Entercom, NXP start trading; SuperMedia slides with buyback news; Unifrax tweaks tranching

By Sara Rosenberg

New York, Nov. 17 - Entercom Communications Corp. came out with one last change to its oversubscribed term loan, an upsizing on the back of a downsizing to its bond offering, and then proceeded to free the deal up for trading.

Also on the trading front, NXP Semiconductors NV's term loan A-2 broke above its original issue discount price, and SuperMedia Inc.'s term loan headed lower after the company launched a tender offer for the debt.

Back over in the primary, Unifrax I LLC came out with a second round of changes to its credit facility, this time increasing the size of the recently added euro term loan B tranche and minimally reducing the size of the U.S. piece.

Additionally, MoneyGram International Inc. released original issue discount guidance on its term loan B-1 as it was presented to lenders during the session, and Total Safety came to market with a small incremental term loan.

Entercom upsizes, breaks

Entercom revised the size of its seven-year term loan to $375 million from $345 million and then, on Thursday afternoon, the loan began trading with levels seen at 99¼ bid, par ¼ offered on the open and 99½ bid, par ½ offered shortly thereafter, according to a trader.

Pricing on the term loan is Libor plus 500 basis points with a step down to Libor plus 475 bps at less than 5.0 times leverage and a 1.25% Libor floor. It was sold at an original issue discount of 98 and has 101 soft call protection for one year.

Earlier this week, the term loan was revised to include the pricing step down and the discount moved from 97.

The company's now $425 million senior secured credit facility (Ba3/BB-), up from $395 million, also includes a $50 million five-year revolver.

Entercom trims notes

As a result of the term loan upsizing, Entercom decided to reduce its senior notes to $220 million from $250 million, a market source remarked.

Proceeds from the credit facility and notes will be used to refinance existing debt and for general corporate purposes.

Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC and Morgan Stanley & Co. LLC are the lead banks on the credit facility.

Entercom is a Bala Cynwyd, Pa.-based radio broadcasting company.

NXP tops OID

NXP Semiconductors' $500 million senior secured covenant-light term loan A-2 due 2017 also emerged in the secondary market, with levels quoted at 96¼ bid, 97 offered, according to a trader.

Pricing on the loan is Libor plus 425 bps with a 1.25% Libor floor, and it was sold at an original issue discount of 96, the tight end of initial guidance of 95 to 96. The tranche is non-callable until March 2013, followed by one year of protection at 102 and another year of protection at 101.

Barclays Capital Inc. and Credit Suisse Securities (USA) LLC are the joint bookrunners on the deal that will be used to refinance a portion of the company's existing secured floating-rate notes.

The borrowers of the new term loan will be NXP BV and NXP Funding LLC.

NXP amendment passes

With the term loan A-2, the company asked lenders to amend its existing term loan A-1 to allow for the new loan under the existing credit agreement, and this amendment was approved, a source told Prospect News.

The term loan A-1 was obtained in March at Libor plus 325 bps with a 1.25% Libor floor and an original issue discount of 991/2. Other than pricing, terms on the A-1 match those on the new A-2.

Completion of the amendment needed 51% approval.

On Thursday, the term loan A-1 was quoted at 94 bid, 95 offered in the secondary market, unchanged from Wednesday's levels, a trader added.

NXP is an Eindhoven, Netherlands-based provider of mixed-signal products and semiconductor components.

SuperMedia softens

Also in trading, SuperMedia's term loan dropped to 46 bid, 48 offered from 48 bid, 49 offered as the company launched a tender offer for some of the debt at a price in the range of 43 to 46, according to a trader.

The buyback has a cash offer size of $117 million and expires at 3 p.m. ET on Monday.

The company was able to launch the offer as a result of a recent amendment to its credit facility that permits the repurchase of the term loan debt at a discount using up to $122.5 million of cash until Jan. 1, 2014.

SuperMedia is a Dallas-based directory publisher.

Unifrax revises structure

Moving back to new issues, Unifrax again modified tranching on its credit facility, upsizing the euro term loan B to €95 million from €75 million and downsizing the its U.S. term loan B to $385 million from $390 million, according to a market source.

As a result, the total seven-year term loan B amount was lifted to around $510 million from $490 million, and the company will be getting less equity for its buyout by American Securities.

Pricing on the euro term loan B is Euribor plus 600 basis points and on the U.S. term loan B is Libor plus 550 bps, with both having a 1.5% floor, a discount of 98 and 101 soft call protection for one year.

The euro term loan B was just added to the capital structure on Wednesday, carved out from a single tranche $490 million B loan. At that time, pricing on the U.S. loan was lowered from Libor plus 600 bps and the discount tightened from 97.

Unifrax getting revolver

Unifrax's roughly $560 million credit facility (B2/B+), up from $540 million, also includes a $50 million five-year revolver priced at Libor plus 525 bps with a 75 bps unused fee. The unused fee will step down to 50 bps at 3.5 times leverage or less.

Pricing on the revolver was reverse flexed from Libor plus 575 bps at the time of the U.S. term B pricing change.

Lead banks Goldman Sachs & Co., Wells Fargo Securities LLC, GE Capital Markets and KeyBanc Capital Markets LLC were seeking recommitments by Thursday, with the hope being to allocate on Friday.

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

MoneyGram sets OID talk

MoneyGram, a Dallas-based payment services company, launched its $150 million incremental term loan B-1 to existing lenders on Thursday and disclosed that the debt is being shopped at an original issue discount of 98, according to a market source.

As was previously reported, pricing on the B-1 due Nov. 18, 2017 will match that of the existing term loan due Nov. 18, 2017 - Libor plus 325 basis points with a 1.25% Libor floor and a step-down to Libor plus 300 bps based on leverage. There is 101 soft call protection for one year.

Bank of America Merrill Lynch, Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC and Wells Fargo Securities LLC are leading the new deal that will be used with cash on hand to fund the redemption of $175 million of the company's 13¼% senior secured second-lien notes due 2018 held by affiliates of Goldman Sachs & Co. at a price of 113.25%.

Total Safety seeks add-on

Total Safety launched a $25 million add-on term loan on Thursday at talk of Libor plus 625 bps with a 1.25% Libor floor, in line with pricing on the existing 61/2-year term loan that was obtained recently for the company's buyout by Warburg Pincus from DLJ Merchant Banking Partners.

The original issue discount on the add-on is still to be determined. The existing loan had been sold at a discount of 96.

Deutsche Bank Securities Inc. is the lead bank on the deal that will be used to help fund the acquisition of Z-Safety Services.

Total Safety is a Houston-based outsourced provider of integrated safety and compliance services and the products necessary to support them.

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