Monitronics, Protection One, Serena break; Infor strengthens; iStar, Tube City tweak deals

By Sara Rosenberg

New York, March 16 - Monitronics International Inc. upsized its term loan B, finalized pricing and freed up for trading on Friday, Protection One Inc. set the coupon on its term B at the wide end of talk and broke, and Serena Software Inc. began trading after widening its original issue discount.

In more secondary happenings, Infor Global Solutions Holdings Ltd.'s old extended first-lien term loan and second-lien term loans were higher after details emerged on the financing plans for its merger with Lawson Software Inc., and AMC Networks Inc.'s term loan B was better with buying activity.

Back over in the primary, iStar Financial Inc. made a round of revisions to its term loans, reducing the size of the A-1 tranche while widening the original issue discount and sweetening call premiums, and upsizing the A-2 piece while setting the discount price at the wide end of talk.

Also coming out with changes in the morning was Tube City IMS Corp., as it reverse-flexed pricing on its senior secured term loan B and tightened the original issue discount due to strong investor demand.

Furthermore, Alon USA Energy Inc. and Aveta Inc. emerged with new deal plans, Pinnacle Foods Finance LLC will be coming with a new loan as well as an amendment and extension proposal, and Mercury Payment Systems LLC is getting ready to bring a repricing transaction to market.

Monitronics ups loan

Monitronics lifted its six-year term loan B to $550 million from $500 million as its senior notes offering was trimmed to $410 million from $460 million, according to a market source.

Additionally, pricing on the term loan B firmed up at Libor plus 425 basis points, the tight end of the Libor plus 425 bps to 450 bps talk, while the 1.25% Libor floor, original issue discount of 99 and 101 soft call protection for one year were left intact, the source remarked.

The company's now $700 million credit facility (Ba3/B), up from $650 million, also includes a $150 million five-year revolver.

Bank of America Merrill Lynch, Citigroup Global Markets Inc. and Credit Suisse Securities (USA) LLC are the lead banks on the deal.

Monitronics starts trading

As size and pricing were finalized on Monitronics in the morning, allocations were able to go out in the afternoon, with the term loan B breaking for trading at 99¾ bid, par ¼ offered, a trader said.

Proceeds from the credit facility and bonds will be used to repay all outstanding borrowings under an existing senior secured credit facility and to purchase notes under, and terminate, an existing securitization debt.

Closing on the transaction is expected to occur on March 23.

Monitronics is a Dallas-based alarm monitoring company with over 700,000 subscribers under contract.

Protection One frees up

Protection One's $520 million seven-year term loan B began trading on Friday, with levels seen at 98½ bid, 99¼ offered on the break and then it moved up to 98¾ bid, 99½ offered, according to a trader.

Pricing on the loan is Libor plus 450 bps after firming at the wide end of the Libor plus 425 bps to 450 bps talk. There is a 1.25% Libor floor and 101 soft call protection for one year, and the debt was sold at an original issue discount of 981/2.

The company's $545 million credit facility (B1/B+) also includes a $25 million five-year revolver.

J.P. Morgan Securities LLC and Barclays Capital Inc. are the lead banks on the deal that will be used to refinance existing credit facility borrowings and fund a distribution to shareholders.

Protection One is a Romeoville, Ill.-based alarm and security services provider.

Serena breaks

Serena Software's $117 million senior secured term loan (B+) due March 2016 hit the secondary market on Friday at 98½ bid, 99 offered, according to a trader.

Pricing on the loan is Libor plus 400 bps with a 1% Libor floor, and it was sold at an original issue discount of 981/2, after widening from 99, the source said. There is 101 soft call protection for one year.

Barclays Capital Inc. is the lead bank on the deal that will be used to repay non-extended term loan debt.

Serena is a Redwood City, Calif.-based Application Lifecycle Management vendor.

Infor loans rise

Infor Global's old first-lien term loan and second-lien term loans were higher in trading on Friday as information on a proposed new credit facility and bonds surfaced that will be done in connection with the company's combination with Lawson, according to a trader.

The old extended first-lien term loan was quoted at 99½ bid, par offered, up from 99 bid, 991/2, the new second-lien term loan was quoted at 98½ bid, 99½ offered, up from 97 bid, 98 offered, and the old-second-lien term loan was quoted at 98½ bid, 99½ offered, up from 98 bid, 99 offered, the trader said.

Meanwhile, the company's new extended term loan B2 was basically flat on the day at 99½ bid, par offered, and the PIK term loan was moving around with levels quoted at 92½ bid, 94½ offered late day, versus 94 bid, 96 offered on the open and 93½ bid, 95½ offered previously, the trader added.

Infor, Lawson plan debt

For the Lawson/Infor merger, Lawson Software is planning on getting a $3.65 billion senior secured credit facility and issuing $1.15 billion equivalent senior notes, market sources told Prospect News.

The credit facility consists of a $150 million five-year revolver, a $3.1 billion six-year term loan B and a $400 million 41/2-year term loan B-1, and will be launched with a bank meeting in London on Monday and a bank meeting in New York on Wednesday.

Both term loans will include 101 soft call protection for one year.

The notes are also being marketed in Europe and the U.S., with pricing targeted for the week of March 26.

Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc., Barclays Capital Inc., Deutsche Bank Securities Inc., RBC Capital Markets LLC and KKR Capital Markets are the lead banks on the debt financing.

Infor, Lawson merger

Under the proposal, 100% of the outstanding capital stock of Infor Global Solutions Intermediate Holdings Ltd. and 100% of the outstanding capital stock of Lawson will be contributed to a new Cayman Islands exempted company referred to as ComboCo.

Proceeds from the credit facility and bonds will be used to refinance existing debt, including credit facilities and Lawson's 11½% senior notes due 2018.

Lawson launched a change-of-control notice and offer to purchase its outstanding 11½% senior notes that expires on April 4. And, a consent solicitation was launched that expires on March 21 to amend the indenture to waive the requirement for a change-of-control offer.

Lawson is a St. Paul, Minn.-based provider of enterprise software. Infor Global is a New York-based provider of business software. They are both currently owned by Golden Gate Capital.

AMC gains ground

AMC Networks' term loan B traded up to 99½ bid, par offered from 99¼ bid, 99¾ offered on Friday, a trader said.

And at one point during the day, the loan was seen as high as 99 5/8 bid, par 1/8 offered, the trader said.

He explained that a couple of buyers stepped in on Friday, pushing levels higher.

AMC Networks is a New York-based owner and operator of several cable television brands.

iStar reworks deal

Back on the new deal front, iStar Financial restructured its deal, shifting some funds between tranches, firming up original issue discounts, and modifying call protection on the A-1, according to a market source.

With the changes, the first-out four-year term loan A-1 (B1/BB) is now sized at $410 million, down from $500 million, and priced at Libor plus 400 bps with a 1.25% Libor floor and an original issue discount of 98, the source said. The coupon and floor are unchanged from initial talk but the discount came wide of the 98½ to 99 guidance.

Also, the term loan A-1 is now non-callable for one year, then at 102 in year two and par thereafter, revised from 101 in year one and par ½ in year two.

As for the five-year term loan A-2 (B2/BB-), it is now sized at $470 million, up from $400 million, and pricing is Libor plus 575 bps with a 1.25% Libor floor and an original issue discount of 981/2, which came at the high side of the 98½ to 99 talk.

The term loan A-2 is still non-callable for three years, then at 104 in year four and par thereafter.

iStar repaying debt

Proceeds from iStar's now $880 million of new senior secured term loans, down from $900 million, will be used for general corporate purposes, including the refinancing of 2012 unsecured debt maturities.

Commitments were due by 5 p.m. ET on Friday and allocation will likely go out on Monday, the source added.

Barclays Capital Inc. and Bank of America Merrill Lynch are the joint lead arrangers on the deal, and bookrunners with J.P. Morgan Securities LLC.

With this transaction, the company's term loans A-1 and A-2 are staying in place, and the new loans are being executed as new tranches.

iStar Financial is a New York-based finance and investment company focused on the commercial real estate industry.

Tube City cuts pricing

Tube City was another company to rework its credit facility on Friday, cutting pricing on its $300 million seven-year senior secured term loan B (B1/B+) to Libor plus 450 bps from talk of Libor plus 475 bps to 500 bps and moving the original issue discount to 99 from 981/2, a source said.

As before, the term loan B provides for a 1.25% Libor floor and 101 soft call protection for one year.

Recommitments were due by 5 p.m. ET on Friday and allocations are expected to go out early in the week of March 19, the source added.

J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch and Wells Fargo Securities LLC are the lead banks on the deal that will be used to refinance an existing term loan B due Jan. 25, 2014 and 9¾% senior subordinated notes due Feb. 1, 2015.

Tube City is a Glassport, Pa.-based provider of outsourced industrial services to steel mills.

Alon readies loan

In more primary news, Alon USA Energy has set a bank meeting for 1 p.m. ET on Tuesday to launch a proposed $700 million secured term loan B that is being led by Goldman Sachs & Co., according to a market source.

Proceeds will be used to repay an existing term loan of which about $425 million is outstanding, to redeem $216.5 million of Alon Refining Krotz Springs Inc.'s 13½% senior secured notes due 2014 and for general corporate purposes.

A portion of the new term loan B may be delayed-draw depending on the results of the notes tender offer, the source said.

Alon USA is a Dallas-based refiner and marketer of petroleum products.

Aveta deal emerges

Aveta joined the calendar as well, setting a bank meeting for Tuesday to launch a $550 million credit facility, according to sources.

The facility consists of a $50 million revolver and a $500 million term loan, sources said.

Bank of America Merrill Lynch is the lead bank on the deal that will be used to refinance existing debt and fund a dividend.

Aveta is a Fort Lee, N.J.-based medical management company.

Pinnacle Foods coming soon

Pinnacle Foods will be holding a conference call at 4 p.m. ET on Monday to launch a $550 million credit facility, comprised of a $150 million five-year revolver and a $400 million term loan E, according to a market source.

Additionally, the company will launch an amendment and extension of its term loan B due 2014, of which $1.197 billion was outstanding at Dec. 25, 2011 at pricing of Libor plus 250 bps.

The company is looking to extend the term loan B maturity to October 2016. Details on extended pricing are not yet available.

Proceeds from the new term loan E will be used to repay a roughly $313 million term loan D due 2014 that is priced at Libor plus 425 bps with a 1.75% Libor floor, and to redeem $199 of 10 5/8% notes.

Barclays Capital Inc, Bank of America Merrill Lynch, J.P. Morgan Securities LLC and Macquarie Capital are the lead banks on the deal.

Pinnacle Foods is a Mountain Lakes, N.J.-based manufacturer and distributor of branded packaged foods.

Mercury Payment sets call

Mercury Payment Systems has scheduled a conference call for 11 a.m. ET on Monday to launch a $199 million term loan that will be used to reprice its existing term loan borrowings, according to a market source.

The existing loan is priced at Libor plus 500 bps with a 1.5% Libor floor, and was sold at an original issue discount in the summer of 2011.

Deutsche Bank Securities Inc., Barclays Capital Inc. and Credit Suisse Securities (USA) LLC are the lead banks on the deal.

Mercury Payment Systems is a Durango, Colo.-based payment processing company that partners with point-of-sale developers and resellers.

Graphic Packaging closes

In other happenings, Graphic Packaging International Inc. completed its $2 billion five-year credit facility (Ba2/BBB) consisting of a $1 billion revolver and a $1 billion term loan A, both priced at Libor plus 225 bps, according to a news release.

During syndication, the revolver was upsized from $800 million, the term loan A was upsized from $800 million and a planned $400 million term loan B was eliminated.

Bank of America Merrill Lynch, SunTrust Robinson Humphrey Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. and J.P. Morgan Securities LLC led the deal that was used to refinance existing debt.

About $1.53 billion of the new credit facility was drawn at close.

Graphic Packaging is a Marietta, Ga.-based provider of packaging services for food, beverage and other consumer products companies.

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