Visteon, Signode, Kate Spade, Pelican, Sesac break; updates on multiple primary deals emerge

By Sara Rosenberg

New York, April 8 - Visteon Corp.'s credit facility freed up for trading on Tuesday, with the term loan B quoted above its original issue discount price, and Signode Industrial (Industrial Packaging Group), Kate Spade & Co., Pelican Products Inc. and Sesac surfaced in the secondary as well.

Moving to the primary, Rexam Healthcare moved some funds between its first- and second-lien term loans while tightening spreads and original issue discounts, Wall Street Systems Delaware Inc. raised pricing on its term loan B, and Serena Software increased pricing on its term loan for a second time and modified the offer price.

Also, ClubCorp Club Operations Inc. upsized its add-on loan, Nielsen Finance LLC finalized spreads on its term debt, USJ-Imeco lifted pricing on its term loan while extending the call protection, and Orbitz Worldwide Inc. accelerated its commitment deadline.

Furthermore, Dutch LLC and TASC Inc. came out with additional details on their deals with launch, Diamond Resorts Corp. released timing and structure on its credit facility, and Stratus Technologies, Bennu Oil & Gas LLC and Hi-Crush Partners LP joined this week's calendar.

Visteon tops OID

Visteon's credit facility emerged in the secondary market on Tuesday, with the $600 million seven-year term loan B quoted at par bid, par ¾ offered, according to a trader.

Pricing on the B loan is Libor plus 275 basis points with a 0.75% Libor floor and it was sold at an original issue discount of 993/4, There is 101 soft call protection for six months and a ticking fee of half the spread from days 46 through 90 and the full spread thereafter.

During syndication, pricing on the term B firmed at the low end of the Libor plus 275 bps to 300 bps talk, the discount was changed from 99½ and the 18-month MFN sunset provision was removed.

The Van Buren Township, Mich., automotive supplier's $800 million senior secured deal (B1/BB-), which is expected to close on Wednesday, also includes a $200 million five-year revolver priced at Libor plus 275 bps with a 50 bps undrawn fee.

Citigroup Global Markets Inc., Bank of America Merrill Lynch, UBS Securities LLC, Barclays and Morgan Stanley Senior Funding Inc. are leading the deal that will refinance some bonds and fund an acquisition.

Signode changes emerge

Signode Industrial set pricing on its $1.35 billion U.S. term loan at Libor plus 300 bps, the low end of the Libor plus 300 bps to 325 bps talk, firmed its $400 million euro equivalent term loan at Euribor plus 325 bps, the low end of the Euribor plus 325 bps to 350 bps talk, and moved the discount on both tranches to 99¾ from 991/2, according to sources.

Also, the 12-month MFN sunset provision was eliminated, sources said.

Both term loans have a 25 bps step-down in pricing when net leverage is 4 times, a ticking fee of half the spread from days 31 to 60 and the full spread thereafter, a 1% floor and 101 soft call protection for six months.

Recommitments were due at noon ET on Tuesday.

Signode trades

With final pricing in place, Signode's debt emerged in the secondary in the afternoon, with the U.S. term loan quoted at par bid, par ½ offered, a trader added.

J.P. Morgan Securities LLC, Goldman Sachs Bank USA, Bank of America Merrill Lynch, Barclays, Citigroup Global Markets Inc. and Credit Suisse Securities (USA) LLC are leading Signode's $1.75 billion of loans (B1/B) that will be used with $750 million of bonds and equity to fund its $3.2 billion buyout by Carlyle Group from Illinois Tool Works Inc.

Closing on the transaction is expected in the middle of this year, subject to customary regulatory approvals.

Signode is a Glenview, Ill.-based manufacturer of strap, stretch and protective packaging for consumables, tools and equipment.

Kate Spade hits secondary

Kate Spade's $400 million covenant-light term loan B (B2/B) freed up for trading too, with levels seen at 99 7/8 bid, par 3/8 offered, according to a trader.

Pricing on the term loan is Libor plus 300 bps with a 1% Libor floor and it was sold at an original issue discount of 991/2. There is 101 soft call protection for six months.

During syndication, pricing on the loan was trimmed from talk of Libor plus 375 bps to 400 bps and the discount firmed at the tight end of the 99 to 99½ guidance.

Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Wells Fargo Securities LLC and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to refinance some bonds and pay down ABL credit facility borrowings.

Kate Spade is a New York-based designer and marketer of accessories and apparel.

Pelican Products breaks

Pelican Products' credit facility also began trading with the $365 million six-year first-lien covenant-light term loan seen at par ¼ bid, par ¾ offered and the $175 million seven-year second-lien covenant-light term loan seen at par bid, 101 offered, a source remarked.

Pricing on the first-lien term loan is Libor plus 425 bps with a 1% Libor floor and it was sold at a discount of 991/2. There is 101 soft call protection for one year.

The second-lien loan is priced at Libor plus 825 bps with a 1% Libor floor and was sold at 991/4. This debt has call protection of 102 in year one and 101 in year two.

During syndication, pricing on the first-lien term loan was cut from Libor plus 500 bps and the discount was tightened from 99, and the second-lien loan was upsized from $160 million, the spread was reduced from Libor plus 900 bps and the discount was changed from 981/2.

Pelican lead banks

Credit Suisse Securities (USA) LLC and Morgan Stanley Senior Funding Inc. are leading Pelican Products' $570 million credit facility, which also includes a $30 million revolver.

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

With this transaction, existing first-lien lenders are getting repaid at 101 and existing second-lien lenders are getting repaid at 102.

Pelican Products is a Torrance, Calif.-based protective case and lighting equipment manufacturer.

Sesac frees up

Another deal to break was Sesac's $115 million add-on first-lien term loan (B2), with levels seen at par bid, a trader remarked.

Pricing on the add-on is Libor plus 400 bps with a 1% Libor floor, in line with the existing term loan, and the new debt was sold at an original issue discount of 991/2.

With this transaction, the add-on and the existing term loan got 101 soft call protection for six months and existing lenders were offered a 25 bps amendment fee.

Jefferies Finance LLC is leading the deal that will be used to pay down second-lien term loan borrowings.

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.

Rexam reworks deal

Back in the primary, Rexam Healthcare lifted its seven-year first-lien covenant-light term loan to $415 million from $380 million, split between a $315 million U.S. tranche and a $100 million euro-equivalent tranche instead of a $280 million U.S. tranche and $100 million euro-equivalent tranche, according to a market source.

In addition, pricing on the first-lien term loan was trimmed to Libor/Euribor plus 325 bps from talk of Libor/Euribor plus 375 bps to 400 bps and the original issue discount was revised to 99½ from 99, the source said. The 1% floor and 101 soft call protection for six months were unchanged.

Meanwhile, the eight-year second-lien covenant-light term loan was reduced to $140 million from $175 million, pricing was lowered to Libor plus 700 bps from talk of Libor plus 775 bps to 800 bps and the discount was tightened to 99 from 981/2, the source continued. This tranche still has a 1% Libor floor and call protection of 102 in year one and 101 in year two.

Rexam getting revolver

Along with the first- and second-lien term loans, Rexam Healthcare's $620 million credit facility includes a $65 million revolver.

Recommitments were due at 5 p.m. ET on Tuesday, the source added.

Credit Suisse Securities (USA) LLC (left on first-lien), Morgan Stanley Senior Funding Inc. (left on second-lien), Barclays and HSBC Securities (USA) Inc. are leading the deal that will be used to help fund the $805 million buyout of the company by Montagu Private Equity from Rexam plc.

Closing is expected by mid-year, subject to consultation with various European works councils and necessary regulatory approvals.

Rexam Healthcare is a manufacturer of plastic packaging for the health care industry.

Wall Street flexes

Wall Street Systems lifted the spread on its $460 million seven-year covenant-light term loan B to Libor plus 350 bps from talk of Libor plus 300 bps to 325 bps, and left the 1% Libor floor, original issue discount of 99½ and 101 soft call protection for six months unchanged, a market source said.

The company's $485 million credit facility (B3/B) also includes a $25 million five-year revolver.

Recommitments were due at the close of business on Tuesday, the source added.

Deutsche Bank Securities Inc. is leading the deal that will be used to refinance an existing senior secured credit facility and repay debt.

Wall Street Systems is a provider of treasury management, central banking and FX trade processing services with U.S. headquarters in New York.

Serena revised again

Serena Software increased pricing on its $345 million six-year first-lien term loan to Libor plus 650 bps from revised talk of Libor plus 600 bps and initial talk of Libor plus 550 bps, and changed the original issue discount to 98 from 99, a market source remarked.

As before, the term loan has a 1% Libor floor, call protection of 102 in year one and 101 in year two on all voluntary prepayments, and amortization of 5% in year one and 7.5% thereafter.

At the time of the first pricing flex, the call protection was revised from a soft call and amortization was increased from 5% per annum.

The company's $365 million credit facility (B2/B+) also includes a $20 million five-year revolver.

Serena being acquired

Proceeds from Serena Software's credit facility will be used with equity to fund its buyout of by HGGC and Serena founder Doug Troxel from Silver Lake Partners.

Credit Suisse Securities (USA) LLC is leading the credit facility that is expected to allocate on Wednesday, the source added.

Closing is anticipated to occur on Monday. The buyout is subject to regulatory approvals and customary conditions.

Serena Software is a San Mateo, Calif.-based provider of orchestrated application development and release management services.

ClubCorp upsizes

ClubCorp lifted its add-on covenant-light term loan B (B1/B+) due July 24, 2020 to $350 million from $300 million, according to a market source.

As before, the loan is priced at Libor plus 300 bps with a 1% Libor floor (in line with the existing term loan) and an original issue discount of 991/2, and has 101 soft call protection for six months.

Recommitments are due at noon ET on Wednesday and allocations are expected that afternoon, the source said.

Citigroup Global Markets Inc. leading the deal that will be used to redeem about $270 million of the company's 10% senior notes due in 2018, and, as a result of the upsizing, for general corporate purposes, the source added.

ClubCorp is a Dallas-based owner and operator of golf courses, country clubs, private business and sports clubs, and resorts.

Nielsen sets pricing

Nielsen Finance finalized pricing on its $500 million term loan B-1 due 2017 at Libor plus 225 bps, the tight end of the Libor plus 225 bps to 250 bps talk, and left the par offer price and 101 soft call protection for six months intact, according to market sources. The debt still has no Libor floor.

Also, the spread on the $1.1 billion seven-year term loan B-2 firmed at Libor plus 300 bps, the high end of the Libor plus 275 bps to 300 bps talk, while the debt continues to have no Libor floor, an original issue discount of 99¾ and 101 soft call protection for six months, sources said.

The company's $1.8 billion in new term loans (BBB-) also includes a $200 million five-year term loan A.

J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Goldman Sachs Bank USA, HSBC Securities (USA) Inc. and Morgan Stanley Senior Funding Inc. are leading the deal that will refinance existing bank debt.

Nielsen is a New York and Netherlands-based provider of information and insights into what consumers watch and buy.

USJ-Imeco tweaks loan

USJ-Imeco widened the spread on its $90 million six-year term loan to Libor plus 600 bps from Libor plus 500 bps and extended the 101 soft call protection to one year from six months, according to a market source.

As before, the term loan has a 1% Libor floor and an original issue discount of 991/2.

The company's $105 million credit facility, which also includes a $15 million five-year revolver, is expected to allocate later this week.

BNP Paribas Securities Corp. is leading the deal that will be used to fund an acquisition.

USJ-Imeco is a provider of turnkey marine joiner, marine electro-mechanical and furniture that was formed through the merger of two J.F. Lehman portfolio companies, Crozet, Va.-based US Joiner and Iron Mountain, Mich.-based Imeco Inc.

Orbitz moves deadline

Orbitz accelerated the commitment deadline on its $525 million credit facility (B2/BB-) to 5p.m. ET on Wednesday from Thursday, according to a market source.

The facility consists of a $75 million revolver, and a $450 million seven-year first-lien term loan talked at Libor plus 375 bps with a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to refinance existing term loan B and term loan C borrowings.

Orbitz is a Chicago-based online travel agency.

Dutch reveals talk

In more primary happenings, Dutch LLC held its bank meeting on Tuesday, launching its $200 million six-year term loan B (B2/BB-) with talk of Libor plus 500 bps to 525 bps with a 1% Libor floor, an original issue discount of 99 to 99½ and 101 soft call protection for six months, according to a market source.

Commitments are due on April 17, the source said.

Bank of America Merrill Lynch and RBC Capital Markets are leading the deal that will be used to refinance existing debt.

Dutch is a designer, manufacturer, marketer and wholesaler of apparel.

TASC holds call

TASC held its call in the morning, launching an extension of its roughly $632 million term loan B by two years to Dec. 18, 2017 and the debt is being offered at pricing of Libor plus 525 bps with a 1.25% Libor floor, up from current pricing of Libor plus 325 bps with a 1.25% Libor floor, a market source said.

Additionally, the company is looking to extend its revolver by two years to Sept. 18, 2017 and reduce the size to $50 million from $80 million.

Commitments and consents are due on April 22, the source added.

Barclays is leading the roughly $682 million credit facility (B) extension, which is conditioned upon 90% minimum level of participation.

TASC, a Chantilly, Va.-based provider of advanced systems engineering and technical assistance to the defense, intelligence, federal and homeland security markets, has net senior secured leverage and net total leverage of 5.6 times.

Diamond details surface

Diamond Resorts set a bank meeting for 11 a.m. ET in New York on Thursday to launch a $470 million credit facility that consists of a $25 million revolver and a $445 million seven-year first-lien covenant-light term loan, according to a market source.

The term loan has 101 soft call protection for one year.

Commitments are due on April 24, the source said.

Previously, the Las Vegas-based hospitality and vacation ownership company said that it would be getting a new credit facility, but timing and structure were not available.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to refinance the $374.4 million outstanding under the company's 12% senior secured notes due 2018, any outstanding revolver borrowings and other debt, and for corporate purposes.

Stratus coming soon

Stratus Technologies scheduled a bank meeting for 2 p.m. ET in New York on Wednesday to launch a $245 million credit facility, according to a market source.

The facility consists of a $20 million revolver and a $225 million seven-year term loan B, the source said.

SunTrust Robinson Humphrey Inc. and Macquarie Capital (USA) Inc. are leading the deal that will be used with equity to fund the roughly $352 million buyout of the company by Siris Capital Group LLC and refinance existing debt.

Gross leverage is 4.2 times and net leverage is 3.8 times, the source added.

Closing is subject to customary conditions, including the receipt of shareholder and regulatory approvals.

Stratus Technologies is a Maynard, Mass.-based provider of infrastructure-based services that keep applications running continuously.

Bennu readies deal

Bennu Oil & Gas will hold a call at 11 a.m. ET on Wednesday to launch a $392,125,000 second-lien term loan due November 2018 that is talked at Libor plus 750 bps with a 1.25% Libor floor, an original issue discount of 99¾ and call protection of non-callable for 1½ years, then at 102 for a year and 101 for a year, a market source said.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to refinance an existing term loan priced at Libor plus 900 bps with a 1.25% Libor floor.

Existing lenders will be repaid at par and are being offered a 25 bps amendment fee, the source added.

Bennu is an oil and gas exploration and production company in the Gulf of Mexico.

Hi-Crush joins calendar

Hi-Crush Partners set a bank meeting for 10:30 a. ET on Thursday to launch a $200 million senior secured term loan B, according to a market source.

Morgan Stanley Senior Funding Inc., Barclays and UBS Securities LLC are leading the deal that will be used to help fund the acquisition of certain equity interests in Hi-Crush Augusta LLC, the owner of a raw frac sand processing facility located in Augusta, Wis., for $224.25 million.

The company is also getting a $150 million revolver led by Amegy Bank, the source added.

Closing is expected by mid-May, subject to regulatory approvals and other conditions.

Hi-Crush is a Houston-based integrated producer, transporter, marketer and distributor of high-quality monocrystalline sand.

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