Golden Living, TriZetto break; Sensus, Mood Media restructure deals; Citco firms pricing

By Sara Rosenberg

New York, April 28 - Golden Living and TriZetto Group Inc. both freed up for trading during Thursday's market hours, and iStar Financial Inc. saw some movement in its term loans after quarterly numbers were announced.

Over in the primary, Sensus USA Inc. made some changes to its credit facility, including moving funds between its term loans, while lowering pricing and tightening original issue discounts on the tranches.

Also reworking its deal was Mood Media Corp., as it too shifted term loan funds around and modified pricing, and on the topic of updates, Citco Group of Cos. set pricing on its loan at the high end of talk.

Additionally, KAR Auction Services Inc., Alliance Data Systems Corp., Legendary Pictures, BCBG Max Azria Group and Green Valley Ranch Resorts Spa Casinos released price talk as their deals were presented to lenders during market hours.

Furthermore, Raycom Media Inc. and Springleaf Financial Funding Co. emerged with plans to bring refinancing transactions to market and began circulating some price talk ahead of the upcoming launches.

Golden Living starts trading

Golden Living's credit facility made its way into the secondary market on Thursday, with the $1.5 billion term loan quoted at 99¼ bid, 99¾ offered on the break and throughout the rest of the session, according to one trader. A second trader, meanwhile, was quoting it at 99½ bid, 99 7/8.

Pricing on the term loan is Libor plus 375 basis points, after firming at the wide end of the Libor plus 350 bps to 375 bps talk, with a 1.25% Libor floor, and it was sold at an original issue discount of 99.

The company's $1.575 billion credit facility (B1/B+) also includes a $75 million revolver.

Citigroup Global Markets Inc. and RBC Capital Markets LLC are the lead banks on the deal that will be used to refinance existing bank borrowings and CMBS debt.

Golden Living is a Fort Smith, Ark.-based provider of post-acute health and wellness services.

TriZetto frees up

TriZetto's credit facility began trading too, with the $650 million seven-year covenant-light term loan quoted on the open by one trader at 99¾ bid, par 1/8 offered and by a second trader at par bid, par ½ offered. By late day, a third trader was seeing it at par 3/8 bid, par ¾ offered.

Pricing on the loan is Libor plus 350 bps, after firming at the high end of the Libor plus 325 bps to 350 bps talk, with a 1.25% Libor floor, and it was sold at an original issue discount of 991/2. There is 101 soft call protection for one year that was added during syndication.

The company's $750 million facility (B1/B) also includes a $100 million five-year revolver priced at Libor plus 325 bps with a 62.5 bps undrawn fee and was sold with upfront fees of 50 bps to 75 bps.

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

TriZetto is a Greenwood Village, Colo.-based health care information technology company to the health care payer industry.

iStar moves around

iStar Financial's term loan A-1 was better and its term loan A-2 was wider after the release of first quarter results that showed a year-over-year improvement in income but a decrease in adjusted EBITDA, according to a trader.

The term loan A-1 was quoted at 99 3/8 bid, 99 5/8 offered, up from 99¼ bid, 99½ offered, and the term loan A-2 was quoted at par ¼ bid, par ¾ offered, compared to Wednesday's levels of par 3/8 bid, par 5/8 offered, the trader said.

For the quarter, net income was $67.4 million, or $0.71 per diluted common share, compared to a loss of $25.4 million, or $0.27 per diluted common share, in the prior year, and adjusted EBITDA was $94.9 million, compared to $173.2 million in the 2010 first quarter.

iStar is a New York-based finance and investment company focused on the commercial real estate industry.

Sensus reworks deal

Moving to the primary, Sensus USA made revisions in the morning to its first- and second-lien term loan sizes and pricing. It is asking for recommitments by noon ET on Friday, according to a market source.

Specifically, the six-year first-lien term loan was upsized to $425 million from $375 million, pricing was cut to Libor plus 350 bps from Libor plus 375 bps, a step-down to Libor plus 325 bps was added if total net leverage is less than 4 times, the discount price was changed to 99½ from 99 and there is now 101 soft call protection for one year, the source said. The 1.25% Libor floor was left unchanged.

As for the seven-year second-lien term loan, that was reduced to $150 million from $200 million, pricing was trimmed to Libor plus 725 bps from Libor plus 750 bps and the original issue discount moved to 99 from 981/2, the source remarked. The tranche still includes a 1.25% Libor floor and call protection of 103 in year one, 102 in year two and 101 in year three.

Sensus getting revolver

Sensus' $675 million senior secured credit facility, which is being led by Credit Suisse Securities (USA) LLC and Goldman Sachs & Co., continues to provide for a $100 million five-year revolver.

Prior to the changes, the revolver and first-lien term loan were rated Ba3/B+, and the second-lien term loan was rated B3/B-.

Proceeds from the credit facility, along with cash on hand, will be used to fund a tender offer that expires on May 9 for the company's $275 million of 8 5/8% senior subordinated notes due 2013, refinance existing bank debt, pay a $50 million dividend and put some working capital cash on the balance sheet.

Sensus is a Raleigh, N.C.-based technology company providing energy and water utility customers with conservation products and services.

Mood Media changes terms

Mood Media came out with modifications as well, reducing its seven-year first-lien term loan to $355 million from $390 million and increasing its 71/2-year second-lien term loan to $100 million from $65 million, according to a market source.

Pricing on the first-lien term loan and on a $20 million revolver was flexed up to Libor plus 550 bps from talk of Libor plus 475 bps to 500 bps, with the 1.5% Libor floor and original issue discount of 99 left unchanged, the source remarked. Also, call protection on the term loan was sweetened to 103 in year one, 102 in year two and 101 in year three from just 101 soft call protection for one year.

As for the second-lien term loan, pricing was trimmed to Libor plus 875 bps from Libor plus 900 bps, with the 1.5% Libor floor, original issue discount of 99 and call protection of 103 in year one, 102 in year two and 101 in year three left intact.

Mood Media buying Muzak

Proceeds from Mood Media's credit facility will be used to help fund the acquisition of Muzak Holdings LLC for $345 million, including net debt to be repaid on closing, and to refinance existing debt.

The acquisition is expected to close during the second quarter.

Credit Suisse Securities (USA) LLC is the lead bank on the credit facility.

Prior to the changes, the revolver and first-lien term loan were rated B1/B and the second-lien term loan was rated Caa1/CCC+.

Mood Media is a Toronto-based in-store media specialist. Muzak is a Fort Mill, S.C.-based provider of sensory branding services.

Citco finalizes spread

Citco established pricing on its $490 million seven-year term loan at Libor plus 425 bps with a 1.25% Libor floor and an original issue discount of 991/2, according to a market source.

Most recently, the spread had been talked at Libor plus 400 bps to 425 bps and, prior to that, it was talked at Libor plus 350 bps to 375 bps. There have been no changes to the Libor floor or discount price during syndication.

UBS Securities LLC and Deutsche Bank Securities Inc. are the lead banks on the deal and are hoping to give out allocations sometime next week.

Proceeds will be used to refinance existing debt.

Citco is a provider of financial services to hedge funds, private equity and real estate firms, institutional banks, companies and high net worth individuals.

KAR Auction guidance

KAR Auction Services held a call with lenders on Thursday to launch its credit facility, and in connection with the event, guys were told that the $1.5 billion senior secured term loan B is being talked at Libor plus 375 bps to 400 bps with a 1.25% Libor floor and an original issue discount of 99 to 991/2, according to a market source.

J.P. Morgan Securities LLC, Goldman Sachs & Co., Barclays Capital Inc. and Deutsche Bank Securities Inc. are the lead banks on the $1.75 billion credit facility, which also provides for a $250 million revolver.

Proceeds will be used to refinance the existing senior secured revolver and term loan B borrowings, 10% senior subordinated notes due 2015 and some 8¾% senior notes due 2014.

KAR Auction is the Carmel, Ind.-based holding company for Adesa, Inc., a provider of wholesale used vehicle auctions.

Alliance Data pricing emerges

Alliance Data launched its $1.5 billion five-year all pro rata credit facility on Thursday with price talk of Libor plus 225 bps with no Libor floor, according to a market source.

The facility consists of a $750 million term loan A and a $750 million revolver.

SunTrust Robinson Humphrey Inc. is the lead arranger on the deal and is asking for commitments in about two weeks.

Proceeds will be used by the Dallas-based provider of loyalty and marketing services to refinance existing debt.

Legendary Pictures sets talk

Continuing on the topic of pricing, Legendary Pictures' $200 million six-year term loan B was presented to lenders on Thursday afternoon with talk of Libor plus 450 bps with a 1.5% Libor floor and an original issue discount of 99, according to a market source.

J.P. Morgan Securities LLC is the lead bank on the deal $700 million credit facility, which also includes a $500 million revolver.

Proceeds will be used by the Burbank, Calif.-based film production company to refinance existing debt.

BCBG reveals guidance

BCBG Max Azria disclosed that it is talking its $230 million term loan at Libor plus 875 bps with no Libor floor, an original issue discount of 96 and call protection of 102 in year one and 101 in year two as a Thursday afternoon bank meeting took place, according to a market source.

Goldman Sachs & Co., Bank of America Merrill Lynch, UBS Securities LLC and Guggenheim are leading the deal that will be used to refinance existing debt.

BCBG is a Vernon, Calif.-based designer, retailer and distributor of women's apparel and accessories.

Green Valley launches

Green Valley Ranch also held a bank meeting on Thursday, at which time lenders were told that the $215 million five-year first-lien term loan is being talked at Libor plus 475 bps with a 1.5% Libor floor and an original issue discount of 99, and the $85 million six-year second-lien term loan is being talked at Libor plus 850 bps with a 1.5% floor and a discount of 98, according to a market source.

The first-lien term loan has 101 soft call protection for one year, and the second-lien loan is non-callable for two years, then at 101 in year three, the source said.

Jefferies & Co. Inc. and Goldman Sachs & Co. Inc. are the joint bookrunners on the $310 million credit facility, which also includes a $10 million revolver, and are asking for commitments by May 12.

Proceeds will be used to help fund the acquisition of Green Valley Ranch, a Henderson, Nev.-based lodging and entertainment company, by Station Casinos LLC.

Leverage through the first-lien is 4.6 times and through the entire facility is 6.4 times.

Raycom plans refi

In more primary happenings, Raycom Media is bringing a $700 million refinancing credit facility to market, with a bank meeting set for Wednesday, and in preparation for the launch, some price talk was disclosed, according to a market source.

The $200 million five-year revolver and $300 million five-year term loan A are being talked at Libor plus 275 bps, while the $200 million six-year term loan B is being talked at Libor plus 325 bps with a 1.25% Libor floor, the source remarked, adding the original issue discount talk on the B loan will come out at the launch.

Wells Fargo Securities LLC and GE Capital Markets are the lead banks on the deal.

Raycom is a Montgomery, Ala.-based broadcaster and owner and operator of television stations.

Springleaf floats talk

Springleaf Financial is talking its proposed $3 billion six-year senior secured term loan at Libor plus 425 bps with a 1.25% Libor floor and an original issue discount of 99½ ahead of the Friday call that will kick off syndication on the deal, according to a market source. There is hard call protection of 102 in year one and 101 in year two.

Bank of America Merrill Lynch is the lead arranger on the deal that will be used to refinance an existing term loan that was obtained last year at pricing of Libor plus 550 bps with a 1.75% Libor floor and sold at an original issue discount of 981/2.

Commitments are due at 5 p.m. ET on Wednesday.

Springleaf Financial is an Evansville, Ind.-based provider of loans, retail financing and other credit related products.

Deffenbaugh readies close

Deffenbaugh Industries Inc. is expected to close on its $156 million term loan either late this week of very early next week, according to a market source.

Pricing on the term loan is Libor plus 500 bps with a 1.5% Libor floor and a par offer price, and it includes 101 soft call protection for one year.

Proceeds are being used to refinance an existing $136 million that is priced at Libor plus 500 bps with a 2.25% Libor floor.

Credit Suisse Securities (USA) LLC is the lead bank on the deal for the Kansas City, Kan.-based integrated waste services company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.