EP Energy, Triple Point free up; Tempur-Pedic delays meeting; CHG, Fender set new timing

By Sara Rosenberg

New York, Oct. 31 - EP Energy LLC's incremental term loan made its way into the secondary market on Wednesday with levels quoted above its original issue discount price, and Triple Point Technology Inc. broke too.

Over in the primary, Tempur-Pedic International Inc. pushed off the bank meeting for its credit facility, and CHG Healthcare Services and Fender Musical Instruments Corp. firmed timing on their loan launches.

Additionally, Select Medical Corp. revised the consent deadline for its amendment, Grocery Outlet Inc. emerged with new deal plans and FleetPride Inc. (FPC Holdings Inc.) launched its credit facility.

EP Energy breaks

EP Energy's $400 million 61/2-year incremental term loan freed up for trading on Wednesday, with levels quoted at par bid, par ½ offered, according to a market source.

Pricing on the loan, which was upsized last week from $300 million, is Libor plus 350 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 through October 2013.

Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc. and UBS Securities LLC led the deal.

Proceeds were used to repay borrowings under the company's reserve-based revolver and for other general corporate purposes, and the additional funds raised through the upsizing will be used for the same purposes, the source added.

EP Energy is a Houston-based oil and natural gas exploration and production company.

Triple Point starts trading

Triple Point Technology's $175 million first-lien covenant-light term loan due Oct. 28, 2017 hit the secondary as well, with levels quoted at par bid, according to a market source.

Pricing on the loan is Libor plus 500 bps, after firming at the wide end of the Libor plus 475 bps to 500 bps guidance. The loan has a 1.25% Libor floor and 101 repricing protection for one year and was sold at par.

Credit Suisse Securities (USA) LLC is the lead bank on the deal.

Proceeds are being used to reprice and remove covenants from an existing term loan due Oct. 28, 2017 that was done last year at Libor plus 650 bps with a 1.5% Libor floor, and for general corporate purposes.

Triple Point is a Westport, Conn.-based provider of software for end-to-end commodity management.

Tempur-Pedic postpones launch

Moving to the primary, Tempur-Pedic canceled its Wednesday bank meeting due to this week's hurricane drama, and new timing on the $1.77 billion senior secured deal is still to be determined, according to sources.

The credit facility consists of a $350 million five-year revolver, a $650 million five-year term loan A and a $770 million seven-year term loan B.

Based on filings with the Securities and Exchange Commission, pricing on the revolver and term loan A is expected at Libor plus 250 bps and pricing on the term loan B is expected at Libor plus 325 bps with a 1% Libor floor.

The revolver is anticipated to have a 50 bps unused fee that can later step-down to 37.5 bps based on leverage, and the term loan B is expected to include 101 soft call protection for one year.

Bank of America Merrill Lynch, Barclays, J.P. Morgan Securities LLC, Wells Fargo Securities LLC and Fifth Third Securities Inc. are leading the deal.

Tempur-Pedic buying Sealy

Proceeds from Tempur-Pedic's credit facility will be used to help fund the acquisition of Sealy Corp. for $2.20 per share. Including the assumption or repayment of all of Sealy's outstanding convertible and non-convertible debt, the total transaction value is about $1.3 billion.

Other funds for the acquisition will come from $350 million of senior unsecured notes that are backed by a commitment for a senior unsecured bridge loan priced at Libor plus 650 bps, increasing by 50 bps every three months until it hits a cap. The tranche has a 1.25% Libor floor.

Closing is expected in the first half of 2013, subject to customary conditions, including regulatory approvals.

Pro forma leverage will be around 4.0 times.

Tempur-Pedic is a Lexington, Ky.-based manufacturer, marketer and distributor of premium mattresses and pillows. Sealy is a Trinity, N.C.-based bedding manufacturer.

CHG sets call

CHG Healthcare Services scheduled a conference call for 1 p.m. ET on Thursday to launch its $765 million credit facility, according to sources. The deal was initially supposed to launch on Tuesday but was pushed off due to Hurricane Sandy. On Monday, there was talk that the new launch date would be Thursday but the official notice didn't go out until now.

The facility consists of a $100 million five-year revolver (B1/B), a $450 million seven-year first-lien term loan B (B1/B) and a $215 million eight-year second-lien term loan (Caa1/CCC+).

Goldman Sachs & Co., Barclays, Citigroup Global Markets Inc. and Jefferies & Co. are leading the deal that will be used to help fund the buyout of the company by Leonard Green & Partners and Ares Management LLC from J.W. Childs Associates LP.

Closing is expected by the end of the year, subject to customary conditions.

Following the close, existing management will retain a significant equity interest in the company.

CHG is a Salt Lake City-based health care staffing firm.

Fender coming soon

Fender Musical will be holding a conference call on Monday to launch its $245 million six-year term loan B, according to a market source. The loan was supposed to launch with a bank meeting this past Tuesday, but that was delayed because of the hurricane.

Wells Fargo Securities LLC and J.P. Morgan Securities LLC are leading the deal that will be used to refinance an existing term loan.

Fender is a Scottsdale, Ariz., maker of music instruments.

Select Medical moves deadline

In other news, Select Medical pushed out the deadline for consents for its credit facility amendment to 1 p.m. ET on Thursday from Wednesday, according to a market source.

Lenders are being offered a 15 bps amendment fee.

J.P. Morgan Securities LLC is the lead bank on the deal.

Select Medical is a Mechanicsburg, Pa.-based operator of specialty hospitals and outpatient rehabilitation clinics.

Grocery Outlet readies deal

Grocery Outlet set a bank meeting for Monday afternoon to launch a $505 million senior secured credit facility that is being led by Barclays, Credit Suisse Securities (USA) LLC and UBS Securities LLC, according to a market source.

The facility consists of a $30 million five-year revolver, a $360 million six-year first-lien term loan and a $115 million 61/2-year second-lien term loan, the source said, adding that price talk is not yet available.

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

Grocery Outlet is a portfolio company of Berkshire Partners that is based in Berkeley, Calif., and operates as an extreme-value grocery retailer.

FleetPride launches

FleetPride held a call at 1:30 p.m. ET on Wednesday to launch a $775 million credit facility that consists of a $150 million ABL revolver, a $425 million seven-year covenant-light first-lien term loan and a $200 million 71/2-year covenant-light second-lien term loan, according to a market source.

Deutsche Bank Securities Inc., Bank of America Merrill Lynch, RBC Capital Markets, Barclays and UBS Securities LLC are leading the deal.

Proceeds will be used to help fund the buyout of the company by TPG Capital from Investcorp.

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

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

Wilsonart closes

The purchase of a 51% stake in Wilsonart International Holdings LLC by Clayton, Dubilier & Rice LLC from Illinois Tool Works Inc. has been completed, according to a news release.

For the transaction, Wilsonart got a new $900 million credit facility (B2/B+) consisting of a $175 million revolver and a $725 million term loan.

Pricing on the term loan is Libor plus 425 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.

During syndication, the loan was upsized from $425 million as plans for a $300 million bond offering were canceled. At that time, price talk had moved up to Libor plus 425 bps to 450 bps from Libor plus 375 bps to 400 bps, and shortly before allocating, the coupon firmed at the tight end of the revised talk.

Deutsche Bank Securities Inc., Barclays, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc. and UBS Securities LLC led the deal.

Wilsonart is a manufacturer of decorative surfaces products.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.