NCI Building breaks; Cengage Learning slides on upcoming auction; MacDermid tweaks deal

By Sara Rosenberg

New York, June 4 - NCI Building Systems Inc.'s covenant-light term loan freed up for trading during Tuesday's session, with levels seen above its original issue discount price, and Cengage Learning Acquisitions Inc.'s term loans weakened with auction news.

Moving to the primary market, MacDermid Inc. upsized its second-lien term loan while cutting the spread and revising the call protection. The coupon and original issue discount on the first-lien term loan were tightened as well.

Also, Asurion LLC, Appvion, Sapphire Power Holdings, Navios Maritime Partners LP and VWR Funding Inc. disclosed price talk with launch.

Furthermore, Stallion Oilfield Holdings Inc., AMF Bowling Centers Inc. (Bowlmor AMF) and National Financial Partners Corp. revealed timing on their new deals, and Travelport LLC, Walter Energy Inc., Weather Co. and AMR Corp. joined this week's calendar.

NCI Building frees up

NCI Building's roughly $238.4 million six-year first-lien covenant-light term loan (B2/BB-) hit the secondary market on Tuesday, with levels quoted at par bid, according to a market source.

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

Last week, pricing on the loan was reduced from talk of Libor plus 350 bps to 375 bps as a result of strong demand.

Credit Suisse Securities (USA) LLC, RBC Capital Markets, UBS Investment Bank and Citigroup Global Markets Inc. are leading the deal that will be used to refinance the company's existing term loan.

The refinancing is being done in connection with the conversion of the company's preferred shares to common shares by Clayton, Dubilier & Rice LLC.

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

Cengage softens

Also in trading, Cengage Learning's term loans were lower as word surfaced that there would be an auction for about $24.2 million of the extended tranche and about $62.5 million of the non-extended tranche, according to a trader.

Bids are due at 8 a.m. ET on Wednesday. There is an 80 reserve price, and the seller has the right not to trade, the trader remarked.

With the news, the extended term loan was quoted at 78 bid, 78¾ offered, down from 78½ bid, 79½ offered on the open and 79 bid, 80 offered on Tuesday.

The non-extended term loan was quoted at 78 bid, 78¾ offered, versus 78½ bid, 79½ offered on the open and 79 bid, 79¾ offered in the prior session, the trader continued.

Lastly, the incremental term loan was seen at 78 bid, 78¾ offered, down from 78½ bid, 79½ offered on the open and 79 bid, 80 offered on Tuesday, the trader added.

Cengage is a Stamford, Conn.-based provider of teaching, learning and research services for the academic, professional and library markets.

MacDermid revises deal

Switching to the primary, MacDermid lifted its 71/2-year covenant-light second-lien term loan (Caa1/B-) to $360 million from $335 million, trimmed pricing to Libor plus 675 bps from Libor plus 725 bps and modified call protection to 102 in year one and 101 in year two, from 103 in year one, 102 in year two and 101 in year three, according to a market source.

Also, pricing on the $755 million seven-year covenant-light first-lien term loan (Ba3/B) was lowered to Libor plus 300 bps from Libor plus 325 bps, a step-down was added to Libor plus 275 bps at 5¾ times net leverage and the discount was revised to 99¾ from 991/2, the source remarked.

As before, the second-lien term loan has a 1% Libor floor and an original issue discount of 99, and the first-lien term loan has a 1% Libor floor and 101 repricing protection for six months.

In addition to the term loans, the company's now $1,165,000,000 senior secured credit facility includes a $50 million five-year revolver (Ba3/B).

MacDermid lead banks

Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA and Nomura are leading MacDermid's credit facility, for which commitments were due at 5 p.m. ET on Tuesday.

Proceeds will be used to refinance existing debt and repay preferred equity.

The company is currently tendering for its $350 million of 9½% senior subordinated notes due 2017 in an offer that will expire on June 19 and is subject to the entrance into the new credit facility.

MacDermid is a Denver-based manufacturer of specialty chemicals to the electronics, industrial, offshore and printing industries.

Asurion reveals guidance

Asurion held its lender call in the morning, launching its $850 million seven-year senior secured term loan B-2 (B+) with talk of Libor plus 275 bps with a 0.75% Libor floor, an original issue discount of 99 to 99½ and 101 soft call protection for six months, a market source said.

The term loan includes a $350 million delayed-draw tranche.

Commitments are due at noon ET on Friday, the source continued.

Morgan Stanley Senior Funding Inc. and Credit Suisse Securities (USA) LLC are leading the deal.

Proceeds will be used to refinance an existing first-lien amortizing term loan due 2017 and for general corporate purposes, which may include refinancing the existing holdco loan, funding a return of capital to shareholders and financing potential acquisitions.

Asurion is a Nashville-based provider of technology protection services.

Appvion discloses talk

Appvion released talk on its $575 million in first- and second-lien term loans in connection with its bank meeting taking place during the session, according to market sources.

The $375 million six-year first-lien term loan is talked at Libor plus 400 bps to 425 bps with a 1.25% floor, an original issue discount of 99 to 99½ and 101 soft call protection for one year, sources said.

And, the $200 million seven-year second-lien term loan is talked at Libor plus 775 bps to 800 bps with a 1.25% Libor floor, a discount of 98½ and call protection of 103 in year one, 102 in year two and 101 in year three, sources continued.

Lead bank, Jefferies Finance LLC, is asking for commitments by June 14.

Proceeds will be used to refinance 9¾% subordinated notes due 2014, 10½% secured notes due 2015 and its 11¼% second-lien notes due 2015.

Appvion, an Appleton, Wis.-based producer of thermal, carbonless and security papers and Encapsys products, will have first-lien leverage of 3 times and total leverage of 4.6 times, based on about $131.5 million of EBITDA.

Sapphire Power pricing

Sapphire Power Holdings came out with talk of Libor plus 400 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year on its $350 million seven-year covenant-light term loan that launched on Tuesday, according to a market source.

The company's $380 million credit facility (B+) also includes a $30 million revolver.

Commitments are due on June 18, the source remarked.

Goldman Sachs Bank USA and Deutsche Bank Securities Inc. are leading the deal 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.

Navios launches

Navios Maritime hosted its lender meeting, and with the event, guidance on its $250 million five-year senior secured term loan B (Ba3) was revealed to be Libor plus 375 bps to 400 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, according to a market source.

Commitments are due at noon ET on June 18, the source said.

Morgan Stanley Senior Funding Inc., J.P. Morgan Securities LLC and Citigroup Global Markets Inc. are leading the transaction that will be used to refinance an existing credit facility and fund the acquisition of new vessels.

Navios is a Piraeus, Greece-based owner and operator of tanker vessels.

VWR repricing

VWR Funding announced talk of Libor plus 325 bps on its $242 million extended term loan due in 2017 and Euribor plus 350 bps on its €476 million extended term loan due in 2017 with its call, according to sources.

Both loans are offer at par and have 101 soft call protection for six months, sources said.

Proceeds will be used to reprice the existing U.S. term loan from Libor plus 425 bps and the existing euro term loan from Euribor plus 450 bps.

Bank of America Merrill Lynch and Citigroup Global Markets Inc. are leading the deal that is expected to close within the next two weeks.

VWR is a Radnor, Pa.-based provider of laboratory supplies, equipment and services.

Stallion timing emerges

In more primary happenings, Stallion Oilfield released timing on the launch of its up to $350 million senior secured covenant-light term loan (B3/B) with the scheduling of a bank meeting for Wednesday, according to a market source.

The loan has hard call protection of 102 in year one and 101 in year two, the source said.

Bank of America Merrill Lynch and Jefferies Finance LLC are leading the deal that will be used to redeem the remaining $134 million of the company's senior secured notes due 2015, to fund a portion of a roughly $217 million dividend to stockholders and for other corporate purposes.

With the new term loan, the company is seeking an amendment to its Bank of America-led asset-backed loan to increase the size to $65 million from $50 million.

Stallion Oilfield is a Houston-based provider of wellsite support, completion, production and logistics services to oil and gas exploration and production companies, drilling contractors and other service companies.

AMF readies launch

AMF Bowling Centers set a bank meeting for 2 p.m. ET in New York on Wednesday to launch its $260 million credit facility that is being done in connection with AMF Bowling's emergence from bankruptcy and merger with Strike Holdings LLC (Bowlmor), according to a market source.

The facility consists of a $30 million five-year revolver and a $230 million 53/4-year first-lien term loan, which has 101 soft call protection for one year, the source said.

Credit Suisse Securities (USA) LLC is leading the deal.

Proceeds will be used to repay a debtor-in-possession financing facility and existing bank debt, and for general corporate purposes.

Commitments are due on June 19.

Subject to court approval, AMF's bankruptcy emergence and combination with Bowlmor could be completed by the end of June.

AMF is a Richmond, Va.-based bowling center operator.

National Financial on deck

National Financial Partners scheduled a bank meeting for Wednesday to launch its $851,125,000 senior secured credit facility (B+), a market source said, which includes a $135 million revolver and a $716,125,000 term loan.

Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc., UBS Securities LLC, Credit Suisse Securities (USA) LLC, MCS Capital and RBC Capital Markets are leading the deal.

Proceeds, along with $337 million of senior unsecured notes and up to $385.4 million of equity will be used to fund the acquisition of the company by Madison Dearborn Partners LLC for $25.35 in cash per share. The transaction is valued at about $1.3 billion, including the full value of the company's convertible debt.

Closing is expected in the third quarter, subject to stockholder approval and customary conditions.

National Financial Partners is a New York-based provider of benefits, insurance and wealth management services.

Travelport plans refi

Travelport surfaced with plans to hold a bank meeting at 1:30 p.m. ET in New York on Wednesday to launch a $1.65 billion credit facility that will be used to refinance existing first-lien bank debt, according to a market source.

The facility consists of a $100 million five-year revolver, and a $1.55 billion six-year first-lien term loan talked at Libor plus 450 bps with step-downs, a 1.25% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, the source said.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc. and UBS Securities LLC are leading the transaction.

Commitments are due on June 14, the source added.

Travelport is an Atlanta-based provider of transaction processing services to the travel industry.

Walter Energy preps deal

Walter Energy Inc. scheduled a call for 1 p.m. ET on Wednesday to launch a $1.6 billion senior secured credit facility, according to a market source.

The facility consists of a $400 million revolver and a $1.2 billion term loan B, the source said.

Morgan Stanley Senior Funding Inc. is the left lead on the deal. Other bookrunners on the deal and the use of proceeds have not yet been announced.

Walter Energy is a Birmingham, Ala.-based pure-play metallurgical coal producer.

Weather coming soon

Weather Co. will hold a bank meeting on Thursday to launch a $600 million 71/2-year second-lien covenant-light term loan that has call protection of 102 in year one and 101 in year two, according to sources.

Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Bank of Tokyo-Mitsubishi UFJ, Sumitomo Mitsui Banking Corp., Mizuho Securities USA Inc. and Natixis are leading the deal.

Weather Co., an Atlanta-based media company devoted to bringing weather news via television, internet and mobile devices, will use the new term loan to fund a dividend.

AMR joins calendar

AMR set a bank meeting for Thursday to launch a new loan, according to market sources.

Deutsche Bank Securities Inc., Citigroup Global Markets Inc., Barclays, Goldman Sachs Bank USA, J.P. Morgan Securities LLC and Morgan Stanley Senior Funding Inc. are leading the deal for the Fort Worth, Texas-based airline company.

Pacific Drilling closes

Pacific Drilling SA completed its $750 million five-year covenant-light senior secured term loan B and $500 million five-year undrawn revolver, according to a news release.

Pricing on the B loan is Libor plus 350 bps with a 1% Libor floor, and it was sold at a discount of 991/2. There is 101 soft call protection for one year.

During syndication, pricing on the term loan was reduced from Libor plus 400 bps and the discount was cut from 99.

The revolver has pricing that can range from Libor plus 250 bps to 325 bps based on leverage.

Citigroup Global Markets Inc., Goldman Sachs Bank USA, Deutsche Bank Securities Inc. and Barclays led the credit facility that was used with $750 million of bonds to refinance existing commercial bank debt.

Pacific Drilling is a Luxembourg-based ultra-deepwater drilling contractor.

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