Wencor, Verdesian, Liberty Cablevision free to trade; Ascend Learning accelerates deadline

By Sara Rosenberg

New York, June 25 – Wencor Group LLC’s (Jazz Acquisition Inc.) credit facility freed up for trading on Wednesday with both the first- and second-lien term loans quoted above their original issue discounts, and Verdesian Life Sciences LLC and Liberty Cablevision of Puerto Rico LLC broke as well.

Over in the primary, Ascend Learning moved up the commitment deadline on its add-on term loan, and Red Lobster Management LLC, Hilex Poly LLC and Blackbrush Oil & Gas (BBOG Borrower LP) released price talk with launch.

Wencor starts trading

Wencor Group’s credit facility hit the secondary market on Wednesday, with the $330 million seven-year first-lien covenant-light term loan (B2/B) quoted at par ¼ bid, par ¾ offered and the $155 million eight-year second-lien covenant-light term loan (Caa2/CCC+) quoted at par ½ bid, 101 offered, according to a trader.

Pricing on the first-lien term loan is Libor plus 350 basis points with a 1% Libor floor and it was sold at an original issue discount of 99¾. There is 101 soft call protection for six months.

The second-lien term loan is priced at Libor plus 675 bps with a 1% Libor floor and was issued at 99½. This debt has call protection of 102 in year one and 101 in year two.

During syndication, the first-lien term loan was upsized from $320 million, pricing was cut from Libor plus 375 bps and the discount was moved from 99, and pricing on the second-lien loan was trimmed from Libor plus 700 bps while the discount was tightened from 99.

The company’s $550 million credit facility also includes a $65 million revolver (B2/B).

Wencor being acquired

Proceeds from Wencor’s credit facility and equity will be used to fund its buyout by Warburg Pincus from Odyssey Investment Partners LLC.

As a result of the first-lien term loan upsizing, the amount of equity being used for the transaction was reduced.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Goldman Sachs Bank USA are leading the deal.

Closing is expected this quarter, subject to customary regulatory approvals.

Wencor is a Springville, Utah-based designer, repair provider and distributor of aftermarket aerospace components.

Verdesian tops OID

Verdesian Life Sciences’ credit facility also freed up, with the $200 million six-year covenant-light term loan B seen at 99 bid, par offered in light activity, a trader remarked.

Pricing on the term loan is Libor plus 500 bps with a 1% Libor floor and it was sold at an original issue discount of 98½. There is 101 soft call protection for one year.

Earlier this week, pricing on the term B was increased from talk of Libor plus 450 bps to 475 bps, the discount widened from 99, the call protection was extended from six months, amortization was lifted to 5% per annum from 1% and the excess cash flow sweep was revised to 75% from 50%.

The $225 million credit facility (B3/BB-) also includes a $25 million revolver.

Goldman Sachs Bank USA is leading the deal that will help fund an acquisition and refinance debt.

Verdesian is a Cary, N.C.-based provider of patented technologies for high-value specialty crops, row crops, and turf and ornamental markets.

Liberty Cablevision breaks

Another deal to begin trading was Liberty Cablevision of Puerto Rico with its $530 million 7½-year first-lien term loan (B2/B) quoted at par bid, par ½ offered and the $145 million nine-year second-lien term loan (Caa2/CCC) quoted at par ¼ bid, 101¼ offered, a source remarked.

The first-lien term loan is priced at Libor plus 350 bps with a 1% Libor floor and was sold at an original issue discount of 99½. There is 101 soft call protection for six months.

Pricing on the second-lien term loan is Libor plus 675 bps with a 1% Libor floor and it was sold at a discount of 99½. This debt has call protection of 102 in year one and 101 in year two.

During syndication, pricing on the first-lien term loan was reduced from Libor plus 400 bps, pricing on the second-lien loan was cut from Libor plus 750 bps, and the discount on both tranches was changed from 99.

The company’s $715 million credit facility also includes a $40 million revolver (B2/B).

Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc. and Scotia Bank are leading the deal that will be used by the cable TV service provider in Puerto Rico to refinance existing bank debt. Scotia is the administrative agent.

Ascend shutting early

Ascend Learning accelerated the commitment deadline on its $40 million add-on first-lien term loan to noon ET on Thursday from Friday, a market source said.

Pricing on the add-on loan is Libor plus 500 bps with a 1% Libor floor, in line with the existing first-lien term loan, and it is being offered at an original issue discount of 99½.

Bank of America Merrill Lynch, GE Capital Markets and Barclays are leading the deal that will be used to fund an acquisition.

Burlington, Mass., and Leawood, Kan.-based Ascend Learning is a provider of technology-based learning services focused on student training and testing results in health care and other vocational fields.

Red Lobster launches

Red Lobster held its bank meeting on Wednesday morning, and with the event talk on its $375 million seven-year covenant-light term loan B emerged at Libor plus 475 bps to 500 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

The company’s $425 million credit facility (B) also includes a $50 million revolver.

Commitments are due on July 9.

Deutsche Bank Securities Inc., GE Capital Markets and Jefferies Finance LLC are leading the deal that will be used with a fully executed $1.5 billion sale-leaseback agreement with American Realty Capital Properties Inc. to fund the buyout of the company by Golden Gate Capital from Darden Restaurants Inc. for $2.1 billion.

Closing is expected in Darden’s first fiscal quarter of 2015, subject to customary conditions and regulatory approvals. The transaction is not subject to shareholder approval or financing.

Red Lobster is an Orlando, Fla.-based casual dining seafood restaurant company.

Hilex Poly talk

Hilex Poly launched with a morning bank meeting its $555 million senior credit facility with price talk of Libor plus 425 bps, a market source said.

The facility is split between an $85 million five-year revolver, for which pricing is subject to a leveraged based grid, and a $470 million seven-year covenant-light term loan that includes a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months, the source continued.

Commitments are due on July 11.

GE Capital, Macquarie Capital (USA) Inc. and BMO Capital Markets Corp. are leading the deal that will be used with $40 million of mezzanine financing from Northwestern Mutual Life to fund the acquisition of Duro Bag Manufacturing Co., a Florence, Ky.-based manufacturer of paper bags.

Closing is expected at the end of this quarter, subject to customary conditions and regulatory approvals.

Hilex Poly is a Hartsville, S.C.-based manufacturer of plastic bags.

Blackbrush sets guidance

Blackbrush Oil & Gas came out with talk of Libor plus 650 bps with a 1% Libor floor, an original issue discount of 99 and call protection of 102 in year one and 101 in year two on its $275 million seven-year second-lien term loan that launched with a morning meeting, according to a market source.

Commitments are due on July 9, the source said.

UBS AG is leading the deal that will be used to help fund the buyout of the company by Ares Management LP from EIG Management Co. LLC and Tailwater Capital LLC.

Closing is expected in the third quarter, subject to customary conditions.

BlackBrush is a San Antonio, Texas-based oil and gas exploration and development company.

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