Progressive Waste, Peak 10, Penn National, SNL break; Astoria, MRC, Jacobs rework deals

By Sara Rosenberg

New York, Oct. 22 - Progressive Waste Solutions Ltd. saw its credit facility make its way into the secondary market on Monday with the term loan B quoted above its original issue discount price, and Peak 10, Penn National Gaming Inc. and SNL Financial freed up as well.

Moving to the primary, Astoria Generating widened the spread, Libor floor and original issue discount on its term loan and upsized its revolver, MRC Global Inc. (McJunkin Red Man Corp.) reduced its term loan size while increasing the coupon, and Jacobs Entertainment Inc. revised tranche sizes and increased second-lien pricing.

In addition, Spectrum Brands Holdings Inc. disclosed price talk on its term loan debt, and Academy Sports + Outdoors came out with details on its amendment, which is regarding a repricing of its term loan.

Furthermore, Smart & Final Holdings Corp. revealed the structure and timing on its credit facility, and P2 Energy Solutions Inc., Blackboard Inc. and Raven Power Finance emerged with new deal plans.

Progressive hits secondary

Progressive Waste Solutions' credit facility broke for trading on Monday, with the $500 million term loan B seen at par ¼ bid, 101 offered on the open and then it moved up to par ½ bid, 101¼ offered, according to traders.

Pricing on the loan is Libor plus 275 basis points 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 one year.

While the spread came in line with talk, the Libor floor was reduced from 1% and the discount firmed at the tight end of the 99 to 99½ guidance.

The company's $2.25 billion credit facility (Ba1/BBB-) also provides for a $1.75 billion revolver.

Bank of America Merrill Lynch, TD Securities, CIBC World Markets Corp. and J.P. Morgan Securities LLC are leading the deal that will be used to refinance existing debt.

Progressive Waste is Vaughan, Ont.-based full-service, vertically integrated waste management company.

Peak 10 frees up

Peak 10's credit facility also began trading, with the $300 million term loan B quoted at 98½ bid, according to a trader.

Pricing on the B loan is Libor plus 600 bps with a 1.25% Libor floor, and it was sold at an original issue discount of 97. There is 101 soft call protection for one year.

During syndication, the spread on the term loan was increased from guidance of Libor plus 500 bps to 525 bps, the discount firmed at the high end of revised talk of 97 to 98 and wide of initial talk of 99, the maturity was shortened to six years from seven years and the maximum net leverage ratio saw the addition of step-downs.

The Charlotte, N.C.-based operator of data centers is also getting a $30 million six-year revolver as part of its $330 million senior secured credit facility (B2/B).

RBC Capital Markets, Barclays, GE Capital Markets and Morgan Stanley Senior Funding Inc. are leading the deal that will be used to refinance existing debt and fund a dividend.

Penn National tops par

Penn National Gaming's credit facility was another deal to emerge in the secondary market, with the $515 million term loan B quoted at par ½ bid, par ¾ offered, according to a trader.

Pricing on the term B, which was downsized from $600 million, is Libor plus 275 bps with a 1% Libor floor, and it was sold at par. At launch, the B tranche was talked at an offer price of 99¾ to par, but shortly thereafter, investors were told that there would be no discount.

The company's $1 billion credit facility (BBB-) also includes an $85 million revolver that was added when the term loan B size was reduced and a $400 million term loan A priced at Libor plus 175 bps.

Bank of America Merrill Lynch, Wells Fargo Securities LLC, Commerzbank, Fifth Third Securities Inc., RBS Securities Inc. and UBS Securities LLC are leading the deal that will fund the roughly $610 million acquisition of Harrah's St. Louis gaming and lodging facility from Caesars Entertainment and repay revolver debt.

Closing is expected this year, subject to customary conditions and regulatory approvals.

Penn National is a Wyomissing, Pa.-based owner and operator of gaming and racing facilities.

SNL Financial breaks

SNL Financial's credit facility broke too, with its $275 million six-year covenant-light first-lien term loan quoted at 99½ bid, according to a market source.

Pricing on the loan is Libor plus 425 bps with a 1.25% Libor floor, and it was sold at an original issue discount of 99. There is 101 repricing protection for one year.

During syndication, the financial information provider's term loan was upsized from $260 million and the spread was reduced from Libor plus 475 bps.

The company's, $305 million credit facility (B2/B) also includes a $30 million five-year revolver.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC are leading the deal that will refinance existing debt and fund a dividend that was upsized as a result of the change to the term loan amount.

Astoria revises deal

Over in the primary, Astoria Generating changed pricing on its $425 million term loan to Libor plus 700 bps with a 1.5% Libor floor and an original issue discount of 96, from talk of Libor plus 550 bps to 600 bps with a 1.25% floor and a discount of 98, according to a market source.

Additionally, the term loan is now non-callable for 18 months, then at 102 for six months and at 101 for a year, versus the originally proposed 101 soft call protection for one year, the maturity was changed to five years from 6 years and amortization was sweetened to 5% per annum (beginning Sept. 30, 2013) from 1% per annum, the source remarked.

Furthermore, the company upsized its revolver to $30 million from $25 million.

Recommitments for the now $455 million credit facility (B2/B) are due at the close of business on Tuesday, the source continued.

Goldman Sachs & Co., Morgan Stanley Senior Funding Inc. and Bank of America Merrill Lynch are leading the deal that will refinance first- and second-lien debt.

Astoria Generating is an owner of operating electric power generation facilities in New York.

MRC downsizes, flexes

Also on the topic of revision, MRC Global trimmed its seven-year senior secured term loan B to $650 million from $750 million and lifted the spread to Libor plus 500 bps from Libor plus 400 bps, according to a market source.

As before, the loan has a 1.25% Libor floor, original issue discount of 99 and 101 soft call protection for one year.

Lead banks, Goldman Sachs & Co., Bank of America Merrill Lynch, Barclays and Wells Fargo Securities LLC, were seeking recommitments by Monday, the source remarked.

Proceeds, along with ABL revolver borrowings, the amount of which was increased due to the term loan downsizing, will refinance $861 million in outstanding 9½% senior secured notes due 2016.

MRC is a Houston-based distributor of pipe, valve, fittings and related products and services to the energy industry.

Jacobs restructures

Jacobs Entertainment upsized its six-year first-lien term loan to $220 million from $210 million, while leaving pricing at Libor plus 500 bps with a 1.25% Libor floor and an original issue discount of 981/2, and the 101 repricing protection for one year unchanged, according to a market source.

Also, the seven-year second-lien term loan was decreased to $80 million from $110 million, pricing was increased to Libor plus 1,175 basis points from Libor plus 950 bps and the debt is now non-callable for two years, then at 103 in year three, 102 in year four and 101 in year five, whereas before its was callable at 103 in year one, 102 in year two and 101 in year three, the source said. The 1.25% Libor floor and original issue discount of 98 were left intact.

Credit Suisse Securities (USA) LLC is the lead bank on the now $350 million credit facility, which also includes a $50 million five-year revolver (B2/BB-).

Proceeds will be used to refinance senior unsecured notes and bank debt.

Jacobs Entertainment is a Golden, Colo.-based owner and operator of gaming properties.

Spectrum sets talk

In more primary news, Spectrum Brands held a bank meeting on Monday morning to kick off syndication on its $800 million of senior secured term loan debt (Ba3/B/BB-), and with the event, price talk was announced, according to a market source.

The loan, comprised of a $700 million U.S. tranche and a C$100 million tranche, is talked at Libor plus 350 bps to 375 bps with a 1.25% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, the source said, adding that commitments are due next week.

Deutsche Bank Securities Inc. and Barclays are leading the deal that, along with $1.04 billion of senior unsecured bonds, will fund the $1.4 billion purchase of the hardware and home improvement group of Stanley Black & Decker Inc. and some assets of Tong Lung Metal Industry Co. Ltd. from Stanley.

Closing on the hardware and home improvement group acquisition is expected in the first quarter of 2013, and the Tong Lung transaction is expected to close in the second quarter of fiscal 2013.

Spectrum Brands, a Madison, Wis.-based consumer products company, will have secured debt of 2.4 times and total debt of 3.1 times.

Academy Sports repricing

Academy Sports disclosed to lenders on Monday that it is looking to reprice its roughly $836 million covenant-light term loan to Libor plus 325 bps with a step-down to Libor plus 300 bps at 2.2 times secured leverage, according to a market source.

The repriced loan, which launched with a call in the morning, will have a 1.5% Libor floor and 101 soft call protection for one year, the source said.

By comparison, current pricing on the company's term loan is Libor plus 450 bps with a 1.5% Libor floor.

Lead bank, Morgan Stanley Senior Funding Inc., is asking for commitments by Friday, the source added.

With the repricing, existing lenders are getting paid down at par.

Academy Sports is a Katy, Texas-based sports, outdoor and lifestyle retailer.

Smart & Final timing

Smart & Final set a bank meeting for 10:30 a.m. ET on Wednesday to launch its buyout financing credit facility, according to a market source. A size of $870 million surfaced.

The deal consists of a $150 million ABL revolver, a $510 million seven-year first-lien term loan and a $210 million eight-year second-lien term loan, the source remarked.

The company is being acquired for $975 million by Ares Management from Apollo Global Management LLC.

The new credit facility will also be used to refinance existing debt.

Morgan Stanley Senior Funding Inc., Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. are leading the deal.

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

P2 readies deal

P2 Energy Solutions will be holding a bank meeting on Thursday to launch a $355 million credit facility that is being led by Jefferies & Co., according to a market source.

The facility consists of a $25 million revolver, a $220 million first-lien term loan and a $110 million second-lien term loan, the source said.

Proceeds will be used to refinance an existing credit facility and pay a distribution of shareholders.

Total leverage is 5.7 times, the source added.

P2, a Vista portfolio company, is a provider of software and data solutions exclusively serving the upstream oil and gas industry.

Blackboard plans loan

Blackboard set a conference call for 2 p.m. ET on Tuesday to launch a $500 million term loan B-2 that will refinance some of its existing term loan debt that is priced at Libor plus 600 bps with a 1.5% Libor floor, according to a market source.

Bank of America Merrill Lynch, Deutsche Bank Securities Inc. and Morgan Stanley Senior Funding Inc. are leading the transaction.

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

Raven deal surfaces

Raven Power Finance, a Riverstone Holdings LLC portfolio company, will hold a bank meeting on Wednesday to launch a $150 million six-year first-lien term loan B that is being talked at Libor plus 600 bps to 650 bps with a 1.25% Libor floor and an original issue discount of 98, according to a market source.

The loan is non-callable for one year, then at 102 in year two.

UBS Securities LLC is leading the deal that will be used to help fund the purchase of three Maryland coal-fired power plants from Exelon for about $400 million.

The acquisition is expected to close this quarter.

Buffalo allocating soon

Buffalo Gulf Coast Terminals LLC is hoping to allocate its $280 million secured term loan (Ba1/BB+) on Tuesday or Wednesday, after firming the coupon at Libor plus 400 bps, the low end of the Libor plus 400 bps to 425 bps guidance, according to a market source.

The loan still has a 1.25% Libor floor, an original issue discount of 99¾ and 101 hard call protection for one year.

Barclays is leading the deal that will refinance a roughly $275 million term loan priced at Libor plus 600 bps with a 1.5% Libor floor and pay fees and expenses.

With the refinancing, existing lenders will get paid out at 102.

Buffalo Gulf Coast is the owner of Houston Fuel Oil Terminal Co. LLC, a provider of crude and residual fuel oil storage in the Gulf of Mexico.

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