Armstrong sets pricing, breaks; Attachmate rises; Sabre, CDW move around; Amscan may flex

By Sara Rosenberg

New York, Nov. 22 - Armstrong World Industries Inc. firmed pricing on its term loan B at the tight end of initial talk, added some call protection and then freed the deal up for trading, with levels quoted above the original issue discount price.

Also in trading, Attachmate Corp. was stronger on expectations of a refinancing with the acquisition of Novell Inc., Sabre Holdings was weaker as the company pulled its amendment and extension proposal, and CDW Corp. was better with the launch of its amend and extend deal.

Back over on the new deal front, Amscan Holdings Inc.'s was whispering revised price talk on its term loan and is expected to come out with official changes shortly, and Aveta Inc. released guidance on its term loan add-on as the deal was presented to lenders.

Furthermore, Atlantic Broadband Finance LLC lost some investors in its new credit facility as a result of its recent pricing flex, but given that the deal was so oversubscribed, the couple of dropouts are not affecting the changes.

In other news, Oceania Cruises Inc.'s amendment and extension has garnered approvals from first-lien lenders, but second-lien guys are holding up the works a bit, and tw telecom holdings inc. raised pricing on its proposed extended term loan.

Armstrong determines pricing

Armstrong World Industries set pricing on its $550 million 61/2-year term loan B at the low end of initial guidance and added 101 soft call protection for one year, according to a market source.

Pricing on the term loan B is Libor plus 350 basis points with a 1.5% Libor floor and an original issue discount of 991/2, the source said, versus talk at launch of Libor plus 350 bps to 375 bps with a 1.5% Libor floor and an original issue discount of 99 to 991/2.

The $1.05 billion senior secured credit facility (B1/BB-) also includes a $250 million five-year revolver and a $250 million five-year term loan A, with both of these tranches priced at Libor plus 300 bps.

Bank of America, Barclays and JPMorgan are the lead banks on the deal, with Bank of America the left lead.

Armstrong freed up

After finalizing the credit facility terms, Armstrong proceeded to break for trading, with the term loan B quoted at par ½ bid, 101 offered on the break and then it moved as high as par ¾ bid, 101¼ offered before settling in at par 5/8 bid, 101 1/8 offered, according to one trader.

A second trader, meanwhile, was still seeing the term loan quoted at par ¾ bid, 101¼ offered in the late afternoon.

Proceeds from the credit facility, along with cash on hand, will be used to fund a special cash dividend of $13.74 per share to common shareholders, or about $800 million in the aggregate, and refinance an existing $430 million credit facility.

Completion of the transaction is expected by year-end.

Armstrong is a Lancaster, Pa.-based designer and manufacturer of floors, ceilings and cabinets.

Attachmate gains ground

Attachmate's term loans were stronger by a few points during Monday's trading session as investors are anticipating being taken out with the new debt that is being raised for the Novell acquisition, according to a trader.

The first-lien term loan was quoted at 99 bid, par offered, up from 95 bid, 96 offered, and the second-lien term loan was quoted at 98 bid, 99 offered, up from 91 bid, 93 offered, the trader said.

Under the agreement, Attachmate is buying Novell for $6.10 per share in cash in a transaction valued at approximately $2.2 billion.

To fund the transaction, Attachmate has received a $1.09 billion debt commitment and a $425 million equity commitment.

Attachmate 2011 business

Attachmate's debt commitment includes plans for a new credit facility, which is expected to be launched to investors sometime next year, sources said.

Credit Suisse, RBC, Goldman Sachs and Citadel are the lead banks on the deal, with Credit Suisse the left lead.

Closing on the acquisition is expected to occur in the first quarter of 2011, subject to regulatory approvals and clearance under the Hart-Scott-Rodino Act, the concurrent sale by Novell of certain intellectual property assets to CPTN Holdings LLC and approval by Novell's stockholders.

Attachmate, a Seattle-based provider of access and integration software for legacy systems, is owned by an investment group led by Francisco Partners, Golden Gate Capital and Thoma Bravo. Novell is a Waltham, Mass.-based developer, seller and installer of enterprise software.

Sabre pulled amendment

Sabre Holdings' term loan headed lower in the secondary market following news that the company decided not to move forward with its amendment and extension because it was getting too expensive, according to traders.

The term loan was quoted by one trader at 94 bid, 94¼ offered, down from 94½ bid, 95¼ offered, by a second trader at 93½ bid, 94½ offered, down from 94½ bid, 95½ offered and by a third trader at 93 3/8 bid, 93 7/8 offered, down from 94 3/8 bid, 94 7/8 offered.

Under the amendment, the company was looking to extend $1 billion of its term loan to 2017 from September 2014 and its revolver to 2016 from March 2013.

Deutsche Bank was leading the transaction for the Southlake, Texas-based online travel company.

CDW amend/extend

CDW's term loan posted some gains on Monday as the company launched an amendment and extension proposal to lenders in the afternoon, according to traders.

The term loan was quoted by one trader at 95½ bid, 96½ offered, up from 94½ bid, 95 offered, and by a second trader at 95½ bid, 96 offered, up from 94¼ bid, 94¾ offered when the news of a transaction first hit but before details were available. A third trader saw the loan at 96 bid, 96½ offered after the lender call took place.

Under the amendment, the company is seeking to push out the maturity on $936 million - post a planned paydown - of its term loan to July 15, 2017 from Oct. 10, 2014 at pricing of Libor plus 500 bps versus Libor plus 400 bps on the non-extended. As of Sept. 30, there was about $2.17 billion of term loan debt outstanding.

CDW plans notes

In addition to the extension, CDW's credit facility amendment would allow the company to sell senior secured notes as long as proceeds from that debt are used to prepay term loan borrowings at par.

To that end, the company said in an 8-K filed with the Securities and Exchange Commission on Monday that it intends to offer $300 million of senior secured notes in a private placement.

JPMorgan and Deutsche Bank are the lead banks on the amendment and extension and are asking for consents/commitments by Nov. 29.

Lenders are being offered a 5 bps amendment fee and a 20 bps fee on extended debt.

CDW is a Vernon Hills, Ill.-based provider of technology products and services to business, government and education customers.

Amscan considering changes

Switching back to the primary market, Amscan was whispering new pricing of Libor plus 525 basis points, up from talk of Libor plus 450 bps to 475 bps, on its $675 million seven-year senior secured covenant-light term loan (B2/B), according to a market source.

And, while the chatter had the 1.5% Libor floor and original issue discount of 99 unchanged, there was talk that 101 soft call protection for one year will be added to the loan, the source said.

These possible revisions have not yet been made official, the source continued, adding that the official word on new terms will likely emerge on Tuesday.

Credit Suisse and Goldman Sachs are the joint lead arrangers on the deal, and they are bookrunners with Wells Fargo, Deutsche Bank and Barclays.

Amscan dividend recap

Proceeds from Amscan's term loan will be used to refinance an existing senior secured term loan due in 2013 and to fund a cash dividend of about $310 million.

In connection with the term loan, the company will amend its existing senior secured revolving credit facility to allow for the new debt.

Amscan is an Elmsford, N.Y.-based designer, manufacturer and distributor of decorated party goods and party accessories.

Aveta releases talk

Aveta launched its $100 million add-on term loan on Monday, at which time price talk of Libor plus 650 bps with a 2% Libor floor and an original issue discount of 98 was announced, according to a market source.

Bank of America is the lead bank on the deal that will be used to fund a dividend payment.

In connection with the new deal, the company is looking to amend its existing credit facility to allow for the transaction.

Under the amendment, pricing on the existing term loan will be increased to Libor plus 650 bps from Libor plus 600 bps, the call protection of 102, 101 will be restarted from the closing date, the excess cash flow sweep will be set at 75% until maturity and $15 million of the term loan will be repaid.

Aveta, a Fort Lee, N.J.-based medical management company, is also offering lenders a 50 bps amendment fee.

Atlantic Broadband changes

Atlantic Broadband's somewhat aggressive recent pricing changes to its $575 million five-year term loan B look like they pushed through as, even with some accounts opting out of the deal, there were more than enough guys left to fill it out, according to a market source.

Pricing on the term loan B is Libor plus 350 bps with a 1.5% Libor floor and an original issue discount of 991/2, after being revised on Friday from Libor plus 400 bps with a 1.5% floor and a discount of 99.

The company's $600 million senior secured credit facility (Ba3/B+) also includes a $25 million four-year revolver.

Atlantic Broadband leads

Credit Suisse and SunTrust are the lead banks on Atlantic Broadband's credit facility, with Credit Suisse the left lead.

Proceeds will be used to replace an existing $40 million revolver due in 2012 and a $436.5 million term loan due in 2013, to fund a $110 million cash dividend payment and to pay $39 million to redeem preferred stock.

Atlantic Broadband is a Quincy, Mass.-based cable provider.

Transtar readies deal

Also on Monday, news emerged that Transtar Industries Inc. is set to hold a bank meeting on Dec. 1 to launch a proposed $425 million credit facility that is being led by RBC, according to a market source.

The facility consists of a $50 million revolver, a $240 million first-lien term loan and a $135 million second-lien term loan, the source said.

Proceeds will be used to help fund the buyout of the company by Friedman Fleischer & Lowe.

Transtar is a Cleveland-based transmission parts provider.

Oceania second-lien

In more loan happenings, Oceania Cruises had to make some revisions to documentation, which would not affect the actual deal terms, to try to get approvals from second-lien lenders on its amendment and extension and gave these lenders some more time to provide their consents, according to a market source.

First-lien lenders, on the other hand, already approved the transaction, the source said.

Barclays is the lead bank on the deal.

Under the proposal, the company is looking to extend its $40 million revolver by three years to April 2015, its $266 million first-lien term loan by two years to April 2015 and its roughly $75 million second-lien term loan by 1¼ years to July 2015.

Oceania extended pricing

Pricing on Oceania's extended revolver and first-lien term loan will be Libor plus 475 bps, up from Libor plus 225 bps currently, and pricing on the extended second-lien loan will be Libor plus 875 bps, up from Libor plus 575 bps.

The extended revolver pricing will be subject to a pricing grid.

Lenders are being offered a 10 bps amendment fee.

Oceania Cruises is a Miami-based cruise line.

tw telecom lifts spread

tw telecom changed pricing on its proposed extended term loan to Libor plus 325 bps from talk of Libor plus 275 bps and is giving lenders until 5 p.m. ET on Tuesday for responses, as opposed to sticking with the original Monday deadline, according to a market source.

As was previously reported, the company is looking to extend the maturity of at least 50% of its $577.5 million term loan to December 2016 from January 2013. Pricing on the term loan is currently set at Libor plus 175 bps.

In addition, the company wants to extend its $80 million revolver to December 2014 from October 2011, and revolver lenders are being offered a 50 bps fee for extended commitments.

tw telecom revising covenants

tw telecom's amendment would also conform term loan covenants to the covenants in the company's 8% senior notes due 2018.

Lenders are being offered a 10 bps amendment fee.

Wells Fargo, Morgan Stanley and Credit Suisse are the lead banks on the amendment and extension, which is expected to be completed late this month or early next month.

tw telecom is a Littleton, Colo.-based ethernet service provider.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.