Open Link breaks; Sealed Air inches up; Sequa moves deadline; Fundtech guidance emerges

By Sara Rosenberg

New York, Oct. 26 - Open Link Financial Inc.'s credit facility began trading on Wednesday, with the term loan quoted above its original issue discount price, and Sealed Air Corp.'s term loan was a touch better as earnings were released and the market in general felt strong.

Over in the primary, Sequa Corp. accelerated the commitment deadline on its term loan due to overwhelming demand, and Fundtech Ltd. came out with price talk on its in market loan.

Also, Milk Specialties Global emerged with new deal plans as well as some early unofficial guidance, E.W. Scripps Co. nailed down timing on the launch of its credit facility, and Unifrax I LLC is getting ready to bring a buyout deal to market.

Open Link frees up

Open Link Financial's credit facility made its way into the secondary market on Wednesday, with the $340 million term loan quoted at 99 bid, according to a trader.

Pricing on the term loan is Libor plus 625 basis points with a 1.5% Libor floor, and it was sold at an original issue discount of 98. There is 101 soft call protection for one year.

During syndication, the term loan was upsized from $325 million as the company's mezzanine financing was downsized to $175 million from $190 million, pricing was lowered from Libor plus 650 bps and the discount tightened from talk of 96 to 97.

The company's $390 million credit facility (B2/B+) also provides for a $50 million revolver.

Open Link lead banks

Credit Suisse Securities (USA) LLC and Wells Fargo Securities LLC are the joint lead arrangers on Open Link's credit facility.

Proceeds from the facility, along with the mezzanine debt, will be used to fund the buyout of the company by Hellman & Friedman from the Carlyle Group.

Closing on the transaction is expected in the fourth quarter, subject to standard conditions.

Open Link is a Uniondale, N.Y.-based provider of cross-asset trading, risk management and operations processing software services.

Sealed Air rises

Sealed Air's term loan was a bit stronger in trading with the release of earnings. Traders, however, said that the debt was probably helped primarily by the overall positive bias in the secondary.

One trader quoted the loan at par ¾ bid, 101½ offered, versus par ½ bid, 101½ offered on Tuesday, and a second trader quoted it at par 7/8 bid, 101 3/8 offered, up from par ¾ bid, 101¼ offered.

For the third quarter, Sealed Air reported net earnings of $73.7 million, or $0.41 per diluted share, compared to net earnings of $76.5 million, or $0.43 per diluted share, in the prior year.

Net sales for the quarter were $1.247 billion, up 10% from $1.13 billion in the 2010 quarter.

And, adjusted EBITDA was $196 million, compared with $192 million in last year's quarter.

Also, the company updated its full-year earnings per share guidance to a range of $1.70 to $1.75 versus prior guidance of $1.75 to $1.85 to account for the "slowing pace of economic growth seen mid-third quarter and expected through year end," the earnings release said.

Sealed Air plans deleveraging

With the release of quarterly results, Sealed Air talked about its fourth-quarter goals, including the expectation to generate free cash flow and earmarking those funds for debt paydowns.

"Through careful management of expenses and ongoing productivity and working capital improvements, we expect solid free cash flow generation through year end, further reinforcing our ample liquidity position," William V. Hickey, president and chief executive officer, said in the release.

"We remain committed to rapidly reducing debt levels and expect to allocate substantially all remaining free cash flow to prepay our debt while maintaining our dividend, which will improve our earnings performance over time. When we achieve a net debt level below our target of $4.5 billion, we anticipate returning a portion of free cash flow to shareholders in the form of a higher dividend or through share repurchases," Hickey added.

Sealed Air is an Elmwood Park, N.J.-based food safety and security, facility hygiene and product protection company.

Sequa shutting early

Switching to the primary market, Sequa moved up the commitment deadline on its $200 million incremental senior secured term loan (B1/B-) to Thursday at 5 p.m. ET from Nov. 1 as the deal was oversubscribed quickly after launching this past Tuesday morning, according to a source.

Price talk on the loan is Libor plus 500 bps to 525 bps with a 1.5% Libor floor and an original issue discount of 98½ to 99, and there is 101 soft call protection for one year.

Barclays Capital Inc. and Credit Suisse Securities (USA) LLC are leading the deal that will be used, along with cash on hand, to fund the $245 million acquisition of Roll Coater Inc.

Sequa is a New York-based diversified aerospace and industrial company. Roll Coater is an Indianapolis-based coil coating company.

Fundtech reveals talk

Fundtech disclosed guidance on its $200 million six-year term loan on Wednesday, a day after the official bank meeting launch, with talk coming out at Libor plus 600 bps with a 1.5% Libor floor, an original issue discount in the 97 area and 101 soft call protection for one year, according to a market source.

RBC Capital Markets LLC and BMO Capital Markets Corp. are the joint lead arrangers and bookrunners on the deal and are seeking commitments by Nov. 8.

The company's $225 million senior secured credit facility (B+) also includes a $25 million five-year revolver.

Proceeds will be used to help fund the buyout of the company by GTCR for $23.33 in cash per ordinary share and merger with GTCR's existing portfolio company, BankServ.

In connection with the transaction, BankServ's debt will be refinanced.

Fundtech plans mez debt

In addition to the credit facility, Fundtech will get $50 million of eight-year senior subordinated mezzanine financing from Newstone Capital Partners to help fund its buyout.

Also, $175 million of equity will be used, and when combined with BankServ, there will be close to $350 million of total equity.

Senior leverage is around 4.0 times and total leverage is just above 5.0 times.

Closing is expected in the fourth quarter, subject to satisfaction of certain conditions. Shareholder approval has already been obtained.

Fundtech is a provider of software services that facilitate payments processing, financial messaging and cash management for financial institutions, and BankServ is a Las Vegas-based software-as-a-service provider of financial services and banking technology. The combined company, Fundtech Inc., would be based in Jersey City, N.J.

Milk Specialties readies deal

Milk Specialties surfaced with plans to hold a bank meeting on Tuesday to launch a proposed $230 million credit facility and started floating some early price talk on the deal, according to a market source.

The $145 million first-lien term loan is being unofficially guided in the area of Libor plus 650 bps with a 1.5% Libor floor and an original issue discount of 97, while the $60 million second-lien term loan is being unofficially guided in the area of Libor plus 1,050 bps with a 1.5% floor and a discount of 96, the source remarked.

Also included in the facility is a $25 million revolver.

First-lien leverage is 3.7 times and leverage through the second-lien is 5.2 times.

RBC Capital Markets LLC is the lead bank on the deal that will be used to help fund the buyout of the Carpentersville, Ill.-based manufacturer of nutrition products by HM Capital from Stonehenge Partners Inc.

E.W. Scripps firms launch

E.W. Scripps zeroed in on timing for its $312 million five-year credit facility, setting a bank meeting for Nov. 3, according to a market source. Previously, the deal was simply labeled as early-November business.

The facility consists of a $100 million revolver and a $212 million term loan, with both tranches talked at Libor plus 400 bps.

SunTrust Robinson Humphrey Inc. is leading the deal that will be used to fund the acquisition of nine stations from McGraw-Hill Broadcasting for $212 million in cash, and closing is expected in the first half of 2012, subject to regulatory approvals and customary conditions.

E.W. Scripps is a Cincinnati-based media enterprise with interests in television stations and newspapers.

Unifrax coming soon

Unifrax is planning a bank meeting on Nov. 3 to launch a proposed $540 million credit facility that will be used to help fund its buyout by American Securities, according to a market source.

Goldman Sachs & Co., Wells Fargo Securities LLC, GE Capital Markets and KeyBanc Capital Markets LLC are the lead banks on the deal that is comprised of a $50 million five-year revolver and a $490 million seven-year term loan B, the source said.

Senior net leverage is around 4.0 times.

Unifrax is a Niagara Falls, N.Y.-based supplier of high-temperature insulation products.

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