Sedgwick, ADS Waste, Caraustar break; YRC, Allied Security reworked; Fieldwood ups deadline

By Sara Rosenberg

New York, Feb. 11 - Sedgwick Inc.'s credit facility freed up for trading on Tuesday, and deals from ADS Waste Holdings Inc. and Caraustar Industries Inc. hit the secondary as well.

Over in the primary, YRC Worldwide Inc. lifted pricing on its term loan and sweetened the call protection, and Allied Security Holdings LLC (AlliedBarton) lowered spreads on its term loans while also tightening the offer price on its second-lien tranche.

Also, Fieldwood Energy LLC moved up the commitment deadline on its add-on term loans, and Accellent Inc., Aspen Dental Management Inc., Metaldyne LLC and Blue Coat Systems Inc. set talk on their deals with launch.

Furthermore, Wesco Aircraft Holdings Inc. disclosed timing on its term loan B, and International Lease Finance Corp., SMG (Stadium Management Group), Synarc-BioCore Holdings LLC, American Capital Ltd., LANDesk Software, Bellisio Foods Inc. and TNS Inc. emerged with deal plans.

Sedgwick starts trading

Sedgwick's credit facility broke for trading on Tuesday, with one trader quoting the $1,085,000,000 seven-year first-lien term loan (B1/B) at 99¾ bid, par offered and the $445 million eight-year second-lien term loan (Caa1/CCC+) at 101 bid, 102 offered, and another trader quoting the first-lien at par bid, par ¼ offered.

Pricing on the first-lien term loan is Libor plus 275 basis points with a 1% Libor floor and it was sold at an original issue discount of 993/4. There is 101 soft call protection for six months.

The second-lien term loan is priced at Libor plus 575 bps with a 1% Libor floor and was sold at a discount of 991/2. This tranche has a call protection of 102 in year one and 101 in year two.

During syndication, the first-lien term loan was upsized from $1.02 billion, pricing was lowered from Libor plus 325 bps and the discount was revised from 991/2, and the second-lien term loan was downsized from $510 million, the spread was flexed from Libor plus 675 bps and the discount was tightened from 99.

The company's $1,655,000,000 credit facility also includes a $125 million five-year revolver (B1/B).

Sedgwick being acquired

Proceeds from Sedgwick's credit facility and equity will be used to fund its buyout by KKR and management for about $2.4 billion from Hellman & Friedman LLC and Stone Point Capital LLC.

UBS Securities LLC, Deutsche Bank Securities Inc., KKR Capital Markets, Mizuho, Morgan Stanley Senior Funding Inc., MCS, Goldman Sachs Bank USA and Macquarie Capital are leading the deal, with UBS the left lead on the first-lien loan and Deutsche Bank the left lead on the second-lien loan.

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

Sedgwick is a Memphis, Tenn.-based provider of technology-enabled claims and productivity management services.

ADS Waste frees up

ADS Waste's $1,782,000,000 covenant-light term loan due October 2019 began trading as well, with levels seen at par 3/8 bid bid, par ¾ offered, according to a trader.

Pricing on the term loan is Libor plus 300 bps with a 0.75% Libor floor and it was issued at par. There is 101 soft call protection for six months.

During syndication, pricing on the loan was increased from Libor plus 275 bps.

Deutsche Bank Securities Inc. is leading the deal that will be used to reprice an existing term loan from Libor plus 300 bps with a 1.25% Libor floor.

ADS Waste is a Jacksonville, Fla.-based provider of integrated, non-hazardous solid waste collection, transfer, recycling and disposal services.

Caraustar tops OID

Caraustar's fungible $100 million first-lien tack-on covenant-light term loan (B2/B+) due May 2019 emerged in the secondary too, with levels quoted at 101 bid, 102½ offered, according to a trader.

Pricing on the loan is Libor plus 625 bps with a 1.25% Libor floor, in line with the existing term loan, and it was sold at an original issue discount of 99. There is call protection of 102 through May 1, 2014 and 101 for a year thereafter.

During syndication, the tack-on loan was upsized from $80 million.

Credit Suisse Securities (USA) LLC is the bookrunner on the deal, and a joint lead arranger with Goldman Sachs Bank USA and Jefferies Finance LLC.

Proceeds will be used to fund a dividend to shareholders.

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

YRC revises deal

Moving to the primary, YRC Worldwide flexed pricing higher on its $700 million five-year senior secured term loan (Ba3/CCC+) to Libor plus 700 bps from Libor plus 675 bps and changed the soft call protection to 102 in year one and 101 in year two from just 101 for one year, according to a market source.

As before, the term loan has a 1% Libor floor and an original issue discount of 99.

Recommitments were due at noon ET on Tuesday and allocations are expected on Wednesday.

The company's $1.15 billion credit facility also includes a $450 million ABL revolver.

Credit Suisse Securities (USA) LLC and RBS Citizens are leading the deal that will be used to refinance existing bank debt.

YRC is an Overland Park, Kan.-based less-than-truckload carrier.

Allied Security flexes

Allied Security trimmed pricing on its $840 million seven-year first-lien covenant-light term loan (B1/B) to Libor plus 325 bps from Libor plus 350 bps, and kept the 1% Libor floor, original issue discount of 99½ and 101 soft call protection for six months intact, according to a market source.

In addition, pricing on the $365 million 71/2-year second-lien covenant-light term loan (Caa1/CCC+) was cut to Libor plus 700 bps from Libor plus 725 bps and the discount was revised to 99¼ from 99, while the 1% Libor floor and call protection of 102 in year one and 101 in year two were unchanged, the source remarked.

The first-lien term loan includes $220 million of delayed-draw debt and the second-lien term loan includes $100 million of delayed-draw debt, and, as before, there is a ticking fee of half the spread from days 46 to 90 and the full spread thereafter on the delayed-draw portions.

Allied Security lead banks

Credit Suisse Securities (USA) LLC, HSBC Securities (USA) Inc., Natixis and SMBC are leading Allied Security's $1.21 billion loan deal.

Recommitments were due at 5 p.m. ET on Tuesday, the source added.

Proceeds will be used to refinance existing debt, fund a dividend and finance a potential acquisition.

Allied Security is a Conshohocken, Pa.-based provider of security officer services.

Fieldwood changes deadline

Fieldwood Energy accelerated the commitment deadline on its fungible $200 million add-on first-lien term loan (BB-) and fungible $425 million add-on second-lien term loan (B-) to 2 p.m. ET on Thursday from Feb. 18 and allocations are now expected on Friday, a market source said.

The add-on first-lien term loan due Sept. 25, 2018 is talked at Libor plus 287.5 bps with a 1% Libor floor, an offer price of 99¾ to par and 101 soft call protection through March 31, and the add-on second-lien term loan is talked at Libor plus 712.5 bps with a 1.25% Libor floor and an offer price of par ½ to 101.

Spreads, floors and call protection match the company's existing term loans.

Closing is targeted for the week of Feb. 24.

Fieldwood funding acquisition

Proceeds from Fieldwood's term loans will be used to help fund the $750 million acquisition of SandRidge Energy Inc.'s Gulf of Mexico and Gulf Coast business.

Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Deutsche Bank Securities Inc., Bank of America Merrill Lynch and Goldman Sachs Bank USA are leading the deal, with Citi the left lead on the first-lien and JPMorgan the left lead on the second-lien.

Fieldwood is a Houston-based acquirer and developer of conventional oil and gas assets.

Accellent guidance

Also in the primary, Accellent came out with talk of Libor plus 350 bps to 375 bps with a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months on its $795 million seven-year first-lien term loan that launched with a bank meeting in the morning, according to a market source.

Also, talk was announced on the company's $260 million eight-year second-lien term loan as Libor plus 725 bps to 750 bps with a 1% Libor floor, a discount of 99 and call protection of 102 in year one and 101 in year two, the source said.

The company's $1.13 billion credit facility also includes a $75 million five-year revolver.

Commitments are due on Feb. 25, the source added.

UBS Securities LLC, Goldman Sachs Bank USA and KKR Capital Markets LLC are the bookrunners on the financing, with UBS the left lead on the first-lien debt and Goldman the left lead on the second-lien debt.

Accellent buying Lake Region

Proceeds from Accellent's credit facility will be used to fund the acquisition of Lake Region Medical for $315 million, plus rollover stockholders will contribute $75 million of their stock for shares of the merged company, to refinance an existing credit facility and to repay all of its senior and senior subordinated notes.

The merged business will be called Lake Region Medical, and the company will continue to use the Accellent brand in marketing the advanced surgical business.

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

Accellent is a Wilmington, Mass.-based provider of fully integrated outsourced manufacturing and engineering services to the medical device industry. Lake Region is an original development manufacturer of minimally invasive devices and delivery systems to the cardiology and endovascular markets.

Aspen Dental discloses talk

Aspen Dental held its bank meeting on Tuesday, launching its $330 million six-year covenant-light term loan B with talk of Libor plus 475 bps with a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months, a market source said.

Also, the company's $40 million five-year revolver was launched at Libor plus 475 bps with a 50 bps undrawn fee and a 100 bps upfront fee, the source remarked.

Commitments are due on Feb. 24.

GE Capital Markets, Jefferies Finance LLC and UBS Securities LLC are leading the $370 million credit facility (B2/B) that will be used to refinance existing debt.

Aspen Dental is an East Syracuse, N.Y.-based provider of denture and dental care services.

Metaldyne details surface

Metaldyne launched on its call a repricing of its $536 million term loan B due Dec. 31, 2018 to Libor plus 325 bps with a 1% Libor floor from Libor plus 375 bps with a 1.25% Libor floor, and its €99 million term loan B due Dec. 31, 2018 to Euribor plus 375 bps with a 1% floor from Euribor plus 525 bps with a 1.25% floor, according to sources.

The repricings are both offered at par and have 101 soft call protection for six months, sources said.

Commitments are due by 5 p.m. ET on Feb. 18.

Bank of America Merrill Lynch is leading the deal for the Plymouth, Mich.-based designer and supplier of metal-formed components and assemblies for powertrain applications.

Blue Coat launches

Blue Coat Systems launched a $746 million covenant-light first-lien term loan due May 2019 with talk of Libor plus 300 bps with a 1% Libor floor and 101 soft call protection for six months, according to a market source.

Of the total amount, $50 million is an add-on that is offered at 99¾ to par, and the remainder is to reprice an existing first-lien term loan from Libor plus 350 bps with a 1% Libor floor. The repricing is offered at par, the source said.

Proceeds from the add-on will be used for general corporate purposes.

Jefferies Finance LLC is leading the deal for which commitments are due on Thursday.

Blue Coat is a Sunnyvale, Calif.-based web security company.

Wesco timing emerges

Wesco Aircraft revealed timing on the launch of its previously announced $525 million term loan B, with the bank meeting set to take place on Wednesday, according to a market source.

Bank of America Merrill Lynch, Barclays, Morgan Stanley Senior Funding Inc. and RBC Capital Markets are leading the deal that will be used with cash on hand and revolver borrowings to fund the acquisition of Haas Group Inc. for $550 million in cash, subject to certain closing adjustments, from the Jordan Co. LP.

The company's existing credit facility will need to be amended to provide for the new term loan B.

Closing is expected by the end of this quarter, subject to customary conditions.

Wesco is a Valencia, Calif.-based provider of comprehensive supply chain management services to the aerospace industry. Haas is a West Chester, Pa.-based provider of chemical supply chain management services to the commercial aerospace, airline, military, energy and other markets.

International Lease plans loan

International Lease scheduled a call for 10 a.m. ET on Thursday to launch a $1 billion seven-year term loan B that has 101 soft call protection for six months, according to a market source.

Deutsche Bank Securities Inc. and Goldman Sachs Bank USA are leading the deal.

Proceeds will be used for general corporate purposes.

International Lease is a Los Angeles-based independent aircraft lessor.

SMG coming soon

SMG will hold a bank meeting at 10 a.m. ET in New York on Wednesday to launch a $325 million credit facility, according to a market source.

The facility consists of a $25 million five-year revolver, and a $300 million six-year first-lien term loan talked at Libor plus 400 bps with a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months, the source said.

Commitments are due on Feb. 26.

Credit Suisse Securities (USA) LLC and Morgan Stanley Senior Funding Inc. are leading the deal that will be used by the West Conshohocken, Pa.-based venue management company to refinance existing loans and fund a dividend.

Synarc-BioCore on deck

Synarc-BioCore scheduled a bank meeting for 10 a.m. ET in New York on Thursday to launch a $365 million credit facility, according to a market source.

The facility consists of a $40 million revolver, a $225 million seven-year first-lien covenant-light term loan with 101 soft call protection for six months, and a $100 million eight-year second-lien covenant-light term loan with call protection of 102 in year one and 101 in year two, the source said.

Commitments are due on Feb. 27.

Credit Suisse Securities (USA) LLC, Jefferies Finance LLC and KeyBanc Capital Markets are leading the deal that will help fund the merger of Newark, Calif.-based CCBR-Synarc and Newton, Pa.-based BioClinica Inc.

Closing is expected this quarter.

Synarc-BioCore is a clinical imaging and patient recruitment company for pharmaceutical and CRO clinical trials.

American Capital joins calendar

American Capital will hold a call on Wednesday to launch a new $450 million term loan B (BB-) that is being led by J.P. Morgan Securities LLC, according to a market source.

The new loan has 101 soft call protection for six months.

Proceeds will be used to refinance an existing $450 million senior secured term loan B priced at Libor plus 300 bps with a 1% Libor floor.

American Capital is a Bethesda, Md.-based private equity firm and global asset manager.

LANDesk schedules meeting

LANDesk Software surfaced with plans to hold a bank meeting at 1:30 p.m. ET on Thursday to launch a $50 million add-on to its first-lien term loan and a new $130 million second-lien term loan, according to a market source.

Including the add-on, the total first-lien term loan size will be $380 million, the source said.

Jefferies Finance LLC is leading the deal that will be used to fund a dividend.

LANDesk is a South Jordan, Utah-based provider of systems lifecycle management and endpoint security, as well as IT service management for desktops, servers and mobile devices.

Bellisio plans call

Bellisio Foods set a call for Thursday afternoon to launch a repricing of its $328 million credit facility that is talked at Libor plus 325 bps to 350 bps with a 1% Libor floor, according to a market source.

The facility consists of a $30 million revolver due August 2018, a $278 million term loan due August 2019 and a $20 million Canadian equivalent term loan due August 2019.

The term loan repricings are talked with 101 soft call protection for six months, the source said.

GE Capital Markets is leading the deal for the Duluth, Minn.-based food company.

TNS readies deal

TNS scheduled a call for 11 a.m. ET on Wednesday to launch a $70 million add-on first-lien term loan priced at Libor plus 400 bps with a 1% Libor floor and a $115 million add-on second-lien term loan priced at Libor plus 800 bps with a 1% Libor floor, according to sources. The spread and floor match the existing term loans.

Original issue discounts on the add-on loans are not yet available, sources said.

SunTrust Robinson Humphrey Inc. and Macquarie Capital (USA) Inc. are leading the $185 million deal that will be used to fund a dividend.

The company needs to amend its existing credit facility to allow for the transaction, and lenders will be offered a 15 bps consent fee, sources added.

Pro forma leverage is 3.5 times through the first-lien and 4.7 times through the second-lien.

TNS is a Reston, Va.-based provider of data communications and interoperability services.

Southwire closes

In other news, Southwire Co., a Carrollton, Ga.-based wire and cable producer, completed its purchase of Coleman Cable Inc., a Waukegan, Ill.-based manufacturer of electrical and electronic wire and cable products, for $26.25 per share, a news release said.

For the transaction, Southwire got a new $1.75 billion senior secured credit facility that consists of a $1 billion five-year asset-based revolver and a $750 million seven-year covenant-light term loan (Ba3/BB+).

Pricing on the term loan is Libor plus 250 bps with a step-down to Libor plus 225 bps when net leverage is less than 2 times. There is a 0.75% Libor floor and 101 soft call protection for six months, and the debt was issued at a discount of 993/4.

During syndication, pricing on the term loan was lowered from talk of Libor plus 275 bps to 300 bps, the step-down was added and the discount was tightened from 991/2.

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

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