Go Daddy, BJ's move around on repricings; Kindred dips; SunGard, Hyland revise deadlines

By Sara Rosenberg

New York, Feb. 24 - Go Daddy Operating Co. LLC's term loan headed higher in trading, while BJ's Wholesale Club Inc.'s first-lien loan was lower on news that both companies will be launching refinancing/repricing transactions for the debt, and Kindred Healthcare Inc.'s term loan softened on the back of earnings.

Moving to the primary market, SunGard Data Systems Inc. extended the deadline on its term loan B extension offer, and Hyland Software pushed out its incremental loan commitment deadline as well.

Also, EMI Music Publishing increased the size of its term loan B, DS Waters of America Inc. shifted funds between its first- and second-lien loans, and Bragg Communications Inc. tweaked tranche sizes and lowered B loan pricing.

Furthermore, Graphic Packaging International Inc. released pro rata talk with launch, Rexnord LLC and Sleepy's Intermediate LLC emerged with new deal plans, and Weight Watchers International Inc. released details on its term loans that will be coming to market shortly along with an amendment and extension offer.

Go Daddy gains ground

Go Daddy's term loan was stronger on Friday following word that the debt will be repriced/refinanced, which would allow lenders to get paid down at 101 due to the presence of soft call protection, according to a market source.

The term loan was quoted at par 7/8 bid, 101 1/8 offered, up from Thursday's levels of par 5/8 bid, par 7/8 offered, the source said.

For the refinancing, the company is set to launch with a call on Monday afternoon a roughly $748 million senior secured term loan, with price talk on the new debt not yet available.

The existing term loan, obtained in 2011, is priced at Libor plus 575 basis points with a 1.25% Libor floor and was sold at an original issue discount of 93.

Barclays Capital Inc., Deutsche Bank Securities Inc. and RBC Capital Markets LLC are leading the new deal.

Go Daddy is a Scottsdale, Ariz.-based provider of web hosting and domain names.

BJ's dips on repricing

BJ's Wholesale Club's first-lien term loan moved to 101 bid, 101½ offered from 101 1/8 bid, 101 5/8 offered as investors are expecting a 101 paydown since the proposed repricing of the debt will trigger soft call protection, according to a trader.

The company is set to hold a conference call on Monday to launch the repricing of its existing $1.075 billion first-lien term loan that was obtained in 2011 at Libor plus 575 bps with a 1.25% Libor floor, and sold at an original issue discount of 95.

Deutsche Bank Securities Inc. is the sole lead bank on the repricing deal.

BJ's is a Westborough, Mass.-based operator of warehouse clubs.

Kindred loan retreats

Kindred Healthcare's term loan dropped to 96 bid, 97 offered, from 97 bid, 98 offered on Thursday, according to a one trader, and a second trader had it at 96 bid, 97 offered, down from 97¼ bid, 97¾ offered, as disappointing earnings were released.

For the fourth quarter, the company reported a net loss of $71.8 million, or $1.40 per share, compared to net income of $20.4 million, of $0.52 per share, in the prior year.

And, consolidated revenues for the fourth quarter were $1.5 billion, up 34% from $1.1 billion in the fourth quarter of 2010.

Kindred Healthcare is a Louisville, Ky.-based health care services company.

SunGard moves deadline

Over in the primary, SunGard Data Systems is now giving lenders until noon ET on Tuesday to commit to its term loan extension offer, whereas originally the deadline was expected to expire on Friday, according to a market source.

The company is still looking to push out the maturity on up to $1 billion of its non-extended term loan B and incremental term loan B to 2017 from 2014 at pricing of Libor plus 375 bps, and continues to offer a 25 bps extension fee, the source said.

According to a 10-Q/A filed with the Securities and Exchange Commission, current pricing on the term loan debt is Libor plus 350 bps.

The extended debt will be combined into one fungible tranche.

J.P. Morgan Securities LLC is the left lead bank on the deal.

SunGard is a Wayne, Pa.-based software and technology services company.

Hyland extends timeline

Hyland Software also revised the commitment deadline on its deal, giving lenders an extra day by moving it to Monday from Friday, according to a market source, who said the delay is because documents were posted later than expected.

"Shouldn't have a problem filling out tack-on," the source added.

As was previously reported, Hyland is marketing an $80 million incremental first-lien term loan (B2/B+) talked at Libor plus 475 bps with a 1.25% Libor floor and an original issue discount of 98.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to fund a dividend.

In connection with the transaction, the company is looking to amend its existing credit facility to allow for the dividend.

Consenting term loan lenders will get repriced from Libor plus 425 bps with a 1.5% Libor floor to match the incremental loan pricing, and will get a 20 bps amendment fee.

Hyland Software is a Westlake, Ohio-based enterprise content management software vendor.

EMI ups loan

EMI Music Publishing lifted its six-year term loan B to $1.15 billion from $1.05 billion, while leaving pricing at Libor plus 425 bps with a 1.25% Libor floor and an original issue discount of 99, after an earlier flex from Libor plus 475 bps with a discount of 981/2, according to a market source.

As a result of the upsizing, the company's privately placed notes were reduced $403.3 million from $503.3 million, the source said, and equity for the transaction has increased to $804 million from $790 million.

The company's now $1.225 billion senior secured credit facility (Ba3/BB-) still includes a $75 million five-year revolver priced at Libor plus 475 bps with a 1.25% Libor floor and a 75 bps undrawn fee that is subject to one step-down.

Recommitments were due at 5 p.n. ET on Friday and allocations are expected late in the week of Feb. 27.

UBS Securities LLC is the lead bank on the deal.

EMI funding buyout

Proceeds From EMI Music's credit facility will be used to help fund its acquisition for $2.2 billion from a wholly owned subsidiary of Citigroup Inc.

The investors group includes Sony/ATV Music Publishing, a subsidiary of Sony Corp. of America that is co-owned by trusts formed by the Estate of Michael Jackson, Mubadala Development Co. PJSC, Jynwel Capital Ltd., GSO Capital Partners LP and David Geffen.

As part of the transaction, Sony Corp. of America will invest about $325 million and, in conjunction with the Estate of Michael Jackson, own roughly 38% of the newly formed entity, with an ability to increase the investment and ownership up to 40%.

EMI Music Publishing is a music publisher. Sony/ATV is a New York-based owner and administrator of copyrights by artists.

DS Waters moves funds

DS Waters came out with some new revisions to its credit facility, this time upsizing the first-lien term loan and downsizing the second-lien term loan as a result of strong demand, according to a market source.

The 51/2-year first-lien term loan now totals $365 million, up from $340 million, with the split being $60 million delayed-draw, up from $55 million, and $305 million funded, up from $285 million, the source said.

Meanwhile, the six-year second-lien term loan now totals $100 million, down from $125 million, with the tranche divided into a $15 million delayed-draw piece, down from $20 million, and an $85 million funded piece, down from $105 million, the source continued.

Initially, the first-lien term loan totaled $465 million, comprised of a $75 million delayed-draw tranche and a $390 million funded tranche, but it was downsized earlier upon the introduction of the second-lien term loan into the capital structure.

DS Waters pricing

Pricing on DS Waters' first-lien term loan is Libor plus 900 bps with a 1.5% Libor floor and an original issue discount of 98, and there is call protection of 103 in year one, 102 in year two and 101 in year three.

Previously, the spread on the first-lien loan had been flexed up from talk of Libor plus 675 bps to 700 bps and call protection was changed from just 101 in year one.

As for the second-lien term loan, it is priced at Libor plus 950 bps cash pay plus 400 bps PIK, with a 1.5% Libor floor and an original issue discount of 98. The debt is non-callable for one year, then at 104 in year two, 103 in year three, 102 in year four and 101 in year five.

The company's $535 million credit facility also provides for a $70 million five-year ABL revolver.

DS Waters allocating soon

With this new round of changes, DS Waters set a recommitment deadline for Friday and is expected to allocate and free up for trading early in the week of Feb. 27, possibly Monday, the source added.

Credit Suisse Securities (USA) LLC, GE Capital Markets and Jefferies & Co. are the lead banks on the deal, with Credit Suisse the left on the term loan and GE the left on the revolver.

Proceeds will be used to refinance existing debt, and the delayed-draw term loans are available for acquisition funding.

DS Waters is an Atlanta-based bottled water, water filtration and coffee service company.

Bragg reworks deal

Bragg Communications downsized its six-year term loan B to $300 million from $400 million and revised pricing to Libor plus 300 bps with a 1% Libor floor and an original issue discount of 991/4, from initial talk of Libor plus 325 bps with a 1% floor and a discount of 99, according to a market source. The 101 soft call protection for one year was left unchanged.

With the term loan B size reduction, the five-year term loan A was increased to roughly C$1.3 billion from C$1.2 billion, and pricing on the tranche, as well as on a C$150 million five-year revolver, is BA plus 300 bps. The spread can range from BA plus 200 bps to 350 bps based on leverage. The revolver has an unused fee that is 25% of the drawn margin.

TD Securities (USA) LLC, CIBC World Markets Corp., BMO Capital Markets Corp. and RBC Capital Markets LLC are the lead banks on roughly C$1.75 billion senior secured credit facility (BB) that will be used to refinance existing debt and fund a dividend.

Bragg Communications is a Halifax, N.S.-based cable television and telecommunications company.

Graphic Packaging guidance

Also on the primary side, Graphic Packaging held a bank meeting on Friday to launch its $800 million revolver and $800 million term loan A and revealed price talk of Libor plus 225 bps on the tranches, according to a market source.

The company's $2 billion credit facility (Ba2/BBB) also includes a $400 million term loan B that has not yet been launched to lenders. If it does come to market, it would be in a few weeks, the source said.

Bank of America Merrill Lynch, SunTrust Robinson Humphrey Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. and J.P. Morgan Securities LLC are the lead banks on the deal that will be used to refinance existing debt.

Graphic Packaging is a Marietta, Ga.-based provider of packaging solutions for food, beverage and other consumer products companies.

Rexnord readies deal

Rexnord surfaced with a proposed $1.13 billion credit facility (Ba3/BB-) that is set to launch with a Monday afternoon conference call and will be used to refinance existing term loan and revolver debt, according to a market source.

The facility consists of a $180 million five-year revolver and a $950 million six-year first-lien term loan, with both tranches talked at Libor plus 425 bps with a 1% Libor floor and an original issue discount of 99, the source remarked. The term loan has 101 soft call protection for one year.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Bank of America Merrill Lynch, Barclays Capital Inc., Goldman Sachs & Co., BMO Capital Markets Corp. and Sumitomo Mitsui Banking Corp. are the lead banks on the deal, and are seeking commitments by March 5.

Rexnord is a Milwaukee-based industrial company comprised of two strategic platforms: Process & Motion Control and Water Management.

Sleepy's joins calendar

Sleepy's announced plans for a new $170 million seven-year first-lien term loan and has set a bank meeting for Tuesday to launch the deal, according to a market source.

The loan has 101 soft call protection for one year, the source said, adding that price talk is not yet available.

Credit Suisse Securities (USA) LLC is the sole lead bank on the deal that will be used to refinance existing debt and pay a distribution to shareholders.

Commitments will be due on March 13.

Sleepy's is a specialty mattress retailer owned by the Acker family. Calera Capital is also making a significant minority equity investment, the source added.

Weight Watchers details

Weight Watchers revealed that it will be launching a new $900 million to $1 billion term loan E due March 2017 and a new $500 million to $600 million term loan F due March 2019, along with an amendment and extension offer for its exiting credit facility, at its Tuesday morning bank meeting, according to a market source.

The company said in recent regulatory filing that the total amount of new term loans is expected to be $1.5 billion.

Debt covered by the amendment and extension includes an existing revolver, term loan A-1 due January 2013, term loan B due January 2014, term loan C due June 2015 and term loan D due June 2016, the source said.

At Dec. 31, 2011, the company had $1.052 billion outstanding under its credit facility, $15 million of which was drawn under the revolver, the various term loans were priced at different rates, ranging from Libor plus 87.5 bps to 225 bps, and the revolver was priced at Libor plus 225 bps

Weight Watchers talk

Weight Watcher's term loan E is heard to be talked at Libor plus 225 bps to 250 bps, and its term loan F is talked at Libor plus 275 bps to 300 bps with a 1% Libor floor, another second source remarked.

In addition to the new funds in the term loan F, the tranche is also expected to include the extended term loan B and term loan D loans, the source said.

Meanwhile, the extended term loan A-1 and term loan C loans are expected to have terms matching those of the new term loan E.

Term loan A-1 and term loan B lenders are being offered a 20 bps extension fee, and term loan C and term loan D lenders are being offered a 7.5 bps extension fee, the source added.

All lenders are being offered a 5 bps amendment fee.

Commitments are due on March 8.

Weight Watchers buying stock

Proceeds from Weight Watchers' new term loans will be used to fund a modified Dutch auction tender offer that expires on March 22 for up to $720 million of its common stock at a price of $72 to $83 per share.

In addition, the company will purchase shares from Artal, which owns about 52% of the company's outstanding shares, at the same price as the one determined in the tender offer.

If the tender offer is fully subscribed, the company will repurchase a total of about $1.5 billion of its common stock through the tender offer and the Artal purchase agreement.

J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch and Scotia Capital (USA) Inc. are the lead banks on the new loans as well as the amendment and extension.

The amendment is needed to allow the company to get the new term loan borrowings.

Weight Watchers is a New York-based provider of weight management services.

BI-LO nets interest

BI-LO LLC's $700 million senior secured asset-based revolving credit facility has been well received by the market, and the expectation is that the deal will close at initial terms, according to a source.

Initial pricing is Libor plus 200 bps, but the spread can range from Libor plus 175 bps to 225 bps based on availability.

Citigroup Global Markets Inc. and Deutsche Bank Trust Company Americas are the lead banks on the deal that will be used, along with $340.8 million of equity, to fund the acquisition of Winn-Dixie Stores Inc. for $9.50 in cash per share. Up to $300 million of the revolver can be used to fund the transaction and an additional $140 million can be used to back stop outstanding letters of credit at closing.

Closing is subject to Winn-Dixie shareholder approval, which will be sought at a March 9 meeting.

Greenville, S.C.-based BI-LO and Jacksonville, Fla.-based Winn-Dixie are operators of supermarkets.

Jarden closes

Jarden Corp. close on its $150 million incremental term loan B and $15 million incremental term loan A, according to an 8-K filed with the SEC on Friday.

Pricing on the B loan add-on, which was upsized from $125 million, is Libor plus 300 bps with no Libor floor, and it was sold at an original issue discount of 993/4, after tightening from 99½ during syndication.

The term loan A, which was also upsized from $125 million, is priced at Libor plus 225 bps. This tranche was sold with a 25 bps upfront fee.

Barclays Capital Inc. acted as the lead arranger on the deal (Ba1) and a joint bookrunner with Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Wells Fargo Securities LLC and SunTrust Robinson Humphrey Inc.

Proceeds will be used for general corporate purposes, including to fund a modified Dutch auction for up to $500 million of the company's common stock at a price of $32 to $36 per share.

Jarden is a Rye, N.Y.-based consumer products company.

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