ILFC, Atkins price, trade higher; Philadelphia Energy upsizes; Wendy's brings $815 million repricing

By Paul A. Harris

Portland, Ore., April 3 - Cash loans were flat to a quarter-point higher in Wednesday trading, according to a trader from a mutual fund.

The LCDX19 index of bank loan credit default swaps was unchanged at 102 3/8 bid, 102 7/8 offered, according to a hedge fund manager.

In the primary market, loans from International Lease Finance Corp. and Atkins Nutritionals Holdings II Inc. priced and traded up.

Philadelphia Energy Solutions upsized its five-year term loan B (B1/BB-) to $550 million from $500 million.

And Wendy's International commenced an effort to reprice $815 million of its term loan maturing in May 2019.

ILFC prices $750 million

International Lease Finance priced its $750 million Libor plus 275 basis points term loan (Ba2/BBB-) at par, a market source said on Wednesday.

The deal allocated and broke to par ½ bid.

BofA Merrill Lynch was the lead arranger.

The deal came with a 0.75% Libor floor and 101 soft call protection for six months.

The issuer is an aircraft lessor based in Los Angeles.

Atkins allocates, trades up

Atkins priced and allocated its downsized first- and second-lien term loans on Wednesday, according to market sources.

The downsized $255 million Libor plus 500 bps 5.75-year first-lien loan (B1/B-) priced at 99.

The deal was trading at par 1/8 bid, par 5/8 offered late Wednesday morning, according to a trader.

The first-lien loan was downsized from $280 million. It has a 1.25% Libor floor and a 101 soft call.

The downsized $100 million Libor plus 850 bps six-year term loan (Caa1/CCC) priced at 98. It traded at par ½ bid late Wednesday morning, the trader said.

The second-lien tranche was decreased from $125 million.

The second-lien loan has a 1.25% Libor floor and call protection of 103 in year one, 102 in year two and 101 in year three.

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

The deal has a maximum total leverage ratio.

Proceeds will be used to refinance existing debt and fund a dividend.

SRAM upsizes, tightens

SRAM LLC upsized its term loan B due 2020 (B1/BB-) to $715 million from $675 million, a market source said on Wednesday.

The Libor spread tightened to 300 basis points from 325 bps.

The original issue discount remains unchanged at 99.5.

The 1% Libor floor also remains unchanged.

The term loan has 101 soft call protection for one year, the source said.

The loan is expected to price and allocate on Thursday.

J.P. Morgan Securities LLC is the lead bank on the deal.

Proceeds will be used to refinance an existing first-lien term loan and a portion of a second-lien term loan.

Sprouts sets talk

Sprouts Farmers Markets, LLC's $625 million seven-year first-lien covenant-lite term loan (B2/B+) is talked with a Libor spread of 375 to 400 basis points, according to a market source.

The deal, which comes with a 1% Libor floor, is talked to price at 99. It features a 25 bps step-down upon completion of an initial public offering of stock, or in the event that leverage declines to a to-be-determined level.

Commitments are due on Thursday.

Credit Suisse Securities (USA) LLC is the lead.

The loan comes with 101 repricing protection for one year.

The facility also includes a $50 million five-year revolver (B2/B+).

Proceeds will be used to fund a dividend and to refinance debt.

Philadelphia Energy upsizes

Philadelphia Energy Solutions upsized its five-year term loan B (B1/BB-) to $550 million from $500 million, a market source said on Wednesday.

As reported, earlier in the process of marketing the deal, the company cut the original issue discount to 98.5 from 98, a market source said on Wednesday.

Spread talk remains Libor plus 500 basis points with a 1.25% Libor floor, and the loan remains non-callable for one year, then at 102 in year two and 101 in year three.

J.P. Morgan Securities LLC is the lead bank on the deal.

Proceeds will be used for general corporate purposes and to fund a dividend. The additional proceeds resulting from the upsizing will not increase the dividend, which remains at $200 million, the source said on Wednesday.

A credit agreements restrictions covenant which bears upon future restricted payments will

also remain unchanged.

Sinclair tightens spread

Sinclair Television Group Inc. tightened the spread on its $400 million term seven-year loan B to Libor plus 225 basis points from earlier spread talk of 250 bps to 275 bps, a market source said on Wednesday.

Recommitments are due on Thursday.

Unchanged are the 0.75% Libor floor, the 99.75 OID, and the 101 soft call for six months.

The new $1 billion credit facility (Baa3/BB+) also features a $100 million five-year revolver and a $500 million five-year term loan A.

Price talk on the term loan A is Libor plus 225 basis points with no Libor floor.

J.P. Morgan Securities LLC, Wells Fargo Securities LLC and SunTrust Robinson Humphrey Inc. are the lead banks on the deal, and Deutsche Bank Securities Inc. and RBC Capital Markets are co-arrangers.

Proceeds will be used to refinance existing bank debt via an amendment and restatement to raise the new term loan and revolving commitments and to introduce increased incremental loan capacity, increased television station acquisition capacity and increased flexibility under negative covenants.

Other funds for the refinancing will come from $600 million of senior notes.

In addition, the new term loans, cash on hand and/or a draw under the new revolver, are expected to be used to fund the acquisitions of 18 television stations owned by Barrington Broadcasting Group LLC for $370 million and four television stations owned by COX Media Group for about $99 million.

The acquisitions are expected to close in the second quarter, so about $445 million of the new term loans are expected to be delayed draw.

Merge talks term loan

Merge Healthcare talked its $250 million six-year term loan (Ba2/B+) with a 450 basis points spread to Libor at 99.00, a market source said on Wednesday.

The loan has a 1% Libor floor and a 101 soft call in year one. It will also feature a total leverage covenant.

Commitments are due on April 17.

The $270 million credit facility also has a $20 million five-year revolver.

Jefferies & Co. is leading the transaction.

The Chicago-based company plans to use the proceeds to refinance $252 million of its 11¾% secured notes due 2015.

Merge Healthcare is an enterprise imaging-solutions provider focusing on software for the storage and sharing of medical images.

Playboy sets lender meeting

Playboy Enterprises plans to hold a lender call at 2 p.m. ET on Thursday, according to a market source.

Details will be made available at the time of the call.

Jefferies & Co. will is hosting the call.

Playboy originally came to market in February 2011 to support the buyout by co-investors Rizvi Traverse and Icon Acquisition Holdings.

Playboy is a Chicago-based media and lifestyle company.

Wendy's brings repricing

Wendy's commenced an effort to reprice $815 million of its term loan maturing in May 2019, market sources said on Wednesday.

The deal is talked at a 250 basis points Libor spread with a 1% Libor floor and 101 soft call protection for six months; the existing loan has a Libor plus 350 bps spread.

The repricing is talked at 99 7/8 to par.

Commitments are due on April 10.

BofA Merrill Lynch and Wells Fargo Securities LLC are the leads.

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