Bass Pro, Merrill Communications free to trade; primary calendar continues to build

By Sara Rosenberg

New York, May 29 – Bass Pro Group LLC tightened the spread and original issue discount on its term loan and then freed up for trading on Friday, and Merrill Communications LLC’s credit facility hit the secondary as well.

In more happenings, PlayPower Inc., SBA Senior Finance II, Falcon Group Holdings and Sonneborn LLC surfaced with new deal plans.

Bass Pro flexes, breaks

Bass Pro Group revised price talk on its $1.74 billion term loan (B1/BB-) due June 2020 to Libor plus 325 basis points to 350 bps from talk of Libor plus 350 bps to 375 bps and then finalized the spread at Libor plus 325 bps, according to a market source.

Additionally, the original issue discount on the term loan was changed to 99.75 from 99, the source said, adding that the 0.75% Libor floor and 101 soft call protection for one year were left intact.

With final pricing in place, the term loan made its way into the secondary market on Friday afternoon and levels were quoted at par bid, 100˝ offered, the source remarked.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance existing debt and fund a dividend.

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

Merrill tops OID

Merrill Communications’ credit facility broke too, with the $510 million seven-year first-lien term loan seen at 99˝ bid, 100˝ offered, a trader remarked.

Pricing on the term loan is Libor plus 525 bps with a 1% Libor floor, and it was sold at an original issue discount of 98.5. The debt has 101 soft call protection for one year.

During syndication, pricing on the term loan was increased from Libor plus 475 bps, the discount widened from 99 and a net first-lien leverage covenant was added to the originally covenant-light deal.

The company’s $560 million credit facility (B2/BB-) also includes a $50 million revolver.

Credit Suisse Securities and BMO Capital Markets are leading the deal that will be used to refinance existing debt.

Merrill is a St. Paul-based provider of outsourcing solutions for complex business communication and information management.

PlayPower coming soon

Back in the primary, PlayPower set a bank meeting for Tuesday morning to launch a $224 million credit facility, according to a market source.

The facility consists of a $30 million revolver, a $150 million first-lien term loan and a $44 million second-lien term loan, with price talk not yet available, the source said.

Societe Generale is leading the deal that will be used to help fund the buyout of the company by Littlejohn & Co. LLC from Apollo Investment Corp, which is expected close this quarter.

Senior leverage is 3.9 times and total leverage is 5 times, the source added.

PlayPower is a Huntersville, N.C.-based designer, manufacturer and distributor of commercial playgrounds as well as indoor and outdoor recreational equipment.

SBA joins calendar

SBA Senior Finance scheduled a conference call for 10 a.m. ET on Monday to launch a $500 million seven-year incremental senior secured term loan B, a market source said.

Citigroup Global Markets Inc. is leading the deal.

SBA Senior Finance is a subsidiary of SBA Communications Corp., a Boca Raton, Fla.-based owner and operator of wireless communications infrastructure.

Falcon on deck

Falcon Group emerged with plans to hold a bank meeting on Tuesday to launch a $250 million five-year term loan B (Ba3) talked at Libor plus 475 bps to 500 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.

J.P. Morgan Securities LLC and Natixis are leading the deal that will be used for general corporate purposes.

Falcon Group is a provider of trade finance transactions to corporate clients.

Sonneborn readies repricing

Sonneborn is set to hold a lender call on Monday to launch a repricing of its $279.3 million first-lien term loan from Libor plus 450 bps with a 1% Libor floor, a market source said.

Macquarie Capital (USA) Inc. is the lead on the deal.

Sonneborn is a Parsippany, N.J.-based manufacturer and supplier of high-purity specialty hydrocarbons.

Houghton Mifflin closes

In other news, Houghton Mifflin Harcourt Publishers Inc. completed its acquisition of Scholastic Corp.’s Educational Technology and Services business for $575 million, a news release said.

The company got an $800 million six-year senior secured covenant-light term loan B (B1/BB/BB+) to fund the transaction, to replace an existing term loan and for general corporate purposes, including a stock repurchase program.

Pricing on the term loan is Libor plus 300 bps with a 1% Libor floor, and it was issued at a discount of 99.5. There is 101 soft call protection for six months.

During syndication, the term loan was upsized from $500 million, and pricing firmed at the low end of revised talk of Libor plus 300 bps to 325 bps talk and down from initial talk of Libor plus 375 bps.

Citigroup Global Markets Inc. and Wells Fargo Securities LLC led the deal.

Houghton Mifflin is a Boston-based provider of pre-K-12 education content, services and technology solutions. Educational Technology is a provider of digital intervention curriculum, products and services.

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