Albertson's, Westway Group, Phoenix hit the secondary; RCN Cable, World Kitchen update deals

By Sara Rosenberg

New York, Feb. 26 - Albertson's LLC's credit facility freed up for trading on Tuesday, with its term loan seen above the original issue discount price, and Westway Group Inc. and Phoenix Services (Metals Services LLC) broke too.

Moving to the primary, RCN Cable lifted the size of its term loan B due to strong demand, World Kitchen LLC firmed pricing on its deal at the tight end of revised talk, and Eze Software Group and Commercial Barge Line Co. (American Commercial Lines) revealed guidance with their launches.

Also, Duff & Phelps Corp. nailed down timing on its credit facility and began circulating price talk ahead of the event, a launch date for Salem Communications Corp.'s deal surfaced, and Tronox Ltd., Fox Acquisition Sub LLC and Sirva Inc. came out with new loan plans.

Albertson's starts trading

Albertson's credit facility made its way into the secondary market on Tuesday, with the $1.15 billion term loan B (BB-) quoted at par ½ bid, 101¼ offered, according to a trader.

Pricing on the B loan is Libor plus 450 basis points with a 1.25% 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, the term loan B was upsized from $1.05 billion, pricing was reduced from Libor plus 500 bps, the original issue discount was tightened from 99 and the call protection was shortened from one year.

The company's $2.15 billion credit facility also includes a $1 billion ABL revolver.

Albertson's lead banks

Citigroup Global Markets Inc., Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc. and Barclays are leading Albertson's credit facility that will be used to help fund the acquisition of Albertsons, Acme, Jewel-Osco, Shaw's and Star Market stores from SuperValu Inc.

As a result of the recent term loan upsizing, less borrowing will be used under the ABL revolver for the purchase.

Under the agreement, Albertson's, through its parent company AB Acquisition LLC, is buying the 877 stores from SuperValu for $100 million in cash plus the assumption of about $3.2 billion in debt.

Closing is expected this quarter, subject to customary closing conditions and the completion of financing.

Albertson's is a food and drug retailer that is owned by New York-based Cerberus Capital Management.

Westway hits secondary

Westway Group's credit facility freed up for trading too, with the $270 million term loan quoted at par ½ bid, 101 offered on the break and then it moved up to par ¾ bid, 101¼ offered, according to a trader.

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 991/2, after tightening recently from 99. There is 101 soft call protection for one year.

The company's $300 million credit facility (Ba3/BB-) also includes a $30 million revolver.

RBC Capital Markets is leading the deal that backs the company's already completed buyout by EQT Infrastructure II for $6.70 per share.

Westway is a New Orleans-based provider of storage and related services to owners of bulk liquid products.

Phoenix breaks

Phoenix Services' $25 million first-lien tack-on term loan due June 30, 2017 also started trading, with levels seen at 101 bid, according to a market source.

Pricing on the add-on is Libor plus 650 bps with a 1.25% Libor floor, in line with existing term loan pricing, as the debt will be fungible. The add-on was issued at par 1/2, after tightening from par during syndication, and the debt includes soft call protection of 102 through November 2013 and 101 through November 2014.

Credit Suisse Securities (USA) LLC and Morgan Stanley Senior Funding Inc. are leading the deal that will be used to fund a new contract win.

Phoenix Services is a Kennett Square, Pa.-based provider of steel mill services and a processor of slag and co-products from steel mills and foundries.

RCN ups loan

Over in the primary, RCN Cable increased its term loan B (B1/B) to $808 million from $775 million, while keeping pricing at Libor plus 400 bps with a 1.25% Libor floor and an original issue discount of 99½ and leaving the 101 soft call protection for six months intact, according to a market source.

Recommitments are due at 2 p.m. ET on Wednesday and allocations are targeted to go out on Thursday, the source said.

SunTrust Robinson Humphrey Inc., GE Capital Markets and TD Securities (USA) LLC are leading the deal that will be used to refinance a roughly $555 million term loan B that is priced at Libor plus 400 bps with a 1.25% Libor floor and pay a dividend, which was increased by $33 million due to the upsizing.

Leverage is 4.9 times, up from 4.7 times previously, the source added.

RCN Cable is a broadband services provider.

World Kitchen firms coupon

World Kitchen finalized the spread on its $280 million credit facility (B+) at Libor plus 425 bps, the low end of the revised talk of Libor plus 425 bps to 450 bps and down from initial talk of Libor plus 500 bps to 525 bps, according to a market source.

The facility consists of a $190 million six-year term loan that has a 1.25% Libor floor, a discount of 99 and 101 soft call protection for one year and a $90 million five-year revolver that has no Libor floor and a discount of 991/2.

At the time of the first pricing update, the term loan was upsized from $180 million.

Allocations are expected to go out later this week, the source added.

BMO Capital Markets, SunTrust Robinson Humphrey Inc. and J.P. Morgan Securities LLC are leading the deal that will be used to refinance existing debt and for general corporate purposes.

World Kitchen is a Rosemont, Ill.-based manufacturer and marketer of bakeware, dinnerware, kitchen and household tools, rangetop cookware and cutlery products.

Eze Software guidance

Eze Software Group held a bank meeting on Tuesday to launch its credit facility, and with the event, price talk on its first- and second-lien term loans was announced, according to a market source.

The $335 million seven-year first-lien term loan is talked at Libor plus 375 bps with a 1.25% Libor floor, an original issue discount of 99 to 99½ and 101 soft call protection for one year, the source said.

And, the $170 million eight-year second-lien term loan is talked at Libor plus 775 bps with a 1.25% Libor floor, a discount of 98½ to 99 and call protection of 103 in year one, 102 in year two and 101 in year three, the source continued.

The company's $580 million credit facility also includes a $75 million five-year revolver.

Commitments are due on March 12, the source added.

Eze being acquired

Proceeds from Eze Software's credit facility will be used to help fund TPG's buyout of Eze Castle Software, a provider of global order management and related investment technologies, and RealTick, a multi-broker, cross-asset electronic execution platform, from ConvergEx Group.

Eze Castle Software and RealTickwill then be combined to form Eze Software Group, and following the close of the transaction, Eze Software will acquire Tradar, a supplier of portfolio management and accounting solutions.

Bank of America Merrill Lynch, Morgan Stanley Senior Funding Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co. and Jefferies Finance LLC are leading the credit facility.

Eze Software Group is a provider of investment technology to support the front, middle and back office.

Commercial Barge pricing

Commercial Barge Line released talk of Libor plus 500 bps with a 1.25% Libor floor, an original issue discount of 99 and 101 soft call protection for one year on its $650 million senior secured term loan (B-) that launched during the session, according to a market source.

Commitments are due on March 7, the source said.

Bank of America Merrill Lynch, Goldman Sachs & Co., UBS Investment Bank and Wells Fargo Securities are leading the deal.

With the new term loan, the company expects to increase its asset-based revolving credit facility to $550 million from $475 million, sources said.

Proceeds will be used to repay 10 5/8%/11 3/8% senior PIK toggle notes due 2016 at a redemption price of 105 and 12½% senior secured notes due 2017 at a redemption price of 1061/4, and to fund a $207 million dividend.

Commercial Barge Line is a Jeffersonville, Ind.-based marine transportation and service company.

Duff timing, talk emerges

Duff & Phelps firmed up timing on its $424 million senior secured credit facility, with the scheduling of a bank meeting for 10 a.m. ET in New York on Wednesday, according to a market source.

The facility consists of a $75 million five-year revolver and a $349 million seven-year first-lien covenant-light term loan, and talk on the term loan surfaced at Libor plus 375 bps with a 1.25% Libor floor, an original issue discount of 99½ and 101 soft call protection for one year, the source remarked.

Credit Suisse Securities (USA) LLC, Barclays and RBC Capital Markets are leading the deal that will be used with equity to fund the buyout of the company by the Carlyle Group, Stone Point Capital LLC, Pictet & Cie and Edmond de Rothschild Group for $15.55 per share. The transaction is valued at about $665.5 million.

Closing is expected in the first half of this year, subject to customary conditions, including the receipt of stockholder and regulatory approvals.

Duff & Phelps is a New York-based financial advisory and investment banking firm.

Salem readies deal

Salem Communications set a Thursday launch date for its previously announced up to $325 million senior credit facility on Thursday, according to a market source.

The facility consists of an up to $25 million revolver and an up to $300 million term loan.

Wells Fargo Securities LLC and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to fund a cash tender offer for $213.5 million of the company's 9 5/8% senior secured second-lien notes due 2016.

The tender offer expires on March 22.

Salem Communications is a Camarillo, Calif.-based radio broadcaster, internet content provider, and magazine and book publisher.

Tronox coming soon

Tronox joined the forward calendar, as it plans to hold a bank meeting on Thursday to launch a $1.3 billion senior secured term loan, according to a market source.

Goldman Sachs & Co., UBS Securities LLC, Credit Suisse Securities (USA) LLC and RBC Capital Markets are leading the deal that will be used to refinance existing bank debt and for general corporate purposes and/or potential strategic alternatives.

Closing is expected by the end of this quarter.

Tronox is a producer and marketer of titanium bearing mineral sands and titanium dioxide pigment.

Fox plans add-on

Fox Acquisition scheduled a call for 11 a.m. ET on Thursday to launch a $237 million add-on term loan (B2) due July 2017 that is talked at Libor plus 450 bps to 475 bps with a 1.25% Libor floor, an original issue discount of 99½ to 99¾ and 101 soft call protection through September 2013, according to a market source.

Proceeds from the Deutsche Bank Securities Inc.-led deal will be used to fund a dividend to Oakhill Capital, the source said.

With the add-on, the company is seeking an amendment to its existing credit facility to allow for the new debt and dividend, to provide for a pro forma accordion of $125 million subject to 5.5 times secured leverage and 50 bps MFN, and to permit unlimited asset sales subject to mandatory prepayments.

Lenders are being offered a 10 bps consent fee and will have their term loan spread and floor reset to match the add-on clearing levels. Current term loan pricing is Libor plus 450 bps with a 1% Libor floor.

Commitments are due on March 6 and closing is expected in the week of March 11.

Fox is a Fort Wright, Ky.-based owner and operator of television stations.

Sirva on deck

Sirva will hold a bank meeting on Thursday to launch a $350 million credit facility that is being led by Goldman Sachs & Co. and Bank of America Merrill Lynch, according to a market source.

The facility consists of a $50 million revolver and a $300 million six-year term loan B, the source said.

Sirva, a Westmont, Ill.-based provider of moving and relocation services, will use the new credit facility to refinance existing debt and to fund a payout to preferred equity holders.

Net leverage through the term loan is 4 times, the source added.

CPP nets approval

In other news, Consolidated Precision Products Corp. (WPP CPP Holdings LLC) received lender approval of its repricing amendment, and the deal is expected to allocate on Wednesday, according to a market source.

Under the repricing, the company is cutting the spread on its $415 million first-lien term loan and $100 million revolver to Libor plus 350 bps from Libor plus 450 bps, and the term loan Libor floor is being taken down to 1% from 1.25% currently.

Also, the repriced term loan has 101 soft call protection for six months.

UBS Securities LLC is leading the $515 million deal.

Consolidated Precision Products is a Pomona, Calif.-based manufacturer of highly engineered components and sub-assemblies, supplying the commercial aerospace, military and industrial markets with small- to large-function critical products.

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