Federal-Mogul term loans bounce with numbers; WP CPP Holdings, Exopack revisions surface

By Sara Rosenberg

New York, Oct. 23 - Federal-Mogul Corp.'s term loan B and term loan C strip of debt saw a little bounce up in bid levels after favorable quarterly results were announced, but by late day, once activity had died down, levels had settled in to end unchanged.

Moving to the primary, WP CPP Holdings LLC lowered the spread on its second-lien term loan and tightened the original issue discount on the second-lien tranche as well as on its add-on first-lien term loan, and Exopack Holding Corp. updated sizes and pricing on its U.S. and euro term loans.

Furthermore, Golden Nugget Inc. and Ascensus Inc. disclosed talk on their deals that were presented to investors during the session, Active Network Inc. revealed timing on its credit facility that will come with a slightly different structure than previously outlined by the company, and Town Sports International LLC emerged with launch details on its credit facility.

Federal-Mogul moves around

Federal-Mogul's strip of term loan B and term loan C debt saw some activity in trading on Wednesday as the company released third quarter numbers.

The strip of debt ended the day at 98¾ bid, 99¾ offered, unchanged from the prior session, but in the morning, after numbers were announced, the bid moved up to 99, a trader remarked. He explained that there was trading in the name on the back of the earnings results but when activity died down in the afternoon, the bid settled back in.

For the quarter, the company reported net sales of $1.69 billion, up from $1.55 billion in the 2012 third quarter, net income was $38 million, or $0.26 per share, versus a net loss of $11 million, or negative $0.11 per share, in the previous year, and operational EBITDA was $147 million, an increase from $103 million last year.

The company also said in its earnings call that it is working on an extension of its asset-based revolver and is continuing to evaluate the best time to approach the market with a term loan refinancing.

Officials added in the call that its current term loan interest rate is attractive so there's no rush to complete a refinancing.

Federal-Mogul is a Southfield, Mich.-based supplier of powertrain and safety technologies.

WP CPP flexes

Moving to the primary, WP CPP Holdings trimmed pricing on its $240 million 71/2-year second-lien term loan (Caa1/CCC+) to Libor plus 775 basis points from Libor plus 800 bps and moved the original issue discount to 99½ from 99, according to a market source.

The second-lien loan still has a 1% Libor floor and call protection of 102 in year one and 101 in year two.

As for the $125 million add-on first-lien term loan (B1/B) due 2019, the discount was revised to 99¾ from 991/2, while pricing was left at Libor plus 375 bps with a 1% Libor floor, in line with existing first-lien term loan pricing, the source said.

The add-on first-lien term loan, which will bring the total first-lien term loan size to $537 million, still has 101 soft call protection for six months.

As part of its transaction, the company is also getting a $25 million add-on revolver (B1/B) due 2017, bringing its total revolver size to $125 million.

WP CPP shuts early

Recommitments for WP CPP's bank deal were due at 5 p.m. ET on Wednesday, moved up from the original commitment deadline of Friday, the source continued.

UBS Securities LLC is leading the deal that will be used to repay in full an existing $185 million second-lien term loan at a premium of 103 and to fund a dividend.

WP CPP is a Pomona, Calif.-based manufacturer of highly engineered components and sub-assemblies for the commercial aerospace and defense markets.

Exopack reworked

Exopack downsized its U.S. term loan B to $435 million from $475 million, reduced pricing to Libor plus 425 bps from talk of Libor plus 450 bps to 475 bps and tightened the original issue discount to 99½ from 99, according to a market source.

Meanwhile, the euro term loan was upsized to €175 million from €150 million, pricing was set at Euribor plus 475 bps and the discount was moved to 99½ from 99, the source said. Talk on the euro term loan has been 50 bps wide of the U.S. loan all along, but based on the original U.S. talk, the euro piece would have been in the Euribor plus 500 bps to 525 bps range.

The entire roughly $675 million of 51/2-year term loan B debt (B) still has a 1% floor and 101 soft call protection for one year.

Earlier, the total term loan amount was trimmed from $750 million as the company's bond offering was upsized to $325 million from $250 million.

Recommitments were due at 5 p.m. ET on Wednesday and allocations are targeted for Thursday.

Goldman Sachs & Co. and J.P. Morgan Securities LLC are leading the deal for the Chicago-based manufacturer of plastic packaging products that will be used with the notes to refinance existing debt.

Golden Nugget guidance

Also on the primary front, Golden Nugget held its bank meeting on Wednesday morning, launching its $300 million six-year term loan B and $150 million delayed-draw term loan B with talk of Libor plus 500 bps to 525 bps with a 1% Libor floor, an original issue discount of 99 and call protection of 102 in year one and 101 in year two, according to a market source.

There is no ticking fee on the delayed-draw term loan, the source said.

The company's $550 million credit facility also includes a $100 million five-year revolver.

Commitments are due on Nov. 6, the source added.

Jefferies Finance LLC and Deutsche Bank Securities Inc. are leading the deal that will be used with $300 million of bonds to refinance all of the company's existing debt, to acquire from Pinnacle Entertainment Inc. and complete Golden Nugget Lake Charles casino and hotel resort project, and for related fees.

Golden Nugget is a hotel and casino operator. The company is being spun out of Landry's Inc.

Ascensus comes to market

Ascensus launched with a meeting in the afternoon a $307 million credit facility that is being led by BMO Capital Markets and Golub Capital, according to sources.

The facility consists of a $15 million revolver (B1/B+), a $200 million first-lien term loan (B1/B+) talked at Libor plus 425 bps with a 1.25% Libor floor, an original issue discount of 99 and 101 call protection for one year, and a $92 million second-lien term loan (Caa1/CCC+) talked at Libor plus 825 bps with a 1.25% Libor floor, a discount of 98½ and call protection of 103 in year one, 102 in year two and 101 in year three, sources said.

Proceeds will be used to fund the acquisition of Upromise Investments, Sallie Mae's 529 college savings plan administrator, and to refinance existing debt.

Closing is expected in the fourth quarter, subject to a satisfactory Hart-Scott-Rodino review and other customary conditions.

Ascensus is a Dresher, Pa.-based retirement plan services provider.

Active Network readies

Active Network set a bank meeting for 10 a.m. ET on Friday to launch a $560 million credit facility that includes a $45 million five-year revolver, a $342.5 million seven-year covenant-light first-lien term loan and a $172.5 million eight-year covenant-light second-lien term loan, a market source said.

By comparison, in filings with the Securities and Exchange Commission, the facility was outlined as $505 million, comprised of a $45 million five-year revolver expected at Libor plus 400 bps with a 50 bps unused fee, a $305 million seven-year first-lien term loan expected at Libor plus 400 bps with a 1% Libor floor and 101 soft call protection for six months, and a $155 million 71/2-year second-lien term loan expected at Libor plus 800 bps with a 1% floor and call protection of 102 in year one and 101 in year two.

Bank of America Merrill Lynch, RBC Capital Markets LLC and BMO Capital Markets Corp. are leading the deal that will be used with equity to fund the buyout of the company by Vista Equity Partners for $14.50 per share in cash, or about $1.05 billion.

Closing is expected by the end of the fourth quarter, subject to a minimum tender condition, expiration of any waiting period under the Hart-Scott-Rodino Antitrust Improvements Act, and financing.

Active Network is a San Diego-based provider of cloud-based activity and participant management services.

Town Sports reveals timing

Town Sports surfaced with plans to host a conference call at 2 p.m. ET on Thursday to launch its previously announced $370 million senior secured credit facility (Ba3/B+), according to a market source.

The facility consists of a $45 million five-year revolver and a $325 million seven-year term loan.

Deutsche Bank Securities Inc. and KeyBanc Capital Markets Inc. are leading the deal that will be used to refinance an existing $50 million revolver due May 11, 2016 and a roughly $315.7 million term loan due May 11, 2018.

Closing is targeted for mid-November.

Town Sports is a New York-based owner and operator of fitness clubs.

Sinclair closes

In other news, Sinclair Television Group Inc. completed its $507.5 million loan deal, consisting of a $57.5 million add-on revolver due April 2018, a $200 million add-on delayed-draw term loan A due April 2018 and a $250 million add-on term loan B due April 2020, according to a news release.

Pricing on the term loan A is Libor plus 225 bps and it was sold at an original issue discount of 991/2, and pricing on the B loan is Libor plus 225 bps with a 0.75% Libor floor and it was sold at a discount of 981/2. The term B includes 101 soft call protection for six months.

During syndication, the term loan B was increased from a revised amount of up to $200 million but decreased from an original amount of $1 billion, the discount firmed at the wide end of the 98½ to 99 talk and plans for the debt to be delayed-draw were terminated.

J.P. Morgan Securities LLC is leading the transaction that will be used with $350 million of senior notes to fund the redemption of $500 million 9¼% senior secured second-lien notes due 2017, to fund acquisitions and for general corporate purposes.

Sinclair is a Hunt Valley, Md., television broadcasting company.

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