LightSquared levels widen; Kronos, SunCoke price talk surfaces; NPC lifts revolver size

By Sara Rosenberg

New York, Dec. 12 - LightSquared saw levels on its term loan widen out on Monday after a strong drop on Friday as a result of what the company is alleging to be an illegal leak of incomplete government testing data.

Over in the primary, Kronos Inc. released pricing details on its incremental first-lien term loan B and its credit facility amendment and extension offer in connection with its launch during the session, and SunCoke Energy Inc. approached lenders with an incremental loan as well.

Also, NPC International Inc. increased its revolving credit facility once again and officially reverse flexed pricing on the tranche, and Mosaid Technologies Inc. is getting ready to allocate its fully subscribed credit facility.

LightSquared moves around

LightSquared's term loan was bid lower but offered higher in trading on Monday following a large slide on Friday that was sparked by news reports claiming that GPS devices would be disrupted by LightSquared's operation, according to a trader.

The term loan was quoted at 45 bid, 50 offered, versus 45¼ bid, 47¾ offered late Friday, the trader said. On Friday morning, before the news leaked, the loan was quoted at 54 bid, 56 offered, he added.

LightSquared issued a statement on Friday saying that these news reports were false and based on the illegal leak of incomplete government data.

"We are confident that a complete review of all the government data by respected industry experts will demonstrate that the overwhelming majority of devices tested exceeded the established standards and support LightSquared's network," the company added.

LightSquared is a Reston, Va.-based wholesale-only 4G-LTE network integrated with satellite coverage.

Kronos talk emerges

Moving to the primary, Kronos held a conference call on Monday morning to kick off syndication on its $370 million incremental first-lien term loan B and a concurrent amendment and extension proposal, and with the launch, price talk on the transactions emerged, according to a market source.

The incremental term loan B due December 2018 is being talked at Libor plus 475 basis points with a 1.25% Libor floor and an original issue discount of 98 and includes 101 soft call protection for one year, the source said.

Proceeds from the term loan will be used to fund a distribution to shareholders, and as part of its amendment, the company is seeking permission for the new debt as well as for the dividend.

J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC, Wells Fargo Securities LLC, Jefferies & Co. and Deutsche Bank Securities Inc. are the bookrunners on the deal.

Kronos amend/extend

As for the extension part of the transaction, Kronos is looking to push out the maturity on its existing debt by three years, so the $60 million revolver would go to June 2016, the $635 million first-lien term loan B would go to June 2017 and the $355 million second-lien term loan would go to June 2018.

Pricing on the extended revolver would be Libor plus 450 bps, up from Libor plus 200 bps. Pricing on the extended term loan B would be Libor plus 450 bps, up from Libor plus 225 bps based on pro forma total leverage of 5.6 times, and pricing on the second-lien loan would be Libor plus 825 bps, up from Libor plus 575 bps, the source remarked.

Commitments and consents are due at 5 p.m. ET on Dec. 20.

Kronos, a Chelmsford, Mass.-based provider of workforce management software, is offering existing lenders a 50 bps amendment fee.

SunCoke comes to market

Another deal to launch during the day was SunCoke Energy's proposed $30 million incremental term loan B due July 2018, which is being offered at an original issue discount of 97½ to 98, according to a market source.

Pricing on the incremental loan matches existing term loan pricing at Libor plus 300 bps with a 1% Libor floor. The existing loan, however, was sold at 99½ when it was done back in July.

J.P. Morgan Securities LLC is the left lead bank on the deal that is being marketed to existing lenders only.

Commitments are due at 3 p.m. ET on Tuesday.

SunCoke, a Lisle, Ill.-based producer of metallurgical coke, will use proceeds from the new debt for general corporate purposes.

NPC ups revolver

NPC International's revolving credit facility saw yet another upsizing, this time to a final amount of $100 million, according to a market source. Most recently, the revolver was outlined as $90 million and at launch it was $85 million. Prior to launch, it was described as $75 million.

Additionally, pricing on the revolver moved to Libor plus 525 bps from Libor plus 550 bps, the source said. As before, there is no Libor floor.

The company's $475 million senior credit facility (Ba3/B) also includes a $375 million term loan priced at Libor plus 525 bps with a 1.5% Libor floor. The loan was sold at an original issue of 98 and has 101 soft call protection for one year. Earlier, this tranche saw pricing flex from Libor plus 550 bps and the discount tighten from the 97 area.

The term loan freed up for trading this past Friday at 98¾ bid, 99¾ offered, and then it moved up to 99¼ bid, par ¼ offered by late day, where it was still being quoted on Monday.

NPC lead banks

Barclays Capital Inc. and Goldman Sachs & Co. are the lead banks on NPC's credit facility that will be used to help fund the purchase of the company by Olympus Partners and to refinance all existing debt.

Other funds for the transaction will come from $190 million of 10½% senior notes due 2020 and about $240 million of equity. The bonds replaced an originally planned roughly $190 million mezzanine financing.

Closing on the buyout is expected by Dec. 28, subject to regulatory approvals and customary conditions.

NPC, an Overland Park, Kan.-based Pizza Hut franchisee, will have secured leverage of 3.3 times, net total leverage of 5.0 times and net lease adjusted leverage of 5.9 times.

Mosaid allocating soon

Mosaid Technologies expects to allocate its $155 million senior secured credit facility (Ba3/BB-) later this week now that the deal is fully syndicated and in its documentation phase, according to a market source.

The facility, which consists of a $5 million revolver and a $150 million term loan, is priced at Libor plus 700 bps with a 1.5% Libor floor and an original issue discount of 971/2, the source said.

RBC Capital Markets LLC is the lead bank on the deal that will be used to help fund the buyout of the company by Sterling Partners for C$46 per share, for a total value of roughly C$590 million.

Shareholder approval for the transaction will be sought after at a special meeting on Dec. 19.

Mosaid is an Ottawa, Ont.-based intellectual property 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.