Renaissance, Confie Seguros, Blackboard, Smart & Final break; Alon lifts pricing again

By Sara Rosenberg

New York, Nov. 8 - Renaissance Learning Inc., Confie Seguros and Blackboard Inc. made their way into the secondary market on Thursday, with all of the companies' term loans seen trading above their issuance prices.

Also, Smart & Final Holdings Corp. increased the size of its first-lien term loan and firmed the spread at the tight end of talk, decreased the size of its second-lien term loan while lifting pricing and the original issue discount price, and then freed up for trading.

In more happenings, Alon USA Energy Inc. revised its term loan for a second time, this time increasing the coupon even further and widening the original issue discount, and Therakos Inc., Intrawest and Fibertech Networks came out with talk with launch.

Furthermore, NPC International Inc., Sidera Networks Inc., Firth Rixson Ltd., Consolidated Communications Holdings Inc. and National CineMedia LLC are getting ready to bring refinancing deals to market.

Renaissance frees up

Renaissance Learning's credit facility emerged in the secondary market on Thursday, with levels on the $230 million six-year term loan B quoted at 99¾ bid, par ¼ offered on the open and then it moved to par bid, par ¼ offered, according to a trader.

Pricing on the term loan B is Libor plus 450 basis points with a step-down to Libor plus 425 bps when leverage is below 3.0 times. There is a 1.25% Libor floor and 101 soft call protection for one year, and the debt was sold at an original issue discount of 99.

During syndication, the spread on the loan firmed at the tight end of the Libor plus 450 bps to 475 bps talk and the step-down was added.

RBC Capital Markets LLC and BMO Capital Markets Corp. are leading the $250 million credit facility (B2/B+), which also provides for a $20 million revolver, and will be used to refinance debt, including a first-lien term loan being repaid at par and a second-lien term loan being repaid at 103.

Renaissance Learning is a Wisconsin Rapids, Wis.-based provider of technology-based school improvement and student assessment programs for K-12 schools.

Confie Seguros starts trading

Confie Seguros' credit facility also broke, with the $252 million first-lien term loan (B2/B-) quoted at 99¼ bid, 99¾ offered, and the $110 million second-lien term loan (Caa2/CCC) quoted at par ½ bid, 101 offered, according to a trader.

Pricing on the first-lien term loan is Libor plus 525 bps with a 1.25% Libor floor, and it was sold at a discount of 981/2, after firming recently at the wide end of the 98½ to 99 guidance. There is 101 soft call protection for one year.

The second-lien term loan is priced at Libor plus 900 bps with a 1.25% Libor floor, and was sold at a discount of 98. This debt has call protection of 103 in year one, 102 in year two and 101 in year three.

The company's $437 million credit facility also includes a $75 million revolver (B2/B-) that is priced at Libor plus 525 bps.

RBC Capital Markets and GE Capital Markets are leading the deal that will be used to help fund ABRY Partners' buyout of the New York-based personal insurance company from Genstar Capital.

Blackboard tops par

Another deal to free up was Blackboard's $500 million term loan B-2, with levels quoted at par ¼ bid, par ½ offered, according to a trader.

Pricing on the B-2 loan is Libor plus 475 bps with a 1.5% Libor floor, and it was sold at par. There is 101 soft call protection for one year.

Bank of America Merrill Lynch, Deutsche Bank Securities Inc. and Morgan Stanley Senior Funding Inc. are leading the deal that will be used to refinance a portion of the company's existing term loan debt that is priced at Libor plus 600 bps with a 1.5% Libor floor.

Blackboard is a Washington, D.C.-based provider of enterprise software applications and related services to the education industry.

Smart & Final reworked

Meanwhile, Smart & Final lifted its seven-year first-lien term loan (B3/B) to $525 million from $510 million and set pricing at Libor plus 450 bps, the low end of the Libor plus 450 bps to 475 bps talk, according to a market source. The 1.25% Libor floor, original issue discount of 99 and 101 soft call protection for one year were unchanged.

Meanwhile, the eight-year second-lien term loan (Caa2/CCC+) was trimmed to $195 million from $210 million, pricing was increased to Libor plus 925 bps from talk of Libor plus 850 bps to 875 bps and the discount widened to 97 from talk of 98 to 99, the source continued. The 1.25% Libor floor and hard call protection of 102 in year one and 101 in year two remained intact.

Also included in the company's $870 million credit facility is a $150 million ABL revolver (Ba2/BB-).

Recommitments were due by 2 p.m. ET on Thursday, the source remarked.

Smart & Final breaks

After firming up the new terms, Smart & Final's credit facility allocated and began trading, with the first-lien term loan quoted at 99½ bid, par offered, and the second-lien term loan quoted at 97½ bid, 98 ½ offered, a source said.

Morgan Stanley Senior Funding Inc., Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. are leading the deal that will be used to help fund the $975 million purchase of the company by Ares Management from Apollo Global Management LLC and to refinance existing debt.

Smart & Final is a Commerce, Calif.-based warehouse-style, no membership fee, multi-format retailer serving households and smaller businesses.

Alon flexes once more

Back in the primary, Alon USA lifted the spread on its $450 million six-year first-lien covenant-light secured term loan (B2/B+) to Libor plus 875 bps from recently revised talk of Libor plus 725 bps, according to a market source. At launch, the loan had been guided at Libor plus 625 bps.

In addition, the original issue discount was revised to 95 from 981/2, the source remarked. This is the first change to the discount since launch.

As before, the loan has a 1.25% Libor floor and is non-callable for one year, then at 102 in year two and 101 in year three.

Lead banks, Credit Suisse Securities (USA) LLC and Goldman Sachs Lending Partners LLC, were seeking recommitments by 5 p.m. ET on Thursday.

Proceeds will be used by the Dallas-based refiner and marketer to repay a roughly $422 million term loan and for general corporate purposes.

Therakos discloses talk

Therakos held its bank meeting on Thursday, and with the event, price talk on the first-and second-lien term loans was announced, according to a market source.

The $210 million first-lien term loan (B) was launched at Libor plus 600 bps to 625 bps with a 1.25% Libor floor, an original issue discount of 98 and 101 soft call protection for one year, the source said.

And, the $80 million second-lien term loan (CCC+) is talked at Libor plus 950 bps to 975 bps with a 1.25% Libor floor, a discount of 97 and call protection of 103 of year one, 102 in year two and 101 in year three.

The $325 million credit facility, for which commitments are due on Nov. 21, also includes a $35 million revolver (B).

RBC Capital Markets LLC and Jefferies & Co. are leading the transaction.

Therakos being acquired

Proceeds from Therakos' credit facility will be used to help fund the its buyout by the Gores Group from Ortho-Clinical Diagnostics Inc., a Johnson & Johnson subsidiary.

Leverage through the first-lien is 4.1 times, or 3.7 times on a net basis, and leverage through the second-lien is 5.6 times, or 5.2 times net.

Closing is expected by year-end, subject to customary conditions.

Therakos is a Raritan, N.J.-based provider of integrated systems for delivering extracorporeal photopheresis, a therapy used to treat niche but serious disease states arising from immune system imbalances.

Intrawest guidance surfaces

Intrawest also held a bank meeting, at which time its $425 million five-year first-lien term loan B was launched at Libor plus 500 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.

In addition, the $150 million six-year second-lien term loan was launched at Libor plus 850 bps to 875 bps with a 1.25% Libor floor and a discount of 98, and is non-callable for one year, then at 102 in year two and 101 in year three.

And, the $55 million five-year first-lien fully utilized letter-of-credit facility was launched at Libor plus 500 bps with no floor, the source said.

The $650 million credit facility also includes a $20 million five-year super-priority revolver.

Goldman Sachs & Co. is the lead bank on the deal that will be used to refinance existing debt.

First-lien leverage is 4.1 times and total leverage is 5.8 times.

Intrawest, an operator of ski resorts and luxury adventure travel brands, including Abercrombie & Kent, is asking for lender commitments by Nov. 21, the source added.

Fibertech pricing

Fibertech Networks set talk on its $380 million covenant-light term loan B at Libor plus 450 bps to 475 bps with a 1.25% Libor floor, an original issue discount of 99½ and 101 soft call protection for one year with its Thursday bank meeting, according to a market source.

The company's $430 million credit facility also includes a $50 million revolver.

Commitments are due on Nov. 19, the source said.

TD Securities (USA) LLC is the bookrunner and lead arranger on the deal that will be used to refinance existing debt and fund a dividend. M&T Securities Inc. and UBS Securities LLC are co-arrangers.

Fibertech is a Rochester, N.Y.-based provider of fiber optic bandwidth services.

NPC sets call

In more primary news, NPC International will be hosting a conference call at 10 a.m. ET on Friday to launch a $473 million senior secured credit facility that is being led by Barclays and Goldman Sachs & Co., according to an informed source.

The facility consists of a $100 million revolver and a $373 million term loan that has 101 soft call protection for one year, the source said.

Proceeds will be used to refinance/reprice an existing $100 million revolver due December 2016 and a $373 million term loan due December 2018.

The revolver was obtained in 2011 at pricing of Libor plus 525 bps, subject to a grid, and the term loan was done in March 2012 at pricing of Libor plus 400 bps with a 1.25% Libor floor.

NPC is an Overland Park, Kan.-based Pizza Hut franchisee.

Sidera readies deal

Sidera Networks set a bank meeting for 10:30 a.m. ET on Tuesday to launch a $375 million credit facility that will be used to refinance an existing credit facility, according to a market source.

The facility consists of a $50 million five-year revolver, and a $325 million six-year term loan B talked at Libor plus 400 bps to 425 bps with a 1.25% Libor floor, an original issue discount of 99½ and 101 soft call protection for one year, the source remarked.

Lead bank, SunTrust Robinson Humphrey Inc., will be asking for commitments by Nov. 28.

Sidera is a New York-based provider of dark fiber, colocation and advanced network services.

Firth Rixson coming soon

Firth Rixson is scheduled to hold a bank meeting on Friday to launch an $800 million credit facility (B+), according to a market source.

The facility consists of a $120 million revolver due March 2017 and a $680 million first-lien term loan due June 2017, the source said. The term loan may include an up to £150 million tranche.

Deutsche Bank Securities Inc., Barclays, HSBC, Lloyds Securities LLC and GE Capital Markets are leading the deal that will be used to refinance existing debt.

Firth Rixson is a U.K.-based provider of seamless rolled rings, closed die forgings, open die forgings, extruded forgings and specialty metals primarily to the aerospace market.

Consolidated plans loan

Consolidated Communications will hold a bank meeting on Wednesday to launch a $515 million term loan B that is talked in the area of 5.25% to 5.5% all-in, according to a market source.

Wells Fargo Securities LLC is the lead bank on the deal that will be used to refinance non-extended term loan debt.

Consolidated Communications is a Mattoon, Ill.-based rural local exchange company providing voice, data and video services.

National CineMedia refi

National CineMedia will launch with a call on Friday a $265 million seven-year term loan that will be used to repay an existing $225 million term loan, and, if there are any remaining proceeds, to pay-off current interest rate swap arrangements, make affiliate payments and for general corporate purposes, according to a market source.

Also, the company will ask to increase its revolver by $5 million and extend the maturity by seven months.

Barclays, J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC, Macquarie and Morgan Stanley Senior Funding Inc. are leading the deal.

National CineMedia is a Centennial, Colo., media company providing advertising and events across theater circuits.

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