Momentive breaks; TASC tweaks deal; Catalent, NAB, SI Organization, Albaugh set talk

By Sara Rosenberg

New York, April 30 - Momentive Performance Materials Inc.'s debtor-in-possession financing facility freed up for trading during Wednesday's market hours, with the term loan seen above its original issue discount price.

Over in the primary, TASC Inc. added a covenant to its term loans, and Catalent Pharma Solutions Inc. and North American Bancard (NAB Holdings LLC) disclosed price talk on their deals with launch.

In addition, the SI Organization Inc. and Albaugh Inc. began circulating guidance on their loans, and MSC Software Corp. emerged with new deal plans.

Momentive frees up

Momentive Performance Materials' debtor-in-possession financing facility began trading on Wednesday, with the $300 million term loan quoted at 99 7/8 bid, par 3/8 offered, according to a trader.

Pricing on the term loan is Libor plus 325 basis points with a 0.75% Libor floor and it was sold at an original issue discount of 991/2.

During syndication, the spread on the term loan was lowered from initial talk of Libor plus 400 bps and the Libor floor was trimmed from 1%.

The company's $570 million DIP facility also includes a $270 million asset-based revolver that is expected to be priced at Libor plus 275 bps.

J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs Bank USA and UBS Securities LLC are leading the deal that will be used by the Albany, N.Y.-based silicones and advanced materials company to help fund its Chapter 11 restructuring process.

TASC adds covenant

Moving to the primary, TASC added a total net leverage covenant to its previously covenant-light first- and second-lien term loans, according to a market source.

The $432 million six-year first-lien term loan (B1) is talked at Libor plus 550 bps with a 1% Libor floor and at an original issue discount of 99 with 101 soft call protection for one year, and the $200 million seven-year second-lien term loan (Caa2) is talked at a fixed rate of 12% with a par offer price and hard call protection of 102 in year one and 101 in year two.

The company's $682 million senior secured credit facility also includes a $50 million five-year revolver (B1) talked at Libor plus 550 bps.

Commitments are due on Friday.

Net senior secured leverage is 3.7 times, and net total leverage is 5.6 times.

TASC lead banks

Barclays and KKR Capital are leading TASC's credit facility that will be used to refinance an existing credit facility.

At first, the company launched an amendment and extension of its existing non-covenant-light credit facility, but that was shifted recently to plans for the new credit facility.

The amendment and restatement would have extended the $632 million term B by two years to Dec. 18, 2017 and raised pricing to Libor plus 525 bps with a 1.25% Libor floor from Libor plus 325 bps with a 1.25% Libor floor. It also would have extended the revolver by two years to Sept. 18, 2017 and reduced the size to $50 million from $80 million.

TASC is a Chantilly, Va.-based provider of advanced systems engineering and technical assistance to the defense, intelligence, federal and homeland security markets.

Catalent reveals guidance

Catalent Pharma Solutions held its call on Wednesday morning, launching its $1.47 billion seven-year first-lien term loan B and $275 million seven-year first-lien euro-equivalent term loan B with talk of Libor/Euribor plus 350 bps with a 1% floor, an original issue discount of 99½ and 101 soft call protection for six months, according to a market source.

Commitments for the company's $1,945,000,000 senior secured credit facility (Ba3), which also includes a $200 million five-year revolver, are due on May 7, the source said.

Morgan Stanley Senior Funding Inc., J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Goldman Sachs Bank USA, Jefferies Finance LLC, Deutsche Bank Securities Inc. and Wells Fargo Securities LLC are leading the deal that will refinance an existing secured credit facility and some of an unsecured credit facility.

Catalent is a Somerset, N.J.-based provider of advanced technologies and development, manufacturing and packaging services for pharmaceutical, biotechnology and consumer health care companies.

NAB talk emerges

North American Bancard held its bank meeting in the afternoon, and a few hours before its kicked off, price talk on its $200 million seven-year first-lien term loan came out at Libor plus 400 bps to 425 bps with a 1% Libor floor and an original issue discount of 99, a source said. The debt has 101 soft call protection for one year.

The company's $220 million credit facility (BB) also includes a $20 million revolver.

Commitments are due on May 14.

Credit Suisse Securities (USA) LLC and BMO Capital Markets are leading the deal that will be used to refinance existing debt and fund a dividend.

North American Bancard is a Troy, Mich.-based merchant acquirer for payment processing.

SI floats terms

SI Organization disclosed talk of Libor plus 500 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year on its $490 million six-year first-lien term loan as it prepares to launch the debt with a bank meeting at 11 a.m. ET in New York on Thursday, according to a market source.

The company's $590 million senior secured credit facility also includes a $50 million five-year revolver and a $50 million six-year final maturity delayed-draw term loan.

UBS Securities LLC and RBC Capital Markets are leading the deal that will be used to help fund the purchase of QinetiQ North America Services and Solutions Group, a Reston, Va.-based provider of technology and responsive services focusing on the U.S. government, and to refinance existing bank debt.

Closing is expected in the second quarter, subject to receipt of regulatory approvals.

SI is a Chantilly, Va.-based provider of analytical and technical information services for the U.S. government.

Albaugh pricing announced

Albaugh revealed talk of Libor plus 350 bps to 375 bps with a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months on its $300 million covenant-light term loan B, according to a market source.

The deal launched with a bank meeting on Tuesday, but price talk on the term loan was not disclosed until Wednesday.

The company's $400 million credit facility (B1/BB-) also includes a $100 million revolver.

Commitments are due on May 13, the source added.

HSBC Securities (USA) Inc., Credit Suisse Securities (USA) LLC and J.P. Morgan Securities LLC are leading the deal that will be used to refinance existing debt and for general corporate purposes.

Albaugh is an Ankeny, Iowa-based producer of generic crop protection products.

US Ecology launches

US Ecology Inc. launched with a bank meeting its $540 million credit facility (Ba3/BB+) and is giving investors until May 14 to place their orders, according to a market source.

As previously reported, the facility consists of a $125 million five-year revolver, and a $415 million seven-year term loan talked at Libor plus 325 bps with a 0.75% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months. The term loan yield is 4 1/8%.

Wells Fargo Securities LLC and Credit Suisse Securities (USA) LLC are leading the deal that will be used to help fund the acquisition of EQ-The Environmental Quality Co., a Wayne, Mich.-based fully integrated environmental services and waste management company, from Kinderhook Industries LLC for $465 million.

Closing is expected in the second or third quarter, subject to customary conditions, and leverage will be around 3.3 times 2013 pro forma combined company EBITDA.

US Ecology is a Boise, Idaho-based provider of industrial waste management and recycling services.

MSC Software on deck

MSC Software surfaced with plans to hold a bank meeting on May 8 to launch a $435 million credit facility, according to a market source.

The facility consists of a $10 million revolver, a $305 million first-lien term loan due in 2020 and a $120 million second-lien term loan due in 2021, the source said.

Jefferies Finance LLC is leading the deal that will be used to refinance existing debt and fund a dividend.

MSC Software is a Newport Beach, Calif.-based software company that focuses on multidiscipline simulation.

Albertsons allocates

In other news, Albertsons LLC allocated its extended term loan B-1 debt on Wednesday that is priced at Libor plus 375 bps with a 1% Libor floor and was issued at par. There is 101 soft call protection for six months that was added during syndication, according to a market source.

The company extended the term loan B-1 due March 21, 2016 into its covenant-light term loan B-2 due March 21, 2019, bringing the total term loan B-2 size to $1,444,000,000.

Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and Bank of America Merrill Lynch are the leads on the deal.

With the extension, the company received consents to amend its existing credit facility to allow for the incurrence of debt for the Safeway Inc. acquisition.

The amendments are conditional on the acquisition closing, but the term loan B-1 extension is occurring whether or not the acquisition is completed and will be effective on Monday.

Lenders were offered a 25 bps amendment fee.

Albertsons planned debt

For the purchase of Safeway, Albertsons expects to get $9.45 billion credit facility consisting of a $2.75 billion five-year asset-based revolver, a $2 billion five-year term loan B-3, a $4 billion seven-year term loan B-4 and a $700 million one-year term loan B-5.

As part of the approved amendment, the term loan B-3 would have flat MFN protection and the term loan B-4 will have 50 bps MFN protection, the source continued.

Bank of America Merrill Lynch, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc., Barclays, Deutsche Bank Securities Inc., PNC Capital Markets LLC, US Bank and SunTrust Robinson Humphrey Inc. are leading the Safeway acquisition financing.

Closing on the Safeway transaction is targeted for the fourth quarter, subject to customary conditions, including approval by Safeway shareholders and regulatory approvals.

Albertsons is a food and drug retailer. Safeway is a Pleasanton, Calif.-based food and drug retailer.

Institutional Shareholder wraps

The buyout of Institutional Shareholder Services Inc., a provider of corporate governance services to the financial community, by Vestar Capital Partners from MSCI Inc. has closed, a news release said.

For the transaction, Institutional Shareholder got a new $260 million credit facility that consists of a $20 million revolver (B2), a $167 million first-lien term loan B (B2) priced at Libor plus 400 bps with a 1% Libor floor and sold at an original issue discount of 991/2, and a $73 million second-lien term loan (Caa2) priced at Libor plus 750 bps with a 1% Libor floor and sold at a discount of 99.

Included in the first-lien term loan is 101 soft call protection for one year, and the second-lien term loan has hard call protection of 102 in year one and 101 in year two.

GE Capital Markets and SunTrust Robinson Humphrey Inc. led the deal that underwent some changes in syndication, including a flex on the first-lien loan from Libor plus 375 bps and the extension of call protection from six months, and the firming of second-lien loan pricing at the wide end of the Libor plus 725 bps to 750 bps talk.

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