Data Device, Pelican Products break; Chesapeake up on asset sale buzz; Lee Enterprises rises

By Sara Rosenberg

New York, June 6 - Data Device Corp.'s credit facility hit the secondary market on Wednesday, with the first-lien term loan seen above its original issue discount and the second-lien term loan bid right around its discount price, and Pelican Products Inc. freed up too.

Also in trading, Chesapeake Energy Corp.'s term loan was stronger on chatter of a potential asset sale, and Lee Enterprises Inc.'s first-lien term loan gained ground on the back of news that Berkshire Hathaway Inc. owns a small stake in the company.

Switching to the primary market, Wolverine Worldwide Inc. and Zayo Group LLC released price talk on their term loan B's as the deals were presented to lenders during the session.

Data Device frees up

Data Device's credit facility broke for trading on Wednesday, with the $300 million six-year first-lien delayed-draw term loan (B1/BB-) quoted at 98½ bid, 99½ offered and the $80 million seven-year second-lien delayed-draw term loan (Caa1/B-) quoted at 98 bid, 99 offered, according to a trader.

Pricing on the first-lien term loan is Libor plus 600 basis points and pricing on the second-lien term loan is Libor plus 1,000 bps, with both tranches having a 1.5% Libor floor and sold at an original issue discount of 98.

The first-lien loan has 101 repricing protection for one year, and call protection on the second-lien loan is 103 in year one, 102 in year two and 101 in year three.

During syndication, the first-lien loan was upsized from $240 million, the second-lien was downsized from $120 million and pricing on the second-lien debt was increased from Libor plus 950 bps.

Data Device revolver

Data Device's $410 million credit facility also includes a $30 million five-year revolver (B1/BB-) priced at Libor plus 600 bps with a 1.5% Libor floor and sold at an original issue discount of 98.

Credit Suisse Securities (USA) LLC is the lead bank on the deal.

Proceeds will be used to help fund Behrman Capital PEP's buyout of the company.

Data Device is a Bohemia, N.Y.-based supplier of defense electronics.

Pelican starts trading

Another deal to make its way into the secondary was Pelican Products with its $350 million six-year first-lien term loan (B1/B+) and its $100 million seven-year second-lien term loan (Caa1/B) quoted at 98½ bid, according to a trader.

Pricing on the first-lien term loan is Libor plus 550 bps and pricing on the second-lien term loan is Libor plus 1,000 bps, with both tranches having a 1.5% Libor floor and sold at an original issue discount of 98.

The first-lien loan has 101 repricing protection for one year and the second-lien loan has call protection of 103 in year one, 102 in year two and 101 in year three.

Last week, the first-lien term loan was upsized from $335 million, the second-lien term loan was downsized from $115 million and the coupon on the second-lien tranche was raised from Libor plus 900 bps.

Pelican being acquired

Proceeds from Pelican Products' $480 million credit facility, which also provides for a $30 million revolver (B1/B+), will be used to help fund the purchase of the company by Behrman Capital PEP from an existing Behrman fund.

Pricing on the revolver is Libor plus 550 bps with a 1.5% Libor floor, and it was sold at an original issue discount of 98.

Credit Suisse Securities (USA) LLC is the lead bank on the deal.

Pelican Products is a Torrance, Calif.-based designer and manufacturer of advanced lighting systems and virtually indestructible cases.

Chesapeake heads higher

In more trading happenings, Chesapeake Energy's term loan was better on Wednesday following the emergence of news reports saying that the company is considering the sale of its pipelines for over $4 billion, according to traders.

The loan was quoted by one trader at 98¾ bid, 99 offered, up from 97¾ bid, 98 offered, and by a second trader at 98¾ bid, 99 1/8 offered, up from 97¾ bid, 98 offered.

The second trader went on to say that the debt was pretty active during the day.

Chesapeake Energy is an Oklahoma City-based producer of natural gas as well as oil and natural gas liquids, and a driller of new wells.

Lee Enterprises strengthens

Lee Enterprises' first-lien term loan saw its levels rise in the secondary market as investors reacted to news that Berkshire Hathaway owns about 1.66 million shares in the company, according to a trader.

The ownership stake was disclosed in a 13F-HR/A filed with the Securities and Exchange Commission late Tuesday.

With the news, the first-lien term loan was quoted at 81 bid, 82 offered, up from 79½ bid, 80½ offered, the trader said, adding that the second-lien debt was unchanged at 81 bid, 83 offered.

Lee is a Davenport, Iowa-based print and digital provider of local news, information and advertising.

Wolverine reveals talk

Moving to the primary, Wolverine Worldwide held a bank meeting on Wednesday afternoon to kick off syndication on its $500 million seven-year term loan B, and with the launch, price talk was announced, according to a market source.

The term loan B is talked at Libor plus 375 bps with a 1% Libor floor and an original issue discount of 99, and includes 101 soft call protection for one year, the source said.

The company's $1.1 billion senior secured credit facility (Ba2/BB) also provides for a $200 million five-year revolver and a $400 million five-year term loan A.

J.P. Morgan Securities LLC and Wells Fargo Securities LLC are the lead banks on the deal.

In addition to the credit facility, the company is planning a $375 million senior unsecured notes offering that is backed by a commitment for a $375 million senior unsecured bridge loan.

Wolverine funding acquisition

Proceeds from Wolverine Worldwide's new debt will be used to finance the $1.23 billion purchase of Collective Brands Inc.'s Performance + Lifestyle Group, which includes the wholesale and retail operations of the Sperry Top-Sider, Saucony, Stride Rite and Keds brands.

Recently, Collective Brands agreed to be acquired for $21.75 per share in cash, or about $2 billion including debt assumption, by Wolverine, Blum Capital Partners and Golden Gate Capital.

While Wolverine is getting the Performance + Lifestyle Group, Blum Capital and Golden Gate are getting the operations of Payless ShoeSource and Collective Licensing International.

For its part, Blum Capital and Golden Gate Capital have received a commitment for a $250 million senior secured asset-based revolver from Wells Fargo Capital Finance for the buyout.

Wolverine is a Rockford, Mich.-based marketer of branded casual, active lifestyle, work, outdoor sport and uniform footwear and apparel. Collective Brands is a Topeka, Kan.-based footwear company.

Zayo guidance surfaces

Zayo Group also came out with price talk with its afternoon bank meeting, with the $1.5 billion seven-year term loan B guided at Libor plus 575 bps to 600 bps with a 1.25% Libor floor, an original issue discount of 98 and 101 soft call protection for one year, according to market sources.

Commitments are due on June 14, sources remarked.

The company's $1.75 billion senior secured credit facility (B1) also provides for a $250 million revolver.

Morgan Stanley Senior Funding Inc. and Barclays Capital Inc. are the lead arrangers on the term loan and bookrunners with RBC Capital Markets LLC., and revolver arrangers are SunTrust Robinson Humphrey Inc., Morgan Stanley, Barclays, UBS Securities LLC, RBC and Goldman Sachs & Co.

Zayo buying AboveNet

Proceeds from Zayo's credit facility, along with $1.25 billion of bonds, $290 million of equity from GTCR and Charlesbank Capital Partners and cash on hand, will be used to fund the purchase of AboveNet Inc. for $84 per share in cash, or about $2.2 billion, and to refinance debt at both companies.

Backing the bonds is a commitment for a $750 million senior secured bridge loan and a $500 million senior unsecured bridge loan.

Closing is expected mid-year, subject to customary approvals.

Zayo is a Louisville, Colo.-based provider of fiber-based bandwidth infrastructure and network-neutral colocation and interconnection services. AboveNet is a White Plains, N.Y.-based provider of high-bandwidth connectivity services for businesses and carriers.

NCI launches

NCI Building Systems Inc. also held a bank meeting on Wednesday, and lenders were told that commitments towards its $250 million seven-year first-lien term loan (B) are due on June 19, a source said.

Talk on the loan is Libor plus 600 bps with a 1.25% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, and the debt includes a maximum net total leverage covenant.

By comparison, in previous regulatory filings, the company had said that pricing would be Libor plus 550 bps with a 1.25% Libor floor, and the loan would be covenant-light.

Credit Suisse Securities (USA) LLC, RBC Capital Markets LLC, UBS Securities LLC and Citigroup Global Markets Inc. are leading deal that will be used with cash on hand to fund the $145 million purchase of Metl-Span LLC from BlueScope Steel North America Corp. and refinance existing bank debt.

NCI is a Houston-based manufacturer of metal products for the nonresidential building industry. Metl-Span is a Lewisville, Texas-based manufacturer and marketer of insulated building panel products.

Bausch closes

In other news, Bausch & Lomb Inc. completed its purchase of ISTA Pharmaceuticals Inc. for $9.10 per share, or about $500 million, according to an 8-K filed with the Securities and Exchange Commission.

To help fund the transaction and refinance existing debt, Bausch & Lomb got a new roughly $3.43 billion credit facility (B1/B+), consisting of a $500 million five year revolver, a $1,935,000,000 seven-year covenant-light term loan B and a €460 million seven-year covenant-light term loan B and a $400 million covenant-light delayed-draw term loan due Sept. 30, 2015.

Pricing on the U.S. term loan B is Libor plus 425 bps and pricing on the euro loan is Euribor plus 475 bps, with both pieces having a 1% Libor floor and 101 soft call protection for one year. The term loan B's were sold at an original issue discount of 99.

The delayed-draw loan is priced at Libor plus 375 bps with a 1% Libor floor, and the commitment fee is 100 bps through June 30, 187.5 bps from July 1 through Aug. 15, and 475 bps from Aug. 16 through Oct. 31. It was sold at a discount of 99.

Bausch lead banks

Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. and Bank of America Merrill Lynch led the deal for Bausch & Lomb.

During syndication, the U.S. term loan B was downsized from $2,035,000,000 and pricing was increased from talk of Libor plus 375 bps to 400 bps. Also, pricing on the euro B loan was lifted from talk of Euribor plus 400 bps to 425 bps. And, the delayed-draw loan was upsized from $350 million, pricing firmed at the tight end of the Libor plus 375 bps to 400 bps guidance and the maturity was shortened from seven years.

Bausch & Lomb is a Rochester, N.Y.-based eye health company. ISTA is an Irvine, Calif.-based branded prescription eye care business.

Wolverine Health wraps

The $1.25 billion buyout of Wolverine Healthcare Analytics by Veritas Capital from Thomson Reuters has closed, according to a news release.

For the transaction, Wolverine Healthcare got a new $577.6 million credit facility (Ba3/B+) consisting of a $50 million five-year revolver and a $527.6 million seven-year term loan B, both priced at Libor plus 550 bps. The term loan B has a 1.25% Libor floor and 101 soft call protection for one year and was sold at a discount of 98.

During syndication, the B loan was upsized from $525 million, pricing flexed up from Libor plus 425 bps and the discount widened from 981/2.

J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Morgan Stanley Senior Funding Inc. and UBS Securities LLC led the deal.

Wolverine Healthcare is a provider of data, analytics and performance benchmarking services to hospitals, health systems, employers, health plans, government agencies and health care professionals.

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