Travelport, Prestige Brands, Penn Engineering, NN, Medley deals emerge in secondary

By Sara Rosenberg

New York, Aug. 15 – Travelport LuxCo’s credit facility freed up for trading on Friday with the term loan B quoted above its original issue discount, and Prestige Brands Inc., Penn Engineering & Manufacturing Corp., NN Inc. and Medley LLC broke as well.

Travelport starts trading

Travelport’s credit facility surfaced in the secondary market on Friday, with the $2,375,000,000 seven-year term loan B quoted at 99½ bid, par offered, according to a market source.

Pricing on the term loan is Libor plus 500 basis points with a 25 bps step-down upon a qualified initial public offering and B2/B corporate ratings. There is a 1% Libor floor and 101 soft call protection for one year, and the debt was sold at an original issue discount of 98¾.

Recently, the term loan was upsized from $2.3 billion, pricing was increased from Libor plus 400 bps, the grid was revised from a 50 bps step-down upon completion of a qualified initial public offering, the discount moved from revised talk of 98½ and initial talk of 99, the call protection was extended from six months, the incremental facility was cut to $300 million from $500 million with unlimited amounts at 0.25 times below the closing first-lien net leverage ratio, and the initial restricted payments baskets was reduced to $50 million from $100 million.

Travelport getting revolver

In addition to the term loan B, Travelport’s $2,475,000,000 facility (B3/B-) also provides for a $100 million five-year revolver.

Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc. and Credit Suisse Securities (USA) LLC are leading the deal that will be used to refinance the company’s existing capital structure, including its first- and second-lien term loans, senior floating-rate notes due 2016, 13 7/8% senior notes due 2016, 11 7/8% senior subordinated notes due 2016, 11 7/8% dollar senior subordinated notes due 2016 and 10 7/8% senior subordinated euro notes due 2016.

The company also plans to use for the refinancing a $425 million senior unsecured bridge loan, which may be replaced by or exchanged for high-yield bonds. This bridge loan was downsized from $500 million with the recent term loan B upsizing.

Closing is expected on Sept. 2.

Travelport Ltd. is an Atlanta-based provider of transaction processing services to the travel industry.

Prestige tops OID

Prestige Brands’ $720 million seven-year senior secured incremental term loan B (B1/BB) also broke, with levels seen at par 1/8 bid, par 5/8 offered, a trader said.

Pricing on the loan is Libor plus 350 bps with a 1% Libor floor and it was sold at an original issue discount of 99½. There is 101 soft call protection for six months and a 25 bps pricing step-down at 3 times net senior secured leverage.

During syndication, the spread on the loan was lifted from Libor plus 300 bps.

Citigroup Global Markets Inc., Morgan Stanley Senior Funding Inc., Deutsche Bank Securities Inc. and RBC Capital Markets are leading the loan that will help fund the $750 million acquisition of Insight Pharmaceuticals Corp. from Swander Pace Capital and Ontario Teachers’ Pension Plan.

Closing is expected on Aug. 29.

Prestige Brands is a Tarrytown, N.Y.-based marketer and distributor of over-the-counter and household cleaning products. Insight Pharmaceuticals is a Trevose, Pa.-based marketer and distributor of feminine care and other over-the-counter health care products.

Penn firms spreads, breaks

Penn Engineering & Manufacturing finalized pricing on its $220 million seven-year first-lien covenant-light term loan and $350 million seven-year euro equivalent first-lien covenant-light term loan at Libor/Euribor plus 350 bps, the high end of the Libor/Euribor plus 325 bps to 350 bps talk, according to a market source.

Both term loans still have a 1% floor, an original issue discount of 99½ and 101 soft call protection for six months.

With pricing set, the debt made its way into the secondary market in the morning, and the U.S. term loan was seen at 99¾ bid, par ¼ offered, the source continued.

Along with the term loans, the company’s $645 million credit facility (B1/BB) includes a $75 million revolver.

Credit Suisse Securities (USA) LLC and RBS Citizens are leading the deal that will be used to fund the acquisition of Profil and to refinance existing debt.

Penn Engineering is a Danboro, Pa.-based manufacturer of highly engineered specialty fasteners.

NN levels surface

Another deal to start trading was NN’s credit facility, with the $350 million seven-year covenant-light term loan (B2/B+) quoted at 99 bid, 99½ offered, according to a trader.

Pricing on the term loan is Libor plus 500 bps with a 1% Libor floor and it was issued at a discount of 98½. There is 101 soft call protection for one year.

Earlier this week, pricing on the term loan was raised from Libor plus 425 bps, the discount widened from 99, amortization was increased to 5% per annum from 1%, and the incremental facility was trimmed to $50 million subject to a 4 times leverage test from $100 million.

The company’s $450 million senior secured credit facility also includes a $100 million five-year asset-based revolver.

Bank of America Merrill Lynch and Keybanc Capital Markets are leading the deal, with Bank of America left lead on the term loan and Keybanc left lead on the revolver.

NN buying Autocam

Proceeds from NN’s credit facility will be used to help fund the acquisition of Autocam Corp. for $244.5 million in cash, $25 million of stock and the assumption of $30.5 million of debt, to refinance NN’s outstanding debt and for working capital and general corporate purposes.

Closing is expected in the third quarter, subject to customary conditions and regulatory approval.

NN is a Johnson City, Tenn.-based manufacturer of high precision metal bearing components, industrial plastic and rubber products and precision metal components. Autocam is a Grand Rapids, Mich.-based manufacturer of highly complex, system critical components for fuel systems, engines and transmission, power steering and electric motors.

Medley frees to trade

Medley’s credit facility began trading as well, with the $100 million 4¾-year first-lien term loan quoted at 99 bid, 99½ offered, a source remarked.

Pricing on the term loan is Libor plus 550 bps with a 1% Libor floor and it was sold at an original issue discount of 99. The debt is non-callable for two years on 70% of the term loan and there is no call protection on the remaining 30%.

Recently, pricing on the term loan was lifted from Libor plus 500 bps, the call protection was changed from a 101 soft call for six months and the maturity was shortened from six years.

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

Medley is a New York-based asset management firm.

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