Cenveo, AutoTrader, CCC Information, Kenan break; Syniverse moves deadline; Transtar may flex

By Sara Rosenberg

New York, Dec. 14 - Cenveo Inc. upsized its credit facility while finalizing pricing at the low end of talk, and then proceeded to free up for trading, and AutoTrader.com, CCC Information Services Inc. and Kenan Advantage Group broke as well.

In more loan happenings, Syniverse Technologies accelerated the commitment deadline on its well-oversubscribed credit facility, and Transtar Industries Inc. is anticipated to tighten pricing on its first-lien term loan as a result of strong demand.

Also, Language Line Services added a step-down in pricing to its first-lien term loan, Race Point Power sweetened call protection on its deal, and BNY ConvergEx Group LLC reduced spreads on its first- and second-lien tranches.

Furthermore, Advantage Sales & Marketing LLC reworked tranching and pricing, CNO Financial Group Inc. upsized its loan, Summit Materials LLC flexed higher and Amneal Pharmaceuticals LLC firmed pricing at the tight end of guidance.

Cenveo tweaks deal

Cenveo upsized its term loan B to $380 million from $375 million because the demand was there, and the extra funds will be used to help pay certain fees, according to a market source.

Additionally, the company firmed pricing on the B loan at Libor plus 475 basis points, the tight end of the Libor plus 475 bps to 500 bps talk, while leaving the 1.5% Libor floor and original issue discount of 99 intact, the source said.

As before, the loan includes 101 soft call protection for one year.

The company's now $530 million credit facility (Ba3/BB-) also provides for a $150 million revolver.

Cenveo frees up

After revising the size and setting pricing, Cenveo's credit facility hit the secondary market, with the term loan B quoted at par ¼ bid, par ¾ offered on the open and then it moved up to par 3/8 bid, par 7/8 offered, a source remarked.

Bank of America and Macquarie are the lead banks on the deal.

Proceeds from the credit facility will be used to refinance existing debt.

Cenveo is a Stamford, Conn.-based manager and distributor of print and related products and services.

AutoTrader starts trading

AutoTrader.com's credit facility also broke on Tuesday, with the $500 million six-year term loan B quoted at par ½ bid, according to a market source.

Pricing on the term loan B is Libor plus 325 bps with a 1.5% Libor floor, and it was sold at an original issue discount of 991/2.

The company's $950 million credit facility (Ba3/BB+) also includes a $200 million five-year revolver and a $250 million five-year term loan A, with these tranches priced at Libor plus 300 bps.

During syndication, the B loan was downsized from $600 million, the revolver was upsized from $150 million and the A loan was upsized from $200 million. Pricing on the B loan was lowered from talk of Libor plus 375 bps to 400 bps and the discount was tightened from 99, and pricing on the revolver and term A was cut from Libor plus 350 bps.

AutoTrader lead banks

Wells Fargo, JPMorgan, Goldman Sachs, SunTrust, Fifth Third Bank and UBS are the lead banks on AutoTrader.com's credit facility.

Proceeds will be used to fund the acquisition of Kelley Blue Book and its sister companies, CDMdata and CDM Dealer Services.

Closing on the transaction is expected by the end of the year.

AutoTrader.com is an Atlanta-based automotive marketplace and consumer information website. Kelley Blue Book is an Irvine, Calif.-based a provider of new and used vehicle pricing information.

CCC quoted atop par

Yet another deal to make its way into the secondary market on Tuesday was CCC Information Services, with its $350 million five-year term loan B quoted at par 5/8 bid, 101 offered, before settling in at par 3/8 bid, par ¾ offered, according to one trader.

A second source, meanwhile, had the B loan quoted at par ¼ bid, par ¾ offered by late afternoon.

Pricing on the term loan B is Libor plus 400 bps, after flexing from Libor plus 450 bps during syndication. There's a 1.5% Libor floor and it was sold at an original issue discount of 99.

The company's $400 million credit facility (B1/B+) also includes a $50 million 41/2-year revolver.

JPMorgan and Barclays are the lead banks on the deal that will be used to refinance existing debt.

CCC is a Chicago-based provider of advanced software, workflow tools and enabling technologies to the automotive claims and collision repair industries.

Kenan Advantage breaks

Kenan Advantage Group's credit facility allocated and started trading as well, with the $375 million term loan B quoted at par ¼ bid, according to a market source.

Pricing on the term loan B, as well as on a $125 million delayed-draw term loan, is Libor plus 400 bps with a 1.5% Libor floor, and the tranches were sold at an original issue discount of 99 for new money.

The $600 million credit facility (Ba3/BB-) also includes a $100 million revolver.

KeyBanc Capital Markets is the lead bank on the deal for the North Canton, Ohio-based logistics and liquid bulk transportation services provider.

Kenan amending/restating

Through this new deal, Kenan is basically amending and restating its existing credit facility to get more term loan B debt, reset the delayed-draw term loan and increase the revolver. Maturities are being left unchanged.

The existing $450 million credit facility was obtained this past summer and is comprised of a $250 million term loan B and a $125 million delayed-draw term loan, both priced at Libor plus 450 bps with a 1.75% Libor floor and sold at a discount of 98, and a $75 million revolver priced at Libor plus 400 bps with a 1.75% Libor floor.

Since closing on the original facility, some of the delayed-draw term loan has been drawn, although the exact amount is not being disclosed. The delayed-draw loan may only be used for acquisition financing.

Syniverse accelerates deadline

Back over in the primary, Syniverse Technologies moved the commitment deadline on its $1.175 billion senior secured credit facility (B1/BB-) to noon ET on Wednesday from 5 p.m. ET on Thursday as the "deal is well-oversubscribed," according to a market source.

The facility consists of a $150 million revolver and a $1.025 billion term loan, with both tranches talked at Libor plus 425 bps with a 1.5% Libor floor.

The revolver is being offered at an original issue discount of 981/2, while the term loan is being offered at a discount of 99.

Barclays Capital, Credit Suisse and Goldman Sachs are the lead banks on the deal.

Syniverse being bought

Proceeds from Syniverse's credit facility, along with $475 million of senior notes and up to $1.245 billion of equity, will be used to fund the buyout of the company by the Carlyle Group for $31 per share. The transaction is valued at $2.6 billion.

Closing is expected in the first quarter of 2011, subject to customary conditions, including stockholder approval, which will be sought at a special meeting on Jan. 12, and various regulatory organizations. It is not subject to financing.

On Nov. 30, the company announced that it was granted early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

Syniverse is a Tampa, Fla.-based provider of technology and business services for the telecommunications industry.

Transtar mulls changes

Transtar Industries' $240 million six-year first-lien term loan (Ba3/BB-) was strongly oversubscribed ahead of Tuesday's commitment deadline, creating the expectation that pricing will tighten from the current talk of Libor plus 475 bps to 500 bps with a 1.75% Libor floor and an original issue discount of 981/2, a market source told Prospect News.

The company's $135 million seven-year second-lien term loan (B3/B-) also filled out by the time books were closed. Price talk on this tranche is Libor plus 850 bps with a 1.75% Libor floor and an original issue discount of 98 to 981/2.

The $425 million credit facility also includes a $50 million five-year revolver (Ba3/BB-) talked at Libor plus 475 bps to 500 bps with a 1.75% Libor floor and a discount of 981/2.

RBC is the lead bank on the deal that will be used to help fund the buyout of the Cleveland-based transmission parts provider by Friedman Fleischer & Lowe.

Language Line adds step

Language Line Services added a pricing step-down to its $525 million first-lien term loan (Ba3/B+), under which the spread can drop to Libor plus 425 bps at less than 4.5 times leverage, according to a market source.

Initial pricing on the first-lien loan was left unchanged at Libor plus 450 bps, as was the 1.75% Libor floor, the original issue discount of 99 and the soft call protection of 102 in year one and 101 in year two.

The company's $575 million first-lien credit facility also includes a $50 million revolver (Ba3/B+).

Proceeds will be used by the Monterey, Calif.-based provider of telephone interpreting and language services to refinance existing debt, to redeem preferred stock and to fund a dividend.

Language Line second-lien

Other funds for Language Line's dividend recapitalization will come from a $175 million second-lien term loan (B3/B-) that is talked at Libor plus 900 bps with a 1.75% Libor floor and an original issue discount of 98. There is call protection of 103 in year one, 102 in year two and 101 in year three.

Bank of America, Credit Suisse and Morgan Stanley are the lead banks on the deal, with Bank of America the left lead on the first-lien debt and Credit Suisse the left lead on the second-lien.

Allocations on the facility are expected to go out as early as Wednesday.

In October, the company had come to market with a $250 million second-lien term loan with the same price talk. In order to complete that deal, the company needed to amend its existing facility to allow for the debt and revise covenants. However, first-lien lenders did not approve the amendment and therefore, that second-lien loan never got done.

Race Point ups call protection

Race Point Power increased call protection on its $275 million seven-year term loan (BB) to 102 in year one and 101 in year two, from just 101 in year one, according to a market source. The call protection is against refinancings.

Pricing on the loan was left unchanged at Libor plus 600 bps with a 1.75% Libor floor and an original issue discount of 98.

Earlier in syndication, the term loan was reduced from $370 million, resulting in net leverage moving down to 4.3 times versus 5.7 times under the original structure.

Allocations are expected to go out at the end of the week, the source added.

Race Point funding recap

Proceeds from Race Point Power's term loan will be used to refinance existing debt and to fund a dividend payment. As a result of the size reduction, however, less existing debt will be taken out, and the dividend was trimmed to $177 million from $205 million.

Also, the downsizing to the loan accounted for the removal of acquisition funding from the use of proceeds. This is because of delays with respect to the acquisition.

Barclays and Credit Suisse are the lead banks on the deal.

Race Point Power is an enterprise that holds interests in a number of power plants and is owned by ArcLight Capital Partners LLC.

BNY cuts pricing

BNY ConvergEx lowered pricing on its $610 million six-year first-lien term loan B (B1/B+) to Libor plus 375 bps from Libor plus 400 bps and on its $140 million seven-year second-lien term loan (B2/B-) to Libor plus 700 bps from Libor plus 750 bps, according to a market source.

The first-lien term loan B now includes a step-down to Libor plus 350 bps at 3.75 times leverage and 101 soft call protection for one year, the source said.

As before, the first-lien term loan B has a 1.5% Libor floor and is being sold at an original issue discount of 99, and the second-lien term loan has a 1.75% Libor floor and is being sold at a discount of 98.

Also unchanged, is the call protection on the second-lien loan of 103 in year one, 102 in year two and 101 in year three.

BNY shuts books

After announcing the changes to its credit facility, BNY ConvergEx told lenders that recommitments were due on Tuesday and allocations are likely to go out on Wednesday, the source remarked.

The company's $850 million credit facility also includes a $100 million five-year revolver (B1/B+).

Bank of America, Goldman Sachs, Citigroup, JPMorgan and Morgan Stanley are the lead banks on the deal, with Bank of America the left lead on the revolver and first-lien B loan and Goldman the left lead on the second-lien loan.

Proceeds will be used to refinance existing debt.

BNY ConvergEx is a New York-based provider of agency brokerage and investment technology services.

Advantage Sales revises deal

Advantage Sales & Marketing upsized its first-lien term loan, downsized its second-lien term and lowered pricing on the tranches, according to a market source.

The first-lien term loan (B+) is now sized at $875 million, up from $800 million, pricing is Libor plus 375 bps, down from talk of Libor plus 400 bps to 425 bps, a step-down was added to the Libor plus 350 bps when first-lien leverage is less than 3.5 times, the original issue discount was tightened to 99½ from 99 and there is now 101 soft call protection for one year.

The second-lien term loan (B-) is now sized at $350 million, down from $425 million, pricing was reduced to Libor plus 775 bps from Libor plus 800 bps and call protection was revised to 102 in year one and 101 in year two, from 103 in year one, 102 in year two and 101 in year three, the source said.

As before, both term loans include a 1.5% Libor floor and the second-lien term loan is being sold at a discount of 981/2.

Advantage Sales buyout

Proceeds from Advantage Sales & Marketing will be used to help fund the acquisition of the company by Apax Partners from J.W. Childs Associates LP and BAML Capital Partners.

The transaction, which is subject to customary approvals, is expected to close prior to the end of the year.

Credit Suisse, JPMorgan and UBS are the lead banks on the $1.325 billion credit facility, which also includes a $100 million revolver (B+).

As a result of the changes to tranche sizes, first-lien leverage at close will be 4.5 times, up from 4.1 times under the original structure.

Recommitments are due from lenders by noon ET on Wednesday.

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

CNO ups size

CNO Financial Group increased its senior secured term loan to $375 million from $325 million and decreased its senior secured notes to $275 million from $300 million, according to a market source.

Pricing on the term loan is Libor plus 600 bps with a 1.5% Libor floor and an original issue discount of 983/4. Earlier in syndication, the spread was reduced from the Libor plus 625 bps area, the floor was cut from 1.75% and the discount firmed from talk of 98 to 99.

Proceeds from the term loan that is due in September 2016, along with the notes and cash on hand, will be used to refinance an existing $652.1 million senior secured term loan that matures in October 2013. The extra proceeds from the term loan upsizing will be used for general corporate purposes, the source said.

Morgan Stanley and Barclays are the lead banks on the deal.

CNO is a Carmel, Ind.-based holding company for insurance companies.

Summit Materials flexes

Summit Materials lifted pricing on its $425 million five-year senior secured term loan to Libor plus 500 bps from talk of Libor plus 450 bps to 475 bps, while leaving the 1.5% Libor floor and original issue discount of 99 intact, according to a market source.

The company is also looking to get a $25 million incremental revolver.

Citigroup, UBS and Bank of America are the lead banks on the deal (B2/BB-) that will be used to refinance existing debt, fund acquisitions, including the recently completed purchase of RK Hall Construction Ltd, a Paris, Texas-based aggregates, asphalt production, paving and construction business, and for general corporate purposes.

Summit Materials is a Washington D.C.-based company that was formed in early 2009 to acquire and grow companies in the aggregates and heavy-side building materials industry.

Amneal sets spread

Amneal Pharmaceuticals finalized pricing on its $205 million five-year credit facility at Libor plus 450 bps, the tight end of the Libor plus 450 bps to 475 bps talk, while leaving the 1.75% Libor floor and fees of 1.5% unchanged, according to a market source.

The facility, which allocated on Tuesday, consists of a $50 million revolver and a $155 million term loan.

GE Capital is the lead arranger on the deal that will be used for a refinancing/recapitalization.

Amneal Pharmaceuticals is a Hauppauge, N.Y.-based generic pharmaceuticals company.

FilmYard readies allocations

FilmYard Holdings LLC's $408 million of first- and second-lien term loans are expected to allocate on Wednesday or Thursday now that pricing has been finalized, according to a market source.

The $325 million 51/2-year first-lien term loan (Ba2) priced in line with talk at Libor plus 600 bps with a 1.75% Libor floor and an original issue discount of 98. There is 101 soft call protection for one year.

And, the $83 million six-year second-lien term loan (B2) priced at Libor plus 1,100 bps, after flexing up from Libor plus 1,000 bps, the source said. As initially planned, the tranche has a 2% Libor floor and was sold at a discount of 98. It is non-callable for one year, then at 104 in year two, 102 in year three and 101 in year four.

Barclays and Jefferies are the lead banks on the New York-based film company's deal that will be used to help fund the purchase of Miramax Films by Ron Tutor, Tom Barrack and Colony Capital LLC from Walt Disney Co.

Earthbound nets orders

In other news, Earthbound Farm's $250 million credit facility (B1/B+) is "nicely over the top already" and the "book continues to build," a market source remarked, adding that it's still up in the air as to where pricing will shake out.

The facility consists of a $25 million five-year revolver and a $225 million six-year term loan B.

Price talk on the B loan is Libor plus 500 bps to 525 bps with a 1.75% Libor floor and an original issue discount of 98 to 981/2.

RBC is the lead bank on the deal that will be used to refinance existing debt and to fund a dividend payment.

Earthbound Farm is a San Juan Bautista, Calif.-based organic food company.

Bresnan closes

Cablevision Systems Corp. completed its acquisition of Bresnan Communications is a transaction valued at $1.365 billion, according to a news release.

To help fund the purchase, Bresnan got a new $840 million credit facility (Ba3/BB+), consisting of a $75 million revolver and a $765 million term loan that is priced at Libor plus 300 bps with a 1.5% Libor floor and was sold at a discount of 99. The term loan includes 101 soft call protection for one year.

During syndication, pricing on the term loan was reduced from Libor plus 350 bps, the discount tightened from 98½ and the call protection was added.

Citigroup, Bank of America, Barclays, Credit Suisse and UBS acted as the lead banks on the deal.

Bresnan is a Purchase, N.Y.-based broadband telecommunications company. Cablevision is a Bethpage, N.Y.-based telecommunications, media and entertainment company.

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