American Tire, Hyperion, ViaWest free up; Planet Fitness, National Financial modify deals

By Sara Rosenberg

New York, March 26 – American Tire Distributors Inc. lowered the spread on its term loan and then began trading on Thursday above its original issue discount, and Hyperion Insurance Group Ltd. and ViaWest hit the secondary as well.

In more happenings, Planet Fitness Holdings LLC tightened the original issue discount on its add-on term loan, and National Financial Partners Corp. upsized its add-on term loan and finalized the offer price at the tight end of guidance.

Additionally, Men’s Wearhouse Inc. and Advantage Sales & Marketing LLC launched their new deals, and Boyd Corp. revealed timing on the bank meeting for its credit facility.

American Tire flexes, breaks

American Tire trimmed pricing on its $720 million 6½-year covenant-light term loan (B2/B-) to Libor plus 425 basis points from talk of Libor plus 450 bps to 475 bps and kept the 1% Libor floor, original issue discount of 99½ and 101 hard call protection for one year intact, according to a market source.

Recommitments were due at noon ET on Thursday, and with final terms in place, the debt made its way into the secondary market on Thursday with levels seen at 99 7/8 bid, par 3/8 offered, a trader remarked.

Bank of America Merrill Lynch is leading the deal that will be used to refinance existing term loan borrowings.

American Tire is a Huntersville, N.C.-based replacement tire distributor.

Hyperion frees up

Hyperion Insurance Group’s credit facility broke as well, with the $750 million seven-year term loan B quoted at par ¼ bid, par ¾ offered, a trader said.

Pricing on the term loan B is Libor plus 450 bps with a step-down to Libor plus 425 bps at 3.25 times net secured leverage and a 1% Libor floor. The debt was issued at 99½ and has 101 soft call protection for one year.

During syndication, the B loan was upsized from $725 million, the spread firmed at the tight end of the Libor plus 450 bps to 475 bps talk, the step-down was added, the discount was tightened from 99, the call protection was extended from six months and the MFN sunset was removed.

The company’s senior secured credit facility (B1) also includes an £85 million five-year revolver priced at Libor plus 425 bps with step-downs and no Libor floor. This tranche was issued at 99.

Morgan Stanley Senior Funding Inc., HSBC Securities (USA) Inc. and RBC Capital Markets LLC are the bookrunners on the deal and joint lead arrangers with Lloyds Securities Inc.

Hyperion funding acquisition

Proceeds from Hyperion’s credit facility will be used with equity to fund the acquisition of RK Harrison Holdings Ltd. and repay existing Hyperion debt. The additional proceeds from the recent term loan upsizing will be used for deferred equity consideration.

The combined group will be 70% owned by its employees, with Hyperion’s external shareholder, General Atlantic, remaining in place with its share of 30%.

Closing is expected in April.

Hyperion is a London-based insurance intermediary group. RK is a London-based insurance and reinsurance broker.

ViaWest tops OID

ViaWest’s credit facility began trading too, with the $395 million seven-year term loan B quoted at par ¼ bid, par ¾ offered, a trader remarked.

Pricing on the B loan is Libor plus 350 bps with a 1% Libor floor, and it was sold at an original issue discount of 99. The debt has 101 soft call protection for six months.

The company’s $480 million senior secured credit facility also provides for an $85 million five-year revolver.

During syndication, the term loan was upsized from $375 million while the spread was cut from talk of Libor plus 375 bps to 400 bps, and the revolver was upsized from $75 million.

TD Securities (USA) LLC and RBC Capital Markets are the leading the deal that will be used to refinance existing debt.

ViaWest is a Greenwood Village, Colo.-based IT Infrastructure company.

Planet Fitness tweaks OID

Back in the primary, Planet Fitness moved the original issue discount on its fungible $120 million add-on covenant-light term loan B due 2021 to 99 7/8 from 99½, with pricing remaining at Libor plus 375 bps with a 1% Libor floor, a source remarked.

The add-on term loan, as well as the company’s existing term loan B, are still getting 101 soft call protection for six months.

Recommitments were due at 3 p.m. ET on Thursday, the source added.

J.P. Morgan Securities LLC, Guggenheim Securities Holdings LLC, Jefferies Finance LLC, BMO Capital Markets Corp. and U.S. Bank are leading the deal that will be used by the operator of health clubs to fund a dividend and for general corporate purposes.

National Financial revised

National Financial Partners lifted its fungible add-on covenant-light term loan B due July 2020 to $165 million from $125 million and set the original issue discount at 99, the tight end of the 98¾ to 99 talk, according to a market source.

As before, pricing on the add-on is Libor plus 350 bps with a 1% Libor floor, in line with the existing term loan B due July 2020, and all of the term loan debt will get 101 soft call protection for six months.

Bank of America Merrill Lynch and Jefferies Finance LLC are leading the deal that will be used to pay down revolver borrowings and for general corporate purposes.

National Financial is a New York-based provider of insurance brokerage and wealth management services to middle-market companies, financial advisers and high-net-worth individuals.

Men’s Wearhouse launches

Also on the new deal front, Men’s Wearhouse held a call at noon ET, launching a $300 million fixed-rate term loan due June 18, 2021 with talk of 5% to 5¼%, an original issue discount of 99¾ and call protection of non-callable for one year, then at 102 in year two and 101 in year three, according to a market source.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance some of the term loan debt that was obtained in 2014 for the acquisition of JoS. A Bank Clothiers Inc.

Men’s Wearhouse is a Houston-based specialty retailer of men’s apparel.

Advantage Sales reveals OID

Advantage Sales & Marketing disclosed original issue discount talk of 99 to 99½ on its fungible $150 million add-on term loan (B) that launched with a call on Thursday, a source remarked.

Pricing on the add-on term loan is Libor plus 325 bps with a 1% Libor floor, in line with the existing term loan, and all of the term loan debt will get 101 soft call protection for six months.

Commitments are due on April 2, the source added.

Jefferies Finance LLC is leading the deal that will be used for acquisition financing.

Advantage Sales & Marketing is an Irvine, Calif.-based sales and marketing agency.

Boyd timing emerges

Boyd scheduled a bank meeting for 10:30 a.m. ET in New York on Tuesday to launch its proposed $557 million credit facility that was previously labeled as second quarter business, according to a market source.

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

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

Proceeds will be used to help fund the buyout of the company by Genstar Capital.

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

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