PVH, LIN Televesion free up; Consolidated Precision, TransFirst, Hunter Fan changes emerge

By Sara Rosenberg

New York, Dec. 19 - PVH Corp.'s credit facility broke for trading on Wednesday with the term loan B seen above its original issue discount price, and LIN Television Corp. reduced the coupon on its term loan, firmed the offer price at the low end of guidance and then freed up in the afternoon above par.

In other happenings, Consolidated Precision Products Corp. (WPP CPP Holdings LLC) reworked its deal, raising pricing on the second-lien loan, while also widening the discount, sweetening call premiums, shortening the maturity and firming the spread on the first-lien loan at the high end of talk.

Also coming out with revisions was TransFirst Holdings Inc., as it trimmed the spread on its first-lien loan and upsized its second-lien tranche, and Hunter Fan Co., as it downsized its first- and second-lien term loans, shortened maturities on the tranches and increased first-lien pricing.

PVH emerges in secondary

PVH freed up for trading on Wednesday, with the $1.375 billion seven-year term loan B quoted at 99¾ bid, par ¼ offered and then it moved up to par bid, 101 offered, according to one trader. A second source also saw the debt break at 99¾ bid, par ¼ offered, but he was then quoting it at par bid, par ¾ offered by late day.

Pricing on the term loan B is Libor plus 250 bps with a 0.75% Libor floor, and it was sold at an original issue discount of 991/2. Included in the tranche is 101 soft call protection for one year and a ticking fee of 50 bps from March 15, 2013 through May 14, 2013 and 100 bps thereafter.

The company's $3.825 billion senior secured credit facility (Ba1/BBB-) also provides for a $750 million five-year revolver and a $1.7 billion five-year term loan A, both priced at Libor plus 200 bps. The spread is based on a leverage grid with pricing ranging from Libor plus 150 bps to 225 bps.

The A loan broke for trading at 99¾ bid, and then moved to 99½ bid, par offered, a source added.

During syndication, the term loan B was downsized from $1.875 billion as the term loan A was upsized from $1.2 billion, pricing on the B loan was trimmed from talk of Libor plus 275 bps to 300 bps, and the ticking fee was added.

PVH lead banks

Barclays Capital Inc., Bank of America Merrill Lynch, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and RBC Capital Markets LLC are leading PVH's credit facility.

Proceeds, along with $700 million of notes, will be used to fund the cash portion of the acquisition of Warnaco Group Inc., to refinance debt at both companies and to provide liquidity going forward.

Under the agreement, Warnaco stockholders will receive $51.75 per share in cash and 0.1822 of a share of PVH common stock for each share of Warnaco common stock. The transaction is valued at about $68.43 per share and the total enterprise value is around $2.9 billion.

Closing is expected in early 2013, subject to customary conditions, including Warnaco stockholder approval and regulatory approvals.

Net senior secured leverage is 2 times, net total leverage is 3.1 times and lease-adjusted leverage is 4 times.

Bridgewater, N.J.-based and New York-based Warnaco are apparel companies.

LIN updates pricing, breaks

LIN Television cut pricing on its $258 million term loan B (Ba2/BB-) due December 2018 to Libor plus 300 bps from Libor plus 325 bps and set the offer price at par, the tight end of the 99¾ to par talk, according to a market source.

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

Recommitments were due at noon ET on Wednesday and then the loan began trading with levels quoted at par ½ bid, 101 offered, a trader remarked.

J.P. Morgan Securities LLC is leading the deal that will be used to reprice the company's existing term loan B.

LIN is a Providence, R.I.-based broadcaster.

Consolidated reworked

In other news, Consolidated Precision Products made a number of changes to its $185 million covenant-light second-lien term loan (Caa1/CCC+), including lifting pricing to Libor plus 925 bps from talk of Libor plus 825 bps to 850 bps and moving the original issue discount to 98 from 981/2, according to a market source.

Additionally, the maturity on the second-lien loan was shortened to 7½ years from eight years and call protection was revised to 103 in year one, 102 in year two and 101 in year three, from 102 in year one and 101 in year two, the source said.

As before, the second-lien debt has a 1.25% Libor floor.

Regarding the $415 million seven-year covenant-light first-lien term loan (B1/B), pricing settled at Libor plus 475 bps, the high end of the Libor plus 450 bps to 475 bps talk, while the 1.25% Libor floor, original issue discount of 99 and 101 soft call protection for one year were unchanged, the source continued.

Consolidated acquisition

Proceeds from Consolidated Precision's $700 million credit facility, which also includes a $100 million five-year revolver (B1/B) that has a 50 bps unused fee, will be used to help fund the purchase of ESCO Corp.'s Turbine Technologies Group, a manufacturer of superalloy precision investment cast components, and to refinance existing debt.

UBS Securities LLC, GE Capital Markets and RBC Capital Markets LLC are the bookrunners on the deal that is expected to allocate on Friday morning, the source added.

Closing is expected following satisfaction of regulatory requirements and other customary conditions.

Consolidated Precision Products is a Pomona, Calif.-based manufacturer of highly engineered components and sub-assemblies, supplying the commercial aerospace, military and industrial markets with small- to large-function critical products.

TransFirst revises loans

TransFirst Holdings lowered pricing on its $400 million five-year first-lien term loan B (B1/B) to Libor plus 500 bps from Libor plus 525 bps, but kept the 1.25% Libor floor, original issue discount of 99 and 101 soft call protection for one year in place, according to market sources.

Additionally, the 51/2-year second-lien term loan (Caa2/CCC+) was increased to $225 million from $200 million, while pricing stayed at Libor plus 975 bps with a 1.25% Libor floor and a discount of 97, sources said. This tranceh still has hard call protection of 102 in year one and 101 in year two.

Recommitments were due at 5 p.m. ET on Wednesday, with allocations targeted for Thursday morning and closing expected to occur next week, sources added.

Bank of America Merrill Lynch and GE Capital Markets are leading the deal that will be used to refinance existing debt, fund a dividend and redeem equity.

TransFirst is a Hauppauge, N.Y.-based provider of transaction processing services and payment enabling technologies.

Hunter Fan tweaks deal

Hunter Fan downsized its first-lien term loan to $100 million from $117 million, raised pricing to Libor plus 525 bps from Libor plus 500 bps and revised the maturity to five years from six years, according to market sources.

The first-lien term loan still has a 1.25% Libor floor and an original issue discount of 99, and includes 101 soft call protection for one year.

Furthermore, the company trimmed the size of its second-lien term loan to $55 million from $63 million and shortened the maturity to six years from seven years, sources remarked.

The company's now $180 million credit facility continues to include a $25 million revolver.

GE Capital Markets is leading the deal that will be used to refinance existing debt. The previously planned dividend payment was removed because of the reduction in the term loan sizes.

Hunter Fan is a Memphis, Tenn.-based ceiling fan manufacturer.

Metaldyne closes

The buyout of Metaldyne LLC by American Securities from Carlyle Group has been completed, according to a news release.

To help fund the transaction, Metaldyne got a new $620 million credit facility (B1/B+) consisting of a $75 million five-year revolver, a $415 million six-year U.S. term loan B and a $130 million six-year euro equivalent term loan B.

Pricing on the U.S. term B is Libor plus 475 bps with a 1.25% Libor floor, and it was sold at a discount of 991/2, after tightening from 99, and pricing on the euro loan is Euribor plus 525 bps with a 1.25% Euribor floor, and it sold at a discount of 98, after widening from 99.

Bank of America Merrill Lynch, Deutsche Bank Securities Inc., RBC Capital Markets LLC and Barclays lead the deal.

Metaldyne is a Plymouth, Mich.-based designer and supplier of metal-formed components and assemblies for powertrain applications.

Greektown deal wraps

Greektown Superholdings Inc., the operator of the Detroit-based Greektown Casino-Hotel, announced in a news release the pricing of its $455 million facility consisting of a $15 million three-year revolver (B2/BB-), a $15 million five-year term A (Ba3/BB-), a $325 million six-year first-lien term B (B2/BB-) and a $100 million seven-year second-lien term loan (Caa2/CCC+).

The revolver and term loan A are priced at Libor plus 225 bps.

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 second-lien loan is priced at Libor plus 975 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. led the first- and second-lien loans, and Comerica Bank led the pro rata.

Proceeds will repay 13% senior secured notes due July 1, 2015 and a revolver.

© 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.