Virtu Financial breaks; Crosby Worldwide, Ascensus, Sandy Creek Energy Associates rework deals

By Sara Rosenberg

New York, Nov. 5 - Virtu Financial's (VFH Parent LLC) term loan emerged in the secondary market on Tuesday at levels above its original issue discount price, and Vince Intermediate Holding LLC's loan held steady from its recent breaking levels.

Moving to the primary, Crosby Worldwide Ltd. adjusted its first- and second-lien term loan sizes and pricing, and Ascensus Inc. trimmed coupons and Libor floors on its first- and second-lien term loans while also tightening the original issue discount on the first-lien tranche.

Also, Sandy Creek Energy Associates LP modified the discount price on its B loan, and Chromaflo Technologies, Serta Simmons Holdings LLC, RadioShack Corp., CHG Healthcare Services Inc. and Alvogen Pharma U.S. Inc. released pricing guidance with their launches.

Additionally, Energy Transfer Equity LP came out with talk on its upcoming deal, and Wesco Distribution Inc., TNT Crane & Rigging Inc., Nice-Pak Products, Travel Leaders Group LLC, Husky Injection Molding Systems, Bass Pro Group LLC and Pro Mach Inc. joined this week's calendar.

Virtu hits secondary

Virtu Financial's $510 million six-year first-lien term loan freed up on Tuesday, with levels quoted at par bid, par ½ offered, according to a market source.

Pricing on the term loan is Libor plus 450 basis points with a step-down to Libor plus 400 bps at the later of Feb. 5, 2014 and an initial public offering resulting in at least $100 million of proceeds. There is a 1.25% Libor floor and 101 soft call protection for one year, and the debt was issued at a discount of 991/2.

Late last month, the term loan was upsized from $405 million.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to refinancing an existing term loan, and as a result of the earlier upsizing, to fund a one time dividend.

Virtu is a New York-based electronic market maker and financial technology developer.

Vince holds steady

Also in trading, Vince Intermediate's $175 million six-year term loan B (B2/B) was seen at 99½ bid on Tuesday, in line with where it broke late in the prior session, according to a trader.

Pricing on the loan is Libor plus 500 bps with a step-down to Libor plus 475 bps when net total leverage is 2¼ times. There is a 1% Libor floor and 101 soft call protection for one year, the debt was issued at a discount of 99.

During syndication, the spread on the loan was increased from talk of Libor plus 425 bps to 450 bps, the step-down was added and the call protection was extended from six months.

Bank of America Merrill Lynch and J.P. Morgan Securities LLC are leading the deal that will be used to refinance existing debt.

Vince is a New York-based diversified apparel company.

Crosby restructures

Over in the primary, Crosby Worldwide upsized its seven-year first-lien term loan (B1/B) to $560 million from $530 million, trimmed the spread to Libor plus 300 bps from Libor plus 325 bps and moved the original issue discount to 99¾ from 991/2, while keeping the 1% Libor floor and 101 soft call protection for six months intact, according to a market source.

On the flip side, the eight-year second-lien term loan (Caa1/CCC+) was downsized to $90 million from $120 million, pricing was cut to Libor plus 650 bps from Libor plus 700 bps and the discount was changed to 99½ from 99, the source said. This tranche still has a 1% Libor floor and hard call protection of 102 in year one and 101 in year two.

The company's $715 million senior secured credit facility also provides for a $65 million five-year revolver (B1/B).

Commitments are due at the end of the day on Wednesday, moved up from a revised deadline of 10 a.m. ET on Thursday and an original deadline of Nov. 12, the source added.

Crosby lead banks

Morgan Stanley Senior Funding Inc., UBS Securities LLC, KKR Capital Markets, Deutsche Bank Securities Inc., Mizuho Securities USA Inc. and HSBC Securities (USA) Inc. are leading Crosby's credit facility.

Proceeds will be used to fund the buyout of the Crosby Group and Acco Material Handling Solutions by KKR from Melrose Industries plc for about $1 billion.

Closing is expected this quarter, subject to customary regulatory approvals.

Crosby is a Tulsa, Okla.-based provider of highly engineered services for lifting and rigging applications across the oil and gas, construction, mining and industrial sectors. Acco is a York, Pa.-based provider of custom-built specialty material handling equipment, including a full line of hoists, industrial cranes, monorails, carts and trailers.

Ascensus tweaks pricing

Ascensus cut pricing on its $200 million first-lien term loan (B1/B+) to Libor plus 400 basis bps Libor plus 425 bps, reduced the Libor floor to 1% from 1.25% and revised the original issue discount to 99½ from 99, according to a market source. The 101 soft call protection for one year was unchanged.

In addition, the Dresher, Pa.-based retirement plan services provider flexed its $92 million second-lien term loan (Caa1/CCC+) to Libor plus 800 bps from Libor plus 825 bps and lowered the Libor floor to 1% from 1.25%, the source said. The discount of 98½ and call protection of 103 in year one, 102 in year two and 101 in year three were left intact.

Proceeds from the $307 million credit facility, which also includes a $15 million revolver (B1/B+), will be used to fund the acquisition of Sallie Mae's 529 college savings plan administrator, Upromise Investments, and to refinance existing debt.

Leads, BMO Capital Markets and Golub Capital, were seeking recommitments by the end of the day on Tuesday, the source added.

Closing is expected in the fourth quarter, subject to a satisfactory Hart-Scott-Rodino review and other customary conditions.

Sandy Creek updates OID

Sandy Creek Energy changed the original issue discount on its $1,025,000,000 first-lien term loan B (Ba3/BB-) to 99½ from 99, while keeping pricing at Libor plus 400 bps with a 1% Libor floor, according to market sources.

The company's $1,202,000,000 credit facility also includes a $41 million revolver, a $34 million debt service reserve letter-of-credit facility, and a $102 million senior secured tax exempt letter-of-credit facility that has a 325 bps letter-of-credit fee.

Allocations are expected to go out on Wednesday, sources added.

Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC, BNP Paribas Securities Corp., CoBank, Credit Agricole CIB, ING Capital, Union Bank, Natixis, Investec and ICBC are leading the deal that will be used to refinance existing debt, pay swap breakage costs, fund operating reserves, repay Sandy Creek Energy Holdings' loan, which is currently held by affiliates of LS Power, and pay transaction- related fees and expenses.

Sandy Creek Energy Associates owns 64% of the Sandy Creek Energy Station plant, while Brazos Electric Power Cooperative Inc. owns a 25% interest, and the remainder is owned by Lower Colorado River Authority.

Chromaflo pricing

In more primary news, Chromaflo Technologies launched during the session its $310 million six-year covenant-light first-lien term loan B with talk of Libor plus 400 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

Meanwhile, the company's $130 million 61/2-year covenant-light second-lien term loan was launched at Libor plus 775 bps with a 1% Libor floor, a discount of 98½ and call protection of 102 in year one and 101 in year two, the source said.

Commitments are due on Nov. 18.

Deutsche Bank Securities Inc., Goldman Sachs Bank USA, Madison Capital and KeyBanc Capital Markets LLC are leading the $440 million deal that will be used to refinance existing debt and fund a dividend.

Chromaflo is an Ashtabula, Ohio-based supplier of chemical and pigment dispersions to the thermoset composites and architectural & industrial paint and coatings industries.

Serta guidance

Serta Simmons came out with talk of Libor plus 325 bps with a 1% Libor floor, a par offer price and 101 soft call protection for six months on its $1.28 billion senior secured term loan B due Oct. 1, 2019 that launched with a call, a market source remarked.

Proceeds will be used to reprice an existing term loan from Libor plus 375 bps with a 1.25% Libor floor.

Commitments are due on Nov. 13 and closing is targeted for the week of Nov. 18, the source added.

Morgan Stanley Senior Funding Inc., Deutsche Bank Securities Inc., Goldman Sachs Bank USA, UBS Securities LLC and Barclays are leading the deal.

Serta Simmons is a mattress manufacturer.

RadioShack launches ABLs

RadioShack disclosed price talk on its $585 million in five-year senior secured ABL revolvers that launched with a bank meeting, according to a market source, who explained that the company's $250 million secured term loan is not in market since it was placed with one lender.

Talk on the $535 million ABL tranche is a grid of Libor plus 200 bps to 250 bps, based on availability, and a 50 bps unused fee, and talk on the $50 million first-in-last-out ABL tranche is Libor plus 400 bps with no grid, the source said.

GE Capital Markets, CIT Corporate Finance, RBS Citizens and Salus Capital Partners are leading the $835 million credit facility that will be used to refinance the company's existing $450 million ABL credit facility, $75 million of term loans and $100 million second-lien term loan.

Closing is expected this quarter.

RadioShack is a Fort Worth-based retailer of mobile technology products and services and products related to personal and home technology and power supply needs.

CHG holds call

CHG Healthcare held its call, launching a repricing of its first-lien term loan with talk of Libor plus 325 bps to 350 bps with a 1% Libor floor, a par offer price and 101 soft call protection for six months, according to a market source.

The transaction will take term loan pricing down from Libor plus 375 bps with a 1.25% Libor floor.

Goldman Sachs Banks USA and Barclays are leading the deal.

CHG is a Salt Lake City-based health care staffing firm.

Alvogen add-on

Alvogen Pharma launched its $60 million add-on term loan B due May 2018 with original issue discount talk of 98 to 981/2, according to a market source, who said pricing will match the existing B loan at Libor plus 575 bps with a 1.25% Libor floor.

The add-on is non-callable until May 2014 and then has 101 hard call protection until May 2015.

Commitments are due at noon ET on Nov. 15, the source remarked.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to fund the acquisition of Naprelan and Furadantin.

Alvogen is a Pine Brook, N.J.-based pharmaceuticals company.

Energy Transfer floats talk

Energy Transfer Equity revealed talk of Libor plus 300 bps with a 0.75% Libor floor, an original issue discount of 99¾ and 101 soft call protection for six months on its previously announced $900 million six-year first-lien term loan that will launch with a call at 1 p.m. ET on Thursday, a market source said.

Credit Suisse Securities (USA) LLC is the left lead on the deal, and Goldman Sachs Bank USA is a lead too.

Proceeds will be used to help refinance an existing $900 million senior secured term loan due March 2017 and for general partnership purposes, including possibly funding some or all of the company's previously announced tender offer that expires on Nov. 27 for up to $400 million of its $1.8 billion 7½% senior notes due 2020.

Commitments for the term loan are due on Nov. 13 and closing is expected in the first week of December.

In addition to the term loan, the company is finalizing a new up to $600 million five-year revolver.

Energy Transfer Equity is a Dallas-based master limited partnership that owns natural gas, natural gas liquids, refined products and crude oil pipelines

Wesco readies loans

Wesco Distribution set a lender call for 10 a.m. ET on Wednesday to launch roughly $820 million in first-lien covenant-light term loans due December 2019, split between a $685 million tranche and a C$135 million tranche, according to a market source.

The U.S. term loan is talked at Libor plus 300 bps with a 0.75% Libor floor and the Canadian term loan is talked at BA plus 350 bps with a 1% floor, with both having a par offer price and 101 soft call protection for six months, the source remarked.

Credit Suisse Securities (USA) LLC is leading the deal, for which commitments are due on Nov. 14.

Proceeds will be used to refinance the existing U.S. term loan priced at Libor plus 350 bps with a 1% Libor floor and an existing Canadian term loan priced at BA plus 400 bps with a 1% floor.

Wesco is a Pittsburgh-based provider of electrical, industrial and communications MRO and OEM products, construction materials and advanced supply chain management and logistics services.

TNT Crane sets meeting

TNT Crane scheduled a bank meeting for 9 a.m. ET on Thursday to launch a $645 million credit facility that will help fund its buyout by First Reserve and management from Odyssey Investment Partners, according to a market source.

The facility consists of a $75 million five-year revolver, a $400 million seven-year first-lien term loan B and a $170 million eight-year second-lien term loan, the source said.

Goldman Sachs Bank USA, Macquarie Capital and RBC Capital Markets are leading the deal.

Closing is expected by year-end, subject to certain regulatory approvals.

TNT is a Houston-based provider of lifting services and equipment to customers in the energy and industrial infrastructure end markets.

Nice-Pak coming soon

Nice-Pak surfaced with plans to hold a bank meeting at 10 a.m. ET on Friday to launch a $230 million senior secured credit facility, according to a market source.

The facility consists of a $60 million five-year asset-based revolver and a $170 million six-year term loan B, the source said.

RBC Capital Markets is leading the deal that will be used to refinance existing debt.

Nice-Pak is an Orangeburg, N.Y.-based manufacturer of wet wipes for baby and healthcare applications.

Travel Leaders joins calendar

Travel Leaders Group set a bank meeting for 2:30 p.m. ET in New York on Wednesday to launch a $185 million credit facility, according to market sources.

The facility consists of a $15 million five-year revolver, and a $170 million six-year term loan B talked with a 1% Libor floor and 101 soft call protection, sources said.

UBS Securities LLC and Jefferies Finance LLC are leading the deal that will be used to fund the acquisition of the company.

Travel Leaders is a Plymouth, Minn.-based travel agency company.

Husky acquisition loan

Husky Injection Molding Systems scheduled a call for 1 p.m. ET on Wednesday a $160 million add-on term loan that will fund the acquisition of Schöttli Group, a Diessenhofen, Switzerland-based medical and closure mold making company, according to a market source.

The add-on is talked at Libor plus 325 bps with a 1% Libor floor and an original issue discount that is still to be determined, the source said.

Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc., RBC Capital Markets and TD Securities (USA) LLC are leading the deal.

Husky is a Bolton, Ont.-based supplier of injection molding equipment and services to the plastics industry.

Bass Pro on deck

Bass Pro Group will hold a call at 11 a.m. ET on Wednesday to launch a $250 million add-on term loan talked at Libor plus 300 bps with a 1% Libor floor, an original issue discount in the 99¼ area and 101 soft call protection for six months, according to sources.

The spread and floor are in line with existing term loan B pricing, and the existing tranche will get the same soft call protection as the add-on loan.

J.P. Morgan Securities LLC is leading the deal that will be used for general corporate purposes, which may include a dividend, and growth of the business.

Bass Pro is a Springfield, Mo.-based retailer of outdoor sports and recreation products.

Pro Mach plans call

Pro Mach scheduled a lender call for 11 a.m. ET on Wednesday to launch a repricing of $320 million first-lien term loan due July 16, 2017 and $55 million revolver, according to a market source.

The company will also ask for certain amendments to the credit agreement, the source said.

Barclays is leading the deal.

Pro Mach is a Loveland, Ohio-based provider of packaging machinery services and related aftermarket products to clients in the food, beverage, household goods and pharmaceutical industries.

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