Milacron breaks; Heinz, Vantage Drilling, GEO Group, Sirva, Edwards Group revise deals

By Sara Rosenberg

New York, March 21 - Milacron LLC's term loan B hit the secondary market during Thursday's session, with levels seen above its original issue discount price, and a new Bid-Wanted-In-Competition emerged.

Moving to the primary, H.J. Heinz Co. increased the size of its U.S. term loans while eliminating plans to raise euro and sterling term loans, and Vantage Drilling Co. downsized its term loan B as it decided to enlarge its bond offering.

Also, GEO Group Inc. tightened the spread, floor and offer price on its term loan B, Sirva Inc. lifted the coupon on its term B, set the original issue discount at the wide end of guidance and sweetened the call protection, and Edwards Group added a step-down in pricing to its term loan.

Furthermore, Cooper Gay Swett & Crawford Ltd., Hub International Holdings and Rice Drilling B LLC disclosed talk with launch, Evertec Group LLC came out with original issue discount guidance, and Livingston International Inc. released details on timing and structure for its credit facility.

Milacron starts trading

Milacron's $245 million seven-year term loan B (B1/B) freed up on Thursday afternoon, with levels quoted at par ¼ bid, according to a trader.

Pricing on the loan is Libor plus 325 basis points with a 1% Libor floor, and it was sold at an original issue discount of 991/2. There is 101 soft call protection for one year.

Recently, the Libor floor was cut from 1.25%, the original issue discount was tightened from 99 and the MFN sunset on the term loan B incremental was removed.

J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Barclays, Credit Suisse Securities (USA) LLC and RBC Capital Markets are leading the deal.

Proceeds, along with $465 million of senior notes, will be used to fund the acquisition of Mold-Masters for an enterprise value of C$975 million from 3i Group plc.

Closing is expected by April, subject to certain regulatory approvals.

Milacron is a Cincinnati-based provider of plastics processing technologies and industrial fluids. Mold-Masters is a Georgetown, Canada-based designer and manufacturer of hot runner systems, temperature controllers and auxiliary equipment for the plastic industry.

BWIC surfaces

In more secondary news, a $201.5 million Bid-Wanted-In-Competition was announced, with market players asked to place their bids by 11 a.m. ET on Monday, according to a trader.

Some of the larger pieces of debt offered are Allison Transmission Inc.'s term loan B-2, Bausch & Lomb Inc.'s delayed-draw term loan, Berry Plastics Holding Corp.'s term loan C, CDW Corp.'s non-extended term loan, DaVita HealthCare Partners Inc.'s term loan B-2, First Data Corp.'s 2018 dollar term loan, Harland Clarke Holdings Corp. term loan B-1, Univision Communications Inc.'s term loan C-1 and US Airways Group Inc.'s loan.

The portfolio includes about 66 issuers, the trader added.

Heinz restructures

Over in the primary, Heinz lifted the total size of its U.S. term loan B-1 and B-2 debt to $10.5 billion from $8.5 billion and removed from its capital structure $1.4 billion equivalent of euro denominated six-year term loan B-1 and seven-year term loan B-2 debt and up to $600 million in sterling-denominated six-year term loan B-1 and seven-year term loan B-2, according to sources.

Price talk on the U.S. term loans is still Libor plus 275 bps to 300 bps with a 1% Libor floor and an original issue discount of 991/2. The B-1 loan has 101 soft call protection for one year and the term loan B-2 has soft call protection of 101 for two years.

The cancelled euro and sterling term loans had been talked at Libor plus 300 bps to 325 bps with a 1% Libor floor and an original issue discount of 991/2, and had the same call protection as the U.S. term loans.

Commitments for the company's $12 billion senior secured credit facility (Ba2/BB/BB+), which also includes a $1.5 billion revolver, are due at noon ET on Friday.

Heinz being acquired

Proceeds from Heinz's credit facility, $2.1 billion in senior secured second-lien notes and $16.24 billion of equity will be used to fund its buyout by Berkshire Hathaway and 3G Capital for $72.50 in cash per share. The transaction is valued at about $28 billion, including the assumption of debt.

J.P. Morgan Securities LLC, Well Fargo Securities LLC, Barclays and Citigroup Global Markets Inc. are leading the credit facility.

Closing is expected in the third quarter, subject to shareholder approval and regulatory approvals.

Heinz is a Pittsburgh-based food product company.

Vantage downsizes

Vantage cuts its six-year term loan B (B3) to $350 million from $525 million and kept talk at Libor plus 450 bps with a 1.25% Libor floor, an original issue discount of 98 to 99 and call protection of non-callable for two years, according to a market source.

On the flip side, the company lifted its senior secured notes deal to $775 million from $600 million, the source said.

Commitments for the term loan are due by 2 p.m. ET on Friday.

The company's now $550 million credit facility also includes a $200 million amended and restated revolving credit facility due April 25, 2017 that is priced at Libor plus 350 bps.

Citigroup Global Markets Inc., Bank of America Merrill Lynch, Deutsche Bank Securities Inc., Jefferies Finance LLC and RBC Capital Markets LLC are leading the term loan, and Royal Bank of Canada is the administrative agent on the revolver.

Proceeds from the new debt will be used by the Houston-based offshore drilling contractor to refinance existing 11.5% senior secured notes due 2015.

GEO updates pricing

GEO Group cut pricing on its $300 million term loan B to Libor plus 250 bps from Libor plus 300 bps, slashed the Libor floor to 0.75% from 1% and revised the offer price to par from 991/2, according to a market source. The 101 soft call protection for six months was left intact.

Recommitments are due at 10 a.m. ET on Friday, the source said.

The company's $1 billion credit facility (Ba3/BB) also provides for a $700 million revolver.

BNP Paribas Securities Corp. is leading the deal that will be used to refinance existing debt.

GEO Group is a Boca Raton, Fla.-based provider of correctional, detention and community reentry services.

Sirva revises B loan

Sirva flexed pricing on its $300 million six-year term loan B to Libor plus 625 basis points from Libor plus 525 bps and set the original issue discount at 98, the high end of the 98 to 99 talk, a market source said. The 1.25% Libor floor was unchanged.

Also, the loan is now non-callable for 18 months, then at 102½ for a year and at 101 for a year, instead of having 101 soft call protection for one year, the source remarked.

The company's $350 million credit facility includes a $50 million ABL revolver.

Goldman Sachs & Co. and Bank of America Merrill Lynch are leading the deal that will be used to refinance existing debt and fund a payout to preferred equity holders.

Net leverage through the term loan is 4 times.

Sirva is a Westmont, Ill.-based provider of moving and relocation services.

Edwards adds step

Edwards Group added a step-down to its $560 million seven-year term loan (B2), under which pricing will drop to Libor plus 325 bps if leverage is less than 1¾ times, according to a market source.

Opening pricing on the loan is still Libor plus 350 bps with a 1.25% Libor floor. The debt is offered at an original issue discount of 99 and has 101 soft call protection for one year.

The company's $650 million credit facility also includes a $90 million super-priority revolver (Ba1).

Deutsche Bank Securities Inc., Barclays, Goldman Sachs & Co. and RBC Capital Markets are the lead banks on the deal.

Proceeds will be used to refinance existing debt.

Edwards Group is a Crawley, England-based technology business and a supplier of vacuum and abatement products for the manufacture of microelectronics devices.

Cooper Gay guidance

In more new deal happenings, Cooper Gay Swett & Crawford held its bank meeting on Thursday morning, and in connection with the event, price talk on the first-and second-lien term loans was released, according to a market source.

The $280 million seven-year first-lien term loan (B) is talked at Libor plus 400 bps to 425 bps with a 1.25% Libor floor, a discount of 99 and 101 soft call protection for one year, the source said.

And, the $145 million 71/2-year second-lien term loan (CCC+) is talked at Libor plus 725 bps to 750 bps with a 1.25% Libor floor, a discount of 98 and hard call protection of 103 in year one, 102 in year two and 101 in year three, the source continued.

Commitments for the $500 million senior secured credit facility, which also includes a $75 million five-year revolver (B), are due at 5 p.m. ET on April 4.

Morgan Stanley Senior Funding Inc., J.P. Morgan Securities LLC, RBC Capital Markets and Wells Fargo Securities LLC are leading the deal that will repay existing Swett & Crawford term loans.

Cooper Gay Swett & Crawford is a London-based wholesale & reinsurance broker.

Hub comes to market

Hub International hosted a call in the afternoon to launch a $1,125,000,000 term loan due June 13, 2017 that is talked at Libor plus 375 bps with no Libor floor, a par offer price and 101 soft call protection for six months, according to a market source.

This transaction is repricing the existing $828 million term loan from Libor plus 450 bps with no Libor floor, and will raise $297 million of incremental debt for the repayment of a $168 million term loan due December 2017, $100 million in borrowings under a U.S. revolver and $25 million of preferred equity owned by legacy third party shareholders.

Commitments are due at 5 p.m. ET on Wednesday and closing will occur on April 24 upon expiration of the existing 101 soft call protection, the source added.

Morgan Stanley Senior Funding Inc., Bank of America Merrill Lynch and RBC Capital Markets are leading the deal for the Chicago-based insurance company.

Rice Drilling reveals talk

Rice Drilling set talk of Libor plus 725 bps to 750 bps with a 1.25% Libor floor, an original issue discount of 98 to 99 and hard call protection of 102 in year one and 101 in year two on its $300 million 51/2-year senior secured second-lien term loan that launched during the session, according to a market source.

Commitments are due at 5 p.m. ET on April 4, the source said.

Barclays is leading the deal that will be used to repay existing debt, to redeem convertibles and for general corporate purposes, including capital expenditures and acquisitions.

Leverage is 4 times net debt first quarter 2013 annualized EBITDA, the source added.

Rice Drilling is a Canonsburg, Pa.-based natural gas exploration and production company.

Evertec discloses discount

Evertec Group launched its $400 million seven-year term loan B with original issue discount talk of 99¾ and 101 soft call protection for six months, according to a market source.

Price talk on the loan came out prior to launch at Libor plus 300 bps with a 1% Libor floor.

The company's $800 million senior secured credit facility (B1/B+) also includes a $100 million five-year revolver and a $300 million five-year term loan A.

Lead bank, J.P. Morgan Securities LLC, is asking for commitments by April 4, the source added.

Proceeds, along with cash on hand, will be used to refinance an existing credit facility and 11% senior notes due 2018 and for general corporate purposes.

Closing on the credit facility is subject to completion of an initial public offering.

Evertec is a Puerto Rico-based full-service transaction processing business in Latin America and the Caribbean.

Neenah sets deadline

Neenah Enterprises Inc. held its bank meeting for a $250 million credit facility, and investors are being told that they have until April 4 to place their orders, according to a market source.

The facility consists of a $100 million five-year ABL revolver and a $150 million 31/2-year term loan B.

Price talk on the term loan B came out a few days ago at Libor plus 500 bps with a 1.25% Libor floor and an original issue discount of 99.

GE Capital Markets is leading the deal, and Wells Fargo Securities LLC signed on as a co-lead on the revolver.

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

Neenah Enterprises is a Neenah, Wis.-based manufacturer and marketer of iron castings and steel forgings.

Vertafore launches

Vertafore Inc. launched its $695 million credit facility with a call as planned, and revealed a Wednesday commitment deadline for the deal, according to a market source.

The facility consists of a $75 million revolver due April 2018, and a $620 million first-lien covenant-light term loan due October 2019 talked at Libor plus 325 bps to 350 bps with a 1% Libor floor, an original issue discount of 99½ and 101 repricing protection for one year.

Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch, Barclays and RBC Capital Markets are leading the deal that will be used to reprice and extend the company's existing credit facility. Currently, the company's term loan is priced at Libor plus 375 bps with a 1.5% Libor floor.

Vertafore is a Bothell, Wash.-based provider of software and information to the insurance distribution channel.

Belfor hosts meeting

Belfor USA Group Inc. held its bank meeting to launch a $520 million credit facility, and set the commitment deadline for April 4, according to a market source.

The facility consists of a $170 million five-year revolver, a $150 million five-year term loan A and a $200 million six-year term loan B.

As previously reported, the term loan B is talked at Libor plus 275 bps with a 1% Libor floor, an original issue discount of 99¼ to 99½ and 101 soft call protection for one year.

J.P. Morgan Securities LLC is the lead bank on the deal that will be used to refinance existing debt.

Belfor is a damage recovery and restoration provider based in Birmingham, Mich.

Livingston details emerge

Livingston International revealed that its proposed credit facility is sized at $535 million, and a bank meeting for U.S. investors will take place in New York on Wednesday, a market source said, adding that a meeting for Canadian lenders took place on Thursday in Toronto.

The facility consists of a $125 million five-year revolver (B1/B), a $300 million six-year first-lien term loan (B1/B) and a $110 million seven-year second-lien term loan (Caa1/CCC+), the source continued.

As previously reported, proceeds will be used to refinance existing bank debt and fund a tender offer that expires on April 4 for the company's 10 1/8% senior notes due Nov. 9, 2015.

RBC Capital Markets and Morgan Stanley Senior Funding Inc. are leading the deal.

Livingston is a Toronto-based provider of consulting and trade management services and international freight forwarding.

SuperValu closes

In other news, SuperValu Inc. completed its $2.5 billion credit facility that includes a $1 billion asset-based revolver (NA/NA/BB-) due March 2018 and a $1.5 billion covenant-light term loan (B1/NA/BB-) due March 2019, according to a news release.

The revolver is priced at Libor plus 200 bps with a 37.5 bps unused fee. Pricing on the term loan is Libor plus 500 bps with a 1.25% Libor floor, and it was sold at an original issue discount of 99. There is 101 soft call protection for one year.

During syndication, pricing on the term loan firmed at the low end of revised talk of Libor plus 500 bps to 525 bps and tight of initial talk of Libor plus 575 bps, and the discount was revised from 981/2. Also, the asset-based revolver was upsized from $900 million.

Wells Fargo Securities LLC, U.S. Bank and Rabobank led the revolver, and Goldman Sachs & Co., Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc., Bank of America Merrill Lynch and Barclays led the term loan.

Proceeds were used by the Eden Prairie, Minn.-based food wholesaler to refinance a $1.65 billion asset-based revolver, an $846 million term loan and $490 million of 7½% bonds.

Albertson's wraps

Albertson's LLC closed on its purchase of Albertsons, Acme, Jewel-Osco, Shaw's and Star Market stores from SuperValu Inc. for $3.3 billion, including $100 million in cash and $3.2 billion in debt assumption, a news release said.

For the transaction, Albertson's got a new $2.15 billion credit facility that consists of a $1 billion ABL revolver and a $1.15 billion term loan B (BB-).

Pricing on the B loan is Libor plus 450 bps 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 B was upsized from $1.05 billion so that less ABL borrowings would be drawn for the acquisition, pricing was reduced from Libor plus 500 bps, the discount was tightened from 99 and the call protection was shortened from one year.

Citigroup Global Markets Inc., Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc. and Barclays led the deal for the food and drug retailer.

NBTY completes refi

NBTY Inc. closed on its $1,508,000,000 covenant-light senior secured term loan (Ba3/BB-) due Oct. 1, 2017, according to an 8-K filed with the Securities and Exchange Commission.

Pricing on the term loan is Libor plus 250 bps with a 1% Libor floor, and it was issued at par. There is 101 soft call protection for one year.

Barclays, Bank of America Merrill Lynch and Credit Suisse Securities (USA) LLC led the deal that was used to refinance an existing term loan priced at Libor plus 325 bps with a 1% Libor floor.

NBTY is a Ronkonkoma, N.Y.-based manufacturer, marketer, distributor and retailer of vitamins and nutritional supplements.

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