Serta-Simmons pushes up timing; Suddenlink sets talk; American Airlines launches repricing

By Paul A. Harris

Portland, Ore., Oct. 17 – In Monday’s leverage loan market Serta Simmons Holdings LLC accelerated timing on $2.4 billion of term loans.

American Airlines, Inc. launched a $1.97 billion two-part deal.

And Suddenlink Communications talked its $815 million senior secured term loan B due 2025 with a 300 to 325 basis points spread to Libor atop a 0.75% Libor floor.

Serta accelerates timing

Serta Simmons accelerated timing on $2.4 billion of term loans now in the market, according to a market source.

Commitments are now due at 5 p.m. ET on Wednesday. Prior to the acceleration, the deadline had been Oct. 20.

Price talk on its $1.9 billion seven-year first-lien term B and $500 million eight-year second-lien term loan remain unchanged.

The first-lien term loan is talked at Libor plus 350 bps to 375 bps with a 1% Libor floor and an original issue discount of 99.5, and the second-lien term loan is talked at Libor plus 800 bps to 825 bps with a 1% Libor floor and a discount of 98.5, the source said.

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

Amortization on the first-lien term loan is 1% per annum.

UBS Investment Bank and Goldman Sachs Bank USA are the bookrunners on the deal, with UBS left lead on the term loan B and Goldman left lead on the second-lien loan.

The company’s $2,625,000,000 credit facility also provides for a $225 million ABL revolver.

Proceeds will be used to refinance existing debt and pay a dividend.

Advent International is the sponsor.

Serta is an Atlanta-based manufacturer and distributor of mattresses.

American two-part deal

American Airlines has launched a $1.97 billion two-part senior secured term loan repricing (Ba2/BB+), according to a market source.

It includes a $970 million senior secured term loan due 2019, talked Libor plus 225 bps with no Libor floor and no discount.

The deal also includes a $1 billion senior secured term loan due 2023, talked Libor plus 250 bps atop a 0.75% Libor floor.

Both tranches are talked at par and feature 101 soft call protection for six months.

Commitments are due on Oct. 25.

Barclays is the lead arranger.

The Fort Worth-based commercial airline plans to use the proceeds to reprice its existing senior secured term loans due 2019 and 2023.

Suddenlink talk

Suddenlink Communications talked its $815 million senior secured term loan B due 2025 with a 300 to 325 bps spread to Libor atop a 0.75% Libor floor.

Goldman Sachs is the left bookrunner. Deutsche Bank is the joint bookrunner.

Commitments are due on Thursday.

The deal comes with 101 soft call protection for six months and features a 1% annual amortization.

Suddenlink is a St. Louis-based cable and broadband service provider.

Harsco meeting Wednesday

Harsco Corp. scheduled a bank meeting on Wednesday to launch a $950 million credit facility, according to a market source.

The deal includes a$550 million seven-year senior secured term loan B and a $400 million five-year revolver.

Goldman Sachs is the left bookrunner. Citigroup, HSBC, BofA Merrill Lynch, RBC, US Bank and KeyBanc are the joint bookrunners.

Upon the closing of the new facility, the Camp Hill, Pa.-based diversified industrial company intends to amend and extend its existing credit facilities, redeem its existing 5¾% senior notes due 2018.

Filtration Group price talk

Filtration Group Corp. set price talk for its $341 million incremental first-lien term loan B due November 2020 (B2/B) at a 325 bps spread to Libor atop a 1% Libor floor, with an OID of 99 to 99.5.

Commitments are due Oct. 25.

Goldman Sachs & Co. is the left bookrunner. BMO Securities is the joint bookrunner.

The deal features 101 soft call protection for six months on new and existing money and a 1% annual amortization.

There will be $237 million of the loan will be issued in delayed settle form. There will be no ticking fee for the first 30 days, a ticking fee at 50% of the margin from days 31 through 60, and a fee at 100% of the margin from day 61 on.

Proceeds will be used to fund an acquisition and to pay down second-lien term loan borrowings, the source said.

Filtration Group is a Chicago-based manufacturer and distributor of filtration products to end markets.

Accuride meeting Thursday

Accuride Corp. set a Thursday bank meeting for a $300 million credit facility, according to a market source.

RBC Capital Markets is leading the deal which is comprised of a $65 million five-year ABL revolver and a $235 million term loan B.

The borrower is an Evansville, Ind.-based supplier of components to the commercial vehicle industries.

Expera meeting Wednesday

Expera Specialty Solutions LLC set a lender meeting on Wednesday for its $285 million seven-year term loan B, according to a market source.

Deutsche Bank Securities Inc. is the left bookrunner. Barclays is the joint bookrunner.

The specialty paper and protective packaging manufacturer plans to use the proceeds to refinance debt and fund a distribution to shareholders.

The sponsor is KPS.

Applied Systems tightens OID

Applied Systems Inc. tightened the OID on its fungible $150 million add-on first-lien term loan (B1) with original issue discount talk to 99.75 from 99.5, according to a market source.

The deal was set to allocate on Monday.

Pricing on the add-on term loan is Libor plus 325 bps with a 1% Libor floor, in line with existing first-lien term loan pricing.

Both the add-on term loan and the existing term loan will get 101 soft call protection for six months, the source said.

Jefferies Finance LLC is the lead bank on the deal. Credit Suisse Securities (USA) LLC will remain the administrative agent.

Proceeds will be used to fund a distribution of capital to shareholders.

Applied Systems is a University Park, Ill.-based provider of software for the insurance industry.

Evoqua lender call

Evoqua Water Technologies (EWT Holdings III Corp.) scheduled a lender call at 2 p.m. ET on Tuesday for a $150 million fungible tack-on first lien term loan due Jan. 15, 2021 (B2/B), according to a market source.

Credit Suisse Securities (USA) LLC is the lead.

Pricing is Libor plus 375 bps atop a 1% Libor floor, the same as the existing loan.

The reoffer price remains to be determined.

The 101 soft call resets for six months.

The Warrendale, Pa.-based provider of equipment and services for water treatment plans to use the proceeds to refinance draws upon its revolver, to refinance its existing second-lien debt and for general corporate purposes.

Varsity Brands call Tuesday

Varsity Brands set a Tuesday lender call for a $95 million add-on first lien term loan, according to a market source.

In addition the company will privately place a $95 million add-on second lien term loan.

Goldman Sachs is the left bookrunner. Barclays and Jefferies are the joint bookrunner.

The Memphis, Tenn.-based provider of school sports, cheerleading and achievement-related products plans to use the proceeds, along with balance sheet cash, to fund a distribution to existing equity holders.

Entercom $520 million

Entercom Communications announced in a Monday press release that it scheduled a Tuesday bank meeting for a $520 million senior secured credit facility.

The deal includes a $60 million five-year revolver and a $460 million seven-year term loan.

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

The Bala Cynwyd, Pa.-based broadcaster plans to use the proceeds to refinance its $225 million of existing senior secured bank debt and call $220 million of 10½% senior subordinated notes.

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