Nexstar breaks; Samson, Hillman slip on repricings; Salix, Altisource revisions surface

By Sara Rosenberg

New York, Dec. 5 - Nexstar Broadcasting Inc.'s term loan B-2 hit the secondary market on Thursday, and Samson Investment Co. and Hillman Group Inc. saw their term loans soften with repricing news.

Switching to the primary, Salix Pharmaceuticals Ltd. trimmed pricing on its term loan B and added a step-down, and Altisource Solutions Sarl firmed the spread on its B loan at the low end of guidance while also revising the original issue discount price.

In addition, Moxie Liberty, FCI and Edmentum Inc. (formerly known as Plato Learning) price talk surfaced with their launches, and EquiPower Resources Holdings LLC and Therakos Inc. disclosed original issue discount guidance on their add-on loans.

Furthermore, timing emerged on Chemtrade Logistics Income Fund's credit facility, and Sesac, Smart & Final Holdings Corp., Omnitracs Inc., Ipreo Holdings LLC and American Rock Salt joined the forward calendar.

Nexstar frees up

Nexstar's roughly $350 million add-on term loan B-2 broke for trading on Thursday, with levels quoted at par ¼ bid, par ¾ offered, according to a trader.

Pricing on the loan is Libor plus 275 basis points with a 1% Libor floor, in line with the existing term loan B-2, and it was issued at par. There is 101 soft call protection through April 2014.

During syndication, the offer price on the loan firmed at the tight end of the 99¾ to par talk.

Bank of America Merrill Lynch, RBC Capital Markets LLC, Credit Suisse Securities (USA) LLC and Wells Fargo Securities LLC are leading the deal that will be used to repay term loan B borrowings.

Nexstar is an Irving, Texas-based diversified media company.

Samson weakens

Samson Investment's term loan B slid to par ¼ bid, par ¾ offered from par ½ bid, 101¼ offered after plans to reprice and pay down a portion of the debt were announced, according to a market source.

The currently $1 billion senior secured covenant-light term loan due Sept. 25, 2018 priced at Libor plus 475 bps with a 1.25% Libor floor is expected to be reduced to $750 million and repriced to Libor plus 425 bps with a 1% Libor floor, the source said.

The proposed repriced loan, which will launch with a call at 11 a.m. ET on Friday, is offered at par and has 101 soft call protection for six months.

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

Commitments are due on Dec. 12, the source added.

Funds for the term loan pay down will come from borrowings under the company's ABL facility.

Earlier in the year, the company attempted to reprice the $1 billion term loan to Libor plus 400 bps with a 1% Libor floor, but that proposal was pulled in September.

Samson is a Tulsa, Okla.-based private exploration and production company.

Hillman dips

Hillman Group's term loan B due May 28, 2017 dropped to par ¼ bid, 101 offered from par ½ bid as the company launched a repricing of the $386.4 million tranche in the morning, according to a trader.

The repricing is talked at Libor plus 275 bps to 300 bps with a 1% Libor floor, a par offer price and 101 soft call protection for six months, a source said.

This transaction would take the term loan B pricing down from Libor plus 300 bps with a 1.25% Libor floor.

Barclays is leading the deal for which commitments are due on Dec. 13.

Senior secured leverage is 3.1 times and total leverage is 6.2 times.

Hillman is a Cincinnati-based distributor of fasteners, key duplication systems, engraved tags and related hardware items.

Salix flexes lower

Over in the primary, Salix Pharmaceuticals cut pricing on its $1.2 billion six-year covenant-light term loan B to Libor plus 325 bps from talk of Libor plus 350 bps to 375 bps, added a step-down to Libor plus 300 bps when leverage is less than 3.75 times, and moved up the commitment deadline to 2 p.m. ET on Friday from Dec. 13, according to a market source.

The B loan still has a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months.

The company's $1.35 billion senior secured credit facility (Ba1/BB) also includes a $150 million five-year revolver.

Jefferies Finance LLC, Fifth Third Securities Inc., PNC Capital Markets LLC, SunTrust Robinson Humphrey Inc. and SMBC are leading the deal that will be used with an expected $750 million notes offering and about $800 million of cash on hand to fund the acquisition of Santarus Inc. for $32 per share, or about $2.6 billion.

Closing is expected in the first quarter of 2014, subject to a minimum tender requirement, the expiration or termination of the waiting period under Hart Scott Rodino and other customary conditions.

Salix is a Raleigh, N.C.-based developer and marketer of prescription pharmaceutical products and medical devices. Santarus is a San Diego-based specialty biopharmaceutical company.

Altisource tweaks deal

Altisource set the spread on its $397.5 million senior secured covenant-light term loan B due Nov. 27, 2020 at Libor plus 350 bps, the tight end of the Libor plus 350 bps to 375 bps talk, and moved the original issue discount to 99 7/8 from 993/4, according to a market source.

As before, the loan has a 1% Libor floor and 101 soft call protection for six months.

Bank of America Merrill Lynch, J.P. Morgan Securities LLC and Citigroup Global Markets Inc. are leading the deal that will be used to reprice and extend by one an existing term loan B.

Closing is targeted for Dec. 9.

Total leverage is 2.2 times and net leverage is 1 times.

Altisource is a Luxembourg-based provider of services focused on high-value, technology-enabled knowledge-based solutions principally related to real estate and mortgage portfolio management, asset recovery and customer relationship management.

Moxie Liberty guidance

Moxie Liberty held its bank meeting on Thursday, launching its $585 million of term loan debt with talk of Libor plus 600 bps to 625 bps with a 1% Libor floor, an original issue discount of 99 and call protection of non-callable for 2½ years, then at 102 for a year and 101 for the following year, according to a market source.

The debt is split between a $200 million delayed-draw term loan that has a 200 bps undrawn fee and is available for one year, and a $385 million funded term loan B.

Commitments are due on Dec. 16, the source added.

Goldman Sachs Bank USA, Ares Capital and Union Bank of California are leading the deal that will be used to help fund the construction of the Patriot Generation Plant, an 829-megawatt natural gas fired power plant in Lycoming County, Pa.

Moxie Liberty is owned by Panda Power Funds.

FCI sets talk

FCI launched with a bank meeting its $300 million six-year covenant-light term loan B with talk of Libor plus 450 bps to 475 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

Goldman Sachs Bank USA, Bank of America Merrill Lynch, HSBC Securities (USA) Inc. and J.P. Morgan Securities LLC are leading the deal.

Proceeds will be used to fund a dividend.

FCI is a manufacturer of connectors for use in electronic, micro-connector, electrical and automotive applications.

Edmentum launches

Edmentum emerged in the morning with plans to hold a call at 2:30 p.m. ET to launch a $221 million first-lien term loan due May 2018 talked at Libor plus 450 bps with a 1% Libor floor, a par offer price and 101 soft call protection for one year, a market source said.

Proceeds will be used to reprice an existing term loan from Libor plus 475 bps with a 1.25% Libor floor, and take down the amortization to 1% per annum from 5% per annum.

Leads, Credit Suisse Securities (USA) LLC and Jefferies Finance LLC, are asking for commitments by Dec. 16.

Post news, the first-lien term loan was unchanged in trading at par ½ bid, 101 offered, the source added.

Existing lenders will get repaid at 101 with the repricing.

Edmentum is a Minneapolis-based provider of online curriculum.

EquiPower offer price

EquiPower launched in the afternoon its fungible $125 million add-on term loan C due Dec. 31, 2019 with original issue discount talk of 993/4, according to a market source.

Pricing on the add-on is Libor plus 325 bps with a 1% Libor floor, in line with existing term loan pricing, both will get 101 soft call protection for six months, the source said.

Commitments are due at 5 p.m. ET on Dec. 12.

Barclays, Credit Agricole and Mitsubishi UFJ Financial Group are leading the deal that will be used to fund the acquisition of Richland-Stryker assets, fund incremental amounts required for the debt service reserve account and pay related transaction fees and expenses.

In addition, the company is seeking an amendment to its existing credit facility to allow for the add-on, revise certain credit agreement baskets to reflect the acquisition and to modify the financial covenant contained in the revolver.

Net first-lien leverage is 4.9 times and net total leverage is 5.2 times.

EquiPower is a Hartford, Conn.-based competitive power generation company owned by Energy Capital Partners LLC.

Therakos OID talk

Therakos released original issue discount of 99 to 99½ on both its $46.5 million add-on first-lien term loan due Dec. 27, 2017 and $25 million add-on second-lien term loan due June 27, 2018 that launched with a call during the session, according to a market source.

Pricing on the add-on first-lien loan is Libor plus 625 bps with a 1.25% Libor floor and pricing on the add-on second-lien loan is Libor plus 1,000 bps with a 1.25% Libor floor, which matches existing first-and second-lien loan pricing.

Commitments are due at noon ET on Dec. 13, the source remarked.

Bank of America Merrill Lynch and Jefferies Finance LLC are the leading the $71.5 million deal that will be used to fund a distribution to shareholders.

Therakos is a Raritan, N.J.-based provider of integrated systems for delivering extracorporeal photopheresis, a therapy used to treat niche but serious disease states arising from immune system imbalances.

Sheridan leads emerge

Barclays and UBS Securities LLC surfaced as right leads on Sheridan Holdings Inc.'s $520 million of new term loan debt, joining the previously announced left lead, Credit Suisse Securities (USA) LLC, according to a market source.

The debt, which launched with a call in the afternoon, includes an $85 million tack-on first-lien covenant-light term loan due June 2018 (B1/B), a $70 million delayed-draw first-lien covenant-light term loan (B1/B) due June 2018 and a $365 million second-lien covenant-light term loan (Caa1/CCC+) due December 2021.

The tack-on first-lien loan and delayed-draw loan are being sold as a strip and are talked at Libor plus 350 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and the second-lien loan is talked at Libor plus 750 bps to 775 bps with a 1% Libor floor, a discount of 99 and call protection of 103 in year one, 102 in year two and 101 in year three.

There is a ticking fee on the delayed-draw loan of half the spread from Jan. 1 to Feb. 15 and the full spread from Feb. 16 to April 1.

Sheridan recapitalizing

Proceeds from Sheridan Holdings' term loans will be used to pay a dividend, fund an acquisition and refinance existing debt.

Commitments are due on Dec. 16.

With this transaction, the company is seeking an amendment to its existing credit facility and is offering term loan lenders a 12.5 bps consent fee.

Sheridan Holdings is a Sunrise, Fla.-based provider of outsourced health care services.

Chemtrade reveals timing

Chemtrade came out with timing on the launch of its $1 billion five-year senior secured credit facility, with the bank meeting scheduled to take place on Friday, according to a market source.

The facility consists of a $400 million revolver and a $600 million term loan, both talked at Libor plus 250 basis points with step-downs based on leverage.

BMO Capital Markets and Scotia Bank are leading the deal that will be used with $300 million of equity to fund the $860 million acquisition of General Chemical Holding Co. from American Securities LLC and refinance existing bank debt.

Senior secured leverage is expected to be around 3.3 times.

Closing is expected in December or January, subject to approval by the necessary regulatory authorities, including HSR.

Chemtrade is a Toronto-based operator of a diversified business providing industrial chemicals and services. General Chemical is a Parsippany, N.J.-based manufacturer of inorganic chemical products.

Sesac on deck

Sesac set a call for 10:30 a.m. ET on Friday to launch a repricing of its $233 million first-lien term loan that is talked at Libor plus 400 bps to 425 bps with a 1% Libor floor, a par offer price and 101 soft call protection for six months, according to a market source.

By comparison, current pricing on the loan is Libor plus 475 bps with a 1.25% Libor floor.

Jefferies Finance LLC 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.

Smart & Final coming soon

Smart & Final will hold a call at 11 a.m. ET on Friday to launch a fungible $140 million add-on term loan B and an amendment to its existing $575.8 million term loan B, according to a market source.

Morgan Stanley Senior Funding Inc., Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. are leading the deal.

Smart & Final is a Commerce, Calif.-based warehouse-style, no membership fee, multi-format retailer serving households and smaller businesses.

Omnitracs readies call

Omnitracs scheduled a call for 2 p.m. ET on Monday to launch incremental first-and second-lien loans, according to a market source.

RBC Capital Markets, Credit Suisse Securities (USA) LLC and Guggenheim Corporate Funding, LLC are leading the deal that will be used to help fund the acquisition of Roadnet Technologies Inc.

Closing is expected this month, subject to clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and other customary conditions.

Omnitracs is a San Diego-based provider of satellite and terrestrial-based connectivity and position location solutions to transportation and logistics companies. Roadnet is a Baltimore-based provider of routing, scheduling, optimization and mobile resource management software services.

Ipreo plans call

Ipreo set a call for 10 a.m. ET on Friday to launch a repricing of its $168 million term loan from Libor plus 525 bps with a 1.25% Libor floor, according to a market source.

RBC Capital Markets LLC is leading the deal.

Ipreo is a New York-based capital markets and corporate analytics firm.

American Rock repricing

American Rock Salt is planning to hold a call at 2 p.m. ET on Monday to launch a repricing of its $292.5 million covenant-light term loan B that is talked at Libor plus 375 bps to 400 bps with a 1% Libor floor and a par offer price, according to a market source.

Current pricing on the term loan is Libor plus 425 bps with a 1.25% Libor floor.

RBS Securities Inc. is the administrative agent on the deal.

American Rock Salt is a Retsof, N.Y.-based salt mine operator.

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