DJO Finance, HUB, Caelus Energy, Multi Packaging break; Visteon, Kate Spade changes surface

By Sara Rosenberg

New York, April 4 - DJO Finance LLC firmed pricing on its term loan at the high end of talk, tightened the add-on offer price, extended the call protection and then broke for trading on Friday, and HUB International Ltd., Caelus Energy Alaska 03 LLC and Multi Packaging Solutions Inc./Chesapeake Services Ltd. freed up too.

In more happenings, Visteon Corp. finalized pricing on its term loan B at the low side of talk and modified the original issue discount, and Kate Spade & Co. trimmed pricing on its term loan B and set the offer price at the tight end of guidance.

Also, 4L Technologies Inc. came out with talk on its loan with launch, and Select Staffing (Koosharem LLC), Time Inc., Technimark and Dutch LLC emerged with new deal plans.

DJO updates deal, trades

DJO set pricing on its $891 million first-lien term loan (B+) due September 2017 at Libor plus 325 basis points, the wide end of the Libor plus 300 bps to 325 bps talk, and extended the 101 soft call protection to one year from six months, according to a market source.

Of the total term loan amount, $40 million is a fungible add-on, which was issued at par after tightening from 99¾ on Friday morning, and $851 million is for a repricing of the existing first-lien term loan that was issued at par, in line with talk.

As before, the term loan has a 1% Libor floor.

Recommitments were due at noon ET on Friday, and then, shortly thereafter, the debt freed up for trading, with levels quoted at par 1/8 bid, par 5/8 offered, a trader remarked.

DJO refinancing/repricing

Proceeds from DJO's add-on term loan will be used to repay revolving credit facility borrowings, and the repricing portion of the transaction will take the existing term loan down from Libor plus 375 bps with a 1% Libor floor.

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

DJO is a Vista, Calif.-based provider of medical device products for musculoskeletal health, vascular health and pain management.

HUB frees up

HUB International's $1.95 senior secured term loan due Oct. 2, 2020 also began trading, with levels seen at par bid, par ¼ offered, a trader said.

Pricing on the Chicago-based insurance brokerage's loan is Libor plus 325 bps with a 1% Libor floor and it was issued at par. There is 101 soft call protection for one year.

During syndication, the spread firmed at the wide end of the Libor plus 300 bps to 325 bps talk and the call protection as extended from six months.

Morgan Stanley Senior Funding Inc., Bank of America Merrill Lynch and RBC Capital Markets are the joint lead arrangers and joint bookrunners with BMO Capital Markets, Macquarie Capital and UBS Securities LLC.

Of the total term loan amount, $90 million is an add-on that will be used to refinance revolver borrowings and the remainder is to reprice the existing term loan from Libor plus 375 bps with a 1% Libor floor.

Closing is expected during the week of April 7.

Caelus hit secondary

Caelus Energy's $300 million six-year second-lien covenant-light term loan broke too, with levels quoted at 98½ bid, 99 offered, according to a market source.

Pricing on the loan is Libor plus 750 bps with a 1.25% Libor floor and it was sold at an original issue discount of 98. The debt is non-callable for one year, then at 102 in year two and 101 in year three.

Recently, pricing was raised from Libor plus 725 bps and the tenor was reduced from seven years.

Credit Suisse Securities (USA) LLC, RBC Capital Markets, BMO Capital Markets, Societe Generale and HSBC Securities (USA) Inc. are leading the deal that will be used to help fund the acquisition of Pioneer Natural Resources Alaska Inc. by Dallas-based Caelus Energy LLC from Pioneer Natural Resources Co., to prefund capital expenditures and for general corporate purposes.

The oil and gas company on the northern slope of Alaska is also getting a $115 million ABL facility that was fully subscribed and not marketed with the term loan.

Multi Packaging breaks

Multi Packaging/Chesapeake Services' $50 million incremental term loan due Sept. 30, 2020 began trading as well, with levels quoted at par ½ bid, 101¼ offered, according to a trader.

Pricing on the incremental loan is Libor plus 325 bps with a 1% Libor floor and there is 101 soft call protection through Aug. 14, 2014, in line with the existing term loan. The new debt was issued at par, after tightening the other day from 993/4.

Barclays is leading the deal that will be used to fund contemplated acquisitions.

Multi Packaging/Chesapeake is a provider of value-added packaging services.

Visteon updates pricing

Back over in the primary, Visteon set the spread on its $600 million seven-year term loan B at Libor plus 275 bps, the low end of the Libor plus 275 bps to 300 bps talk, changed the original issue discount to 99¾ from 99½ and removed the 18-month MFN sunset provision, according to a market source.

The term loan still has a 0.75% Libor floor, 101 soft call protection for six months and a ticking fee of half the spread from days 46 through 90 and the full spread thereafter.

In addition to the term loan B, the company's $800 million senior secured credit facility (B1/BB-) includes a $200 million five-year revolver priced at Libor plus 275 bps with no Libor floor and a 50 bps undrawn fee.

Recommitments were due at 5 p.m. ET on Friday and allocations are targeted for Tuesday, the source said.

Citigroup Global Markets Inc., Bank of America Merrill Lynch, UBS Securities LLC, Barclays and Morgan Stanley Senior Funding Inc. are leading the deal that will be used by the Van Buren Township, Mich., automotive supplier to refinance some bonds and to fund an acquisition.

Kate Spade flexes

Kate Spade trimmed pricing on its $400 million covenant-light term loan B (B2/B) to Libor plus 300 bps from talk of Libor plus 375 bps to 400 bps, and finalized the original issue discount at 991/2, the tight end of the 99 to 99½ talk, sources said.

As before, the term loan has a 1% Libor floor and 101 soft call protection for six months.

Recommitments were due at 5p.m. ET on Friday, sources added.

Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Wells Fargo Securities LLC and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to refinance some bonds and pay down ABL credit facility debt.

Kate Spade is a New York-based designer and marketer of accessories and apparel.

4L discloses talk

Also on the new deal front, 4L Technologies held its bank meeting on Friday, launching its $650 million six-year covenant-light term loan B with talk of Libor plus 425 bps with a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months, according to a market source.

The company's $715 million credit facility (B2/B+) also includes a $65 million five-year revolver.

Commitments are due on April 16, the source remarked.

Bank of America Merrill Lynch and GE Capital Markets are leading the deal that will be used to refinance existing debt and fund a dividend.

4L Technologies is a Hoffman Estates, Ill.-based printer cartridge and mobile phone remanufacturer.

Select Staffing readies deal

Select Staffing scheduled a bank meeting for 2 p.m. ET in New York on Tuesday to launch a $470 million credit facility, according to a market source.

The facility consists of a $120 million ABL revolver and a $350 million six-year senior secured term loan, the source said.

Commitments are due on April 23.

Credit Suisse Securities (USA) LLC and RBC Capital Markets are leading the deal that will be used with $225 million in equity to refinance existing debt and for general corporate purposes in connection with the company's exit from Chapter 11.

Select Staffing is a Santa Barbara, Calif.-based temporary staffing services provider.

Time coming soon

Time emerged with plans to hold a bank meeting at 10 a.m. ET in New York on Tuesday to launch a $900 million term loan B, according to a market source.

Citigroup Global Markets Inc. is leading the deal for the New York-based media company.

Technimark on deck

Technimark set a bank meeting in New York for Monday to launch a $249 million credit facility, according to a market source.

The facility consists of a $30 million revolver and a $219 million term loan B, the source said.

GE Capital Markets is the lead on the deal that will be used to help fund the buyout of the company by the Pritzker Group.

Technimark is an Asheboro, N.C.-based injection molding company.

Dutch joins calendar

Dutch LLC scheduled a bank meeting for Tuesday to launch a $200 million six-year term loan B, according to a market source.

Bank of America Merrill Lynch and RBC Capital Markets are leading the deal that will be used by the apparel company to refinance existing debt.

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