Alcatel, VWR break; Nine, Unifrax, Pharmaceutical Product, AlixPartners, Cole Haan reworked

By Sara Rosenberg

New York, Jan. 29 - Alcatel-Lucent USA Inc.'s credit facility freed up for trading on Tuesday, with the U.S. term loans seen well above their original issue discounts, and VWR Funding Inc. broke as well.

Moving to the primary, Nine Entertainment Group made a second round of changes to its term loan, tightening the original issue discount again, reducing the Libor floor and revising the condition to the pricing step-down, and Unifrax I LLC upsized its loan while adjusting pricing.

Also, Pharmaceutical Product Development LLC reduced the coupon on its term loan and added a step-down, and AlixPartners LLP firmed the spread on its term loans at the low end of guidance while shortening the soft call protection, and Cole Haan LLC revised its call premium.

Additionally, Berry Plastics Corp., LifePoint Hospitals, Ellucian, BakerCorp and Harvard Drug Group LLC released details on their deals with launch, SuperValu Inc., Tervita Corp., Apple Leisure Group and Paradigm Holdco Sarl price talk emerged, and Microsemi Corp. and PQ Corp. revealed repricing plans.

Alcatel hits secondary

Alcatel-Lucent's credit facility broke for trading on Tuesday, with the $500 million 31/2-year term loan B quoted at 101 bid, 101½ offered, and the $1.75 billion six-year term loan C quoted at 102 bid, 102½ offered, according to a trader.

Pricing on the term loan B is Libor plus 525 basis points with a 1% Libor floor, and it was sold at a discount of 991/2. There is 101 call protection for one year.

The term loan C is priced at Libor plus 625 bps with a 1% Libor floor and was also sold at a discount of 991/2. This tranche has call protection of 102 in year one and 101 in year two.

In addition, the company is getting a €300 million six-year term loan D that is priced at Euribor plus 650 bps with a 1% Euribor floor, and was sold at 991/2. This debt also has call protection of 102 in year one and 101 in year two.

Alcatel repaying debt

Proceeds from Alcatel-Lucent's covenant-light credit facility, which is being led by Credit Suisse Securities (USA) LLC and Goldman Sachs & Co., will be used to refinance existing debt and for general corporate purposes.

During syndication, pricing on the term loan B was revised from Libor plus 600 bps, the term loan C was upsized from $1.275 billion and reverse flexed from Libor plus 700 bps, and the term loan D was increased from €250 million and pricing was reduced from Euribor plus 700 bps.

Furthermore, the original issue discounts on all of the term loans was tightened from revised talk of 99 and initial talk of 98, the Libor/Euribor floors were trimmed from 1.25%, and the call protection on the six-year loans was changed from non-callable for one year, then at 102 in year two and 101 in year three.

Alcatel is a Paris-based telecommunications services and equipment company.

VWR frees up

VWR Funding's $351.7 million incremental senior secured term loan B due April 3, 2017 began trading too, with levels quoted at par ¾ bid, 101¼ offered, a trader told Prospect News.

Pricing on the loan is Libor plus 400 bps with no Libor floor, and it was issued at par. There is 101 soft call protection for one year.

During syndication, the term loan was upsized from $200 million, and pricing was cut from Libor plus 425 bps.

The company is also getting a €101.5 million term loan due April 3, 2017 that is priced at Euribor plus 425 bps with no Libor floor, and was sold at par. This tranche, which was added to the capital structure when the U.S. term loan was upsized, also has 101 soft call protection for one year

Citigroup Global Markets Inc. is leading the deal that will be used to repay all (because of the upsizing) of the company's non-extended term loan borrowings due June 29, 2014.

VWR is a Radnor, Pa.-based distributor of laboratory supplies and services.

Nine modified again

Nine Entertainment tightened the original issue discount on its U.S. dollar equivalent A$700 million seven-year covenant-light term loan (Ba2/BB) to 99 7/8 from revised talk of 99¾ and initial talk of 991/2, and cut the Libor floor to 0.75% from 1%, according to a market source.

Also, the step-down to Libor plus 250 bps under the term loan will now take effect when net first-lien leverage is 2.5 times, as opposed to when leverage is below 2 times, the source said.

Initial pricing on the term loan, as well as on an A$100 million five-year undrawn revolver, is still Libor plus 275 bps, after flexing there last week from Libor plus 325 bps. The revolver has no Libor floor and a 50 bps undrawn fee.

The term loan has 101 soft call protection for six months. This was shortened from one year when the change to the spread was announced.

Nine lead banks

UBS Securities LLC, Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc. and Nomura are the lead banks on Nine Entertainment's credit facility A$800 million senior secured credit facility.

Recommitments were due at 5 p.m. ET on Tuesday and closing and funding is targeted for on or before Feb. 6, the source continued.

Proceeds will be used to pay A$600 million cash consideration to previous senior and mezzanine lenders and Red Earth, to pay transaction and advisory costs and for general corporate purposes.

Nine Entertainment is an Australian diversified media and entertainment group.

Unifrax reworks deal

Unifrax lifted its covenant-light term loan due November 2018 to $465 million from $400 million, according to a market source. The loan includes a euro carve-out of $150 million to $175 million, upsized from a $100 million carve-out.

Pricing on the U.S. portion of the term loan was decreased to Libor plus 325 basis points with a 1.25% Libor floor and an original issue discount of 991/2, from talk of Libor plus 400 bps with a 1.25% floor and a discount of 99, and the 101 soft call protection was shortened to six months from one year, the source said.

The euro tranche, meanwhile, is priced at Euribor plus 400 bps with a 1.25% floor and an original issue discount of 991/2, revised from talk of 50 bps wide of the U.S. term loan with a 1.25% floor and a discount of 99, the source continued. This debt has 101 soft call protection for one year.

Recommitments are due on Wednesday.

Unifrax getting revolver

Unifrax's now $515 million credit facility (BB-) also includes a $50 million revolver.

Goldman Sachs & Co., Wells Fargo Securities LLC, KeyBanc Capital Markets LLC, GE Capital Markets and M&T Bank are leading the deal that will be used with $205 million of bonds to refinance existing debt and to help fund an acquisition.

The bond offering was downsized from $250 million as a result of the term loan upsizing, the source added.

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

Pharmaceutical Product flexes

Pharmaceutical Product Development trimmed pricing on its $1,455,000,000 first-lien covenant-light term loan (B+) due Dec. 5, 2018 to Libor plus 325 bps from Libor plus 350 bps and added a step-down to Libor plus 300 bps at less than 3.25 times gross first-lien leverage, according to a market source.

The loan still has a 1% Libor floor, a par offer price and 101 soft call protection for six months.

Recommitments were due at 5 p.m. ET on Tuesday, the source said.

Proceeds are being used to reprice the existing term loan from Libor plus 500 bps with a 1.25% Libor floor, and lenders are getting paid off at 101 as a result of existing call protection.

Credit Suisse Securities (USA) LLC is leading the deal.

Pharmaceutical Product Development is a Wilmington, N.C.-based product development and management services provider to the pharmaceutical research industry.

AlixPartners pricing

AlixPartners set the spread on its $100 million term loan B-1 due June 2017 and $505 million term loan B-2 due June 2019 at Libor plus 325 basis points, the tight end of the Libor plus 325 bps to 350 bps talk, and shortened the 101 soft call protection to six months from one year, a source said.

The term loan B-2 still has a 1.25% Libor floor, the term loan B-1 still has no floor and both term loans continue to be offered at par.

In addition, the covenant with respect to the prepayment of junior debt was revised to a 4.25 times first-lien leverage threshold from a 5.5 times total leverage threshold, the source remarked.

This Deutsche Bank Securities Inc.-led transaction is being used to reprice the existing term loan B-1 from Libor plus 425 bps with a 1.25% Libor floor and the existing term loan B-2 from Libor plus 525 bps with a 1.25% floor.

AlixPartners, a New York-based performance improvement, corporate turnaround and financial advisory services firm, was seeking recommitments for its repricing by 5 p.m. ET on Tuesday.

Cole Haan soft call

Cole Haan changed the 101 soft call protection on its $290 million seven-year covenant-light term loan (B2/B) to six months from one year, according to a market source.

Pricing on the loan is Libor plus 450 bps with a 1.25% Libor floor and an original issue discount of 991/2. Earlier in the syndication process, the loan was upsized from $270 million, pricing was cut from talk of Libor plus 500 bps to 525 bps and the discount was tightened from 99.

The company's $390 million credit facility also includes a $100 million asset-based revolver.

Jefferies & Co. is leading the deal that is expected to allocate on Wednesday.

Proceeds from the credit facility and equity will be used to help fund the buyout of the company by Apax Partners from Nike Inc. for $570 million in cash. The amount of equity being used was reduced when the term loan was upsized.

Closing is expected early this year.

Cole Haan is a New York-based designer and retailer of footwear, apparel and accessories.

Berry Plastics tack-on loan

Berry Plastics held a conference call in the afternoon, and a few hours before the call kicked off, the company disclosed that it would be presenting a $1 billion seven-year covenant-light first-lien incremental term loan (B+) to investors, according to a market source.

Price talk on the loan is Libor plus 300 bps with a 1% Libor floor and an original issue discount of 991/2, and there is 101 repricing protection for one year, the source remarked.

Commitments are due at 2 p.m. ET on Friday.

Credit Suisse Securities (USA) LLC is the lead bank on the deal that will be used to redeem second priority senior secured floating-rate notes due 2014, first priority senior secured floating-rate notes due 2015 and 10¼% senior subordinated notes due 2016.

Berry is an Evansville, Ind.-based manufacturer and marketer of plastic packaging products.

LifePoint incremental debt

LifePoint Hospitals announced on its morning lender call that it is seeking a $225 million 41/2-year senior secured incremental term loan B with talk of Libor plus 275 bps with no Libor floor, an original issue discount of 99½ and 101 soft call protection for one year, according to a market source.

Commitments are due on Feb. 5, the source said.

Citigroup Global Markets Inc., Bank of America Merrill Lynch and Barclays are leading the loan that will be used to repurchase 3¼% convertible subordinated notes, the source added.

LifePoint Hospitals is a Brentwood, Tenn.-based hospital company.

Ellucian releases details

Ellucian told investors on its call in the morning that it wants to get a $1.042 billion term loan and set talk at Libor plus 325 bps with a 1.25% Libor floor, a par offer price and 101 soft call protection for six months, according to a market source.

Proceeds will be used to an existing term loan that was done in 2011 at pricing of Libor plus 500 basis points with a 1.25% Libor floor.

Commitments are due at noon ET on Monday, the source said.

Bank of America Merrill Lynch, Barclays Capital Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and J.P. Morgan Securities LLC are leading the transaction.

Ellucian is a Fairfax, Va.-based provider of software and services to the education community.

BakerCorp holds call

BakerCorp hosted a lender call on Tuesday, launching a $385 million covenant-light term loan B due February 2020 with talk of Libor plus 300 bps with a 1.25% Libor floor, a par offer price and 101 soft call protection for one year, a source said.

Proceeds will be used to extend the existing term loan from 2018 and reprice its from Libor plus 375 bps with a 1.25% Libor floor.

Lead banks, Deutsche Bank Securities Inc. and Morgan Stanley Senior Funding Inc., are asking for commitments by 5 p.m. ET on Feb. 5, the source added.

BakerCorp is a Seal Beach, Calif.-based provider of equipment rental services for liquid and solid containment applications.

Harvard Drug repricing

Harvard Drug revealed on its call that it is asking lenders to reprice its $300 million term loan to Libor plus 375 bps with a 1.25% Libor floor from Libor plus 475 bps with a 1.25% Libor floor, according to a market source.

The repriced loan is being offered at par and will have 101 soft call protection for one year, and existing lenders are getting paid out at 101 due to current call protection, the source said.

Commitments are due at noon ET on Feb. 5.

Morgan Stanley & Co. LLC, Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. are leading the repricing for the Livonia, Mich.-based independent pharmaceutical distributor.

SuperValu guidance

SuperValu launched with a bank meeting its $1.5 billion covenant-light term loan (B1) due March 2019 with talk of Libor plus 575 bps with a 1.25% Libor floor, an original issue discount of 98½ and 101 soft call protection for one year, according to a market source.

The company's $2.4 billion credit facility also includes a $900 million asset-based revolver due March 2018 that is expected to have opening pricing of Libor plus 200 bps with a 37.5 bps unused fee. Pricing is grid-based and can range from Libor plus 175 bps to 225 bps and the unused fee can range from 25 bps to 37.5 bps.

Commitments are due during the week of Feb. 11. Closing is expected in the week of March 18.

SuperValu refinancing

Proceeds from SuperValu's credit facility will be used to replace a $1.65 billion asset-based revolver, an $846 million term loan and $490 million of 7½% bonds scheduled to mature in November 2014.

Wells Fargo Securities LLC, U.S. Bank, Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc., Barclays and Bank of America Merrill Lynch are the lead arrangers on the revolver, and Goldman Sachs, Credit Suisse, Morgan Stanley, Bank of America and Barclays are the lead arrangers on the term loan.

Closing is expected to occur this quarter.

Secured debt is 2.7 times, total debt is 4.1 times and net debt is 3.9 times.

SuperValu is an Eden Prairie, Minn.-based food wholesaler.

Tervita sets talk

Tervita came out with talk of Libor plus 525 bps to 550 bps with a 1.25% Libor floor, an original issue discount of 99 and 101 soft call protection for one year on its $500 million first-lien secured term loan B (B2/B-) that launched with a bank meeting on Tuesday, according to a market source.

Along with the term loan B, the company is looking to get a C$300 million revolver (Ba3).

Commitments are due on Feb. 8, the source said.

RBC Capital Markets, Goldman Sachs & Co., Deutsche Bank Securities Inc. and TD Bank are leading the deal that will be used, along with $1.1 billion equivalent senior secured notes, to repay all outstanding debt under the company's existing senior secured credit facility.

Closing is expected by the end of February.

Tervita is a Calgary-based environmental management company for the oil and gas industry.

Apple Leisure pricing

Apple Leisure launched its $150 million six-year first-lien term loan B (B+) with talk of Libor plus 500 bps with a 1.25% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, according to a market source.

Also, the company launched its $65 million seven-year second-lien term loan (CCC+) with talk of Libor plus 875 bps with a 1.25% floor, a discount of 98 and call protection of 103 in year one, 102 in year two and 101 in year three, the source said.

Jefferies & Co. is the lead bank on the $235 million credit facility that also includes a $20 million five-year undrawn revolver (B+).

Proceeds will back the already completed buyout of the company by Bain Capital.

First-lien leverage is 3.8 times and second-lien leverage is 5.8 times.

Apple Leisure is a Newton Square, Pa.-based travel and resort company.

Paradigm terms surface

Paradigm revealed talk of Libor plus 375 bps with a 1.25% Libor floor, a par offer price and 101 soft call protection for one year on the repricing of its $305 million covenant-light first-lien term loan that launched with a call in the afternoon, according to a market source.

Pricing on the loan is being taken down from Libor plus 525 bps with a 1.25% Libor floor, and existing lenders are being repaid at 101.

UBS Securities LLC is the lead bank on the deal.

Paradigm is a software vendor focused on the oil and gas exploration and production space.

TNS launches

TNS Inc. launched its $690 million senior secured credit facility with a bank meeting on Tuesday, and told investors that the deal is covenant-light, according to a market source.

The credit facility consists of a $50 million revolving facility (B1/BB-), a $540 million first-lien term loan (B1/BB-) and a $100 million second-lien term loan (Caa1/B).

Price talk on the term loans came in line with the early guidance disclosed last week, which is Libor plus 425 bps with a 1.25% Libor floor and an original issue discount of 99 on the first-lien, and Libor plus 825 bps with a 1.25% Libor floor and a discount of 98 on the second-lien.

The first-lien term loan has 101 soft call protection for one year, and the second-lien term loan has call protection of 102 in year one and 101 in year two, the source remarked.

TNS being acquired

Proceeds from TNS' credit facility and equity will be used to fund its buyout by Siris Capital Group for $21 per share in cash and refinance existing debt. The transaction is valued at about $862 million.

Commitments are due on Feb. 12, a second source added.

SunTrust Robinson Humphrey Inc. and Macquarie Capital (USA) Inc. are joint lead arrangers on the deal and bookrunners with Fifth Third Bank and KeyBanc Capital Markets LLC.

Closing is expected this quarter, subject to customary conditions, including the receipt of stockholder approval and the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act.

TNS is a Reston, Va.-based provider of data communications and interoperability services.

Microsemi on deck

Microsemi joined the repricing trend, scheduling a call for 11 a.m. ET on Wednesday to launch a repricing of its existing $726 million term loan from Libor plus 300 bps with a 1% Libor floor, according to a market source.

Morgan Stanley Senior Funding Inc. is lead bank on the deal.

Microsemi is an Aliso Viejo, Calif.-based provider of semiconductor services.

PQ coming soon

PQ set a call for 10 a.m. ET on Wednesday to launch a repricing of its $1.22 billion first-lien term loan due Feb. 9, 2018 to Libor plus 325 bps with a 1% Libor floor from Libor plus 425 bps with a 1% Libor floor, according to a market source.

The repriced loan is being offered at par and has 101 soft call protection for one year, and existing lenders are getting paid out at 101.

Credit Suisse Securities (USA) LLC is leading the deal.

PQ is a Malvern, Pa.-based producer of specialty inorganic performance chemicals and catalysts.

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