DJO, Semtech break; NDS rises; Container, AMN, Alliance Laundry, Alere, Catapult set talk

By Sara Rosenberg

New York, March 15 - DJO Finance LLC's incremental loan made its way into the secondary market on Thursday, with levels were seen above the debt's original issue discount price, and Semtech Corp. freed up as well.

In more trading happenings, NDS Group Ltd.'s term loan headed higher as the company announced that it is being acquired by Cisco.

Over in the primary, Container Store Inc., AMN Healthcare Services Inc., Alliance Laundry Systems LLC, Alere Inc. and Catapult Learning released price talk, and Momentive Performance Materials Inc. set original issue discount guidance, as all of these deal launched to investors during market hours.

DJO Finance frees up

DJO Finance's $350 million incremental term loan (Ba2/BB-) due September 2017 began trading on Thursday, with levels quoted at 99 bid, 99½ offered on the open and then it moved up to 99¼ bid, par offered, according to a trader.

In addition, the company's roughly $389.6 million extended term loan due November 2016 started being quoted at 98¾ bid, 99½ offered, while the roughly $103.5 million non-extended term loan due May 2014 was quoted at 98¾ bid, 99¾ offered, the trader said.

On Wednesday, when the old term was just one tranche due in 2014, it was quoted by one trader at 99 bid, par offered, and by a second trader at 99½ bid.

With the incremental loan and amendment and extension, the company is also getting a new $100 million five-year revolver (Ba2/BB-) to replace its existing revolver.

DJO term loan spreads

DJO Finance's incremental term loan, which was upsized from $300 million a few days ago, is priced at Libor plus 500 bps with a 1.25% Libor floor and was sold at an original issue discount of 981/2.

As for the extended term loan, that is priced at Libor plus 500 bps, and non-extended term loan pricing is Libor plus 300 bps.

Proceeds from the incremental loan are being used to repay some outstanding term loan debt. Prior to this extension and paydown transaction, the company had about $843 million of term loan debt due in 2014.

Credit Suisse Securities (USA) LLC, Goldman Sachs & Co., Macquarie Capital, RBC Capital Markets LLC, UBS Securities LLC and Wells Fargo Securities LLC are the lead banks on the deal.

DJO Finance is a Vista, Calif.-based developer, manufacturer and distributor of medical devices for musculoskeletal health, vascular health and pain management.

Semtech hits secondary

Another deal to begin trading was Semtech, with its $250 million term loan B seen at 99½ bid, par offered on the break and then it moved up to 99¾ bid, par ¼ offered, according to a trader.

Pricing on the term loan B is Libor plus 325 bps with a 1% Libor floor, and it was sold at an original issue discount of 99.

The company is also getting a $100 million amortizing term loan A that is priced at Libor plus 275 bps with a step-down to Libor plus 250 bps at 1.5 times gross leverage. There is no Libor floor and the debt was issued at a discount of 991/2.

During syndication, pricing on the term loan B firmed at the low end of the Libor plus 325 bps to 350 bps talk and the floor was reduced from 1.25%, and pricing on the term loan A was reverse flexed from talk of Libor plus 300 bps with a step-down to Libor plus 275.

Semtech buying Gennum

Proceeds from Semtech's $350 million of new five-year term loans (Ba2) and cash on hand will fund the acquisition of Gennum Corp. for C$13.55 in cash per share for a transaction value of about C$500 million.

Jefferies & Co. is the lead bank on the term loans.

Closing on the acquisition is subject to the receipt of approval of at least 66 2/3% of votes cast by Gennum shareholders and approval of the Ontario Superior Court of Justice.

Semtech is a Camarillo, Calif.-based supplier of analog and mixed-signal semiconductors. Gennum is a Burlington, Ont.-based supplier of high-speed analog and mixed-signal semiconductors for the optical communications and video broadcast markets.

NDS trades up

Also in trading, NDS Group's term loan was stronger on Thursday after news came out that Cisco will be purchasing the company for about $5 billion, including the assumption of debt and retention-based incentives, according to a trader.

The term loan was quoted at 99 7/8 bid, par ¼ offered, after quickly rising from early morning levels of 99¼ bid, par offered, the trader said, adding that around $120 million of the debt traded. Prior to the news, the loan was seen at 98¾ bid, 99½ offered.

Closing on the acquisition is expected to occur during the second half of this year, subject to customary conditions, including regulatory reviews.

NDS is a U.K.-based provider of video software and content security services. Cisco is a San Jose, Calif.-based designer, manufacturer and seller of Internet protocol -based networking and other products related to the communications and information technology industry.

Container Store sets talk

Moving to the primary, Container Store held a bank meeting on Thursday morning to kick off syndication on its proposed credit facility, and shortly ahead of the launch, price talk on the term loan B emerged, according to a market source.

The $275 million B loan (B3/B-) is being talked at Libor plus 475 bps to 500 bps with a 1.25% Libor floor, an original issue discount of 97½ and 101 soft call protection for one year, the source remarked.

The company's $350 million credit facility also includes a $75 million asset-based revolver.

J.P. Morgan Securities LLC, Barclays Capital Inc., Morgan Stanley Senior Funding Inc. and Wells Fargo Securities LLC are the lead banks on the deal that will be used to refinance an existing $75 million ABL revolver, a $116 million term loan B and $166 million of mezzanine notes.

Container Store is a Coppell, Texas-based retailer of organization and storage products.

AMN OID, pricing

AMN Healthcare Services also launched with a bank meeting, and the original issue discount guidance on its $200 million six-year term loan B came out at 981/2, according to a market source.

Also, pricing on the loan was narrowed down with official talk at launch being Libor plus 500 bps with a 1.25% Libor floor, versus early guidance in the Libor plus 500 bps area with a 1.25% to 1.5% Libor floor, the source said. There is 101 soft call protection for one year.

SunTrust Robinson Humphrey Inc. and GE Capital Markets are the lead banks on the $250 million credit facility, which also includes a $50 million five-year revolver.

AMN, a San Diego-based health-care staffing and workforce services company, will use proceeds from the new deal to refinance existing debt.

Commitments from lenders are due on March 29.

Alliance Laundry coupon

Alliance Laundry Systems disclosed talk of Libor plus 275 bps on its $350 million five-year credit facility (B1) in connection with its Thursday launch, according to a market source.

The facility consists of a $75 million revolver and a $275 million term loan A.

Bank of America Merrill Lynch, BMO Capital Markets Corp., Morgan Stanley Senior Funding Inc. and Fifth Third Securities Inc. are the co-arrangers on the deal.

Proceeds will be used to refinance an existing $60 million revolver due September 2015 and a $243 million term loan B due September 2016 that is priced at Libor plus 450 bps with a 1.75% floor.

Furthermore, the new deal will fund a special dividend and be used for general corporate purposes.

Alliance Laundry is a Ripon, Mass.-based designer, manufacturer and marketer of commercial laundry equipment used in laundromats, multi-housing laundries and on-premise laundries.

Alere releases talk

Yet another deal to reveal talk was Alere, as it launched its $200 million term loan B-2 at Libor plus 350 bps with a 1% Libor floor and an original issue discount of 983/4, a market source said.

The coupon and floor match existing term loan B pricing, and as a result of the leveraged-based grid in the credit agreement, the coupon will step up to Libor plus 375 bps by March 31, the source said.

Jefferies & Co., GE Capital Markets and Credit Suisse Securities (USA) LLC are the lead banks on the deal that will be used to fund the acquisition of eScreen Inc. for $270 million in cash.

Alere is a Waltham, Mass.-based provider of near-patient diagnosis, monitoring and health management. eScreen is an Overland Park, Kan.-based technology firm that specializes in toxicology screening and employee health products and services.

Catapult launches

Catapult Learning launched too, bringing its $93 million credit facility at talk of Libor plus 525 bps with a 1.5% Libor floor and an original issue discount of 981/4, according to a market source.

The facility consists of a $15 million revolver, a $12 million delayed-draw term loan and a $66 million term loan, the source said.

BMO Capital Markets Corp. is the lead bank on the deal that will be used to refinance existing debt and fund a dividend.

Catapult Learning is a Camden, N.J.-based provider of contracted educational services to schools and districts.

Momentive discount guidance

Meanwhile, Momentive Performance Materials told investors on its morning conference call that its $175 million senior secured term loan due May 5, 2015 is being offered with original issue discount talk of 95 to 951/2, according to a market source.

Prior to launch, pricing on the loan was announced at Libor plus 350 bps with no Libor floor, in line with pricing on the existing roughly $925 million term loan due 2015.

Commitments are due at 5 p.m. ET on March 21.

J.P. Morgan Securities LLC, BMO Capital Markets Corp., Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co., Morgan Stanley Senior Funding Inc. and UBS Securities LLC are the bookrunners on the deal that will be used to repay existing term loans maturing Dec. 4, 2013.

Momentive is a Columbus, Ohio-based producer of thermoset resins.

SafeNet details emerge

Continuing on the topic of pricing, talk on SafeNet Inc.'s $150 million incremental first-lien term loan B (B1) due 2018 surfaced at Libor plus 450 bps with a 1.25% Libor floor and an original issue discount of 981/2, and the tranche includes 101 soft call protection for one year, a market source said.

Also, talk came out on the company's proposed extended term loan B (B1/B+) at Libor plus 450 bps with an offer of a 37.5 bps fee, and on its proposed extended second-lien term loan (Caa1/B-) at Libor plus 800 bps with an offer of a 150 bps fee, the source continued. The second-lien loan has 101 hard call protection for two years.

Under the amendment and extension, the company is looking to push out the maturity on its $25 million revolver to 2016 from 2013, its $236 million first-lien term loan B to 2017 from 2014 and its $131 million second-lien term loan to 2016 from 2015.

SafeNet lead banks

J.P. Morgan Securities LLC and Deutsche Bank Securities Inc. are the lead banks on SafeNet's deal, which already launched with a call on Wednesday afternoon.

Proceeds from the incremental term loan will be used to fund a distribution to shareholders.

Commitments are due on March 23.

SafeNet is a Belcamp, Md.-based provider of information security software and encryption technology.

Weight Watchers closes

In other news, Weight Watchers International Inc. completed the amendment to its credit facility, getting $1.45 billion of incremental term loans (Ba1/BB+) to fund the repurchase of common stock, according to an 8-K filed with the Securities and Exchange Commission.

The new debt includes a $600 million seven-year term loan F priced at Libor plus 300 bps with a step-down to Libor plus 275 bps at 3.75 times total net leverage. There is a 1% Libor floor and 101 soft call protection for one year, and it was sold at an original issue discount of 99.

Also, there is an $850 million five-year term loan E that is priced at Libor plus 225 bps.

Additionally, the company extended $262 million of its revolver to 2017, and has a $70.7 million revolver maturing on June 30, 2014. Pricing on the extended revolver ranges from Libor plus 175 bps to 225 bps, and on the non-extended revolver from Libor plus 212.5 bps to 250 bps, based on leverage.

J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch and Scotia Capital (USA) Inc. led the deal for the New York-based weight management services company.

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