Aspen Dental, Telx, Ignite break; Rock-Tenn, First Data revise deals; Spitzer resurfaces

By Sara Rosenberg

New York, March 17 - Aspen Dental Management Inc. and Telx Group Inc. saw their term loans allocate and free up for trading on Thursday after getting done at initial terms, and Ignite Restaurant Group broke as well.

In other news, Rock-Tenn Co. revised tranching on its credit facility, First Data Corp. raised the spread on its proposed extended term loan and revolver borrowings, and Spitzer Industries Inc. revamped its credit facility so that it has a smaller term loan at higher pricing and has brought the deal back to market.

Also, Belfor released talk on its term loan B with launch, GTA TeleGuam firmed up pricing on its first-lien term loan at the tight end of guidance and J. Jill began circulating guidance on its upcoming deal.

Additionally, the trend of pulled deals due to "market conditions" continued into Thursday, with Six3 Systems Inc., TASC Inc., Chemtura Corp., CRC Health Corp. and ConvaTec Healthcare being the latest victims.

Aspen hits secondary

Aspen Dental Management's $195 million term loan due Oct. 6, 2016 started trading on Thursday, with levels quoted at par bid, 101 offered, according to a trader.

Pricing on the term loan is Libor plus 450 basis points with a 1.5% Libor floor, and it was sold at par. There is 101 soft call protection until Oct. 6, 2011.

UBS Investment Bank is the lead bank on the deal that is being used to reprice the company's existing $195 million term loan obtained in October for its buyout by Leonard Green & Partners LP.

Pricing on the 2010 loan is Libor plus 600 bps with a 1.75% Libor floor, and it was sold at a discount of 98. There is 101 soft call protection for one year, which lenders received with the repricing.

The trader said that most existing lenders rolled into the new deal and one new lender came in for a good amount as well.

Aspen Dental is an East Syracuse, N.Y.-based provider of denture and dental care services.

Telx frees up

Also making its way into the secondary market was Telx Group's $200 million senior secured term loan due 2015 (B1/B-), with levels quoted at par bid, 101 offered, according to a market source.

Pricing on the loan is Libor plus 500 bps with a 1.5% Libor floor, and it was sold at par.

Proceeds are being used to refinance a $150 million term loan obtained in June 2010 for a refinancing at pricing of Libor plus 600 bps with a 2% Libor floor. The loan was sold at an original issue discount of 98 and includes call protection of 102 in year one and 101 in year two.

And, the $50 million of incremental proceeds are being used for general corporate purposes, including funding the company's data center expansion plans.

Goldman Sachs and SunTrust are the lead banks on the deal, and ING is a syndication agent.

Telx is a New York-based provider of network neutral, global interconnection and colocation services.

Ignite Restaurant breaks

Ignite Restaurant Group's senior secured credit facility was another deal to free up, with quotes on the $120 million term loan seen at 98½ bid, in line with its original issue discount price, according to a trader.

Pricing on the term loan, as well as on a $25 million revolver, is Libor plus 475 bps with a 1.5% Libor floor.

During syndication, the revolver was downsized from $30 million.

GE Capital and Golub Capital are leading the $145 million deal that is being used to refinance existing debt and fund a dividend.

Ignite Restaurant Group is a Houston-based portfolio of restaurant concepts, including Joe's Crab Shack and Brick House Tavern & Tap.

Rock-Tenn shifts funds

Over in the primary market, Rock-Tenn downsized its six-year term loan B to $750 million from $1.25 billion, while leaving pricing at Libor plus 275 bps with a 0.75% Libor floor and a par offer price, according to a market source.

On the flip side, the five-year revolver was upsized to $1.475 billion from $1.2 billion and the five-year term loan A was upsized to $1.475 billion from $1.25 billion, with pricing staying at Libor plus 200 bps with no Libor floor, the source said.

Recommitments are due at 5 p.m. ET on Friday, and allocations are expected to go out next week.

Wells Fargo, SunTrust, Rabobank, Bank of America Merrill Lynch and J.P. Morgan are the joint bookrunners on the $3.7 billion senior credit facility.

Also revised was the company's new securitization facility, which was upsized to $600 million from $500 million.

Rock-Tenn buying Smurfit

Proceeds from Rock-Tenn's credit facility will be used to refinance some debt and help fund the acquisition of Smurfit-Stone Container Corp. in a transaction valued at $3.5 billion, consisting of $1.8 billion of cash and the issuance of 30.9 million shares of common stock.

Closing on the transaction is expected in the second quarter, subject to customary conditions, regulatory approvals and approval by both Rock-Tenn and Smurfit-Stone stockholders.

Rock-Tenn is a Norcross, Ga.-based manufacturer of paperboard, containerboard and consumer and corrugated packaging. Smurfit-Stone is a Chicago-based containerboard and corrugated packaging producer, and a paper recycler.

First Data flexes

First Data is now offering its extended term loan and revolver debt at pricing of Libor plus 400 bps, up from Libor plus 375 bps, according to a market source. Pricing on the non-extended debt is Libor plus 275 bps.

The extended revolver will still have a 75 bps unused fee.

Under the amendment and extension proposal, the company is looking to convert no less than $3 billion of its term loans into new dollar- and euro-denominated term loan tranches due on March 24, 2018 and push out the maturity on all or a portion of its revolver to Sept. 24, 2016.

The revolver maturity would be accelerated to June 24, 2015 if, on that date, the aggregate outstanding principal amount of the company's 9 7/8% senior notes due 2015 and 10.55% senior PIK notes due 2015 exceeds $750 million. The maturity can also be accelerated to Dec. 31, 2015 if, on that date, the company has more than $750 million of its 11¼% senior subordinated notes due 2016 outstanding.

First Data plans notes

As a condition to the amendment, First Data must issue at least $750 million of senior secured notes and use those proceeds to repay term loan borrowings. The company has 90 days from the completion of the amendment to close on the notes offering.

Also, immediately after the effectiveness of the amendment, the company plans to reduce revolver commitments that are subject to the extension in an amount equal to at least 20%.

Credit Suisse, Citigroup, Deutsche Bank and HSBC are the lead banks on the amend and extend deal.

Signature pages were due at 5 p.m. ET on Thursday.

First Data is a Greenwood Village, Colo., provider of electronic commerce and payment services.

Spitzer returns

Spitzer Industries, a Houston-based fabricator of specialized equipment and systems, pressure vessels and other custom weldments, recently pulled a $145 million credit facility from market, but the deal is back with a reduced size of $95 million and increased pricing, according to a market source.

The company is now looking to get a $70 million term loan led by Credit Suisse that is talked at Libor plus 525 bps with a 1.5% Libor floor, an original issue discount of 98½ and 101 soft call protection for one year and a $25 million revolver that is being provided by Amegy, the source said.

By comparison, under the original deal that was launched on Feb. 10, the company was shopping a $120 million term loan talked at Libor plus 425 bps with a 1.5% floor, a discount of 99½ and 101 soft call protection for one year, and a $25 million revolver.

Proceeds will be used to refinance debt and fund a dividend, which was reduced due to the term loan downsizing.

Belfor talk emerges

Belfor launched its $260 million term loan B on Thursday with price talk of Libor plus 325 bps to 350 bps with a 1.5% Libor floor, an original issue discount of 99 to 99½ and 101 soft call protection for one year, according to a market source.

Prior to the launch, there were whispers that the talk would be in the Libor plus 325 bps to 350 bps area, but no other details were available.

The company's $460 million credit facility also includes a $125 million revolver and a $75 million term loan A.

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

Belfor is a disaster recovery and property restoration company.

TeleGuam sets pricing

GTA TeleGuam firmed pricing on its $107 million first-lien term loan at Libor plus 400 bps with a 1.5% Libor floor and an original issue discount of 99 1/2, the low end of talk that was Libor plus 400 bps to 425 bps with a discount of 99 to 991/2, according to a market source.

Lenders had been told early on to expect pricing to end up at the tight end of guidance due to strong demand.

The company's $146 million credit facility also includes a $10 million revolver and a $29 million second-lien term loan priced in line with initial talk at Libor plus 800 bps with a 1.75% Libor floor, an original issue discount of 99 and call protection of 102 in year one and 101 in year two.

The facility is currently oversubscribed, the source said.

TeleGuam being acquired

Proceeds from GTA TeleGuam's credit facility will be used to help fund the buyout of the company by Advantage Partners from Shamrock Capital Advisors.

BNP Paribas is the lead bank on the deal.

Allocations on the deal are expected to go out next week at the earliest, the source added.

GTA TeleGuam is a Tamuning, Guam-based provider of complete communications services on Guam, including local and long-distance telephone service, 3G wireless, DSL internet access and advanced digital television, or IPTV.

J. Jill floats talk

J. Jill price talk started making its way around the market as the company is preparing to hold a bank meeting on Friday to kick off syndication on its proposed $160 million senior secured credit facility, according to a market source.

The $40 million five-year ABL revolver is talked with pricing that can range from Libor plus 225 bps to 275 bps based on a grid, and the $120 million six-year term loan is talked at Libor plus 550 bps with a 1.5% Libor floor and an original issue discount of 98, the source said.

Credit Suisse is the lead bank on the deal that will be used to refinance existing bank debt and help fund Arcapita Bank BSC's acquisition of a majority position in the company from Golden Gate Capital.

J. Jill is a Quincy, Mass.-based multi-channel retailer of women's apparel.

Six3 cancels facility plans

Moving to a subject that has become all too common lately, Six3 Systems withdrew its $170 million credit facility (B3/B) for the same reason that so many have done so - market conditions, according to a market source.

The facility consisted of a $30 million revolver, and a $140 million term loan talked at Libor plus 400 bps with a 1.5% Libor floor, an original issue discount of 99 and 101 soft call protection for one year.

Bank of America Merrill Lynch and SunTrust were the lead banks on the deal that was going to be used to refinance existing debt and for general corporate purposes.

Six3 is a McLean, Va.-based provider of strategic and differentiated solutions and services to support the missions of customers in the U.S. national security and defense intelligence communities.

TASC pulls deal

TASC, a Chantilly, Va.-based provider of advanced systems engineering and technical assistance to the defense, intelligence, federal and homeland security markets, also removed its credit facility from market as the company decided to wait for better conditions to complete its refinancing, according to an informed source.

The $675 million deal (Ba2/BB) consisted of a $100 million revolver, and a $575 million term B talked at Libor plus 325 bps with a 1.25% floor, a discount of 99½ and 101 soft call for six months.

Barclays, Deutsche Bank, KKR and RBC were acting as the lead banks on the deal that would have refinanced an originally sized $690 million senior secured credit facility obtained in December 2009 for the company's buyout by General Atlantic LLC and Kohlberg Kravis Roberts & Co.

At close, the 2009 facility consisted of a $100 million revolver and a $200 million term A, both priced at Libor plus 350 bps, and a $390 million term B priced at Libor plus 375 bps. The facility has a 2% Libor floor, and the A loan and the B loan were sold at a discount of 99, while the revolver was sold at 98.

Chemtura withdraws B loan

Yet another company to terminate its refinancing plans was Chemtura, as it pulled a $395 million term loan B from market that was being talked Libor plus 300 bps with a 1% Libor floor, a par offer price and 101 soft call protection for six months, according to a market source.

Proceeds were going to be used to take out a $295 million exit term loan from August 2010, which is priced at Libor plus 400 bps with a 1.5% Libor floor and includes 101 call protection for one year, and for general corporate purposes.

Bank of America Merrill Lynch and Citigroup were acting as the lead banks on the deal.

Chemtura is a Middlebury, Conn.-based manufacturer and marketer of specialty chemicals, agrochemicals and pool, spa and home care products.

CRC terminates refi

And the list of pulled deals goes on, with CRC Health removing its $120 million incremental term loan (B1) due Nov. 16, 2015 from market just days after eliminating plans to also strip covenants from its existing credit facility, according to a market source.

Proceeds from the term loan were going to be used to refinance non-extended term loan borrowings and repay revolver debt. The company's roughly $90 million non-extended term loan matures on Feb. 6, 2013 and is priced at Libor plus 225 bps.

Price talk on the incremental loan had been Libor plus 450 bps with a 1% Libor floor and an original issue discount of 99 to 991/2.

Citigroup was acting as the lead bank on the deal that launched early this month.

CRC Health is a Cupertino, Calif.-based provider of substance abuse treatment and adolescent youth services.

ConvaTec shelved

ConvaTec Healthcare hopped on the bandwagon too, terminating the refinancing/repricing of its $500 million term loan B and €550 million term loan B that was launched early this month, according to a market source.

The U.S. term loan B was talked at Libor plus 325 bps and the euro term loan B was talked at Euribor plus 375 bps, with both having a 1.5% Libor floor, a par offer price and 101 soft call protection for one year.

The company's existing debt was obtained late last year as part of a refinancing initiative at pricing of Libor/Euribor plus 425 bps with a 1.5% Libor floor and an original issue discount of 991/2.

J.P. Morgan and Goldman Sachs were the lead banks on the deal.

ConvaTec is a Skillman, N.J.-based developer, manufacturer and marketer of medical technologies for community and hospital care.

Drew nets orders

And back to the topic of deals that are still in market, Drew Marine is seeing its book build with "commitments starting to come in," a market source told Prospect News.

The company's $90 million credit facility, comprised of a $15 million revolver and a $75 million term loan, is talked at Libor plus 475 bps with a 1.5% Libor floor and an original issue discount of 99 to 991/2.

BNP Paribas is the lead bank on the deal that will be used to refinance existing debt and fund a dividend payment.

Drew Marine is a Whippany, N.J.-based provider of technical solutions and services to the marine industry.

Jarden fills out

Jarden Corp.'s $500 million seven-year term loan B was fully subscribed at initial talk of Libor plus 300 bps with no Libor floor and a par offer price by Thursday's 5 p.m. ET commitment deadline, according to a market source.

The Rye, N.Y.-based consumer products company's $1.25 billion senior secured facility (Ba1/BB+) also includes a $250 million five-year revolver and a $500 million five-year term loan A, both talked at Libor plus 225 bps with no Libor floor. Commitments towards these tranches are due at 5 p.m. ET on March 24.

Barclays, Deutsche Bank, J.P. Morgan, SunTrust and Wells Fargo are the lead banks on the deal that will be used to refinance existing debt.

At Dec. 31, the company had about $1.06 billion of term loans outstanding and no borrowings under its revolver. The debt includes a $364 million extended term loan B-5 due January 2015 that was obtained in August at pricing of Libor plus 325 bps.

TravelClick wraps deal

TravelClick closed on its senior secured credit facility (B1/B) after removing a $50 million delayed-draw term loan from the structure and increasing pricing on the entire facility to Libor plus 500 bps from talk of Libor plus 450 bps to 475 bps, according to a market source.

As before, the $20 million revolver and $160 million funded term loan include a 1.5% Libor floor. The term loan was sold at an original issue discount of 99, which is the offer price that was whispered prior to launch. However, at launch, the discount was described as still to be determined.

BMO Capital Markets acted as the lead bank on the $180 million deal that is being used to refinance senior and junior debt. The eliminated delayed-draw loan was going to be used for acquisition financing.

TravelClick is a Schaumburg, Ill.-based provider of online bookings to hotels.

Sirva closes

Sirva Inc. closed on its $210 million credit facility after playing around with the structure since the deal first launched in December, according to a market source.

The facility consists of a $160 million five-year term loan priced at Libor plus 875 bps with a 2% Libor floor, an original issue discount of 97 and call protection of 103 in year one, 102 in year two and 101 in year three and a $50 million ABL revolver.

By comparison, when the deal first came to market, it was structured as a $175 million six-year term loan with price talk to be determined and a $60 million ABL revolver.

Barclays was the lead bank on the term loan and Wells Fargo was the lead on the ABL revolver.

Sirva, a Westmont, Ill.-based provider of relocation and moving services, used the proceeds to refinance first- and second-lien bank debt.

iStar completes loans

iStar Financial Inc., a New York-based finance and investment company, said in a news release that it closed on its $1.45 billion term loan A-2 (B2/NA/B+) due June 2014 priced at Libor plus 575 bps with a 1.25% Libor floor and sold at an original issue discount of 981/2, and its $1.5 billion term loan A-1 (B1/NA/BB-) due June 2013 priced at Libor plus 375 bps with a 1.25% floor and sold at a discount of 99.

During syndication the term A-2 was downsized from $1.5 billion and pricing was flexed from revised talk of Libor plus 550 bps and from initial talk of Libor plus 475 bps. Also, pricing on the A-1 was flexed from Libor plus 325 bps and the discount was increased from 991/2.

Both term loans have 101 soft call protection for one year and par ½ soft call protection for the following six months. This feature was added during syndication.

J.P. Morgan, Barclays and RBS acted as the lead banks on the $2.95 billion deal that is being used to refinance secured loan facilities due in June 2011 and 2012, as well as to repay some unsecured debt maturing in 2011.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.