Academy, Spectrum Brands, Retail Solutions, Methanol break; Cengage withdraws repricing

By Sara Rosenberg

New York, June 16 – Academy Ltd. (Academy Sports + Outdoors), Spectrum Brands Inc. and Retail Solutions Group all freed up for trading on Tuesday, and Methanol Holdings (Trinidad) Ltd. broke after reducing the size of its term loan B, setting the spread at the high end of talk and widening the original issue discount.

In other news, Cengage Learning Acquisitions Inc. pulled its repricing proposal from market, and Protection 1 (Apollo Security Services Borrower LLC) and Lindblad Expeditions Inc. moved up the commitment deadlines on their deals.

Furthermore, First Advantage (STG-Fairway Acquisitions Inc.) and CareCentrix Inc. released pricing guidance with launch, Bluestem Brands Inc. disclosed original issue discount talk on its incremental term loan, and Six Flags Entertainment Corp. and Belcan Corp. (Propulsion Acquisition LLC) emerged with new deal plans.

Academy starts trading

Academy’s credit facility broke for trading on Tuesday, with the $1,825,000,000 seven-year term loan B (B2/B) quoted at par bid, par ½ offered, according to a trader.

Pricing on the B loan is Libor plus 400 basis points with a 1% Libor floor, and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for one year.

During syndication, pricing on the term loan B was raised from talk of Libor plus 350 bps to 375 bps, and the call protection was extended from six months.

The company’s $2,475,000,000 credit facility also includes a $650 million ABL revolver.

Morgan Stanley Senior Funding Inc., KKR Capital Markets, Goldman Sachs Bank USA, Barclays, J.P. Morgan Securities LLC, Mizuho and Wells Fargo Securities LLC are leading the term loan B. JPMorgan is the left lead arranger on the revolver.

Proceeds, along with cash on hand, will be used by the Katy, Texas-based sports, outdoor and lifestyle retailer to refinance all of its existing debt and fund a one-time dividend.

Spectrum frees up

Spectrum Brands’ credit facility also hit the secondary market, with the $1.45 billion seven-year covenant-light term loan seen at par bid, par ¼ offered and the C$75 million seven-year covenant-light term loan seen at par bid, par ½ offered, a trader remarked.

Pricing on the U.S. term loan is Libor plus 300 bps with a 25 bps step-down at 2 times net first-lien leverage and a 0.75% Libor floor. The debt was issued at a discount of 99.75 and has 101 soft call protection for six months.

The Canadian term loan is priced at BA plus 350 bps with a 0.75% floor and was sold at an original issue discount of 99. This tranche also has 101 soft call protection for six months.

Recently, the spread on the U.S. term loan finalized at the wide end of the Libor plus 275 bps to 300 bps talk, the step-down was added, and the discount was modified from 99.5, and pricing on the Canadian term loan firmed at the low end of the BA plus 350 bps to 375 bps talk.

Spectrum repaying debt

Proceeds from Spectrum Brands’ new credit facility (BB/BB+), which also includes a $500 million revolver and a €300 million seven-year covenant-light term loan, will be used to refinance an existing $400 million ABL revolver, about $1.58 billion in term loans and $300 million of 6.75% notes due 2020.

The euro term loan is priced at Euribor plus 275 bps with a 0.75% floor and was issued at a discount of 99.75. This debt has 101 soft call protection for six months.

During syndication, pricing on the euro term loan was set at the low end of the Euribor plus 275 bps to 300 bps and the discount was tightened from 99.5.

Deutsche Bank Securities Inc. and Credit Suisse Securities (USA) LLC are leading the deal that is expected to close on June 23.

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

Retail Solutions breaks

Retail Solutions Group’s credit facility began trading as well, with the $150 million seven-year term loan B quoted at 99¼ bid, par ¼ offered, according to a trader.

Pricing on the term loan is Libor plus 525 bps with a 0.75% Libor floor, and it was sold at an original issue discount of 99. There is 101 soft call protection for one year.

During syndication, the spread on the term loan was lifted from Libor plus 500 bps, the Libor floor was lowered from 1%, and the call protection was extended from one year.

The company’s $165 million credit facility (B3/B) also includes a $15 million revolver.

Jefferies Finance LLC, Macquarie Capital (USA) Inc. and Nomura are leading the deal that will be used to fund a distribution to shareholders and to capitalize the company.

Retail Solutions Group is a provider of omni-channel solutions for mid-sized and large retailers. The company is being spun off from Epicor Software Corp. into a separate privately held company under common ownership by funds advised by Apax Partners. Completion of the spinoff is expected this month.

Methanol reworked, trades

Methanol Holdings trimmed its seven-year term loan B (Ba3) to $290 million from $300 million, firmed pricing at Libor plus 350 bps, the wide end of the Libor plus 325 bps to 350 bps talk, and revised the original issue discount to 99 from 99.5, according to a market source.

As before, the term loan has a 25 bps pricing step-down based on leverage, a 0.75% Libor floor and 101 soft call protection for six months.

The company’s now $590 million credit facility also includes a $300 million five-year revolver.

With final terms in place, the term loan B freed up for trading on Tuesday and levels were seen at 99 bid, 99½ offered, a second source added.

JPMorgan and Morgan Stanley Senior Funding are leading the deal that will be used to refinance existing debt and for general corporate purposes.

Methanol Holdings is a Couva, Trinidad-based producer, marketer and distributor of methanol.

Cengage pulls loan

In more happenings, Cengage Learning withdrew from market the repricing of its $2,031,000,000 first-lien covenant-light term loan due March 31, 2020 since “the repricing market has softened in the past few weeks,” an informed source told Prospect News.

Talk on the repricing was Libor plus 450 bps to 475 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, versus current pricing of Libor plus 600 bps with a 1% Libor floor.

Credit Suisse Securities was leading the deal.

Cengage is a Stamford, Conn.-based provider of teaching, learning and research services for the academic, professional and library markets.

Protection 1 shutting early

Protection 1 changed the commitment deadline on its $1.45 billion credit facility to noon ET on Thursday from 5 p.m. ET on June 23, a market source said.

The facility consists of a $95 million revolver (B1/B), a $1,055,000,000 six-year first-lien covenant-light term loan (B1/B) talked at Libor plus 400 bps with a 1% Libor floor, a discount of 99 and 101 soft call protection for six months, and a $300 million seven-year second-lien covenant-light term loan (Caa1/CCC+) talked at Libor plus 875 bps with a 1% Libor floor, a discount of 98 and call protection of 102 in year one and 101 in year two.

Credit Suisse Securities, Barclays, Deutsche Bank Securities, Jefferies Finance, RBC Capital Markets and Goldman Sachs Bank USA are leading the deal.

Proceeds will be used to help fund the buyout of Protection 1 by Apollo Global Management LLC and combination with ASG Security, which is also being purchased by Apollo, and to refinance existing debt.

Closing on the buyout is expected mid-year.

Lawrence, Kan.-based Protection 1 and Beltsville, Md.-based ASG are security and monitoring companies.

Lindblad revises deadline

Lindblad Expeditions accelerated the commitment deadline on its $150 million seven-year first-lien term loan (B2/BB+) to 5 p.m. ET on Thursday from 5 p.m. ET on June 23, according to a market source.

The term loan is talked at Libor plus 500 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

Prior to the deal’s June 8 bank meeting, spread guidance on the loan had been Libor plus 550 bps, but talk went out at the tighter Libor plus 500 bps level at the bank meeting due to strong early demand for the debt and the receipt of a 1 recovery rating from Standard & Poor’s.

Credit Suisse Securities is leading the deal that will be used to help fund the acquisition of the company by Capitol Acquisition Corp. II for about $439 million.

Lindblad Expeditions is a New York-based expedition cruising and extraordinary adventure travel company.

First Advantage sets talk

Also in the primary market, First Advantage held its lender call, launching its $485 million seven-year covenant-light first-lien term loan with talk of Libor plus 475 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, according to a market source.

Commitments are due at 5 p.m. ET on June 25, the source said.

Bank of America Merrill Lynch is leading the first-lien term loan, which will be used with a new second-lien facility to refinance existing debt and fund a dividend to shareholders.

First Advantage is a St. Petersburg, Fla.-based provider of talent acquisition services, including background screening, recruiting, skills assessment and skills-related tax services.

CareCentrix reveals guidance

CareCentrix disclosed talk of Libor plus 475 bps to 500 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months on its $175 million seven-year term loan that launched with a bank meeting in the afternoon, according to a market source.

The company’s $205 million credit facility also includes a $30 million five-year revolver.

Commitments are due on June 30, the source remarked.

RBC Capital Markets and Citizens Bank are leading the deal that will be used to refinance existing debt and for general corporate purposes.

Pro forma for the transaction, senior and total net leverage will be 3.1.

CareCentrix is a Hartford, Conn.-based home health cost containment company.

Bluestem reveals OID

Bluestem Brands came out with original issue discount talk of 99 on its fungible $280 million incremental first-lien term loan (B2/B+) due Nov. 7, 2020 that launched with a lender call in the afternoon, a source remarked.

Pricing on the incremental term loan is Libor plus 750 bps with a 1% Libor floor, in line with pricing on the company’s existing $279 million term loan, and all of the debt is getting 101 soft call protection for six months.

Commitments are due on June 25.

Credit Suisse Securities and Morgan Stanley Senior Funding are leading the loan that will be used with cash on hand to fund the acquisition of Orchard Brands Corp. for $410 million in cash.

Closing is expected in the third quarter, subject to regulatory approval and financing.

Bluestem is an Eden Prairie, Minn.-based online retailer of a broad selection of name brand and private label general merchandise serving low- to middle-income consumers. Orchard Brands is a multichannel retailer of apparel and home products focused on serving women and men above the age of 50.

Six Flags readies deal

Six Flags surfaced with plans to hold a lender call at 11 a.m. ET on Wednesday to launch a $950 million credit facility, according to a market source.

The facility consists of a $250 million revolver, and a $700 million seven-year term loan B talked at Libor plus 275 bps with a 0.75% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, the source said.

Wells Fargo Securities is leading the deal that will be used to refinance an existing senior secured credit facility that includes a $200 million revolver and a roughly $570 million term loan B, and for general corporate purposes, including share repurchases.

Six Flags is a Grand Prairie, Texas-based regional theme park company.

Belcan joins calendar

Belcan set a bank meeting for 1 p.m. ET in New York on Thursday to launch a $225 million credit facility that consists of a $190 million seven-year first-lien term loan (B3/B) and a $35 million ABL revolver, a market source said.

The term loan has 101 soft call protection for six months. Price talk is still to be determined.

Commitments are due at 5 p.m. ET on July 8, the source added.

Credit Suisse Securities and PNC Capital Markets are leading the term loan, and PNC is sole lead on the revolver.

Proceeds will be used to fund the buyout of the company by AE Industrial Partners LLC, which is expected to close by the third quarter.

Belcan is a Cincinnati-based engineering services and technical staffing provider in the aerospace, power generation and industrial markets.

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