F+W Media breaks; Technicolor, American Casino, Sapphire Power, AlixPartners update deals

By Sara Rosenberg

New York, July 1 - F+W Media Inc.'s credit facility made its way into the secondary market on Monday, with levels on the term loan seen above its original issue discount price.

Switching to the primary, Technicolor (Tech Finance & Co SCA) reworked its deal, upsizing the U.S. term loan B, downsizing the euro term loan B, widening spread talk and original issue discounts and sweetening call premiums.

Additionally, American Casino & Entertainment Properties LLC increased pricing and shortened maturities on its term loans and sweetened the discount and call protection on its second-lien debt, Sapphire Power Holdings firmed the spread on its term loan at the low end of revised talk, and AlixPartners LLP finalized the original issue discount on its B-2 tranche at the wide end of guidance.

F+W frees up

F+W Media's credit facility began trading on Monday, with the $125 million term loan B quoted at 97 bid, 98 offered, according to a market source.

Pricing on the term loan B is Libor plus 650 basis points with a 1.25% Libor floor, and it was sold at a discount of 97. The debt is non-callable for one year, then at 102 in year two and 101 in year three.

The company's $135 million credit facility also includes a $10 million revolver priced at Libor plus 650 bps with a 1.25% Libor floor.

Recently, pricing on the term B and revolver was flexed up from talk of Libor plus 500 bps to 525 bps, the discount on the B loan widened from 99 the call protection on the tranche was revised from 101 soft call for one year.

Macquarie Capital is leading the deal that is being used to refinance existing debt.

Net first-lien leverage is 3.7 times.

F+W Media is a community-focused, content creator and marketer of products and services for enthusiasts with main offices in Blue Ash, Ohio, New York and Broomfield, Colo.

Help/Systems holds steady

Also in trading, Help/Systems LLC's $228 million six-year first-lien term loan B was seen at 99¼ bid, 99¾ offered after breaking at that same level on Friday afternoon, according to a market source.

Pricing on the first-lien term loan is Libor plus 450 bps with a 1% Libor floor and it was sold at a discount of 99. There is 101 soft call protection for one year.

The company is also getting a $66 million seven-year second-lien term loan priced at Libor plus 850 bps with a 1% Libor floor and sold at 981/2. This tranche has call protection of 103 in year one, 102 in year two and 101 in year three.

The $334 million credit facility provides for a $40 million five-year revolver as well.

GE Capital Markets led the deal.

Help/Systems dividend recap

Proceeds from Help/Systems' credit facility are being used to refinance existing debt and to fund a dividend.

During syndication, the first-lien term B was downsized from $240 million, pricing was raised from Libor plus 350 bps, the discount was widened from 99½ and the soft call was added. In addition, the second-lien loan was trimmed from $80 million, the spread was lifted from Libor plus 750 bps and the discount was changed from 99.

Also during syndication, tenor on all tranches was shortened by one year and the MFN sunset was removed from the credit agreement.

As a result of the term loan downsizings, the dividend was reduced by half a turn of leverage, so resulting net leverage is 4.25 times through the first-lien and 5.5 times total, the source added.

Help/Systems is an Eden Prairie, Minn.-based provider of automated operations and business intelligence software for IBM Power Systems servers.

Technicolor changes emerge

Over in the primary, Technicolor lifted its U.S. seven-year term loan B to about $835 million from $645 million and dropped its euro seven-year term loan B to roughly €175 million from €250 million and increased talk to Libor/Euribor plus 575 bps to 600 bps from talk of Libor/Euribor plus 475 bps to 500 bps, according to a market source.

In addition, the discounts moved to 98 from 99, the call protection was revised to a hard call of 102 in year one and 101 in year two from soft call protection of 102 for one year then 101 for an additional six months, and a leverage-based maintenance covenant was added, the source said.

The loans, for which recommitments are due on July 8, still have a 1.25% floor.

J.P. Morgan Securities LLC, Goldman Sachs Bank USA and Morgan Stanley Senior Funding Inc. are leading the deal (B3/B) that will be used with $330 million of senior notes to refinance existing senior secured debt.

Technicolor, a technology company focused on the media and entertainment sector, expects to close on the refinancing this month.

American Casino revised

American Casino raised pricing on its $215 million first-lien term loan (B1/BB) to Libor plus 475 bps from Libor plus 425 bps and shortened the maturity to six years from seven years, while keeping the 1.25% Libor floor, original issue discount of 99 and 101 soft call protection for one year intact, according to a market source.

Meanwhile, pricing on the $120 million second-lien term loan (Caa2/B-) was lifted to Libor plus 1,000 bps from talk of Libor plus 825 bps to 850 bps, the discount was modified to 97 from 98, the maturity was shortened to 6½ years from 7½ years, and the debt is now non-callable for two years, then at 103 in year three and 101 in year four as opposed to being non-callable for one year, then at 102 in year two and 101 in year three, the source said. The debt still has a 1.25% Libor floor.

The company's $350 million credit facility also provides for a $15 million revolver (B1/BB).

Recommitments are due at noon ET on Tuesday, the source added.

Goldman Sachs Bank USA and Deutsche Bank Securities Inc. are leading the deal that will fund a tender offer that expires on Friday for the company's $337.5 million 11% senior secured notes due 2014.

American Casino is a Las Vegas-based owner and operator of gaming and entertainment properties.

Sapphire sets spread

Sapphire Power firmed pricing on its $250 million five-year term loan at Libor plus 500 bps, the low end of the revised Libor plus 500 bps to 525 bps talk but wide of original talk of Libor plus 400 bps, according to a market source.

The loan has a 1% Libor floor, an original issue discount of 99 and call protection of 102 in year one and 101 in year two.

The company's $280 million credit facility (B1/B+) also includes a $30 million revolver that is pari passu with the term loan.

When the term loan spread talk was revised last week, the company also downsized the tranche from $350 million, changed the call protection from 101 soft call for one year, shortened the maturity from seven years, added net leverage and interest coverage ratios to the originally covenant-light deal, and revised the revolver from super-priority status.

Sapphire readies allocations

With final pricing in place, Sapphire Power's credit facility is expected to allocate on Tuesday, the source remarked.

Goldman Sachs Bank USA and Deutsche Bank Securities Inc. are leading the deal that will be used to refinance existing debt, to fund a debt service reserve account and fund a dividend payment, the size of which was reduced due to the term loan downsizing.

Sapphire Power is an Austin, Texas-based power company consisting of seven, mid-merit, natural gas-fired, combined cycle power generation units and one natural gas-fired peaking unit.

AlixPartners firms OID

AlixPartners set the original issue discount on its $680 million seven-year term loan B-2 at 99, the high end of the 99 to 99½ talk, a market source said. This tranche is priced at Libor plus 400 bps with a 1% Libor floor and includes 101 soft call protection for six months.

The company is also getting $95 million four-year first-lien term loan B-1 that is priced at Libor plus 325 bps with no Libor floor and an original issue discount of 991/2, which is basically a roll of its existing $95 million term loan B-1. Existing lenders are being offered 50 bps to roll over their positions.

In addition, the company's $1 billion provides for a $225 million second-lien term loan that is priced at Libor plus 800 bps with a 1% Libor floor and a discount of 99, and has call protection of 102 in year one and 101 in year two.

Earlier, the B-2 loan was downsized to $655 million from $750 million when the B-1 was added to the capital structure and then upsized when the second-lien term loan was reduced from $250 million. Also, the term B-2 saw its spread finalize at the high end of the Libor plus 375 bps to 400 bps talk and the second-lien loan saw pricing come at the wide side of the Libor plus 775 bps to 800 bps guidance.

AlixPartners lead banks

Deutsche Bank Securities Inc., Bank of America Merrill Lynch, Goldman Sachs Bank USA, Jefferies Finance LLC and UBS Securities LLC are leading AlixPartners' new credit facility.

Proceeds will be used for a recapitalization.

First-lien leverage is 4.5 times and total leverage is 5.7 times.

AlixPartners is a New York-based performance improvement, corporate turnaround and financial advisory services firm.

AMF Bowling closes

In other news, AMF Bowling and Strike Holdings LLC (Bowlmor) completed their merger, according to a news release, for which AMF Bowling Centers Inc. (Bowlmor AMF) got a new $265 million credit facility (B2/B).

The facility consists of a $245 million five-year term loan and a $20 million five-year revolver.

Pricing on the term loan is Libor plus 750 bps with a 1.25% Libor floor, and it was sold at a discount of 97. The debt is non-callable for one year, then at 102 in year two and 101 in year three.

During syndication, the term loan was upsized from $230 million, pricing was flexed from Libor plus 550 bps, the discount was moved from 99, the call protection was changed from 101 soft call for one year, and the maturity was shortened from 5¾ years. Also, the revolver was downsized from $30 million.

Credit Suisse Securities (USA) LLC is leading the deal that was used to repay a debtor-in-possession financing facility and existing bank debt and for general corporate purposes.

AMF is a Richmond, Va.-based bowling center operator.

National Financial wraps

Madison Dearborn Partners LLC closed on its buyout of National Financial Partners Corp. for $25.35 in cash per share, a news release said.

For the transaction, National Financial got a new $888 million senior secured credit facility (B1/B+) consisting of a $135 million revolver and a $753 million term loan.

Pricing on the term loan is Libor plus 425 bps with a 1% Libor floor and it was sold at a discount of 99. There is 101 soft call protection for one year.

In June, the term loan was upsized from $716 million as the company's bond deal was downsized to $30 million from $337 million, pricing was lifted from talk of Libor plus 350 bps to 375 bps and the soft call was extended from six months.

Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc., UBS Securities LLC, Credit Suisse Securities (USA) LLC, MCS Capital and RBC Capital Markets led the debt for the New York-based provider of benefits, insurance and wealth management services.

KCG formation completed

The merger of Chicago-based Getco Holding Co. LLC and Jersey City, N.J.-based Knight Capital Group Inc. has closed, a news released said, forming KCG Holdings Inc.

For the merger and to refinance existing debt, KCG got a new $535 million 41/2-year term loan B (Ba3/BB-) priced at Libor plus 450 bps with a 1.25% Libor floor, and it was sold at 99. There is 101 soft call protection for one year.

During syndication, pricing on the Jersey City, N.J.-based financial services firm's loan was reduced from talk of Libor plus 475 bps to 500 bps and the discount was revised from 981/2. Additionally, a $20 million four-year revolver was eliminated from the new credit facility.

Jefferies Finance LLC and Goldman Sachs & Co. led the deal.

Gross leverage is 1.8 times through the first-lien and 2.9 times total.

© 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.