CityCenter, Key Safety break; Styrolution, Onsite, ALM Media, Ferro, Capsugel tweak deals

By Sara Rosenberg

New York, July 25 – CityCenter Holdings LLC and Key Safety Systems Inc. made their way into the secondary market on Friday, and Gemini HDPE LLC’s term loan was a bit stronger from its recent break levels.

Moving to the primary, Styrolution lifted price talk on its U.S. and euro term loan B debt and modified the original issue discount, and Onsite Rental Group downsized its term loan while widening the spread and offer price and extending the call premium.

Also, ALM Media Holdings Inc. raised the spread on its first-lien term loan and adjusted the call protection, Ferro Corp. firmed pricing on its term loan B at the low end of talk, cut the Libor floor and extended the call protection, and Capsugel FinanceCo SCA reverse flexed pricing on its term loan.

Furthermore, Albertson’s Holdings LLC (Safeway Acquisition Merger Sub Inc.), Terex Corp., Visant Corp., U.S. TelePacific Corp., HCP Global Ltd. and Amtek Global Technologies Pte. Ltd. joined the near-term calendar.

CityCenter hits secondary

CityCenter’s $1,546,000,000 covenant-light term loan B due October 2020 began trading on Friday, with levels quoted at par ¼ bid, par ½ offered, according to a trader.

Pricing on the loan is Libor plus 325 basis points with a 1% Libor floor, and it was issued at par. There is 101 soft call protection for one year that was extended during syndication from six months.

Bank of America Merrill Lynch, Barclays, BNP Paribas Securities Corp., SMBC Nikko Capital Markets and UBS AG are leading the deal that will be used to reprice the company’s existing term loan from Libor plus 400 bps with a 1% Libor floor.

CityCenter is the owner and operator of a mixed-use development located on the Las Vegas Strip.

Key Safety frees up

Key Safety Systems’ credit facility also broke for trading, with the $525 million seven-year first-lien term loan quoted at par ¼ bid, par ¾ offered, a source remarked.

Pricing on the term loan is Libor plus 375 bps with a 1% Libor floor and it was sold at an original issue discount of 99½. There is 101 soft call protection for one year.

The company’s $600 million credit facility also includes a $75 million revolver.

UBS AG, Citigroup Global Markets Inc. and Nomura are leading the deal for the Sterling Heights, Mich.-based supplier of automotive safety restraint systems and components.

Key Safety being acquired

Proceeds from Key Safety’s credit facility will be used to fund its buyout by FountainVest Partners from Crestview Partners.

During syndication, the first-lien term loan was upsized from $420 million, pricing was raised from revised talk of Libor plus 350 bps, but firmed at the tight end of initial talk of Libor plus 375 bps to 400 bps, the discount was tightened from 99 and the call protection was extended from six months.

Also, during syndication, the revolver was downsized from $80 million, and a $100 million eight-year second-lien term loan was eliminated.

Pricing on the cancelled second-lien loan was Libor plus 700 bps, after tightening from talk of Libor plus 725 bps to 750 bps. The tranche had a 1% Libor floor, a discount of 99, and call protection of 102 in year one and 101 in year two.

Gemini HDPE heads up

Also in trading, Gemini HDPE’s $420 million seven-year senior secured term loan moved up to par bid, par ¾ offered from break levels of 99¾ bid, par ½ offered on Thursday, according to a trader.

Pricing on the loan is Libor plus 375 bps with a 1% Libor floor, and it was issued at a discount of 99½, after tightening the other day from 99. There is 101 soft call protection for one year.

Barclays and Citigroup Global Markets Inc. are leading the deal that will be used to fund the construction and operation of a world scale, high-density polyethylene plant at the existing Ineos Battleground Manufacturing Complex in La Porte, Texas, to provide debt service during construction, and to pay related fees and expenses.

Gemini HDPE, a bimodal HDPE facility, is a 50/50 joint venture between Ineos Gemini HDPE Holding Co. LLC and Sasol Chemicals North America.

Styrolution changes emerge

Styrolution raised price talk on the U.S. portion of its term loan B to Libor plus 400 bps from Libor plus 350 bps and on the euro portion of its term loan B to Euribor plus 400 bps to 425 bps from Euribor plus 350 bps to 375 bps, and moved the original issue discount on both tranches to 99 from 99½, according to a market source.

The entire €1.6 billion equivalent U.S. and euro seven-year term loan B (B2/B) still has a 1% floor and 101 soft call protection for six months.

Commitments are due on Tuesday, the source added.

Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Barclays, HSBC and J.P. Morgan Securities LLC are the lead banks on the deal, with Citigroup the left lead on the U.S. portion and Credit Suisse the left lead on the euro portion.

Proceeds will be used to help fund Ineos’ acquisition of BASF SE’s 50% share in Styrolution so that it will become a wholly owned, stand-alone company within Ineos, and to refinance existing debt.

Styrolution is a Frankfurt, Germany-based styrenics supplier.

Onsite restructures

Onsite Rental Group reduced the size its seven-year first-lien covenant-light term loan to $320 million from $365 million, lifted the spread to Libor plus 450 bps from talk of Libor plus 400 bps to 425 bps, modified the original issue discount to 98 from 99 and pushed out the 101 soft call protection to one year from six months, a market source remarked.

In addition to the term loan, the company’s credit facility includes a A$40 million cash flow revolver.

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

Credit Suisse Securities (USA) LLC and UBS AG are leading the deal that will be used to refinance existing debt and to fund a dividend.

Onsite Rental is an Australian industrial rental equipment company.

ALM Media revised

ALM Media widened pricing on its $215 million six-year first-lien covenant-light term loan (B2/B+) to Libor plus 450 bps from talk in the Libor plus 425 bps area, extended the 101 soft call protection to one year from six months and increased the amortization to 2.5% from 1%, according to a market source.

As before, the term loan has a 1% Libor floor and an original issue discount of 99.

The company’s $287.5 million credit facility also includes a $22.5 million revolver (B2/B+) and a $50 million seven-year second-lien term loan (Caa2/CCC+) that was pre-sold.

Allocations are expected early in the week of July 28, the source added.

Macquarie Capital (USA) Inc. is leading the deal that will help fund the buyout of the company by Wasserstein & Co. LP from Apax Partners and RBS, which is expected to close in the third quarter.

ALM is a New York-based integrated media company focused on the legal and business communities.

Ferro updates deal

Ferro finalized pricing on its $300 million seven-year term loan B at Libor plus 325 bps, the tight end of the Libor plus 325 bps to 350 bps talk, trimmed the Libor floor to 0.75% from 1% and extended the 101 soft call to one year from six months, according to a market source.

As before, the term loan B has an original issue discount of 99½.

The company’s $500 million credit facility (Ba3/B+) also includes a $200 million five-year revolver.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance existing debt and for general corporate purposes.

Ferro is a Mayfield Heights, Ohio-based supplier of technology-based performance materials, including glass-based coatings, pigments and colors, and polishing materials.

Capsugel trims pricing

Capsugel cut pricing on its €355 million seven-year term loan (B2/B+) to Euribor plus 275 bps from Euribor plus 300 bps, and kept the 1% floor, original issue discount of 99¾ and 101 soft call protection for six months intact, according to a market source.

UBS AG, Citigroup Global Markets Inc., KKR Capital Markets, Barclays, Deutsche Bank Securities Inc. and Mizuho Securities are leading the deal that will be used to redeem 9 7/8% senior notes due 2019 and fund a dividend.

Capsugel is a Morristown, N.J.-based manufacturer of hard capsules and drug-delivery systems.

Albertson’s readies loans

Albertson’s Holdings scheduled a bank meeting for 2 p.m. ET in New York on Tuesday to launch $4,559,000,000 in term loans, according to a market source.

The debt consists of a $1,519,000,000 five-year first-lien covenant-light term loan B-3 and a $3.04 billion seven-year first-lien covenant-light term loan B-4, with both loans talked with 101 soft call protection for six months, the source said.

Commitments are due on Aug. 7.

Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch, Citigroup Global Markets Inc., Morgan Stanley Senior Funding Inc., Barclays, Deutsche Bank Securities Inc., PNC Capital Markets LLC, US Bank and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to fund the acquisition of Safeway Inc., a Pleasanton, Calif.-based food and drug retailer.

Closing is subject to customary conditions, including approval by Safeway shareholders and regulatory approvals.

Albertson’s is a Spokane, Wash.-based supermarket chain.

Terex on deck

Terex plans to hold a conference call at 11 a.m. ET on Monday to launch a $1.1 billion credit facility, according to a market source.

The facility consists of a $600 million revolver and a $500 million seven-year first-lien covenant-light term loan, the source said.

The U.S. portion of the term loan is talked at Libor plus 275 bps and the up to €200 million portion of the term loan is talked at Euribor plus 325 bps, with both tranches having a 0.75% floor, an original issue discount of 99½ to 99¾ and 101 soft call protection for six months, the source continued.

Commitments are due on Aug. 8.

Credit Suisse Securities (USA) LLC, Commerz, Goldman Sachs Bank USA and RBS Securities Inc. are leading the deal that will be used to refinance existing debt.

Terex is a Westport, Conn.-based diversified equipment manufacturer.

Visant refinancing

Visant set a bank meeting for 10 a.m. ET in New York on Tuesday to launch an $875 million credit facility that will be used to refinance existing bank debt, a market source remarked.

The facility consists of a $100 million revolver and a $775 million seven-year first-lien term loan, the source continued.

Commitments are due on Aug. 7.

Credit Suisse Securities (USA) LLC is leading the deal.

Visant is an Armonk, N.Y.-based marketing and publishing services enterprise servicing the school affinity, direct marketing, fragrance, cosmetic and personal care sampling and packaging, and educational and trade publishing segments.

U.S. TelePacific sets meeting

U.S. TelePacific scheduled a bank meeting for 10 a.m. ET in New York on Tuesday to launch a $530 million credit facility, according to a market source.

The facility consists of a $25 million five-year revolver and a $505 million six-year first-lien term loan, the source said.

Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC are leading the deal that will be used to refinance existing debt.

U.S. TelePacific is a Los Angeles-based competitive local exchange carrier.

HCP plans deal

HCP Global will hold a bank meeting at 10:30 a.m. ET in New York on Tuesday to launch a $380 million senior secured credit facility, a market source said.

Citigroup Global Markets Inc. is leading the deal.

HCP Global is a Shanghai-based packaging company for the cosmetics industry.

Amtek coming soon

Amtek set a bank meeting for Monday to launch a €305 million senior secured credit facility, according to a market source.

The facility consists of a €30 million five-year revolver and a €275 million five-year term loan B, the source said.

Barclays and Jefferies are leading the deal that will be used to refinance existing debt, for general corporate purposes and capital expenditures, and for a distribution to shareholders.

Total gross debt is 3.7 times and total net debt is 2.8 times, the source added.

Amtek is a Germany-based automotive engineering company.

Paradigm allocates

In other news, Paradigm Holdco Sarl allocated its $40 million add-on to its first-lien covenant-light term loan that is priced at Libor plus 350 bps with a 1.25% Libor floor and was sold at an original issue discount of 99½, according to a market source.

Pricing on the add-on matches the existing first-lien term loan. Originally, the company was looking to reprice its existing first-lien term loan and get the add-on at Libor plus 350 bps with a 1% Libor floor, but the repricing was cancelled.

The company also pulled plans to reprice its second-lien term loan, the source said. Talk on the repricing was Libor plus 700 bps to 725 bps with a 1% Libor floor, compared to current pricing of Libor plus 925 bps with a 1.25% Libor floor.

Proceeds from the add-on will be used to pay down some second-lien term loan debt.

UBS AG, RBC Capital Markets and Goldman Sachs Bank USA are leading the deal for the U.K.-based provider of mission-critical software solutions for the oil and gas exploration and production industry.

Dave & Buster’s closes

Dave & Buster’s Inc. completed its $580 million credit facility (B2/B) that includes a $50 million five-year revolver and a $530 million six-year covenant-light term loan B, a news release said.

Pricing on the B loan is Libor plus 350 bps with a step-down to Libor plus 325 bps when net leverage is 2.75 times. There is a 1% Libor floor and 101 soft call protection for six months, and it was sold at an original issue discount of 99¾.

During syndication, pricing on the term loan was reduced from talk of Libor plus 375 bps to 400 bps, the step-down was added, the discount changed from 99½ and the MFN sunset provision was eliminated.

Jefferies Finance LLC and Goldman Sachs Bank USA lead the deal that was used to refinance existing debt.

Dave & Buster’s is a Dallas-based owner and operator of dining and entertainment venues.

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