Sealed Air, ClubCorp, Sequa Automotive, Jimmy Sanders free up; Fleetpride tweaks deal

By Sara Rosenberg

New York, Nov. 14 - Sealed Air Corp., ClubCorp, Sequa Automotive Group and Jimmy Sanders (Pinnacle Operating Corp.) broke for trading on Wednesday, and Cengage Learning Acquisitions Inc.'s extended and non-extended term loans were once again weaker in the secondary market.

Over in the primary, FleetPride Inc. (FPC Holdings Inc.) made some changes to its credit facility, including lifting pricing on the first-lien loan and adding soft call protection, and setting the coupon on the second-lien loan at the high end of talk while widening the original issue discount price.

Also, Metaldyne LLC released price talk with its European bank meeting, and Consolidated Communications Holdings Inc. and Northern Tool + Equipment Co. Inc. set guidance on their deals with launch.

Furthermore, Neiman Marcus Group Inc. and Nomacorc LLC announced new loan plans and began circulating price talk on the debt, and NSG Holdings LLC and TransFirst LLC are getting ready to bring deals to the market.

Sealed Air hits secondary

Sealed Air's new term loan debt freed up for trading on Wednesday, with levels on the $609.5 million term B tranche quoted at par ½ bid, 101 offered, according to a trader.

Pricing on the U.S. term loan B is Libor plus 300 basis points with a 1% Libor floor, and it was sold at an original issue discount of 993/4. There is 101 soft call protection for one year.

The company's $800 million of new term loan B (Ba1) borrowings also includes a €150 million tranche priced at Euribor plus 350 bps with a 1% floor and sold at a discount of 993/4. This debt has 101 soft call protection for one year as well.

During syndication, the U.S. tranche was upsized from $575 million and the euro tranche was downsized from €175 million.

Sealed Air repaying debt

Proceeds from Sealed Air's new term loans will be used to refinance a U.S. term loan B that is priced at Libor plus 375 bps with a 1% Libor floor and a euro term loan B that is priced at Euribor plus 450 bps with a 1% floor.

With the new loans, the company sought an amendment to its existing credit facility to relax the leverage covenant and lenders were offered a 12.5 bps amendment fee.

Citigroup Global Markets Inc., Bank of America Merrill Lynch, BNP Paribas Securities Corp. and RBS Securities Inc. are the lead banks on the deal.

Sealed Air is an Elmwood Park, N.J.-based food safety and security, facility hygiene and product protection company.

ClubCorp starts trading

ClubCorp's roughly $305 million term loan B broke as well, with levels quoted at par ½ bid, 101 offered, a trader said.

Pricing on the loan is Libor plus 375 bps, after firming at the tight end of the Libor plus 375 bps to 400 bps guidance. There is a 1.25% Libor floor and 101 soft call protection for one year, and the debt was sold at par.

Proceeds are repricing an existing term loan B from Libor plus 450 bps with a 1.5% Libor floor, and existing lenders are getting paid down at par with the repricing.

Citigroup Global Markets Inc. is the lead bank on the deal.

ClubCorp is a Dallas-based owner and operator of golf courses, country clubs, private business and sports clubs and resorts.

Sequa frees up

Another deal to begin trading was Sequa Automotive, with the $220 million term loan B quoted at 99¼ bid, 99½ offered, according to a trader.

Pricing on the B loan is Libor plus 500 bps with a 1.25% Libor floor, and it was sold at an original issue discount of 99. There is 101 soft call protection for one year.

The company's $275 million credit facility (B1/B+) also includes a $55 million revolver.

During syndication, the term loan B was upsized from $215 million and the revolver was downsized from $60 million.

RBC Capital Markets and Barclays are leading the deal that will be used to finance the buyout of the company by the Jordan Co.

Sequa is a Tampa, Fla.-based provider of technology and components to various industries, including automotive and aerospace.

Jimmy Sanders breaks

Jimmy Sanders emerged in the secondary too, with the $350 million first-lien covenant-light term loan (B2/B) quoted at 97¼ bid, 97¾ offered, and the $125 million second-lien covenant-light term loan (Caa1/CCC+) quoted at 95 bid, 96 offered, according to a market source.

Pricing on the first-lien term loan is Libor plus 550 basis points with a 1.25% Libor floor, and it was sold at a discount of 97. There is 101 soft call protection for one year.

The second-lien loan is priced at Libor plus 1,025 bps with a 1.25% Libor floor and was sold at 95. The debt is non-callable for one year, then at 106 in year two, 102 in year three and 101 in year four, but, if refinances by high-yield notes, the loan is callable at 103 in year one.

During syndication, pricing on the first-lien term loan was increased from talk of Libor plus 475 bps to 500 bps, the discount widened from 99 and the tenor was shortened to six years from seven years. Additionally, the second-lien loan was downsized from $150 million, pricing was increased from Libor plus 925 bps, the discount was revised from 98, the maturity was shortened to 6½ years from 7½ years, and the call protection was sweetened from 103 in year one, 102 in year two and 101 in year three.

Jimmy Sanders revolver

Jimmy Sanders' $775 million credit facility also provides for a $300 million five-year ABL revolver.

Credit Suisse Securities (USA) LLC, BMO Capital Markets Corp. and Citigroup Global Markets Inc. are the lead banks on the deal, with Credit Suisse left on the term loans and BMO the left lead on the ABL revolver.

Proceeds will be used to help fund the acquisition of the company by Pinnacle Agriculture Holdings LLC and Apollo Global Management LLC.

Jimmy Sanders is a Cleveland, Miss.-based agricultural input supply and distribution business.

Cengage falls more

In more trading news, Cengage's term loans softened again, with the extended debt quoted at 70½ bid, 71½ offered, down from 72 bid, 73 offered, and the non-extended debt quoted at 73 bid, 74 offered, down from 75 bid, 76 offered, according to a trader.

The term loans have been falling since the company came out with disappointing fiscal first quarters numbers late last week. Prior to the release of earnings, the extended term loan was quoted at 88 bid, 88½ offered, and the non-extended loan was quoted at 93 bid, 93½ offered.

For the fiscal first quarter, Cengage's net income was $13.2 million, down from $131.5 million in the prior year, revenues were $538.3 million, down from $691.9 million, and adjusted EBITDA was $233.1 million, down from $348.8 million in the previous year.

And, because of the poor results, Moody's Investors Service downgraded on Tuesday the company's corporate family rating to Caa3 from Caa1.

Cengage is a Stamford, Conn.-based provider of teaching, learning and research services.

Fleetpride revises deal

Moving to the primary, Fleetpride modified its credit facility, raising pricing on the $425 million seven-year covenant-light first-lien term loan (B1/B) to Libor plus 400 bps from Libor plus 375 bps and adding 101 soft call protection for one year, according to a market source. The tranche still has a 1.25% Libor floor and an original issue discount of 99.

Meanwhile, pricing on the $200 million 71/2-year covenant-light second-lien term loan (Caa1/CCC+) firmed at Libor plus 800 bps, the wide end of the Libor plus 775 bps to 800 bps talk, and the original issue discount was changed to 98 from 981/2, the source remarked. The 1.25% Libor floor and call protection of 103 in year one, 102 in year two and 101 in year three were unchanged.

Also, the ABL revolver was upsized to $175 million from $150 million, the source added.

Deutsche Bank Securities Inc., Bank of America Merrill Lynch, RBC Capital Markets, Barclays and UBS Securities LLC are leading the now $800 million credit facility that will be used to help fund TPG Capital's buyout of the company from Investcorp.

Closing is expected this quarter, subject to receipt of applicable regulatory approvals.

FleetPride is a Woodlands, Texas-based retailer of heavy-duty truck and trailer parts.

Metaldyne sets guidance

Also in the primary, Metaldyne held a bank meeting in London on Wednesday and will hold one in New York on Thursday, and with the European launch, price talk on the $545 million six-year term loan B was announced, according to a market source.

The U.S. term loan B tranche is talked at Libor plus 475 bps and the euro term loan B tanche is talked at Euribor plus 525 bps, with both having a 1.25% floor and an original issue discount of 99, the source remarked. Sizes of the U.S. and euro tranches are still to be determined.

The company's $620 million credit facility (B+) also includes a $75 million five-year revolver.

Lead banks, Bank of America Merrill Lynch, Deutsche Bank Securities Inc., RBC Capital Markets LLC and Barclays, are seeking commitments by Nov. 30, the source continued.

Proceeds will fund the company's buyout by American Securities from Carlyle Group.

Metaldyne is a Plymouth, Mich.-based designer and supplier of metal-formed components and assemblies for powertrain applications.

Consolidated releases talk

Consolidated Communications released 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 on its $515 million term loan B (Ba3/BB-) that launched on Wednesday, according to a market source.

Earlier, talk on the loan was being labeled as in the 5.25% to 5.5% area on an all-in basis.

Wells Fargo Securities LLC is leading the deal that will be used to refinance non-extended term loan borrowings.

Consolidated Communications is a Mattoon, Ill.-based rural local exchange company providing voice, data and video services.

Northern Tool pricing

Northern Tool + Equipment launched its $200 million seven-year term loan B (Ba3/B+) with talk of Libor plus 450 bps with a 1.25% 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 is the lead bank on the $300 million credit facility, which also includes a $100 million five-year ABL revolver.

Proceeds will be used to fund the $215 million purchase of the Sportsman's Guide and the Golf Warehouse from Redcats USA.

Northern Tool is a Burnsville, Minn.-based supplier of tools and equipment. Sportsman's Guide is a South St. Paul, Minn.-based supplier of outdoor goods sold via catalogs and online. And, Golf Warehouse is a Wichita, Kan.-based online golf equipment retailer.

Neiman coming to market

Neiman Marcus announced that it will be holding a conference call at 3:30 p.m. ET on Thursday to launch a $500 million first-lien incremental term loan due May 2018, and price talk on the debt came out at Libor plus 350 bps with a 1.25% Libor floor and an original issue discount of 991/2, according to a market source.

Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch, J.P. Morgan Securities LLC and Wells Fargo Securities LLC are leading the deal that will be used to refinance roughly $500 million of 10 3/8% senior subordinated notes due 2015 through a tender offer that expires on Dec. 12.

In connection with the add-on term loan, the company is asking to amend to its existing term loan and asset-based credit facility to allow for the new debt.

Neiman Marcus is a Dallas-based chain of department stores.

Nomacorc joins calendar

Nomacorc scheduled a bank meeting for Thursday to launch a $135 million five-year credit facility that is talked at Libor plus 500 bps with a 1.25% Libor floor and an original issue discount of 99, according to a market source.

The facility consists of a $20 million revolver and a $115 million term loan B, the source said.

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

Nomacorc is a Zebulon, N.C.-based manufacturer of the wine closures and synthetic wine corks.

NSG readies deal

NSG Holdings will host a bank meeting on Thursday to launch a $230 million credit facility that is being led by BNP Paribas Securities Corp., according to a market source.

The deal consists of a $146 million term loan B and an $84 million letter-of-credit facility, the source said, adding that price talk is not yet available.

Proceeds will be used to refinance existing debt and fund a dividend.

NSG Holdings is a subsidiary of Northern Star Generation LLC, a Houston-based power generation company.

TransFirst plans loan

TransFirst is set to hold a bank meeting on Monday to launch a proposed credit facility that will include first-and second-lien term loans, according to a market source.

Bank of America Merrill Lynch and Deutsche Bank Securities Inc. are leading the deal that will be used to refinance existing debt, fund a dividend and redeem equity.

TransFirst is a Hauppauge, N.Y.-based provider of transaction processing services and payment enabling technologies.

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