First Data, Charter Communications, Surgery Center, Utex, Steward Health hit secondary

By Sara Rosenberg

New York, April 10 - First Data Corp. firmed the original issue discount on its 2018 term loan and then freed up for trading on Wednesday above that discount price, and Charter Communications Operating LLC, Surgery Center Holdings Inc., Utex Industries Inc. and Steward Health Care System LLC broke as well.

In the primary, Essential Power LLC reduced the coupon on its term loan while extending the soft call protection, Cequel Communications LLC upsized its term loan, Seminole Tribe of Florida reverse flexed pricing and Laureate Education Inc. modified the offer price on its add-on deal.

Also, Harland Clarke Holdings Corp., ThermaSys Corp. (API Heat Transfer Inc.), MMI International Ltd., Delta Air Lines Inc., Bausch & Lomb Inc. and TriNet HR Corp. released talk with launch.

Furthermore, Sleepy's Intermediate LLC disclosed guidance on its upcoming transaction, and Lineage Logistics LLC, AMC Entertainment Holdings Inc. and Pinnacle Foods Finance LLC joined this week's calendar.

First Data sets OID, breaks

First Data finalized on Wednesday morning the original issue discount on its $1,008,000,000 first-lien term loan B (B1/B+) due September 2018 at 99 3/8, the high end of the 99 3/8 to 99 5/8 talk, according to a market source.

As before, pricing on the loan is Libor plus 400 basis points with no Libor floor, and there is no call protection.

With terms firmed up, the loan then broke for trading shortly before midday, with levels quoted at 99½ bid, 99 7/8 offered, the source remarked.

Proceeds are being used to reprice the existing 2018 term loan from Libor plus 500 bps with no Libor floor.

Credit Suisse Securities (USA) LLC and KKR Capital Markets are leading the deal.

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

Charter hits secondary

Charter Communications' $1.5 billion seven-year first-lien term loan E (Baa3/BB+/BB+) also began trading, with levels quoted at par bid, par ½ offered, according to one market source. Then, by late afternoon, another trader was seeing the loan at par ½ bid, 101 offered.

Pricing on the loan is Libor plus 225 bps with a 0.75% 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, pricing on the loan was reduced from Libor plus 250 bps.

Credit Suisse Securities (USA) LLC and Goldman Sachs & Co. are leading the loan that will help fund the acquisition of Optimum West (Bresnan Broadband Holdings LLC), a manager of cable operating systems in Colorado, Montana, Wyoming and Utah, from Cablevision Systems Corp. for $1.625 billion in cash.

Closing is expected in the third quarter, subject to customary conditions, including regulatory approval.

Charter Communications is a St. Louis-based broadband communications company.

Surgery Center frees up

Another deal to make its way into the secondary market was Surgery Center Holdings, with its $315 million six-year first-lien term loan (B2/B) quoted at par ¼ bid, and its $120 million seven-year second-lien term loan (Caa2/CCC+) quoted at par bid, a trader said.

Pricing on the first-lien term loan is Libor plus 475 bps with a 1.25% Libor floor, and it was sold at a discount of 99. There is 101 soft call protection for one year.

The second-lien term loan is priced at Libor plus 850 bps with a 1.25% floor, and was sold at a discount of 971/2. The tranche has hard call protection of 103 in year one, 102 in year two and 101 in year three.

Recently, the first-lien term loan was upsized from $305 million as the second-lien loan was downsized from $130 million. Also, pricing on the first-lien loan firmed at the wide end of the Libor plus 450 bps to 475 bps talk and the call protection was extended from six months. And, second-lien loan pricing was increased from talk of Libor plus 775 bps to 800 bps while the discount widened from guidance of 98 to 981/2.

Surgery getting revolver

In addition to the term loans, Surgery Center's $465 million credit facility includes a $30 million five-year revolver (B2/B).

J.P. Morgan Securities LLC is leading the transaction that will be used to refinance existing debt and return capital to shareholders.

Surgery Center is a Chicago-based operator of ambulatory surgery centers.

Utex tops OIDs

Utex Industries' credit facility began trading too, with the $300 million seven-year first-lien term loan (B2/B) quoted at 101 bid, 101¼ offered, and the $140 million eight-year second-lien term loan (Caa2/CCC+) quoted at par ½ bid, 101½ offered, according to a trader.

The first-lien term loan is priced at Libor plus 350 bps with a step-down to Libor plus 325 bps at less than 5 times leverage. There is a 1.25% Libor floor and 101 soft call protection for six months, and the debt was sold at an original issue discount of 991/2.

Second-lien loan pricing is Libor plus 750 bps with a 1.25% Libor floor, and it was sold at a discount of 991/2. There is call protection of 102 in year one and 101 in year two.

During syndication, pricing on the first-lien term loan was reduced from talk of Libor plus 375 bps to 400 bps, the discount was tightened from 99 and the call protection was shortened from one year. Also, pricing on the second-lien term loan was cut from Libor plus 775 bps, the discount was revised from guidance of 98½ to 99 and the call protection was changed from 103 in year one, 102 in year two and 101 in year three.

Utex lead banks

Bank of America Merrill Lynch, BNP Paribas Securities Corp., Societe Generale and UBS Securities LLC are the lead banks on Utex's $490 million credit facility, which also includes a $50 million five-year revolver.

Proceeds will be used to help fund the buyout of the company by Riverstone Holdings LLC from Rhone Capital LLC.

Closing is expected this month, subject to regulatory approvals.

Utex is a Houston-based manufacturer of engineered sealing and other specialty products used in oil and gas drilling and production, power, mining, water treatment and other industrial sectors.

Steward Health above par

Steward Health Care System's $285 million seven-year term loan B (B2/B) broke as well, with levels quoted at par ½ bid, a trader remarked.

Pricing on the loan is Libor plus 550 bps with a 1.25% Libor floor, and it was sold at a discount of 99. There is 101 soft call protection for one year.

Earlier this week, the loan was upsized from $250 million, the coupon was lowered from the Libor plus 575 bps area and the discount was tightened from 98.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance ABL borrowings, and pre-fund acquisitions and capital expenditures.

Steward Health Care is a Boston-based health care system.

Essential Power revised

Moving to the primary, Essential Power trimmed pricing on its $550.7 million senior secured term loan due Aug. 8, 2019 to Libor plus 325 bps from Libor plus 350 bps and extended the 101 soft call protection to one year from six months, according to a market source.

As before, the loan has a 1% Libor floor and a par offer price.

Lead bank, Barclays, was asking for recommitments by 5 p.m. ET on Wednesday, the source continued.

Proceeds will be used to refinance an existing term loan.

Essential Power is an Iselin, N.J.-based wholesale power generation and marketing company.

Cequel upsizes

Cequel increased its first-lien term loan due February 2019 to $2,383,000,000 from $2,183,000,000 and will use those incremental funds to repurchase a portion of its 8 5/8% senior notes, according to a market source.

Pricing on the loan is still Libor plus 275 bps with a 0.75% Libor floor and a par offer price, and there is still 101 soft call protection for six months, the source said.

Proceeds from the original term loan amount will be used to reprice an existing term loan from Libor plus 300 bps with a 1% Libor floor.

Commitments were due at 5 p.m. ET on Wednesday, the source added.

Credit Suisse Securities (USA) LLC is leading the deal for the St. Louis-based cable operator.

Seminole lowers pricing

Seminole Tribe of Florida cut the coupon on its $750 million seven-year term loan B (Baa3/BBB-/BBB-) to Libor plus 225 bps from Libor plus 250 bps, according to a market source. This flex came on the heels of a recent change to the offer price to par from talk of 99½ to 993/4.

As before, the loan has a 0.75% Libor floor and 101 soft call protection for six months.

Recommitments were due at 5 p.m. ET on Wednesday. Allocations are expected to go out on Thursday, the source said.

Bank of America Merrill Lynch and Credit Suisse Securities (USA) LLC are leading the deal that will be used to refinance existing bank debt.

Closing is expected in late April.

Seminole Tribe of Florida is a Hollywood, Fla.-based Indian tribe that owns and operates gaming and resort facilities throughout Florida.

Laureate offered at premium

Laureate Education modified the offer price on its $310 million add-on senior secured term loan B due June 16, 2018 to par ½ from par, according to a market source. The loan is still priced at Libor plus 400 bps with a 1.25% Libor floor, has 101 soft call protection until July 18, 2013 and is fungible with the company's existing term loan B.

Citigroup Global Markets Inc., Barclays, KKR Capital Markets, J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC, Goldman Sachs & Co., Morgan Stanley Senior Funding Inc. and BMO Capital Markets Corp. are leading the add-on that will be used to refinance existing 11¾% senior subordinated notes.

With the add-on, the company is amending its existing credit facility to allow for the refinancing and lenders are being offered a 5 bps consent fee.

Commitments for the add-on were due at 5 p.m. ET on Wednesday, moved up from Thursday, the source added. Amendment consents are due at noon ET on April 16 and closing is expected on April 23.

Laureate is a Baltimore-based provider of higher educational services.

Harland discloses guidance

In more primary happenings, Harland Clarke held its bank meeting on Wednesday, launching its $750 million first-lien covenant-light incremental term loan B-3 (B1) due May 2018 with talk of Libor plus 525 bps to 550 bps with a 1.25% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, according to a market source.

Commitments are due on April 23, the source remarked.

Credit Suisse Securities (USA) LLC, BofA Merrill Lynch, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co., Jefferies Finance LLC and J.P. Morgan Securities LLC are leading the deal that will refinance an existing non-extended term loan due 2014 priced at Libor plus 250 bps.

Pro forma leverage is 4 times LTM March 31 adjusted EBITDA of $510 million.

Harland Clarke is a San Antonio-based provider of payment s, marketing and security services.

ThermaSys terms surface

ThermaSys set talk of Libor plus 375 bps with a 1.25% Libor floor, an original issue discount of 99 and 101 soft call protection for six months on its $265 million six-year first-lien term loan B with its morning bank meeting, according to a market source.

The company's $300 million credit facility, for which commitments are due on April 24, also includes a $35 million five-year revolver, the source said.

UBS Investment Bank, RBC Capital Markets and GE Capital Markets are leading the deal that will be used to refinance existing debt and pay a dividend to shareholders.

ThermaSys is a Buffalo, N.Y.-based designer and manufacturer of specialty heat exchangers and heat transfer products.

MMI talk emerges

MMI International released guidance of Libor plus 425 bps to 450 bps with a 1.25% Libor floor, an original issue discount of 98½ and 101 soft call protection for one year on its $230 million 51/2-year senior secured term loan B that launched with a bank meeting in the morning, a source said.

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

MMI, a Singapore-based technology company with a focus on key components for the Hard Disk Drive industry, will use the new debt to refinance an existing term loan.

Delta comes to market

Delta Air Lines launched with no call a repricing of $1,496,000,000 of its Pacific Route term loans and is asking for commitments by 5 p.m. ET on April 17, according to a market source.

Specifically, the company is looking to reprice its $1,097,000,000 term loan B-1 due Oct. 18, 2018 at Libor plus 325 bps with a 1% Libor floor from Libor plus 400 bps with a 1.25% Libor floor, and its $399 million term loan B-2 due April 18, 2016 to Libor plus 225 bps with a 1% Libor floor from Libor plus 300 bps with a 1.25% Libor floor, the source said.

Both repriced term loans are being offered at par and the B-1 loan is offered with 101 soft call protection for six months.

Barclays, Bank of America Merrill Lynch, BNP Paribas Securities Corp., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc. and UBS Securities LLC are leading the deal for the Atlanta-based provider of scheduled air transportation for passengers and cargo.

Senior secured leverage is 3.1 times, total leverage is 3.3 times and net total leverage is 2.5 times.

Bausch holds call

Bausch & Lomb launched with a call a repricing of its roughly roughly $1.92 billion U.S. term loan to Libor plus 300 bps with a 1% Libor floor from Libor plus 425 bps with a 1% floor, according to a market source.

Also, the company wants to reprice its roughly $590 million euro equivalent term loan to Euribor plus 350 bps with a 1% floor from Euribor plus 475 bps with a 1% floor, its roughly $399 million delayed-draw term loan to Libor plus 325 bps with no floor from Libor plus 375 bps with a 1% floor, and its $170 million revolver will drop to Libor plus 275 bps (with a 50 bps facility fee) from Libor plus 375 bps, the source said.

All of the repriced loans will have a 25 bps pricing step-down when total net leverage is less than 4½ times, and the repriced term loans will have 101 soft call protection for six months.

Bausch delayed-draw

With the repricing, the Bausch & Lomb is asking to extend the maturity of its delayed-draw term loan by one year, the source continued.

Citigroup Global Markets Inc. is the lead bank on the roughly $3.08 billion credit facility.

Commitments are due on April 17.

Bausch & Lomb is a Rochester, N.Y.-based maker of contact lenses, ophthalmic surgical devices and instruments and ophthalmic pharmaceuticals.

TriNet OID

TriNet launched its $150 million incremental term loan B (B2/B+) with original issue discount talk in the 99½ area and pricing of Libor plus 525 bps with a 1.25% Libor floor, which matches existing B loan pricing, according to a market source.

Bank of America Merrill Lynch, KeyBanc Capital Markets LLC, J.P. Morgan Securities LLC and BMO Capital Markets Corp. are leading the deal.

Proceeds will be used to fund a dividend and for general corporate purposes.

TriNet is a San Leandro, Calif., cloud-based provider of on-demand HR services.

Carauster sets deadline

Caraustar Industries Inc. is giving investors until April 24 to place their orders for its $380 million credit facility that launched with a bank meeting on Wednesday afternoon, according to a market source.

The facility consists of a $50 million five-year ABL revolver (BB) and a $330 million six-year covenant-light first-lien term loan (B+), the source said.

As previously reported, price talk on the term loan is Libor plus 650 bps with a 1.25% Libor floor, an original issue discount of 99 and soft call protection of 102 in year one and 101 in year two.

Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. and Jefferies Finance LLC are leading the deal that will be used to help fund the buyout of the company by H.I.G. Capital.

Caraustar is an Austell, Ga.-based manufacturer of recycled paperboard products and packaging.

Sleepy's repricing

Sleepy's is talking the repricing of its $168.3 million first-lien term loan due March 30, 2019 at Libor plus 450 bps with a 1.25% Libor floor, a par offer price and 101 soft call protection for six months ahead of the 11 a.m. ET Thursday call that will take place to launch the deal, according to a market source.

Through the repricing, the company is taking the term loan down from Libor plus 600 bps with a 1.25% floor.

Credit Suisse Securities (USA) LLC is leading the deal for the Hicksville, N.Y.-based specialty mattress retailer.

Commitments are due on April 18, the source added.

Lineage readies launch

Lineage Logistics will hold a bank meeting at 9:30 a.m. ET in New York on Friday to launch a $220 million six-year first-lien term loan that has 101 repricing protection for one year, according to a market source.

Credit Suisse Securities (USA) LLC, Goldman Sachs & Co., SunTrust Robinson Humphrey Inc. and KKR Capital Markets are leading the deal.

Proceeds will be used by the Colton, Calif.-based cold storage warehousing and logistics company to refinance existing debt, to fund acquisitions and for general corporate purposes.

Commitments will be due on April 26, the source added.

AMC plans meeting

AMC Entertainment set a bank meeting for noon ET on Thursday for potential lenders, according to a market source.

Citigroup Global Markets Inc. is the lead bank on the deal.

No further details on the transaction were available prior to press time.

AMC is a Kansas City, Mo.-based movie exhibitor.

Pinnacle Foods on deck

Pinnacle Foods scheduled a lender call for 11 a.m. ET on Thursday to launch a new senior secured credit facility that is being led by Barclays, according to a market source.

Proceeds will be used to help refinance the company's existing credit facility and 8¼% senior unsecured notes.

Other funds for the transaction will come from new senior notes.

Pinnacle Foods is a Mountain Lakes, N.J.-based diversified packaged food company.

Sinclair closes

In other news, Sinclair Television Group Inc. closed on its $1 billion credit facility (Baa3/BB+) that includes a $100 million five-year revolver, a $500 million five-year term loan A (of which about $445 million is delayed-draw) and a $400 million seven-year term loan B, a news release said.

Pricing on all tranches is Libor plus 225 bps, with the term loan B having a 0.75% Libor floor and 101 soft call protection for six months. The B loan was issued at par.

During syndication, pricing on the term B was decreased from talk of Libor plus 250 bps to 275 bps and the offer price was tightened from 993/4.

J.P. Morgan Securities LLC, Wells Fargo Securities LLC and SunTrust Robinson Humphrey Inc. led the deal that is being used to take out existing bank debt and to fund the acquisitions of 18 television stations owned by Barrington Broadcasting Group LLC for $370 million and four television stations owned by COX Media Group for about $99 million.

Sinclair is a Hunt Valley, Md.-based television broadcasting company.

Bloomin' Brands wraps

Bloomin' Brands Inc. (OSI Restaurant Partners, LLC) completed the repricing of its $975 million senior secured term loan B to Libor plus 250 basis points with a 1% Libor floor from Libor plus 350 bps with a 1.25% Libor floor, according to an 8-K filed with the Securities and Exchange Commission.

Deutsche Bank Securities Inc. and Bank of America Merrill Lynch acted as the joint lead arrangers and were bookrunners with Goldman Sachs & Co., J.P. Morgan Securities LLC and Morgan Stanley Senior Funding Inc.

Bloomin' Brands is a Tampa, Fla.-based owner and operator of casual dining restaurants.

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