American Beacon, E.W. Scripps free to trade; Regal Cinemas term loan gains on refinancing

By Sara Rosenberg

New York, March 17 – Deals from American Beacon Advisors Inc. and E.W. Scripps Co. made their way into the secondary market on Tuesday with levels on both companies’ term loans quoted above their original issue discounts, and Regal Cinemas Corp.’s term loan was a bit stronger with refinancing news.

Meanwhile, in the primary market, Alvogen and Townsquare Media Inc. released price talk with launch, and Penn Product Terminals LLC, Post Holdings Inc., Boyd Corp. and Royal Adhesives & Sealants joined the new deal calendar.

American Beacon breaks

American Beacon Advisors’ credit facility freed up for trading on Tuesday with the $230 million first-lien term loan seen at par 3/8 bid, par 7/8 offered, a trader remarked.

Pricing on the first-lien term loan is Libor plus 450 basis points with a 1% Libor floor and it was sold at an original issue discount of 99½. The debt has 101 soft call protection for one year.

The company’s $350 million credit facility also includes a $40 million revolver and an $80 million second-lien term loan.

The second-lien term loan is priced at Libor plus 875 bps with a 1% Libor floor and was issued at a discount of 98, and has call protection of 102 in year one and 101 in year two.

During syndication, the first-lien term loan was upsized from $220 million, pricing was cut from Libor plus 475 bps and the discount was changed from 99, and the second-lien term loan was downsized from $90 million.

American Beacon being acquired

Proceeds from American Beacon’s credit facility will be used to help fund its buyout by Kelso & Co. and Estancia Capital Management from TPG Capital and Pharos Capital Group LLC.

RBC Capital Markets LLC and Barclays are leading the debt.

Total leverage is 5.5 times and equity is 50% of the capitalization.

Closing is expected in the second quarter, subject to customary conditions, including approvals of the board of trustees and shareholders of the American Beacon family of mutual funds and consents from other American Beacon clients.

American Beacon Advisors is a Fort Worth-based provider of investment advisory services to institutional and retail markets.

E.W. Scripps tops OID

E.W. Scripps’ fungible $200 million add-on term loan B also began trading, with levels opening at par bid, par ½ offered and then moving to par 1/8 bid, par ½ offered, according to a market source.

Pricing on the add-on term loan is Libor plus 275 bps with a 0.75% Libor floor and it was sold at an original issue discount of 99¾, after tightening the other day from 99.

SunTrust Robinson Humphrey Inc. is leading the deal that will be used to facilitate the movement of broadcast assets into E.W. Scripps and newspaper assets into Journal Communications.

In connection with the add-on, the company is repricing its existing roughly $200 million term loan B to Libor plus 275 bps with a 0.75% Libor floor from Libor plus 250 bps with a 0.75% Libor floor.

E.W. Scripps is a Cincinnati-based media company.

Regal Cinemas rises

Also in trading, Regal Cinemas’ term loan moved up to 99 7/8 bid, par 1/8 offered from 99¾ bid, par offered after it emerged that the company is refinancing the debt with a new $966 million senior secured covenant-light term loan (Ba1/BB) due in 2022, according to a trader.

The new loan, which launched with a 2 p.m. ET lender call, is talked at Libor plus 325 bps with a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, a market source said.

Commitments are due at 5 p.m. ET on March 25.

Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch, Barclays, Morgan Stanley Senior Funding Inc. and Wells Fargo Securities LLC are leading the deal.

Regal Cinemas is a subsidiary of Regal Entertainment Group, a Knoxville, Tenn.-based motion picture exhibitor.

Alvogen reveals guidance

Moving to the primary, Alvogen held its bank meeting on Tuesday morning, and in connection with the event, talk on its $675 million seven-year senior secured term loan surfaced at Libor plus 500 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, a market source remarked.

Commitments are due on March 27, the source added.

Jefferies Finance LLC, Goldman Sachs Bank USA and SunTrust Robinson Humphrey Inc. are leading the loan that will be used to refinance existing debt and for general corporate purposes.

Alvogen is a generic pharmaceutical company.

Townsquare sets talk

Townsquare Media came out with talk of Libor plus 375 bps with a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months on its $255 million seven-year term loan B that launched with a morning bank meeting, according to a market source.

The company’s $305 million senior secured credit facility (Ba2/BB-) also includes a $50 million five-year revolver.

Commitments are due on March 30, the source added.

RBC Capital Markets LLC, Bank of America Merrill Lynch, SunTrust Robinson Humphrey Inc., Macquarie Capital (USA) Inc. and Jefferies Finance LLC are leading the deal that will be used with new senior notes to refinance the company’s existing senior secured credit facility and $410.9 million of 9% senior notes due 2019 issued by Townsquare Radio LLC and Townsquare Radio Inc.

Townsquare Media is a Greenwich, Conn.-based diversified media and entertainment and digital marketing services company.

Penn Product on deck

Penn Product Terminals set a bank meeting for 10:30 a.m. ET in New York on Thursday to launch a $700 million first-lien credit facility, a market source said.

The facility consists of a $125 million revolver and a $575 million term loan B, the source added.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to help fund the buyout of the company by ArcLight Capital Partners.

Penn Product, previously known as Petroleum Products Corp., is a refined product terminal storage business in Pennsylvania.

Post timing emerges

Post Holdings surfaced with plans to hold a lender call at 10 a.m. ET on Wednesday to launch its previously announced $700 million incremental secured term loan B due June 2, 2021, according to a market source.

The fungible incremental term loan is talked at Libor plus 300 bps with a 1% Libor floor, in line with the existing term loan B, and is being offered at an original issue discount of 99, the source said.

Also, the incremental loan has 101 soft call protection for six months.

Commitments are due on April 1, the source added.

Credit Suisse Securities (USA) LLC and Barclays are leading the deal that will be used with common stock proceeds and cash on hand to fund the acquisition of MOM Brands Co. for $1.05 billion in cash and the issuance of about 2.45 million shares of Post common stock to the current owners of MOM Brands.

Closing is expected by the third quarter, subject to customary conditions.

Post is a St. Louis-based consumer packaged goods holding company. MOM Brands is a Lakeville, Minn.-based cereal company.

Boyd readies deal

Boyd is anticipated to hold a bank meeting sometime in the second quarter to launch a $557 million credit facility that will be used to help fund its buyout by Genstar Capital, according to a market source.

The facility consists of a $50 million five-year revolver, a $365 million seven-year first-lien term loan with a 1% Libor floor and a $142 million eight-year second-lien term loan with a 1% Libor floor, the source said.

UBS AG, RBC Capital Markets and BMO Capital Markets are leading the deal.

Boyd is a Modesto, Calif.-based manufacturer and supplier of custom fabricated sealing and energy management components for OEMs.

Royal Adhesives coming soon

Royal Adhesives & Sealants scheduled a lender call for 10:30 a.m. ET on Wednesday to launch a fungible $35 million add-on senior secured term loan B, according to a market source.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to help fund the acquisition of Chemical Innovations Ltd., a U.K.-based manufacturer of high-performance bonding agents for industrial applications.

Royal Adhesives is a South Bend, Ind.-based manufacturer and marketer of high performance adhesives, sealants, encapsulants and specialty polymers.

Lions Gate closes

In other news, Lions Gate Entertainment Corp. completed its $375 million second-lien term loan that is priced at a fixed-rate of 5%, according to an 8-K filed with the Securities and Exchange Commission.

The loan was issued at par and is non-callable for one year, then at 102 in year two and 101 in year three.

During syndication, the second-lien term loan was upsized from $250 million.

J.P. Morgan Securities LLC led the deal that was used to refinance an existing second-lien term loan, and, as a result of the upsizing, to pay down revolver borrowings.

Lions Gate is a Santa Monica, Calif.-based entertainment company in motion picture production and distribution, television programming and syndication, home entertainment, family entertainment, digital distribution and new channel platforms.

Surgical Care wraps

Surgical Care Affiliates Inc., a Deerfield, Ill.-based operator of surgical facilities, closed on its $700 million senior secured credit facility (B1/B+), the company revealed in an 8-K filing.

The facility consists of a $250 million revolver and a $450 million term loan.

Pricing on the term loan is Libor plus 325 bps with a 1% Libor floor, and it was issued at a discount of 99¾. There is 101 soft call protection for six months.

During syndication, the term loan was upsized from $350 million as the company’s senior unsecured notes were downsized to $250 million from $350 million, pricing was reduced from Libor plus 375 bps and the discount firmed at the tight end of revised talk of 99½ to 99¾ and tighter than initial talk of 99.

Proceeds were used to refinance an existing credit facility and are available for general corporate purposes, including acquisitions and other development activities.

J.P. Morgan Securities LLC, Goldman Sachs Bank USA, Citigroup Global Markets Inc., Barclays, Morgan Stanley Senior Funding Inc., Bank of America Merrill Lynch and SunTrust Robinson Humphrey Inc. led the deal.

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