CBS Outdoor, Univision, Sophos, BATS break; Dematic, Atlantic Aviation, Axalta set changes

By Sara Rosenberg

New York, Jan. 17 - CBS Outdoor Americas Inc.'s credit facility hit the secondary market on Friday with the term loan B seen above its original issue discount price, and Univision Communications Inc. and Sophos Ltd. (Shield Finance Co. Sarl) began trading, too.

Also, BATS Global Markets upsized its term loan B, trimmed pricing, added a leverage-based step-down and tightened the original issue discount, and with final terms in place, the deal was able to break for trading in the afternoon.

In other primary news, Dematic upsized its term loan, Atlantic Aviation FBO Inc. modified the offer price on its incremental debt, and Axalta Coating Systems (previously known as DuPont Performance Coatings) added a leverage-based grid to its term loans.

Furthermore, Ikaria Inc., Southwire Co. and Peroxygens revealed timing on their deals, and HarbourVest Partners LP, DAE Aviation Holdings Inc., TCW Group and Tower Automotive Holdings USA LLC joined the calendar.

CBS Outdoor starts trading

CBS Outdoor's credit facility freed up for trading on Friday, with the $800 million seven-year covenant-light term loan B quoted at par ½ bid, 101¼ offered on the open and then it moved to par 5/8 bid, 101 3/8 offered, according to a trader.

Pricing on the B loan is Libor plus 225 basis points with a 0.75% Libor floor and it was sold at an original issue discount of 993/4. There is 101 soft call protection for six months.

During syndication, pricing on the term loan B firmed at the low end of revised talk of Libor plus 225 bps to 250 bps and down from initial talk of Libor plus 250 bps to 275 bps, the discount was tightened from 99½ and the 1% per annum amortization was removed.

The company's $1,225,000,000 senior secured credit facility (Ba1/BB+), which is being done in connection with its initial public offering of common stock, also includes a $425 million five-year revolver.

CBS Outdoor leads

Citigroup Global Markets Inc., Wells Fargo Securities LLC and Deutsche Bank Securities Inc. are leading CBS Outdoor's credit facility.

Proceeds will be used with $800 million of notes to make a payment to parent company CBS Corp. for the contribution of the entities comprising the Outdoor Americas operating segment and for general corporate purposes.

Closing is expected On Jan. 31.

CBS Outdoor is a New York-based lessor of advertising space on out-of-home advertising structures and sites.

Univision hits secondary

Univision's $3,377,000,000 term loan C-4 (B2/B+/B+) began trading as well, with levels quoted at par 7/8 bid, 101 3/8 offered, according to a market source.

Pricing on the loan, which was upsized from $1.5 billion, is Libor plus 300 bps with a 1% Libor floor and it was issued at par. There is 101 soft call protection for six months.

Deutsche Bank Securities Inc., Bank of America Merrill Lynch, Barclays, Credit Suisse Securities (USA) LLC, Wells Fargo Securities LLC, J.P. Morgan Securities LLC, Natixis and Mizuho are leading the deal that will be used to reprice all of the company's existing term loan C-1 and term loan C-2 debt from Libor plus 325 bps with a 1.25% Libor floor.

Originally, only a portion of the C-1 and C-2 loans were going to be repriced, but that was changed when the C-4 loan was upsized.

Univision is a Los Angeles-based Spanish-language media company.

Sophos tops OID

Sophos' bank debt also broke, with the $310 million U.S. seven-year covenant-light term loan and the €75 million seven-year covenant-light term loan quoted at par ¼ bid, 101 offered, according to a trader.

Pricing on the U.S. loan is Libor plus 400 bps and pricing on the euro loan is Euribor plus 425 bps, with both having a 1% floor and 101 soft call protection for six months, and both sold at a discount of 991/2.

During syndication, the U.S. term loan was downsized from $400 million as the euro loan was added to the capital structure, pricing was cut from Libor plus 450 bps and the original issue discount was revised from 99.

Deutsche Bank Securities Inc., HSBC Securities (USA) Inc. and RBC Capital Markets are leading the deal (B) that will refinance an existing term loan, and due to the roughly $10 million of addition debt raised through the recently revised structure, add cash to the balance sheet.

Closing is expected during the week of Jan. 27.

Sophos is an IT security and data protection firm headquartered in Burlington, Mass., and Oxford, England.

BATS reworked

BATS Global Markets lifted its six-year term loan B to $470 million from $450 million, reverse flexed pricing to Libor plus 400 bps from Libor plus 425 bps, added a step-down to Libor plus 375 bps at less than 2.25 times net total leverage, and moved the original issue discount to 99¾ from 99, a market source said.

The term loan B still has a 1% Libor floor and 101 soft call protection for six months.

The company's now $570 million credit facility (B1/BB-) also includes a $100 million three-year revolver, under which less will be drawn at closing due to the term loan upsizing, the source continued.

Commitments were due at 1 p.m. ET on Friday.

BATS frees up

Not too long after the books were closed, BATS' credit facility made its way into the secondary market, with term loan B levels seen at par ¼ bid, 101 offered, a trader remarked.

Bank of America Merrill Lynch, J.P. Morgan Securities LLC and Credit Suisse Securities (USA) LLC are leading the deal that will refinance debt, fund a shareholders distribution and be used for general corporate purposes.

Closing is contingent on the completion of the company's merger with Direct Edge Holdings LLC, a Jersey City, N.J.-based stock exchange operator, which is expected to occur in the first half of this year.

BATS is a Kansas City, Mo.-based operator of securities markets.

Dematic ups size

In more happening, Dematic increased the size of its first-lien covenant-light term loan due Dec. 28, 2019 to $585 million from $570 million by lifting the tack-on component to $50 million from $35 million, according to a market source.

The tack-on will be used for general corporate purposes, while the remaining $535 million will be used to reprice an existing term loan from Libor plus 400 bps with a 1.25% Libor floor.

Pricing on the new term loan remained at Libor plus 325 bps with a 1% Libor floor, an original issue discount of 99½ on the tack-on and a par offer price on the repricing. There is 101 soft call protection for six months.

Lead, Credit Suisse Securities (USA) LLC, was asking for commitments by noon ET on Friday, the source added.

Dematic is an engineering company that provides intelligent warehouse logistics and materials handling solutions.

Atlantic Aviation tweaks deal

Atlantic Aviation moved the original issue discount on its $100 million incremental term B (Ba3/BB-) due June 1, 2020 to 99¾ from 991/2, according to a market source.

As before, the incremental loan is priced at Libor plus 250 bps with a 0.75% Libor floor, in line with the existing term loan B, and there is 101 soft call protection until May 31, 2014, as well as a ticking fee of 50 bps from Feb. 1 until closing.

Barclays and Macquarie Capital (USA) Inc. are leading the deal of which about $65 million will be used to fund the acquisition of five fixed base operations from Galaxy Aviation and the remainder will add cash to the balance sheet.

In connection with this transaction, the New York-based aviation services company is seeking an amendment to its existing credit facility that would allow for the new loan. Lenders are offered a 10 bps consent fee.

Commitments were due by 5 p.m. ET on Friday.

Axalta adds grid

Axalta Coating Systems added a step-down to its $2,283,000,000 covenant-light term loan due Feb. 1, 2020 to Libor plus 275 bps if net total leverage is 4.5 times, and a step-down to its €397 million covenant-light term loan due Feb. 1, 2020 to Euribor plus 300 bps if net total leverage is 4.5 times, according to a market source.

Opening pricing is still Libor plus 300 bps on the U.S. term loan and Euribor plus 325 bps on the euro term loan, and the tranches still include a 1% floor, a par offer price and 101 soft call protection for six months.

Recommitments are due by noon ET on Tuesday, the source remarked.

Barclays, Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc., UBS Securities LLC, Jeffries Finance LLC and SMBC are leading the deal that will be used to reprice an existing U.S. term loan from Libor plus 350 bps with a 1.25% Libor floor, and an existing euro term loan from Euribor plus 400 bps with a 1.25% floor.

Axalta is a Wilmington, Del.-based supplier of vehicle and industrial coating systems.

Ikaria details emerge

Ikaria scheduled a bank meeting for 10 a.m. ET in New York on Wednesday to launch its credit facility that is now known to be sized at $1,295,000,000 - split between a $50 million revolver, an $830 million seven-year covenant-light first-lien term loan and a $415 million eight-year covenant-light second-lien term loan, a source said.

Previously, all that was disclosed on the deal was that it would be this month's business and would include a revolver, first-lien term loan and second-lien term loan.

Commitments are due on Feb. 5, the source added.

Credit Suisse Securities (USA) LLC, Barclays, Goldman Sachs Bank USA and Morgan Stanley Senior Funding Inc. are leading the deal.

Ikaria being acquired

Proceeds from Ikaria's credit facility will be used to help fund its roughly $1.6 billion buyout by Madison Dearborn Partners. Existing Ikaria shareholders, including New Mountain Capital and certain members of the company's management team, will have a minority stake in the company.

Closing is expected this quarter, subject to customary conditions.

Ikaria is a Hampton, N.J.-based provider of proprietary and innovative therapies for the critical care units in hospitals.

Southwire sets meeting

Southwire nailed down timing on the launch of its $1.75 billion senior secured credit facility, with the bank meeting for the transaction set to take place at 9:30 a.m. ET on Wednesday, according to a market source.

The facility consists of a $1 billion five-year asset-based revolver and a $750 million seven-year covenant-light term loan.

Official talk on the deal is not yet out, but filings with the Securities and Exchange Commission have outlined expected revolver pricing Libor plus 150 bps with a 30 bps unused fee, and expected term loan pricing at Libor plus 275 bps with a 0.75% Libor floor.

Bank of America Merrill Lynch, BMO Capital Markets, Wells Fargo Securities LLC and Macquarie Capital are leading the deal.

Southwire buying Coleman

Proceeds from Southwire's credit facility will help fund the acquisition of Coleman Cable Inc. for $26.25 per share in cash in a transaction valued at about $786 million, including the assumption of $294 million in net debt.

Closing is expected this quarter, subject to a majority of Coleman shares being tendered, the expiration or termination of the waiting period under the Hart Scott Rodino Antitrust Improvements Act and other customary conditions.

Southwire is a Carrollton, Ga.-based wire and cable producer. Coleman is a Waukegan, Ill.-based manufacturer of electrical and electronic wire and cable products.

Peroxygens readies launch

Peroxygens emerged with plans to hold a bank meeting at 10:30 a.m. ET on Wednesday to launch the financing that will help fund its roughly $200 million buyout by One Equity Partners from FMC Corp., according to a market source.

Also, it was revealed that the debt will be a $155 million credit facility, comprised of a $20 million five-year revolver and a $135 million six-year first-lien term loan, the source remarked.

Macquarie Capital is leading the deal.

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

Peroxygens is a supplier of Hydrogen Peroxide, persulfate products, peracetic acid and other eco-friendly specialty oxidants.

HarbourVest on deck

HarbourVest set a conference call for 10 a.m. ET on Tuesday to launch a $350 million first-lien covenant-light term loan due January 2021 that is talked at Libor plus 250 bps with a 0.75% Libor floor, a par offer price and 101 soft call protection for six months, according to a market source.

Proceeds will be used to reprice and extend an existing term loan due November 2017 that is priced at Libor plus 375 bps with a 1% Libor floor, and to repay subordinated notes.

Credit Suisse Securities (USA) LLC is leading the deal for which commitments are due on Jan. 28, the source added.

HarbourVest is a Boston-based private equity firm.

DAE coming soon

DAE Aviation will hold a bank meeting at 1:30 p.m. ET on Tuesday to launch a $300 million second-lien term loan (Caa2) will be used to refinance existing 2015 senior notes, according to a market source.

In addition, the company will launch a repricing of its roughly $540 million first-lien term loan (B2) due Nov. 2, 2018, the source said.

Barclays, Bank of America Merrill Lynch and Goldman Sachs Bank USA are leading the deal for the aircraft MRO provider.

TCW joins calendar

TCW Group set a call for Tuesday to launch a $350 million term loan B, according to a market source.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance an existing term loan B.

TCW is a Los Angeles-based asset management firm that specializes in fixed-income, world equity and alternative markets.

Tower Auto plans call

Tower Automotive scheduled a conference call at 2 p.m. ET on Tuesday for credit facility lenders, according to a market source.

Citigroup Global Markets Inc. is leading the transaction.

Further details are not yet available.

Tower Automotive is a Livonia, Mich.-based supplier of automotive metal structural components and assemblies.

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