Wall Street Systems frees up; SemGroup, OneLink rework deals; Gibson Energy mulls changes

By Sara Rosenberg

New York, June 2 - Wall Street Systems' credit facility made its way into the secondary market on Thursday, with both the first- and second-lien term loans quoted above their original issue discount prices.

Over in the primary market, SemGroup Corp. increased pricing on its term loan B, and OneLink Communications sweetened the pricing, original issue discount and call protection on its second-lien term loan.

Also, rumor has it that Gibson Energy ULC may see the spread on its term loan flex higher before syndication is completed.

And, in more primary happenings, Venetian Macao Ltd. revealed price talk on its term loan B as the deal was presented to lenders during the session, and Cloverhill Bakery details surfaced with its launch as well.

Wall Street breaks

Wall Street Systems' credit facility began trading on Thursday, with the $200 million six-year first-lien term loan (Ba3/B) quoted at par bid, par ½ offered and the $125 million seven-year second-lien term loan (Caa1/B-) quoted at par ¼ bid, no offers, according to a trader.

Pricing on the first-lien term loan, as well as on a $25 million five-year revolver (Ba3/B) is Libor plus 400 basis points with a 1.5% Libor floor, and the term loan was sold at an original issue discount of 991/2.

Meanwhile, the second-lien term is priced at Libor plus 750 bps with a 1.5% Libor floor and was sold at an original issue discount of 99. There is call protection of 102 in year one and 101 in year two.

Terms on the deal firmed in line with initial talk.

Wall Street funding buyout

Proceeds from Wall Street Systems' $350 million credit facility will be used to help fund its acquisition by a subsidiary of ION Investment Group, a portfolio company of TA Associates, from Warburg Pincus.

Credit Suisse Securities (USA) LLC is the lead bank on the deal.

Wall Street Systems is a New York-based provider of treasury management, central banking and FX trade processing services. ION is a provider of trading technology and trade processing services for the financial industry.

SemGroup flexes B loan

Switching to the primary, SemGroup raised pricing on its $200 million seven-year term loan B to Libor plus 450 bps from talk of Libor plus 375 bps to 400 bps, while leaving the 1.25% Libor floor, original issue discount of 99½ and 101 soft call protection for one year intact, according to a market source.

The company's $650 million credit facility (B1) also provides for a $350 million five-year revolver and $100 million five-year term loan A. At launch, the pro rata tranches were talked at Libor plus 325 bps, subject to a grid, with the revolver having a 50 bps unused fee.

RBS Securities Inc., Barclays Capital Inc., BNP Paribas Securities Corp. and Citigroup Global Markets Inc. are the lead banks on the deal that will be used to refinance existing debt.

SemGroup is a Tulsa, Okla.-based midstream service company.

OneLink revises second-lien

OneLink Communications increased the spread on its $150 million seven-year second-lien term loan (Caa2/CCC+) to Libor plus 850 bps from talk of Libor plus 650 bps to 700 bps and widened the original issue discount to 98 from 99, according to a market source.

Furthermore, call protection was beefed up to 103 in year one, 102 in year two and 101 in year three from 102 in year one and 101 in year two, the source said.

As before, the second-lien tranche has a 1.5% Libor floor.

The company's $520 million credit facility also includes a $25 million five-year revolver (B2/B+) and a $345 million six-year first-lien term loan (B2/B+).

OneLink first-lien pricing

OneLink's first-lien term loan is priced at Libor plus 450 bps with a 1.5% Libor floor and an original issue discount of 99 and has 101 soft call protection for one year.

Earlier in the syndication process, the spread on the first-lien loan was lifted from talk of Libor plus 375 bps to 400 bps, the Libor floor widened from 1.25% and the original issue discount moved from 991/2.

Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC and Morgan Stanley & Co. Inc. are leading the dividend recapitalization deal, with Citi the left lead on the revolver and fist-lien term loan and J.P. the left lead on the second-lien loan.

OneLink Communications is a provider of cable services in the San Juan area in Puerto Rico.

Gibson may raise spread

Chatter is that Gibson Energy is considering lifting the pricing on its $700 million seven-year term loan to Libor plus 400 bps from talk of Libor plus 350 bps to 375 bps, a market source told Prospect News.

The term loan was launched with a 1.25% Libor floor and an original issue discount of 99 and has 101 soft call protection for one year.

The company's $950 million senior secured credit facility (B1) also includes a $250 million five-year revolver.

J.P. Morgan Securities LLC, Citigroup Global Markets Inc. and UBS Securities LLC are the lead banks on the deal.

Gibson repaying debt

Proceeds from Gibson Energy's credit facility will be used to help refinance $560 million of 11¾% first-lien senior secured notes due 2014 and $200 million of 10% senior unsecured notes due 2018, to repay borrowings under an asset-based credit facility and for general corporate purposes.

Other funds for the refinancing will come from an initial public offering.

The tender offers for the notes will expire on June 13.

Gibson is a Calgary, Alberta-based midstream energy company, a crude oil transporter and a retail propane distributor.

Venetial Macao talk emerges

Venetian Macao held a bank meeting on Thursday afternoon to launch its $1 billion seven-year term loan B, and in connection with the event, price talk was announced, according to a market source.

The B loan is being talked at Libor plus 275 bps with a 0.75% Libor floor and an original issue discount of 991/2, the source said.

The company's $4.5 billion credit facility also includes a $500 million revolver and a $3 billion term loan A that have already been launched to lenders and are talked at Libor plus 225 bps.

Citigroup Global Markets Inc. is the left lead bank on the term loan B that includes multiple bookrunners, and Goldman Sachs & Co. is the left lead bank on the revolver and A loan.

Proceeds will be used to refinance existing debt.

Venetian Macao is a luxury hotel and casino resort in Macau owned by the Las Vegas Sands Corp.

Cloverhill launches

Also launching with a bank meeting was Cloverhill Bakery's $165 million credit facility, at which time price talk of Libor plus 400 bps to 450 bps with a 1.5% Libor floor and an original issue discount of 99 emerged, according to a market source.

The Chicago-based pre-packaged pastry company's facility consists of a $10 million revolver and a $155 million term loan.

GE Capital Markets is the lead bank on the deal that will be used to refinance existing debt.

Artel buyout wraps

In other news, TPG Growth and Torch Hill Investment Partners completed their acquisition of Artel Inc., according to a news release.

To help fund the transaction, Artel got a new $95 million credit facility priced at Libor plus 425 bps with a 1.25% Libor floor that was sold at an original issue discount of 99.

The facility consists of a $20 million revolver and a $75 million term loan.

During syndication, pricing on the deal was lowered from Libor plus 500 bps and the Libor floor was tightened from 1.5%.

RBC Capital Markets LLC led the deal for the Reston, Va.-based telecom and IT solutions provider.

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