Around 20 deals break into busy pre-holiday secondary market; Dayco, Nexstar updates surface

By Sara Rosenberg

New York, Nov. 26 - Del Monte Foods Consumer Products Inc., TNT Crane & Rigging Inc. (North American Lifting Services Holdings Inc.), Reynolds Group Holdings Inc., Go Daddy Operating Co. LLC, Tallgrass Operations LLC, Landry's Inc., Intrawest Corp., Ancestry.com, Borgata (Marina District Finance Co. Inc.), Tropicana Entertainment Inc., WideOpenWest Finance LLC, Alliant Holdings I LLC, Phoenix Services (Metals Services LLC), Starwood Property Trust Inc., Heartland Dental Care LLC, Continental Building Products LLC, OCI Beaumont LLC, Santander Asset Management, Windstream Corp., General Nutrition Centers Inc. and Vantage Specialty Chemicals all emerged in the secondary market on Tuesday.

Over in the primary, Dayco Products LLC reduced the size of its term loan B, raised pricing, added a leverage-based step-down, extended the call protection and shortened the maturity, and Nexstar Broadcasting Inc. finalized the offer price on its loan at the low end of guidance.

Also, Bennu Oil & Gas LLC came to market with a tack-on second-lien term loan, Answers Corp. and WTG Holdings emerged with credit facility plans, and Open Text Corp., Salix Pharmaceuticals Ltd. and Darling International Inc. revealed timing on the launch of their new deals.

Del Monte above OIDs

Del Monte Foods' credit facility started trading on Tuesday, with the $710 million seven-year covenant-light first-lien term loan (B2/B+) quoted at par 3/8 bid, par 7/8 offered and the $260 million 71/2-year covenant-light second-lien term loan (Caa1/CCC+) quoted at 101 bid, 102 offered, according to a trader.

Pricing on the first-lien term loan is Libor plus 325 basis points with a 1% Libor floor and it was sold at an original issue discount of 991/2. There is 101 soft call protection for six months.

The second-lien loan is priced at Libor plus 725 bps with a 1% Libor floor and was sold at a discount of 99. 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 $650 million, pricing was cut from Libor plus 375 bps and the discount firmed at the tight end of the 99 to 99½ talk, and the second-lien loan was downsized from $280 million, pricing was reduced from Libor plus 775 bps, the discount was changed from talk of 98 to 981/2, and the call protection was reduced from 103 in year one, 102 in year two and 101 in year three.

The company's $1.32 billion credit facility also provides for a $350 million ABL revolver.

Del Monte lead banks

Citigroup Global Markets Inc., Morgan Stanley Senior Funding Inc. and KKR Capital Markets LLC are the leads on Del Monte's credit facility, with Citi the left lead on the first-lien loan and Morgan Stanley the left lead on the second-lien loan.

Proceeds will be used to help fund the purchase of Del Monte Foods' consumer food business by Del Monte Pacific Ltd.

As a result of the recent upsizing to the total amount of term loan debt, the equity portion for the transaction is being reduced by $40 million.

Closing on the $1.68 billion acquisition is expected in January 2014, subject to regulatory approvals and customary conditions.

Del Monte Foods Consumer Products is a packaged goods and fruit and vegetable company. Singapore-based Del Monte Pacific is a group of companies that caters to consumer needs for healthy food and beverage products.

TNT frees up

TNT Crane's credit facility hit the secondary with the $400 million seven-year first-lien term loan B (B1) quoted at 99 bid, par offered and the $170 million eight-year second-lien term loan (Caa1) quoted at 93 bid, according to a market source.

Pricing on the first-lien term loan is Libor plus 450 bps with a 1% Libor floor and it was sold at a discount of 98. There is 101 soft call protection for one year.

The second-lien loan is priced at Libor plus 900 bps with a 1% Libor floor and was sold at 92. This debt is non-callable for one year, then at 102 in year two and 101 in year three.

During syndication, pricing on the first-lien loan firmed at the wide end of revised talk of Libor plus 425 bps to 450 bps, and up from initial talk of Libor plus 375 bps, and the discount widened from 99, and pricing on the second-lien loan was lifted from revised talk of Libor plus 850 bps to 875 bps and initial talk of Libor plus 775 bps, the discount was changed from revised talk of 98 and initial talk of 98½ to 99, and the call protection was sweetened from revised talk of 103 in year one, 102 in year two and 101 in year three, and initial talk of 102 in year one and 101 in year two.

TNT getting revolver

TNT Crane's $645 million credit facility also includes a $75 million five-year revolver (B1).

Goldman Sachs Bank USA, Macquarie Capital (USA) Inc., RBC Capital Markets LLC and Stifel, Nicolaus & Co. Inc. are leading the deal that will be used to help fund the buyout of the company by First Reserve and management from Odyssey Investment Partners.

Closing is expected by year-end, subject to certain regulatory approvals.

TNT is a Houston-based provider of lifting services and equipment to customers in the energy and industrial infrastructure end markets.

Reynolds starts trading

Reynolds' $2,213,000,000 term loan due December 2018 broke for trading, with levels seen at par 5/8 bid, 101 1/8 offered, according to a trader.

Pricing on the U.S. term loan is Libor plus 300 bps with a 1% Libor floor and it was issued at par. There is 101 soft call protection for six months.

The company is also getting a €297 million term loan due December 2018 priced at Euribor plus 325 bps with a 1% floor and issued at par. This tranche has 101 soft call protection for six months too.

Recently, the spread on the U.S. loan firmed at the low end of the Libor plus 300 bps to 325 bps talk and the spread on the euro loan was set at the low end of the Euribor plus 325 bps to 350 bps talk.

Credit Suisse Securities (USA) LLC is the lead arranger on the deal (B1), and HSBC Securities (USA) Inc. is a co-arranger.

Proceeds will refinance an existing U.S. term loan due October 2018 priced at Libor plus 375 bps with a 1% Libor floor and an existing euro term loan due October 2018 priced at Euribor plus 400 bps with a 1% floor.

Reynolds Group is an Auckland, New Zealand-based manufacturer and supplier of consumer food and beverage packaging and storage products.

Go Daddy levels surface

Go Daddy's $835 million senior secured covenant-light term loan due December 2018 freed up, with levels quoted at par bid, par 3/8 offered and then it moved to par 1/8 bid, par ½ offered, a trader said.

Pricing on the loan is Libor plus 300 bps with a step-down to Libor plus 275 bps when the Standard & Poor's rating is B+ and the recovery rating is 2. There is a 1% Libor floor and 101 soft call protection for six months, and the debt was issued at par.

Last week, pricing on the loan was increased from Libor plus 275 bps and the step-down was added.

Barclays, KKR Capital Markets and Deutsche Bank Securities Inc. are leading the deal that will be used to reprice an existing term loan from Libor plus 325 bps with a 1% Libor floor.

Closing is targeted for Wednesday.

Go Daddy is a Scottsdale, Ariz.-based provider of web hosting and domain names.

Tallgrass breaks

Another deal to begin trading was Tallgrass' $718.4 million senior secured term loan B (BB-) due Nov. 13, 2018, with levels seen at 99¾ bid, par¾ offered, according to a trader.

Pricing on the loan, which includes $250 million of incremental debt and $468.4 million of repricing debt, is Libor plus 325 bps with a 1% Libor floor, and there is 101 soft call protection for six months. The new money was issued at a discount of 99½ and the repricing was issued at par.

Recently, the amount of incremental debt was increased from $150 million.

The repricing will take the existing term loan down from Libor plus 400 bps with a 1.25% Libor floor, and the incremental debt will be used to provide additional liquidity for the company's Pony Express project, for general corporate purposes and to fund other growth projects.

Barclays is the lead on the deal that is expected to close on Wednesday.

Gross secured leverage is 2.7 times, and net total leverage is 1.4 times, the source added.

Tallgrass is an Overland Park, Kan.-based owner, operator, acquirer and developer of midstream energy assets.

Landry's north of par

Landry's roughly $1 billion term loan due 2018 broke, with levels quoted at par ¼ bid, according to a trader.

Pricing on the loan is Libor plus 300 bps with a 1% Libor floor and it was issued at par. There is 101 soft call protection for six months.

Proceeds will be used to reprice an existing term loan from Libor plus 350 bps with a 1.25% Libor floor.

Jefferies Finance LLC and Deutsche Bank Securities Inc. are the lead banks on the deal that is expected to close on Wednesday.

Landry's is a Houston-based full-service restaurant, hospitality and entertainment company.

Intrawest frees up

Intrawest's credit facility hit the secondary market too, with the $540 million seven-year first-lien covenant-light term loan (B2/B+) quoted at par bid, 101 offered, according to a trader.

Pricing on the first-lien term loan is Libor plus 450 bps with a 1% Libor floor and it was sold at an original issue discount of 99. There is 101 soft call protection for one year.

The company's $620 million credit facility also includes a $25 million revolver (Ba2/BB-) and a $55 million letter-of-credit facility (B2/B+).

Goldman Sachs Bank USA, Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC and Bank of America Merrill Lynch are leading the deal that will be used to refinance existing debt.

Intrawest is Denver-based operator of ski resorts and luxury adventure travel brands.

Ancestry.com starts trading

Ancestry.com's term loans broke, with the $457,104,188 term loan B-1 due Dec. 28, 2018 and the $165 million term loan B-2 due May 15, 2018 quoted at par ¼ bid, a market source said.

Pricing on the B-1 loan is Libor plus 350 bps and pricing on the B-2 loan is Libor plus 300 bps, with both having a 1% Libor floor and 101 soft call protection for six months. The B-1 and the repricing portion of the B-2 loan were issued at par, and the new money raised on the B-2 was sold at a discount of 991/2, the source said.

Earlier, the B-1 loan was downsized from $487,104,188 and pricing firmed at the wide end of the Libor plus 325 bps to 350 bps talk, and the B-2 loan was upsized from $135 million and the spread firmed at the high side of the Libor plus 275 bps to 300 bps talk.

Morgan Stanley Senior Funding Inc. is the sole lead arranger on the $622,104,188 in senior secured term loans and a joint bookrunner with Barclays, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., RBC Capital Markets, Goldman Sachs Bank USA and HSBC Securities (USA) Inc.

The repricing will take the B-1 loan down from Libor plus 400 bps with a 1.25% Libor floor and the term loan B-2 down from Libor plus 325 bps with a 1% Libor floor.

Ancestry.com, a Provo, Utah-based online family history resource, expects to close on the deal on Dec. 30.

Borgata surfaces in secondary

Borgata's $380 million covenant-light term loan B (B2/B+) due Aug. 15, 2018 started trading, with levels quoted at par bid, 101 offered, according to a market source.

Pricing on the loan is Libor plus 575 bps, after firming recently at the low end of the Libor plus 575 bps to 600 bps talk, and there is a step-down that was added the other day to Libor plus 550 bps at 5 times total leverage. The debt also has a 1% Libor floor and call protection of 102 in year one and 101 in year two, and was issued at a discount of 99.

Deutsche Bank Securities Inc., Wells Fargo Securities LLC, Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC and Nomura are leading the deal that will be used to refinance the company's existing 9½% notes due 2015.

Borgata is a destination casino and resort located in Atlantic City.

Tropicana levels

Tropicana's $300 million seven-year first-lien covenant-light term loan surfaced in the secondary, with levels quoted at par bid, par ½ offered, according to a trader.

Pricing on the loan is Libor plus 300 bps, following a recent flex from Libor plus 325 bps. The debt includes a 1% Libor floor and 101 soft call protection for six months, and was issued at a discount of 991/2.

The Las Vegas-based gaming and entertainment company's $315 million credit facility (B2/BB+) also provides for a $15 million five-year revolver that has pricing that can range from Libor plus 200 bps to 250 bps based on pro forma net leverage.

Credit Suisse Securities (USA) LLC and UBS Securities LLC are leading the deal that will be used to refinance existing debt and fund the acquisition of Lumiere Place Casino, HoteLumiere and the Four Seasons Hotel St. Louis from Pinnacle Entertainment Inc.

Closing is expected early next year, subject to receipt of regulatory approvals from the Federal Trade Commission and the Missouri Gaming Commission, as well as customary conditions.

Pro forma for the transaction, total leverage will be 2.7 times and net leverage will be 1.7 times based on pro forma last-12-months Sept. 30 adjusted EBITDA of $112.5 million.

WideOpenWest hits secondary

WideOpenWest's $425 million term loan B-1 due July 2017 started trading, with levels quoted at par bid, par ½ offered by late day, a trader remarked.

Pricing on the loan is Libor plus 300 bps with a 0.75% Libor floor and it was issued at par. The debt has 101 soft call protection through April 1.

During syndication, the loan was upsized from $400 million and pricing finalized at the wide end of the Libor plus 275 bps to 300 bps talk.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance/reprice the existing term loan B-1 from Libor plus 325 bps with a 1% Libor floor, and, due to the upsizing, to pay down revolver borrowings.

WideOpenWest is a Denver-based provider of residential and commercial high-speed internet, cable television and telephone services.

Alliant bid above par

Alliant Holdings' $699,712,500 term loan B due Dec. 20, 2019 broke, with levels seen at par 1/8 bid, a market source said.

Pricing on the term loan is Libor plus 325 bps, after firming at the tight end of the Libor plus 325 bps to 350 bps talk. There is a 1% Libor floor and 101 soft call protection for six months, and the debt was issued at par.

The company's $799,712,500 senior secured credit facility also includes a $100 million revolver due Dec. 20, 2017 priced at Libor plus 300 basis points, after finalizing at the low end of the Libor plus 300 bps to 325 bps talk.

Morgan Stanley Funding Inc. and KKR Capital Markets LLC are the joint lead arrangers on the deal and Morgan Stanley, J.P. Morgan Securities LLC and Macquarie Capital (USA) Inc. are the bookrunners.

Proceeds will be used to reprice an existing credit facility. With the repricing term loan B pricing is coming down from Libor plus 375 bps with a 1.25% Libor floor.

Closing is expected to occur on Dec. 20.

Alliant is a Newport Beach, Calif.-based specialty insurance brokerage firm.

Phoenix begins trading

Phoenix Services' $322.75 million term loan due June 30, 2017 also freed up, with levels seen at par ½ bid, 101 offered, according to a market source.

Pricing on the loan, which includes a $25 million tack-on, is Libor plus 500 bps with a 1% Libor floor and it was issued at par. There is 101 soft call protection for one year.

The other day, the offer price on the tack-on piece was tightened from 991/2.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to reprice an existing $297.75 million first-lien term loan from Libor plus 650 bps with a 1.25% Libor floor, and the tack-on will be used for growth capital expenditures.

The existing term loan will be repaid at 101 with the repricing.

Phoenix Services is a Kennett Square, Pa.-based provider of steel mill services and a processor of slag and co-products from steel mills and foundries.

Starwood breaks

Starwood Property's $375 million first-lien add-on covenant-light term loan due April 2020 emerged in the secondary, with levels seen at 99¾ bid, par ¼ offered, a trader said.

Pricing on the loan is Libor plus 275 bps with a 0.75% Libor floor, which is in line with existing term loan pricing, and it was issued at 991/2. The add-on, as well as the existing term loan, have 101 soft call protection for six months.

Recently, the loan was upsized from $300 million and the discount was modified from 99.

Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc. and J.P. Morgan Securities LLC are leading the deal that will be used to fund the company's loan origination and acquisition pipeline.

Starwood is a Greenwich, Conn.-based commercial real estate finance company.

Heartland incremental levels

Heartland Dental Care's $160 million incremental first-lien term loan B-1 (B1/B) due Dec. 21, 2018 broke at par 1/8 bid, par 5/8 offered, according to a trader.

Pricing on the loan is Libor plus 450 bps, after firming the other day at the wide end of the Libor plus 425 bps to 450 bps talk. There is a 1% Libor floor and 101 soft call protection for six months, and it was issued at an original issue discount of 991/2.

The company is also in the process of repricing its existing $397 million first-lien term loan B due Dec. 21, 2018 to Libor plus 450 bps with a 1% Libor floor from Libor plus 500 bps with a 1.25% Libor floor and will add 101 soft call protection for six months to the tranche.

The repricing, which was just added to the transaction on Monday, is being offered at par, and once effective on Dec. 23 will become fungible with, and added to, the incremental term loan B-1.

RBC Capital Markets LLC, BMO Capital Markets Corp. and Jefferies Finance LLC are leading the deal for the Effingham, Ill.-based provider of office support services to dental offices.

Proceeds from the incremental loan that will fund in early-to-mid December will be used to finance the acquisition of My Dentist Holdings LLC, an Oklahoma City-based dental support organization.

Continental Building trades

Continental Building's loans broke as well, with the $95 million add-on and existing first-lien covenant-light term loan (B2) due Aug. 28, 2020 quoted at 99½ bid, par offered and the $35 million add-on and existing second-lien covenant-light term loan (Caa2) due Feb. 26, 2021 quoted at par bid, 101 offered, a trader said.

Pricing on the add-on first-lien loan is Libor plus 375 bps with a 1% Libor floor and it was sold at an original issue discount of 991/2. There is 101 soft call protection for one year.

The add-on second-lien loan is priced at Libor plus 775 bps with a 1% Libor floor and was issued at 991/2, after tightening this week from 99. There is call protection of 102 in year one and 101 in year two.

With the add-ons, pricing on the existing first-lien term loan is moving up by 25 bps from Libor plus 350 bps and pricing on the existing second-lien loan is moving up by 25 bps from Libor plus 750 bps, so as to match the terms of the new debt.

The existing step-downs on the term loans will apply to the add-ons, and the debt is getting a new 25 bps step-down if ratings are upgraded to B2/B.

Credit Suisse Securities (USA) LLC and RBC Capital Markets are leading the $130 million of fungible new term loans that will be used by the drywall supplier to fund a dividend to shareholders.

OCI Beaumont above par

OCI Beaumont LLC's $165 million incremental term loan B-2 (B) due August 2019 freed up, with levels quoted at par ¼ bid, par ¾ offered, a trader said.

Pricing on the loan is Libor plus 500 bps with a 1.25% Libor floor, and the debt includes 101 soft call protection through August 2014, which is all in line with the existing term loan B-2. The add-on was sold at an original issue discount of 991/2.

Bank of America Merrill Lynch is leading the deal that will be used to repay intercompany loans.

OCI Beaumont is an ammonia and methanol production complex in Beaumont, Texas.

Santander frees to trade

Santander Asset Management's $1.2 billion equivalent seven-year covenant-light term loan B (Ba2/BB) began trading, with levels on the $675 million U.S. piece quoted at par bid, par ½ offered, according to a market source.

Pricing on the U.S. portion of the B loan is Libor plus 325 bps with a 1% Libor floor and it was sold at an original issue discount of 991/2. There is 101 soft call protection for six months.

Deutsche Bank Securities Inc., Barclays, Goldman Sachs Bank USA, J.P. Morgan Securities LLC and Morgan Stanley Senior Funding Inc. are the lead banks on the deal.

Proceeds will be used to help fund the acquisition of a 50% stake in the company by Warburg Pincus and General Atlantic. The remaining 50% will be owned by Grupo Santander.

Santander Asset Management is a Madrid-based asset manager.

Windstream starts trading

Windstream's $590 million 51/2-year term loan broke, with levels seen late day at par bid, par ½ offered, according to a market source.

Pricing on the loan is Libor plus 275 bps with a 0.75% Libor floor and it was sold at discount of 991/2. There is 101 soft call protection for six months.

During syndication, pricing on the loan came at the wide end of the Libor plus 250 bps to 275 bps talk and the discount finalized at the high end of the 99½ to 99¾ talk.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance an existing term loan B-3 due August 2019 that is priced at Libor plus 300 bps with a 1% Libor floor.

Windstream is a Little Rock, Ark.-based provider of advanced network communications, including cloud computing and managed services, to businesses.

General Nutrition tops OID

General Nutrition Centers moved the original issue discount on its $1.35 billion term loan B (B1/BB+) due March 2019 to 99 5/8 from 993/4, and then broke late day at 99¾ bid, par offered, according to sources.

Pricing on the loan is Libor plus 250 bps with a 0.75% Libor floor, and there is 101 soft call protection for six months.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance/reprice an existing term loan B that is priced at Libor plus 275 bps with a 1% Libor floor and for general corporate purposes.

General Nutrition is a Pittsburgh-based specialty retailer of health and wellness products.

Vantage Specialty breaks

Vantage Specialty Chemicals' $75 million add-on term loan B hit the secondary at par bid, par ½ offered on Tuesday, according to a trader.

Pricing on the loan is Libor plus 375 bps with a 1.25% Libor floor and it was sold at a discount of 99¾ after tightening from 991/2. There is 101 soft call protection for six months.

RBC Capital Markets is leading the deal that will be used to fund a dividend to shareholders.

Vantage is a Chicago-based specialty chemicals company.

Medical Specialties levels

Medical Specialties Distributors LLC allocated its credit facility on Monday, and levels on the $140 million six-year first-lien term loan surfaced on Tuesday morning at 99 bid, par offered, according to a trader.

Pricing on the term loan is Libor plus 550 bps, after flexing recently from Libor plus 450 bps. There is a 1% Libor floor and 101 soft call protection for one year, and the debt was issued at a discount of 99.

The company's $170 million credit facility (B3/B) also includes a $30 million revolver.

Credit Suisse Securities (USA) LLC and BNP Paribas Securities Corp. are leading the deal that will be used to help fund the buyout of the company by New Mountain Capital.

Medical Specialties is a Stoughton, Mass.-based distributor of home infusion equipment and supplies.

Dayco reworks loan

Moving to the primary, Dayco Products trimmed its term loan B to $375 million from $425 million, lifted pricing to Libor plus 425 bps from talk of Libor plus 350 bps to 375 bps, added a step-down to Libor plus 400 bps when total net leverage is 2.5 times, and extended the 101 soft call protection to one year from six months, according to a market source.

Furthermore, the maturity was shortened to six years from seven years, the MFN sunset was eliminated and the incremental allowance was lowered to $50 million from $75 million, the source said.

Recommitments were due at 4 p.m. ET on Tuesday.

Bank of America Merrill Lynch, J.P. Morgan Securities LLC and Credit Suisse Securities (USA) LLC are leading the deal that will refinance existing debt and fund a dividend.

Due to the term loan downsizing, the dividend amount was reduced, the source added.

Dayco Products is a Troy, Mich.-based manufacturer and distributor of belts, tensioners, hose, pulleys and hydraulics equipment for the automotive, trucking, construction, agricultural, ATV, snowmobile and industrial markets.

Nexstar firms offer price

Nexstar set the offer price on its roughly $350 million add-on term loan B-2 at par, the tight end of the 99¾ to par talk, according to a market source.

Pricing on the add-on is Libor plus 275 bps with a 1% Libor floor, in line with the existing term loan B-2, and there is 101 soft call protection through April 2014.

Bank of America Merrill Lynch, RBC Capital Markets LLC, Credit Suisse Securities (USA) LLC and Wells Fargo Securities LLC are leading the deal that will be used to repay term loan B borrowings.

Nexstar is an Irving, Texas-based diversified media company.

Bennu launches

Bennu Oil & Gas launched in the morning a $43 million fungible five-year second-lien tack-on term loan at Libor plus 900 bps with a 1.25% Libor floor, a par offer price and call protection of par for six months, then non-callable for one year, 102 for a year and 101 for a year, according to a market source.

The spread, floor and call protection on the tack-on loan match the existing second-lien term loan.

Commitments were due at 1 p.m. ET on Tuesday and terms firmed in line with talk shortly thereafter, the source remarked.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to repay certain net profit interests, the source said.

Bennu is an oil and gas exploration and production company in the Gulf of Mexico.

Answers coming soon

Answers will hold a bank meeting on Dec. 4 to launch a $295 million credit facility, according to a market source.

The facility consists of a $20 million revolver, a $175 million seven-year first-lien term loan B and a $100 million 71/2-year second-lien term loan, the source said.

Talk on the first-lien term loan is Libor plus 450 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and talk on the second-lien term loan is Libor plus 850 bps with a 1% Libor floor, a discount of 98½ and call protection of 102 in year one and 101 in year two, the source continued.

SunTrust Robinson Humphrey Inc. and Silicon Valley Bank are leading the deal that will be used to refinance existing debt and fund an acquisition.

Senior leverage is 2.5 times and total leverage is 3.9 times on a last quarter annualized basis, the source added.

Answers is a St. Louis-based wiki-based search engine company for consumers and provides subscription-based SAAS services to enterprise companies and retailers.

WTG joins calendar

WTG Holdings plans to host a bank meeting at 9 a.m. ET on Dec. 3 to launch a new credit facility, according to a market source.

The facility will include a revolver, a covenant-light first-lien term loan and a covenant-light second-lien term loan, the source said, adding that tranche sizes are not yet available.

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to fund the buyout of the company by AEA Investors LP from Siemens for about €640 million.

WTG is a provider of services for treating and processing municipal and industrial water and wastewater and related activities.

Open Text discloses timing

Open Text set a bank meeting for 9:30 a.m. ET on Dec. 3 to launch its previously announced $800 million seven-year senior secured term loan B, according to a market source.

While official talk is not yet available, company officials remarked in a call early this month that based on current ratings and the term loan B market, pricing on the new loan could be estimated in the area of Libor plus 225 bps to 250 bps, or all-in about 3% to 3¼%. And, filings with the Securities and Exchange Commission said that the loan would have 101 soft call protection for six months.

Barclays and RBC Capital Markets are leading the deal that will be used with $265 million of cash and $100 million of equity to fund the $1,165,000,000 acquisition of GXS Group Inc.

Closing is subject to customary regulatory approvals and conditions.

Open Text is an Ontario-based provider of enterprise information management software that helps companies manage, secure and leverage their unstructured business information. GXS is a Gaithersburg, Md.-based B2B integration services provider.

Salix sets meeting

Salix Pharmaceuticals scheduled a bank meeting for 1:30 p.m. ET on Dec. 3 to launch its $1.35 billion senior secured credit facility that consists of a $150 million five-year revolver and a $1.2 billion six-year covenant-light term loan, according to a market source.

Official talk is not yet out, but the company said in filings with the Securities and Exchange Commission that it expects the revolver at Libor plus 300 bps with a 50 bps unused fee and a 1% Libor floor, and the term loan at Libor plus 375 bps with a 1% floor and 101 soft call protection for six months.

Jefferies Finance LLC, Fifth Third Securities Inc., PNC Capital Markets LLC, SunTrust Robinson Humphrey Inc. and SMBC are leading the deal that will be used with about $800 million of cash on hand and an expected $750 million senior notes offering to fund the acquisition of Santarus Inc. for $32 per share, or about $2.6 billion.

Closing is targeted for the first quarter of 2014, subject to a minimum tender of at least a majority of the outstanding shares of Santarus common stock, the expiration or termination of the waiting period under the Hart Scott Rodino Antitrust Improvements Act and other customary conditions.

Salix is a Raleigh, N.C.-based developer and marketer of prescription pharmaceutical products and medical devices for the prevention and treatment of gastrointestinal diseases. Santarus is a San Diego-based specialty biopharmaceutical company.

Darling on deck

Darling International plans to hold a bank meeting on Dec. 4 in London and one on Dec. 5 in New York to launch its $1.2 billion seven-year term loan B that is expected to be split between a $600 million U.S. tranche and a $600 million euro equivalent tranche, according to sources.

The company said in recent filings with the Securities and Exchange Commission that it would also be getting a $1 billion revolver and a $350 million term loan A.

J.P. Morgan Securities LLC, BMO Capital Markets and Goldman Sachs Bank USA are leading the B loan, and JPMorgan and BMO are leading the revolver and term A.

Proceeds will be used to help fund the €1.6 billion acquisition of Vion Ingredients from Vion Holding N.V., for which the company has also received a commitment for a $1.3 billion senior unsecured bridge loan.

Closing is targeted for January 2014, subject to customary regulatory approvals and finalization of the required employee consultations in the Netherlands.

Darling is an Irving, Texas-based provider of rendering, recycling and recovery services to the food industry. Vion Ingredients is a Son en Breugel, the Netherlands-based developer and producer of specialty ingredients from animal origin.

Microsemi closes

In other news, Microsemi Corp. completed its acquisition of the Symmetricom Inc. for $7.18 per share, or about $230 million, a news release said.

For the transaction, Microsemi got a new $150 million term loan B-2 due Feb. 19, 2020 priced at Libor plus 275 bps with a 0.75% Libor floor and issued at par. There is 101 soft call protection for six months.

During syndication, the Libor floor was reduced from 1%, the offer price firmed at the tight end of the 99½ to par talk, the call protection was extended from a February 2014 expiration date, and the loan was separated so as not to be fungible with the company's existing term loan B that is priced at Libor plus 275 bps with a 1% Libor floor.

Morgan Stanley Senior Funding Inc. led the deal.

Microsemi is an Aliso Viejo, Calif.-based provider of semiconductor services. Symmetricom is a San Jose, Calif.-based company that generates, distributes and applies precise time for the communications, aerospace/defense, IT infrastructure and metrology industries.

Brand Energy wraps

The buyout of Brand Energy & Infrastructure Services Inc. by Clayton, Dubilier & Rice from First Reserve and merger with an infrastructure business that was bought from Harsco Corp. has closed, according to a news release.

For the transaction, Brand Energy got a new $1,575,000,000 senior secured deal (B1) consisting of a $300 million five-year revolver and a $1,275,000,000 seven-year covenant-light term loan B.

Pricing on the B loan is Libor plus 375 bps with a 1% Libor floor and it was sold at an original issue discount of 991/2. There is 101 soft call protection for six months.

During syndication, the term loan B was upsized from $1,225,000,000 as the company's bond offered was downsized to $500 million from $550 million, and pricing firmed at the wide end of the Libor plus 350 bps to 375 bps talk.

Morgan Stanley Senior Funding Inc., Citigroup Global Markets Inc., Goldman Sachs Bank USA, UBS Securities LLC, HSBC Bank USA, ING Capital LLC, Natixis, RBS Securities Inc., Societe Generale, and SunTrust Robinson Humphrey Inc. led the deal.

Brand Energy is an Atlanta-based provider of specialized industrial services to the energy and infrastructure sectors.

Internap completes deal

Internap Network Services Corp. closed on its $350 million senior secured credit facility (B3/B) that includes a $50 million five-year revolver and a $300 million six-year term loan B, according to an 8-K filed with the Securities and Exchange Commission.

Pricing on the B loan is Libor plus 500 bps, following a flex during syndication from talk of Libor plus 425 bps to 450 bps. The debt has a 1% Libor floor and 101 soft call protection for one year, and was issued at a discount of 99.

Jefferies Finance LLC and PNC Capital Markets LLC led the deal that was used to fund the roughly $145 million acquisition of iWeb, to refinance existing debt, and for working capital and general corporate purposes.

Internap is an Atlanta-based provider of IT infrastructure services. iWeb is a Montreal-based hosting and cloud provider.

© 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.