Sequa, Ancestry.com, Cumulus Media, Dematic, Avaya, Greektown, Grede free up; TCW flexes

By Sara Rosenberg

New York, Dec. 18 - Sequa Corp.'s credit facility made its way into the secondary market on Tuesday, with the term loan B quoted above its original issue discount price, and Ancestry.com, Cumulus Media Holdings Inc., Dematic, Avaya Inc., Greektown Superholdings Inc. and Grede Holdings LLC began trading as well.

On the primary front, TCW Group lowered the coupon on its term loan, added a pricing step-down and firmed the original issue discount at the tight end of talk as the deal has been met with strong demand from investors.

Sequa breaks

Sequa's credit facility began trading on Thursday afternoon, with the $1.3 billion covenant-light term loan B quoted at 99¾ bid, par ¾ offered on the open and then it moved to par ¼ bid, 101¼ offered, according to a market source.

Pricing on the B loan is Libor plus 400 basis points with a 1.25% Libor floor, and it was sold at a discount of 991/2. The debt includes 101 soft call protection for one year.

Last week, pricing on the loan firmed at the tight end of the Libor plus 400 bps to 425 bps talk and the original issue discount tightened from 99.

The company's $1.5 billion 41/2-year senior secured credit facility (B1/B) also provides for a $200 million revolver.

Barclays, Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., HSBC Securities (USA) Inc., J.P. Morgan Securities LLC, Goldman Sachs & Co., Morgan Stanley Senior Funding Inc. and RBC Capital Markets LLC are leading the deal.

Sequa repaying debt

Proceeds from Sequa's credit facility will be used to replace the existing capital structure, and with the refinancing, the company is tendering for its $500 million of 11¾% senior notes due 2015 and its roughly $258 million of 13½% senior PIK notes due 2015.

The tender offers are scheduled to expire on Dec. 26.

Senior secured leverage is 4 times and total leverage is 5.1 times.

Sequa is a Tampa, Fla.-based diversified industrial company that operates in the aerospace and metal coatings industries.

Ancestry.com starts trading

Ancestry.com hit the secondary too, with the $670 million six-year covenant-light term loan quoted at 96½ bid, a trader said.

Pricing on the loan is Libor plus 575 bps with a 1.25% Libor floor, and it was sold at an original issue discount of 96. There is 101 soft call protection for one year.

During syndication, pricing came at the high end of revised talk of Libor plus 550 bps to 575 bps and wide of initial talk of Libor plus 475 bps to 500 bps, the discount was revised from recent talk of 98 to 99 and initial talk of 99, call protection was added and the maturity was shortened from seven years.

Also included in the company's $720 million senior secured credit facility (B1/B+) is a $50 million five-year revolver.

Barclays, Morgan Stanley Senior Funding Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and RBC Capital Markets LLC are the lead banks on the deal.

Ancestry.com being acquired

Proceeds from Ancestry.com's credit facility, along with $300 million of senior unsecured notes and equity, will fund its buyout by Permira Funds for $32.00 per share in cash in a transaction valued at $1.6 billion.

In order for the transaction to close, a judge is requiring the company to provide two additional areas of disclosure.

However, the anticipation is that the disclosures will not get in the way of the Dec. 27 shareholder vote and that the deal is still on track, a source previously told Prospect News.

Closing is expected in early 2013, subject to stockholder approval and other customary conditions.

Leverage is 3.9 times on a senior secured basis and 5.6 times total.

Ancestry.com is a Provo, Utah-based online family history resource.

Cumulus seen above par

Cumulus Media's $1.325 billion term loan B due September 2018 (Ba2/BB-) hit the secondary as well, with the debt quoted at par ¼ bid, par ¾ offered, according to a trader.

Pricing is Libor plus 350 bps with a 1% Libor floor, and the loan was sold at par, after firming at the tight end of the 99¾ to par talk. There is 101 soft call protection for one year.

J.P. Morgan Securities LLC is leading the deal that is being used to refinance an existing term loan.

Cumulus is an Atlanta-based radio broadcaster.

Dematic tops OID

Dematic's credit facility also freed up, with the $540 million term loan B seen at par bid, par ½ offered, according to a source. The term loan B includes a $50 million deposit letter-of credit facility.

Pricing on the B loan is Libor plus 400 bps with a 1.25% Libor floor, and it was sold at an original issue discount of 99. There is 101 soft call protection for one year.

During syndication, the spread on the term loan B was reduced from Libor plus 475 bps.

The company's $615 million credit facility (B1) also provides for a $75 million revolver.

Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC and Barclays are leading the deal that will fund the buyout of the company by AEA Investors and Teachers' Private Capital from Triton.

Leverage through the loan is 3.5 times.

Closing is expected by January, subject to regulatory approval.

Dematic is an engineering company that provides intelligent warehouse logistics and materials handling solutions.

Avaya B-5 trades

Antoher deal to begin trading was Avaya's new $563 million term loan B-5 due March 2018, with levels quoted at 97¾ bid, 98¾ offered, according to a trader.

Pricing on the B-5 loan is Libor plus 675 bps with a 1.25% Libor floor.

The B-5 is made up from commitments that were extended under the term loan B-1 due 2014 that is priced at Libor plus 275 bps with no floor and from the term loan B-4 due Oct. 26, 2017 that is priced at Libor plus 600 bps with a 1.25% Libor floor.

With the extension, and including a roughly $290 million paydown from notes proceeds, the size of the term loan B-1 was reduced to around $586 million from about $1.3 billion and the size of the term loan B-4 was reduced to around $1.3 million from roughly $135 million.

Citigroup Global Markets Inc. is leading the transaction.

Avaya is a Basking Ridge, N.J.-based provider of business collaboration and communications services.

Greektown frees up

Greektown Superholdings' $325 million six-year first-lien term B (B2/BB-) broke during the session, with levels seen at 99¾ bid, par ¼ offered, a trader remarked.

Pricing on the first-lien loan is Libor plus 500 bps, after firming recently at the high side of the Libor plus 475 bps to 500 bps talk. There is a 1.25% Libor floor and 101 soft call protection for one year, and it was sold at a discount of 99.

The $455 million facility also includes a $15 million three-year revolver (B2/BB-), a $15 million five-year term A (Ba3/BB-) and a $100 million seven-year second-lien term loan (Caa2/CCC+).

Pricing on the second-lien loan is Libor plus 950 basis points, after flexing during syndication from talk of Libor plus 875 bps to 900 bps. This tranche has a 1.25% Libor floor and call protection of 103 in year one, 102 in year two and 101 in year three and was sold at an original issue discount of 98.

Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Jefferies & Co. are leading the refinancing deal.

Greektown operates through its subsidiaries, including the Greektown Casino-Hotel, which is located in Detroit.

Grede hits secondary

Grede Holdings changed the original issue discount on its $100 million add-on term loan to 99½ from 99 and then freed up at par bid, par ½ offered, according to market sources. The add-on trades with the existing term loan.

Pricing on the add-on loan is Libor plus 550 bps with a 1.5% Libor floor, which is in line with existing term loan pricing.

GE Capital Markets is leading the deal.

Grede, a Southfield, Mich.-based iron casting supplier, will use the incremental debt to fund a dividend.

TCW reworks pricing

In more loan happenings, TCW Group cut pricing on its $355 million seven-year term loan B (Ba1/BB+) to Libor plus 300 bps from Libor plus 325 bps and added a step-down to Libor plus 275 bps when total leverage is less than 2.25 times and ratings are Ba1/BB+, according to a market source. The step-down can only occur after the delivery of the company's Dec. 31, 2013 financials.

Also, the original issue discount was set at 991/2, the tight end of the 99 to 99½ talk, and 50 bps MFN was added for any incremental term loans, the source said.

As before, the term loan has a 1% Libor floor and 101 soft call protection for one year.

The company's $405 million credit facility also includes a $50 million five-year revolver.

Recommitments are due by noon ET on Wednesday.

TCW funding buyout

Proceeds from TCW's credit facility and equity will be used to fund its purchase by the Carlyle Group from Societe Generale, to refinance existing debt and to fund working capital.

J.P. Morgan Securities LLC, Bank of America Merrill Lynch and Morgan Stanley Senior Funding Inc. are the lead banks on the deal.

Closing is expected in the first quarter of 2013.

As a result of the transaction, TCW management and employees will increase their ownership in the firm to about 40% on a fully diluted basis.

TCW is a Los Angeles-based asset management firm with around $130 billion under management.

Graphic closes

Graphic Packaging International Inc. completed its $300 million add-on term loan A (Ba2/BBB), according to an 8-K filed with the Securities and Exchange Commission on Tuesday.

Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Citigroup Global Markets Inc., SunTrust Robinson Humphrey Inc. and Goldman Sachs & Co. led the deal.

Proceeds were used to repurchase up to $300 million of the company's common stock.

Graphic Packaging is a Marietta, Ga.-based provider of packaging services for food, beverage and other consumer products companies.

Riverbed wraps

Riverbed Technology Inc. closed on its acquisition of Opnet Technologies Inc., a Bethesda, Md.-based provider of services for application and network performance management, for $36.55 in cash and 0.2774 of a share of Riverbed common stock per Opnet share, according to a news release.

For the transaction, Riverbed got a new $575 million seven-year senior secured term loan B (Ba3/BBB-) priced at Libor plus 300 bps with a 1% Libor floor, and sold at an original issue discount of 991/2. There is 101 soft call protection for one.

During syndication, the loan was upsized from $500 million, pricing was reduced from talk of Libor plus 325 bps to 350 bps and call protection was added.

Morgan Stanley Senior Funding Inc. and Goldman Sachs & Co. led the San Francisco-based IT performance company's deal.

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