Caesars, Penton, Mitchell, Safe Fleet break; Acosta flexes; Paradigm reveals talk

By Sara Rosenberg

New York, Oct. 1 - Caesars Entertainment Resort Properties LLC's credit facility made its way into the secondary market on Tuesday, and Penton Media Inc., Mitchell International Inc. and Safe Fleet Acquisition Corp. began trading, too.

Over in the primary, Acosta Sales & Marketing raised the coupon on its repricing proposal, and Paradigm Precision Group came out with price talk as its deal was presented to lenders during the session.

Caesars tops OID

Caesars' credit facility broke for trading on Tuesday with the $2.5 billion seven-year first-lien term loan quoted at 98¼ bid, 98½ offered on the open and then it moved to 98 3/8 bid, 98 5/8 offered, according to a market source.

Pricing on the term loan is Libor plus 600 basis points with a 1% Libor floor and it was sold at an original issue discount of 98. The debt is non-callable for one year, then at 102 in year two and 101 in year three.

During syndication, the term loan size firmed at the wide end of revised talk of $2 billion to $2.5 billion and down from initial talk of $3 billion, the spread was increased from Libor plus 550 bps and the discount was revised from 99.

The company's $2,769,500,000 senior secured credit facility also includes a $269.5 million five-year revolver.

Caesars lead banks

Citigroup Global Markets Inc., Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Goldman Sachs Bank USA, Macquarie Capital, Morgan Stanley Senior Funding Inc. and UBS Securities LLC are the lead banks on Caesars' credit facility.

Proceeds will be used to help refinance about $4.4 billion of CMBS debt and the $450 million senior secured credit facility entered into by Octavius Linq Holding Co. LLC, an indirect subsidiary of Caesars.

Other funds for the refinancing will come from $200 million of proceeds from an offering of common stock from Caesars Entertainment Corp. that was increased from $100 million, and $2.15 billion of notes that was upsized from $1.85 billion.

Closing is expected to occur on Oct. 11.

Caesars is a Las Vegas-based diversified casino-entertainment company.

Penton starts trading

Penton Media's credit facility also freed up, with the $460 million six-year first-lien term loan (B1/B+) quoted at 99½ bid, par ¼ offered and the $205 million seven-year second-lien term loan (Caa2/CCC+) quoted at 99½ bid, par ½ offered, a market source said.

Pricing on the first-lien term loan is Libor plus 425 bps with a 1.25% Libor floor and it was sold at an original issue discount of 99. The loan has 101 soft call protection for one year.

The second-lien term loan is priced at Libor plus 775 bps with a 1.25% floor and was sold at a discount of 981/2. This tranche has call protection of 103 in year one, 102 in year two and 101 in year three.

Earlier in the week, the first-lien term loan was downsized from $520 million and the second-lien term loan was upsized from $150 million.

The company's $715 million facility also includes a $50 million five-year revolver (B1/B+).

Credit Suisse Securities (USA) LLC, GE Capital Markets, Bank of America Merrill Lynch and Macquarie Capital are leading the deal that will be used to refinance existing debt.

Penton is a New York-base tradeshow and professional information services company.

Mitchell frees up

Mitchell International's credit facility allocated and hit the secondary as well, with the $490 million seven-year covenant-light first-lien term loan (B1/B) quoted at par bid, par ½ offered, according to a trader.

Pricing on the first-lien term loan is Libor plus 350 bps with a 1% Libor floor and it was sold at a discount of 991/2. There is 101 soft call protection for six months.

The company's $785 million credit facility also includes a $50 million five-year revolver and a $245 million eight-year covenant-light second-lien term loan (Caa2/CCC).

The second-lien loan is priced at Libor plus 750 bps with a 1% Libor floor and was sold at 99. This tranche has call protection of 102 in year one and 101 in year two.

Recently, pricing on the first-lien term loan was lowered from talk of Libor plus 375 bps to 400 bps and the discount was tightened from 99, and pricing on the second-lien loan was cut from talk of Libor plus 775 bps to 800 bps.

Mitchell being acquired

Proceeds from Mitchell's credit facility will be used to help fund its buyout by KKR from Aurora Capital Group.

Bank of America Merrill Lynch, Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc., Mizuho Securities USA Inc., KKR Capital Markets, RBC Capital Markets LLC and SMBC are leading the deal, with Bank of America the left lead on the first-lien debt and Goldman the left lead on the second-lien debt.

Closing is expected in the fourth quarter, subject to customary conditions including regulatory approval.

Mitchell is a San Diego-based provider of technology, connectivity and information services to the property & casualty claims and collision repair industries.

Safe Fleet hits secondary

Safe Fleet's credit facility was another deal to begin trading, with the $122 million six-year first-lien term loan seen at 99 7/8 bid, par 7/8 offered, a trader said.

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

During syndication, the spread on the term loan was cut from talk of Libor plus 400 bps to 425 bps and the Libor floor was trimmed from 1.25%.

In addition to the first-lien term loan, the company is getting a $30 million five-year revolver and a $48 million seven-year second-lien term loan that is being held by Oaktree Capital.

BNP Paribas Securities Corp. is leading the deal that will help fund the acquisitions of ROM Corp. and Specialty Manufacturing Inc.

Safe Fleet is a provider of safety-oriented components to the emergency vehicle, truck and trailer, utility vehicle, school bus and transit bus end markets.

BWIC announced

Also in the secondary, an $80 million Bid-Wanted-In-Competition emerged, with bids from market players at 11 a.m. ET on Thursday, according to a trader.

Some of the names included in the portfolio are Aramark Corp., BJ's Wholesale Club Inc., Federal-Mogul Corp., Golden Nugget Inc., Penn National Gaming Inc., Securus Technologies Holdings Inc. and Warner Chilcott Corp.

There are about 68 issuers in the portfolio, the trader added.

Acosta lifts pricing

Moving to the primary, Acosta increased pricing on its term loan B to Libor plus 325 bps from talk of Libor plus 300 bps, according to a market source.

As initially proposed, the loan has a 1% Libor floor and a par offer price.

Proceeds will be used to reprice an existing term loan B from Libor plus 350 bps with a 1.5% Libor floor.

Goldman Sachs Bank USA is leading the deal.

Acosta is a Jacksonville, Fla.-based full-service sales and marketing agency in the consumer packaged goods industry.

Paradigm sets talk

Paradigm Precision Group released talk in the Libor plus 400 bps area with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months on its $260 million term loan B that launched with a bank meeting in the morning, according to a market source.

The company's $330 million credit facility (B2/B) also includes a $70 million revolver.

Commitments are due on Oct. 15, the source remarked.

RBC Capital Markets, Deutsche Bank Securities Inc., SMBC and SunTrust Robinson Humphrey Inc. are leading the deal that will help fund the acquisition of eight aerospace component fabrication and machining facilities from Unison Engine Components, a subsidiary of GE Aviation.

Closing is expected by year's end.

Paradigm Precision is a Stuart, Fla.-based manufacturer of complex components. It specializes in the combustion section of turbine engines used in commercial and military aviation as well as industrial gas turbine applications.

Pinnacle Foods closes

In other news, Pinnacle Foods completed its $525 million incremental term loan H (Ba3/BB-) that is priced at Libor plus 250 bps with a 0.75% Libor floor, a news release said. The loan has a step-down to Libor plus 225 bps if total net leverage is less than 4.25 times and was issued at a discount of 98 3/8, after tightening during syndication from talk of 97½ to 98.

Bank of America Merrill Lynch, Barclays, UBS Securities LLC, Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc. and Macquarie Capital led the deal.

Proceeds, along with cash on hand, were used to fund the $575 million acquisition of the Wish-Bone salad dressings business from Unilever plc.

Pinnacle Foods is a Parsippany, N.J.-based manufacturer and distributor of branded packaged foods.

CPG buyout wraps

The purchase of CPG International Inc. by Ares Management LLC and Ontario Teachers' Pension Plan from AEA Investors LP has closed, according to a news release.

For the transaction, CPG got a new $750 million credit facility that includes a $125 million five-year ABL revolver and a $625 million seven-year covenant-light term loan B (B2/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, pricing on the term B was reduced from Libor plus 400 bps, the discount was tightened from 99 and the 18-month MFN sunset provision was removed.

Barclays, J.P. Morgan Securities LLC, Deutsche Bank Securities Inc., RBS Capital Markets and UBS Securities LLC led the deal.

Senior secured leverage is 4.5 times, and total leverage is 6.7 times.

CPG is a Scranton, Pa.-based manufacturer of highly engineered low-maintenance building materials.

Pitney Bowes deal completed

Apollo Global Management LLC closed on its $400 million buyout of Pitney Bowes Management Services, a provider of mail and print outsourcing services, from Pitney Bowes Inc., a news release said.

Funding for the transaction came from a $365 million facility that consists of a $50 million five-year revolver (B1/BB-), a $215 million six-year first-lien term loan (B1/BB-) and a $100 million seven-year second-lien term loan (Caa1/B-).

The first-lien term loan is priced at Libor plus 625 bps with a 1.25% Libor floor and was sold at an original issue discount of 99. There is 101 soft call protection for one year.

Pricing on the second-lien term loan is Libor plus 1,050 bps with a 1.25% Libor floor and it was sold at 98. This tranche has call protection of 103 in year one, 102 in year two and 101 in year three.

During syndication, the spread on the first-lien loan was lifted from talk of Libor plus 550 bps to 575 bps and amortization was changed to 1% in year one, 2.5% in year two and 5% thereafter, from 1% in year one and 2.5% thereafter. Also, pricing on the second-lien loan was increased from talk of Libor plus 950 bps to 975 bps.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and UBS Securities LLC led the deal.

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