Alliance HealthCare, BlackBrush, Hubbard free to trade; NCI trims pricing; Yankee sets talk

By Sara Rosenberg

New York, May 31 - Alliance HealthCare Services Inc.'s credit facility hit the secondary market on Friday, with the strip of funded and delayed-draw term loan debt seen above its original issue discount price, and BlackBrush TexStar LP and Hubbard Radio LLC began trading, too.

Over in the primary, NCI Building Systems Inc. reduced the spread on its well received term loan, Yankee Candle Co. Inc. released term loan price talk with its launch, and Emerald Expositions Holdings and Sapphire Power Holdings joined the forward calendar.

Alliance HealthCare breaks

Alliance HealthCare's credit facility freed up for trading o Friday, with the strip of $340 million six-year first-lien term loan debt and $80 million delayed-draw term loan debt quoted at par bid, par ½ offered, according to a market source.

Pricing on the term loans is Libor plus 325 basis points with a 1% Libor floor, and they were sold at an original issue discount of 991/2. There is 101 soft call protection for six months.

During syndication, pricing on the funded term loan was reduced from Libor plus 350 bps and the delayed-draw term loan was added to the capital structure.

The company's $470 million credit facility (Ba3/BB-) also provides for a $50 million five-year revolver that has pricing ranging from Libor plus 300 bps to 325 bps based on leverage, with a 1% Libor floor and a 50 bps unused fee that can step-down to 37.5 bps depending on leverage. Lenders are being paid a 50 bps upfront fee.

Alliance repaying debt

Proceeds from Alliance HealthCare's credit facility will be used to refinance existing credit facility debt, and the funds from the delayed-draw term loan will be used to call $80 million of the company's 8% senior notes.

The company's term loan that is being taken out with this transaction carried pricing of Libor plus 525 bps with a 2% Libor floor.

Credit Suisse Securities (USA) LLC, Jefferies Finance LLC, SunTrust Robinson Humphrey Inc. and Deutsche Bank Securities Inc. are the lead banks on the new credit facility.

Closing is expected to take place on or about Monday.

Alliance HealthCare is a Newport Beach, Calif.-based provider of advanced outpatient diagnostic imaging and radiation therapy service.

Blackbrush tops OID

BlackBrush TexStar's credit facility also hit the secondary market, with the $640 million six-year senior secured term loan (Caa1/B-) quoted at 99¾ bid, par ¾ offered, according to a market source.

Pricing on the term loan is Libor plus 650 bps with a 1.25% Libor floor, and it was sold at an original issue discount of 99. There is hard call protection of 102 in year one and 101 in year two.

Recently, the term loan was downsized from $675 million and pricing firmed at the low end of the Libor plus 650 bps to 700 bps talk.

With the term loan downsizing, the company added a $35 million five-year super-priority revolver to its capital structure that is priced at Libor plus 250 bps.

Closing is targeted for early in the June 3 week, the source added.

UBS Investment Bank and Credit Suisse Securities (USA) LLC are leading the deal that will be used to refinance existing debt and pre-fund capital expenditures.

BlackBrush TexStar is a San Antonio-based oil and gas company.

Hubbard hits secondary

Hubbard Radio's $358 million term loan B due April 29, 2019 broke as well, with levels quoted at par ¾ bid, 101¼ offered, a market source said.

With this transaction, the company extended the maturity on its term loan B by two years, and amended its credit agreement to revise the incremental allowance to $75 million subject to a 4.75 times first-lien secured leverage ratio, instead of it being subject to a 4.25 times first-lien secured leverage ratio.

Pricing on the B loan is Libor plus 350 bps with a 1% Libor floor and there is 101 soft call protection through August 2013, same as before the extension.

Lenders were offered a 5 bps amendment fee.

Morgan Stanley Senior Funding Inc. is leading the deal that is expected to close during the week of June 3, the source added.

Hubbard Radio is a Minneapolis-St. Paul-based broadcasting company.

NCI Building flexes

Moving to the primary, NCI Building Systems trimmed pricing on its $240 million six-year first-lien covenant-light term loan (B2/BB-) to Libor plus 325 bps from talk of Libor plus 350 bps to 375 bps, according to a market source.

The loan still has a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months.

Recommitments were due at noon ET on Friday and allocations are expected during the week of June 3, the source added.

Credit Suisse Securities (USA) LLC, RBC Capital Markets, UBS Investment Bank and Citigroup Global Markets Inc. are leading the loan that will be used to refinance the company's existing term loan in connection with the conversion of its preferred shares to common shares by Clayton, Dubilier & Rice LLC.

NCI is a Houston-based manufacturer of metal products for the nonresidential building industry.

Yankee Candle guidance

Yankee Candle held its bank meeting on Friday morning, launching its $950 million seven-year first-lien term loan with talk of Libor plus 300 bps to 325 bps with a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months, according to a market source.

The company's $1,125,000,000 senior secured credit facility also includes a $175 million five-year amended ABL revolver.

Lead banks, Barclays and Bank of America Merrill Lynch, are asking for commitments by noon ET on June 12, the source said.

Proceeds, along with a contemplated $450 million notes offering, will be used to fund a distribution to equity holders and to refinance all of the company's existing debt.

Net senior secured leverage is 4.6 times, net total leverage is 6.75 times and net lease adjusted leverage is 6.97 times, the source added.

Yankee Candle is a South Deerfield, Mass.-based designer, manufacturer, wholesaler and retailer of scented candles.

Emerald readies loan

Emerald Expositions set a bank meeting for 10 a.m. ET on Monday to launch a $430 million term loan that has 101 soft call protection for six months, according to sources.

Bank of America Merrill Lynch, Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc., RBC Capital Markets and UBS Investment Bank are leading the deal.

Proceeds from the term loan and around $350 million in equity will help fund Onex Corp.'s $950 million buyout of Nielsen Expositions from Nielsen Holdings NV.

Closing is expected this quarter, subject to customary conditions.

Nielsen Expositions is a San Juan Capistrano, Calif.-based operator of large, business-to-business tradeshows.

Sapphire on deck

Sapphire Power scheduled a bank meeting for Tuesday to launch a $350 million seven-year covenant-light term loan, according to a market source.

Goldman Sachs Bank USA and Deutsche Bank Securities Inc. are leading the loan that will be used to refinance existing debt, fund a debt service reserve account and pay a dividend.

Sapphire Power is an Austin, Texas-based power company consisting of seven, mid-merit, natural gas-fired, combined cycle power generation units and one natural gas-fired, peaking unit.

Entravision closes

Entravision Communications Corp. closed on its $425 million secured credit facility (B2/B+) that consists of a $30 million five-year revolver, a $375 million seven-year covenant-light delayed-draw term loan and a $20 million term loan, according to a news release.

Proceeds from the delayed-draw term loan will be used to repay in full the new $20 million term loan and redeem 8¾% senior notes due 2017 when they are callable in August. The revolver will be used for working capital needs and other general corporate purposes.

Pricing on the delayed-draw term loan is Libor plus 250 bps with a 1% Libor floor, and it was issued at par. There is 101 soft call protection for six months and a ticking of 75 bps that starts on day 31.

During syndication, the spread on the term loan was reduced from talk of Libor plus 275 bps to 300 bps, the offer price firmed at the tight end of the 99½ to par talk, and the ticking fee was reduced from a third of the spread.

GE Capital Markets led the deal.

Entravision is a Santa Monica, Calif.-based diversified Spanish-language media company.

Clear Channel wraps

Clear Channel Communications Inc. closed on its $5 billion term loan D (Caa1/CCC+) due 2018, according to a news release.

Pricing on the D loan is Libor plus 675 bps with no Libor floor, and it was issued at par.

During syndication, the loan was upsized from $1.5 billion and pricing was raised from Libor plus 600 bps.

Goldman Sachs & Co., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Banks Securities Inc., Morgan Stanley Senior Funding Inc. and Wells Fargo Securities LLC lead the deal that was used to take out term loan B and term loan C debt due in 2016 priced at Libor plus 365 bps with no floor.

Clear Channel is a San Antonio-based media and entertainment company.

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