Cable & Wireless breaks; Ascena up with numbers; Microsemi, AMC, Apco, ProAmpac launch

By Sara Rosenberg

New York, Dec. 2 – Cable & Wireless Communications plc’s (Sable International Finance Ltd.) term loan B debt made its way into the secondary market on Wednesday, and Ascena Retail Group Inc.’s term loan was better on the back of earnings news.

Moving to the primary market, Microsemi Corp., AMC Entertainment Inc., Apco Holdings Inc. and ProAmpac came out with price talk with launch, and Varsity Brands Inc. surfaced with new loan plans.

Cable & Wireless frees up

Cable & Wireless Communications’ $800 million of seven-year covenant-light term loan B debt (Ba2/BB-) began trading on Wednesday, with levels quoted at 98¼ bid, 98¾ offered, according to a trader.

The debt, split between a $440 million term loan B-1 and a $360 million term loan B-2, is priced at Libor plus 475 basis points with a 0.75% Libor floor, and was sold at an original issue discount of 98. There is 101 soft call protection for one year.

During syndication, pricing on the B-1 and B-2 loans was lifted from talk of Libor plus 400 bps to 425 bps, the discount widened from 99, and the call protection was extended from six months.

Bank of America Merrill Lynch, Goldman Sachs Bank USA and Scotiabank are the joint global coordinators on the deal and bookrunners with BNP Paribas Securities Corp., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, ING and RBC Capital Markets LLC. Scotiabank is the administrative agent.

Cable being acquired

Cable & Wireless’ term debt is being obtained in connection with its acquisition by Liberty Global plc for a total equity value of about £3.5 billion, or an implied price of 78.04p per share.

Proceeds from the term loan B-1 will be used to refinance $400 million of 8¾% senior secured notes due 2020, and the term loan B-2 will be used to fund a $360 million special dividend payable to Cable & Wireless shareholders.

Along with the term loans, the company plans on getting a $570 million revolver to refinance existing revolving credit facilities.

Completion of the acquisition is subject to, among other conditions, Liberty Global and Cable & Wireless shareholder approvals, regulatory approvals and court sanction of the scheme of arrangement.

Cable & Wireless is a London-based telecommunications company. Liberty Global is a London-based cable company.

Ascena gains ground

Also in trading, Ascena Retail’s term loan rose to 89½ bid, 90½ offered from 88½ bid, 89½ offered on the heels of Tuesday’s late day release of positive fiscal first quarter numbers, a trader remarked.

For the quarter, the company reported net sales of about $1.67 billion, compared to around $1.19 billion for the first quarter of last year.

Net loss for the quarter was $18.1 million, or $0.10 per diluted share, compared to net income of $53.5 million, or $0.32 per diluted share in the prior year. However, the decrease was primarily due to the effect of purchase accounting adjustments and transaction costs related to the acquisition of ANN Inc. which closed during the quarter. Adjusted net income for the first quarter was $71.2 million, or $0.36 per diluted share, versus adjusted net income of $63.9 million, or $0.33 per diluted share, last year.

Ascena is a Mahwah, N.J.-based specialty retailer of clothing, shoes and accessories.

Microsemi terms surface

Microsemi held its bank meeting on Wednesday, and with the event, price talk on its $2,425,000,000 senior secured credit facility was announced, according to a market source.

The $350 million five-year revolver and $650 million five-year term loan A are talked at Libor plus 225 bps to 250 bps with no floor and an original issue discount of 99.625, and the $1,425,000,000 seven-year covenant-light term loan B is talked at Libor plus 375 bps to 400 bps with a 0.75% Libor floor, a discount of 98 to 98.5 and 101 soft call protection for six months, the source said.

Morgan Stanley Senior Funding Inc., the Bank of Tokyo-Mitsubishi UFJ Ltd. and Deutsche Bank Securities Inc. are leading the deal.

Microsemi buying PMC

Proceeds from Microsemi’s credit facility, cash on hand and common stock will be used to fund the acquisition of PMC-Sierra Inc. for $9.22 in cash and 0.0771 of a share of Microsemi common stock for each share of PMC common stock, and to refinance existing debt.

The PMC-Sierra transaction is valued at about $2.5 billion.

Closing is expected in the first quarter of 2016, subject to regulatory approvals, the tender of at least a majority of the outstanding shares of PMC’s common stock and customary conditions.

Microsemi is an Aliso Viejo, Calif.-based provider of semiconductor solutions. PMC is a Sunnyvale, Calif.-based fabless semiconductor company.

AMC holds call

AMC Entertainment emerged in the morning with plans to hold a lender call at 11 a.m. ET, and on that call, lenders were presented with an $881 million seven-year senior secured term loan B talked at Libor plus 325 bps with a 0.75% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months, a market source said.

Commitments are due at 5 p.m. ET on Dec. 9 and closing is expected on Dec. 11, the source continued.

Citigroup Global Markets Inc., Bank of America Merrill Lynch, Barclays, HSBC Securities (USA) Inc. and Credit Suisse Securities (USA) LLC are leading the deal that will be used to refinance an existing term loan and for general corporate purposes.

The company’s existing term loan was quoted at 99¾ bid, 100 1/8 offered in trading following the launch of the new loan, unchanged from the previous day’s levels, a trader added.

AMC is a Leawood, Kan.-based movie exhibitor.

Apco releases guidance

Apco Holdings came out with talk of Libor plus 525 bps to 550 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months on its $190 million seven-year term loan that launched with a bank meeting during the session, according to a market source.

When the deal was announced last week, sources heard whispered unofficial talk in the area of Libor plus 500 bps with a 1% Libor floor, a discount of 99 and 101 soft call protection for six months.

The company’s $210 million credit facility also includes a $20 million five-year revolver.

Commitments are due on Dec. 15, the source said.

SunTrust Robinson Humphrey Inc. is leading the deal that will be used to help fund the buyout of the company by Ontario Teachers’ Pension Plan. Certain of Apco’s shareholders, including senior management and funds managed by Stone Point Capital LLC, will remain shareholders in the business.

Closing is expected this month, subject to customary conditions.

Apco is a Norcross, Ga.-based marketer and administrator of vehicle service contracts sold by auto dealers.

ProAmpac sets talk

ProAmpac launched with an afternoon call its $245 million add-on first-lien term loan with talk of Libor plus 400 bps with a 1% Libor floor and an original issue discount of 98, a market source remarked.

Commitments are due on Dec. 10, the source added.

RBC Capital Markets LLC is leading the deal that will be used to fund an acquisition.

ProAmpac, which was formed earlier this year through the combination of Prolamina Corp. and Ampac Holdings LLC, is a Cincinnati-based flexible packaging company.

Varsity readies call

Varsity Brands set a lender call for Thursday to launch a $75 million add-on first-lien term loan, according to a market source.

The add-on is talked at Libor plus 400 bps with a 1% Libor floor, in line with existing first-lien term loan pricing, and an original issue discount of 99, and all of the first-lien term loan debt will get 101 soft call protection for six months, the source said.

Goldman Sachs Bank USA is leading the deal that will be used with a pre-placed $50 million second-lien term loan to fund tuck-in acquisitions.

Varsity Brands is a Memphis, Tenn.-based portfolio of brands that promote student participation while celebrating academic and athletic achievement.

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