Ocwen Loan Servicing breaks; DineEquity tweaks deal; SESAC, Crossmark shutting early

By Sara Rosenberg

New York, Jan. 28 - Ocwen Loan Servicing LLC's senior secured term loan made its way into the secondary market during Monday's market hours with levels seen will above its original issue discount price.

Over in the primary, DineEquity Inc. tightened the offer price on its term loan B, and SESAC and Crossmark accelerated the commitment deadlines on their credit facilities.

Also, First Advantage, Neiman Marcus Group Inc., Hubbard Radio LLC, NRG Energy Inc., ADS Waste Holdings Inc., Par Pharmaceutical Cos. Inc. and IMS Health Inc. revealed talk, and Waupaca Foundry Inc. disclosed original issue discount guidance, with launch.

Furthermore, Paradigm Holdco Sarl announced repricing plans and Jo-Ann Stores Inc. emerged with a refinancing transaction.

Ocwen frees up

Ocwen Loan Servicing's $1.3 billion five-year senior secured term loan broke for trading on Monday, with levels quoted at par ½ bid, 101½ offered on the open and then it moved to 101 bid, 101¾ offered, according to a market source.

Pricing on the loan is Libor plus 375 basis points with a 1.25% Libor floor, and it was sold at an original issue discount of 991/2. There is 101 soft call protection for one year.

During syndication, pricing was reduced from Libor plus 425 bps and the discount firmed at tight end of the 99 to 99½ talk.

Barclays, Citigroup Global Markets Inc. and J.P. Morgan Securities LLC are leading the deal.

Ocwen funding acquisition

Proceeds from Ocwen's term loan will help finance the $2.45 billion purchase of private label, Freddie Mac, Ginnie Mae and master servicing, as well as certain subservicing, mortgage assets from Residential Capital LLC. Funds will also be used to refinance existing term loan debt.

Closing is expected for Jan. 31, subject to approval of Freddie Mac, Fannie Mae and various government agencies.

Ocwen, an Atlanta-based provider of residential and commercial loan servicing, special servicing and asset management services, will have pro forma corporate debt to LTM Adjusted EBITDA of 1.7 times and total debt to total net worth of 3.6 times.

DineEquity modifies offer

Moving to the primary, DineEquity changed the offer price on its $472 million term loan B due Oct. 19, 2017 to par from 99 7/8, while leaving pricing at Libor plus 275 bps with a 1% Libor floor and keeping the 101 soft call protection for one year intact, according to a market source.

The company's $547 million senior secured credit facility also includes a $75 million revolver due Oct. 19, 2015 that is priced at Libor plus 275 bps.

Recommitments were due at 5 p.m. ET on Monday. Closing is expected mid-to-late this week, the source said.

Barclays is leading the deal that will be used to refinance an existing term loan due October 2017 priced at Libor plus 300 bps with a 1.25% Libor floor, and an existing revolver priced at Libor plus 450 bps with a 1.5% Libor floor.

DineEquity amending

With the refinancing/repricing, DineEquity is looking to amend its credit agreement's excess cash flow sweep step-downs, definition of excess cash flow sweep and restricted payments to convert cumulative available amount to quarterly from annual.

Revolver lenders are being offered a 12.5 bps amendment fee.

Leverage is 2.2 times on a net senior secured basis and 5.1 times on a net total basis.

DineEquity is a Glendale, Calif.-based owner of Applebee's Neighborhood Grill & Bar and IHOP Restaurants.

SESAC moves deadline

SESAC revised the commitment deadline on its $340 million credit facility to noon ET on Wednesday from Feb. 4, according to a market source.

The facility consists of a $15 million five-year revolver (B1/BB-), a $220 million six-year first-lien term loan (B1/BB-) and a $105 million 61/2-year second-lien term loan (Caa1/CCC+), the source said.

The first-lien term loan is talked at Libor plus 525 bps to 550 bps with a 1.25% Libor floor and an original issue discount of 99, and the second-lien term loan is talked at Libor plus 925 bps to 950 bps with a 1.25% Libor floor and a discount of 981/2.

Included in the first-lien loan is 101 soft call protection for one year, and the second-lien term loan has call protection of 103 in year one, 102 in year two and 101 in year three.

SESAC acquired

Proceeds from SESAC's credit facility, along with $284 million of equity, are being used to back the already completed buyout of the company by Rizvi Traverse Management for $590.5 million, or 10.6 times pro forma EBITDA.

Net leverage through the first-lien is 3.6 times and net leverage through the second-lien is 5.5 times.

Jefferies & Co. is leading the deal.

SESAC is a Nashville, Tenn.-based performing rights organization that represents the interests of individual songwriters and publishers of music to ensure they are compensated for the public performance of their copyrighted material.

Crossmark shutting early

Crossmark accelerated the commitment deadline on its $490 million credit facility to Wednesday from Friday, according to a market source.

The facility consists of a $75 million revolver (B1), a $310 million covenant-light first-lien term loan (B1) talked at Libor plus 400 bps with a 1.25% Libor floor and an original issue discount of 99 to 991/2, and a $105 million covenant-light second-lien term loan (Caa1) talked at Libor plus 800 bps to 825 bps with a 1.25% Libor floor and a discount of 981/2.

The first-lien term loan has 101 soft call protection for one year, and the second-lien term loan has call protection of 103 in year one, 102 in year two and 101 in year three, the source added.

Bank of America Merrill Lynch, Barclays, Credit Suisse Securities (USA) LLC and UBS Securities LLC are leading the deal that will be used to help fund the buyout of the company by Warburg Pincus. The management owners of Crossmark will maintain a significant equity position and continue to actively lead the company after the transaction closes.

Crossmark is a Plano, Texas-based sales and marketing services company in the consumer goods industry.

Genesys going well

Genesys' $675 million first-lien term loan has been met with strong demand, allowing for the acceleration of the commitment deadline to Wednesday from Feb. 5, according to a market source.

The term loan, which is being marketed in the U.S. and Europe, is talked at Libor plus 350 bps to 375 bps with a 1.25% Libor floor and an original issue discount of 99, and has 101 soft call protection for one year.

Goldman Sachs & Co., Citigroup Global Markets Inc., J.P. Morgan Securities LLC and RBC Capital Markets LLC are the lead banks on the deal.

Proceeds will be used to refinance existing debt.

Genesys is a Daly City, Calif.-based supplier of contact center technology software.

First Advantage pricing

In more primary happenings, First Advantage hosted a bank meeting, launching its $300 million first-lien term loan (B) with talk of Libor plus 500 bps with a 1.25% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, according to a market source.

The company's $340 million first-lien credit facility also includes a $40 million revolver (B), and, in addition to the first-lien debt, there is a $125 million second-lien term loan that has been privately placed with Tennenbaum Capital Partners LLC.

Bank of America Merrill Lynch is leading the deal that will be used to fund the acquisition of the employment and resident screening business of LexisNexis Risk Solutions, a division of Reed Elsevier.

Closing is expected in early March, subject to customary conditions.

First Advantage is a St. Petersburg, Fla.-based provider of talent acquisition solutions and services, including background screening, recruiting solutions, skills assessment and skills-related tax services.

Neiman talk surfaces

Neiman Marcus held a call on Monday morning to launch the repricing of its $2.56 billion first-lien covenant-light term loan due May 2018, and shortly before the presentation began, price talk was announced, according to a market source.

Through the repricing, the company is looking to take the term loan down to Libor plus 300 bps with a 1% Libor floor from Libor plus 350 bps with a 1.25% Libor floor, the source said.

The repriced loan is being offered at par and has 101 soft call protection for six months. Currently, there is no call protection on the existing loan.

Lead bank, Credit Suisse Securities (USA) LLC, is seeking commitments by Feb. 1, the source added.

Neiman Marcus is a Dallas-based chain of department stores.

Hubbard sets guidance

Hubbard Radio also held a call on the morning, at which times its $358 million term loan B (B1/B+) due April 28, 2017 was launched with talk of Libor plus 350 bps to 375 bps with a 1.25% Libor floor, a par offer price and 101 soft call protection for six months, a market source said.

The term loan B includes a $140 million add-on and a repricing of the existing term loan B debt from Libor plus 375 bps with a 1.5% Libor floor.

Lead bank, Morgan Stanley Senior Funding Inc., is asking for commitments/consents by Feb. 5.

Proceeds from the add-on will be used by the Minneapolis-St. Paul, Minn.-based broadcasting company to refinance a second-lien term loan, the source continued.

NRG repricing

NRG Energy launched a repricing of its $1.58 billion term loan with talk of Libor plus 250 bps with a 1% Libor floor and 101 soft call protection for one year, according to a market source.

Through this transaction, the company is taking the spread down on its term loan from Libor plus 300 bps. There is no change to the Libor floor.

Commitments are due at the end of the day on Friday.

Citigroup Global Markets Inc. is leading the deal.

NRG Energy is a wholesale power generation company with headquarters in Princeton, N.J., and Houston.

ADS Waste terms

ADS Waste is asking lenders to reprice its $1.8 billion covenant-light term loan due October 2019 to Libor plus 300 bps with a 1.25% Libor floor from Libor plus 400 bps with a 1.25% Libor floor, according to a market source, who said the repriced loan will benefit from 101 soft call protection for six months.

Commitments are due on Feb. 4.

Existing lenders are getting paid out at 101 as a result of current call protection.

Deutsche Bank Securities Inc. is the lead bank on the deal.

ADS Waste is a Jacksonville, Fla.-based provider of integrated, non-hazardous solid waste collection, transfer, recycling and disposal services.

Par Pharmaceutical launches

Par Pharmaceutical held its call, and revealed to lenders that it wants to reprice its roughly $1 billion term loan to Libor plus 325 bps with a 1% Libor floor from Libor plus 375 bps with a 1.25% Libor floor, a market source said.

The repriced loan will have 101 soft call protection for six months, the source continued.

Bank of America Merrill Lynch, Deutsche Bank Securities Inc., Goldman Sachs & Co., RBC Capital Markets LLC, Citigroup Global Markets Inc. and BMO Capital Markets Corp. are leading the deal.

Par Pharmaceutical is a Woodcliff Lake, N.J.-based specialty pharmaceutical company.

IMS comes to market

IMS Health also launched a repricing, through which it is looking to take its U.S. term loan down to Libor plus 275 bps with a 1% Libor floor from Libor plus 325 bps with a 1.25% Libor floor, and its euro term loan down to Euribor plus 300 bps with a 1.25% floor from Euribor plus 350 bps with a 1.5% floor, a source said.

Bank of America Merrill Lynch is the lead bank on the deal.

IMS is a Parsippany, N.J.-based provider of information, services and technology for the health care industry.

Waupaca reveals OID

Waupaca Foundry came out with original issue discount talk of 99½ on its $150 million add-on term loan (B+) that launched with a call during the session, according to a market source.

Pricing on the add-on matches existing term loan pricing at Libor plus 450 bps with a 1.25% Libor floor.

GE Capital Markets leading the add-on that will be used to fund a dividend.

Waupaca Foundry is a Waupaca, Wis.-based producer of gray and ductile iron castings for the automotive, truck, agriculture, construction, hydraulics and commercial vehicle markets.

Paradigm readies call

Paradigm scheduled a conference call for 2 p.m. ET on Tuesday to launch a repricing of its $305 million covenant-light first-lien term loan from Libor plus 525 bps with a 1.25% Libor floor, according to a market source.

UBS Securities LLC is the lead bank on the deal.

Paradigm is a software vendor focused on the oil and gas exploration and production space.

Jo-Ann refinancing

Jo-Ann Stores set a lender call at 11 a.m. ET on Tuesday to launch a roughly $627 million term loan B-2 due March 2018 that will be used to refinance an existing term loan B, according to a market source.

The loan is being talked at Libor plus 300 bps to 325 bps with a 1% Libor floor, a par offer price and 101 soft call protection for six months, the source said.

J.P. Morgan Securities LLC is leading the deal.

Jo-Ann is a Hudson, Ohio-based specialty retailer of fabrics and crafts.

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