Tribune, Aramark, United Surgical, CTI Foods break; Ancestry.com makes additional revisions

By Sara Rosenberg

New York, Dec. 17 - Tribune Co., Aramark Corp., United Surgical Partners International Inc. and CTI Foods LLC saw their deals make their way into the secondary market on Monday, and USI Insurance Services' new term loan strengthened a bit from its recent breaking levels.

Moving to the primary, Ancestry.com firmed pricing on its term loan at the wide end of revised talk and sweetened the original issue discount, and Sorenson Communications Inc. pulled its term loan B from market.

Tribune frees up

Tribune's exit financing credit facility began trading on Monday, with the $1.1 billion seven-year term loan (Ba3/BB+) 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 300 basis points with a 1% Libor floor, and it was sold at an original issue discount of 99. There is 101 soft call protection for one year.

Last week, the spread on the loan was reduced from Libor plus 350 bps on strong demand.

In addition to the term loan, the company's $1.4 billion deal includes a $300 million five-year ABL revolver, which, based on court documents, is expected to be priced at Libor plus 150 bps.

J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC and Bank of America Merrill Lynch are the lead banks on the deal, with JPMorgan the left lead on the term loan and Bank of America the left lead on the revolver.

Proceeds will be used by the Chicago-based media company to fund cash plan distributions for some creditors and operations after its plan of reorganization takes effect.

Aramark hits secondary

Aramark's $670 million add-on U.S. term loan C (Ba3/BB) due July 2016 also broke, with levels quoted at par bid, par ½ offered, according to a trader.

Pricing on the loan is Libor plus 325 bps with no Libor floor, in line with existing term loan C pricing, and the new debt was sold at a discount of 993/4, after firming at the tight end of the 99½ to 99¾ talk.

J.P. Morgan Securities LLC, Goldman Sachs & Co., Barclays, Bank of America Merrill Lynch and Wells Fargo Securities LLC are leading the transaction that will be used to refinance about $650 million of term loans due on Jan. 26, 2014.

Aramark is a Philadelphia-based professional services company that provides food, hospitality and facility management services as well as uniform and work apparel.

United Surgical starts trading

United Surgical Partners' $150 million add-on term loan B (B1/B) due 2019 freed up in the afternoon at par 7/8 bid, 101 3/8 offered, after the issue price tightened to par from 991/2, according to a trader.

Pricing on the add-on is Libor plus 475 bps with a 1.25% Libor floor, and there is 101 soft call protection through April 2013.

J.P. Morgan Securities LLC and Barclays are leading the deal that will be used to repay revolver borrowings, pre-fund a pending acquisition and fund a dividend.

United Surgical is an Addison, Texas-based owner and operator of ambulatory surgery centers and surgical hospitals.

CTI Foods tops OID

Another deal to emerge in the secondary was CTI Foods' $45 million incremental term loan B due June 2015, with levels quoted at par bid, 101 offered, a trader said.

Pricing on the loan is Libor plus 350 bps with a 1.5% Libor floor, and it was sold at an original issue discount of 99.49. The spread and floor match existing term loan pricing.

J.P. Morgan Securities LLC is the lead bank on the deal that will be used to fund the acquisition of Custom Food Products, a Carson, Calif.-based developer and manufacturer of protein ingredients serving the foodservice and branded packaged foods market.

CTI is a Wilder, Idaho-based provider of food products to national chain restaurants.

USI Insurance ticks higher

In more trading news, USI Insurance's $1.025 billion seven-year covenant-light term loan B was quoted at 99 7/8 bid, par ¼ offered, up from the 99¾ bid, par 1/8 offered level seen when the debt freed up for trading on Friday, according to a trader.

Pricing on the term loan is Libor plus 400 bps with a 1.25% Libor floor, and it was sold at an original issue discount of 991/2. There is 101 soft call protection for one year.

During syndication, the spread firmed at the tight end of the Libor plus 400 bps to 425 bps talk and the discount was revised from 99.

The company's $1.175 billion credit facility (B1) also includes a $150 million five-year revolver.

Bank of America Merrill Lynch, Morgan Stanley Senior Funding Inc., Citigroup Global Markets Inc., Goldman Sachs & Co., RBC Capital Markets LLC and UBS Securities LLC are leading the deal that will be used with $630 million of bonds to fund Onex Corp.'s purchase of the Briarcliff Manor, N.Y.-based insurance broker from GS Capital Partners VI Fund LP for about $2.3 billion.

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

Biomet holds steady

Biomet Inc.'s $730 million add-on term loan was seen trading at par ¼ bid, par ¾ offered, in line with where the debt broke for trading late Friday, according to a trader.

Pricing on the add-on matches existing extended term loan pricing at Libor plus 375 bps, and the new debt was sold at par.

During syndication, the add-on was upsized first to $500 million from $250 million, and then to its final amount, and the offer price was revised from original issue discount talk of 99½ to 993/4.

Bank of America Merrill Lynch, Citigroup Global Markets Inc., Barclays Capital Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC and Wells Fargo Securities LLC are leading the deal that is being used to take out non-extended term loan debt.

Biomet is a Warsaw, Ind.-based designer, manufacturer and marketer of products used primarily by musculoskeletal medical specialists in both surgical and non-surgical therapy.

Ancestry.com updates terms

Over in the primary, Ancestry.com set pricing on its $670 million seven-year covenant-light term loan at Libor plus 575 bps, versus revised talk of Libor plus 550 bps to 575 bps and initial talk of Libor plus 475 bps to 500 bps, and widened the original issue discount to 96 from revised talk of 98 to 99, and initial talk of 99, according to a market source.

The loan still has a 1.25% Libor floor, and includes 101 soft call protection for one year, a feature that was added last week.

The $720 million senior secured deal (B1/B+) also provides for a $50 million five-year revolver.

Included in the credit agreement is a 75% excess cash flow sweep with step-downs to 50% at total secured leverage of 3 times and 25% at total secured leverage of 2 times, a $25 million general dividends basket, 25 bps of MFN with no sunset provision, and an accordion feature of $150 million plus an additional amount up to 3.5 times total net secured leverage.

Commitments were due by 2 p.m. ET on Monday, the source continued.

Ancestry.com leads

Barclays, Morgan Stanley Senior Funding Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and RBC Capital Markets LLC are the lead banks on Ancestry.com's credit facility.

Proceeds, along with $300 million of senior unsecured notes and equity, will fund the purchase of the company by Permira Funds for $32.00 per share in cash in a transaction valued at $1.6 billion.

In order for the transaction to close, a judge is requiring the company to provide two additional areas of disclosure, a source remarked.

However, the anticipation is that the disclosures will not get in the way of the Dec. 27 shareholder vote and that the deal is still on track, the source added.

Closing is expected in early 2013, subject to stockholder approval and other customary conditions.

Leverage is 3.9 times on a senior secured basis and 5.6 times total.

Ancestry.com is a Provo, Utah-based online family history resource.

Sorenson pulls loan

Sorenson Communications withdrew its $200 million seven-year term loan B (B3/B) that was being marketed with price talk of Libor plus 725 bps with a 1.5% Libor floor and an original issue discount of 99, and included 101 soft call protection for one year, according to market sources.

In addition, the company postponed its $400 million first-lien senior secured notes offering.

The delay in marketing is being attributed to an action pending by the Federal Communications Commission on CaptionCall, one of Sorenson's businesses, one source remarked.

J.P. Morgan Securities LLC, Goldman Sachs & Co. and Deutsche Bank Securities Inc. were leading the financing that would have been used to repay an existing term loan and fund the cash portion of a notes exchange offer.

Sorenson is a Salt Lake City-based provider of Video Relay telecommunication and interpreting and CaptionCall telephone service for deaf and the hard-of-hearing.

Spectrum Brands closes

In other news, Spectrum Brands Holdings Inc. completed its $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, according to a news release.

To fund the transaction, Spectrum Brands got $800 million of senior secured term loans (Ba3/B/BB-) comprised of a $700 million U.S. tranche and a C$100 million tranche.

Pricing on the U.S. loan is Libor plus 325 bps and pricing on the Canadian loan is BA plus 375 bps, with both tranches having a 1.25% floor and 101 soft call protection for one year, and both sold at an original issue discount of 99.

During syndication, pricing on the U.S. tranche was reduced from talk of Libor plus 350 bps to 375 bps and pricing on the Canadian tranche firmed at wide end of the BA plus 350 to 375 bps guidance.

Deutsche Bank Securities Inc. and Barclays led the deal.

Spectrum Brands is a Madison, Wis.-based consumer products company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.