RPI Finance add-on breaks; Tribune up as ruling imminent; Endurance revises first-lien OID

By Sara Rosenberg

New York, July 11 - RPI Finance Trust (Royalty Pharma) launched an add-on term loan on Wednesday and freed it up for trading in the afternoon above its original issue discount price, and Tribune Co.'s debt was stronger as the company's bankruptcy process is moving along, with the judge overseeing the case anticipated to rule on the reorganization plan this week.

Over in the primary, Endurance International Group (EIG Investors Corp.) modified the original issue discount on its first-lien term loan, and Booz Allen Hamilton Inc. disclosed the size and structure on its credit facility in preparation for its bank meeting.

Also, National Vision Inc., Van Wagner Communications LLC, Drew Marine and Inteva Products LLC released price talk on their loans and IPS Corp. set original issue discount guidance as the deals were presented to investors during the session.

RPI Finance frees up

RPI Finance Trust's $150 million add-on senior secured term loan (Baa2/BBB-) due Nov. 9, 2018 hit the secondary market on Wednesday afternoon, with levels quoted at 99½ bid, par offered, according to a trader.

The add-on trades with the existing November 2018 term loan, which was quoted at 99½ bid, par ½ offered on Tuesday. The debt had softened a bit in the morning to 99 3/8 bid, 99 7/8 offered after news of the incremental debt came out, but bounced back to end the day unchanged.

Pricing on the add-on and the existing loan is Libor plus 300 basis points with a 1% Libor floor. The add-on was sold at an original issue discount of 99, while the existing loan was sold at a discount of 98½ when it was done in May. There is 101 soft call protection through May 30, 2013.

RPI Finance upsizes

When launched in the morning, RPI Finance Trust's add-on was sized at $100 million, but it was increased by $50 million as a result of strong demand.

Bank of America Merrill Lynch and Goldman Sachs & Co. are the lead arrangers on the deal that is expected to close early next week.

Proceeds will be used for general corporate purposes.

Royalty Pharma is a New York-based acquirer of royalty interests in marketed and late-stage biopharmaceutical products.

Tribune heads higher

Also in trading, Tribune's bank debt gained some ground as news emerged that the judge on its bankruptcy case will have a final opinion on its reorganization plan by Friday, according to a trader.

The term loan B was quoted at 68¼ bid, 69¼ offered, up from 67 bid, 68 offered, the incremental loan and term loan X were quoted at 67¼ bid, 68¼ offered, up from 66 bid, 67 offered, and the revolver was quoted at 72½ bid, 74½ offered, up from 71 bid, 73 offered, the trader said.

Under the plan, the company would transfer its broadcast licenses to a new ownership group that includes senior creditors Oaktree Capital Management, Angelo, Gordon & Co. and JPMorgan Chase.

Tribune, a Chicago-based media company, believes it could emerge from Chapter 11 by the end of the year and that it will distribute around $7 billion to creditors.

BWIC surfaces

A $173.4 million Bid-Wanted-in-Competition was announced in the afternoon, and investors are being asked to get their bids in by 11 a.m. ET on Friday, according to a trader.

There are about 50 names in the portfolio, the trader said.

Some of the larger pieces of debt being offered include Caesars Entertainment Operating Co.'s term loan B-5, Cengage Learning Acquisition's extended term loan, Chrysler Group LLC's term loan, Generac Power Systems Inc.'s term loan, Guitar Center's extended term loan, IPC Systems; non-extended first-lien term loan, LPL Holdings Inc.'s term loan A, Realogy Corp.'s extended strip, Rove Corp.'s term loan A-2, and Windstream Corp.'s term loan A-3.

Endurance tweaks OID

Switching to the primary, Endurance International moved the original issue discount on its $135 million first-lien term loan (B1/B) due April 2018 to 99 from 98, while leaving pricing at Libor plus 625 bps with a 1.5% Libor floor, in line with existing first-lien term loan pricing, a market source said. There is still 101 soft call protection through April 2013.

Recommitments were due at noon ET on Wednesday, and allocations and closing are expected this week, the source remarked.

The company is also getting a $140 million second-lien term loan (Caa1/CCC+) priced at Libor plus 950 bps with a 1.5% Libor floor and an original issue discount of 98, and a $20 million increase to its revolver. The second-lien loan includes call protection of 103 in year one, 102 in year two and 101 in year three.

Endurance lead banks

Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc. and Goldman Sachs & Co. are the lead banks on Endurance's new loans.

Earlier this week, the first-lien term loan was upsized from $100 million and the second-lien term loan was upsized from $125 million due to strong demand.

Proceeds from the new debt will be used to fund the acquisition of HostGator.

Endurance is a Burlington, Mass.-based provider of web hosting and online services to small- and medium-sized businesses. HostGator is a Houston-based provider of web hosting service.

Booz Allen tranching emerges

Details on Booz Allen Hamilton's proposed credit facility came out ahead of its Thursday bank meeting, with the senior secured deal size revealed to be $2.25 billion, split between a $500 million revolver, a $500 million term loan A and a $1.25 billion term loan B, according to a market source.

Price talk on the revolver and term loan A is Libor plus 275 bps, the source said, adding that term loan B talk is not yet out.

Bank of America Merrill Lynch and Credit Suisse Securities (USA) LLC are leading the deal that will be used with around $260 million of cash on hand to refinance about $959 million of senior secured debt and fund an up to $1 billion special dividend to stockholders.

Booz Allen Hamilton is a McLean, Va.-based provider of management and technology consulting services to the U.S. government in the defense, intelligence and civil markets.

National Vision sets talk

In more primary news, National Vision held a bank meeting in New York on Wednesday morning, and with the launch, pricing guidance on its $300 million six-year term loan B was announced, according to a market source.

The term loan B is talked at Libor plus 550 bps to 575 bps with a 1.25% Libor floor and an original issue discount of 981/2, and includes 101 soft call protection for one year, the source remarked.

J.P. Morgan Securities LLC and UBS Securities LLC are the lead banks on the $325 million credit facility (B1/BB-), which also provides for a $25 million revolver.

Proceeds will be used to refinance existing and pay a distribution to shareholders.

National Vision is a Lawrenceville, Ga.-based optical retailer.

Van Wagner guidance

Van Wagner Communications also released talk in connection with its morning meeting, with the $175 million seven-year term loan B launched at Libor plus 600 bps to 625 bps with a 1.25% Libor floor, an original issue discount of 98 and 101 soft call protection for one year, according to sources.

Commitments towards the company's $200 million senior secured credit facility, which also includes a $25 million five-year revolver, are due at 5 p.m. ET on July 25, sources said.

Barclays Capital Inc. and GE Capital Markets are the lead banks on the deal that will refinance existing debt, fund an upfront cash payment for an acquisition and for general corporate purposes.

Expected ratings are B3/B-, sources added.

Van Wagner, an out-of-home advertising company, will have net senior secured leverage of 5.2 times.

Drew Marine pricing

Another deal to launch and disclose guidance was Drew Marine, with its $115 million six-year term loan talked at Libor plus 525 bps with a 1.5% Libor floor, according to a market source.

For new money there is an original issue discount of 99 and for old money there is a discount of 991/2, the source said, explaining that the amount of new money will depend on how many existing lenders rollover their positions.

The company's $135 million credit facility also includes a $20 million five-year revolver.

Lead bank BNP Paribas Securities Corp. is seeking commitments by July 24.

Drew funding acquisition

Proceeds from Drew Marine's credit facility will be used to fund the purchase of Chemring Group plc's maritime interests for £32 million and to refinance existing debt.

Closing is expected by the end of this month, subject to regulatory approvals.

Drew Marine is a Whippany, N.J.-based provider of technical solutions and services to the marine industry. The maritime business, which will be named Drew Marine Signal and Safety, is a Hampshire, U.K.-based supplier of marine distress signals.

Inteva launches

Continuing on the price talk front, Inteva Products launched its $225 million term loan in the afternoon at Libor plus 700 bps with a 1.5% Libor floor and an original issue discount of 98, according to a market source, who said the debt includes hard call protection of 102 in year one and 101 in year two.

Citigroup Global Markets Inc. and Bank of America Merrill Lynch, the leads on the deal, are asking for commitments by July 25, the source remarked.

Proceeds will be used to refinance existing debt and for general corporate purposes.

Inteva is a Troy, Mich.-based supplier offering products to original equipment vehicle manufacturers in the automotive, commercial, defense, marine and industrial industries, as well as products for the consumer market.

IPS reveals discount

IPS came out with original issue discount talk of 98½ on its $115 million five-year credit facility that also launched during the session, according to a market source.

Price talk on the deal, which is comprised of a $20 million revolver and a $95 million term loan, was announced earlier at Libor plus 525 bps with a 1.25% Libor floor.

GE Capital Markets is leading the deal that will be used to refinance existing debt.

IPS is a Compton, Calif.-based manufacturer of adhesive cements, structural adhesives and niche plumbing products primarily for residential, commercial, industrial and international markets.

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