Schaeffler, TransDigm break; Telx ups deadline; Caribbean, New Asurion revise deals

By Sara Rosenberg

New York, Feb. 14 - Schaeffler AG and TransDigm Group Inc. saw their term loans free up for trading during Tuesday's market hours, and both deals were trading above their original issue discount prices.

Moving to the primary, Telx Group moved up the commitment deadline on its incremental term loan, Caribbean Restaurants LLC upsized its revolver and term loan, while cutting pricing across the board, and NEW Asurion tightened its discount price.

Also, Catalent Pharma Solutions Inc. and Freif North American Power I released pricing guidance on their loans with the launch, Associated Asphalt came out with talk on the back of receiving ratings from Moody's Investors Service and Station Casinos LLC disclosed original issue discount guidance on its term loans.

Furthermore, Aspen Dental emerged with plans for a new term loan and an amendment to its existing credit facility, and Nuveen Investments will be coming to market with a new second-lien loan and an extension request for its first-lien loan.

Schaeffler tops OID

Schaeffler's $1.275 billion U.S. five-year term loan C-2 (B1) began trading on Tuesday morning, with levels quoted at 99¼ bid, par ¼ offered on the open and then it moved up to par bid, par ½ offered, according to a trader.

The U.S. loan is priced at Libor plus 475 basis points with a step-down to Libor plus 450 bps at less than 2.5 times net leverage. There is a 1.25% Libor floor as well as 101 soft call protection for one year, and it was sold at an original issue discount of 98.

The C-2 loan also includes a €450 million tranche for a total size of around €1.4 billion.

On Monday, the term loan C-2 was upsized from €1 billion as its five-year term loan C-1 was downsized to €600 million from €1 billion, and pricing on the U.S. tranche was reduced from initial talk of Libor plus 550 bps with a 1.5% floor and a discount of 97.

Schaeffler repaying debt

Proceeds from Schaeffler's credit facility are being used to refinance an existing €7.7 billion credit facility that was set to mature in June 2014 and for general corporate purposes.

The company had previously said that the new facility provides for a €1 billion revolver and a total of €7 billion in term loans, including the C-1 and C-2 tranches, and a €3 billion three-year term loan B.

J.P. Morgan Securities LLC is the left lead bank on the deal. Other participants in the credit facility include BNP Paribas Securities Corp., Commerzbank, Deutsche Bank Securities Inc., HSBC Securities Inc., LBBW, Royal Bank of Scotland and UniCredit.

Schaeffler is a Herzogenaurach, Germany-based supplier of components and systems for the automotive industry and a variety of industrial sectors.

TransDigm hits secondary

TransDigm's $500 million add-on senior secured covenant-light term loan (Ba2/BB-) freed up too, with levels seen at par bid, par ½ offered on the open and then it moved to par ¼ bid, par ½ offered before coming back in to par bid, par 3/8 offered, according to a buyside source.

Pricing on the loan due Feb. 14, 2017 is Libor plus 300 bps with a 1% Libor floor, and it was sold at an original issue discount of 991/2. There is 101 soft call protection for one year.

During syndication, the Cleveland-based aircraft components company reduced pricing on the loan from Libor plus 325 bps and tightened the discount from 99 as a result of strong oversubscription.

Credit Suisse Securities (USA) LLC and UBS Securities LLC are the lead banks on the deal that will be used to help fund the acquisition of AmSafe Global Holdings Inc. for $750 million from a group controlled by Berkshire Partners LLC and Greenbriar Equity Group LLC.

Total senior secured debt is 2.9 times and total debt is 5.2 times.

Telx revises deadline

Over in the primary, Telx Group accelerated the commitment deadline on its $75 million incremental term loan (B1/B) to 12:30 p.m. ET on Tuesday from 5 p.m. ET on Thursday as the deal has been well met by investors, according to a market source.

Pricing on the incremental loan is Libor plus 650 bps with a 1.25% Libor floor, in line with existing term loan pricing, and it is being offered at an original issue discount of 991/2. By comparison, when the existing loan was obtained last year, it was sold at a discount price of 94.

Morgan Stanley Senior Funding Inc. and TD Securities (USA) LLC are the lead banks on the deal that will be used to repay revolver borrowings and for general corporate purposes.

Telx is a New York-based provider of interconnection and colocation facilities.

Caribbean tweaks deal

Caribbean Restaurants, an operator of Burger King restaurants in Puerto Rico, made a number of changes to its credit facility, including increasing its revolver to $22.5 million from $20 million and its term loan to $195 million from $190 million, according to a market source.

Also, pricing on the now $217.5 million credit facility (B3/B-), up from $210 million, was flexed down to Libor plus 750 bps from Libor plus 800 bps, and the original issue discount on the term loan moved to 98 from 97, the source said. The revolver is still being offered at 97.

As before, both tranches have a 1.5% Libor floor and the term loan has soft call protection of 102 in year one and 101 in year two.

Recommitments were due at 4 p.m. ET on Tuesday.

Jefferies & Co. is leading the deal that will be used to refinance existing bonds. The additional term loan proceeds raised through the upsizing will be used to decrease sponsor equity by $2.8 million, the source added.

Asurion modifies OID

NEW Asurion changed the original issue discount on its $1 billion 71/2-year senior unsecured term loan (B2/B-) to 97 from 96, while leaving pricing at Libor plus 950 bps with a 1.5% Libor floor, according to a market source.

The loan is still non-callable for two years, then at 102 in year three and 101 in year four.

Morgan Stanley Senior Funding Inc. is the lead bank on the deal that will be used to buy back equity.

Commitments were due at 5 p.m. ET on Tuesday.

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

Catalent sets talk

Also on the new deal front, Catalent Pharma Solutions held a call on Tuesday morning to launch its $400 million incremental term loan B due Sept. 15, 2017, at which time talk of Libor plus 375 bps to 400 bps with a 1.25% Libor floor, an original issue discount of 99 and 101 soft call protection for one year was announced, according to a market source.

Proceeds from the incremental loan and $27 million of cash on hand will be used to fund the purchase of Aptuit LLC's clinical trial supplies business for $410 million on a cash and debt free basis.

Pro forma net debt to adjusted EBITDA is 5.8 times and adjusted EBITDA to interest expense is 2.3 times.

Commitments are due on Feb. 21.

Morgan Stanley Senior Funding Inc. is the sole lead arranger and bookrunner on the deal.

Catalent to amend, extend

Along with the new loan, Catalent launched an amendment and extension transaction in which it is looking to extend at least 50% in total of its existing $1 billion and €253 million term loans to Sept. 15, 2016 from April 2014 at pricing of Libor/Euribor plus 400 bps versus non-extended pricing of Libor/Euribor plus 225 bps, the source continued.

The extended loans would have 101 soft call protection for one year.

Additionally, the amendment would cancel 50% of the non-extended revolver due in 2013.

Lenders are being offered a 10 bps consent fee, the source added.

Morgan Stanley Senior Funding Inc. is the sole lead arranger on the amendment and joint bookrunner with Deutsche Bank Securities Inc., Goldman Sachs & Co. and J.P. Morgan Securities LLC.

Catalent is a Somerset, N.J., provider of advanced technologies and development, manufacturing and packaging services for pharmaceutical, biotechnology and consumer health care companies.

Freif pricing

Another deal to launch was Freif North American Power I, and its $210 million seven-year term loan is being talked at Libor plus 450 bps with a 1.5% Libor floor, an original issue discount of 98 and 101 call protection for one year, according to a market source.

The company is also shopping a $33 million seven-year letter of credit facility talked at Libor plus 450 bps with a discount of 98, the source said.

Deutsche Bank Securities Inc., Barclays Capital Inc., Citigroup Global Markets Inc. and Macquarie Capital are leading the $243 million deal (Ba3/BB-).

Commitments are due on Feb. 27.

Proceeds will be used to help fund the acquisition by First Reserve Corp. and CalPERS of a diversified portfolio of U.S. contracted natural gas fired power generation plants totaling 1,068 MW from Arclight Capital.

NXP launches

NXP Semiconductors launched its $475 million seven-year incremental term loan B with a call on Tuesday, but price talk is not expected to emerge until Wednesday, a market source told Prospect News.

It is known, however, that the loan is non-callable for one year, then at 101 in year two.

Commitments are due at noon ET on Thursday.

Morgan Stanley Senior Funding Inc. and Bank of America Merrill Lynch are the lead arrangers on the deal that will be used, along with a $300 million revolver draw, to refinance the company's roughly $775 million senior unsecured notes due in 2015.

NXP is an Eindhoven, Netherlands-based provider of mixed-signal products and semiconductor components. The borrowers of the new term loan will be NXP BV and NXP Funding LLC.

Associated Asphalt guidance

In other news, Associated Asphalt disclosed talk on its $190 million of six-year term loan B debt at Libor plus 550 bps to 575 bps with a 1.5% Libor floor and an original issue discount of 98 now that Moody's has rated the credit facility at B2. A B+ rating from Standard & Poor's surfaced later in the day.

The institutional debt includes a $170 million funded tranche and a $20 million six-month delayed-draw tranche that are being sold together, and the $280 million facility provides for a $90 million five-year revolver as well. The revolver is governed by a borrowing base.

KeyBanc Capital Markets LLC is the sole bookrunner on the deal and a lead arranger with Nomura and Fifth Third Securities Inc.

Proceeds will be used to help fund the buyout of the company by Goldman Sachs Capital Partners, resulting gin total leverage of around 3.4 times.

Associated Asphalt, a Roanoke, Va.-based supplier of liquid asphalt to the paving industry, held its bank meeting last week and is seeking commitments towards the deal by Feb. 23.

Stations floats OIDs

Station Casinos came out with original issue discount talk on its in-market term loans and is planning to close the books end of day Wednesday and pricing on Thursday, according to a market source.

The $195 million B-1 tranche is talked at a discount in the 90 area, the source said. Coupon guidance of Libor plus 300 bps with step ups to Libor plus 550 bps and no floor had already emerged prior to the Feb. 7 bank meeting.

Meanwhile, the $746 million term loan B-2 is guided at a discount in the 85 area, the source continued. This tranche is talked at Libor plus 400 bps with no floor.

The Las Vegas-based casino company's $1.066 billion credit facility due June 17, 2016 also includes a $125 million revolver.

Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC are the lead banks on the refinancing transaction.

Aspen Dental readies deal

Aspen Dental has set a bank meeting for Thursday afternoon to launch a proposed roughly $127 million term loan that will be used to fund a dividend, according to a market source. Firm details on size and pricing are not yet available.

UBS Securities LLC and GE Capital Markets are the lead banks on the deal.

In addition, the company will ask to amend its existing credit facility to lift the incurrence basket to $127.4 million for additional term loans and increase borrowing capacity under the existing revolver by $15 million, the source remarked.

Aspen Dental is an East Syracuse, N.Y.-based provider of denture and dental care services.

Nuveen sets call

Nuveen Investments scheduled a conference call for Wednesday to launch a new $500 million seven-year second-lien term loan that will refinance at lower pricing an existing $500 million second-lien term loan that is priced at 12.5%, according to a market source.

In addition, the company will be asking to extend $500 million of its first-lien term loan to May 2017 from 2014.

Pricing on the extended loan will be Libor plus 550 bps, compared to non-extended pricing of Libor plus 300 bps, and the extended debt will have 101 soft call protection for one year, the source said.

Deutsche Bank Securities Inc. is the left lead bank on the deal.

Nuveen is a Chicago-based provider of investment services to institutions as well as individual investors.

DS Waters oversubscribed

DS Water of America Inc.'s $535 million credit facility is well oversubscribed ahead of Wednesday's commitment deadline, according to a market source, who said that the timeline on allocations is still to be determined.

The facility consists of a $285 million 51/2-year first-lien term loan (B1) and a $55 million 51/2-year delayed-draw first-lien term loan (B1), both priced at Libor plus 900 bps, a $105 million six-year second-lien term loan (Caa1) and a $20 million six-year delayed-draw second-lien term loan (Caa1), both priced at Libor plus 950 bps cash plus 400 bps PIK, and a $70 million five-year ABL revolver.

All of the term loans have a 1.5% floor and an original issue discount of 98.

The first-lien debt has call protection of 103 in year one, 102 in year two and 101 in year three, and the second-lien debt is non-callable for one year, then at 104 in year two, 103 in year three, 102 in year four and 101 in year five.

DS Waters lead banks

Credit Suisse Securities (USA) LLC, GE Capital Markets and Jefferies & Co. are the lead banks on DS Waters' credit facility, with Credit Suisse the left on the term loan and GE the left on the revolver.

During syndication, the funded first-lien term loan was downsized from $390 million, the delayed-draw first-lien term loan was downsized from $75 million, and the second-lien tranches were added. Also, pricing on the first-lien debt was increased from talk of Libor plus 675 bps to 700 bps and the call protection was sweetened from just 101 in year one.

Proceeds will be used to refinance existing debt, and the delayed-draw term loans are available for acquisition funding.

First-lien leverage is 2.3 times and second-lien leverage is 3.2 times.

DS Waters is an Atlanta-based bottled water, water filtration and coffee service company.

Grifols closes

Grifols, a Barcelona, Spain-based health care company, said in a news release that it completed its new credit facility.

The roughly $3.1 billion senior secured facility includes a $200 million revolver, a $600 million term loan A, a €220 million term loan A, a $1.7 billion U.S. term loan B and a €200 million term loan B.

Pricing on the term loan B's is Libor/Euribor plus 350 bps with a step-down to Libor/Euribor plus 325 bps at less than 3.25 times total net leverage. There is a 1% Libor floor and 101 soft call protection for one year, and the debt was sold at an original issue discount of 991/2.

During syndication, the roughly $1.97 billion term B was downsized from $2.2 billion and the euro carve-out and the pricing step-down were added. Also, the revolver was downsized from $300 million.

Deutsche Bank Securities Inc., Nomura, BBVA Securities Inc., BNP Paribas Securities Corp., HSBC Securities (USA) Inc. and Morgan Stanley & Co. LLC led the deal that was used to refinance the company's existing credit facility.

Cequel wraps refi

Cequel Communications Holdings I LLC closed on its $2.7 billion senior secured credit facility (Ba2/BB-) consisting of a $500 million five-year revolver and a $2.2 billion seven-year term loan B, according to a news release.

The revolver is priced at Libor plus 250 bps with no Libor floor, and the term loan is priced at Libor plus 300 bps, after an earlier flex from Libor plus 325 bps, with a 1% Libor floor. The term loan was sold at an original issue discount of 99 and includes 101 soft call protection for one year.

Credit Suisse Securities (USA) LLC, Goldman Sachs & Co., J.P. Morgan Securities LLC, Bank of America Merrill Lynch and RBC Capital Markets LLC led the deal that was used to refinance existing debt and fund a dividend.

Cequel, a St. Louis-based cable operator, has secured leverage of 3.1 times and total leverage of 5.6 times.

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