ILFC ups pricing, breaks; Asurion, NXP, AMC, A&P free up; Jarden, Focus Brands tweak deals

By Sara Rosenberg

New York, Feb. 16 - International Lease Finance Corp. (ILFC) widened the coupon and original issue discount on its term loan and then proceeded to free up for trading on Thursday afternoon, and New Asurion, NXP Semiconductors, AMC Entertainment Inc. and Great Atlantic & Pacific Tea Co. Inc. (A&P) hit the secondary as well.

Also in trading, Freescale Semiconductor Inc.'s term loan weakened with news of incremental debt, and Huntsman International LLC's term loans were better as the company released fourth-quarter numbers that showed improvement in earnings, revenues and adjusted EBITDA.

Back over in the primary, Jarden Corp. made some changes to its deal, upsizing both the incremental term loan A and term loan B and tightening the original issue discount on the B loan, and Focus Brands Inc. moved funds between its term loans while reducing first-lien pricing.

Furthermore, RailAmerica Inc., Capital Automotive and Aspen Dental Management Inc. released price talk on their term loans as the deals launched to investors during the session, and JMC Steel Group Inc. set the original issue discount on its add-on.

ILFC starts trading

International Lease Finance's $900 million senior secured term loan (Ba3/BBB-) emerged in the secondary market on Thursday after changes were made to pricing, and levels on the debt were seen at 99½ bid, par offered, according to a trader.

The term loan is priced at Libor plus 400 basis points 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.

Early in the day, the spread on the loan was flexed up from talk of Libor plus 350 bps to 375 bps and the discount increased from 991/2, a market source said.

Bank of America Merrill Lynch, Deutsche Bank Securities Inc., UBS Securities LLC and RBC Capital Markets LLC are the lead banks on the deal that will be used to repay some outstanding debt, including revolver borrowings, and for general corporate purposes.

International Lease is a Los Angeles-based independent aircraft lessor.

Asurion tops OID

NEW Asurion's $1 billion 71/2-year senior unsecured term loan (B2/B-) began trading too, with levels quoted at par bid, 101 offered on the break and then it moved up to par ½ bid, 101½ offered, according to a trader.

Pricing on the loan is Libor plus 950 bps with a 1.5% Libor floor, and it was sold at a discount of 97 after tightening earlier this week from 96. The tranche is non-callable for two years, then at 102 in year three and 101 in year four.

Morgan Stanley Senior Funding Inc. is the lead bank on the deal that will be used to buy back equity.

Asurion is a Nashville-based provider of technology protection services.

NXP wraps around 99

Also hitting the secondary was NXP Semiconductors' $475 million seven-year incremental term loan B (B2/B+), with levels quoted at 98¾ bid, 99¼ offered, according to a trader.

Pricing on the loan is Libor plus 400 bps with a 1.25% Libor floor, and it was sold at an original issue discount of 981/2. The debt is non-callable for one year, then at 101 in year two.

Morgan Stanley Senior Funding Inc. and Bank of America Merrill Lynch are the lead arrangers on the deal that will be used, along with $300 million of revolver borrowings, to refinance the company's roughly $775 million of senior unsecured notes due in 2015.

The borrowers of the new term loan will be NXP BV and NXP Funding LLC.

NXP is an Eindhoven, Netherlands-based provider of mixed-signal products and semiconductor components.

AMC term B-3 breaks

AMC Entertainment's $300 million six-year senior secured term loan B-3 (Ba2/BB-/BB) freed up on Thursday as well, with levels seen at 99½ bid, par offered, a trader told Prospect News.

Pricing on the loan is Libor plus 325 bps after flexing earlier this week from Libor plus 350 bps, with a 1% Libor floor. The debt was sold at an original issue discount of 99 and includes 101 soft call protection for one year.

Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. and J.P. Morgan Securities LLC are the lead banks on the deal that will be used, along with cash on hand, to fund a tender offer for up to $160 million of the company's $300 million of 8% senior subordinated notes due 2014 and to repay term loans due in 2013.

AMC Entertainment, a Kansas City, Mo.-based theatrical exhibition and entertainment company, has set an expiration date of March 6 for the notes tender offer.

A&P hits secondary

And yet another deal to break was Great Atlantic & Pacific Tea's $270 million term loan, with levels quoted at 98 bid, 99 offered on the open and then moving up to 99¼ bid, par ¼ offered, a trader said.

Pricing on the loan is Libor plus 900 bps with a 2% Libor floor, and it was sold at an original issue discount of 96. The debt is non-callable for two years, then at 102½ in year three.

During syndication, the term loan was downsized from $350 million, pricing was increased from Libor plus 700 bps with a 1.25% Libor floor and an original issue discount of 98, and call protection was sweetened from 102 in year one and 101 in year two.

The company's $645 million five-year exit facility also includes a $375 million ABL revolver that was reduced from $400 million.

J.P. Morgan Securities LLC and Credit Suisse Securities (USA) LLC are the lead banks on the deal that will be used by the Montvale, N.J.-based operator of supermarkets to repay a debtor-in-possession facility, pay Chapter 11 emergence costs and for general corporate purposes.

Freescale slides

In more trading happenings, Freescale Semiconductor's term loan dropped to 97½ bid, 98½ offered from 98½ bid, 99 offered as the company announced and launched with a call a $500 million senior secured seven-year incremental term loan B (B1), according to a trader.

Price talk on the new term loan B is Libor plus 450 bps to 475 bps with a 1.25% Libor floor and an original issue discount of 99, and there is 101 soft call protection for one year.

J.P. Morgan Securities LLC and Citigroup Global Markets Inc. are the lead banks on the deal that will be used to redeem some 10.125% senior subordinated notes due December 2016, and, at the company's option, a portion of its senior notes due 2014.

Freescale is an Austin, Texas-based designer and manufacturer of embedded semiconductors for the automotive, consumer, industrial, networking and wireless markets.

Huntsman heads higher

Huntsman's extended term loan B and term loan C were stronger in trading with the company's release of positive fourth quarter result, according to a trader.

The extended term loan B was quoted at 97¾ bid, 98¾ offered, up from 97½ bid, 98½ offered, and the term loan C was quoted at 97½ bid, 98½ offered, up from 97¼ bid, 98¼ offered, the trader said. The non-extended term loan B was unchanged at 99½ bid, par ¼ offered, he added.

For the fourth quarter, Huntsman reported net income of $105 million, or $0.44 per diluted share, compared to $30 million, or $0.12 per diluted share, in the prior year.

Revenues for the quarter were $2.6 billion, up 9% from $2.4 billion in the 2010 fourth quarter.

And, adjusted EBITDA was $243 million, up 11% from $219 million last year.

Huntsman is a Salt Lake City, Utah-based manufacturer and marketer of differentiated chemicals.

Jarden reworks deal

Moving to the primary, Jarden came out with revisions to its transaction in the morning, upsizing its incremental term loan B to $150 million from $125 million and its incremental term loan A to $150 million from $125 million, according to a market source.

In addition, the term loan B is now being sold at an original issue discount of 99¾ instead of at 991/2, the source said. Pricing remained at Libor plus 300 bps with no Libor floor, in line with the existing B loan.

Term loan A pricing is Libor plus 225 bps with no floor (same as existing), and the upfront fee was left unchanged at 25 bps, the source added.

Recommitments towards the now $300 million deal (Ba1), up from $250 million, were due on Thursday.

Jarden lead banks

Barclays Capital Inc. is the lead arranger on Jarden's loans and a joint bookrunner with Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Wells Fargo Securities LLC and SunTrust Robinson Humphrey Inc.

Proceeds will be used for general corporate purposes, which will include helping to fund the company's modified Dutch auction for up to $500 million of its common stock at a price of $30 to $33 per share. The offer expires on Feb. 23.

Other funds for the tender will come from cash on hand.

Jarden is a Rye, N.Y.-based consumer products company.

Focus restructures

Also revising its new deal was Focus Brands, as it shifted funds between its first- and second-lien term loans and tightened pricing on the first-lien debt, according to a market source.

Under the changes, the six-year first-lien term loan B (B1/B) is sized at $305 million, up from $290 million, and pricing is Libor plus 500 bps with a 1.25% Libor floor and an original issue discount of 99, versus initial talk of Libor plus 550 bps with a 1.25% floor and a discount of 98, the source said. The 101 soft call protection for one year was left unchanged.

Meanwhile, the 61/2-year second-lien term loan (Caa1/CCC+) was downsized to $115 million from $130 million, while pricing remained at Libor plus 900 bps with a 1.25% Libor floor and an original issue discount of 98, the source remarked. Call protection is still 103 in year one, 102 in year two and 101 in year three.

Focus getting revolver

Focus Brands' $435 million credit facility also provides for a $15 million five-year revolver (B1/B), and since the total deal size was unchanged, total leverage continues to be 5.8 times.

Lead bank, Credit Suisse Securities (USA) LLC, was seeking recommitments towards the revised deal by 5 p.m. ET on Thursday.

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

Focus Brands is an Atlanta-based franchisor and operator of ice cream stores, bakeries, restaurants and cafes.

RailAmerica sets talk

Meanwhile, RailAmerica Inc. held a bank meeting on Thursday to launch its $585 million seven-year senior secured term loan (B1/BB+), and with the event, price talk was announced, according to a market source.

The term loan is talked at Libor plus 300 bps to 325 bps with a 1% Libor floor and an original issue discount of 99 to 991/2, and there is 101 soft call protection for one year, the source said.

Commitments are due on Feb. 27.

Morgan Stanley & Co. LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and BMO Capital Markets Corp. are the lead banks on the deal that will be used to help fund a tender offer for up to $444 million of the company's 9¼% senior secured notes. Early tenders for about $513 million of the $518 million notes outstanding have already been received and will be accepted on a pro rata basis.

RailAmerica is a Jacksonville, Fla.-based owner and operator of short-line and regional freight railroads.

Capital Automotive guidance

Another deal to launch was Capital Automotive, and its $400 million add-on term loan B due March 2017 is being talked at Libor plus 350 bps with a 1.5% Libor floor and an original issue discount of 99, according to a market source.

Pricing is in line with existing term loan B pricing, which was done last year at a discount of 99 as well.

The add-on includes a roughly $230 million drawn tranche and a roughly $170 million delayed-draw until June 30 piece that has a delayed-draw fee of 50 bps from April 1 through May 1, 100 bps through June 1 and the full drawn spread through June 30, the source remarked.

Commitments are due on Feb. 23.

Capital Automotive amending

In connection with the new deal, Capital Automotive is seeking to amend its existing credit facility to allow for the term loan and make some other minor modifications, the source continued.

Lenders are being offered a 10 bps amendment fee.

Barclays Capital Inc. is the lead bank on the deal.

Proceeds from the funded loan will be used to refinance just under $200 million of preferred equity and clean up some other near-term debt maturities, and the delayed-draw loan will be used to fund some tuck-in acquisitions.

Capital Automotive is a McLean, Va.-based provider of sale-leaseback capital to the automotive retail industry.

Aspen Dental pricing

Aspen Dental launched its $127.4 million term loan B due Oct. 6, 2016 on Thursday as well, and set price talk of Libor plus 525 bps to 550 bps with a 1.5% Libor floor and an original issue discount of 98½ on the debt, according to a market source.

UBS Securities LLC and GE Capital Markets, the lead banks on the deal, are seeking commitments by March 1.

Proceeds will be used to fund a dividend.

With the new deal, the company is asking to amend its existing credit facility to increase the incurrence basket to $127.4 million for additional term loans and borrowing capacity under the existing revolver by $15 million.

Aspen Dental is an East Syracuse, N.Y.-based provider of denture and dental care services.

JMC discount firms

JMC Steel Group is selling its $100 million add-on term loan B (B1/BB) due April 1, 2017 at an original issue discount 991/2, which is the tight end of early whispered talk of 99 to 991/2, according to a market source.

As was previously reported, pricing on the loan matches existing term loan B pricing, which is Libor plus 325 bps with a 1.5% Libor floor.

The loan launched with a call in the morning, and commitments were due by 3 p.m. ET.

Proceeds from the add-on, along with $150 million of 8¼% senior notes due 2018 that priced on Wednesday at 103.25 to yield 7.466%, will be used for general corporate purposes, which may include acquisitions.

J.P. Morgan Securities LLC and Jefferies & Co. are the lead banks on the Chicago-based steel pipe and tube manufacturer's deal.

Taminco buyout closes

In other news, the purchase of Taminco Group Holdings by Apollo Global Management LLC from CVC Capital Partners has been completed, according to a news release.

For the transaction, Taminco got a new $703 million senior secured credit facility (B1) which consists of a $198 million five-year U.S./euro revolver that has a 50 bps unused fee, a $350 million U.S. seven-year covenant-light term loan B and a €120 million seven-year covenant-light term loan B.

Pricing on the term B's is Libor/Euribor plus 500 bps with a 1.25% floor. The debt was sold at an original issue discount of 98 and includes 101 soft call protection for six months.

During syndication, the B loan was lifted to $505 million from $452 million as the company's bonds were cut to $400 million from $452 million, the tranche was split into U.S. and euro pieces, spread was flexed from the Libor plus 525 bps area, the discount moved from 97 and call protection was added.

Citigroup Global Markets Inc., Nomura, Credit Suisse Securities (USA) LLC, UBS Securities LLC, Deutsche Bank Securities Inc. and Goldman Sachs & Co. led the deal for the Belgium-based producer of alkylamines and their derivatives.

ThermaSys closes

ThermaSys Corp. closed on its $142 million five-year credit facility that was used to fund its buyout by Wellspring Capital from Sun Capital Partners Inc., according to a news release.

The facility consists of a $30 million revolver and a $112 million term loan, both priced at Libor plus 450 bps with a 1.25% Libor floor, and sold at an original issue discount of 99.

Pricing on the facility was flexed down from Libor plus 500 bps during syndication.

GE Capital Markets led the deal.

ThermaSys is a Montgomery, Ala.-based supplier of highly engineered copper/brass and aluminum heat exchanger components and assemblies.

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