North American Bancard, Pregis free up; AES dips; SI, Anchor Glass, Emmis update deals

By Sara Rosenberg

New York, May 15 - North American Bancard (NAB Holdings LLC) and Pregis Corp. North America both saw their credit facilities emerge in the secondary market on Thursday, and AES Corp. traded lower on paydown news.

Over in the primary. The SI Organization Inc. increased the size of its first-lien term loan, decreased the size of its second-lien term loan and reduced pricing on both tranches, and Anchor Glass Container Corp. trimmed the spread on its term loan for a second time.

Additionally, Emmis Communications Corp. firmed pricing on its term loan at the high end of revised talk and the original issue discount at the midpoint of revised guidance, Encompass Digital Media Inc., Post Holdings Inc., Otter Products LLC and B&G Foods Inc. launched their deals to investors, and ION Trading Technologies Sarl and Blue Bird Body Co. surfaced with new loan plans.

NAB reworked, breaks

North American Bancard trimmed pricing on its $200 million seven-year first-lien term loan to Libor plus 375 basis points from talk of Libor plus 400 bps to 425 bps and moved the original issue discount to 99¼ from 99, according to a market source.

As before, the term loan has a 1% Libor floor and 101 soft call protection for one year.

In addition, the company upsized its revolver to $25 million from $20 million, the source remarked.

Recommitments were due at 1 p.m. ET on Thursday and by the afternoon, the deal had freed up for trading with the term loan quoted at par bid, par ½ offered, a trader added.

Credit Suisse Securities (USA) LLC and BMO Capital Markets are leading the now $225 million credit facility (B1/BB) that will be used to refinance existing debt and fund a dividend.

North American Bancard is a Troy, Mich.-based merchant acquirer for payment processing.

Pregis starts trading

Pregis' credit facility broke for trading as well, with the $230 million first-lien covenant-light term loan seen at 99¾ bid, par ¾ offered, a market source said.

Pricing on the term loan is Libor plus 400 bps with a 1% Libor floor and it was sold at an original issue discount of 99. There is 101 soft call protection for one year.

Recently, pricing on the term loan firmed at the high end of the Libor plus 375 bps to 400 bps talk and the call protection was extended from six months.

The company's $280 million credit facility (B2/B) also includes a $50 million revolver.

Goldman Sachs Bank USA and Barclays are leading the deal that will be used to help fund the buyout of the company by Olympus Partners from AEA Investors LLC.

Closing is expected this month.

Pregis is a Deerfield, Ill.-based protective packaging materials and systems manufacturer.

AES softens

In more trading happenings, AES' term loan B dropped to par bid, par ½ offered from par 5/8 bid, 101 1/8 offered as the company announced plans to repay loan borrowings with proceeds from a senior unsecured floating-rate notes offering, according to a trader.

The quick-to-market bond deal is sized at $775 million after being increased from $500 million.

As of March 31, the Arlington, Va.-based power company had outstanding $797 million in term loans due June 1, 2018 that have an effective interest rate of 5.2%.

SI Organization restructures

Back in the primary, SI Organization lifted its 51/2-year first-lien term loan (Ba3/B+) to $378 million from a revised amount of $350 million, but the tranche is still smaller than its initially planned $490 million size, according to a market source, who said pricing was cut to Libor plus 475 bps from Libor plus 500 bps.

Meanwhile, the six-year second-lien term loan (B3/CCC+) was reduced to $115 million from $140 million and the spread was trimmed to Libor plus 800 bps from Libor plus 850 bps, the source remarked.

As before, the first-lien term loan has a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, and the second-lien term loan has a 1% Libor floor, a discount of 99 and call protection of 102 in year one and 101 in year two.

The company's now $593 million credit facility also includes a $50 million five-year revolver (Ba3/B+), and a $50 million 51/2-year final maturity delayed-draw first-lien term loan (Ba3/B+).

SI delayed-draw fee

SI Organization's delayed-draw term loan has a ticking fee of 75 bps payable on the undrawn portion from closing until day 90, 475 bps from day 91 through 180, and thereafter it will be fully funded in an escrow account through July 2015, the source continued.

Previously, in syndication, the maturity on the first-lien term loan and the delayed-draw term loan was shortened from six years and the second-lien term loan was added to the capital structure.

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

UBS Securities LLC and RBC Capital Markets are leading the deal that will be used to help fund the purchase of QinetiQ North America Services and Solutions Group and refinance existing bank debt.

Closing is expected in the second quarter, subject to customary conditions, including regulatory approvals.

SI is a Chantilly, Va.-based provider of analytical and technical information services for the U.S. government. QinetiQ is a Reston, Va.-based provider of technology and responsive services focusing on the U.S. government.

Anchor Glass flexes again

Anchor Glass reduced pricing on its $335 million seven-year first-lien term loan (B3/BB-) for a second time, moving the spread to Libor plus 325 bps from revised talk of Libor plus 350 bps and initial talk of Libor plus 375 bps to 400 bps, a market source said.

The term loan continues to have a 1% Libor floor, an original issue discount of 99¾ and 101 soft call protection for six months. However, earlier in syndication, the discount on the term loan was tightened from 991/2.

The company's $435 million credit facility also includes a $100 million five-year ABL revolver.

Recommitments were due at 4 p.m. ET on Thursday, the source added.

UBS Securities LLC and RBC Capital Markets are leading the deal that will be used to help fund KPS Capital Partners LP's buyout of the company from Ardagh Holdings USA Inc.

Closing is expected this quarter or next quarter, subject to customary conditions and regulatory approvals.

Anchor Glass is a Tampa, Fla.-based manufacturer of glass packaging products for the beer, liquor, food, beverage and ready-to-drink end markets.

Emmis firms pricing

Emmis Communications set pricing on its $185 million seven-year senior secured term loan at Libor plus 475 bps, the high end of revised talk of Libor plus 450 bps to 475 bps and up from initial talk of Libor plus 400 bps, and the original issue discount at 983/4, the middle of revised talk of 98½ to 99 and wide of initial talk of 99, according to a market source.

The term loan still has a 1% Libor floor and 101 soft call protection for six months.

At the time of the first pricing update, a leverage covenant was added to the originally covenant-light loan.

J.P. Morgan Securities LLC is leading the $205 million credit facility (B2/B+), which also includes a $20 million five-year revolver, and will be used to finance the purchase of two radio stations for $131 million, to refinance existing debt, to provide liquidity for working capital and for general corporate purposes.

Pro forma for the full funding of the term loan, total leverage will be 4.58 times based on pro forma expected EBITDA of $40.4 million for the fiscal year ending Feb. 28, 2015.

Emmis is an Indianapolis-based diversified media company, principally focused on radio broadcasting.

Encompass sets talk

Also on the new deal front, Encompass Digital Media held its bank meeting on Thursday, launching its $265 million seven-year first-lien term loan (B2/B+) with talk of Libor plus 450 bps with a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months, a market source said.

In addition, the $75 million eight-year second-lien term loan (Caa2/CCC+) was launched at Libor plus 750 bps with a 1% Libor floor, a discount of 99, and call protection of 103 in year one and 101 in year two, the source remarked.

The company's $370 million credit facility includes a $30 million five-year revolver (B2/B+) as well.

Commitments are due on May 29, the source added.

BMO Capital Markets and Macquarie Capital are leading the deal that will be used to refinance existing debt and prefund payments related to a 2012 acquisition.

Encompass is a provider of mission-critical media capture, management and distribution services.

Post guidance emerges

Post Holdings came out with talk of Libor plus 325 bps with a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months on its $635 million seven-year senior secured term loan that launched with a bank meeting in the morning, according to a market source.

Lead banks, Barclays, Credit Suisse Securities (USA) LLC, Wells Fargo Securities LLC, Goldman Sachs Bank USA, BMO Capital Markets and Nomura, are asking for commitments by May 28.

Proceeds will help fund the $2.45 billion purchase of Michael Foods, a Minnetonka, Minn.-based food products company, from GS Capital Partners, Thomas H. Lee Partners and other owners.

Other funds for the transaction are expected to come from about $630 million of newly issued senior unsecured debt securities and around $500 million of newly issued common and/or equity-linked securities.

Senior secured leverage is 1.1 times and net total leverage is 6.2 times.

Post, a St. Louis-based consumer packaged goods holding company, expects the acquisition to close this quarter, subject to the expiration of waiting periods required under antitrust laws.

Otter Products launches

Otter Products launched during the session its $625 million six-year 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 one year, a market source remarked.

The company's $725 million credit facility (B1) also includes a $100 million revolver.

Commitments are due on May 29, the source added.

Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, SunTrust Robinson Humphrey Inc. and KeyBanc Capital Markets are leading the deal that will be used to refinance existing debt and to fund a dividend.

Otter Products is a Fort Collins, Colo.-based provider of protective cases for mobile devices.

B&G Foods holds call

B&G Foods hosted a lender call in the morning to launch an $800 million five-year credit facility (Ba1/BB+), comprised of a $500 million revolver and a $300 million term loan A, according to a market source.

Pricing is based on a leverage grid and can range from Libor plus 150 bps to 200 bps, with opening pricing expected at Libor plus 200 bps, the source said, adding that the revolver has a 50 bps unused fee.

Credit Suisse Securities (USA) LLC, Barclays, RBC Capital Markets, Bank of America Merrill Lynch, Deutsche Bank Securities Inc., TD Securities (USA) LLC, RBS Citizens and Rabobank are leading the deal that will be used to refinance an existing senior secured credit facility, under which there is a $122 million term loan A and about $203 million of revolver borrowings outstanding, and for general corporate purposes.

B&G Foods is a Parsippany, N.J.-based manufacturer, seller and distributor of shelf-stable foods.

ION readies deal

ION Trading is set to hold a bank meeting at 11:30 a.m. UK time in London on Friday and will hold a U.S. investor call on Tuesday to launch a new roughly $1.15 billion credit facility, according to a market source.

The facility consists of a $40 million five-year revolver, a $400 million six-year first-lien term loan, a €300 million six-year first-lien term loan and a $300 million seven-year second-lien term loan, the source said.

UBS AG is leading the deal that will be used to refinance existing debt.

ION Trading is a provider of trading software.

Blue Bird coming soon

Blue Bird Body will hold a bank meeting at 10 a.m. ET on Tuesday to launch a $300 million credit facility, according to a market source.

The facility consists of a $50 million five-year revolver and a $250 million six-year first-lien term loan, the source said.

Societe Generale is the left lead arranger on the deal that will be used to refinance existing debt and fund a dividend.

Total net leverage is 3.03 times and total leverage is 3.77 times, the source added.

Blue Bird is a Fort Valley, Ga.-based manufacturer of school buses and a provider of aftermarket parts and services.

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