Del Monte $1.73 billion loan leads parade of deals; bank loan CDS end ¼ of a point lower

By Paul A. Harris

Portland, Ore., Feb. 21 - Traders marked cash loans unchanged on a quiet Friday in the secondary market.

Despite moderating cash inflows to dedicated loan funds, the market still looks strong and feels strong, a trader said.

Meanwhile, synthetics ended the session lower, with the LCDX 20 index of bank loan credit default swaps finishing the session at 104 bid, 104½ offered, down ¼ of a point.

The primary market session was anything but quiet, as Del Monte Corp. led a parade of deals that were fixed with final terms on Friday.

Del Monte priced its $1,726,000,000 term loan B due February 2020 (/B+/) at 99.75, according to a trader who saw no secondary market action in the name, an hour after Friday's close.

Friday may have seemed busy, the trader said, but the week ahead figures to be busier.

Del Monte's $1.73 billion

Del Monte priced its $1,726,000,000 term loan with a 275 basis points spread to Libor, a market source said on Friday.

The reoffer price came on top of price talk. The spread came at the wide end of the 250 to 275 bps spread talk.

The deal features a 0.75% Libor floor and has 101 soft call protection for six months.

J.P. Morgan Securities LLC and KKR Capital Markets are leading the deal.

Proceeds will be used to refinance an existing term loan B that is priced at Libor plus 300 bps with a 1% Libor floor.

The existing term loan B is sized at $2,607,400,000, but about $881 million of that amount is expected to be repaid in connection with the sale of the company's consumer products business.

Del Monte is a San Francisco-based producer, distributor and marketer of pet products and food products.

Stena allocates, trades higher

Stena International SA priced a $650 million Libor plus 300 basis points seven-year covenant-light senior secured term loan B (Ba2/BB+) at 99 on Friday, according to a market source.

The deal broke to 99½ bid, par offered, according to a trader.

The spread came on top of spread talk, which firmed at the wide end of the earlier 275 bps to 300 bps talk.

The discount came on top of discount talk that had been deepened by ½ of a point to 99 from earlier price talk of 99.5.

The Libor floor increased to 1% from 0.75%.

The 101 soft call protection increased to one year from six months.

Citigroup Global Markets Inc. and J.P. Morgan Securities LLC are the joint lead arrangers on the deal.

Security is a first-priority lien on Drillmax and Carron Rigs, evidenced by a ship mortgage.

Proceeds will be used to refinance existing debt.

Stena is a Gothenburg, Sweden-based company that has operations in shipping and offshore oil and gas exploration.

Roundy's prices, breaks

Roundy's Supermarkets Inc. brought its $460 million Libor plus 475 basis points seven-year first-lien covenant-light tem loan (B1/B) at 98, a market source said on Friday.

The deal allocated and broke to 99½ bid, par offered.

The spread came on top of revised spread talk, which was boosted from earlier talk of 400 to 425 bps. Likewise, the reoffer price came on top of revised price talk, which deepened the discount by a point, from earlier talk of 99. Also the 101 soft call protection was extended to one year from six months.

The term loan still has a 1% Libor floor.

Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Bank of America Merrill Lynch and BMO Capital Markets are the lead banks on the deal.

Proceeds will be used to refinance an existing loan that is priced at Libor plus 450 bps with a 1.25% Libor floor.

Roundy's is a Milwaukee-based supermarket chain.

Aptean prices two-parter

Aptean Holdings Inc. set the final terms on a $387 million two-part term loan package, a market source said on Friday.

A $280 million Libor plus 425 basis points six-year first-lien term loan B (B+) priced at 99. The spread came 25 bps beyond the wide end of the 375 to 400 bps spread talk. The reoffer price came at the cheap end of the 99 to 99½ discount talk.

In addition, Aptean priced a $107 million Libor plus 750 bps seven-year second-lien term loan (CCC+) at 98.5. The spread came 25 basis points beyond the wide end of the 700 to 725 bps spread talk. The reoffer price came at the cheap end of the 98½ to 99 discount talk.

Included in the first-lien term loan is 101 soft call protection for six months, and the second-lien loan has hard call protection of 102 in year one and 101 in year two.

The credit facility also provides for a $25 million five-year revolver (B+).

Morgan Stanley Senior Funding Inc., BMO Capital Markets Corp. and SunTrust Robinson Humphrey Inc. are the joint lead arrangers and bookrunners on the deal.

Proceeds will be used to refinance existing term loans and the BMO Capital call facility and to fund a dividend.

Aptean is an Atlanta-based provider of enterprise application software.

Acosta sets add-on terms

Acosta Sales & Marketing priced a fungible $340 million add-on to its Libor plus 325 basis points term loan due March 2018 at 99.75, a market source said on Friday.

The deal traded to par 3/8 bid, par 7/8 offered.

The contemplated discount was pared by 25 basis points from the 99.50 price talk.

The loan is has a 1% Libor floor.

The add-on is covenant-light, and the company is looking to amend its existing term loan to remove the financial covenants, sources said.

Lenders are offered a 12.5 bps amendment fee.

Goldman Sachs Bank USA, Barclays and Bank of America Merrill Lynch are the lead banks on the deal.

Proceeds will be used to help fund the acquisition of Anderson Daymon Worldwide, an Issaquah, Wash.-based sales and marketing agency that exclusively serves Costco Wholesale.

Closing is expected this month.

Acosta is a Jacksonville, Fla.-based full-service sales and marketing agency in the consumer packaged goods industry.

Arctic's covenant-light deal

Arctic Glacier LLC priced its $279 million Libor plus 400 basis points first-lien covenant-light term loan due May 2019 (B3/B) at par, a market source said on Friday.

The spread and reoffer price came on top of talk.

The deal features a 1% Libor floor and has 101 soft call protection for six months.

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

Proceeds will be used to reprice an existing term loan from Libor plus 475 bps with a 1.25% Libor floor.

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

Select Medical holds call

Select Medical Corp. held a lender meeting of Friday for an $814 million two-part term loan repricing, according to a market source.

JP Morgan Securities LLC is the lead.

The Mechanicsburg, Pa.-based operator of specialty hospitals and outpatient rehabilitation clinics is seeking to reprice $297 million of a Libor plus 325 basis points term loan B down to a 275 bps spread.

In addition Select Medical is seeking to reprice $517 million of a Libor plus 300 bps term loan C also down to a 275 bps spread. The repricing of the term loan C also includes the addition of a 1% Libor floor.

Both tranches have 101 six month soft calls.

Revlon firms pricing

Revlon Consumer Products Corp. firmed pricing on its $675 million senior secured term loan B due Nov. 19, 2017 at Libor plus 250 basis points, the tight end of the 250 to 275 bps spread talk.

The deal, which comes with a 0.75% Libor floor, is being offered at par.

The loan has 101 soft call protection for six months and a first-lien secured leverage ratio of 4.25 times, the source said.

Allocations are expected on Monday. Closing is targeted for Feb. 25.

Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Bank of America Merrill Lynch and Wells Fargo Securities LLC are the lead arrangers on the deal.

Proceeds will be used to refinance an existing term loan B due 2017 that is priced at Libor plus 300 bps with a 1% Libor floor.

Revlon is a New York-based cosmetics and accessories company.

PVH talks add-ons

Apparel company PVH set pricing for an add-on term loan A and an incremental term loan B on Friday, according to a market source.

A $400 million non-fungible add-on to the incremental term loan B has a 250 basis points Libor spread at 99.75, and a 0.75% Libor floor, the same as the existing loan. There is a six-month soft call at 101.

A $200mm fungible add-on to the term loan A and $750 million of multi-currency revolvers, all due on due Feb. 13, 2018 are talked at Libor plus 175 bps, subject to a pricing grid, with 25 bps upfront, are all callable at par.

The revolvers and term loan A are being extended by one year, to Feb. 13, 2019, in exchange for a 10 bps extension fee.

Commitments and amendment consents are due by March 7.

Barclays is the lead left bookrunner. BofA Merrill Lynch, Citigroup Global Markets and RBC Capital Markets are joint bookrunners.

The existing facilities include a $1,636,000,000 term loan A and a $939 million term loan B.

The U.S. borrower is PVH Corp. The European borrower is PVH BV.

The existing ratings for the loans are Ba2 from Moody's Investors Service and BB+ from Standard & Poor's.

The existing covenants include a minimum consolidated interest coverage covenant and a maximum consolidated total net leverage covenant.

Kronos sets pricing

Kronos Inc. set pricing on a $490 million two-part add on to its credit facility on Friday, according to a market source.

Commitments are due on Friday.

Credit Suisse is leading the deal.

A $315 million add-on to the Libor plus 350 basis points first-lien covenant-light loan due Oct. 2019 is talked at 99.5. The tranche has a 1% Libor floor and a 101 six-month soft call.

A $175 million add-on to the Libor plus 850 bps second-lien covenant-light loan due April 2020 is also talked at 99.5. The second-lien tranche has a 1.25% Libor floor and is callable at 103 until October 2015, then at 102 and 101.

Proceeds will be used to fund a shareholder distribution in connection the acquisition of a minority stake in the company by Blackstone Group LP and the Government Investment Corp. of Singapore.

Kronos is a Chelmsford, Mass.-based provider of workforce management software.

SMG upsizes, sets talk

SMG (Stadium Management Group) upsized its credit facility to $350 million from $325 million on Friday, according to a market source.

Price talk was also tightened on the six-year term loan B, which is upsized to $325 million from $300 million, and now talked with a 350 basis points spread to Libor, down from 400 bps.

The reoffer price remains unchanged at 99.5.

The Libor floor is also unchanged at 1%.

The tranche has 101 soft call protection for six months.

Recommitments are due on Monday.

Credit Suisse Securities (USA) LLC and Morgan Stanley Senior Funding Inc. are the lead banks on the deal.

The facility also features a $25 million five-year revolver.

Covenants include a maximum total leverage ratio.

Proceeds will be used to refinance existing loans and fund a dividend, the source added.

SMG is a West Conshohocken, Pa.-based venue management company.

Freescale sets Monday call

Freescale Semiconductor, Inc. will participate in a lender call at 11 a.m. ET on Monday to discuss a proposed repricing deal.

The new tranche will be a $2.72 billion senior secured term loan B-4 (expected ratings B1/B).

Commitments from existing lenders are due on Thursday. Commitments from new lenders are due on Friday.

Talk is Libor plus 325 basis points at par with a 1% Libor floor, a 101 soft call six months from closing, and 1% annual amortization.

Citigroup, Barclays, Credit Suisse, Deutsche Bank, Goldman Sachs, Morgan Stanley are the joint bookrunners.

The deal will come with the same covenant package as that of the existing credit agreement.

The Austin, Texas-based semiconductor company plans to use the proceeds to refinance its existing term loan B-3.

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