Protection One breaks; Telesat dips with refi; Orbitz, Jarden, DJO, McGraw, Sun revise deals

By Sara Rosenberg

New York, March 15 - Protection One Inc.'s credit facility freed up for trading on Friday, with the term loan quoted above its issue price, and Telesat Canada's term loan B headed lower as the company announced plans to refinance the debt.

Moving to the primary, Orbitz Worldwide Inc. lifted its term loan C size and shortened call protection on the tranche, as well as on its term loan B, and Jarden Corp. added a term loan A-1 to its deal and firmed term loan B pricing at the low end of talk.

Also, DJO Finance LLC lowered the coupon on its term loan, McGraw-Hill Global Education Holdings LLC upsized its term loan for a second time, and Sun Products Corp. raised the spread on its term loan while extending the call protection.

Furthermore, Weight Watchers International Inc. and Rock Ohio Caesars (ROC Finance LLC) began circulating pricing guidance on their upcoming deals, and MoneyGram International Inc. surfaced with new loan plans.

Protection One hits secondary

Protection One's credit facility broke for trading on Friday, with the $591 million term loan B due March 2019 quoted at par ½ bid, 101¼ offered, according to a trader.

Pricing on the term loan is Libor plus 325 basis points with a 1% Libor floor, and it was issued at par. There is 101 soft call protection for one year.

During syndication, pricing on the loan was decreased from Libor plus 350 bps and the call protection was extended from six months.

The company's $631 million credit facility (B+) also includes a $40 million revolver due March 2017.

J.P. Morgan Securities LLC and Barclays are leading the deal that will be used to refinance an existing $25 million revolver and $541 million term loan B and add cash to the balance sheet.

Protection One is a Romeoville, Ill.-based alarm and security services provider.

Telesat softens

Telesat's term loan B due March 2019 dropped to par 3/8 bid, from par ½ bid, 101 offered with news of a refinancing proposal, according to a trader.

In order to take out the U.S. term loan and an existing Canadian term loan B due March 2019, the company expects to get a roughly $1,712,000,000 U.S. term loan B due March 2019 that is talked at Libor plus 275 bps to 300 bps with a 0.75% Libor floor and a roughly $174 million Canadian term loan B due March 2019 that is talked at BA plus 325 bps to 350 bps with a 1% floor, a source said.

Both term loans have an original issue discount of 99¾ and 101 soft call protection for one year.

J.P. Morgan Securities LLC, UBS Securities LLC, Credit Suisse Securities (USA) LLC and Morgan Stanley Senior Funding Inc. are leading the $1,886,000,000 deal that will launch with a lender call at 10:45 a.m. ET on Monday, the source added.

Telesat is an Ottawa-based fixed satellite services operator.

Orbitz upsizes

Over in the primary, Orbitz raised its six-year term loan C to $300 million from $250 million and changed the repricing protection to 101 for one year, from 102 in year one and 101 in year two, according to market sources.

As before, the term loan C, which amortizes at a rate of 1% per annum, is priced at Libor plus 675 bps with a 1.25% Libor floor and an original issue discount of 99.

In addition to the term loan C, the Chicago-based online travel agency is getting a $150 million 41/2-year term loan B that is priced at Libor plus 600 bps with a 1.25% Libor floor and an original issue discount of 99 and amortizes at a rate of 10% per annum.

The B loan saw its repricing protection revised to 101 for one year, from 102 in year one and 101 in year two as well, sources said.

Proceeds from the now $500 million credit facility (B+), which also includes a $50 million revolver, will be used to refinance existing debt and for general corporate purposes, and the additional amount raised through the upsizing will be put into a restricted account to collaterize letters of credit.

Recommitments for the Credit Suisse Securities (USA) LLC-led deal were due by 4 p.m. ET on Friday.

Jarden updates emerge

Jarden added a $250 million term loan A-1 due March 31, 2016 to its capital structure that is priced at Libor plus 200 bps with no step-downs and has 101 soft call protection for six months, according to a market source.

Also, the company finalized pricing on its $640 million term loan B due March 31, 2018 at Libor plus 250 bps, the tight end of the Libor plus 250 bps to 275 bps guidance, while keeping the par offer price and 101 soft call protection for six months intact, the source said. There is no Libor floor.

The company's now $1,736,000,000 senior secured credit facility also provides for a $250 million revolver due March 31, 2016 and a $596 million term loan A due March 31, 2016, with both of these tranches still priced at Libor plus 200 bps, with step-downs based on leverage.

Commitments were due at 5 p.m. ET on Friday, the source continued.

Jarden refinancing debt

Proceeds from Jarden's credit facility will be used to take out/reprice an existing credit facility, and the new term loan A-1 will be used to help fund a tender offer that expires on April 11 for the company's $300 million 8% senior notes due 2016.

The company's existing credit facility includes a revolver and term loan A that mature in March 2016 and are priced at Libor plus 225 bps and a term loan B that matures in January 2017 and is priced at Libor plus 300 bps.

Barclays, J.P. Morgan Securities LLC and Wells Fargo Securities LLC are the bookrunnners on the deal.

Jarden is a Rye, N.Y.-based provider of diversified niche consumer products, small appliances, household products, fishing and outdoor products and sports equipment.

DJO flexes

DJO Finance cuts pricing on its $862 million first-lien term loan due September 2017 to Libor plus 375 bps from Libor plus 400 bps, while leaving the 1% Libor floor, par offer price and 101 soft call protection for one year unchanged, according to a market source.

The company's $962 million credit facility also includes a $100 million revolver due March 2017.

Recommitments were due at 4 p.m. ET on Friday, the source said.

Credit Suisse Securities (USA) LLC, UBS Securities LLC, Goldman Sachs & Co., Well Fargo Securities LLC and Macquarie Capital are leading the deal that will be used to reprice an existing term loan B-2 and term loan B-3 down from Libor plus 500 bps with a 1.25% Libor floor.

DJO is a Vista, Calif.-based leading developer, manufacturer and distributor of medical devices that provide solutions for musculoskeletal health, vascular health and pain management.

McGraw ups loan again

McGraw-Hill Global Education lifted its six-year covenant-light term loan to $810 million from a revised amount of $610 million and an initial size of $560 million, according to a market source.

On the flip side, the company's secured bond offering was reduced to $800 million from a most recent size of $1 billion and an initial size of $1.05 billion.

Pricing on the term loan is Libor plus 775 bps with a 1.25% Libor floor and an original issue discount of 97, and there is 101 soft call protection for one year.

Earlier in syndication, the spread on the loan was increased from talk of Libor plus 650 bps to 700 bps and the discount was revised from 98.

Recommitments are due at 5 p.m. ET on Friday.

The company's now $1.05 billion senior secured credit facility (B2/NA/BB), up from $850 million, also includes a $240 million five-year revolver.

McGraw lead banks

Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc., Jefferies & Co., UBS Investment Bank, Nomura and BMO Capital Markets Corp. are leading McGraw-Hill Education's credit facility.

Proceeds from the loan and notes will be used to help fund the buyout of the company by Apollo Global Management LLC from McGraw-Hill Cos. for $2.5 billion, subject to certain closing adjustments.

As part of the transaction, McGraw-Hill will receive an additional $150 million in cash at closing from the investment funds affiliated with Apollo Global Management, instead of being issued $250 million in face amount of unsecured notes by a holding company of McGraw-Hill Education.

Closing is subject to regulatory approval and customary conditions.

McGraw-Hill Education is a New York-based digital learning company.

Sun raises pricing

Sun Products raised the coupon on its $1,055,000,000 seven-year senior secured term loan B (B1/B-) to Libor plus 425 bps from talk of Libor plus 375 bps to 400 bps and pushed out the 101 soft call protection to one year from six months, according to a market source.

The loan still has a 1.25% Libor floor and an original issue discount of 99.

Earlier in the syndication process, the term loan was downsized from $1.08 billion as the company's bond deal was upsized to $575 million from $500 million.

Recommitments for the $1,155,000,000 billion credit facility, which also includes a $100 million five-year revolver, are due at 3 p.m. ET on Monday, the source continued.

J.P. Morgan Securities LLC, Barclays, Morgan Stanley Senior Funding Inc., Bank of America Merrill Lynch and Goldman Sachs & Co. are leading the deal that will refinance existing debt, and, as a result of the bond upsizing, redeem preferred shares.

Sun Products is a Wilton, Conn.-based manufacturer of branded and retailer brand fabric care and dish care products.

Weight Watchers guidance

In more primary news, Weight Watchers will be holding a call at 10 a.m. ET on Monday to launch a $2.4 billion term loan B due March 2020, and talk on the debt has come out at Libor plus 300 bps with a 0.75% Libor floor, an original issue discount that is still to be determined and 101 soft call protection for one year, according to a market source.

J.P. Morgan Securities LLC is leading the loan for the New York-based provider of weight management services.

Proceeds will repay the company's existing term loan B due 2014, term loan C due 2015, term loan D due 2016, term loan E due 2017 and term loan F due 2019.

Rock Ohio readies deal

Rock Ohio Caesars set a call for 2 p.m. ET on Monday to launch a $570 million credit facility that includes a $35 million five-year revolver and a $535 million six-year first-lien covenant-light term loan, according to a market source.

The term loan is talked at Libor plus 450 bps to 475 bps with a 1.25% Libor floor, an original issue discount of 99½ and 101 soft call protection for one year, the source said.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Wells Fargo Securities LLC are leading the deal that will be used to refinance existing first-lien debt and fund the acquisition of the Higbee Building.

Rock Ohio is a casino operator in the Midwest. The company is a joint venture formed by Rock Gaming LLC and Caesars Entertainment Corp.

MoneyGram on deck

MoneyGram will hold a bank meeting on Monday to launch an $850 million seven-year covenant-light term loan B and a five-year revolver, the size of which is not yet available, according to a market source.

The revolver has maximum leverage, minimum interest coverage and minimum liquidity covenants.

Bank of America Merrill Lynch, Wells Fargo Securities LLC, J.P. Morgan Securities LLC, Deutsche Bank Securities Inc. and Credit Agricole Securities (USA) Inc. are leading the deal that will be used to refinance 13¼% second-lien notes due 2018 and existing term loans.

MoneyGram is a Dallas-based provider of money transfer and payment services.

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