Jordan, Utah-based provider of systems lifecycle management and endpoint security, as well as IT service management products for desktops, servers and mobile devices.

Summit allocates

In other news, Summit Business Media's $75 million five-year credit facility allocated on Thursday morning, according to a market source. The deal was not seen trading in the secondary market.

The facility consists of a $10 million revolver and $65 million term loan, both priced at Libor plus 475 bps with a 1.25% Libor floor and sold at an original issue discount of 99.

Recently, the spread on the deal firmed at the wide end of the Libor plus 450 bps to 475 bps talk.

GE Capital Markets is leading the deal that is being used to refinance existing debt.

Summit Business Media is a New York-based business-to-business media company serving the insurance, financial services, legal and investment advisory markets.

Kindred Healthcare closes

Kindred Healthcare Inc. completed its $787.5 million term loan B due June 2018 that is priced at Libor plus 325 bps with a 1% Libor floor, according to a news release. The debt was issued at par and has 101 soft call protection for six months.

During syndication, pricing on the loan finalized at the tight end of the Libor plus 325 bps to 350 bps talk.

J.P. Morgan Securities LLC led the deal that was used to refinance an existing $687.8 million term loan B due June 2018 and a $99.8 million incremental term loan due June 2018.

Kindred Healthcare is a Louisville, Ky.-based health care services company.

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