Mood Media, Diamond Resorts, US LBM, Stratus Technologies break; Prestige Brands bid lower

By Sara Rosenberg

New York, April 25 - Mood Media Corp., Diamond Resorts Corp., US LBM and Stratus Technologies Inc. made their way into the secondary market on Friday, and Prestige Brands Holdings Inc.'s term loan B was bid lower with news that an add-on loan will be used to help fund some acquisitions.

Switching to the primary, Select Staffing (Koosharem LLC) lifted the size of its term loan while tightening spread and original issue discount, Lineage Logistics LLC widened the offer price on its tack-on term loan, and Booz Allen Hamilton Holding Corp. pulled its term B from market.

Additionally, TASC Inc. came out with offer prices on its first- and second-lien term loans with its lender call, US Ecology Inc. set timing on its credit facility, and Albaugh Inc., Ability Network Inc., KCA Deutag and SunEdison Semiconductor Ltd. emerged with new deal plans.

Mood Media frees up

Mood Media's credit facility began trading on Friday, with the $235 million five-year first-lien term loan quoted at par bid, par ½ offered, according to a trader.

Pricing on the term loan is Libor plus 600 basis points with a 1% Libor floor and it was sold at an original issue discount of 99. There is 101 soft call protection for one year.

Recently, pricing on the term loan was lowered from Libor plus 625 bps.

The company's $250 million credit facility (Ba3/B+) also includes a $15 million revolver.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to refinance an existing revolver and term loan.

Mood Media is a provider of in-store audio, visual and mobile services.

Diamond hits secondary

Diamond Resorts' credit facility also freed up, with the $445 million seven-year first-lien covenant-light term loan seen at par bid, par ½ offered, a trader remarked.

Pricing on the term loan is Libor plus 450 bps with a 1% Libor floor and it was sold at an original issue discount of 991/2. The debt has 101 soft call protection for one year.

The company's $470 million credit facility (B2/B) also provides for a $25 million revolver.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to refinance the $374.4 million outstanding under the company's 12% senior secured notes due 2018, any outstanding revolver borrowings and other debt and for corporate purposes.

Diamond Resorts is a Las Vegas-based hospitality and vacation ownership company.

US LBM tops OID

US LBM's $150 million six-year first-lien term loan broke too, with levels quoted at 98½ bid, 99 offered, according to a trader.

Pricing on the loan is Libor plus 625 bps with a 1% Libor floor and it was sold at an original issue discount of 98. There is hard call protection of 102 in year one and 101 in year two.

During syndication, the spread on the loan was increased from Libor plus 500 bps, the discount was revised from 99 and the call protection was sweetened from a 101 soft call for six months.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to repay ABL borrowings and fund the acquisition of Desert Lumber.

US LBM is a Green Bay, Wis.-based owner of building material distribution businesses.

Stratus starts trading

Stratus Technologies' credit facility emerged in the secondary as well, with the $225 million seven-year term loan B quoted at 99¼ bid, 99¾ offered on the open and then the bid moved up to 99 3/8, a market source said.

Pricing on the term loan is Libor plus 500 bps with a 1% Libor floor and it was sold at a discount of 99. There is 101 soft call protection for one year.

During syndication, pricing firmed at the wide end of the Libor plus 475 bps to 500 bps talk, the discount was revised from 991/2, the call protection was extended from six months and a covenant was added.

The company's $245 million credit facility (B2/B+) also includes a $20 million revolver.

SunTrust Robinson Humphrey Inc. and Macquarie Capital (USA) Inc. are leading the deal that will be used with equity to fund the $352 million buyout of the company by Siris Capital Group LLC and refinance existing debt.

Closing is subject to customary conditions, including the receipt of shareholder and regulatory approvals.

Stratus Technologies, a Maynard, Mass.-based provider of infrastructure-based services that keep applications running continuously, will have gross leverage of 4.2 times and net leverage of 3.8 times.

Prestige levels widen

Also in trading, Prestige Brands' term loan B moved to 99¼ bid, par ¼ offered from 99¾ bid, par ¼ offered as the company revealed that it will get an add-on term loan, borrow under its revolver and use cash on hand to fund the acquisitions of Insight Pharmaceuticals Corp. and Hydralyte.

The trader explained that the debt was likely bid lower because new debt is being layered in, but without the amount of that debt and the original issue discount available, it's hard to determine just how much the existing debt will be affected.

Citigroup Global Markets Inc. is the left lead on the new add-on term loan.

Insight Pharmaceuticals is being acquired from Swander Pace Capital and Ontario Teachers' Pension Plan for $750 million in cash, and Hydralyte is being bought from The Hydration Pharmaceuticals Trust of Victoria, Australia, for an undisclosed amount.

Prestige expected leverage

Company officials at Prestige Brands said in a conference call that, with the acquisitions, they expect pro forma net debt to pro forma adjusted EBITDA to be around 5.8 times and interest coverage to be about 3.5 times, and that net debt at closing is estimated at around $1.75 billion.

Closing on the Insight purchase is expected in the first half of this fiscal year, subject to customary conditions, including clearance under the Hart-Scott Rodino Antitrust Improvements Act, and the Hydralyte transaction is expected to close in the first quarter of fiscal 2015, which began on April 1, subject to customary conditions.

Prestige Brands is a Tarrytown, N.Y.-based marketer and distributor of over-the-counter and household cleaning products. Insight Pharmaceuticals is a Trevose, Pa.-based marketer and distributor of feminine care and other over-the-counter healthcare products. And, Hydralyte is an over-the-counter brand in oral rehydration in Australia and New Zealand.

Technimark above par

Technimark's $219 million seven-year term loan B was seen trading at par ¼ bid, par ¾ offered on Friday, after allocating on Thursday, according to a market source.

The term loan, as well as a $30 million revolver, are priced at Libor plus 350 bps with a 1% Libor floor and were sold at an original issue discount of 991/2. Included in the term loan is 101 soft call protection for six months.

GE Capital Markets is leading the $249 million credit facility that will be used to help finance the buyout of the company by the Pritzker Group.

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

Select Staffing reworked

Over in the primary, Select Staffing increased its six-year senior secured term loan (B3) to $370 million from $350 million, cut pricing to Libor plus 650 bps from Libor plus 700 bps and moved the original issue discount to 99¼ from 99, according to a market source, who said the 1% Libor floor was unchanged.

In addition, the soft call protection was changed to 102 in year one and 101 for six months thereafter, from 102 in year one and 101 in year two, the source continued.

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

The company's now $490 million credit facility also includes a $120 million ABL revolver.

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

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

Lineage tweaks OID

Lineage Logistics modified the original issue discount on its fungible $60 million covenant-light tack-on first-lien term loan (B3/B) to 98½ from 99, according to a market source.

As before, the tack-on loan is priced at Libor plus 350 bps with a 1% Libor floor, and has 101 soft call protection through October.

Recommitments were due at 1 p.m. ET on Friday, the source said.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to fund tuck-in acquisitions.

Lineage Logistics is a Colton, Calif.-based cold storage warehousing and logistics company.

Booz shelves term B

Booz Allen Hamilton withdrew its $1,012,000,000 term loan B (Ba3) due in 2021 from market that was talked at Libor plus 300 bps with a 0.75% Libor floor, an original issue discount of 99¾ and 101 soft call protection for six months, a source said.

Proceeds were going to be used to refinance an existing term loan B due in 2019 that is priced at Libor plus 300 bps with a 0.75% Libor floor.

Bank of America Merrill Lynch and Credit Suisse Securities (USA) LLC were leading the deal.

The source went on to say that even though the term loan B was pulled, the company is still going ahead with the proposed extension of its revolver and term loan A by 17 months to May 2019.

Booz Allen Hamilton is a McLean, Va.-based provider of management and technology consulting services to the U.S. government in the defense, intelligence and civil markets.

TASC floats offer prices

In more primary happenings, TASC held its call on Friday to talk to lenders about its recently announced change to market a new $682 million senior secured credit facility instead of an amendment and extension of the existing deal, and with the event offer prices on its first- and second-lien term loans were announced, according to a market source.

The $432 million six-year covenant-light first-lien term loan is being offered at an original issue discount of 99 and the $200 million seven-year covenant-light second-lien term loan is being offered at par, the source said.

Prior to the call, talk on the first-lien term loan emerged at Libor plus 550 bps with a 1% Libor floor and 101 soft call protection for one year, and talk on the second-lien term loan came out at a fixed rate of 12% with hard call protection of 102 in year one and 101 in year two.

The company's $682 million senior secured credit facility also includes a $50 million five-year revolver talked at Libor plus 550 bps.

TASC lead banks

Barclays and KKR Capital are leading TASC's credit facility that will be used to refinance an existing credit facility, and are asking for commitments by May 2.

Net senior secured leverage is 3.7 times, and net total leverage is 5.6 times.

At first, the company launched an amendment and extension of its existing non-covenant-light credit facility, but that was shifted recently to plans for a new credit facility.

The amendment and restatement would have extended the $632 million term B by two years to Dec. 18, 2017 and raise pricing to Libor plus 525 bps with a 1.25% Libor floor from Libor plus 325 bps with a 1.25% Libor floor, and extended the revolver by two years to Sept. 18, 2017 and reduce the size to $50 million from $80 million.

TASC is a Chantilly, Va.-based provider of advanced systems engineering and technical assistance to the defense, intelligence, federal and homeland security markets.

US Ecology timing emerges

US Ecology set a bank meeting for 9:30 a.m. ET on Wednesday to launch its previously announced $540 million credit facility (Ba3), according to a market source.

The facility consists of a $125 million five-year revolver and $415 million seven-year term loan, and when first announcing the deal, company officials said that they expect term loan pricing to be somewhere around the 5% to 6% area.

Wells Fargo Securities LLC and Credit Suisse Securities (USA) LLC are leading the facility that will help fund the $465 million acquisition of EQ - The Environmental Quality Co. from Kinderhook Industries LLC.

Closing is expected in the second or third quarter, subject to customary conditions.

Leverage will be around 3.3 times 2013 pro forma combined company EBITDA.

US Ecology is a Boise, Idaho-based provider of radioactive, hazardous, PCB and non-hazardous industrial waste management and recycling services. EQ is a Wayne, Mich.-based fully integrated environmental services and waste management company.

Albaugh coming soon

Albaugh surfaced with plans to hold a bank meeting on Tuesday afternoon to launch a $300 million covenant-light term loan B, according to a market source.

The company will also be getting a new revolver, the source said. Details on this tranche are not yet available.

HSBC Securities (USA) Inc. is leading the deal that will be used to refinance existing debt and for general corporate purposes.

Albaugh is an Ankeny, Iowa-based producer of generic crop protection products.

Ability readies deal

Ability scheduled a bank meeting for 11:30 a.m. ET in New York on Tuesday to launch a $300 million credit facility, according to sources.

The facility consists of a $20 million revolver, a $200 million seven-year covenant-light first-lien term loan and an $80 million eight-year covenant-light second-lien term loan, sources said.

Deutsche Bank Securities Inc. and Macquarie Capital are leading the deal that will be used to help fund the buyout of the company by Summit Partners.

Closing is subject to standard regulatory approvals.

Ability is a Minneapolis-based healthcare information technology company providing s national web-based network, enabling connectivity between providers and Medicare.

KCA Deutag on deck

KCA Deutag will hold a bank meeting on Monday to launch a new term loan, according to sources.

The company is expected to get a total of $750 million between the new term loan and a new notes issuance, with the breakdown on the financing sizes not yet available, sources said.

Goldman Sachs Bank USA, J.P. Morgan Securities LLC, HSBC Securities (USA) Inc. and Lloyds Securities LLC are leading the deal that will be used to refinance existing bank debt and add cash to the balance sheet.

KCA Deutag is a Scotland-based drilling contractor, managing platform drilling rigs and owning and operating a fleet of jack-up, self-erect tender and land rigs.

SunEdison joins calendar

SunEdison Semiconductor scheduled a bank meeting for Monday to launch a new $200 million term loan B, according to sources.

The company said in recent filings with the Securities and Exchange Commission that it also plans on getting an up to $50 million revolver.

Goldman Sachs Bank USA is leading the deal that will be used to repay intercompany notes in connection with the company's spin-off from SunEdison Inc. and initial public offering of ordinary shares.

SunEdison Semiconductor is a Toa Payoh, Singapore-based developer, manufacturer and seller of silicon wafers to the semiconductor industry.

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