Dayco Products, Commscope free up; Patriot Coal revisions surface; Bluestem well met

By Sara Rosenberg

New York, Nov. 27 - Dayco Products LLC's term loan B made its way into the secondary market on Wednesday morning, with the bid seen above the original issue discount, and CommScope Holding Co. Inc. began trading, too.

Over in the primary, Patriot Coal Corp. lifted pricing on its first-lien second-out term loan and widened the offer price, and Bluestem Brands Inc.'s in-market B loan has been seeing strong demand from investors, so much so that the tranche is now oversubscribed.

Also, Raven Power Finance LLC, Spectrum Brands Holdings Inc. and Endo Health Solutions Inc. surfaced with deal plans, and Centerplate Inc. allocated its facility.

Dayco starts trading

Dayco Products' $375 million six-year term loan B freed up on Wednesday, with levels quoted at 99¼ bid, according to a trader.

Pricing on the loan is Libor plus 425 basis points with a step-down to Libor plus 400 bps when total net leverage is 2.5 times. The debt has a 1% Libor floor and 101 soft call protection for one year, and was sold at an original issue discount of 99.

Earlier this week, the loan was downsized from $425 million, pricing was increased from talk of Libor plus 350 bps to 375 bps, the step-down was added, the call protection was extended from six months, the maturity was shortened from seven years, the MFN sunset was eliminated and the incremental allowance was reduced to $50 million from $75 million.

Bank of America Merrill Lynch, J.P. Morgan Securities LLC and Credit Suisse Securities (USA) LLC are leading the deal that will be used to refinance existing debt and fund a dividend, the size of which was reduced due to the recent term loan downsizing.

Dayco Products is a Troy, Mich.-based manufacturer and distributor of belts, tensioners, hose, pulleys and hydraulics equipment for the automotive, trucking, construction, agricultural, ATV, snowmobile and industrial markets.

CommScope breaks

Another deal to begin trading was CommScope, with its $350 million term loan B-1 due January 2017 quoted at par 1/8 bid, par 5/8 offered and its $525 million term loan B-2 due January 2018 quoted at par ½ bid, 101 offered, according to a market source.

Pricing on both term loans is Libor plus 250 bps, with the B-2 loan having a 0.75% Libor floor. Both were issued at par and include 101 soft call protection for six months.

During syndication, the term loan B-1 was downsized from $450 million, the spread firmed at the high end of the Libor plus 225 bps to 250 bps talk and the offer price finalized at the tight end of the 99¾ to par guidance, and the B-2 loan was upsized from $425 million, pricing was set at the low end of the Libor plus 250 bps to 275 bps talk and the offer price came at the low end of the 99¾ to par talk.

J.P. Morgan Securities LLC is the lead bank on the $875 million in term loans (BB-) that will be used to refinance a term loan B due January 2018 priced at Libor plus 275 bps with a 1% Libor floor.

The existing term loan B is currently size at around $975 million, but the company plans on using existing liquidity to repay $100 million of the debt with this refinancing transaction.

CommScope is a Hickory, N.C.-based provider of infrastructure services for communication networks.

Petriot reworked

Moving to the primary, Patriot Coal raised the spread on its $250 million first-lien second-out term loan (B3) to Libor plus 800 bps from talk of Libor plus 725 bps to 775 bps and moved the original issue discount to 98 from 99, according to a market source.

As before, the term loan has a 1% Libor floor, and hard call protection of 102 in year one and 101 in year two.

Recommitments are due at 5 p.m. ET on Monday, the source said.

The company's $576 million five-year credit facility also includes a $125 million asset-based revolver and a $201 million first-lien, first-out letter-of-credit facility.

Barclays and Deutsche Bank Securities Inc. are leading the deal, with Barclays the agent on the term loan and letter-of-credit facility and Deutsche the agent on the revolver.

Senior secured leverage is 1.8 times and total leverage is 1.9 times.

Proceeds will be used to support the company's emergence from Chapter 11.

Closing and funding is targeted for Dec. 18.

Patriot Coal is a St. Louis-based miner, producer and seller of thermal coal.

Bluestem nets interest

Bluestem Brands' $200 million term loan B (B2/B) has received enough interest from investors to result in oversubscription of the transaction, and plans are to allocate the deal early in the week of Dec. 2, according to a market source.

The B loan is talked at Libor plus 650 bps with a 1% Libor floor, an original issue discount of 98 and 101 soft call protection for one year, and the anticipation is that those will be the final terms on the deal, the source said.

Wells Fargo Securities LLC and Bank of America Merrill Lynch are leading the deal that will be used to fund a dividend.

Bluestem is an Eden Prairie, Minn.-based multi-brand, online retailer of a broad selection of name brand and private label general merchandise serving low-to-middle income consumers.

Raven coming soon

Raven Power Finance set a bank meeting for Tuesday to launch a $350 million term loan B, according to a market source.

Deutsche Bank Securities Inc. and Morgan Stanley Senior Funding Inc. are leading the deal that will be used to refinance existing debt, fund a distribution to shareholders and for general corporate purposes.

Raven Power is an Austin, Texas-based power company.

Spectrum on deck

Spectrum Brands scheduled a bank meeting for Tuesday in London to launch a new €200 million term loan and a repricing of a U.S. term loan down from Libor plus 325 bps with a 1.25% Libor floor, according to a market source.

The U.S. term loan is currently sized at $325 million but will be paid down to $250 million with some of the proceeds from the euro term loan, the source remarked. Remaining proceeds will be used to refinance other bank debt.

Deutsche Bank Securities Inc. and Credit Suisse Securities (USA) LLC are leading the deal.

Spectrum Brands is a Madison, Wis.-based consumer products company.

Endo readies launch

Endo Health is looking at holding a bank meeting during the week of Dec. 2 to launch its $750 million seven-year term loan B, according to a market source. A specific date for the meeting is not yet available.

Based on filings with the Securities and Exchange Commission the B loan is expected at Libor plus 300 bps with a 0.75% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months, however, official talk is still to be determined.

The company's $2.6 billion senior secured credit facility also includes a $750 million five-year revolver and a $1.1 billion five-year term loan A, which are already being marketed to investors and are talked at Libor plus 200 bps, the source said.

Deutsche Bank Securities Inc. and RBC Capital Markets are leading the deal.

Endo buying Paladin

Endo's credit facility and an expected $1.3 billion senior notes offering are being done in connection with the acquisition of Paladin Labs Inc.

Proceeds will be used to repay some of the company's existing debt and fund the early repurchase of its convertible notes due April 2015.

Under the agreement, each of Endo and Paladin will be acquired by a newly formed Irish holding company, New Endo. Paladin shareholders will receive 1.6331 shares of New Endo stock and C$1.16 in cash, for a value of C$77.00 per share. Current Endo shareholders will receive one share of New Endo for each share of Endo they own at closing. The stock-and-cash transaction is valued at about $1.6 billion, of which around 98% will be paid in shares of stock.

Net debt to adjusted EBITDA will be 2.4 times.

Closing is expected in the first half of 2014, subject to regulatory approvals in the United States, Canada and South Africa, the approval of both companies' shareholders, the approval of the Superior Court of Quebec, the registration and listing of New Endo shares and customary conditions.

Endo is a Malvern, Pa.-based specialty health-care company. Paladin is a Montreal-based specialty pharmaceutical company.

Centerplate allocates

Centerplate allocated and closed on Wednesday on its $420 million credit facility (B2/B) that consists of a $75 million revolver and a $345 million term loan B, according to a market source.

Pricing on the B loan came in line with talk at Libor plus 375 bps with a 1% Libor floor, an original issue discount of 99½ on new money commitments and a 10 bps consent/rollover fee for existing dollars.

Also, the term loan B has 101 soft call protection for six months.

GE Capital Markets, PNC Capital Markets LLC and Rabobank are leading the deal that was used to refinance existing debt.

Centerplate is a Stamford, Conn.-based provider of food and beverage concessions, high-end catering and merchandise services in sports facilities, convention centers and other entertainment facilities.

Intelsat closes

In other news, Intelsat Jackson Holdings SA closed on its $3.1 billion term loan B-2 due June 30, 2019 that is priced at Libor plus 275 bps with a 1% Libor floor, according to a news release.

The B-2 loan, which was upsized during syndication from $1.75 billion, was issued at par and has 101 soft call protection for six months.

Proceeds were used to refinance the company's term loan B-1 due April 2018 priced at Libor plus 300 bps with a 1.25% Libor floor.

In addition, the company amended its revolver extending $450 million of the $500 million tranche to July 12, 2017 from Jan. 12, 2016 and reducing pricing on the extended tranche to Libor plus 275 bps with a 1% Libor floor from Libor plus 300 bps with a 1.25% Libor floor.

Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC were the joint lead arrangers on the deal (BB-) and bookrunners with Barclays, Morgan Stanley Senior Funding Inc., Deutsche Bank Securities Inc. and Goldman Sachs Bank USA.

Intelsat is a Luxembourg-based provider of satellite services.

WideOpenWest refi

WideOpenWest Finance LLC closed on its $425 million term loan B-1 due July 2017 that is priced at Libor plus 300 bps with a 0.75% Libor floor, a news release said. The debt was issued at par and has 101 soft call protection through April 1.

During syndication, the loan was upsized from $400 million and pricing finalized at the wide end of the Libor plus 275 bps to 300 bps talk.

J.P. Morgan Securities LLC led the deal that was used to refinance/reprice the existing term loan B-1 from Libor plus 325 bps with a 1% Libor floor, and, due to the upsizing, to pay down revolver borrowings.

WideOpenWest is a Denver-based provider of residential and commercial high-speed internet, cable television and telephone services.

One Call wraps

The buyout of One Call Care Management by Apax Partners from Odyssey Investment Partners has closed, according to a news release.

For the transaction, One Call got a new $1,245,000,000 credit facility consisting of an $825 million seven-year covenant-light first-lien term loan and a $420 million eight-year covenant-light second-lien term loan.

Pricing on the first-lien term loan is Libor plus 400 bps with a step-down to Libor plus 375 bps when first-lien senior secured leverage is 4.25 times. The debt has a 1% Libor floor and 101 soft call protection for six months, and was sold at an original issue discount of 99.

The second-lien term loan is priced at Libor plus 775 bps with a 1% Libor floor and was sold at a discount of 991/2. There is 101 hard call protection until April 30, 2014, then 103 until the first anniversary of closing, 102 for a year and 101 for the following year.

During syndication, the spread on the first-lien term loan was increased from talk of Libor plus 350 bps to 375 bps and the step-down was added, and the second-lien loan pricing firmed at the tight end of the Libor plus 775 bps to 800 bps talk and the discount tightened from 99.

One Call lead banks

Bank of America Merrill Lynch, Deutsche Bank Securities Inc., RBC Capital Markets, Morgan Stanley Senior Funding Inc., Jefferies Finance LLC and Guggenheim are leading One Call's deal.

Along with the One Call buyout, Apax is purchasing Align Networks, a workers' compensation physical medicine network, from General Atlantic and The Riverside Co., and it is expected that following the completion of each transaction, One Call and Align will merge.

When final pricing on One Call's loans emerged, it was revealed that the MFN sunset was dropped, establishing the 50 bps MFN for life, the incremental allowance was revised to $200 million, provided that only $150 million will be available prior to the Align Networks acquisition, from $300 million with $200 million available prior to the acquisition, and a first-lien senior secured leverage limit was set at 5 times with respect to the financing of the Align acquisition, a source added.

One Call is a Parsippany, N.J.-based provider of specialized cost containment services to the workers' compensation industry.

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