Party City, Sabre dip on repricings; Diamond Foods, Kronos Worldwide, Caraustar tweak deals

By Sara Rosenberg

New York, Feb. 10 - Party City Holdings Inc. saw its term loan weaken in the secondary market on Monday with the launch of a repricing transaction, and Sabre Inc.'s term loan underwent the same reaction with similar news.

Moving to the primary, Diamond Foods Inc. lowered the spread on its term loan, Kronos Worldwide Inc. upsized its term B while tightening the coupon and offer price, and Caraustar Industries Inc. increased the size of its tack-on term loan.

Additionally, American Pacific Corp., Fieldwood Energy LLC, Fibertech Networks, OpenLink International and Nexeo Solutions LLC released talk with launch, and Aspen Dental Management Inc., Dexter Axle Co. and Metaldyne LLC joined this week's calendar.

Party City softens

Party City's term loan dropped in trading on Monday to par bid, par ¾ offered from par 5/8 bid, 101 offered as investors were approached with a repricing proposal, according to a market source.

The company launched with a call at 2 p.m. ET a repricing of the $1.11 billion term loan due July 2019 talked at Libor plus 300 basis points with a 1% Libor floor and an original issue discount of 99¾ to 99 7/8, versus current pricing of Libor plus 325 bps with a 1% Libor floor, the source said.

Also, the proposed repriced loan has step-downs to Libor plus 275 bps at 6.25 times total leverage and to Libor plus 250 bps at 5.5 times total leverage, subject to a qualifying initial public offering, and 101 soft call protection for six months.

Deutsche Bank Securities Inc. is leading the deal, for which commitments are due on Friday.

Party City is a Rockaway, N.J.-based designer, manufacturer and distributor of party goods, including paper and plastic tableware, metallic balloons, accessories, novelties, gifts and stationery.

Sabre heads lower

Sabre's roughly $1.7 billion term loan B due Feb. 19, 2019 dipped to par bid, par ½ offered from par 3/8 bid, par 7/8 offered on news that the company was holding an afternoon call to launch a repricing of the debt that is talked at Libor plus 325 bps with a 1% Libor floor, a par offer price and 101 soft call protection for six months, sources remarked.

Current pricing on the term loan is Libor plus 400 bps with a 1.25% Libor floor.

Commitments for the repricing are due on Thursday, sources added.

Bank of America Merrill Lynch is leading the deal.

Sabre is a Southlake, Texas-based online travel company.

Diamond Foods cuts spread

Over in the primary, Diamond Foods trimmed pricing on its $415 million 41/2-year first-lien covenant-light term loan (B2/B-) to Libor plus 325 bps from talk of Libor plus 375 bps to 400 bps, according to a market source.

As before, the term loan has a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months.

Recommitments were due at 5 p.m. ET on Monday, the source said. The deadline was moved up from an original commitment deadline of Wednesday.

The San Francisco-based packaged food company's $540 million senior secured credit facility also includes a $125 million asset-based revolver due in 2018.

Credit Suisse Securities (USA) LLC, Wells Fargo Securities LLC, Barclays, BMO Capital Markets and SunTrust Robinson Humphrey Inc. are leading the deal that will be used with $230 million of senior unsecured notes to refinance an existing credit facility due Feb. 25, 2015 and senior notes due 2020 held by Oaktree.

Kronos revises loan

Kronos Worldwide lifted its six-year term loan B (B1/B+/BB-) to $350 million from $275 million, reduced the spread to Libor plus 375 bps from talk of Libor plus 425 bps to 450 bps, moved the discount to 99½ from 99 and shortened the hard call protection to 101 for one year from 102 in year one and 101 in year two, a source said.

The term loan continues to have a 1% Libor floor.

Commitments are due on Tuesday, moved up from the original Friday deadline, allocations are expected on Wednesday and closing is targeted for the week of Feb. 17, the source added.

Deutsche Bank Securities Inc. is leading the deal that will be used to refinance existing debt.

Kronos is a Dallas-based producer of titanium dioxide pigments, the primary pigment for providing whiteness, brightness and opacity.

Caraustar upsizes

Caraustar raised its fungible $80 million first-lien tack-on covenant-light term loan (B2/B+) due May 2019 to $100 million from $80 million, and left pricing at Libor plus 625 bps with a 1.25% Libor floor an original issue discount of 99, according to a market source.

Call protection on the loan is 102 through May 1, 2014 and 101 for a year thereafter.

The spread, floor and call protection on the tack-on matches the existing term loan.

Credit Suisse Securities (USA) LLC is the bookrunner on the deal, which will fund a dividend to shareholders, and a joint lead arranger with Goldman Sachs Bank USA and Jefferies Finance LLC.

Commitments were due at 5 p.m. ET on Monday, the source added.

With the tack-on, the company is looking to amend its existing credit facility to allow for the new debt and the one-time dividend, and lenders are being offered a 10 bps amendment fee.

Caraustar is an Austell, Ga.-based manufacturer of recycled paperboard products and packaging.

American Pacific sets guidance

Also on the primary front, American Pacific held its bank meeting on Monday, launching its $330 million five-year term loan B with talk of Libor plus 600 bps to 650 bps with a 1% Libor floor, an original issue discount of 99 and call protection of 102 in year one and 101 in year two, according to a market source.

By comparison, a recent filing with the Securities and Exchange Commission had the term loan expected at Libor plus 650 bps with a 1% Libor floor and call protection of 102 in year one and 101 in year two.

Commitments for the $365 million senior secured credit facility, which also includes a $35 million 41/2-year revolver, are due on Feb. 24.

Jefferies Finance LLC and Credit Suisse Securities (USA) LLC are leading the deal that will be used with up to $124.3 million in equity to fund the company's buyout by H.I.G. Capital LLC for $46.50 per share, or about $392 million. Completion of the transaction is subject to customary conditions.

Net leverage is 4.8 times, the source added.

American Pacific is a Las Vegas-based custom manufacturer of fine chemicals and specialty chemicals.

Fieldwood details surface

Fieldwood Energy released structure and talk on its loan deal that launched with a call during the session, and is asking investors to get their commitments in by Feb. 18, according to sources.

The deal consists of a fungible $200 million add-on first-lien covenant-light term loan due Sept. 25, 2018 talked at Libor plus 287.5 bps with a 1% Libor floor, an offer price of 99¾ to par and 101 soft call protection through March 31, and a fungible $425 million add-on second-lien term loan talked at Libor plus 712.5 bps with a 1.25% Libor floor and an offer price of par ½ to 101, sources remarked.

Spreads, floors and call protection match the company's existing term loans.

Fieldwood lead banks

Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Deutsche Bank Securities Inc., Bank of America Merrill Lynch and Goldman Sachs Bank USA are leading Fieldwood's loans, with Citi the left lead on the first-lien and JPMorgan the left lead on the second-lien.

Proceeds will be used to help fund the $750 million acquisition of SandRidge Energy Inc.'s Gulf of Mexico and Gulf Coast business.

Closing is targeted for the week of Feb. 24, sources added.

Fieldwood is a Houston-based acquirer and developer of conventional oil and gas assets.

Fibertech discloses talk

Fibertech Networks launched its fungible $135 million add-on term loan B and repricing of its existing term loan B with talk of Libor plus 300 bps with a 1% Libor floor and 101 soft call protection for six months, according to a market source.

The add-on is offered at 99½ to 99¾ and the repricing is offered at par, the source said.

Proceeds from the add-on loan and cash on hand will be used to fund a dividend, and the repricing will take the existing term loan down from Libor plus 350 bps with a 1% Libor floor.

Commitments for the total $512 million term loan B are due on Feb. 24.

TD Securities (USA) LLC is leading the deal and M&T Bank is a co-arranger.

Fibertech, a Rochester, N.Y.-based provider of fiber optic bandwidth services, will have pro forma net leverage of 4.1 times all senior.

OpenLink holds call

OpenLink told lenders in the morning that it would hold a call at 4 p.m. ET to launch a $333 million first-lien covenant-light term loan due October 2017 talked at Libor plus 500 bps to 525 bps with a 1.25% Libor floor, a par offer price and 101 soft call protection for six months, a market source said.

Proceeds will be used to reprice an existing term loan from Libor plus 625 bps with a 1.5% Libor floor.

Leads, Credit Suisse Securities (USA) LLC and Wells Fargo Securities LLC, are asking for commitments by Feb. 18, the source added.

OpenLink is a Uniondale, N.Y.-based provider of cross-asset trading, risk management and operations processing software services.

Nexeo comes to market

Nexeo Solutions launched with a call a $170 million incremental covenant-light term loan B-3 (B2) due September 2017 that is talked at Libor plus 350 bps with a 1.5% Libor floor, an original issue discount of 99 to 99½ and 101 soft call protection for six months, according to a market source.

Commitments are due on Feb. 18, the source said.

Bank of America Merrill Lynch is leading the deal that will be used to pay down ABL revolver borrowings and for general corporate purposes.

Nexeo is a Woodlands, Texas-based distributor of chemicals, plastics and composites.

Aspen Dental on deck

Aspen Dental surfaced with plans to hold a bank meeting at 10 a.m. ET in New York on Tuesday to launch a $370 million credit facility (B), according to a market source.

The facility consists of a $40 million five-year revolver and a $330 million six-year term loan, the source said.

GE Capital Markets, Jefferies Finance LLC and UBS Securities LLC are leading the deal that will be used to refinance existing debt.

Aspen Dental is an East Syracuse, N.Y.-based provider of denture and dental care services.

Dexter Axle readies deal

Dexter Axle scheduled a bank meeting for Thursday to launch a $280 million credit facility, according to a market source.

The facility consists of a $25 million revolver, and a $255 million term loan talked with a 1% Libor floor and 101 soft call protection for six months, the source said.

BNP Paribas Securities Corp. is leading the deal that will be used to refinance existing debt, including mezzanine debt.

Net senior and net total leverage is 3.9 times, the source added.

Dexter Axle is an Elkhart, Ind.-based manufacturer of trailer axles and trailer brakes.

Metaldyne joins calendar

Metaldyne set a call for 9:30 a.m. ET on Tuesday for credit facility investors, according to a market source, who said details on what the call is regarding are not yet available.

Bank of America Merrill Lynch is leading the deal.

Metaldyne is a Plymouth, Mich.-based designer and supplier of metal-formed components and assemblies for powertrain applications.

Dunkin' closes

In other news, Dunkin' Brands Group Inc. completed its refinancing of an existing term loan due 2020 priced at Libor plus 275 bps with a 1% Libor floor, a news release said.

For the refinancing, the company got a new $1,379,000,000 term loan B-4 due February 2021 priced at Libor plus 250 bps with a 0.75% Libor floor, and a new $450 million term loan C due 2017 priced at Libor plus 250 bps with no Libor floor. Both tranches were sold at discount of 99¾ and have 101 soft call protection for six months.

During syndication of the new deal, the 2021 term loan was reduced from $1,829,000,000, pricing was set at the wide end of the Libor plus 225 bps to 250 bps talk and the discount firmed at the high side of the 99¾ to par talk. Also, the 2017 loan was added to the capital structure and the spread came at the wide end of the Libor plus 225 bps to 250 bps talk.

J.P. Morgan Securities LLC, Barclays and Goldman Sachs Bank USA are leading the deal (B+).

Dunkin' Brands is a Canton, Mass.-based franchisor of quick-service restaurants serving hot and cold coffee and baked goods as well as hard-serve ice cream.

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