Unifrax shutting early; Tensar restructures; NXP, HMS, B&G Foods, Global Tel float talk

By Sara Rosenberg

New York, Nov. 14 - Primary updates took a main focus on Monday as the secondary market was relatively quiet, with Unifrax I LLC accelerating the commitment deadline on its B loan and Tensar International Corp. Inc. coming out with a new round of revisions to its credit facility that included reducing the amount of term loan debt being raised and a small bump in coupon.

Also, NXP Semiconductors NV and HMS Holdings Corp. released price talk in connection with their launches, B&G Foods Inc. and Global Tel*Link Corp. set guidance ahead of their bank meetings, and Preferred Sands LLC surfaced with plans to bring a new deal to market this week.

Switching to the secondary market, MoneyGram International Inc.'s term loan held steady on news that the company is looking at getting an incremental loan as part of a proposed recapitalization that calls for the redemption of second-lien notes.

Unifrax moves deadline

Unifrax told lenders on Monday that it revised the commitment deadline on its $490 million seven-year term loan B to noon ET on Tuesday from 5 p.m. ET on Thursday as a result of strong demand, according to sources.

The B loan is still being talked at Libor plus 600 basis points with a 1.5% Libor floor and an original issue discount of 97 and has 101 soft call protection for one year.

The company's $540 million credit facility (B2/B+) also includes a $50 million five-year revolver.

Goldman Sachs & Co., Wells Fargo Securities LLC, GE Capital Markets and KeyBanc Capital Markets LLC are the lead banks on the deal that will be used to help fund the buyout of the company by American Securities.

Senior net leverage is around 4.0 times.

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

Tensar reworks deal

Tensar International also went out with an update, modifying structure and pricing on its credit facility, which was downsized to $325 million from $300 million, resulting in opco leverage shifting to 4.3 times from 4.7 times, according to a market source.

Under the revised structure, the five-year first-lien term loan B (B1/B) is sized at $200 million, up from $190 million, and pricing is proposed at Libor plus 775 bps with a 1.75% Libor floor and an original issue discount of 96, the source said. Most recently, talk had been Libor plus 750 bps at a discount of 95, and at launch it was Libor plus 700 bps at a discount of 97.

Meanwhile, the 51/2-year second-lien term C (Caa1/CCC+) is now $75 million, down from $110 million, and pricing is proposed at Libor plus 1,200 bps with a 1.75% Libor floor and a discount of 96, the source continued. Earlier talk had been Libor plus 1,175 bps at a discount of 95, and initial talk was Libor plus 1,000 bps at a discount of 96.

Tensar call protection

Call premiums on the term loans were left unchanged, with the first-lien term B having 101 call protection for one year and the second-lien term C being non-callable for one year, then at 102 in year two and 101 in year three.

The company's credit facility still includes a $25 million four-year ABL revolver that has grid-based pricing ranging from Libor plus 250 bps to 300 bps and a 50 bps unused fee.

Barclays Capital Inc. is the lead bank on the deal that will be used to refinance the company's existing capital structure.

Tensar is an Atlanta-based provider of specialty products and engineering services used in the development of commercial, residential, industrial and municipal sites as well as in transportation infrastructure.

NXP talk emerges

In more primary news, NXP held a conference call at 10 a.m. ET on Monday to kick off syndication on its $500 million senior secured covenant-light term loan A-2 due 2017, and shortly before the call began, price talk was announced, according to a market source.

The loan is being guided at Libor plus 425 bps with a 1.25% Libor floor and an original issue discount of 95 to 96, the source remarked.

Call protection on the proposed term A-2 matches that of the existing term loan A-1, so it will be non-callable until March 2013, then at 102 for one year and at 101 the following year.

All other terms on the A-2 will match those of the A-1 as well, except for pricing. The term loan A-1 was obtained in March of this year at Libor plus 325 bps with a 1.25% Libor floor, and was sold at an original issue discount of 991/2.

NXP nets interest

NXP's term loan A-2 already had "pretty solid momentum" around the time that the call was starting, and the syndication period is targeted to be short, with commitments due from lenders at 5 p.m. ET on Thursday, the source said.

The source explained that guys know the company and its story pretty well, and there is an existing lender group, so a longer syndication period is not expected to be needed.

Barclays Capital Inc. and Credit Suisse Securities (USA) LLC are the joint bookrunners on the deal that is being borrowed by NXP BV and NXP Funding LLC.

The term loan A-1 and the term loan A-2 will trade separately.

Proceeds from the new loan will be used to repay some of the company's existing secured floating-rate notes. The existing loan was also used to refinance notes.

NXP seeks amendment

In connection with NXP's new loan, an amendment is being sought for the existing term loan A-1 to allow for the A-2 to be done under the existing credit agreement.

The amendment needs 51% approval and is expected to go smoothly, however, if for some reason, the amendment doesn't pass, the company can still do the A-2 loan under a new credit agreement, the source added.

There is no amendment fee being offered.

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

HMS reveals guidance

HMS Holdings also came out with price talk as its $450 million credit facility launched with a bank meeting in the afternoon, according to a market source, who said that both the $350 million term loan and the $100 million revolver were presented to lenders at talk of Libor plus 300 bps.

Citigroup Global Markets Inc. is the lead bank on the deal and is seeking commitments during the week of Nov. 28.

Proceeds, along with cash on hand and the assumption of about $16 million of unvested options, will fund the roughly $400 million purchase of HealthDataInsights Inc., a Las Vegas-based technology-enabled health care services company focused on ensuring claims integrity.

Total leverage will be 2.5 times, and net leverage will be 1.7 times.

HMS, a New York-based coordinator of benefits and program integrity services for health care payers, expects to close on the acquisition by Dec. 31, subject to regulatory approvals.

B&G pricing surfaces

B&G Foods' $300 million term loan B isn't launching until Tuesday, but in preparation for the event, talk began circulating at Libor plus 400 bps with a 1.25% Libor floor, an original issue discount of 98 and 101 soft call protection for one year, according to a market source.

The company's $500 million senior secured credit facility (BB) also includes a $100 million five-year revolver and a $100 million five-year term loan A that were launched on Nov. 3 and are talked at Libor plus 300 bps, with the revolver having a 50 bps unused fee.

Credit Suisse Securities (USA) LLC, Barclays Capital Inc. and RBC Capital Markets LLC are leading the deal that will be used to fund the acquisition of six brands from Unilever United States Inc. for $325 million and refinance the company's existing senior secured credit facilities.

B&G Foods, Parsippany, N.J.-based manufacturer, seller and distributor of shelf-stable food, expects to close on the transaction by the end of the year.

Global Tel discloses talk

Like B&G, Global Tel*Link came out with guidance on its credit facility (B2) ahead of its Tuesday bank meeting, with both the $50 million five-year revolver and a $605 million six-year term loan talked at Libor plus 600 bps with a 1.5% Libor floor, according to sources.

The term loan is being offered at an original issue discount of 97 and includes 101 soft call protection for one year, sources added.

Credit Suisse Securities (USA) LLC, UBS Securities LLC, GE Capital Markets and Nomura are the lead banks on the $655 million deal that will be used to help fund the company's buyout by American Securities from Veritas Capital and GS Direct.

Global Tel*Link is a Mobile, Ala.-based correctional communications technology company.

Preferred Sands readies deal

Preferred Sands announced new deal plans, setting a bank meeting for 1 p.m. ET on Wednesday to launch a proposed $430 million five-year credit facility that consists of a $30 million revolver, a $175 million term loan A and a $225 million term loan B, according to a market source.

Price talk is not yet available, the source said.

Barclays Capital Inc. and KeyBanc Capital Markets LLC are the joint bookrunners on the deal that will be used to refinance existing debt, make a small acquisition and buy out some minority investors.

Preferred Sands, a Radnor, Pa.-based provider of silica sand products, will have pro forma leverage for this year of 4.3 times and 2.7 times on a run-rate basis.

Mylan closes

Furthermore, on the primary front, Mylan Inc. completed its $2.5 billion credit facility due 2016 consisting of a $1.25 billion revolver and a $1.25 billion term loan A, both priced at Libor plus 200 bps, according to a news release.

During syndication, the revolver was upsized from $1 billion.

Proceeds were used to refinance its existing secured credit facility.

Mylan is a Pittsburgh-based pharmaceutical company.

Asset Acceptance wraps

Asset Acceptance Capital Corp. closed on its $270.5 million credit facility on Monday, comprised of a $95.5 million five-year revolver and a $175 million six-year term loan B, according to a regulatory filing.

Pricing on the revolver can range from Libor plus 300 bps to 350 bps based on leverage, and there is a 50 bps unused fee, and pricing on the B loan is Libor plus 725 bps with a 1.5% Libor floor. The term B was sold at a discount of 93½ and has soft call protection of 102 in year one and 101 in year two.

During syndication, pricing on the term loan firmed at the low end of initial talk of Libor plus 725 bps to Libor plus 750 bps, and the discount tightened from 93.

J.P. Morgan Securities LLC led the deal that was used to refinance existing bank debt.

Asset Acceptance is a Warren, Mich.-based purchaser and collector of defaulted or charged-off accounts receivable portfolios from consumer credit originators.

MoneyGram stays firm

Moving to the secondary, MoneyGram's existing term loan saw little reaction on Monday to the company's intention to raise an up to $150 million incremental term loan, with levels remaining at 99¾ bid, par ½ offered, according to a trader.

Proceeds from the new loan and cash on hand will be used to fund the redemption of $175 million of the company's 13.25% senior secured second-lien notes due 2018 held by affiliates of Goldman Sachs & Co. The notes will be purchased at a price of 113.25.

A 424B3 filed with the Securities and Exchange Commission listed Bank of America Merrill Lynch, Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC and Wells Fargo Securities LLC as the lead banks on the new deal.

MoneyGram is a Dallas-based payment services company.

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