Amscan, MLM break; Bresnan Communications, Six Flags revise deals; Cenveo reveals loan size

By Sara Rosenberg

New York, Nov. 30 - Amscan Holdings Inc.'s term loan allocated and freed up for trading on Tuesday, with levels quoted above its original issue discount price, and MLM Information Services LLC freed up as well.

Over in the primary market, Bresnan Communications reduced the spread and discount on its oversubscribed term loan, and Six Flags Entertainment Corp. increased the pricing and discount on its term loan in order to entice investors on board.

Also, Cenveo Inc. firmed up the size of its term loan B, and Hyland Software and UTEX Industries Inc. released price talk on their credit facilities as all three deals are preparing for their Wednesday launches.

Furthermore, CNO Financial Group Inc., Harbor Freight Tools, MDA Info Products and Language Line Services emerged with plans for new loans.

And, Swift Holdings Corp., Novelis Inc., HDT Global, Flexera Software Inc., Earthbound Farm and Decision Resources Inc. came out with price talk on their new bank deals as the transactions were presented to lenders during the session.

Amscan frees up

Amscan's $675 million seven-year senior secured covenant-light term loan (B2/B) started trading in the afternoon, with levels quoted at 99½ bid, par offered on the open and then moving up to 99¾ bid, par ¼ offered, according to sources.

Pricing on the term loan is Libor plus 525 basis points with a 1.5% Libor floor, and it was sold at an original issue discount of 99. There is 101 soft call protection for one year.

During syndication, pricing was increased from talk of Libor plus 450 bps to 475 bps and the call protection was added.

Credit Suisse and Goldman Sachs are the joint lead arrangers on the deal, and they are bookrunners with Wells Fargo, Deutsche Bank and Barclays.

Amscan funding dividend recap

Proceeds from Amscan's term loan will be used to refinance an existing senior secured term loan due in 2013 and to fund a cash dividend of about $310 million.

In connection with the transaction, the company is amending its existing senior secured revolving credit facility to allow for the new debt.

Amscan is an Elmsford, N.Y.-based designer, manufacturer and distributor of decorated party goods and party accessories.

MLM breaks

MLM Information Services' credit facility also hit the secondary market, with the $150 million six-year term loan quoted at 99 bid, 99½ offered, according to a trader.

Pricing on the term loan is Libor plus 525 bps with a 1.75% Libor floor, and it was sold at an original issue discount of 981/2.

The company's $165 million credit facility (B2/B+) also includes a $15 million five-year revolver.

Credit Suisse and Morgan Stanley are the lead banks on the deal that will be used for a dividend recapitalization.

MLM Information Services is a New York-based provider of corporate tax software products.

Bresnan reworks pricing

Moving to the primary, Bresnan Communications made some changes to its $765 million term loan, including lowering pricing and the discount and adding 101 soft call protection for one year, according to a market source.

Pricing on the term loan is now Libor plus 300 bps, down from Libor plus 350 bps, and the original issue discount is now 99 versus 98½ previously, the source said, adding that the 1.5% Libor floor was left intact.

The $840 million credit facility (Ba3/BB+) also includes a $75 million revolver.

Citigroup, Bank of America, Barclays, Credit Suisse and UBS are the lead banks on the deal and asked for recommitments by 5 p.m. ET on Wednesday.

Bresnan being acquired

Proceeds from Bresnan's credit facility, $250 million of senior unsecured notes and an equity investment of less than $400 million, will be used to help fund the acquisition of the company by Cablevision Systems Corp. in a transaction valued at $1.365 billion.

The debt financing will be obtained by a newly formed, unrestricted subsidiary of the Cablevision so that it is non-recourse to Cablevision or its CSC subsidiary.

Closing on the acquisition is expected to occur by year-end.

Bresnan is a Purchase, N.Y.-based broadband telecommunications company. Cablevision is a Bethpage, N.Y.-based telecommunications, media and entertainment company.

Six Flags flexes

Also making revisions on Tuesday was Six Flags, as it increased pricing on its $950 million incremental first-lien term loan (B1) to Libor plus 400 bps from talk of Libor plus 350 bps to 375 bps, , according to a market source.

Additionally, a step-down was added to the term loan to Libor plus 375 bps at Ba3/BB- corporate ratings or 3.0 times senior secured leverage.

Furthermore, the original issue discount for new money commitments widened to 99½ from 993/4, but the 1.5% Libor floor and 101 soft call protection for one year were left unchanged, the source continued.

JPMorgan is the lead bank on the deal.

Six Flags refinancing debt

Proceeds from Six Flags' new term loan will be used to repay the company's first- and second-lien term loans.

Upon emergence from bankruptcy protection, the company got a $770 million first-lien term loan priced at Libor plus 400 bps with a 2% Libor floor, and a $250 million second-lien term loan priced at Libor plus 725 bps with a 2% Libor floor that has hard call protection of 103 in year one, 102 in year two and 101 in year three.

The exit facility also included a $120 million revolver priced at Libor plus 425 bps with a 2% Libor floor,

Six Flags is a Dallas-based regional theme park company.

Cenveo sets size

Cenveo's proposed term loan B will be launching on Wednesday with a size of $375 million, a market source told Prospect News, while its revolver will come as expected at $150 million.

Previously, the term loan B was being described as being about $350 million.

Price talk on the $525 million credit facility is expected to be announced at launch, the source added.

Bank of America is the left lead bank on the deal that will be used to refinance existing debt.

Cenveo is a Stamford, Conn.-based manager and distributor of print and related products and services.

Hyland floats talk

Hyland Software began disclosing price talk of Libor plus 525 bps with a 1.75% Libor floor and an original issue discount of 98 on its proposed $225 million credit facility (B2), which is scheduled to launch with a bank meeting on Wednesday, according to a market source.

The facility consists of a $20 million revolver and a $205 million term loan, the source said.

Credit Suisse and RBC are the lead banks on the deal that will be used to refinance existing debt and fund a dividend.

Hyland Software is a Westlake, Ohio-based enterprise content management software vendor.

UTEX circulates guidance

UTEX Industries came out with talk of Libor plus 550 bps with a 1.5% Libor floor and an original issue discount of 98½ on its $190 million credit facility ahead of its Wednesday bank meeting, according to a market source.

The facility consists of a $20 million revolver, a $140 million term loan and a $30 million delayed-draw term loan.

Societe Generale is the lead bank on the deal that will be used to help fund the buyout of the company by Rhone Capital LLC from Audax Private Equity.

UTEX Industries is a Houston-based designer and manufacturer of sealing products.

CNO readies loan

CNO Financial Group has set a bank meeting for Thursday to launch a proposed $325 million senior secured term loan due September 2016 that is being led by Morgan Stanley and Barclays, according to a market source.

Proceeds from the term loan, senior secured notes and cash on hand will be used to refinance an existing $652.1 million senior secured term loan due in October 2013.

The goal of the refinancing is to gain extra financial flexibility by extending nearer term maturities so that there are no material maturities until 2016, the company said in a news release.

CNO is a Carmel, Ind.-based holding company for insurance companies - principally Bankers Life and Casualty Co., Colonial Penn Life Insurance Co. and Washington National Insurance Co.

Harbor Freight deal

Harbor Freight Tools surfaced with plans to launch a $775 million credit facility with a bank meeting on Thursday, according to a market source.

The facility consists of a $25 million revolver and a $750 million term loan, the source said.

Barclays is the lead bank on the deal that will be used to refinance an existing term loan and fund a distribution to shareholders.

Leverage will be in the mid-2s, the source added.

Harbor Freight Tools is a Camarillo, Calif.-based tool and equipment catalog retailer.

MDA Info launching soon

MDA Info Products has scheduled a bank meeting for Thursday to launch a proposed $400 million credit facility, comprised of a $50 million revolver and a $350 million term loan, according to a market source.

Bank of America, RBC and BMO are the lead banks on the deal that will be used to help fund TPG Capital's acquisition of the company from MacDonald, Dettwiler and Associates Ltd. for about $850 million.

The transaction is expected to close early next year, subject to the customary regulatory and other approvals.

MDA Info is a provider of property information to insurance companies, lenders and legal professionals.

Language Line coming Friday

Language Line Services is set to hold a bank meeting on Friday to launch a proposed $575 million first-lien credit facility, comprised of a $50 million revolver and a $525 million term loan, according to a market source.

Price talk on the first-lien term loan is Libor plus 450 bps with a 1.75% Libor floor and an original issue discount of 99. There is soft call protection of 102 in year one and 101 in year two.

The company will also be getting a $175 million second-lien term loan.

Bank of America, Credit Suisse and Morgan Stanley are the lead banks on the deal, with Bank of America the left lead on the first-lien loan and Credit Suisse the left lead on the second-lien.

Language Line second attempt

In October, Language Line had launched a $250 million second-lien term loan that was contingent on the amendment of the company's first-lien credit facility. However, that amendment failed, forcing the second-lien out of market.

Price talk on that second-lien loan had been Libor plus 900 bps with a 1.75% Libor floor and an original issue discount of 98. The loan included call protection of 103 in year one, 102 in year two and 101 in year three.

Proceeds from the new first- and second-lien credit facility will be used to refinance existing debt, to redeem preferred stock and to fund a dividend.

Language Line is a Monterey, Calif.-based provider of telephone interpreting and language services.

Swift guidance emerges

In more primary happenings, Swift Holdings held a bank meeting on Tuesday to launch its proposed credit facility, and in connection with the event, price talk was announced, according to a market source.

The $1.05 billion six-year term loan was presented with talk of Libor plus 450 bps to 475 bps with a 1.5% Libor floor and an original issue discount of 98½ to 99, the source said, adding that there is 101 soft call protection for one year.

Swift's $1.45 billion senior secured credit facility also includes a $400 million five-year revolver.

The facility is being obtained in conjunction with the company's initial public offering of common stock.

Swift adds leads

Bank of America, Morgan Stanley, Wells Fargo, PNC and Citigroup are the joint lead arrangers and bookrunners on Swift's credit facility, with Bank of America the administrative agent.

When lead banks on the deal were first disclosed by the company, only Bank of America, Morgan Stanley and Wells Fargo were listed. PNC and Citi joined the group later on.

Proceeds from the facility, along with $490 million secured notes and stock proceeds, will be used to refinance the company's existing bank debt, senior secured floating-rate notes and senior secured fixed-rate notes.

Closing on the new credit facility is conditioned on completion of the IPO.

Swift is a Phoenix, Ariz.-based transportation services company and truckload carrier.

Novelis sets talk

Novelis launched its $1.5 billion senior secured six-year term loan B on Tuesday with price talk of Libor plus 400 bps to 425 bps with a 1.5% Libor floor and an original issue discount of 98½ to 99, and 101 soft call protection for one year, according to a market source.

Bank of America, Citigroup, JPMorgan, RBS and UBS are the lead banks on the deal.

Proceeds from the term loan B, along with $2.5 billion of senior notes, will be used to refinance an existing $1.125 billion term loan, to fund a tender offer for $1.124 billion of 7¼% senior notes and $185 million of 11½% senior notes, and to fund a $1.7 billion distribution to Novelis' parent company.

The tender offer expires on Dec. 28.

Novelis seeks ABL

In addition to the term loan B, Novelis plans on getting a new $800 million asset-based loan to replace its existing $800 million facility.

The new asset-based facility is expected to have similar terms and conditions as the existing deal, the company said in a news release.

Completion of the recapitalization is conditioned on the company raising at least $4 billion from one or more offerings of senior notes and the entry into the new credit facility.

Novelis is an Atlanta-based aluminum rolled products and beverage can recycling company.

HDT pricing

HDT Global also held a bank meeting and released pricing, with its $300 million six-year term loan B talked at Libor plus 475 bps with a 1.5% Libor floor and an original issue discount of 99, according to a market source.

JPMorgan is the lead bank on the deal that will be used to refinance existing debt and to fund a dividend payment.

HDT Global is a Solon, Ohio-based manufacturer of deployable, expeditionary systems and high-performance aerial delivery systems for the U.S. Military, Allied Forces, Homeland Security and Emergency Management agencies.

Flexera discloses spread

Flexera Software came out with price talk of Libor plus 525 bps with a 1.75% Libor floor and an original issue discount of 98 on its $200 million term loan B in conjunction with its morning bank meeting, according to a market source.

Barclays and RBC are the lead banks on the $215 million credit facility (BB-), which also includes a $15 million revolver.

Price talk on the revolver is also Libor plus 525 bps with a 1.75% Libor floor. The tranche isn't really being sold, the source added.

Proceeds will be used to refinance existing debt and fund a dividend payment.

Flexera is a Schaumburg, Ill.-based provider of software that helps simplify the business relationship between software producers and enterprises.

Earthbound announces guidance

Continuing on the price talk theme, Earthbound Farm is shopping its $225 million six-year term loan B at Libor plus 500 bps to 525 bps with a 1.75% Libor floor and an original issue discount of 98 to 981/2, according to a market source.

The term loan B, along with a $25 million five-year revolver, was launched to lenders on Tuesday via lead bank RBC.

Proceeds from the $250 million credit facility (B1) will be used to refinance existing debt and fund a dividend payment.

Earthbound Farm is a San Juan Bautista, Calif.-based organic food company.

Decision Resources talk

Decision Resources launched its credit facility on Tuesday as well, and released talk on its first- and second-lien term loans.

The $170 million first-lien term loan is being talked at Libor plus 500 bps with a 1.5% Libor floor and an original issue discount of 99, while the $50 million second-lien term loan is being talked at Libor plus 900 bps with a 1.5% Libor floor and a discount of 98, the source said.

The company's $245 million credit facility also includes a $25 million revolver.

GE Capital and Credit Suisse are the lead banks on the deal that will be used to refinance existing debt and fund a dividend.

Decision Resources is a Burlington, Mass.-based research and advisory firm focused on health care insights and analysis.

ClubCorp closes

In other news, ClubCorp closed on its $360 million credit facility (Ba2/BB), comprised of a $50 million five-year revolver and a $310 million six-year term loan, according to a news release.

Pricing on the term loan is Libor plus 450 bps with a 1.5% Libor floor, and it was sold at an original issue discount of 99. Also, there is 101 soft call protection for one year.

During syndication, pricing firmed from talk of Libor plus 425 bps to 450 bps talk.

Citigroup acted as the lead bank on the deal that was used to repay existing debt.

ClubCorp is a Dallas-based owner and operator of golf courses, country clubs, private business and sports clubs, and resorts.

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