Spirit AeroSystems, ProQuest free up; Freedom, Global Tel*Link tweak deals; Alon withdrawn

By Sara Rosenberg

New York, April 12 - Spirit AeroSystems Inc.'s credit facility made its way into the secondary market on Thursday, and its well-received term loan was seen quoted above its original issue discount price.

Also breaking for trading was ProQuest LLC's credit facility after the coupon on its term loan B was finalized at the wide end of guidance.

In other loan news, Freedom Group Inc. reverse flexed pricing on its covenant-light term loan B, Global Tel*Link Corp. increased its term loan spread and Alon USA Energy Inc. pulled its deal from market.

Additionally, Emdeon Inc. released price talk on its add-on/ repricing transaction and Seitel Inc. disclosed call protection details on its loan as the deals launched to investors during the session, and Hub International Ltd. came out with credit facility amendment and extension plans.

Spirit AeroSystems breaks

Spirit AeroSystems' credit facility freed up for trading on Thursday, with the $550 million seven-year term loan B quoted at par bid, par ½ offered and then it moved up to par ½ bid, par ¾ offered, according to a trader.

Pricing on the B loan is Libor plus 300 basis points with a step-down to Libor plus 275 bps at less than 1.0 times senior secured leverage by Dec. 31, 2012. There is a 0.75% Libor floor and 101 soft call protection for one year, and the debt was sold at an original issue discount of 991/2.

During syndication, the pricing step-down was added and the discount firmed at the low end of the 99 to 99½ guidance.

The company's $1.2 billion credit facility (Ba1) also includes a $650 million five-year revolver that has pricing ranging from Libor plus 175 bps to 250 bps based on a leverage grid.

Spirit refinancing debt

Proceeds from Spirit AeroSystems' credit facility will be used to replace an existing $650 million revolver due 2014 and repay term loan borrowings that mature in 2013 and 2016.

Bank of America Merrill Lynch, Scotia Capital (USA) Inc., Citigroup Global Markets Inc., RBC Capital Markets LLC, RBS Securities Inc. and Morgan Stanley Senior Funding Inc. are the lead banks on the deal.

Spirit AeroSystems is a Wichita, Kan.-based non-OEM designer and manufacturer of aerostructures for commercial aircraft.

ProQuest tops OID

ProQuest's credit facility hit the secondary market as well, with the $150 million six-year term loan B quoted at 99½ bid, par offered, according to a market source.

Early in the day, it was announced that pricing on the B loan firmed at Libor plus 475 bps, the high end of the Libor plus 450 bps to 475 bps talk, the source said. As initially proposed, the deal has a 1.25% Libor floor and 101 soft call protection for one year, and was sold at an original issue discount of 99.

The company's $190 million senior secured credit facility (Ba3/B+) also provides for a $40 million five-year revolver.

Morgan Stanley Senior Funding Inc., Bank of America Merrill Lynch and RBC Capital Markets LLC are leading the deal that is being used to refinance an existing first-lien credit facility and for general corporate purposes.

ProQuest is an Ann Arbor, Mich.-based electronic publisher and microfilm publisher.

Freedom trims coupon

On the primary side, Freedom Group lowered pricing on its $330 million seven-year covenant-light term loan B to Libor plus 425 bps from Libor plus 450 bps, while leaving the 1.25% Libor floor, original issue discount of 99 and 101 soft call protection for one year intact, according to a market source.

Lead banks, Bank of America Merrill Lynch, Deutsche Bank Securities Inc. and RBC Capital Markets LLC, were seeking commitments by Thursday.

Proceeds will be used to repurchase $245.2 million of 11¼%/11¾% senior PIK notes due 2015 at FGI Holding Co. and $247.5 million of 10¼% senior secured notes due 2015 at FGI Operating Co. LLC.

Other funds for the refinancing will come from $250 million of senior secured bonds that priced at par to yield 7 7/8%.

The tender offers for the notes will expire on April 27.

Freedom Group is a Madison, N.C.-based designer, manufacturer and marketers of firearms, ammunition and related products for the hunting, shooting sports, law enforcement and military markets.

Global Tel lifts pricing

Global Tel*Link increased the coupon on its $620 million first-lien term loan due December 2017 to Libor plus 475 bps from Libor plus 450 bps and left the .25% Libor floor and 101 repricing protection for one year unchanged, according to a market source.

Credit Suisse Securities (USA) LLC and UBS Securities LLC are the lead banks on the deal that is expected to allocate early next week.

Proceeds will be used to reprice an originally sized $635 million term loan from Libor plus 550 bps with a 1.5% Libor floor. The debt was obtained in December 2011 at an original issue discount of 98.

Lenders will be paid down at 101 as a result of existing soft call protection.

Global Tel*Link is a Mobile, Ala.-based correctional communications technology company.

Alon cancels loan plans

Alon USA pulled its $700 million six-year secured term loan B (B2/B+) from market as the terms that lenders were interested in were not attractive for an opportunistic refinancing, according to a market source.

Initial talk on the loan had been Libor plus 525 bps with a 1.25% Libor floor, an original issue discount of 98 and 101 soft call protection for one year.

However, it was later said that the company was exploring financing alternatives for the term loan, which sources thought could include a flex up in pricing and a reduction in size.

Goldman Sachs & Co. was leading the deal that was going to be used to repay an existing roughly $425 million term loan, to retire Alon Refining Krotz Springs Inc.'s $216.5 million of 13½% senior secured notes due 2014 and for general corporate purposes.

The Dallas-based refiner and marketer of petroleum products terminated its bond tender offer on Thursday.

Emdeon talk emerges

Emdeon held a conference call on Thursday afternoon to launch its $60 million add-on term loan and repricing of existing debt, and shortly before the call took place, price talk was announced, according to sources.

The add-on term loan is talked at Libor plus 375 bps with a 1.25% Libor floor, an offer price of par and 101 soft call protection for one year, sources said.

And, the existing roughly $1.2 billion term loan is talked at Libor plus 375 bps with a 1.25% floor, versus current pricing of Libor plus 550 bps with a 1.25% floor, sources continued, adding that this debt will also have 101 soft call protection for one year.

With the repricing news, the existing term loan moved down to 101 bid, 101 3/8 offered form 101 1/8 bid, 101½ offered since the debt is getting paid down at 101 because of existing call protection, a trader explained.

Emdeon lead banks

Bank of America Merrill Lynch, Citigroup Global Markets Inc. and Barclays Capital Inc. are the lead banks on Emdeon's add-on and repricing deal.

Proceeds from the new debt will be used for general corporate purposes, including potential acquisitions.

Commitments are due on April 17 and closing is anticipated to talk place sometime this month.

Emdeon is a Nashville-based provider of health care revenue and payment cycle management and clinical information exchange services.

Seitel call premiums

Seitel also launched a deal during market hours, at which time it was revealed that the company's $275 million six-year term loan B (B3) includes hard call protection of 102 in year one and 101 in year two, according to a market source.

Price talk on the loan came out earlier in the week at Libor plus 700 bps with a 1.5% Libor floor and an original issue discount of 98 to 99.

Commitments are due on April 26, the source said.

Wells Fargo Securities LLC and Jefferies & Co. are the lead banks on the deal that will be used to repurchase the company's $275 million of senior notes due Feb. 14, 2014.

Seitel is a Houston-based provider of seismic services to the energy industry.

Osmose launches

Another company to hold a bank meeting on Thursday was Osmose Holdings Inc., and lenders are being asked to place their orders towards the $265 million credit facility (B+) by April 25, according to a market source.

As was previously reported, the facility consists of a $25 million five-year revolver and a $240 million six-year first-lien term loan that is talked at Libor plus 550 bps with a 1.25% Libor floor, an original issue discount of 98 and 101 soft call protection for one year.

Credit Suisse Securities (USA) LLC and Macquarie Capital are the lead banks on the deal that will be used, along with $189 million of equity, to fund the acquisition of the company by Oaktree Capital Management.

Osmose, a Buffalo, N.Y.-based provider of wood preservation technology as well as utility and railroad asset management, will have total leverage of 3.5 times.

HUB amends and extends

In more loan happenings, Hub International set a conference call for 11 a.m. ET on Friday to launch an amendment and extension proposal, with details on the transaction expected to be announced on the call, according to a market source.

Existing senior secured term loan lenders were invited to participate in the call, the source remarked.

Morgan Stanley Senior Funding Inc. is the lead bank on the deal.

Hub is a Chicago-based insurance company.

Landry's fills out

Landry's Inc.'s recent credit facility changes worked to attract investors, causing the $1.2 billion credit facility (B1) to reach oversubscription levels ahead of Thursday's 5 p.m. ET recommitment deadline, a market source told Prospect News.

The facility consists of a $200 million five-year revolver priced at Libor plus 400 bps and a $1 billion six-year term loan B priced at Libor plus 525 bps with a 1.25% Libor floor, an original issue discount of 98½ and 101 soft call protection for one year.

On Wednesday, the revolver was downsized from $250 million, the term loan B was upsized from $950 million with the spread increasing from Libor plus 475 bps, and a $200 million five-year term loan A was eliminated.

Also, amortization on the B loan was sweetened to 1% in year one and 2½% thereafter, from just 1% per year, and the excess cash flow sweep was changed to 75%, with a step-down to 50% when senior secured leverage is less than 3.0 times, from just 50% previously.

Landry's repaying debt

Proceeds from Landry's credit facility will be used to refinance a $231 million term loan and $100 million revolver at Landry's, a $193 million term loan and $15 million revolver at Morton's Restaurant Group Inc., and other debt, including $655 million of 11.625% senior secured notes due 2015 at Landry's.

To make up for the eliminated term loan A, the company increased a carve-out for senior unsecured notes to $400 million from $200 million.

And, as a result of the term loan B upsizing, the company will draw $140 million under the revolver, down from a initially planned amount of $190 million.

Jefferies & Co. is leading the deal.

Landry's is a Houston-based full-service restaurant, hospitality and entertainment company.

International Lease closes

International Lease Finance Corp. completed its $550 million senior secured term loan (Ba3/NA/BB) that is priced at Libor plus 375 bps with a 1% Libor floor, and was sold at an original issue discount of 991/2, according to a news release.

Bank of America Merrill Lynch, Citigroup Global Markets Inc. and Goldman Sachs & Co. led the deal that was used to refinance an existing $550 million senior secured term loan due March 17, 2016, which is essentially the same maturity as the new term loan.

Pricing on the existing loan was Libor plus 500 bps with a 2% Libor floor.

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

Skilled Healthcare wraps

Skilled Healthcare Group Inc. closed on its $100 million add-on senior secured term loan B (B1) due April 9, 2016 that is priced at Libor plus 525 bps with a 1.5% Libor, according to a news release. There is 101 soft call protection for one year, and it was sold at an original issue discount of 98.

Pricing on the loan came at the low end of the Libor plus 525 bps to 550 bps talk.

With the add-on, the company repriced its existing roughly $344 million term loan B from Libor plus 375 bps with a 1.5% floor to match the pricing on the new borrowings, and 101 soft call protection for one year was added to this debt as well. Also, the existing revolver now has pricing ranging from Libor plus 425 bps to 450 bps based on leverage.

J.P. Morgan Securities LLC and Credit Suisse Securities (USA) LLC led the deal that is being used with revolver borrowings to redeem $130 million 11% senior subordinated notes due Jan. 15, 2014.

Skilled Healthcare is a Foothill Ranch, Calif.-based operator of skilled nursing facilities, assisted living facilities, rehabilitation therapy and hospice businesses and home health care.

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