SMG, Calpine Construction Finance break; Hudson Products, Charlotte Russe talk surfaces

By Sara Rosenberg

New York, Feb. 25 - SMG (Stadium Management Group) saw its credit facility hit the secondary market on Tuesday with the term loan quoted above its original issue discount price, and Calpine Construction Finance Co. freed up as well.

Moving to the primary, Hudson Products Corp. released talk with launch, Charlotte Russe came out with original issue discount guidance, and Knowledge Universe Education LLC and EMI Music Publishing and IMS Health Holdings Inc. emerged with deal plans.

SMG starts trading

SMG's credit facility broke on Tuesday, with the $325 million six-year first-lien term loan seen at par bid, par ½ offered on the open and then it moved to par 1/8 bid, par 5/8 offered, according to a market source.

Pricing on the term loan is Libor plus 350 basis points with a 1% Libor floor and it was sold at a discount of 991/2. The debt includes 101 soft call protection for six months.

During syndication, the term loan was upsized from $300 million and pricing was cut from Libor plus 350 bps.

The company's $350 million credit facility also provides for a $25 million five-year revolver.

Credit Suisse Securities (USA) LLC and Morgan Stanley Senior Funding Inc. are leading the deal that will be used to refinance existing loans and fund a dividend.

SMG is a West Conshohocken, Pa.-based venue management company.

Calpine Construction breaks

Another deal to begin trading was Calpine Construction Finance's $425 million add-on term loan B-2 due Jan. 31, 2022, with levels quoted at 99 bid, 99¼ offered, a trader remarked.

Pricing on the add-on, which was recently upsized from $375 million, is Libor plus 250 bps with a 0.75% Libor floor, in line with the existing term loan B-2, and it was sold at an original issue discount of 983/4, after firming in the middle of the 98½ to 99 talk.

Bank of America Merrill Lynch, Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc., Credit Suisse Securities (USA) LLC, Union Bank and UBS Securities LLC are leading the deal that will help fund the $625 million acquisition of a nominal 1,050 megawatt, combined-cycle power plant in Guadalupe County from MinnTex Power Holdings LLC.

Closing is expected this quarter, subject to customary conditions, antitrust review under the Hart-Scott-Rodino Antitrust Improvements Act and approval by the Public Utility Commission of Texas.

Calpine Construction is a subsidiary of Calpine Corp., a Houston-based power producer.

Hudson reveals guidance

Over in the primary, Hudson Products held its bank meeting on Tuesday morning, launching its $270 million five-year covenant-light term loan with talk of Libor plus 425 bps to 450 bps with a 1% Libor floor, an original issue discount of 99½ for new money and 101 soft call protection for six months, according to a market source.

Prior to launch, early indications for talk were circulating in the Libor plus mid-400 bps area with a 1% Libor floor and the 101 soft call for six months.

The company's $300 million credit facility also includes a $30 million 41/2-year revolver.

Commitments are due on March 11, the source added.

BNP Paribas Securities Corp. is leading the deal that will refinance existing debt and fund a dividend.

Hudson Products is a Beasley, Texas-based designer and manufacturer of air-cooled heat exchanger equipment to serve the oil, gas and petrochemical processing industries.

Charlotte OID talk

Charlotte Russe launched with a call in the afternoon its $50 million non-fungible add-on term loan (B2/B) with original issue discount talk of 98, according to a market source.

As previously reported, pricing on the term loan is talked at Libor plus 550 bps with a 1.25% Libor floor, in line with the company's existing term loan.

Jefferies Finance LLC and Macquarie Capital are 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 and is offering lenders a 50 bps consent fee, the source continued.

Charlotte Russe is a San Diego-based women's apparel company.

Knowledge Universe on deck

Knowledge Universe set a bank meeting for 10 a.m. ET in New York on Thursday to launch a $340 million credit facility, according to a market source.

The facility consists of a $70 million five-year revolver and a $270 million seven-year term loan B, the source said.

Deutsche Bank Securities Inc., BNP Paribas Securities Corp. and BMO Capital Markets are leading the deal that will be used to refinance existing debt.

Knowledge Universe is a Singapore-based provider of early childhood and teacher education.

EMI coming soon

EMI Music Publishing plans to hold a call at 2 p.m. ET on Wednesday to launch a repricing of its roughly $1.1 billion term loan B, according to a market source.

Current pricing on the loan is Libor plus 325 bps with a 1% Libor floor.

UBS Securities LLC is leading the transaction for the New York-based music publisher.

IMS readies call

IMS Health scheduled a call for 11 a.m. ET on Wednesday for credit facility investors, according to a market source, who said details on the purpose of the call are not yet available.

Bank of America Merrill Lynch, Barclays, Goldman Sachs Bank USA, HSBC Securities (USA) Inc., J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc., Deutsche Bank Securities Inc. and Wells Fargo Securities LLC are leading the deal.

IMS is a Danbury, Conn.-based provider of information, services and technology for the health care industry.

KAR deadline

In other news, KAR Auction Services Inc. is looking for commitments by Monday on its $1.27 billion seven-year term loan B-2 that is talked at Libor plus 250 bps with a 0.75% Libor floor and an offer price of 99¾ to par, and on its $500 million three-year term loan B-1 that is talked at Libor plus 250 bps with no Libor floor and a par offer price, according to a market source.

Both term loans have 101 soft call protection for six months.

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

KAR is a Carmel, Ind.-based provider of vehicle auction services and a provider of floorplan financing to independent and franchise used vehicle dealers.

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