US Foods, Clondalkin break; Guitar Center up with amendment launch; YP, Alliance tweak deals

By Sara Rosenberg

New York, May 28 - US Foods Inc. finalized the spread on its term loan at the high side of guidance and then freed up for trading on Tuesday, Clondalkin Group Holdings BV broke as well, and Guitar Center Inc.'s term loan was stronger with amendment news.

Shifting to the primary market, YP LLC revised talk on the size of its term loan B for a second time and widened the coupon guidance as well as the original issue discount offered, Alliance HealthCare Services Inc. trimmed its term loan pricing and added a delayed-draw tranche, InterGen NV released talk with its bank meeting and MacDermid Inc. launched its deal at the low end of early price talk.

Also, ConvergEx Group started circulating guidance on its upcoming term loan B, and RCN Cable (RCN Services Telecom LLC), Jazz Pharmaceuticals, Harvey Gulf International Marine LLC and Sedgwick Claims Management Services Inc. emerged with new deal plans.

US Foods hits secondary

US Foods' $2.1 billion senior secured covenant-light term loan due March 31, 2019 broke for trading on Tuesday, with levels quoted at 99 5/8 bid, par 1/8 offered, according to a market source.

Pricing on the loan is Libor plus 350 basis points, after firming at the wide end of the Libor plus 325 bps to 350 bps talk, a source said. There is a 1% Libor floor and 101 soft call protection for six months, and the debt was issued at an original issue discount of 991/2.

Citigroup Global Markets Inc. is leading the deal that will refinance a $1,674,000,000 term loan and a $417 million term loan, both due in 2017.

US Foods, a Chicago-based broadline foodservice distributor, expects to close on the transaction in early June.

Clondalkin starts trading

Clondalkin Group's credit facility also made its way into the secondary market, with the $360 million seven-year covenant-light first-lien term loan (B2) quoted at par ¼ bid, 101 offered, and the $95 million 71/2-year covenant-light second-lien term loan (Caa2) quoted at 98¾ bid, 99¾ offered, a market source said.

Pricing on the first-lien term loan is Libor plus 450 bps with a 1.25% Libor floor, and it was sold at a discount of 993/4. There is 101 soft call protection for six months.

The second-lien loan, meanwhile, is priced at Libor plus 875 bps with a 1.25% Libor floor, and was sold at 98. The debt is non-callable for six months, then at 103 for six months, then at 102 for a year and 101 for a year.

Recently, the first-lien loan was upsized from $350 million and the discount was tightened from 991/2. And the second-lien loan was downsized from $105 million, the spread was increased from Libor plus 825 bps, the discount was revised from 99 and the call protection was sweetened from 103 in year one, 102 in year two and 101 in year three.

Clondalkin getting revolver

In addition to the term loans, Clondalkin's $490 million credit facility also provides for a $35 million revolver.

Deutsche Bank Securities Inc. and Goldman Sachs & Co. are leading the transaction.

Proceeds will be used to refinance existing debt.

Clondalkin is an Amsterdam-based provider of packaging products and services.

Guitar Center rises

In more trading happenings, Guitar Center's term loan moved on Tuesday to par ¼ bid, par ¾ offered from 99¼ bid, par offered as an amendment was announced for existing lenders only, according to a trader.

A call to discuss the amendment was held at 4 p.m. ET on Tuesday, a source added.

In the afternoon, Standard & Poor's announced that it lowered the corporate credit rating on Guitar Centers and its term loan rating to CCC+ from B-, and the outlook is negative. The ABL revolver rating was cut to B from B+.

"Our rating action reflects our view that the company's financial commitments are not sustainable in the long term given weaker than expected performance over the past two quarters," credit analyst Mariola Borysiak said in the rating release.

"It also reflects our view of the company's deteriorating liquidity position as we expect the company will have to borrow under its revolver to fund its operating and financing needs. In addition, we believe Guitar Center will have to amend its credit agreement within the next quarter in order to remain compliant with its financial covenants," Borysiak added.

Guitar Center is a Westlake Village, Calif.-based retailer of musical instruments.

YP reworks B loan

Over in the primary, YP came out with revised size talk on its five-year term loan B (B2/B) of $650 million to $700 million from just $650 million last week and $775 million at launch, according to a market source.

In addition, price talk on the loan was increased to Libor plus 650 bps to 675 bps from Libor plus 550 bps to 600 bps and the original issue discount was changed to 97½ from 981/2, the source remarked.

As before, the loan has a 1.25% Libor floor and 101 soft call protection for one year.

Recommitments are due at 3 p.m. ET on Wednesday, the source added.

Proceeds from the new term loan B and a new $450 million five-year ABL revolver will be used to refinance all of the company's existing debt and fund a distribution to equity holders.

J.P. Morgan Securities LLC and PNC Capital Markets LLC are leads on the term loan, and PNC is leading the revolver.

YP is a Tucker, Ga.-based provider of local business print, online and mobile directory services.

Alliance HealthCare revised

Alliance HealthCare lowered pricing on its $340 million six-year first-lien term loan to Libor plus 325 bps from Libor plus 350 bps, while keeping the 1% Libor floor, original issue discount of 99½ and 101 soft call protection for six months intact, according to a market source.

Also, an $80 million delayed-draw term loan was added to the deal with pricing of Libor plus 325 bps with a 1% Libor floor and an original issue discount of 991/2, the source said. This tranche has 101 soft call protection for six months as well.

The company's now $470 million credit facility (Ba3/BB-) includes a $50 million five-year revolver too.

Recommitments are due at noon ET on Wednesday, the source continued.

Credit Suisse Securities (USA) LLC, Jefferies Finance LLC, SunTrust Robinson Humphrey Inc. and Deutsche Bank Securities Inc. are leading the deal that will be used to refinance existing debt.

Alliance HealthCare is a Newport Beach, Calif.-based provider of advanced outpatient diagnostic imaging and radiation therapy service.

InterGen sets talk

InterGen held its bank meeting on Tuesday, launching its $500 million term loan with talk of Libor plus 375 bps to 400 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.

The power generation company's new $1 billion senior secured credit facility (B1/B+) also includes $500 million in revolvers that will be split between a U.S. tranche and a GBP tranche.

Deutsche Bank Securities Inc., Barclays, Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Mitsubishi UFJ, RBC Capital Markets and Citigroup Global Markets Inc. are leading the deal that will help fund a tender offer for the company's 9½% senior secured notes due 2017, 9% senior secured notes due 2017 and 8½% senior secured notes due 2017, to repay an existing corporate debt facility, and for general corporate purposes.

Other funds for the transaction will come from a $700 million equity contribution and an $800 million offering of senior secured notes.

MacDermid launches

MacDermid launched its $1.14 billion senior secured credit facility with price talk that is at the tight end of the previously released guidance and is asking lenders to get their commitments it by June 5, according to a market source.

The facility consists of a $50 million five-year revolver (Ba3/B), a $755 million seven-year covenant-light first-lien term loan (Ba3/B) and a $335 million 71/2-year covenant-light second-lien term loan (Caa1/B-).

The first-lien term loan is talked at Libor plus 325 bps with a 1% Libor floor, an original issue discount of 99½ and 101 repricing protection for six months, and the second-lien term loan is talked at Libor plus 725 bps with a 1% Libor floor, a discount of 99 and call protection of 103 in year one, 102 in year two and 101 in year three, the source said.

Prior to launch, talk on the first-lien loan was in the Libor plus 325 bps to 350 bps range and on the second-lien term loan was in the Libor plus 725 bps to 750 bps area.

MacDermid lead banks

Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA and Nomura are leading MacDermid's credit facility that will be used to refinance existing debt and repay preferred equity.

The company is tendering for its $350 million 9½% senior subordinated notes due 2017 in an offer that will expire on June 19 and is subject to the entrance into the new credit facility.

MacDermid is a Denver-based manufacturer of specialty chemicals to the electronics, industrial, offshore and printing industries.

ConvergEx floats talk

ConvergEx released talk of Libor plus 850 bps with no Libor floor and an original issue discount of 98 to 99 on its $150 million five-year term loan B as a call has been scheduled for Wednesday to launch the transaction to investors, according to a market source.

The term B is non-callable for one year, then at 102 in year two, and amortizes at a rate of 7½% in years one, two and three, and 10% in years four and five, the source continued.

The company's $175 million credit facility (B+) also includes a $25 million revolver.

Goldman Sachs Bank USA is leading the transaction that will be used to refinance existing debt.

ConvergEx is a New York-based provider of global brokerage and trading related services.

RCN readies deal

RCN Cable set a call for 11 a.m. ET on Wednesday to launch an $848 million credit facility that includes a $40 million revolver and an $808 million first-lien term loan due March 2020, according to a market source.

Talk on the term loan is Libor plus 325 bps to 350 bps with a 1% Libor floor, a par offer price and 101 repricing protection for six months, the source said.

Credit Suisse Securities (USA) LLC and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to reprice an existing term loan from Libor plus 400 bps with a 1.25% Libor floor and to amend the credit agreement to permit the incurrence of unsecured debt.

Existing term loan lenders will get paid out at 101 with this transaction.

Commitments for the cable provider's deal are due on June 5, the source added.

Jazz Pharma coming soon

Jazz Pharmaceuticals will hold a lender call at 2 p.m. ET on Wednesday to launch a $757,187,500 senior secured credit facility that will be used to refinance an existing credit facility and for general corporate purposes, according to a market source.

The facility consists of a $100 million revolver due June 2017, a $100 million add-on revolver due June 2017, a $457,187,500 term loan due June 2018 and a $100 million add-on term loan due June 2018, the source said.

Barclays, Citigroup Global Markets Inc. and J.P. Morgan Securities LLC are leading the deal.

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

Harvey Gulf on deck

Harvey Gulf scheduled a bank meeting for Thursday to launch a $750 million seven-year covenant-light term loan B that has 101 soft call protection for one year, according to sources.

Bank of America Merrill Lynch is the left lead on the deal.

Proceeds will refinance existing debt and fund the acquisition of vessels.

Harvey Gulf is a New Orleans-based marine transportation company that specializes in towing drilling rigs and providing offshore supply and multi-purpose support vessels for deepwater water operations.

Sedgwick joins calendar

Sedgwick Claims Management Services plans to host a call on Wednesday a $1,195,000,000 credit facility, according to sources.

The facility consists of a $60 million five-year revolver, an $850 million five-year first-lien term loan with 101 soft call protection for six months and a $285 million 51/2-year second-lien term loan with call protection of 102 in year one and 101 in year two, sources said.

Bank of America Merrill Lynch, Barclays, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and MCS Capital are leading the deal that will be used to refinance existing debt and fund a dividend.

Sedgwick is a Memphis, Tenn.-based provider of claims and productivity management services to corporate and institutional clients.

Orbitz closes

In other news, Orbitz Worldwide Inc. completed the refinancing/repricing of its $450 million of term loans, according to a news release.

The company got a $100 million term loan B due September 2017 priced at Libor plus 350 bps with a step-down to Libor plus 325 bps when senior secured leverage is 2.5 times. There is a 1% Libor floor and 101 repricing protection for six months, and the debt was issued at par.

Also, the Chicago-based online travel agency entered into a $350 million term C due March 2019 priced at Libor plus 475 bps with a step to Libor plus 450 bps when senior secured leverage is 2.5 times. This tranche also has a 1% Libor floor and 101 repricing protection for six months, and was issued at par.

During syndication, pricing on the B loan was reduced from talk of Libor plus 375 bps to 400 bps, the spread on the C loan finalized at the tight end of the Libor plus 475 bps to 500 bps talk, and the step-downs were added to both loans.

The Credit Suisse Securities (USA) LLC-led debt was used to take out a $150 million term loan B due September 2017 that is priced at Libor plus 600 bps with a 1.25% Libor floor and a $300 million term loan C due March 2019 that is priced at Libor plus 675 bps with a 1.25% Libor floor.

Atlantic Broadband wraps

Atlantic Broadband Group LLC closed on the repricing of its revolver, term loan A and term loan B, and shift of $50 million to the revolver from the A loan, according to a news release.

The revolver and term loan A are priced at Libor plus 237.5 bps, down from prior pricing of Libor plus 300 bps, and the $419 million term loan B is priced at Libor plus 250 bps with a 0.75% Libor floor, down from previous pricing of Libor plus 350 bps with a 1% Libor floor.

The repriced B loan was sold at par and has 101 soft call protection for six months.

During syndication, pricing on the term loan B firmed at the tight end of the Libor plus 250 bps to 275 bps talk.

Bank of America Merrill Lynch led the deal for the Quincy, Mass.-based cable system operator.

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