Upsized Wireco prices; Savers allocates; loan funds see $258 million inflows on the week

By Paul A. Harris

Portland, Ore., June 28 - WireCo WorldGroup Inc. priced its upsized $335 million term loan B at 99 on Thursday and allocated the deal, which traded to 99½ bid, par ½ offered, according to a market source.

The loan was upsized from $325 million.

Elsewhere, Savers Inc.'s $655 million Libor plus 500 basis points seven-year term loan priced at 99 and traded as high as par ½ bid on Thursday, according to a trader.

The spread and the proposed original issue discount were tightened.

Against a backdrop of sagging stock prices, said to be triggered by negative sentiment in the business community in reaction to the United States Supreme Court's decision to uphold health care reform previously passed by Congress, cash loans traded flat to slightly higher.

The LCDX 18 bank loan index was down 1/8 point at 97½ bid, 98 offered, at the close, after having been down as much as a quarter-point earlier in the session.

Although rumors circulated that debt instruments from the health care sector were under pressure following the announcement from the Supreme Court, those rumors were untrue, according to a trader, who said that much of the sector was bound to be better off in the wake of the decision.

Hospitals, which figure to do a lot better at collecting on bills, were basically unchanged, the trader said.

The HCA Inc. term loan B-1 was 99¼ bid, 99½ offered, the term B-3 was 96¾ bid, 97¼ offered and the A-1 tranche was 99¾ bid, par 1/8 offered.

And bank loan mutual funds saw $257.5 million of inflows for the week to Wednesday, according to a debt capital markets source, who cited information in a weekly report from Lipper-AMG.

WireCo allocates

WireCo WorldGroup's term loan was upsized from $325 million.

Also, pricing on the term loan B was decreased to Libor plus 475 basis points from the Libor plus 500 bps area and the original issue discount tightened to 99 from 981/2, the source said.

The term loan's 1.25% Libor floor and 101 soft call protection for one year were left unchanged.

The $480 million credit facility also features a revolver which was upsized to $145 million from $135 million, according to a market source.

The revolver has a 50 bps unused fee.

Goldman Sachs & Co. and Deutsche Bank Securities Inc. are the lead banks on the $480 million senior secured credit facility (Ba2/BB-) due Feb. 15, 2017.

Proceeds will be used to help fund the acquisition of Koninklijke (Royal) Lankhorst Euronete Group BV for $231.2 million and to refinance an existing senior secured credit facility.

As a result of the upsized term loan, less will be drawn under the revolver at close, the source added.

Savers prices $655 million

Savers' loan saw its spread and the proposed original issue discount tighten.

The Libor spread tightened to 500 basis points from earlier talk of 500 bps to 525 bps. There is a a 1.25% Libor floor.

The original issue discount talk moved to 98 ½ to 99, trimming the discount from earlier talk of 98 to 981/2.

The term loan is repayable at par, the source said.

The company's $730 million senior secured credit facility (Ba3) also includes a $75 million five-year revolver.

Goldman Sachs Lending Partners LLC, Barclays Bank plc, Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. are the joint bookrunners and joint lead arrangers on the deal.

Proceeds will be used to help fund the recapitalization of the company through a buyout by Leonard Green & Partners LP, TPG, chairman Thomas Ellison and management.

In addition, the company will issue $295 million of private unsecured notes that will be purchased by Crescent Capital Group.

The company is being acquired from Freeman Spogli & Co.

Closing is expected in July.

Savers is a Bellevue, Wash.-based thrift store chain.

LS Power prices

LS Power priced a downsized $750 million Libor plus 425 basis points seven-year first-lien term loan (Ba2/BB+) at 97.5, according to an informed source.

The deal, which was downsized from $800 million, allocated and broke for trading.

The discount came wider than price talk that had already hiked the OID to widen to 98 from 981/2.

The loan has a 1.25% Libor floor and soft call protection of 102 in year one and 101 in year two.

Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc. and Morgan Stanley Senior Funding Inc. are the lead banks on the deal.

Proceeds will be used to refinance existing project level debt, to fund reserve accounts, to fund a one-time distribution to the sponsor and for general corporate purposes.

Consolidated Container tightens

Consolidated Container Co. tightened the discount talk and spread talk on its $370 million seven-year term loan B, a syndicate source said on Thursday.

Spread talk dropped to Libor plus 500 basis points from Libor plus 525 bps. The 1.25% Libor floor remains in place.

Discount talk tightened to 99 from previous talk of 98½ to 99.

Commitments are due on Friday.

The company's $495 million credit facility also includes a $125 million ABL revolver.

Bank of America Merrill Lynch, Citigroup Global Markets Inc., RBC Capital Markets LLC and Credit Suisse Securities (USA) LLC are the lead banks on the deal.

Proceeds will be used to help fund the buyout of the company by Bain Capital Partners LLC from Vestar Capital Partners.

Other funds for the transaction will come from $250 million of senior unsecured notes, for which Citigroup is the left lead.

Klockner sets talk

Klockner Pentaplast set the Libor spread for its $435 million term loan at 575 basis points with a 1.25% Libor floor.

The deal is talked at a discount of 98 to 98.50.

Commitments are due by July 16.

Jefferies & Co. is the lead bank on the deal.

The $500 million credit facility also features a $65 million revolver.

Proceeds will be used to help fund the company's recently completed recapitalization, under which it got the new debt facilities underwritten and funded by Jefferies and €190 million of cash equity from a group of new investors led by Strategic Value Partners LLC.

Other funds for the transaction will come from €255 million of second-lien notes that are expected to come to market sometime after July 4, the source added.

U.S. Renal firms pricing

U.S. Renal Care Inc. firmed pricing on $425 million of covenant-light term loans.

Talk tightened on the $305 million seven-year first-lien term loan, with the Libor spread now set at 500 basis points, in from earlier talk of 500 bps to 525 bps. The first-lien loan has a 1.25% Libor floor and an original issue discount of 981/2.

Spread talk widened to Libor plus 900 bps from Libor plus 850 bps on the $120 million 7.5-year second-lien term loan, which features a 1.25% floor and a discount of 98.

Call protection on both tranches remains unchanged. The first-lien loan has 101 soft call protection for one year, and the second-lien term loan has call protection of 103 in year one, 102 in year two and 101 in year three.

The company's $485 million credit facility also provides for a $60 million five-year revolver.

Barclays Capital Inc., RBC Capital Markets LLC and Goldman Sachs & Co. are the lead banks on the deal.

Proceeds will be used to help fund the buyout of the company by Leonard Green & Partners LP from Cressey & Co.

Arctic Glacier sets pricing

Arctic Glacier USA Inc. set pricing for its $200 million six-year first-lien term loan at a 675 basis points spread to Libor with a 1.5% Libor floor at 97 to yield 9%.

The deal features a one-year soft call at 101, which pertains only if the deal is repriced.

Credit Suisse Securities (USA) LLC is the bookrunner on the deal. Jefferies & Co. is the syndication agent.

The $225 million credit facility also has a $25 million five-year revolver.

Proceeds will be used to help fund the buyout of the company by H.I.G. Capital.

Other funds will come from $85 million of mezzanine debt, the source added.

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