Genoa, American Airlines, Live Nation, ABB/Con-Cise break; Community Health, GNC retreat

By Sara Rosenberg

New York, Oct. 27 – Genoa, A QoL Healthcare Co. LLC and American Airlines Inc. freed up for trading on Thursday, Live Nation Entertainment Inc. emerged in the secondary after pricing on its term loan B finalized at the low end of revised guidance, and ABB/Con-Cise Optical Group LLC broke once its issue price firmed at the midpoint of revised talk.

In more trading news, Community Health Systems Inc.’s term loans retreated on the back of the release of disappointing preliminary financial and operating results for the third quarter, and GNC Holdings Inc.’s term loan softened with its quarterly earnings announcement.

Moving to the primary market, Advanced Disposal Services Inc. reduced the size of its term loan B and modified the original issue discount, and Safway Group Holding LLC accelerated the commitment deadline on its incremental term loan B.

Also, Telenet (Telenet International Finance Sarl/Telenet Financing USD LLC) approached lenders with a refinancing transaction, Sirva, CSRA Inc., Murray Energy Corp. and Planet Fitness Holdings LLC disclosed price talk with launch, and ProAmpac and Garda World Security Corp. joined the near-term calendar.

Genoa starts trading

Genoa, A QoL Healthcare’s credit facility broke for trading on Thursday, with the $620 million seven-year first-lien term loan quoted at par bid, 100½ offered and the $160 million eight-year second-lien term loan quoted at 99½ bid, 100½ offered, according to a market source.

Pricing on the first-lien term loan is Libor plus 375 basis points with a 1% Libor floor, and the debt was sold at an original issue discount of 99.5. Included in the loan is 101 soft call protection for six months.

The second-lien term loan is priced at Libor plus 800 bps with a 1% Libor floor and was issued at a discount of 98.5. This tranche has call protection of 102 in year one and 101 in year two.

On Wednesday, the first-lien term loan was upsized from $600 million and pricing was reduced from Libor plus 425 bps, the second-lien term loan was downsized from $180 million while the spread was cut from Libor plus 825 bps, and the MFN sunset was removed.

The company’s $830 million credit facility also includes a $50 million revolver.

Credit Suisse Securities (USA) LLC is leading the deal that will refinance debt and fund a dividend.

Genoa is a Tukwila, Wash.-based provider of mental health pharmacy services.

American Airlines frees up

American Airlines’ repriced $1 billion senior secured term loan due 2023 hit the secondary too, with levels quoted at 100 1/8 bid, 100 3/8 offered, a trader said.

Pricing on the loan is Libor plus 250 bps with a 0.75% Libor floor, and it was issued at par. The debt has 101 soft call protection for six months.

Barclays is the left lead on the deal that is repricing the existing 2023 term loan from Libor plus 275 bps with a 0.75% Libor floor.

The company was also seeking a repricing of its $970 million term loan B-1 due 2019, but that portion of the transaction was withdrawn. The repricing was talked at Libor plus 225 bps with no Libor floor, a par issue price and 101 soft call protection for six months, versus current pricing of Libor plus 275 bps with a 0.75% Libor floor.

American Airlines is a Fort Worth-based airline company.

Live Nation firms, breaks

Live Nation Entertainment set pricing on its $975 million seven-year term loan B (Ba2/BB) at Libor plus 250 bps, the tight end of revised talk of Libor plus 250 bps to 275 bps and down from initial talk of Libor plus 275 bps to 300 bps, a market source said.

As before, the term loan has no Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

With final terms in place, the term loan B freed to trade, with levels seen at par bid, 100½ offered, another source remarked.

J.P. Morgan Securities LLC is leading the deal that will be used with $575 million of senior notes to refinance existing bank debt and notes and for general corporate purposes.

Live Nation is a Beverly Hills, Calif.-based provider of live music concerts and live entertainment ticketing sales and marketing services.

ABB sets OID, trades

ABB/Con-Cise Optical finalized the original issue discount on its fungible $48 million senior secured covenant-light incremental first-lien term loan B (B1/B) due June 15, 2023 at 99.75, the middle of revised talk of 99.5 to par and tight of initial talk of 99.5, according to a market source.

The loan is priced at Libor plus 500 bps with a 1% Libor floor and has 101 soft call protection until December 2016.

By late day, the incremental loan began trading, and levels were quoted at 100¼ bid, 100¾ offered, a trader added.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to repay borrowings under the company’s revolving credit facility that were used to finance an acquisition.

Closing is targeted for Monday.

ABB/Con-Cise is a Coral Springs, Fla.-based optical distributor.

Community Health slides

Also in trading, Community Health’s term loans softened in reaction to the company’s late Wednesday release of preliminary third quarter numbers, according to a trader.

The term loan H was quoted at 96 bid, 96¾ offered, down from 98¾ bid, 99½ offered, and the term loan G was quoted at 96¼ bid, 96¾ offered, down from 98½ bid, 99 offered, the trader said.

For the quarter, the company anticipates net operating revenues of about $4.38 billion, compared with $4.85 billion for the same period in 2015, and adjusted EBITDA is expected to be around $465 million, versus $661 million in the prior year.

Also, income from continuing operations attributable to common stockholders for the quarter is expected to be a loss of $0.69 per diluted share, compared with a gain of $0.51 per diluted share in the 2015 quarter, and income from continuing operations before income taxes is anticipated to be a loss of around $83 million, versus a gain of $121 million in the previous year.

The Franklin, Tenn.-based hospital company attributed the lower than anticipated results to lower than expected volume and the resulting lower net operating revenues, as well as larger than anticipated reductions to reimbursement from state supplemental programs and the failure to achieve expected expense reductions.

GNC weakens

GNC’s term loan fell to around 98 bid, 98¾ offered from 99½ bid, 100½ offered after the company came out with third quarter results that fell short of expectations, a trader said.

For the quarter, the company reported consolidated revenue of $628 million, down 8.1% from consolidated revenue of $683.4 million for the third quarter of 2015.

And, net income for the quarter was $32.4 million, or $0.47 per diluted share, versus net income of $45.8 million, or $0.54 per diluted share, in the prior year.

GNC is a Pittsburgh-based specialty health, wellness and performance retailer.

Advanced Disposal tweaked

Switching to the primary market, Advanced Disposal Services trimmed its seven-year covenant-light term loan B to $1.5 billion from $1.54 billion and changed the discount to 99.75 from 99.5, according to a market source.

The term loan is still priced at Libor plus 275 bps with a 0.75% Libor floor, and has 101 soft call protection for six months.

The company’s now $1.8 billion credit facility (B1/BB) also includes a $300 million revolver.

Commitments were due at 5 p.m. ET on Thursday, the source said.

Deutsche Bank Securities Inc., Barclays, Credit Suisse Securities (USA) LLC, UBS Investment Bank and Macquarie Capital (USA) Inc. are leading the deal that will be used with $425 million of senior unsecured notes to refinance an existing term loan B, revolver and 8¼% senior notes due 2020.

The source explained that the term loan was downsized because of proceeds being raised from the underwriters’ recent decision to exercise their option to purchase an additional 2,887,500 shares of Advanced Disposal’s common stock at the initial public offering price of $18.00 per share.

Advanced Disposal is a Ponte Vedra, Fla.-based provider of non-hazardous solid waste services.

Safway moves deadline

Safway revised the commitment deadline on its fungible $160 million senior secured incremental covenant-light first-lien term B (B3/B+) due Aug. 19, 2023 to 5 p.m. ET on Thursday from this coming Monday, a market source said.

The incremental term loan is talked at Libor plus 475 bps with a 1% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection until August 2017.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used with an ABL draw to fund the acquisition of SafeWorks and pay related fees and expenses.

Safway is a Waukesha, Wis.-based provider of access, scaffolding, insulation, fireproofing, surface preparation and coatings solutions.

Telenet launches

Telenet held a lender meeting at 10:30 a.m. ET on Thursday to launch a $750 million eight-year senior secured term loan B and a €500 million eight-year senior secured term loan B, according to a market source.

The U.S. term loan is talked at Libor plus 300 bps to 325 bps with no Libor floor and an original issue discount of 99.5, and the euro term loan is talked at Euribor plus 325 bps to 350 bps with no floor and a discount of 99.75, and both loans (B1/B+/BB) heave 101 soft call protection for six months, the source said.

Commitments are due at 4 p.m. ET on Wednesday.

The bookrunners on the U.S. term loan B are Goldman Sachs Bank USA, BNP Paribas Securities Corp., Deutsche Bank Securities Inc., ING Capital Markets, J.P. Morgan Securities LLC, Rabobank, RBC Capital Markets and SG Americas Securities LLC, with Goldman the left lead, and bookrunners on the euro term loan B are BNP Paribas, Deutsche Bank, Goldman Sachs, JPMorgan, RBC, RBS, Scotiabank and SG, with BNP the left lead.

Telenet, a Mechelen, Belgium-based cable operator, will use the new debt to refinance existing loan drawings.

Sirva reveals guidance

Sirva came out with talk of Libor plus 600 bps to 625 bps with a 1% Libor floor, an original issue discount of 98.5 and 101 soft call protection for one year on its $300 million six-year term loan B that launched with a bank meeting in the morning, a market source remarked.

The company’s $350 million senior secured credit facility (B2/B) also includes a $50 million revolver.

Commitments are due on Nov. 11, the source added.

Goldman Sachs Bank USA and Jefferies Finance LLC are leading the deal that will be used to refinance existing debt.

Sirva is an Oakbrook Terrace, Ill.-based provider of end-to-end relocation and moving solutions to corporations, government agencies and individual consumers.

CSRA details surface

CSRA held its call, launching a repricing of its $466 million term loan B that is talked at Libor plus 250 bps with a 0.75% Libor floor and a par issue price, and an extension of the maturity by one year, according to a market source.

The repricing will take the term loan B down from Libor plus 300 bps with a 0.75% Libor floor.

Consents are due by 5 p.m. ET on Nov. 3, the source said.

RBC Capital Markets LLC, MUFG, Bank of America Merrill Lynch and Scotiabank are leading the deal.

CSRA is a Falls Church, Va.-based provider of IT solutions and professional services to U.S. federal and local government agencies.

Murray holds call

Murray Energy hosted a lender call at 1 p.m. ET, launching a $175 million senior secured first-lien term loan B-3 due April 16, 2020 with talk of Libor plus 775 bps with a 1% Libor floor and an original issue discount of 92 to 93, a source said.

Commitments are due at 5 p.m. ET on Wednesday, the source added.

Goldman Sachs Bank USA and Deutsche Bank Securities Inc. are leading the deal that will be used to refinance an existing senior secured term loan B-1 due April 2017.

Murray Energy is a St. Clairsville, Ohio-based coal company.

Planet Fitness talk

Planet Fitness launched with a call a fungible $230 million incremental covenant-light term loan B (B1/BB-) due March 2021 talked at Libor plus 350 bps with a 0.75% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, according to a market source.

J.P. Morgan Securities LLC is leading the deal that will be used to fund a special dividend to shareholders and for general corporate purposes.

In addition, the company is looking to revise its credit agreement to increase the non-U.S. investment capacity, the non-U.S. debt capacity and the available amount starter basket, the source added.

Planet Fitness is an operator of health clubs.

ProAmpac on deck

Also in the primary market, ProAmpac scheduled a bank meeting in New York for Wednesday to launch a $1.12 billion credit facility, according to a market source.

The facility consists of a $75 million five-year revolver, an $830 million seven-year covenant-light first-lien term loan and a $215 million eight-year second-lien term loan, the source said.

Antares Capital is leading the deal that will be used to help fund the buyout of the company by Pritzker Group Private Capital from Wellspring Capital Management.

Closing is expected in November.

ProAmpac is a Cincinnati-based flexible packaging company.

Garda readies loan

Garda World Security set a lender call for 11 a.m. ET on Monday to launch a $125 million add-on first-lien term loan, a market source remarked.

Macquarie Capital (USA) Inc. is leading the deal that will be used to repay revolver borrowings and increase liquidity.

Garda is a Montreal-based provider of business solutions and security services.

Micron closes

In other news, Micron Technology Inc. closed on the repricing of its $748,125,000 covenant-light term loan B due April 26, 2022, according to an 8-K filed with the Securities and Exchange Commission.

Pricing on the repriced loan is Libor plus 375 bps with no Libor floor, and it was issued at par. The debt has 101 soft call protection for six months.

Morgan Stanley Senior Funding Inc. led the deal that repriced the existing term loan B from Libor plus 600 bps with no Libor floor.

Micron is a Boise, Idaho-based semiconductor company.

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