NRG, StoneRiver, School Specialty, Grande Communications break; Summit Business updates deal

By Sara Rosenberg

New York, May 29 - NRG Energy Inc.'s term loan B freed up for trading, with levels seen wrapped around par, and StoneRiver Group LP, School Specialty Inc. and Grande Communications started trading as well.

Over in the primary, Summit Business Media firmed the spread on its credit facility at the high end of guidance and sweetened term loan amortization, Star West Generation LLC set its term loan coupon at the wide side of talk, and Quicksilver Resources Inc., Beats Electronics LLC, Jazz Pharmaceuticals and CTI Foods Holding Co. LLC released pricing details with launch.

Also, Ennis Flint (Road Infrastructure Investment LLC) emerged with an incremental term loan, and LS Power (LSP Madison LLC), Genpact International Inc. and Yankee Candle Co. Inc. joined this week's calendar.

NRG starts trading

NRG Energy's $2,022,000,000 term loan B due July 1, 2018 hit the secondary market on Wednesday, with levels quoted at 99¾ bid, par ¼ offered, according to a market source.

Pricing on the B loan, which includes $450 million of incremental debt, is Libor plus 200 basis points with a 0.75% Libor floor, and there is 101 soft call protection for six months. The incremental loan was sold at an original issue discount of 99½ and the existing amount was sold at par.

During syndication, the spread on the loan firmed at the tight end of the Libor plus 200 bps to 225 bps talk.

Proceeds will be used to reprice the existing term loan, and the incremental amount will be used to help fund the redemption of GenOn 2014 unsecured notes and for other general corporate purposes, including financing the Gregory plant acquisition.

NRG lead banks

Morgan Stanley Senior Funding Inc. and Credit Suisse Securities (USA) LLC are the joint lead arrangers and bookrunners on the incremental term loan.

Meanwhile, the lead arrangers and bookrunners on the repricing include Morgan Stanley, Bank of America Merrill Lynch, Barclays, Citigroup Global Markets Inc., Credit Suisse, Deutsche Bank Securities Inc., Goldman Sachs Bank USA., J.P. Morgan Securities LLC, RBS Securities Inc., Mitsubishi UFJ Financial Group and Union Bank.

Closing on the loan is expected to take place on June 4, a source added.

NRG is a wholesale power generation company with headquarters in Princeton, N.J., and Houston.

StoneRiver frees up

Another deal to break was StoneRiver Group, with the $520 million 61/2-year first-lien term loan (B1/B+) quoted at 99 7/8 bid, par 3/8 offered and the $150 million seven-year second-lien term loan (Caa1/CCC+) quoted at par ¼ bid, 101¼ offered, according to a trader.

Pricing on the first-lien term loan is Libor plus 325 bps with a 1.25% Libor floor, and it was sold at a discount of 991/2. There is 101 soft call protection for six months.

The second-lien term loan is priced at Libor plus 725 bps with a 1.25% Libor floor, and it was sold at 991/2. This tranche has call protection of 102 in year one and 101 in year two.

Last week, pricing on the first-lien term loan was reduced from Libor plus 350 bps, and the second-lien term loan pricing was flexed from Libor plus 750 bps as the discount was tightened from 99.

StoneRiver getting revolver

In addition to the term loans, StoneRiver's $720 million credit facility includes a $50 million five-year revolver (B1/B+).

Bank of America Merrill Lynch, JPMorgan, KeyBanc Capital Markets LLC, Credit Suisse Securities, U.S. Bank and MCS Capital Markets are leading the deal that will be used to refinance existing debt, for working capital, for capital expenditures and for general corporate purposes, as well as to fund a distribution to unit holders.

StoneRiver is an Oakland, Calif.-based provider of insurance outsourcing technology and professional services solutions to insurance companies, financial institutions and pharmacies.

School Specialty breaks

School Specialty's $145 million six-year first-lien term loan (Caa1/B) began trading too, with levels quoted at 98½ bid, par offered, a market source said.

Pricing on the term loan, which had been upsized from $125 million during the syndication process, is Libor plus 850 bps with a 1% Libor floor, and it was sold at an original issue discount of 98. There is call protection of 102 in year one and 101 in year two.

Credit Suisse Securities is leading the deal that will be used to help fund the company's exit from Chapter 11.

In addition to the term loan, the company is getting a $175 million ABL revolver that is being led by Bank of America Merrill Lynch and SunTrust Robinson Humphrey Inc.

School Specialty is a Greenville, Wis.-based education company.

Grande tops par

Grande Communications' credit facility emerged in the secondary too, with the $260 million seven-year term loan B quoted at par ¼ bid, par ¾ offered, according to a market source.

Pricing on the B loan is Libor plus 350 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 six months.

During syndication, pricing on the term loan B was reduced from Libor plus 400 bps.

The company's $295 million credit facility (B2/B+) also provides for a $35 million five-year revolver.

SunTrust Robinson Humphrey and TD Securities (USA) LLC are leading the deal that will be used to refinance existing debt and fund a $100 million dividend to ABRY Partners.

Leverage is around 4.7 times all senior.

Grande is a San Marcos, Texas-based broadband communications company that offers a full suite of internet, TV and phone services.

Summit adjusts terms

Moving to the primary, Summit Business Media set pricing on its $10 million revolver and $65 million term loan at Libor plus 475 bps, the wide end of the Libor plus 450 bps to 475 bps talk, while keeping the 1.25% Libor floor and original issue discount of 99 unchanged, according to a market source.

Also, amortization on the term loan was increased to 42.5% over the life of loan from 5% in years one, two and three, 7.5% in year four and 10% in year five, with bullet at maturity, the source said.

GE Capital Markets is leading the $75 million five-year credit facility that is expected to allocate later this week.

Proceeds will be used to refinance existing debt.

Summit Business Media is a New York-based business-to-business media company serving the insurance, financial services, legal and investment advisory markets.

Star West finalizes spread

Star West Generation firmed pricing on its $750 million senior secured term loan B due March 13, 2020 at Libor plus 325 bps, the wide end of the Libor plus 300 bps to 325 bps talk, according to a market source.

As before, the loan has a 1% Libor floor, a par offer price and 101 soft call protection until March 2014.

Citigroup is leading the deal that will be used to refinance an existing term loan B that is priced at Libor plus 400 bps with a 1% Libor floor.

Star West Generation is a Houston-based power producer.

Quicksilver releases talk

Quicksilver Resources held a bank meeting on Wednesday morning to launch its $600 million six-year second-lien covenant-light term loan (B2/CCC+), and with the event, price talk was announced, according to a market source.

The term loan is talked at Libor plus 575 bps with a 1.25% Libor floor, an original issue discount of 99 and soft call protection of 102 in year one and 101 in year two, the source said.

Commitments are due on June 5, the source added.

Credit Suisse Securities, JPMorgan, Bank of America Merrill Lynch, Citigroup, Deutsche Bank Securities and Wells Fargo Securities LLC are the joint bookrunners on the deal, and Credit Suisse and JPMorgan are the co-lead arrangers.

Quicksilver repaying debt

Proceeds from Quicksilver Resources' term loan, up to $675 million of new senior unsecured notes and up to $200 million of new senior second-priority secured notes will be used to fund a tender offer for 8¼% senior notes due 2015, 11¾% senior notes due 2016 and 7 1/8% senior subordinated notes due 2016, and for general corporate purposes.

Closing on the loan is expected to take place on June 21.

Quicksilver Resources is a Fort Worth, Texas-based natural gas and oil exploration and production company.

Beats Electronics guidance

Beats Electronics came out with talk of Libor plus 325 bps to 350 bps with a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for one year on its $500 million six-year term loan B that launched with a bank meeting in the afternoon, according to a market source.

The company's $700 million covenant-light senior secured credit facility (B2) also includes a $200 million five-year revolver.

Commitments are due by 5 p.m. ET on June 12, the source said.

Barclays, Citigroup and JPMorgan are leading the deal.

Proceeds will be used to refinance a $225 million term loan and for general corporate purposes, with $400 million available for additional specified purposes, including acquisitions, investments and, for a limited period, distributions to shareholders.

Beats Electronics is a Santa Monica, Calif.-based consumer audio company.

Jazz Pharma launches

Jazz Pharmaceuticals announced talk of Libor plus 250 bps to 275 bps with a 0.75% Libor floor, a par offer price and 101 soft call protection for six months on its $557,187,500 term loan (including a $100 million add-on) due June 2018 that launched during the day, according to a market source.

And, talk of Libor plus 225 bps with no Libor floor and a 37.5 bps upfront fee on new money emerged on the $200 million revolver (including a $100 million add-on) due June 2017, the source said.

Commitments for the $757,187,500 senior secured credit facility are due at 5p.m. ET on June 6.

Barclays, Citigroup and JPMorgan are leading the deal that will be used to refinance an existing credit facility and for general corporate purposes.

Jazz Pharmaceuticals is a Dublin, Ireland-based specialty biopharmaceutical company.

CTI Foods pricing

CTI Foods revealed price talk on its $345 million seven-year first-lien term loan B (B2) and $140 million eight-year second-lien term loan (Caa1) as the debt was presented to lenders during the session, according to a market source.

The first-lien loan is talked at Libor plus 350 bps with a 1% Libor floor and an original issue discount of 991/2, the source said.

And, the second-lien loan is talked at Libor plus 725 bps with a 1% Libor floor, a discount of 99 and hard call protection of 102 in year one and 101 in year two, the source continued.

Commitments are due at noon ET on June 12.

Also included in the company's $585 million credit facility is a $100 million ABL revolver.

Morgan Stanley Senior Funding Inc. and Goldman Sachs Banks USA are leading the deal that will be used to help fund the buyout of the company by Thomas H. Lee Partners LP and Goldman Sachs & Co. from Littlejohn & Co. LLC, which is expected to close this quarter.

CTI is a Wilder, Idaho-based provider of food products to national chain restaurants.

Waupaca sets deadline

Waupaca Foundry Inc. launched its $125 million add-on term loan and is giving lenders until June 12 to place their orders, according to a market source.

As previously reported, the loan is talked at Libor plus 350 bps with a 1% Libor floor, an offer price of 99¾ to par and 101 soft call protection for six months.

The spread, floor and call premium on the add-on match the existing term loan, as the debt is fungible.

GE Capital Markets is leading the deal that will be used to fund a dividend.

Waupaca Foundry is a Waupaca, Wis.-based producer of gray and ductile iron castings for the automotive, truck, agriculture, construction, hydraulics and commercial vehicle markets.

Ennis Flint shops loan

Ennis Flint launched on Wednesday a $15 million incremental first-lien term loan due March 30, 2018 that is talked at Libor plus 500 bps with a 1.25% Libor floor and a par offer price, a market source said.

Credit Suisse is leading the deal that will be used for general corporate purposes.

Commitments are due at 5 p.m. ET on Thursday, the source remarked. No call was held to launch the deal.

Ennis Flint is a Thomasville, N.C.-based manufacturer and marketer of traffic safety and pavement marking products.

LS Power on deck

LS Power set a bank meeting for 2 p.m. ET in New York on Thursday to launch a $450 million seven-year first-lien covenant-light term loan that has 101 repricing protection for one year, according to a market source.

Credit Suisse and Goldman Sachs Bank USA are leading the transaction.

Proceeds will be used to refinance an existing term loan, fund a dividend payment and for general corporate purposes.

Commitments are due on June 17, the source said.

LS Power is a New York-based portfolio of power generating facilities.

Genpact readies call

Genpact scheduled a call for noon ET on Thursday to launch a $1,125,000,000 senior secured credit facility, according to a market source.

The facility consists of a $250 million revolver and an $875 million term loan B (including a $203,375,000 add-on), the source said.

Proceeds from the revolver and $671,625,000 of the total term loan B amount will be used to reprice existing revolver and B loan debt.

Morgan Stanley Senior Funding Inc., Citigroup, Bank of America Merrill Lynch, Credit Agricole CIB, JPMorgan and Wells Fargo Securities LLC are leading the deal.

Genpact is a Hamilton, Bermuda-based provider of business process management services.

Yankee Candle coming soon

Yankee Candle surfaced with plans to hold a bank meeting at 9:30 a.m. ET registration time on Friday to launch a $1,125,000,000 senior secured credit facility that is being led by Barclays and Bank of America Merrill Lynch, according to a market source.

The facility consists of a $175 million five-year amended ABL revolver and a $950 million seven-year first-lien term loan, the source said.

Proceeds from the credit facility and $450 million of notes will be used to fund a distribution to equity holders and to refinance all existing debt.

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

Mediacom closes

In other news, Mediacom Broadband LLC completed its $600 million senior secured term loan H (Ba3/BB-) due January 2021 that is priced at Libor plus 250 bps with a 0.75% Libor floor, a news release said. The loan was issued at par and has 101 soft call protection for six months.

During syndication, the loan was upsized from $450 million, the spread firmed at the tight end of the Libor plus 250 bps to 275 bps talk and the offer price was tightened from 993/4.

JPMorgan and Bank of America Merrill Lynch led the deal is being used to repay a $583.5 million term loan F in full and for general corporate purposes.

Mediacom is a Middletown, N.Y.-based cable operator.

Aeroflex wraps

Aeroflex Inc. closed on its $612 million term loan B due November 2019, according to a news release.

Pricing on the loan is Libor plus 350 bps with a 1% Libor floor, and it was sold at a discount of 993/4. There is 101 soft call protection for one year.

During syndication, the loan was upsized from $606 million, pricing firmed at the tight end of the Libor plus 350 bps to 375 bps talk and the discount was revised from 991/2.

With the term loan upsizing, the revolver due November 2017 was downsized to $57,125,000 from $75 million.

JPMorgan led the deal that was used to refinance an existing roughly $606 million term loan B due May 2018 priced at Libor plus 450 bps with a 1.25% Libor floor.

Aeroflex is a Plainview, N.Y.-based provider of microelectronic components and test and measurement equipment.

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