Neiman softens on buyout news; Biomet, Steinway revise deadlines; Nine, Pinnacle tweak deals

By Sara Rosenberg

New York, Sept. 9 - Neiman Marcus Group Ltd. Inc.'s term loan softened in trading on Monday as the company announced plans to be bought out by Ares Management LLC and Canada Pension Plan Investment Board.

Over in the primary, Biomet Inc. and Steinway Musical Instruments Inc. accelerated their commitment deadlines, Nine Entertainment Group Pty Ltd. lowered the spread on its term loan B and tightened the original issue discount, and Pinnacle Foods modified the discount price on its incremental term loan.

Also, Fieldwood Energy LLC, CPG International Inc., Air Canada and Belden Inc. talk emerged, Valeant Pharmaceuticals International Inc. launched a repricing, and Allegion U.S. Holding Co. Inc., Topps Co. Inc., Albertsons LLC, Safe Fleet Acquisition Corp., ProPetro Services Inc. and Spotless Holdings are getting ready to bring deals to market.

Neiman dips in trading

Neiman Marcus' term loan was a touch weaker in the secondary market on Monday after news surfaced that the company is being acquired by Ares Management LLC and Canada Pension Plan Investment Board from TPG and Warburg Pincus for $6 billion, including the refinancing of its existing credit facility, according to a market source.

The term loan was quoted at par bid, par ¼ offered, down from par 1/8 bid, par ½ offered on Friday, the source said.

For the buyout, the company has received a commitment for new debt from Credit Suisse, RBC Capital Markets and Deutsche Bank Securities Inc.

Closing is expected in the fourth quarter, subject to regulatory approvals and other customary conditions.

Neiman Marcus is a Dallas-based luxury retailer.

BWIC announced

In more trading happenings, a $79 million Bid Wanted In Competition emerged and market participants are being asked to place their bids by 11 a.m. ET on Tuesday, a trader remarked.

Some of the larger pieces of debt in the portfolio include Emergency Medical Corp.'s term loan B, ServiceMaster's term loan C and Univision Communications Inc.'s extended term loan C-1.

There are about 35 issuers in the portfolio, the trader added.

Steinway moves deadline

Moving to the primary, Steinway Musical is now asking lenders to place their orders for its $290 million loan deal by Wednesday instead of by Friday, according to a market source.

The debt consists of a $190 million six-year first-lien term loan (B1) talked at Libor plus 425 basis points with a 1% Libor floor, a discount of 99½ and 101 soft call protection for one year, and a $100 million seven-year second-lien term loan (Caa1) talked at Libor plus 850 bps with a 1% Libor floor, a discount of 98 and call protection of 103 in year one, 102 in year two and 101 in year three.

Bank of America Merrill Lynch and Deutsche Bank Securities Inc. are the lead banks on the deal.

Proceeds, along with about $225 million of equity, will be used to fund the buyout of the company by Paulson & Co. Inc. for $40 per share, or about $512 million.

With this transaction, the company is also expected to get a $75 million five-year asset-based revolver at Libor plus 175 bps with a 37.5 bps unused fee, filings with the Securities and Exchange Commission have said.

Steinway is a Waltham, Mass.-based musical instruments company.

Biomet shutting early

Biomet revised the commitment deadline on its $865 million covenant-light term loan B (B1/BB-) due July 25, 2017 to 5 p.m. ET on Monday from Wednesday, according to a market source.

The B loan is talked at Libor plus 375 bps with no Libor floor, an original issue discount of 99¼ to 99½ and 101 soft call protection for six months.

The spread and floor are in line with existing extended term loan pricing,

Bank of America Merrill Lynch, Goldman Sachs Bank USA and J.P. Morgan Securities LLC are the arrangers on the deal that will be used to repay the extended euro term loan B.

Biomet is a Warsaw, Ind.-based manufacturer of musculoskeletal biomedical devices.

Nine updates pricing

Nine Entertainment cut pricing on its U.S. dollar equivalent A$200 million first-lien term loan B due Feb. 5, 2020 to Libor plus 300 bps from Libor plus 325 bps and moved the original issue discount to 99¾ from 991/2, according to a market source.

As before, the loan has a 0.75% Libor floor and 101 soft call protection for six months.

Recommitments were due at 3 p.m. ET on Monday, the source remarked.

UBS Securities LLC is leading the deal that will be used to fund the acquisition of WIN Perth.

Nine Entertainment is an Australian diversified media and entertainment group.

Pinnacle modifies OID

Pinnacle Foods tightened the original issue discount on its $525 million incremental term loan (Ba3/BB-) to 98 3/8 from talk of 97½ to 98, according to a market source.

Pricing on the loan remained at Libor plus 250 bps with a step-down to Libor plus 225 bps if total net leverage is less than 4.25 times and a 0.75% Libor floor.

Allocations are expected to go out on Tuesday, the source continued.

Bank of America Merrill Lynch, Barclays, UBS Securities LLC, Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc. and Macquarie Capital are leading the deal that will be used with cash on hand to fund the $580 million acquisition of the Wish-Bone salad dressings business from Unilever plc.

Closing is expected late in the third quarter or early in the fourth quarter.

Pinnacle Foods is a Parsippany, N.J.-based manufacturer and distributor of branded packaged foods.

Fieldwood launches

Also on the primary front, Fieldwood Energy held its bank meeting on Monday, and with the event, price talk on the $900 million senior secured five-year covenant-light first-lien term loan and the $1.725 billion seven-year second-lien term loan was released, according to a market source.

The first-lien term loan is talked at Libor plus 300 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and the second-lien term loan is talked at Libor plus 600 bps to 625 bps with a 1.25% Libor floor, an original issue discount of 98 to 99 and call protection of non-callable for one year, then at 102 in year two and 101 in year three, the source said.

The company's $3.625 billion credit facility also includes a $1 billion five-year ABL revolver.

Commitments are due at 5 p.m. ET on Sept. 19.

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, which is expected to close on Sept. 30, with Citi left lead on the first-lien loan and JPMorgan left lead on the second-lien loan.

Proceeds will be by the Houston-based acquirer and developer of conventional oil and gas assets to help fund the $3.75 billion acquisition of Apache Corp.'s Gulf of Mexico shelf business.

CPG sets guidance

CPG International launched with a bank meeting in the morning its $625 million seven-year term loan B (B2) with talk of Libor plus 400 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

Commitments are due on Sept. 20, the source remarked.

The company is also getting a $125 million five-year ABL revolver and a $315 million bridge loan.

Barclays, J.P. Morgan Securities LLC, Deutsche Bank Securities Inc., RBS Capital Markets and UBS Securities LLC are leading the deal that will be used to help fund the buyout of the company by Ares Management LLC and Ontario Teachers' Pension Plan from AEA Investors LP.

Closing is subject to regulatory approval and other customary conditions.

Senior secured leverage is 4.5 times and total leverage is 6.7 times.

CPG is a Scranton, Pa.-based manufacturer of highly engineered low-maintenance building materials.

Air Canada reveals talk

Air Canada came out with talk of Libor plus 450 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months on its $700 million six-year term loan B that launched with a call, a market source said.

The company's $800 million senior secured credit facility (B2/B+/BB) also includes a $100 million four-year revolver.

Commitments are due on Sept. 17, the source continued.

Citigroup Global Markets inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc. and TD Securities (USA) LLC are leading the deal that will be used with $300 million of secured notes to refinance existing debt, including 9¼% senior secured notes due 2015, 10 1/8% senior secured notes due 2015 and 12% senior second-lien notes due 2016.

The tender offers for the notes expire on Sept. 18.

Air Canada is a Montreal-based airline company.

Belden pricing

Belden launched on Monday its $250 million seven-year covenant-light term loan B with talk of Libor plus 275 bps with a 0.75% Libor floor, an original issue discount of 99 to 99½ and 101 soft call protection for six months, according to a market source.

The company's $650 million credit facility also provides for a $400 million ABL revolver.

Wells Fargo Securities LLC and J.P. Morgan Securities LLC are leading the deal that will be used to refinance existing debt.

Belden is a St. Louis-based designer, manufacturer and seller of signal transmission solutions for industrial automation, data centers, broadcast studios and aerospace markets.

Valeant repricing

Valeant Pharmaceuticals held a call during the session to launch a repricing of its $995 million term loan C due Dec. 11, 2019 and $1.294 billion term loan D due Feb. 13, 2019 to Libor plus 300 bps from Libor plus 362.5 bps, with the 0.75% Libor floor on the tranches staying intact, according to an 8-K filed with the Securities and Exchange Commission.

The repriced loans have 101 soft call protection for six months.

Goldman Sachs Bank USA, J.P. Morgan Securities LLC and RBC Capital Markets are leading the deal for which commitments are due on Thursday.

Allocations are expected to go out on Friday and closing is targeted for Sept. 17.

The company will refinance with available cash or a revolver draw any term loan C and D debt that is not repaid or replaced with the new term loan, the filing added.

Valeant is a specialty pharmaceutical company with U.S. headquarters in Bridgewater, N.J.

Allegion plans loan

In more new deal happenings, Allegion set a bank meeting for 10:30 a.m. ET in New York on Wednesday to launch a $300 million seven-year term loan B that is talked at Libor plus 275 bps with a 0.75% Libor floor, an original issue discount of 99¾ and 101 soft call protection for six months, according to a market source.

J.P. Morgan Securities LLC is the lead bank on the deal.

Corporate ratings are expected in the mid-to-high BB area, the source said.

Allegion, a Dublin, Ireland-based provider of security products and solutions, is being spun of from Ingersoll Rand and proceeds from the loan will be used to pay a dividend to Ingersoll in connection with the transaction.

Topps sets meeting

Topps will hold a bank meeting on Wednesday to launch a $150 million seven-year term loan that includes 101 soft call protection for one year, according to a market source.

Deutsche Bank Securities Inc. and BMO Capital Markets are leading the deal.

Proceeds will be used to refinance existing debt.

Topps is a creator and marketer of sports and related cards, entertainment products and distinctive confectionery brands.

Albertsons readies call

Albertsons scheduled a call for 10:30 a.m. ET on Tuesday for credit facility lenders, according to a market source.

Citigroup Global Markets Inc., Bank of America Merrill Lynch and Goldman Sachs Bank USA are leading the transaction for the food and drug retailer.

Further details on the deal are not yet available, the source added.

Safe Fleet joins calendar

Safe Fleet set a bank meeting for Tuesday to launch a $152 million credit facility that is split between a revolver and a term loan, according to a market source.

BNP Paribas Securities Corp. is the lead bank on the deal.

Proceeds will be used to help fund the acquisitions of ROM Corp. and Specialty Manufacturing Inc.

ProPetro coming soon

ProPetro will host a bank meeting for Tuesday to launch a $260 million credit facility that will be used to refinance existing debt, according to a market source.

The facility consists of a $40 million revolver and a $220 million six-year term loan B, and included in the B loan is 101 soft call protection for one year, the source said.

Deutsche Bank Securities Inc. and Barclays are leading the deal.

ProPetro is a Midland, Texas-based provider of oil and gas well drilling, stimulation, workover and repair services.

Spotless on deck

Spotless Holdings scheduled a bank meeting on Tuesday to launch $1.05 billion in term loans split between an $825 million five-year first-lien tranche (B1) and a $225 million 51/2-year second-lien tranche (B3), according to a market source.

Deutsche Bank Securities Inc., Goldman Sachs Bank USA, UBS Securities LLC and Barclays are leading the deal.

Proceeds will be used to refinance existing debt and fund a dividend.

Spotless is an Australia-based provider of integrated facility management services.

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