Elo breaks; Beasley reworked; Savers, U.S. Renal, Archway, Precision, Sheridan set talk

By Sara Rosenberg

New York, June 13 - Elo Touch Solutions' credit facility allocated and made its way into the secondary market on Wednesday, with indicative levels on the first- and second-lien term loans seen above their original issue discount prices.

Over in the primary, Beasley Broadcast Group Inc. came out with a new round of changes to its credit facility, eliminating the term loan B and adding a term loan A and second-lien tranche to the capital structure.

Also, Savers Inc., U.S. Renal Care Inc., Archway Marketing Services Inc. and Precision Partners Holding Co. released pricing guidance on their credit facilities as the transactions were launched to investors during market hours.

Furthermore, Sheridan Holdings Inc. started going out with price talk on its upcoming credit facility, WireCo WorldGroup Inc. and Acosta Sales & Marketing surfaced with new deal plans, and use of proceeds on AWAS Aviation Capital Ltd.'s term loan emerged ahead of its launch.

Elo frees up

Elo Touch Solutions' credit facility broke for trading, with the $175 million six-year first-lien term loan (B1/B+) quoted at 96¾ bid, 97¾ offered and the $85 million 61/2-year second-lien term loan (Caa1/CCC+) quoted at 97 bid, 98 offered, according to a trader.

The trader said that the levels were more of an indication level, since the debt wasn't really trading.

Pricing on the first-lien term loan is Libor plus 650 basis points with a 1.5% Libor floor, and it was sold at an original issue discount of 96. There is 101 repricing protection for one year.

The second-lien term loan is priced at Libor plus 1,050 bps with a 1.5% Libor floor, and was sold at a discount of 96. The debt is non-callable for one year, then at 103 in year two and 101 in year three.

Elo getting revolver

Elo Touch Solutions' $275 million credit facility, led by Credit Suisse Securities (USA) LLC and Goldman Sachs & Co., also includes a $15 million revolver.

During syndication, the first-lien term loan was downsized from $180 million, pricing was flexed up from Libor plus 525 bps, the floor was increased from 1.25% and the discount widened from revised talk of 97 and initial talk of 98.

Meanwhile, the second-lien term loan was downsized from $90 million, pricing was lifted from revised talk of Libor plus 1,025 bps and initial talk of Libor plus 950 bps, the floor widened from 1.25% and the discount was revised from 97 and, before that, from 98.

Proceeds were used to fund the $380 million buyout of the company by the Gores Group from TE Connectivity. Because of the term loan downsizings, the equity for the transaction was increased.

Elo is a Menlo Park, Calif.-based supplier of touch screens, touch monitors and all-in-one touch computers.

Cengage steady

Cengage Learning Acquisitions Inc.'s term loan B was fairly flat as the company revealed that it will need to restate its financial statements for 2011 and first, second and third quarters for 2012 to adjust reported deferred tax assets and liabilities, according to a trader.

The company determined that it should not have recorded valuation allowances relating to the future utilization of deferred tax assets for select entities within the United States and United Kingdom.

The adjustments will increase cumulative partners' equity, and will not have any impact on the its previously reported revenues, adjusted EBITDA, cash flow, tax filings or compliance with debt covenants.

With the news, the extended term loan B was quoted at 85 bid, 85¾ offered, versus 85 bid, 85½ offered on Tuesday, the trader said. And, the company's non-extended term loan was quoted at 91¼ bid, 92¼ offered, up from 91 bid, 92 offered.

Cengage is a Stamford, Conn.-based provider of teaching, learning and research services for the academic, professional and library markets.

Beasley restructures

Moving to the primary, Beasley Broadcast Group restructured its credit facility, adding a $90 million term loan A and a $25 million second-lien term loan and removing the $120 million six-year term loan B, according to a market source. The $20 million revolver was left intact.

Pricing on the term loan A and the revolver is Libor plus 500 bps with no Libor floor and an original issue discount of 99, and the second-lien term loan is talked at Libor plus 950 bps to 1,000 bps with a 1.25% Libor floor and an original issue discount that is still to be determined, the source said.

The cancelled term loan B had been talked at Libor plus 500 bps with a 1.25% Libor floor and an original issue discount of 99. Initially, the B loan was sized at $130 million, but in late May it was reduced to $120 million with those lost funds expected to be made up for with cash on the balance sheet.

GE Capital Markets is the lead bank on the deal that will be used to refinance existing debt.

Beasley is a Naples, Fla.-based radio broadcasting company.

Savers discloses guidance

Savers held a bank meeting on Wednesday morning to kick off its credit facility, and with the event, price talk on the $655 million seven-year term loan B was announced at Libor plus 500 basis points to 525 bps with a 1.25% Libor floor and an original issue discount of 98 to 981/2, a market source said.

The company's $730 million senior secured credit facility (Ba3) also provides for a $75 million five-year revolver.

Goldman Sachs Lending Partners LLC, Barclays Bank plc, Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. are leading the deal that will help fund the company's buyout by Leonard Green & Partners LP, TPG and management from Freeman Spogli & Co.

Savers, a Bellevue, Wash.-based thrift store chain, will also issue $295 million of private unsecured notes that will be purchased by Crescent Capital Group.

Closing on the buyout is expected to occur in July.

U.S. Renal launches

Another company to host a bank meeting was U.S. Renal Care, at which time guidance on its covenant-light first-and second-lien term loans was revealed, a source remarked.

The $305 million first-lien term loan is talked at Libor plus 500 bps to 525 bps with a 1.25% Libor floor, an original issue discount of 98½ and 101 soft call protection for one year.

Meanwhile, the $120 million second-lien term loan is talked at Libor plus 850 bps with a 1.25% floor, a discount of 98 and call protection of 103 in year one, 102 in year two and 101 in year three, the source continued.

The company's $485 million credit facility also includes a $60 million revolver.

Lead banks, Barclays Capital Inc., RBC Capital Markets LLC and Goldman Sachs & Co., are seeking commitments by June 27 for the deal that will help fund the purchase of the company by Leonard Green & Partners L.P. from Cressey & Co.

U.S. Renal is a Dallas-based owner, operator and developer of dialysis centers.

Archway pricing

Archway Marketing Services also came out with price talk on Wednesday in connection with its launch, a market source said.

The entire $175 million credit facility - comprised of a $30 million five-year revolver, a $35 million six-year delayed-draw for three years term loan and a $110 million six-year term loan - is talked at Libor plus 525 bps with a 1.25% Libor floor and an original issue discount of 99, the source continued.

GE Capital Markets and ING Financial Markets LLC are leading the deal that will help fund the buyout of the company by Investcorp from Tailwind Capital, Black Canyon Capital and management.

Senior leverage will be 3.7 times and total leverage will be 5.2 times.

Archway is a Rogers, Minn.-based marketing logistics and fulfillment services company.

Precision comes to market

Precision Partners launched a $50 million revolver and a $100 million term loan A during the session at talk of Libor plus 275 bps, with the revolver having a 37.5 bps unused fee, according to a market source.

M&T Bank is leading the $150 million five-year pro rata credit facility that will be used to refinance existing debt and for general corporate purposes.

Total leverage is 2.5 times net of cash, the source said.

Precision Partners is a Skokie, Ill.-based advanced manufacturing and engineering services company for energy, aerospace, transportation and infrastructure.

Sheridan floats talk

Sheridan Holdings released price talk on its proposed $810 million credit facility in preparation for its bank meeting that is slated to take place at 10:30 a.m. ET on Thursday, according to market sources.

The $100 million five-year revolver and $570 million six-year first-lien term loan are both talked at Libor plus 475 bps to 500 bps, and the $140 million seven-year second-lien term loan is talked at Libor plus 825 bps to 850 bps, sources remarked.

Both term loans have a 1.25% Libor floor and an original issue discount of 98, while the revolver has no floor and a discount price of 99.

Included in the first-lien term loan is 101 repricing protection for one year, and the second-lien term loan has call protection of 103 in year one, 102 in year two and 101 in year three, sources continued.

Sheridan lead banks

Credit Suisse Securities (USA) LLC and Barclays Capital Inc. are the joint lead arrangers on Sheridan Holdings' credit facility.

Bookrunners on the transaction include the two lead arrangers, as well as Bank of America Merrill Lynch, UBS Securities LLC and SunTrust Robinson Humphrey Inc., sources added.

Proceeds will be used to refinance existing debt.

Sheridan Holdings is a Sunrise, Fla.-based provider of outsourced health care services.

WireCo readies deal

WireCo WorldGroup joined this week's calendar, setting a bank meeting for Thursday to launch a proposed $460 million senior secured credit facility due Feb. 15, 2017, according to sources.

The facility consists of a $135 million revolver with a 50 bps unused fee and no Libor floor, and a $325 million term loan B with a 1.25% Libor floor and 101 soft call protection for one year, sources said. Pricing is not yet available.

Goldman Sachs & Co. and Deutsche Bank Securities Inc. are leading the deal that will be used with $82.5 million in privately placed 11.75% senior notes due May 15, 2017 to fund the $231.2 million purchase of Koninklijke (Royal) Lankhorst Euronete Group BV and to refinance existing bank debt.

Total leverage will be 5.4 times and net leverage will be 5.1 times.

WireCo is a Kansas City, Mo.-based wire, wire rope, wire rope assemblies and electromechanical cable company. Koninklijke is a Netherlands-based manufacturer of ropes, industrial yarns, netting, yachting products and recycled plastic products.

Acosta plans add-on

Acosta Sales & Marketing is set to hold a conference call on Thursday to launch a $300 million add-on term loan that is being led by Goldman Sachs & Co., Barclays Capital Inc. and Bank of America Merrill Lynch, according to a market source.

Proceeds will be used to help fund the purchase of Mosaic Sales Solutions, which is anticipated to close in July.

Acosta is a Jacksonville, Fla.-based full-service sales and marketing agency in the consumer packaged goods industry. Mosaic is sales a and merchandising, experiential marketing and interactive firm with U.S. headquarters in Dallas.

AWAS use of proceeds

AWAS Aviation plans on using its proposed $360 million six-year term loan to fund a portfolio of aircraft, a market source told Prospect News.

The deal, which is scheduled to launch with a bank meeting on Thursday, is being led by Goldman Sachs & Co., RBC Capital Markets LLC and Morgan Stanley Senior Funding Inc., the source said.

Price talk on the loan is not yet available.

AWAS is a Dublin-based aircraft leasing company.

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