Yankee Candle, Asurion break; International Lease slides with paydown; Dex bids rise

By Sara Rosenberg

New York, March 14 - Yankee Candle Co. Inc.'s credit facility freed up on Wednesday, with the term loan B trading right around par, and Asurion LLC's add-on term loans broke after sizes and offer prices were finalized.

Also in the secondary market, International Lease Finance Corp.'s term loan-1 was a little lower as the company announced that it will be repaying the debt in full, and Dex West, Dex East and R.H. Donnelley Inc. saw bids rise with the launch of loan tender offers.

Switching to the primary, United Surgical Partners International Inc. made some changes to its term loan B extension offer, including adding a floor and increasing the extension fee.

Additionally, NPC International Inc. and Getty Images Inc. released price talk on their new term loans as the deals were presented to lenders during the session.

Furthermore, Alliance Laundry Systems LLC revealed that it will be shifting away from the institutional loan market through an all pro rata refinancing transaction, and Momentive Performance Materials Inc. is getting ready to bring a new term loan to market.

Yankee Candle starts trading

Yankee Candle's credit facility hit the secondary market on Wednesday, with the $725 million seven-year term loan B (B1/B+) quoted at 99 5/8 bid, par 1/8 offered on the open, and then it moved up to 99¾ bid, par ¼ offered, according to a trader.

Pricing on the B loan is Libor plus 400 basis points with a 1.25% Libor floor. It was sold at an original issue discount of 99 and includes 101 soft call protection for one year.

Earlier this week, the term loan B was upsized from $580 million and the spread firmed at the low end of the Libor plus 400 bps to 425 bps talk.

The company's $900 million senior secured credit facility also provides for a $175 million five-year asset-based revolver.

Yankee Candle refinancing

Proceeds from Yankee Candle's credit facility will be used to repay existing bank debt and redeem 8½% senior notes due 2015.

As a result of the term loan B upsizing, more of the notes will be repurchased than originally planned.

Bank of America Merrill Lynch and Barclays Capital Inc. are the lead banks on the deal.

Yankee Candle is a South Deerfield, Mass.-based designer, manufacturer, wholesaler and retailer of scented candles.

Asurion add-ons break

Asurion's first-and-second-lien add-on term loans also allocated and freed up, with the first-lien debt quoted at 99 1/8 bid, 99 5/8 offered and the second-lien debt quoted at 101 bid, 102 offered, according to traders.

The add-ons trade with the existing first-and second-lien term loans. On Tuesday, the existing first-lien term loan was quoted at 99¼ bid, 99 5/8 offered, and the existing second-lien loan was quoted at 101 bid, 102 offered, one trader added.

Proceeds from the add-on term loans will be used to repay the $575 million first-lien term loan at NEW Holdings and tender for the $300 million unsecured term loan at NEW Holdings at a price of 102.

The Nashville-based provider of technology protection services received 100% acceptance of the tender offer, a source remarked.

Asurion add-on details

On Wednesday, Asurion firmed its first-lien add-on term loan at $610 million with an original issue discount price of 98.51, a source said. At launch, the tranche was described as at least $575 million with a discount in the area of 98½ to 99.

The second-lien add-on term loan finalized at $300 million, the maximum amount available, and sold at its original offer price of par, the source continued.

Pricing on the first-lien loan is Libor plus 400 bps with a 1.5% Libor floor and pricing on the second-lien loan is Libor plus 750 bps with a 1.5% Libor floor - in line with existing first- and second-lien term loan pricing.

Morgan Stanley Senior Funding Inc., Bank of America Merrill Lynch, Goldman Sachs & Co., Barclays Capital Inc., Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. are the lead banks on the deal.

International Lease dips

In more trading happenings, International Lease Finance's $750 million term loan-1 due March 17, 2015 moved down to par bid, par ¾ offered from par ¼ bid, 101 offered on news that the tranche will be fully repaid with proceeds from a senior notes offering, according to a trader.

Remaining proceeds from the notes will be used for general corporate purposes, including the repayment of other existing debt and the purchase of aircraft.

Meanwhile, the company's term loan-2 saw levels tighten to par ¾ bid, 101 offered from par ¼ bid, 101¼ offered, and its new term loan was unchanged at 99 ½ bid, par offered, the trader added.

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

Dex, Donnelley bid up

Dex West, Dex East and R.H. Donnelley all saw their term loans bid higher in trading after parent company Dex One Corp. announced buyback offers for the debt, according to a trader.

The Dex West term loan was quoted at 61½ bid, 62½ offered, versus 61 bid, 62½ offered on Tuesday, the Dex East term loan was quoted at 51½ bid, 52½ offered, compared to 51 bid, 52½ offered previously, and the R.H. Donnelley term loan was quoted at 41½ bid, 42½ offered, versus 41 bid, 42½ offered, the trader said.

Dex West's term loan buyback is for a cash offer size of $23.5 million in a price range of 60 to 64, Dex East's tender is for a cash offer size of $12.5 million in a price range of 50½ to 541/2, and R.H. Donnelley's repurchase is for a cash offer size of $40 million in a price range of 41½ to 451/2.

J.P. Morgan Securities LLC is leading the tenders, which all expire at 5 p.m. ET on March 21.

Parent company, Dex One is a Cary, N.C.-based marketing services provider.

United Surgical extension

Over in the primary, United Surgical Partners came out with modifications to its term loan B amendment and extension proposal, adding a 75 bps floor on the extended debt, compared to no floor previously, and increasing the extension fee to 40 bps from 15 bps, according to a market source. The 10 bps consent fee was left intact.

Under the proposal, the company is looking to extend a portion of its $503 million first-lien term loan B to 2017 from current 2014.

In addition to the amendment and extension, the company is syndicating a new $455 million credit facility (B1/B) consisting of a $125 million five-year revolver and a $330 million incremental first-lien term loan B due 2019.

The term loan B is talked at Libor plus 450 bps to 475 bps with a 1.25% Libor floor and an original issue discount of 981/2, and includes 101 soft call protection for one year.

United Surgical lead banks

J.P. Morgan Securities LLC and Barclays Capital Inc. are the lead banks on United Surgical's deal, for which commitments were due on Wednesday.

Proceeds from the new credit facility will be used to help repay the company's existing $437.5 million of senior subordinated notes and to fund a special dividend to equity holders of about $270 million.

Other funds for the transaction will come from a proposed $440 million senior notes offering that is expected to price next week and cash on hand.

United Surgical Partners is a Dallas-based owner and operator of ambulatory surgery centers and surgical hospitals.

NPC pricing emerges

NPC International held a conference call on Wednesday afternoon to launch its proposed $375 million term loan B (Ba3/B), for which price talk came out at Libor plus 400 bps to 425 bps with a 1.25% Libor floor and a par offer price, according to a market source.

Proceeds will be used by the Overland Park, Kan.-based Pizza Hut franchisee to take out an existing $375 million term loan B that is priced at Libor plus 525 bps with a 1.5% Libor floor and was sold at an original issue discount of 98 when obtained late last year.

With the new loan, investors will get 101 soft call protection for one year, and existing lenders are getting paid out at 101 since the 2011 deal had call protection as well, the source said.

Maturity of the new term loan is Dec. 28, 2018, same as on the existing term loan.

Lead banks, Barclays Capital Inc. and Goldman Sachs & Co, are seeking commitments by 5 p.m. ET on March 21.

Getty sets talk

Another company to come out with guidance was Getty Images, as it launched a $275 million term loan B-1 to investors, according to a market source.

The loan is being shopped at Libor plus 375 bps with no Libor floor and an original issue discount of 991/2, the source said.

Commitments are due at 5 p.m. ET on March 21.

Bank of America Merrill Lynch, GE Capital Markets, BMO Capital Markets Corp., RBC Capital Markets LLC and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to fund a dividend.

Getty Images is a Seattle-based creator and distributor of visual content and other media.

Alliance Laundry readies deal

Also on the new deal front, Alliance Laundry Systems surfaced with plans to hold a bank meeting on Thursday to launch a new $350 million five-year credit facility that consists of a $75 million revolver and a $275 million term loan A, according to an informed source.

Through this transaction, the Ripon, Mass.-based commercial laundry equipment company is exiting the institutional market as proceeds from the new credit facility will be used to repay in full a $243 million term loan B due September 2016 that is priced at Libor plus 450 bps with a 1.75% Libor floor.

In addition, the new facility will be used to refinance an existing $60 million revolver due September 2015, to pay a special dividend and for general corporate purposes.

Bank of America Merrill Lynch, BMO Capital Markets Corp., Morgan Stanley Senior Funding Inc. and Fifth Third Securities Inc. are the co-arrangers on the deal.

Momentive plans loan

Momentive Performance Materials set a conference call for 11 a.m. ET on Thursday to launch a proposed $175 million senior secured term loan due May 5, 2015 that will be used to repay existing term loan borrowings maturing Dec. 4, 2013, according to a market source.

Pricing on the loan is Libor plus 350 bps, in line with the existing roughly $925 million term loan due 2015, and original issue discount is not yet available, the source remarked.

J.P. Morgan Securities LLC, BMO Capital Markets Corp., Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co., Morgan Stanley Senior Funding Inc. and UBS Securities LLC are the bookrunners on the deal.

Momentive is a Columbus, Ohio-based producer of thermoset resins.

Sonneborn nets interests

In other news, Sonneborn LLC's $270 million senior secured credit facility (B1/B) is heard to be "going very well" ahead of Thursday's commitment deadline, a market source told Prospect News.

The facility consists of a $30 million five-year revolver, and a $240 million six-year term loan B that is talked in the Libor plus 550 bps context with a 1.5% Libor floor and an original issue discount of 98.

Macquarie Capital and BMO Capital Markets Corp. are the lead banks on the deal that will be used to fund the buyout of the company by One Equity Partners from Sun Capital Partners Inc.

Total and senior leverage is 3.8 times.

Sonneborn, a Parsippany, N.J.-based manufacturer and supplier of high-purity specialty hydrocarbons, expects to close on the transaction on March 30.

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