SRAM, Hertz break; ABC Supply, Cooper Gay, First Data, Cenveo, Seminole Tribe tweak deals

By Sara Rosenberg

New York, April 4 - SRAM LLC's term loan B made its way into the secondary market on Thursday, with levels seen above its original issue discount price and a decent amount of activity seen in the name, and Hertz Global Holdings Inc. freed up too.

Over in the primary, ABC Supply Holding Corp. lifted its term loan B size, while trimming the coupon, Libor floor and offer price, and Cooper Gay Swett & Crawford Ltd. moved some funds between its first- and second-lien loans and cut spreads as well as discounts.

Also, First Data Corp. tightened the original issue discount on the repricing of its U.S. and euro term loans, Cenveo Corp. tightened pricing and discount on its deal, and Seminole Tribe of Florida modified its offer price.

Furthermore, Securus Technologies Inc., ConvergeOne and Playboy Enterprises Inc. disclosed pricing guidance with launch, and Covis Pharma Holdings Sarl and MediMedia USA Inc. emerged with deal plans.

SRAM frees up

SRAM's $715 million term loan B (B1/BB-) due 2020 broke for trading on Thursday, with levels quoted at par ¾ bid, 101¼ offered, according to a trader.

Pricing on the B loan is Libor plus 300 basis points with a 1% Libor floor, and it was sold at an original issue discount of 991/2. There is 101 soft call protection for one year.

During syndication, the loan was upsized from $675 million and pricing was reduced from Libor plus 325 bps.

J.P. Morgan Securities LLC is the lead bank on the deal that will be used to refinance an existing first-lien term loan and second-lien term loan borrowings.

SRAM is a Chicago-based bicycle components company.

Hertz tops par

Hertz's $1.3 billion term loan also hit the secondary, with levels quoted at par ¼ bid, par ¾ offered, a source said.

Pricing on the term loan is Libor plus 225 bps with a 0.75% Libor floor, and it was issued at par.

Deutsche Bank Securities Inc. and Well Fargo Securities LLC are the lead banks on the deal that is being used to reprice an existing term loan from Libor plus 275 bps with a 1% Libor floor.

Hertz is a Park Ridge, N.J.-based auto and equipment rental company.

ABC reworks B loan

Moving to the primary, ABC Supply upsized its term loan B (B1/BB+) to $1.25 billion from $1.15 billion, cut pricing to Libor plus 275 bps from Libor plus 300 bps, lowered the Libor floor to 0.75% from 1% and moved the offer price to par from 991/2, according to a market source.

Also, the 101 soft call on the term loan B was extended to one year from six months, the source said.

The company's now $2 billion senior secured credit facility also provides for a $750 million ABL revolver.

Bank of America Merrill Lynch, Deutsche Bank Securities Inc. and UBS Investment Bank are leading the deal.

ABC selling notes

In addition to the credit facility, ABC Supply is getting $500 million of senior notes that were reduced from $600 million as a result of the term loan upsizing, the source remarked. Talk on the notes was in the 5¾% area, and they priced late day at 5 5/8%.

Proceeds from the new debt will redeem all of the company's shares held by its minority shareholders, an investor group led by Advent International. At closing of the transaction, 100% of the company's shares will be controlled by its co-founder, Diane M. Hendricks.

ABC is a Beloit, Wis.-based wholesale distributor of roofing, siding, windows and other select exterior building products.

Cooper Gay restructures

Cooper Gay Swett & Crawford lifted its seven-year first-lien term loan to $305 million from $280 million, trimmed pricing to Libor plus 375 bps from talk of Libor plus 400 bps to 425 bps and tightened the discount to 99½ from 99, according to a market source.

Also, the company cut its 71/2-year second-lien term loan to $120 million from $145 million, reduced the spread to Libor plus 700 bps from talk of Libor plus 725 bps to 750 bps and moved the original issue discount to 98½ from 98, the source remarked.

Both term loans still have a 1.25% Libor floor.

The first-lien loan continues to include 101 soft call protection for one year, and the second-lien term loan still has hard call protection of 103 in year one, 102 in year two and 101 in year three.

Cooper Gay getting revolver

Cooper Gay Swett & Crawford's $500 million senior secured credit facility, for which commitments were due at 5 p.m. ET on Thursday, also includes a $75 million five-year revolver.

Morgan Stanley Senior Funding Inc., J.P. Morgan Securities LLC, RBC Capital Markets and Wells Fargo Securities LLC are the joint lead arrangers on the deal, with Morgan Stanley and JPMorgan the joint bookrunners.

Proceeds will be used to repay existing Swett & Crawford term loans.

Cooper Gay Swett & Crawford is a London-based wholesale & reinsurance broker.

First Data tweaks OID

First Data changed the original issue discount on its $2,436,000,000 and €178 million first-lien term loans (B1/B+) due March 2017 to 99 5/8 from guidance of 99¼ to 991/2, while keeping pricing at Libor plus 400 bps with no Libor floor, according to a market source.

Recommitments were due at noon ET on Thursday, the source said.

Proceeds will reprice existing U.S. and euro term loans due 2017 from Libor plus 500 bps.

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

First Data is a Greenwood Village, Colo.-based provider of electronic commerce and payment services.

Cenveo flexes

Cenveo trimmed pricing on its $360 million seven-year term loan (Ba3/BB-) to Libor plus 500 bps from talk of Libor plus 575 bps to 600 bps and tightened the original issue discount to 99½ from 99, according to a market source.

The loan still has a 1.25% Libor floor and 101 soft call protection.

Recommitments were due on at 5 p.m. ET on Thursday. Allocations are expected to go out on Friday, the source said.

Bank of America Merrill Lynch and Macquarie Capital are leading the deal that will be used to refinance existing debt.

Cenveo is a Stamford, Conn.-based manager and distributor of print and related products and services.

Seminole Tribe revises offer

Seminole Tribe of Florida modified the offer price on its $750 million seven-year term loan B (Baa3) to par from talk of 99½ to 993/4, according to a market source.

The term loan B is priced at Libor plus 250 bps with a 0.75% Libor floor, and includes 101 soft call protection for six months.

Commitments are due at noon ET on Friday, the source said.

Bank of America Merrill Lynch and Credit Suisse Securities (USA) LLC are leading the transaction that will be used to refinance existing bank debt.

Seminole Tribe of Florida is a Hollywood, Fla.-based Indian tribe that owns and operates gaming and resort facilities throughout Florida.

Securus reveals talk

Also in the primary, Securus Technologies launched its credit facility on Thursday, and with the event, talk on the $335 million seven-year first-lien term loan (B2) and $155 million eight-year second-lien term loan (Caa2) was announced, according to a market source.

The first-lien term loan is talked at Libor plus 375 bps to 400 bps with a 1.25% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, the source said.

And, the second-lien term loan is talked at Libor plus 775 bps to 800 bps with a 1.25% Libor floor, a discount of 98½ and call protection of 103 in year one, 102 in year two and 101 in year three.

Deutsche Bank Securities Inc. and BNP Paribas Securities Corp. are leading the $540 million credit facility, which also includes a $50 million five-year revolver (B2).

Commitments are due on April 18, the source added.

Securus, a Dallas-based provider of inmate communications services and investigative technologies, will use the credit facility to help fund its buyout by ABRY Partners.

ConvergeOne guidance

ConvergeOne released talk of Libor plus 650 bps to 675 bps with a 1.25% Libor floor, an original issue discount of 99 and 101 soft call protection for one year on its $210 million six-year term loan B (Ba3) that launched with a bank meeting during the session, according to a market source.

In addition to the term loan B, the company's $230 million credit facility includes a $20 million five-year revolver (B3).

Commitments are due on April 18, the source said.

Goldman Sachs & Co. is leading the deal that will be used to refinance existing debt and fund a distribution to equity holders.

ConvergeOne is an Eagan, Minn.-based designer, implementer and manager of data and communications systems.

Playboy repricing

Playboy held its call in the afternoon, launching a repricing of its $10 million revolver and $175 million term loan to Libor plus 600 bps with a 1.5% Libor floor from Libor plus 650 bps with a 1.75% Libor floor, according to a market source.

The repriced term loan is being offered at an original issue discount of 981/2, the source said.

Lead, Jefferies Finance LLC, is seeking commitments for the $185 million credit facility by 5 p.m. ET on Wednesday.

Playboy is a Chicago-based media and lifestyle company.

Covis readies deal

Covis Pharma set a bank meeting for 2 p.m. ET on Monday to launch a $230 million credit facility that will be used to fund the acquisition of select off-patent drugs, according to a market source.

The facility consists of a $25 million five-year revolver and a $205 million six-year first-lien term loan that has 101 soft call protection for one year, the source said.

Credit Suisse Securities (USA) LLC and Morgan Stanley Senior Funding Inc. are leading the deal.

Covis is a Zug, Switzerland-based specialty pharmaceutical company.

MediMedia coming soon

MediMedia will host a bank meeting on Monday afternoon to launch a $335 million credit facility, according to a market source.

The facility consists of a $25 million revolver (B2), a $210 million first-lien term loan (B2) and a $100 million second-lien term loan (Caa2), the source said.

Goldman Sachs & Co., Jefferies Finance LLC and Wells Fargo Securities LLC are leading the deal that will be used to refinance existing debt.

MediMedia is a Yardley, Pa.-based specialty healthcare communications, publishing and medical education company.

GEO Group closes

In other news, GEO Group Inc. completed its $1 billion credit facility (Ba3/BB) that provides for a $700 million revolver due April 2018 and a $300 million term loan B due April 2020, according to a news release.

Pricing on the B loan is Libor plus 250 bps with a 0.75% Libor floor, and it was sold at par. There is 101 soft call protection for six months.

During syndication, the term loan B spread was cut from Libor plus 300 bps, the floor was trimmed from 1% and the offer price was tightened from 991/2.

Revolver pricing is Libor plus 250 bps with no floor.

BNP Paribas Securities Corp. led the deal that was used to refinance existing debt.

GEO Group is a Boca Raton, Fla.-based provider of correctional, detention and community reentry services.

Panda Temple wraps

Panda Temple II closed on the financing to fund the construction of a new 758-megawatt natural gas-fueled, combined-cycle power plant in Temple, Texas, according to a news release.

The financing included a $372 million six-year term loan B (B) that is priced at Libor plus 600 bps with a 1.25% Libor floor, and was sold at a discount of 99. The debt is non-callable for two years, then at 102 in year three and 101 in year four.

Recently, pricing on the loan was reduced from Libor plus 675 bps and the discount tightened from 981/2.

Goldman Sachs & Co. and Credit Suisse Securities (USA) LLC led the deal.

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