Berry Plastics, Go Daddy, Peabody, ADT, Homer City Generation, Ferro, Windstream break

By Sara Rosenberg

New York, Feb. 8 – A number of deals emerged in the secondary market on Wednesday, including Berry Plastics Corp., Go Daddy Operating Co. LLC, Peabody Energy Corp., ADT Corp., Homer City Generation LP, Ferro Corp. and Windstream Services LLC.

Moving to the primary market, Arclin moved some funds between its first-and second-lien term loans and tightened spreads and original issue discounts on the tranches, and Creative Artists Agency LLC trimmed pricing on its term loan B.

In addition, NBTY Inc. updated spreads on the repricing of its U.S. and sterling term loans, and Sesac Holdings accelerated the commitment deadline on its credit facility.

Also, VC GB Holdings Inc., Cypress Semiconductor Corp., Sabre Inc., Gavilan Resources LLC, C.H.I. Overhead Doors Inc., PLZ Aeroscience Corp., SeaStar Solutions and U.S. Farathane LLC released talk with launch, and CDW LLC and Russell Investments joined this week’s primary calendar.

Berry frees up

Berry Plastics’ $1,147,500,000 term loan K due February 2020 and $814,375,000 term loan L due January 2021 broke for trading, with levels on both loans quoted at par 1/8 bid, par 3/8 offered, according to a market source.

Pricing on the term loans is Libor plus 225 basis points with no Libor floor, and they were issued at par. The loans have 101 soft call protection for six months.

Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Barclays, Deutsche Bank Securities Inc., Goldman Sachs Bank USA and Wells Fargo Securities LLC are leading the deal (Ba3) that will be used to reprice an existing $1,351,000,000 term loan D due February 2020 and an $814 million term loan G due January 2021, which are both currently priced at Libor plus 250 bps with a 1% Libor floor.

Concurrent with closing, the company intends to pay down about $200 million of the term loan D.

Closing is expected late this week.

Berry is an Evansville, Ind.-based provider of value-added plastic consumer packaging and engineered materials.

Go Daddy hits secondary

Another deal to free up was Go Daddy’s $2,497,500,000 seven-year senior secured covenant-light term loan B, with levels quoted at par bid, par ½ offered, a source remarked.

Pricing on the term loan is Libor plus 250 bps with no Libor floor, and it was sold at an original issue discount of 99.75. The debt has 101 soft call protection for six months.

During syndication, the term loan was upsized from $2,467,000,000, pricing was lowered from Libor plus 275 bps, and the discount was changed from 99.5.

Barclays, Deutsche Bank Securities Inc., Citigroup Global Markets Inc., RBC Capital Markets, J.P. Morgan Securities LLC, HSBC Securities (USA) Inc. and Societe Generale are leading the deal that will be used to refinance an existing term loan B and to fund the acquisition of Host Europe Group from Cinven for €1.69 billion.

The term loan has a ticking fee on the acquisition proceeds of half the spread from days 46 to 60 and thereafter the full spread plus the greater of 0% and three-month Libor.

Closing is expected in the second quarter, subject to customary regulatory and other closing requirements.

Scottsdale, Ariz.-based Go Daddy and England-based Host Europe are providers of web hosting and domain names.

Peabody levels emerge

Peabody Energy’s $950 million five-year covenant-light first-lien senior secured term loan (Ba3) made its way into the secondary market, and levels were seen at par ½ bid, 101 offered, according to a market source.

Pricing on the term loan is Libor plus 450 bps with a 1% Libor floor, and it was sold at an original issue discount of 99.5. The debt has 101 hard call protection for one year and a ticking fee of half the margin from days 32 to 61, the full margin from days 62 to 121 and the full margin plus the floor thereafter.

During syndication, the term loan was upsized from $500 million, pricing was reduced from Libor plus 525 bps, and the discount was changed from 98.5.

Goldman Sachs Bank USA, J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC and Macquarie Capital (USA) Inc. are leading the deal.

Peabody refinancing

Proceeds from Peabody’s term loan will be used to help refinance existing debt in connection with its exit from bankruptcy.

The company also plans on getting $1 billion in first-lien exit notes for the refinancing and $3.1 billion of total equity.

Due to the recent first-lien term loan upsizing, the company will no longer be getting $450 million in second-lien notes from existing second-lien noteholders with its restructuring.

Closing is expected in early April.

Peabody is a St. Louis-based coal producer.

ADT starts trading

ADT’s fungible $800 million covenant-light incremental term loan (Ba3) due May 2, 2022 broke as well, with levels seen by one trader at par 5/8 bid, 101 offered and by a second trader at par ¼ bid, 101 offered.

Pricing on the incremental loan is Libor plus 325 bps with a 1% Libor floor, which matches existing term loan pricing, and the debt was issued at par. There is 101 soft call protection through June 28.

On Tuesday, the issue price on the incremental loan was changed from 99.5, and the call protection was revised from a six months call.

Barclays, Deutsche Bank Securities Inc., RBC Capital Markets and Citigroup Global Markets Inc. are leading the deal that will fund distributions to the company’s equity holders and pay related fees and expenses.

Apollo is the sponsor.

ADT is a security services company.

Homer City frees to trade

Homer City Generation’s $150 million six-year senior secured term loan B hit the secondary market, with levels quoted at 98 bid, 99 offered, a trader remarked.

Pricing on the loan is Libor plus 825 bps with a 1% Libor floor, and it was sold at an original issue discount of 98. The term loan has 101 hard call protection for one year and a ticking fee of the full drawn spread after 45 days.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to fund a cash collateralized letter of credit account or to directly collateralize obligations, to collateralize hedging obligations, to fund the debt service reserve account, to pay associated fees and expenses, and for general corporate purposes.

Homer City Generation is an Indiana, Pa.-based operator of coal-fired electric generating units.

Ferro tops par

Ferro’s $357.5 million seven-year covenant-light term loan B began trading too, with levels quoted at par ¼ bid, par ¾ offered, a market source said.

Pricing on the term loan is Libor plus 250 bps with a 0.75% Libor floor, and it was sold at an original issue discount of 99.75. The debt has 101 soft call protection for six months.

The company is also getting a €250 million seven-year covenant-light term B priced at Euribor plus 275 bps with no floor and issued at a discount of 99.75. This tranche has 101 soft call protection for six months as well.

During syndication, pricing on the U.S. loan was cut from Libor plus 275 bps, pricing on the euro loan firmed at the low end of the Euribor plus 275 bps to 300 bps talk, and the discount on both loans tightened from 99.5.

Deutsche Bank Securities Inc., PNC Bank, Bank of America Merrill Lynch and HSBC Securities (USA) Inc. are leading the $625 million equivalent in total term loan debt (Ba3/BB-) that will refinance existing bank debt.

Closing is expected during the week of Feb. 13.

Ferro is a Mayfield Heights, Ohio-based functional coatings and color solutions provider that offers a portfolio of technology-based performance materials.

Windstream breaks

Windstream Services’ $580 million seven-year first-lien term loan (BB) also started trading, with levels seen at 99 ¾ bid, par offered, according to a market source.

Pricing on the term loan is Libor plus 325 bps with a 0.75% Libor floor, and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Barclays, Bank of America Merrill Lynch, Morgan Stanley Senior Funding Inc., Citigroup Global Markets Inc., RBC Capital Markets, CoBank, SunTrust Robinson Humphrey Inc., MUFG, BNP Paribas Securities Corp. and Deutsche Bank Securities Inc. are leading the deal that will be used to refinance an existing term loan.

Windstream is a Little Rock, Ark.-based provider of advanced communication and broadband, phone and digital TV services.

Arclin reworked

Switching to the primary market, Arclin lifted its seven-year covenant-light first-lien term loan to $480 million from $465 million, lowered pricing to Libor plus 425 bps from talk of Libor plus 475 bps to 500 bps and moved the original issue discount to 99.5 from 99, while leaving the 1% Libor floor and 101 soft call protection for six months intact, according to a market source.

Also, the company trimmed its eight-year covenant-light second-lien term loan to $125 million from $140 million, cut pricing to Libor plus 875 bps from talk of Libor plus 900 bps to 925 bps and tightened the discount to 99 from 98.5, the source said. This tranche still has a 1% Libor floor and call protection of 102 in year one and 101 in year two.

The company’s $680 million credit facility includes a $75 million ABL revolver as well.

Recommitments were due at 5 p.m. ET on Wednesday, the source added.

Credit Suisse Securities (USA) LLC and RBC Capital Markets are leading the deal that will be used to help fund the buyout of the company by Lonestar.

Arclin is an Atlanta-based provider of surface overlay solutions and performance resins.

Creative Artists cuts spread

Creative Artists lowered pricing on its $777.9 million seven-year covenant-light term loan B (B2) to Libor plus 350 bps from Libor plus 375 bps, and left the 1% Libor floor, original issue discount of 99.75 and 101 soft call protection for six months unchanged, according to a market source.

Recommitments are due at noon on Thursday, the source said.

Bank of America Merrill Lynch, Mizuho, Nomura, Credit Suisse Securities (USA) LLC, UBS Investment Bank, SunTrust Robinson Humphrey Inc. and M&T Bank are leading the deal that will be used to refinance an existing term loan B and to fund a distribution to shareholders.

Creative Artists is a Los Angeles-based entertainment and sports firm.

NBTY tweaks deal

NBTY lifted the spread on the repricing of its U.S. term loan B to Libor plus 350 bps from talk of Libor plus 300 bps to 325 bps and firmed the repricing of its sterling term loan B at Libor plus 425 bps, the low end of the Libor plus 425 bps to 450 bps talk, a source said.

Both term loans still have a 1% Libor floor, a par issue price and 101 soft call protection for six months.

Bank of America Merrill Lynch is leading the deal that will reprice the existing U.S. term loan down from Libor plus 400 bps with a 1% Libor floor and the sterling term loan down from Libor plus 525 bps with a 1% Libor floor.

NBTY is a Ronkonkoma, N.Y.-based manufacturer, marketer, distributor and retailer of vitamins and nutritional supplements.

Sesac moves deadline

Sesac Holdings accelerated the commitment deadline on its $565 million credit facility to 5 p.m. ET on Thursday from Friday, a market source said.

The facility consists of a $40 million revolver (B2/B+), a $365 million first-lien term loan (B2/B+) and a $160 million second-lien term loan (Caa2/CCC+).

Talk on the first-lien term loan is Libor plus 325 bps to 350 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, and talk on the second-lien term loan is Libor plus 750 bps with a 1% Libor floor, a discount of 99 and hard call protection of 102 in year one and 101 in year two.

Jefferies Finance LLC and Guggenheim are leading the deal that will be used to help fund the buyout of the company by Blackstone from Rizvi Traverse Management.

Closing is expected by the end of this quarter.

Sesac is a Nashville, Tenn.-based music rights organization.

VC GB releases talk

Also on the new deal front, VC GB Holdings held its bank meeting on Wednesday, and with the event, price talk on its $490 million seven-year covenant-light first-lien term loan (B1/B) and $160 million eight-year covenant-light second-lien term loan (Caa1/CCC+) was announced, according to a market source.

Talk on the first-lien term loan is Libor plus 400 bps to 425 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and talk on the second-lien term loan is Libor plus 800 bps to 825 bps with a 1% Libor floor, a discount of 98.5 and hard call protection of 102 in year one and 101 in year two, the source said.

Commitments are due at noon ET on Feb. 22.

Deutsche Bank Securities Inc. and Barclays are leading the $650 million in term loans that will be used to help fund AEA Investors LP’s investment in Visual Comfort alongside its current investment in Generation Brands.

Closing is expected on Feb. 28, the source added.

VC GB is a decorative lighting company.

Cypress reveals guidance

Cypress Semiconductor came out with price talk on its $1,073,750,000 senior secured credit facility with its lender call in the morning, a market source remarked.

The $540 million revolver due March 12, 2020 is talked at Libor plus 225 bps with no floor and an original issue discount of 99.9, the $95 million term loan A due March 12, 2020 is talked at Libor plus 375 bps to 400 bps with no floor and a discount of 99.75, and the $438,750,000 term loan B due July 5, 2021 is talked at Libor plus 375 bps to 400 bps with no floor, a par issue price for rolled commitments, a discount of 99.5 for new commitments and 101 soft call protection for six months, the source continued.

Morgan Stanley Senior Funding Inc., Bank of America Merrill Lynch and Barclays are leading the deal that will amend the existing senior secured credit facility and reprice the term loan A and term loan B.

As part of the transaction, the total leverage covenant is being amended to 4.25 times through Dec. 31, 2017, 4 times through June 30, 2018 and 3.75 times thereafter.

Commitments/consents are due on Feb. 14, the source added.

Cypress is a San Jose, Calif.-based manufacturer of mixed-signal integrated circuits.

Sabre comes to market

Sabre hosted a call at 2 p.m. ET on Wednesday to launch a $1.9 billion seven-year covenant-light term loan B talked at Libor plus 275 bps with no Libor floor, an original issue discount of 99.5 to 99.75 and 101 soft call protection for six months, a market source said.

Commitments are due at 5 p.m. ET on Tuesday, the source added.

Bank of America Merrill Lynch, Goldman Sachs Bank USA, J.P. Morgan Securities LLC, Mizuho, Wells Fargo Securities LLC, Natixis, Morgan Stanley Senior Funding Inc. and MUFG are leading the deal that will be used to refinance existing debt and for general corporate purposes.

Sabre is a Southlake, Texas-based online travel company.

Gavilan terms surface

Gavilan held its bank meeting, launching its up to $500 million second-lien term loan at talk of Libor plus 650 bps with a 1% Libor floor, an original issue discount of 98.5 and call protection of non-callable for one year, then at 102 in year two and 101 in year three, according to a market source.

Commitments are due on Feb. 23, the source said.

J.P. Morgan Securities LLC is leading the deal.

Proceeds will be used to help fund the acquisition by Sanchez Energy Corp. and Blackstone Energy Partners of Anadarko Petroleum Corp.’s working interest in around 318,000 gross operated acres in the Western Eagle Ford for about $2.3 billion, subject to normal and customary closing conditions and purchase price adjustments.

Closing is expected this quarter, subject to customary conditions.

At the end of the fourth quarter of 2016, sales volumes from the properties being acquired totaled about 45,000 barrels of liquids per day and around 131 million cubic feet of natural gas per day.

C.H.I. Overhead holds call

C.H.I. Overhead Doors held a lender call at 9:30 a.m. ET, launching a repricing of its $430.7 million first-lien term loan at talk of Libor plus 325 bps with a 1% Libor floor and a par issue price, according to a market source.

Commitments are due on Friday, the source said.

UBS Investment Bank is leading the deal that will reprice the existing term loan down from Libor plus 375 bps with a 1% Libor floor.

C.H.I. Overhead is an Arthur, Ill.-based manufacturer and marketer of overhead garage doors.

PLZ Aeroscience details

PLZ Aeroscience revealed with its call that it is seeking a $464.5 million covenant-light term loan talked at Libor plus 350 bps with a step-down to Libor plus 325 bps when total net leverage is below 3.75 times, a 1% Libor floor, a par issue price and 101 soft call protection for six months, a market source said.

Commitments are due on Feb. 15, the source added.

Antares Capital is leading the deal that will be used to refinance an existing term loan.

PLZ is a manufacturer of specialty aerosol products.

SeaStar seeks repricing

SeaStar Solutions hosted a lender call at 1:30 p.m. ET, launching a repricing of its $272 million term loan B at talk of Libor plus 350 bps to 375 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Commitments are due at noon ET on Feb. 15, the source said.

RBC Capital Markets is leading the deal that will reprice the existing term loan B down from Libor plus 425 bps with a 1% Libor floor.

SeaStar is a Litchfield, Ill.-based manufacturer and distributor of marine steering and control systems and engine and drive parts.

U.S. Farathane launches

U.S. Farathane launched with a lender call a repricing of its $533.7 million term loan B due Dec. 23, 2021 talked at Libor plus 400 bps to 425 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, a market source remarked.

Commitments are due at noon ET on Tuesday, the source added.

Bank of America Merrill Lynch is the left lead bank on the deal that will reprice the existing term loan down from Libor plus 475 bps with a 1% Libor floor.

U.S. Farathane is an Auburn Hills, Mich.-based manufacturer of single-shot and multi-shot injection molded, compression molded and extruded components and assemblies, primarily for use in lightweight vehicles.

CDW readies deal

CDW set a lender call for Thursday to launch a repricing of its $1.49 billion term loan B talked at Libor plus 200 bps with no Libor floor, an original issue discount of 99.875 to par and 101 soft call protection for six months, a market source said.

J.P. Morgan Securities LLC is leading the deal that will reprice the existing term loan down from Libor plus 225 bps with a 0.75% Libor floor.

CDW is a Lincolnshire, Ill.-based technology solutions provider to business, government, education and health care organizations.

Russell on deck

Russell Investments scheduled a lender call for 11 a.m. ET on Thursday to launch a fungible $200 million add-on term loan B due 2023, according to a market source.

Barclays is leading the deal that will be used to fund a one-time distribution to shareholders and pay transaction-related fees and expenses.

Russell Investments is a Seattle-based asset manager.

Navistar closes

In other news, Navistar International Corp. completed the repricing of its $1,027,000,000 senior secured term loan B due August 2020, according to a news release.

Pricing on the loan is Libor plus 400 bps with a 1% Libor floor, and it was sold at an original issue discount of 99.75. The debt has 101 hard call protection through August 2017.

During syndication, the spread on the loan firmed at the low end of the Libor plus 400 bps to 425 bps talk.

J.P. Morgan Securities LLC led the deal that repriced the existing term loan down from Libor plus 550 bps with a 1% Libor floor.

Navistar is a Lisle, Ill.-based manufacturer and seller of commercial and military trucks, buses and diesel engines and a provider of service parts for trucks and trailers.

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