RedPrairie, Wyle break; MGM, Lyondell CAM rise; Lyondell tweaks deal; Affinion sets talk

By Sara Rosenberg

New York, March 25 - RedPrairie Holding Inc.'s credit facility freed up for trading early on in Thursday's trading session, with the term loan quoted above par, and Wyle Services Corp.'s term loan broke as well, moving into the upper-99 area on the bid side.

Furthermore, Metro-Goldwyn-Mayer Inc.'s (MGM Studios) term loan recouped some of its losses from the previous day, and LyondellBasell Industries' pre-petition CAM continued to track higher.

In more LyondellBasell news, its subsidiary, Lyondell Chemical Co., announced a second round of changes to its term loan B, this time lowering pricing and the Libor floor, and the expectation is that allocations will go out early next week.

Also on the primary side, Affinion Group Inc. came out with price talk on its credit facility as syndication on the transaction officially kicked off with a bank meeting in the morning.

RedPrairie frees to trade

RedPrairie's credit facility hit the secondary market in the morning, with levels on the $240 million term loan quoted above the original issue discount price at which it was sold during syndication, according to a trader.

The term loan was quoted at par bid, par ½ offered on the break and then it edged up to par ¼ bid, par ¾ offered, the trader said.

Pricing on the term loan is Libor plus 400 basis points with a step-down to Libor plus 375 bps when leverage is less than 3.0 times.

There is a 2% Libor floor under the term loan and the tranche was sold at an original issue discount price of 991/2.

During syndication, the step-down in pricing was added and the discount price tightened from 99.

RedPrairie funded buyout

Proceeds from RedPrairie's term loan were used to help fund the buyout of the company by New Mountain Capital LLC from Francisco Partners. Closing on the acquisition was announced on Wednesday.

In addition to the term loan, the company got a $30 million revolver.

Credit Suisse and RBC acted as the lead banks on the $270 million deal, with Credit Suisse the left lead.

RedPrairie is a Waukesha, Wis.-based productivity services provider.

Wyle Services breaks

Also freeing up for trading on Thursday was Wyle Services' credit facility, with the $95 million term loan quoted at 99½ bid on the break and then it moved up to 99¾ bid, according to a trader.

Pricing on the term loan is Libor plus 400 bps with a 2% Libor floor, and it was sold at an original issue discount of 99.

The company's $120 million credit facility (Ba2/BB) also includes a $25 million revolver that is priced in line with the term loan.

Pricing on the two tranches can move around from Libor plus 400 bps to 500 bps according to a leverage-based grid.

Wyle Services refinancing debt

Proceeds from Wyle Services' credit facility will be used primarily to refinance existing mortgage debt.

Barclays and JPMorgan are the lead banks on the deal, with Barclays the left lead.

During syndication, the term loan was upsized from $90 million, the original issue discount on the term loan was trimmed from the 98½ area, and pricing on the term loan and the revolver was cut by 25 bps across the entire pricing grid from a range of Libor plus 425 bps to 525 bps.

Wyle is an engineering firm specializing in high-tech testing, life sciences and technical-support services to federal government agencies, including the Department of Defense and NASA.

MGM Studios improves

MGM Studios' term loan gained some ground in trading after taking a noticeable hit during the prior day's activity, according to a trader.

The term loan was quoted at 48 bid, 49 offered, up from 47¾ bid, 48¾ offered, the trader said, explaining that the momentum was likely due to the positive tone in the market.

On Wednesday, however, the paper dropped from around the 50¼ bid, 51¼ offered context as the company held a lender call to discuss an extension of its forbearance agreement related to missed interest payments on its credit facility.

MGM Studios is a Los Angeles-based motion picture, television, home video and theatrical production and distribution company.

LyondellBasell CAM trades up

LyondellBasell's pre-petition CAM was stronger on Thursday as the market in general felt better, according to a trader.

The CAM was quoted at 75 bid, 76 offered, up from 73¾ bid, 74¾ offered, the trader said.

On Wednesday the CAM had a positive day as well, moving up from 73 bid, 74 offered with news of court approval of the exit financing at its subsidiary, Lyondell Chemical, and pricing of the company's upsized bond offering.

Lyondell reworks loan pricing

Also on Thursday, Lyondell Chemical came out with some new changes to its $500 million six-year senior secured term loan B (Ba3), with this round focusing on the pricing of the deal, according to a market source.

Under the revisions, pricing on the term loan was reduced to Libor plus 400 bps from Libor plus 425 bps and the Libor floor was lowered to 1.5% from 2%, the source said, adding that original issue discount was left unchanged at 99.

Recommitments are due from lenders on Friday at 4 p.m. ET.

In the first round of changes, which took place earlier this week, the term loan B had been cut in half from $1 billion as the company's bond offering was increased to $2.75 billion from $2.25 billion. Also, the financial covenants - a maximum first-lien leverage ratio and a minimum interest coverage ratio - were eliminated.

Lyondell readies allocations

Lyondell Chemical is anticipated to allocate and free up for trading its term loan B on Monday, the source remarked.

The company's $2.25 billion credit facility also includes a $1.75 billion ABL revolver.

Joint bookrunners on the term loan B are UBS, Bank of America, Barclays, Citigroup, Credit Suisse, Deutsche Bank, JPMorgan, Morgan Stanley and Wells Fargo, with UBS the left lead. Citigroup is the left lead on the ABL revolver.

Proceeds from credit facility, the new senior secured notes, a new European securitization facility and a $2.8 billion rights offering will be used to repay and replace existing debt when the company exits bankruptcy.

The notes, comprised of a $2.25 billion dollar tranche and a €375 million euro tranche, priced on Wednesday at par to yield 8%.

Lyondell is a U.S. subsidiary of LyondellBasell Industries AF SCA, a Netherlands-based polymer, petrochemicals and fuels company.

Shearer's hoped to break soon

Another deal that is expected to allocate and start trading next week is Shearer's Foods Inc.'s $139 million credit facility (Ba3/B), according to a market source.

The facility consists of a $20 million revolver and a $119 million term loan, with both tranches priced at Libor plus 475 bps with a 2% Libor floor, and both were sold at an original issue discount of 98.

Jefferies and BMO are the lead banks on the deal, with Jefferies the left lead.

Proceeds will be used to help fund the acquisition of Snack Alliance Inc., a contract pack and private label snack producer.

Shearer's, which is majority owned by Mistral Equity Partners, is a Brewster, Ohio-based producer and distributor of contract pack and private label seasoned snack foods.

Affinion talk emerges

In more loan happenings, Affinion Group held a bank meeting on Thursday morning to launch its proposed $1 billion credit facility, and price talk was announced at that meeting, according to a market source.

Both the $125 million five-year revolver and the $875 million 61/2-year term loan B are being talked at Libor plus 350 bps, the source said.

The term loan B is also being guided with a 1.5% to 1.75% Libor floor and an original issue discount in the 98½ to 99 area, the source continued.

Bank of America and Credit Suisse are the lead banks on the deal that will be used to refinance existing debt and for general corporate purposes, including acquisitions.

Affinion is a Norwalk, Conn.-based provider of marketing services and loyalty programs.

BioScrip closes

BioScrip Inc. closed on its new $150 million five-year senior secured credit facility (Ba3/BB-), consisting of a $100 million term loan and a $50 million revolver, according to a news release.

The facility is priced at Libor plus 400 bps with a 2% Libor floor, and it was sold at an original issue discount of 98.

Jefferies acted as the lead bank on the deal that was used to help fund the acquisition of Critical Homecare Solutions, a provider of home infusion and home health agency services to patients suffering from chronic and acute medical conditions.

Other funding for the acquisition came from $225 million of senior unsecured notes, $109.8 million of BioScrip common stock and 3.4 million warrants having a $10.00 exercise price.

BioScrip is an Elmsford, N.Y.-based specialty pharmaceutical health care organization.

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