Alpha Natural, Pacific Drilling, Schrader break; Grande Communications shutting books early

By Sara Rosenberg

New York, May 20 - Alpha Natural Resources Inc. increased the size of its term loan B, set the coupon at the low end of guidance and trimmed the Libor floor and then freed up for trading on Monday afternoon, and Pacific Drilling SA and Schrader International emerged in the secondary market as well.

In more happenings, Grande Communications accelerated the commitment deadline on its deal, J.C. Penney Corp. upsized its term loan, reduced talk and revised the original issue discount, and Global Tel*Link Corp. Inc. moved some funds between its first- and second-lien term loans, set pricing at the tight side of talk and tightened the discount on the first-lien debt.

Also, ION Trading Technologies Sarl trimmed pricing on its term loans for a second time, and RentPath Inc. downsized its term loan B, raised the spread, Libor floor and original issue discount, and extended the soft call protection.

In addition, Hoyts reverse flexed pricing on its term debt, Entravision Communications Corp. cut the coupon on its term loan while setting the offer price at the low end of talk and trimming the ticking fee, and Pact Group (USA) Inc. cut the size, spread and Libor floor on its loan.

Furthermore, US Foods Inc. and NRG Energy Inc. loan details came out with launch, Auxilium Pharmaceuticals Inc. revealed timing on its loan, and Carestream Health Inc., ValleyCrest Cos. LLC and Air Medical Holdings LLC announced new deal plans.

Alpha Natural hits secondary

Alpha Natural Resources' $625 million senior secured covenant-light term loan B (Ba1/BB) due May 31, 2020 broke for trading on Monday afternoon, with levels quoted at par 1/8 bid, par 5/8 offered, according to a trader.

Earlier in the day, the loan was upsized from $500 million, the spread finalized at Libor plus 275 basis points, the tight end of the Libor plus 275 bps to 300 bps talk, and the Libor floor was cut to 0.75% from 1%, a source said.

The original issue discount of 99½ and 101 soft call protection for six months were unchanged.

Citigroup Global Markets Inc., PNC Capital Markets LLC, Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc., Barclays, Wells Fargo Securities LLC, BMO Capital Markets Corp. and Goldman Sachs & Co. are leading the deal that will be used to add cash to the balance sheet to fund the repurchase of convertible senior notes due 2015 and, due to the upsizing, to repay the 2016 term loan A - instead of just refinancing $400 million of term loan A amortization.

Alpha Natural Resources is an Abingdon, Va.-based coal producer.

Pacific Drilling tops OID

Pacific Drilling's $750 million five-year covenant-light senior secured term loan B made its way into the secondary too, with levels quoted at 101 bid, 101½ offered, according to a market source.

Pricing on the B loan is Libor plus 350 bps with a 1% Libor floor, and it was sold at a discount of 991/2. There is 101 soft call protection for one year.

During syndication, pricing on the loan was reduced from Libor plus 400 bps and the discount was cut from 99.

Citigroup Global Markets Inc., Goldman Sachs & Co., Deutsche Bank Securities Inc. and Barclays are leading the loan that will be used with $750 million of bonds to refinance existing commercial bank debt.

Closing is expected to take place on June 3.

Pacific Drilling is a Luxembourg-based ultra-deepwater drilling contractor.

Schrader frees up

Schrader International's $258.8 million first-lien covenant-light term loan due April 2018 also began trading, with levels quoted at par ¾ bid, 101½ offered, a market source said.

Pricing on the loan is Libor plus 400 bps with a 1% Libor floor, and it was issued at par. There is 101 soft call protection for six months.

Barclays and Goldman Sachs & Co. are leading the deal.

Proceeds will be used to reprice an existing $233.8 million first-lien term loan from Libor plus 500 bps with a 1.25% Libor floor, and the $25 million of incremental proceeds will be used to pay down a portion of the company's second-lien term loan.

First-lien leverage is 4.2 times, total leverage is 5.4 times and net leverage is 5.3 times.

Schrader is a manufacturer of tire pressure monitoring systems, valve products and tire hardware and related accessories for both original equipment manufacturers and aftermarket customers.

Grande moves deadline

Moving to the primary, Grande Communications revised the commitment deadline on its $295 million credit facility (B2/B+) to 5 p.m. ET on Tuesday from Thursday as the deal is already two times oversubscribed, a market source said.

The facility consists of a $35 million five-year revolver that is talked at Libor plus 350 bps with no Libor floor and a 50 bps unused fee, and a $260 million seven-year term loan B that is talked at Libor plus 400 bps with a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months.

SunTrust Robinson Humphrey Inc. and TD Securities (USA) LLC are leading the deal that will be used to refinance existing debt and fund a $100 million dividend to ABRY Partners.

Leverage will be around 4.7 times all senior.

Grande is a San Marcos, Texas-based broadband communications company that offers a full suite of internet, TV and phone services.

J.C. Penney tweaks loan

J.C. Penney raised its five-year senior secured covenant-light term loan (NA/B/BB-) to $2.25 billion from $1.75 billion, changed talk to Libor plus 500 bps to 525 bps from Libor plus 575 bps, and revised the discount to 99½ from 99, according to a market source.

As before, the loan has a 1% Libor floor and call protection of 102 in year one and 101 in year two.

Recommitments were due at 5 p.m. ET on Monday, the source remarked.

Goldman Sachs & Co., Barclays, J.P. Morgan Securities LLC, Bank of America Merrill Lynch and UBS Securities LLC are leading the deal that will be used for working capital and other general corporate purposes and to finance the satisfaction/discharge of $254 million 7 1/8% debentures due 2023.

J.C. Penney is a Plano, Texas-based operator of department stores.

Global Tel*Link revised

Global Tel*Link increased its seven-year first-lien covenant-light term loan (B2/B) to $615 million from $590 million, set pricing at Libor plus 375 bps, the tight end of the Libor plus 375 bps to 400 bps talk, and moved the original issue discount to 99½ from 99, according to a market source.

Also, the 71/2-year second-lien covenant-light term loan (Caa2/CCC+) was cut to $230 million from $255 million, and pricing firmed at Libor plus 775 bps, the tight side of the Libor plus 775 bps to 800 bps guidance, the source said.

As before, the second-lien loan has an original issue discount of 98, both term loans have a 1.25% Libor floor, the first-lien loan has 101 repricing protection for six months, and the second-lien loan has call protection of 103 in year one, 102 in year two and 101 in year three.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and UBS Securities LLC are leading the $885 million credit facility, which also includes a $40 million revolver (B2/B), and will be used to refinance an existing term loan as well as to fund a dividend

Recommitments were due at 5 p.m. ET on Monday, the source added.

Global Tel*Link is a Mobile, Ala.-based correctional communications technology company.

ION flexes again

ION Trading cut pricing on its $750 million seven-year covenant-light first-lien term loan (B2/B+) to Libor plus 325 bps from revised talk of Libor plus 350 bps and initial talk of Libor plus 400 bps, and on its $375 million eight-year covenant-light second-lien term loan (Caa2/CCC+) to Libor plus 700 bps from revised talk of Libor plus 725 bps and original talk of Libor plus 775 bps, according to a market source.

The first-lien term loan still has a 1.25% Libor floor, an original issue discount of 99½ and 101 repricing protection for one year, and the second-lien term loan still has a 1.25% Libor floor, a discount of 99 and call protection of 102 in year one and 101 in year two.

Earlier in syndication, when the first pricing changes were announced, the first-lien loan was upsized from $700 million and the discount was revised from 99, and the second-lien loan was upsized from $355 million and the discount was tightened from 981/2.

The company's $1,175,000,000 credit facility also includes a $50 million five-year revolver (B2/B+) that was downsized from $60 million.

ION recapitalizing

Proceeds from ION Trading's credit facility will be used to refinance existing debt and fund a dividend. As a result of the earlier term loan upsizings, the dividend was increased and the company is putting $30 million of cash on the balance sheet instead of $10 million.

Credit Suisse Securities (USA) LLC, the lead bank on the deal, set a recommitment deadline for 5 p.m. ET on Monday, the source added.

ION Trading is a provider of trading software that is owned by ION Investment Group, which is also the parent company of Wall Street Systems, a New York-based treasury management, foreign-exchange software and software services provider.

RentPath changes surface

RentPath reduced its seven-year term loan B to $400 million from $425 million, lifted pricing to Libor plus 500 bps from talk of Libor plus 400 bps to 425 bps, increased the Libor floor to 1.25% from 1%, widened the discount to 98 from 99 and pushed out the 101 soft call protection to 18 months from one year, according to a market source.

Also, a maximum net first-lien leverage was added, opening at 5 times and then stepping down over time, whereas before, the loan only had incurrence covenants, the source said.

The company's now $445 million credit facility (B2/B) also provides for a $45 million five-year revolver.

Recommitments are due at 5 p.m. ET on Tuesday.

J.P. Morgan Securities LLC is leading the deal that will be used by the Norcross, Ga.-based digital marketplace for apartment rentals to refinance existing debt and fund a distribution to shareholders.

Hoyts cuts spreads

Hoyts lowered pricing on its $310 million seven-year covenant-light first-lien term loan (B1/BB-) to Libor plus 300 bps from Libor plus 350 bps, while keeping the 1% Libor floor, original issue discount of 99½ and 101 repricing protection for six months intact, according to a market source.

Additionally, pricing on the $100 million 71/2-year covenant-light second-lien term loan (B3/B-) was trimmed to Libor plus 725 bps from Libor plus 750 bps, the source said. This tranche still has a 1% floor, a discount of 99 and call protection of 103 in year one, 102 in year two and 101 in year three.

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

Commitments are due at 5 p.m. ET on Tuesday, accelerated from Wednesday.

Credit Suisse Securities (USA) LLC and UBS Investment Bank are leading the deal that will be used by the Australian cinema exhibitor to refinance existing debt and fund a dividend.

Entravision reduces pricing

Entravision Communications flexed pricing on its $375 million seven-year covenant-light delayed-draw term loan to Libor plus 250 bps from talk of Libor plus 275 bps to 300 bps, firmed the offer price at par, the tight end of the 99½ to par talk, and lowered the ticking fee that starts on day 31 to 75 bps from a third of the spread, according to a market source.

The 1% Libor floor and 101 soft call protection for six months were unchanged.

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

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

GE Capital Markets is leading the deal that will be used to refinance an existing credit facility and redeem 8¾% senior notes due 2017 that are callable in August, which is when the term loan is expected to be fully drawn.

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

Pact reworked

Pact Group cut its seven-year term loan B (Ba3/B+) to roughly $885 million from $925 million, revised pricing to Libor plus 275 bps from talk of Libor plus 325 bps to 350 bps and lowered the Libor floor to 1% from 1.25%, according to a market source.

The loan continues to have an original issue discount of 99½ and 101 soft call protection for one year.

Recommitments are due at 11 a.m. ET on Tuesday.

With the term loan B, the company is getting a A$100 million five-year revolver.

J.P. Morgan Securities LLC is leading the deal that will be used to fund a recapitalization.

Pact Group is an Australia-based supplier of rigid plastic packaging and industrial metal packaging items.

US Foods details loan

In more primary news, US Foods held its call on Monday morning, at which time it launched a $2.1 billion senior secured covenant-light term loan due March 31, 2019 with talk of Libor plus 325 bps to 350 bps with a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months, according to a market source.

Previously, all that was known about the deal was that the company would be approaching lenders with a new term loan to refinance its $1.674 billion term loan and $417 million term loan, both due in 2017.

Citigroup Global Markets Inc. is the lead bank on the deal that is expected to close in early June.

US Foods is a Chicago-based broadline foodservice distributor.

NRG holds call

NRG also held a call, launching its $2.022 billion term loan B due July 1, 2018 with talk of Libor plus 200 bps to 225 bps with a 0.75% Libor floor and 101 soft call protection for six months, according to a market source.

The term loan B includes $450 million of incremental debt offered at an original issue discount of 99½ and $1.572 billion of existing debt offered at par, the source said.

Proceeds will be used to reprice the existing term loan and the incremental amount will be used to help fund the redemption of GenOn 2014 unsecured notes and for other general corporate purposes, including financing the Gregory plant acquisition.

Commitments are due at 5 p.m. ET on Thursday.

Morgan Stanley Senior Funding Inc. and Credit Suisse Securities (USA) LLC are leading the incremental term loan, and Morgan Stanley, Bank of America Merrill Lynch, Barclays, Citigroup Global Markets Inc., Credit Suisse, Deutsche Bank Securities Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC, RBS Securities Inc., Mitsubishi UFJ Financial Group and Union Bank are leading the repricing.

NRG is a wholesale power generation company with headquarters in Princeton, N.J., and Houston.

Auxilium discloses timing

Auxilium Pharmaceuticals came out with timing for the launch of its $225 million senior secured term loan B, as a bank meeting has been scheduled for 10 a.m. ET in New York on Wednesday, a source said.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to help fund the acquisition of Actient Holdings LLC.

According to filings with the Securities and Exchange Commission, pricing on the loan will be Libor plus 375 bps with a 1.25% Libor floor, and there will be no financial covenants.

Auxilium is a Malvern, Pa.-based specialty biopharmaceutical company.

Carestream readies deal

Carestream Health emerged with plans to hold a bank meeting at 10 a.m. ET on Tuesday in New York to launch a $2.5 billion credit facility that will be used to refinance an existing term loan and fund a dividend, according to a market source.

The facility consists of a $150 million revolver, a $1.85 billion six-year first-lien covenant-light term loan and a $500 million 61/2-year second-lien covenant-light term loan.

The first-lien term loan is talked at Libor plus 325 bps to 350 bps with 101 repricing protection for one year, and the second-lien term loan is talked at Libor plus 750 bps with call protection of 103 in year one, 102 in year two and 101 in year three, subject to an initial public offering claw, the source said. Both loans have a 1% Libor floor and an original issue discount of 99.

Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch and Goldman Sachs & Co. are leading the deal for the Rochester, N.Y.-based provider of medical and dental imaging products.

ValleyCrest on deck

ValleyCrest set a bank meeting for 10 a.m. ET in New York on Wednesday to launch a $265 million six-year senior secured covenant-light term loan that has 101 repricing protection for one year, according to a market source.

Credit Suisse Securities (USA) LLC and Wells Fargo Securities LLC are leading the transaction.

Proceeds will be used to refinance an existing term loan.

ValleyCrest is a Calabasas, Calif.-based provider of landscape maintenance services.

Air Medical coming soon

Air Medical scheduled a bank meeting for 2:25 p.m. ET on Tuesday to launch a $200 million five-year senior unsecured HoldCo contingent cash pay term loan that will be priced at fixed-rate that is yet to be announced, according to a market source.

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.

Proceeds will be used to fund a dividend to shareholders.

Air Medical is a San Antonio, Texas-based provider of community-based air ambulance services.

CNO closes

In other news, CNO Financial Group Inc. completed its term debt repricing transaction, according to a news release.

The debt includes a $225 million term loan B-1 priced at Libor plus 225 basis points with a 0.75% Libor floor, and a $406 million term loan B-2 priced at Libor plus 275 bps with a 1% Libor floor. Both tranches have 101 soft call protection for six months.

During syndication, pricing firmed on the B-1 loan at the low end of the Libor plus 225 bps to 250 bps talk, and on the B-2 loan at the tight end of the Libor plus 275 bps to 300 bps talk.

Goldman Sachs & Co. and J.P. Morgan Securities LLC led the deal that repriced the existing term loan B-1 from Libor plus 325 bps with a 1% Libor floor, and the term loan B-2 from Libor plus 375 bps with a 1.25% floor.

CNO is a Carmel, Ind.-based insurance company.

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