SuperMedia rises; Wendy's dips on numbers; Seitel reworked; AmWINS, Ascend, NEP set talk

By Sara Rosenberg

New York, May 8 - SuperMedia Inc.'s term loan headed higher in trading during Tuesday's market hours with the release of earnings results, while Wendy's International Inc.'s B loan was softer on news that it revised its full-year adjusted EBITDA guidance.

Moving to the primary, Seitel Inc. revised its deal, carving a term loan A out of what was initially just a term loan B, and sweetening the coupon, original issue discount and call protection on the institutional debt.

Also, AmWINS Group Inc. and Ascend Learning released price talk with launch, NEP II Inc. started floating guidance on its upcoming facility, Roofing Supply Group LLC came out with timing and structure on its buyout deal, and Generac Power Systems Inc. and Formula One announced plans for a new loan.

SuperMedia trades up

SuperMedia's term loan jumped to 57¾ bid, 58¾ offered on Tuesday from 56½ bid, 57½ offered as the company came out with first-quarter results that showed a substantial year-over-year improvement in earnings, according to a trader.

For the first quarter, the Dallas-based directory publisher reported net income of $62 million, or $3.92 per share, compared to net income of $30 million, or $1.91 per share, in the previous year.

However, operating revenue was down 17.1% at $363 million for the quarter, versus $438 million in the first quarter of 2011.

And, adjusted EBITDA for the quarter was $148 million, down 3.9% from $154 million last year.

Furthermore, during the quarter, the company reduced its credit facility debt by $64 million, including $60 million through open market debt repurchases at a cash price of $31 million.

Wendy's retreats

Wendy's saw its term loan B slip an eighth of a point to par ½ bid, par 7/8 offered with its announcement that it lowered the outlook for 2012 adjusted EBITDA to $320 million to $335 million from a previous range of $335 million to $345 million, according to a trader.

The company also came out with first quarter results that showed net income of $12.4 million, or $0.03 per share, compared to a net loss of $1.4 million, or $0.00 per share, in the previous year.

Consolidated revenues for the quarter were $593.2 million, compared to $582.5 million in the first quarter of 2011.

And, adjusted EBITDA for the quarter was $63.9 million, versus $73.7 million last year.

Wendy's is a Dublin, Ohio, quick-service hamburger chain.

Seitel restructures loan

Switching to the primary, Seitel downsized its term loan B while creating a new term loan A tranche, and modified pricing, Libor floor, original issue discount and call protection on B loan, according to a market source.

The six-year term loan B is now sized at $200 million, down from $275 million, and talk is Libor plus 875 basis points with a 1.25% Libor floor, an original issue discount of 97 and call protection of 103 in year one, 102 in year two and 101 in year three, the source said. By comparison, prior talk had been Libor plus 700 bps with a 1.5% floor, a discount of 98 to 99 and call protection of 102 in year one and 101 in year two.

As for the new $75 million five-year term loan A, that is talked at Libor plus 725 bps to 775 bps with a 1.25% Libor floor, an original issue discount of 97 and call protection of 103 in year one, 102 in year two and 101 in year three, the source remarked.

Seitel timeline

Now that the changes have been made, Seitel is asking lender to recommit to the $275 million deal (B3/B) by May 16, and is targeting a closing date of May 24, the source continued.

Wells Fargo Securities LLC and Jefferies & Co. are the lead banks on the loan.

Amortization on the term loan B is 2½% par annum, and on the term loan A is 8% per annum.

Proceeds will be used to repurchase the company's $275 million of senior notes due Feb. 14, 2014.

Seitel is a Houston-based provider of seismic services to the energy industry.

AmWINS pricing

AmWINS Group held a bank meeting on Tuesday morning to present its $720 million credit facility to investors, and price talk on the term loans was announced with the launch, according to a market source.

The $295 million seven-year first-lien term loan is talked at Libor plus 450 bps with a 1.25% Libor floor and an original issue discount of 99, and there is 101 repricing protection for one year, the source said.

Meanwhile, the $350 million71/2-year second-lien term loan is talked at Libor plus 800 bps with a 1.25% Libor floor and an original issue discount of 98, the source continued. This tranche has call protection of 103 in year one, 102 in year two and 101 in year three.

The company's credit facility also provides for a $75 million five-year revolver.

AmWINS lead banks

Credit Suisse Securities (USA) LLC, Goldman Sachs & Co., Macquarie Capital and Wells Fargo Securities LLC are the lead banks on AmWINS' credit facility and are seeking commitments by May 22, the source added.

Proceeds will be used to help fund the acquisition of a majority stake in the company by New Mountain Capital from Parthenon Capital Partners in a recapitalization that is valued at around $1.3 billion.

At close, employee shareholders will continue to own more than 30%, valued at over $160 million, of AmWINS equity.

Completion of the buyout is subject to regulatory approvals and customary conditions.

AmWINS is a Charlotte, N.C.-based specialty insurance broker.

Ascend discloses talk

Ascend Learning also launched on Tuesday morning, at which time lenders were told that its $330 million term loan is being talked at Libor plus 450 bps with a 1.25% Libor floor, an original issue discount of 99½ and 101 soft call protection for one year, a market source said.

Bank of America Merrill Lynch and GE Capital Markets are the lead banks on the deal that will be used to repay existing first-lien debt that is priced at Libor plus 550 bps with a 1.5% Libor floor.

Commitments are due on May 15 and closing is expected to occur on May 17, the source continued.

Ascend Learning is a Stilwell, Kan.-based provider of technology-based learning services focused on student training and testing results in health care and other vocational fields.

NEP reveals guidance

Also on the topic of pricing, NEP started circulating talk on its $680 million credit facility in preparation for its upcoming Wednesday afternoon bank meeting, according to a market source.

The $60 million five-year revolver and $460 million seven-year first-lien term loan are talked at Libor plus 500 bps with a 1.25% floor and a discount of 99, and the $160 million 71/2-year second-lien term loan is talked at Libor plus 900 bps with a 1.25% floor and a discount of 98, the source said.

Included in the first-lien term loan is 101 soft call protection for one year, and call protection on the second-lien term loan is 103 in year one, 102 in year two and 101 in year three.

Credit Suisse Securities (USA) LLC and Bank of America Merrill Lynch are leading the deal that will be used to refinance existing debt and pay a dividend and will result in 4.1 times first-lien leverage and 5.5 times total leverage, the source added.

NEP is a Pittsburgh-based provider of mobile broadcast solutions.

Roofing Supply details

In more primary happenings, Roofing Supply released structure on its proposed credit facility as a bank meeting has been set for Thursday to launch the transaction, according to a market source.

The $465 million facility consists of a $175 million five-year ABL revolver and an up to $290 million seven-year term loan B, the source said, adding that price talk is not yet available.

Deutsche Bank Securities Inc., Goldman Sachs & Co., Credit Suisse Securities (USA) LLC, UBS Investment Bank and Citigroup Global Markets Inc. are leading the deal that will be used, along with $200 million of eight-year senior notes, to fund the buyout of the company by Clayton, Dubilier & Rice LLC from the Sterling Group.

Roofing Supply Group, a Dallas-based wholesale distributor of roofing supplies and related materials, expects to close on the transaction this quarter.

Generac readies term B

Another issuer to join the calendar was Generac Power Systems as it scheduled a conference call for 10 a.m. ET on Thursday to launch an $800 million term loan B that is being led by J.P. Morgan Securities LLC, according to a market source.

Proceeds from the B loan, along with $400 million of senior unsecured debt, will refinance a roughly $574 million term loan and pay a special cash dividend of up to $10 per share to its stockholders.

Furthermore, the company expects to refinance an existing $150 million undrawn revolver with a similarly sized asset-backed revolver.

In a conference call on Tuesday, company officials said that they expect the overall cost of debt to be around 7%, and that leverage will be increasing to around 5 times as a result of the additional borrowings. The current net debt leverage ratio is roughly 2 times.

Generac is a Waukesha, Wis.-based designer and manufacturer of generators and other engine powered products.

Formula One coming soon

Formula One set a bank meeting for Thursday in New York and Friday in London to launch a $1.8 billion credit facility that consists of a $50 million five-year revolver, a $450 million five-year term loan A and a $1.3 billion six-year term loan B, according to a market source.

Goldman Sachs & Co., RBS Securities Inc., Morgan Stanley Senior Funding Inc. and UBS Securities LLC are the lead banks on the deal that will be used to refinance existing debt and is contingent on completion of an initial public offering of stock.

Debt being refinanced includes the credit facility done in April that consists of a $1.383 billion term loan B priced at Libor plus 450 bps with a 1.25% Libor floor and sold at a discount of 99, an $817.5 million term loan C priced at Libor plus 500 bps with a 1.25% Libor floor, and a $70 million revolver.

Formula One is the organizer of the Formula One World Championship (F1) and owner of the commercial rights to F1 motorsports racing.

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