Tower Automotive, VIP Cinema break; Neustar, CBS Radio, SeaWorld, Internet Brands revised

By Sara Rosenberg

New York, March 1 – Tower Automotive Holdings USA LLC firmed the spread on its term loan B at the tight side of guidance, and then the debt broke for trading on Wednesday, and VIP Cinema’s credit facility hit the secondary market as well.

In more happenings, Neustar Inc. moved some funds between its first-lien term loan B-2 and second-lien term loan and updated pricing on those tranches as well as on its first-lien term loan B-1, and CBS Radio Inc. lowered pricing on its term loan B, modified the issue price and revised the ticking fee.

Also, SeaWorld Entertainment Inc. upsized its term loan B-5 while setting the spread at the tight side of talk and dropped plans for a term loan B-4, and Internet Brands Inc. increased the size of its incremental term loan and revised the original issue discount.

Additionally, Lumileds (Bright Bidco BV), Foresight Energy LLC, Arctic Glacier LLC, Cole-Parmer Instrument Co., Ineos Styrolution Group GmbH and Boyd Gaming Corp. disclosed price talk with launch.

Furthermore, Univision Communications Inc., Summit Midstream Partners Holdings LLC, Big Jack’s Holdings LP (Jack’s Family Restaurant), RPI Finance Trust (Royalty Pharma), Western Digital Corp., PPC Industries and Lakeview Loan Servicing LLC surfaced with new deal plans.

Tower sets spread, trades

Tower Automotive finalized pricing on its $361.5 million seven-year term loan B (B1/BB-) at Libor plus 275 basis points, the low end of the Libor plus 275 bps to 300 bps, and left the 0% Libor floor, original issue discount of 99.5 and 101 soft call protection for six months intact, a market source said.

With terms set, the loan began trading on Wednesday and levels were seen at par ¼ bid, par ¾ offered, a trader added.

Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Wells Fargo Securities LLC, Goldman Sachs Bank USA and Citizens are leading the deal that will be used to refinance existing debt.

Closing is expected on Monday.

Tower Automotive is a Livonia, Mich.-based supplier of automotive metal structural components and assemblies.

VIP Cinema starts trading

VIP Cinema’s credit facility freed up as well, with the $165 million six-year first-lien term loan (B1/B+) quoted at par ½ bid, a trader remarked.

Pricing on the first-lien term loan is Libor plus 600 bps with a step-down to Libor plus 575 bps based on leverage and a 1% Libor floor. The debt was sold at a discount of 99.5 and has 101 soft call protection for one year.

The $230 million credit facility also includes a $20 million five-year revolver (B1/B+) priced at Libor plus 600 bps and a $45 million seven-year second-lien term loan (Caa1/CCC+) that was pre-placed with Oaktree Capital in the Strategic Credit fund at pricing of Libor plus 950 bps with a 1% Libor floor.

During syndication, the spread on the first-lien term loan and the revolver was increased from talk of Libor plus 550 bps to 575 bps, the step-down was added to the first-lien term loan, the discount on the first-lien term loan was revised from 99, the call protection on the first-lien term loan was extended from six months, and the MFN sunset was eliminated.

BNP Paribas Securities Corp. and Goldman Sachs Bank USA are leading the deal that will be used to help fund the buyout of the New Albany, Miss.-based cinema seating company by H.I.G. Capital.

Interior Logic tops OID

Also in the secondary market, Interior Logic Group’s $255 million seven-year covenant-light term loan B (B3/B) was quoted at 97½ bid on Wednesday after allocating on Tuesday, a trader said.

Pricing on the loan is Libor plus 600 bps with a 1% Libor floor, and it was sold at an original issue discount of 97. The debt includes hard call protection of 102 in year one and 101 in year two.

On Monday, pricing on the term loan was increased from Libor plus 450 bps, the discount widened from 99, the call protection was changed from a 101 soft call for one year and amortization was lifted to 5% per annum from 1% per annum.

Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Jefferies Finance LLC are leading the deal that will be used to help fund the buyout of the company by Platinum Equity.

Interior Logic is a provider of interior finish products to builders and their customers.

BWIC announced

A $136 million Bid Wanted In Competition surfaced, with bids due at 11 a.m. ET on Thursday, according to a trader.

Some of the names in the portfolio are Affinion Group Inc., American Airlines Inc., Capsugel Holdings US Inc., Community Health Systems Inc., Federal-Mogul Corp., Las Vegas Sands LLC, Transdigm Inc., Univision Communications Inc., Vantiv LLC and Weight Watchers International Inc.

There are about 92 issuers in the BWIC, the trader added.

Neustar reworked

Back in the primary market, Neustar lifted its seven-year first-lien term loan B-2 to $975 million from $950 million, firmed pricing at Libor plus 375 basis points, the low end of the Libor plus 375 bps to 400 bps talk, and set the original issue discount at 99.5, the tight end of the 99 to 99.5 talk, while leaving the 1% Libor floor and 101 soft call protection for six months unchanged, according to a market source.

Additionally, pricing on the $350 million 2.5-year first-lien term loan B-1 was left at Libor plus 325 bps with a 0% Libor floor, but the issue price was changed to par from 99.5, the source said. This tranche still has 101 soft call protection for six months.

Regarding the company’s eight-year second-lien term loan, it was trimmed to $325 million from $350 million, the spread was set at Libor plus 800 bps, the low end of the Libor plus 800 bps to 850 bps talk, and the discount finalized at 98.5, the wide end of the 98.5 to 99 talk, the source continued. The loan still has a 1% Libor floor and hard call protection of 102 in year one and 101 in year two.

Another revision was that the MFN is now 50 bps for 18 months instead of 75 bps for 12 months.

Neustar lead banks

Bank of America Merrill Lynch, UBS Investment Bank, Jefferies Finance LLC, Credit Suisse Securities (USA) LLC, Mizuho, Societe Generale and Angel Island Capital are leading Neustar’s credit facility, with Bank of America left lead on the first-lien debt and UBS left lead on the second-lien loan.

Recommitments were due at 11 a.m. ET on Wednesday, the source added.

Proceeds will be used with equity to fund the buyout of the company by Golden Gate Capital for $33.50 per share in cash. The transaction is valued at about $2.9 billion, including debt to be refinanced.

Closing is expected by the end of the third quarter, subject to shareholder approval, regulatory approval and other customary conditions.

Neustar is a Sterling, Va.-based provider of real-time information services.

CBS Radio revised

CBS Radio cut pricing on its $500 million seven-year senior secured term loan B (Ba3/BB-) to Libor plus 275 bps from talk of Libor plus 300 bps to 325 bps, changed the issue price to par from 99.5, and adjusted the ticking fee to half the spread from days 31 to 90 and the full spread thereafter from half the spread from days 31 to 60 and the full spread thereafter, a source remarked.

The loan still has a 0% Libor floor and 101 soft call protection for six months.

Recommitments were due end of day on Wednesday, the source added.

Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc., Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch, Wells Fargo Securities LLC, J.P. Morgan Securities LLC, Citigroup Global Markets Inc. and Deutsche Bank Securities Inc. are leading the deal.

CBS Radio merging

CBS Radio’s term loan is being done in connection with its merger with Entercom Communications Corp., and will be used to refinance Entercom’s existing $465 million term loan B and to pay down $28 million of Entercom’s convertible preferreds.

Upon completion, CBS Radio shareholders will receive about 105 million Entercom shares, or 72% of all outstanding shares of the combined company on a fully diluted basis. Existing Entercom shareholders will own 28% of the combined company on a fully diluted basis.

Closing is expected in the second half of this year, subject to approval by Entercom shareholders, regulatory approvals and other customary conditions.

The combined radio broadcasting company will be known as Entercom and will be based in Philadelphia.

SeaWorld restructures

SeaWorld lifted its term loan B-5 to a range of $900 million to $1 billion from $400 million and set pricing at Libor plus 300 bps, the low end of the Libor plus 300 bps to 325 bps talk, according to a market source.

The term loan B-5 still has a 0.75% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

With the upsizing of the B-5 loan, the company canceled plans for a $400 million term loan B-4 that was talked at Libor plus 275 bps to 300 bps with a 0.75% Libor floor, a discount of 99.75 and 101 soft call protection for six months, the source said.

Recommitments were due at 5 p.m. ET on Wednesday.

Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Fifth Third, Goldman Sachs Bank USA and KeyBanc Capital Markets are leading the deal that will be used to refinance existing debt.

SeaWorld is an Orlando, Fla.-based theme park operator.

Internet Brands modified

Internet Brands raised its covenant-light incremental first-lien term loan due July 2021 to $340 million, including a $120 million delayed-draw tranche, from $300 million, including a $100 million delayed-draw tranche, and moved the original issue discount to 99.75 from talk of 99 to 99.5, a market source remarked.

As before, the incremental loan is priced at Libor plus 375 bps with a leverage-based step-up to Libor plus 400 bps and a 1% Libor floor, in line existing first-lien term loan pricing, there is a ticking fee of the full spread plus the floor from days 31 to 180 with funding into escrow thereafter, and the debt has 101 soft call protection for six months.

Recommitments are due at noon ET on Thursday, the source added.

Credit Suisse Securities (USA) LLC, KKR Capital Markets LLC, RBC Capital Markets LLC, Mizuho Bank Ltd. and Sumitomo Mitsui Bank Corp. are leading the deal that will be used to fund cash to the balance sheet for future acquisitions.

The borrowers are MH Sub I LLC and Micro Holding Corp.

Internet Brands is an El Segundo, Calif.-based provider of vertically focused online media and software services.

Lumileds releases guidance

Lumileds disclosed talk of Libor plus 500 bps to 525 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months on its $1.15 billion seven-year covenant-light first-lien term loan (Ba3/B+) that launched with a bank meeting on Wednesday, a market source said.

Commitments are due at 5 p.m. ET on March 15, the source added.

Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, BNP Paribas Securities Corp., ING Capital Markets and Rabobank are leading the deal that will be used to help fund the acquisition of an 80.1% interest in the company by Apollo Global Management LLC from Royal Philips, who will retain the remaining 19.9% interest.

The transaction values Lumileds at an enterprise value of about $2 billion, including debt and debt-like items. Royal Philips expects to receive cash proceeds, before tax and transaction-related costs, of around $1.5 billion and participating preferred equity.

Closing is expected in the first half of this year, subject to customary conditions and regulatory approvals.

Lumileds is a supplier of LED components and automotive lighting.

Foresight details emerge

Foresight Energy held its bank meeting in the morning, launching to investors a $750 million five-year term loan talked at Libor plus 550 bps to 575 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.

Commitments are due at 5 p.m. ET on March 14, the source said.

The company’s senior secured first-lien credit facility (B/B+) also includes a $170 million revolver.

Goldman Sachs Bank USA, Huntington, Deutsche Bank Securities Inc. and Citigroup Global Markets Inc. are leading the deal that will be used with new senior secured second-priority notes due 2024 and about $78 million of cash on hand to refinance about $349 million in second-lien senior secured PIK notes due 2021, about $300 million in second-lien senior secured exchangeable PIK notes due 2017, about $353 million in revolver borrowings and about $296 million in term loan debt.

With the refinancing, Murray Energy Corp. intends to contribute to Foresight Energy about $60.6 million in cash in the form of common equity and is expected to exercise its option to acquire an additional 46% voting interest in Foresight Energy GP LLC, increasing its voting interest to 80%.

Foresight Energy is a St. Louis-based producer and marketer of thermal coal.

Arctic Glacier launches

Arctic Glacier released talk of Libor plus 475 bps with a 1% Libor floor and an original issue discount of 99 on its $415 million seven-year covenant-light first-lien term loan with its morning bank meeting, a source said.

As previously reported, the term loan has 101 soft call protection for six months.

The company’s $475 million credit facility (B2/B-) also includes a $60 million revolver.

Commitments are due at 5 p.m. ET on March 15.

Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc. and Societe Generale are leading the deal that will be used to help fund the buyout of the company by the Carlyle Group.

Arctic Glacier is a Winnipeg, Man.-based manufacturer and distributor of packaged ice.

Cole-Parmer terms surface

Cole-Parmer Instrument held its bank meeting, at which time investors were presented with a $410 million covenant-light first-lien term loan (B2) talked at Libor plus 400 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

Commitments are due on March 15, the source said.

The company’s $620 million credit facility also includes a $40 million revolver (B2) and a $180 million pre-placed second-lien term loan (Caa2).

Jefferies Finance LLC, Antares Capital and Golub are leading the deal that will be used to help fund the buyout of the company by Golden Gate Capital from GTCR.

Closing is expected this quarter.

Cole-Parmer is a Vernon Hills, Ill.-based provider of laboratory and industrial fluid handling products, instrumentation, equipment and supplies.

Ineos reveals talk

Ineos Styrolution came out with price talk on its U.S. and euro term loans in connection with its morning lender call, a market source remarked.

The $419 million term loan B due 2024 is talked at Libor plus 275 bps to 300 bps with a 0% Libor floor and an original issue discount of 99.875 to par, and the €623 million term loan B due 2024 is talked at Euribor plus 250 bps to 275 bps with a 0.75% floor and a discount of 99.875 to par, the source continued.

Commitments are due at the close of business on Tuesday.

Credit Suisse Securities (USA) LLC and J.P. Morgan Securities LLC are leading the deal that will be used to refinance and extend an existing $419 million term loan B and an existing €623 million term loan B, with Credit Suisse the left lead on the U.S. loan and JPMorgan the left lead on the euro loan.

Ineos Styrolution is a Frankfurt, Germany-based styrenics supplier with a focus on styrene monomer, polystyrene, ABS Standard and styrenic specialties.

Boyd holds call

Boyd Gaming hosted a lender call in the afternoon to launch a $1,265,000,000 term loan due September 2023 talked at Libor plus 250 bps to 275 bps with a 0% 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 Tuesday, the source said.

Bank of America Merrill Lynch is the left lead on the deal that will be used to reprice an existing term loan B-2 due September 2023 from Libor plus 300 bps with a 0% Libor floor and refinance an existing term loan B-1 due Aug. 14, 2020 that is priced at Libor plus 300 bps with a 1% Libor floor.

Boyd is a Las Vegas-based operator of gaming entertainment properties.

Univision joins calendar

In more primary news, Univision Communications scheduled a lender call for 10:30 a.m. ET on Thursday to launch a $4,475,000,000 covenant-light term loan C-5 due March 2024 talked at Libor plus 275 bps with a 1% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months, according to a market source.

Commitments are due at noon ET on March 8, the source said. Cashless roll is available.

Deutsche Bank Securities Inc., Bank of America Merrill Lynch, Barclays, Wells Fargo Securities LLC, Citigroup Global Markets Inc., Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc., J.P. Morgan Securities LLC and Natixis are leading the deal that will be used to extend existing term loans due March 2020 and reprice them from Libor plus 300 bps with a 1% Libor floor.

Univision is a New York-based media company serving the Hispanic market.

Summit readies loan

Summit Midstream Partners set a bank meeting for noon ET in New York on Thursday to launch a $300 million first-lien term loan B due May 2022 talked at Libor plus 600 bps to 625 bps with a 1% Libor floor, an original issue discount of 99 and call protection of 102 in year one and 101 in year two, a market source said.

Commitments are due at 5 p.m. ET on March 16, the source added.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Barclays are leading the deal that will be used to refinance preferred debt and to fund a shareholder distribution.

Summit Midstream Partners is a The Woodlands, Texas-based owner and operator of midstream energy infrastructure assets.

Big Jack’s coming soon

Big Jack’s scheduled a bank meeting for 10 a.m. ET in New York on Monday to launch a $305 million senior secured credit facility, according to a market source.

The facility consists of a $30 million five-year revolver and a $275 million seven-year term loan B, the source said.

RBC Capital Markets, Morgan Stanley Senior Funding Inc. and Bank of America Merrill Lynch are leading the deal.

Onex Partners Manager LP is the sponsor.

Big Jack’s is an Alabama-based operator of premium quick-service restaurants.

RPI Finance on deck

RPI Finance Trust will hold a lender call at 10 a.m. ET on Monday to launch a $1.1 billion six-year term loan B-6, according to a market source.

Bank of America Merrill Lynch is leading the deal that will be used to help fund the acquisition of Perrigo Co. plc’s rights to the royalty stream from the global net sales of the multiple sclerosis drug Tysabri for $2.2 billion in cash at closing and up to $650 million in potential milestone payments based upon future global net sales of Tysabri during 2018 and 2020.

Closing is expected in the next 30 days.

Royalty Pharma is a New York-based acquirer of royalty interests in marketed and late-stage biopharmaceutical products.

Western Digital repricing

Western Digital scheduled a lender call for Thursday to launch a repricing of its $2,985,000,000 term loan B-2 due April 2023 and its €880,580,000 term loan due April 2023, according to a market source.

The U.S. term loan B-2 is talked at Libor plus 275 bps, and the euro term loan is talked at Euribor plus 200 bps to 225 bps, with both having a 0.75% floor, a par issue price and 101 soft call protection for six months, the source said.

J.P. Morgan Securities LLC and Bank of America Merrill Lynch are leading the deal, with JPMorgan left on the U.S. loan and Bank of America left on the euro loan.

The repricing will take the U.S. term loan down from Libor plus 375 bps with a 0.75% Libor floor and the euro term loan down from Euribor plus 325 bps with a 0.75% floor.

Western Digital is an Irvine, Calif.-based developer and manufacturer of storage solutions that enable people to create, manage, experience and preserve digital content.

PPC schedules meeting

PPC Industries surfaced with plans to hold a bank meeting in New York on March 16 to launch a $517 million credit facility, according to a market source.

The facility consists of a $40 million five-year revolver, a $360 million seven-year first-lien term loan and a $117 million eight-year second-lien term loan, the source said.

Antares Capital is leading the deal that will be used to help fund the acquisition of Pexco LLC, a custom plastic extruder serving the medical and specialty industrial end markets.

PPC, a portfolio company of Kohlberg & Co., is a provider of highly engineered consumable specialty plastics to the medical, food and industrial markets. The combined entity will be based in Alpharetta, Ga.

Lakeview plans loan

Lakeview Loan Servicing set a bank meeting for 10 a.m. ET in New York on Thursday to launch a $500 million five-year secured term loan talked at Libor plus 400 bps with a 0.5% Libor floor and upfront fees that are tiered based on commitment size, a market source said.

M&T Bank and Fifth Third Bank are leading the deal that will be used to fund the purchase of mortgage servicing rights and for general corporate purposes.

Lakeview Loan is a Coral Gables, Fla.-based mortgage finance company.

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