SunCoke dips with outlook; NPC, Landry's, Barrington set price talk; Sinclair OID surfaces

By Sara Rosenberg

New York, Nov. 29 - SunCoke Energy Inc.'s term loan was softer in trading on Tuesday as the company disclosed earnings estimates for next year that were viewed by some as a bit disappointing. By late day, however, the debt did manage to recoup a portion of its early morning losses.

Over in the primary, NPC International Inc. and Landry's Inc. revealed guidance on their new loans, and Sinclair Television Group Inc. set original issue discount talk as the deals were presented to investors during the session.

Barrington Broadcasting Group LLC came out with price talk in preparation for its upcoming launch.

Additionally, VeriFone Systems Inc. zeroed in on timing on the launch of its credit facility and released details on tranching, Sterling Infosystems Inc. pushed off its bank meeting since it is still negotiating the price on the acquisition that the debt will help fund, and Liqui-Box emerged with new issue plans.

SunCoke trades down

SunCoke Energy's term loan weakened in trading on Tuesday with the company's release of an outlook for its business in 2012, according to a trader.

The term loan was quoted at 97¾ bid, 98¾ offered in the morning, down from 98¼ bid, 99¼ offered on Monday, the trader said. By late afternoon, levels had rebounded slightly to 98 bid, 99 offered.

For full-year 2012, the company expects earnings per share to be between $1.30 and $1.65 based on 70 million shares outstanding, which is short of analyst estimates, and free cash flow to be in excess of $50 million.

Also, adjusted EBITDA is anticipated to be between $250 million and $280 million, up at least $100 million from 2011, and capital expenditures are projected to be around $150 million versus an estimated $280 million in 2011.

SunCoke is a Lisle, Ill.-based producer of metallurgical coke.

NPC guidance emerges

Moving to the primary, NPC International, an Overland Park, Kan.-based Pizza Hut franchisee, held a bank meeting on Tuesday afternoon to kick off syndication in its $460 million senior credit facility, at which time lenders were told that the debt is being talked at Libor plus 550 bps, according to a source.

The facility consists of an $85 million revolver that is being offered with a 250 bps upfront fee and a $375 million term loan that is being offered at an original issue discount in the 97 area and has a 1.5% Libor floor as well as 101 soft call protection for one year, the source continued.

The revolver has already been upsized from a previously outlined amount of $75 million as a result of good demand.

Lead banks Barclays Capital Inc. and Goldman Sachs & Co. are seeking commitments towards the new deal by Dec. 13, and proceeds, along with mezzanine debt, will be used to fund the buyout of the company by Olympus Partners and to refinance all existing debt.

Closing is expected by Dec. 28, subject to regulatory approvals and customary conditions.

Landry's add-on pricing

Also launching was Landry's $50 million add-on term loan, which is being talked at Libor plus 450 bps with a 1.75% Libor floor and an original issue discount of 971/2, according to a market source.

The spread and floor match that of the existing term loan.

Jefferies & Co. and Wells Fargo Securities LLC are the lead banks on the deal that will be used, along with $90 million of 11 5/8% senior secured notes due 2015, to fund the purchase of McCormick & Schmick's Seafood Restaurants Inc. for $8.75 per share in cash, for a total equity value of $131.6 million.

Closing is expected in late December or early January, subject to the tender of a majority of shares, the expiration of the waiting period under Hart-Scott-Rodino and other customary conditions.

Landry's is a Houston-based full-service restaurant, hospitality and entertainment company. McCormick & Schmick's is a Portland, Ore.-based operator of seafood restaurants.

Sinclair discloses OID

Sinclair Television was yet another deal to launch on Tuesday, and lenders were told that the $280 million incremental term loan B due October 2016 is being offered at an original issue discount of 981/2, according to a market source.

Talk on the B loan of Libor plus 300 bps with a 1% Libor floor had come out prior to the launch.

The company's $530 million of add-on debt also includes a $250 million incremental term loan A due March 2016 that is talked at Libor plus 225 bps.

J.P. Morgan Securities LLC, Wells Fargo Securities LLC and Deutsche Bank Securities Inc. are the lead banks on the deal and are seeking commitments by Dec. 9.

The company is also looking to amend its existing facility to increase the revolver to $100 million from $75.4 million, extend the maturity to March 2016 from 2013 and gain more flexibility under covenants.

Sinclair funding acquisitions

Sinclair will use its new term loan borrowings, cash on hand and/or a revolver draw to fund the $385 million purchase of Freedom Communications' broadcast assets and the $200 million acquisition of Four Points Media Group LLC from Cerberus Capital Management LP.

Closing on the Freedom transaction is expected in early January and on the Four Points transaction in late March. As a result, about $350 million of the new term loan debt is expected to be done on a delayed-draw basis.

Sinclair is a Hunt Valley, Md.-based television broadcasting company. Freedom is an Irvine, Calif.-based media company operating print publications, broadcast television stations and interactive businesses. Four Points is an owner and operator of seven stations.

Barrington floats talk

Continuing on the topic of price talk, Barrington Broadcasting released guidance on its $195 million credit facility as the company is getting ready to present the transaction to investors with a conference call on Wednesday at 10 a.m. ET, according to a market source.

The facility, comprised of a $10 million five-year revolver and a $185 million 51/2-year term loan B, is being talked at Libor plus 600 bps with a 1.5% Libor floor, the source said. The term loan B has an original issue discount in the 97 context and 101 soft call protection for one year.

Bank of America Merrill Lynch and Wells Fargo Securities LLC are the lead banks on the deal that will be used to refinance existing credit facilities and repay 10½% senior subordinated notes due 2014.

Barrington is a Schaumburg, Ill.-based owner and operator of network affiliated television stations.

Verifone timing/structure

In more primary happenings, Verifone nailed down a bank meeting for its proposed $1.6 billion senior secured credit facility, setting it for 12:30 p.m. ET on Thursday in New York, and revealed structure on the deal, according to a market source.

The facility consists of a $350 million five-year revolver, a $1 billion five-year term loan A and a $250 million seven-year term loan B, the source said, adding that price talk is still to be determined.

When news of the proposed transaction first hit the market, the company had said that it was expected to include a five-year term loan A with some amortization and a small term loan B if necessary.

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

VeriFone buying Point

Proceeds from VeriFone's credit facility will be used to help fund the acquisition of Point Group from Nordic Capital and to refinance an existing $217 million term loan and $277 million of convertible notes that come due in June 2012.

The purchase price for Point is roughly €770 million, comprised of cash to shareholders of €600 million and repayment of Point debt of €170 million.

Leverage will be in the 3 times area.

Closing is anticipated to take place by year end, subject to customary conditions.

VeriFone is a San Jose, Calif.-based secure electronic payment services company. Point is a Stockholm-based provider of multichannel electronic payment services.

Sterling postpones launch

Sterling Infosystems has decided to delay the bank meeting for its proposed $180 million credit facility until January from Wednesday because the acquisition that the debt will be used for is still being finalized, a market source told Prospect News.

The source went on to say that it is the purchase price for the identified target that is in the negotiation process.

In addition to funding the acquisition, the credit facility will refinance existing debt.

GE Capital Markets and RBS Citizens are the lead banks on the deal that consists of a $20 million revolver and a $160 million term loan.

Sterling Infosystems is a New York-based background screening company.

Liqui-Box readies deal

Liqui-Box joined this week's calendar, scheduling a bank meeting for Thursday morning to launch a proposed $105 million credit facility, according to a market source.

The facility consists of a $20 million five-year revolver and an $85 million six-year term loan B, the source said. Price talk is not yet available.

BNP Paribas Securities Corp. and BMO Capital Markets Corp. are leading the deal that will be used with about $25 million of mezzanine debt to fund the acquisition of the company by The Sterling Group from DuPont.

Leverage is 3.1 times on a senior basis and 4.1 times total.

Liqui-Box is a manufacturer of bag and box flexible packaging for the beverage, dairy and foodservice markets.

FleetPride allocating soon

FleetPride Inc.'s $430 million senior secured facility (B1/B+) successfully syndicated at initial terms, and the expectation is that allocations will go out on Wednesday, according to a market source.

The deal consists of a $60 million five-year revolver and a $370 million six-year term loan, both priced at Libor plus 550 bps with a 1.25% Libor floor. The term loan was offered at an original issue discount of 98 and has 101 soft call protection for one year.

Bank of America Merrill Lynch, Deutsche Bank Securities Inc. and ING Financial Markets LLC are the joint lead arrangers and bookrunners on the facility that will be used to refinance existing senior secured credit facility and redeem 11½% senior notes due 2014 and senior discount notes due 2015 as well as for general corporate purposes.

FleetPride, a Woodlands, Texas-based distributor of heavy truck and trailer parts, expects to close on the transaction this quarter.

Unifrax closes

American Securities LLC completed its acquisition of Unifrax I LLC, a Niagara Falls, N.Y.-based supplier of high-temperature insulation products, according to a news release, and to help fund the transaction, the company got a new roughly $560 million credit facility (B2/B+) consisting of a $50 million five-year revolver, a $385 million seven-year U.S. term loan B and a €95 million seven-year term loan B.

Pricing on the revolver is Libor plus 525 bps with a 75 bps unused fee, pricing on the U.S. term B is Libor plus 550 bps and pricing on the euro B loan is Euribor plus 600 bps. The term loan Bs have a 1.5% Libor floor, were sold at a discount of 98 and include 101 soft call protection for one year.

During syndication, the euro tranche was carved out of what was initially a $490 million term B, and sizes were €75 million and $390 million before an upsizing. Pricing on the U.S. loan was cut from Libor plus 600 bps and the discount moved from 97, and revolver pricing was cut from Libor plus 575 bps.

Goldman Sachs & Co., Wells Fargo Securities LLC, GE Capital Markets and KeyBanc Capital Markets LLC led the deal.

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