VWR Funding, Harland Clarke, VAT, nTelos hit the secondary; 1-800 Contacts active and better

By Sara Rosenberg

New York, Jan. 28 - VWR Funding Inc., Harland Clarke Holdings Corp., VAT and nTelos Inc. all freed up for trading during Thursday's market hours, and 1-800 Contacts Inc. saw its first-lien term loan inch higher from its recent breaking levels.

Moving to the primary, Ziggo, Ocwen Financial Corp., Vogue International and Arden Group Inc. came out with guidance with launch, and Learfield Communications Inc. released offer price talk on its add-on loans.

Also, Anaren Inc. disclosed timing and price talk on its buyout financing deal, and iQor Inc., Caribbean Restaurants LLC and SS&C Technologies Holdings Inc. emerged with loan plans.

VWR starts trading

VWR's loans emerged in the secondary market on Tuesday, with the $587 million senior secured term loan B due April 3, 2017 quoted at par 1/8 bid, 101 1/8 offered, according to a trader.

Pricing on the U.S. term loan B is Libor plus 325 basis points, after firming recently at the tight end of the Libor plus 325 bps to 350 bps talk. There is no Libor floor and 101 soft call protection for six months, and the debt was issued at par.

The company is also getting a €573 million senior secured term loan B due April 3, 2017 priced at Euribor plus 350 bps, after finalizing the other day at the low end of the Euribor plus 350 bps to 375 bps talk. This tranche also has no floor, 101 soft call protection for six months and a par issue price.

Citigroup Global Markets Inc. and Bank of America Merrill Lynch are leading the deal (B+).

VWR refinancing

Proceeds from VWR's term loans will be used to refinance/reprice four tranches of existing U.S. and euro term loan debt due April 3, 2017.

The four tranches of existing debt include a roughly $240 million term loan priced at Libor plus 425 bps, a roughly $349 million term loan priced at Libor plus 400 bps, a roughly €474 million term loan priced at Euribor plus 450 bps and a roughly €101 million term loan priced at Euribor plus 425 bps.

Closing is targeted for Wednesday.

VWR is a Radnor, Pa.-based provider of laboratory supplies, equipment and services.

Harland frees up

Harland Clarke's $600 million first-lien covenant-light term loan B-4 (B1/B+) due August 2019 began trading as well, with levels quoted at par 5/8 bid, 101 1/8 offered by late day, according to a trader.

Pricing on the term loan B-4 is Libor plus 500 bps with a 1% Libor floor and it was sold at an original issue discount of 991/2. There is 101 soft call protection for one year.

Initially, the company was marketing a $500 million first-lien covenant-light tack-on term loan B-3 due May 2018 talked at Libor plus 550 bps with a 1.5% Libor floor, a discount of 99 and call protection of 102 through April 2014, then 101 for a year, but the company shifted to a larger loan raised through an all new tranche during syndication.

The company is also getting a $150 million asset-based revolver due Feb. 20, 2018 with pricing that can range from Libor plus 175 bps to 225 bps, based on availability, and an unused fee that can range from 37.5 bps to 50 bps based on usage.

Harland buying Valassis

Proceeds from Harland Clarke's term loan B-4, $275 million of senior secured notes and $540 million of unsecured notes, downsized from $590 million as a result of the term loan upsizing, will be used to fund the acquisition of Valassis for $34.04 per share in cash, representing a transaction value of about $1.84 billion.

The new financing will also be used to refinance existing debt, including floating-rate notes due to the term loan upsizing, and for general corporate purposes.

Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch, Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and Jefferies Finance LLC are leading the bank debt.

Closing is expected this quarter subject to the tender of the majority of Valassis' shares, expiration of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act and customary conditions.

Harland Clarke is a San Antonio-based provider of payment, marketing and security services. Valassis is a Livonia, Mich.-based provider of media services.

VAT emerges in secondary

Another deal to free up was VAT, with its $405 million seven-year first-lien covenant-light term loan (B+) seen at par bid, par ½ offered, according to a trader.

Pricing on the term loan is Libor plus 375 bps with a 1% Libor floor and it was sold at a discount of 991/2. There is 101 soft call protection for six months.

Earlier this week, pricing on the term loan was trimmed from Libor plus 425 bps, the discount was modified from 99, the call protection was shortened from one year and the MFN sunset was removed.

The company's credit facility also includes a CHF 30 million five-year revolver.

Credit Suisse Securities (USA) LLC and UBS Securities LLC are leading the deal that will be used to fund the buyout of the company by Capvis and Partners Group.

VAT is a Sennwald, Switzerland-based vacuum valves company.

nTelos tops par

nTelos' $188 million add-on term loan B also broke, with levels quoted at par ¼ bid, par ¾ offered, according to a trader.

Pricing on the add-on is Libor plus 475 bps with a 1% Libor floor, in line with the existing term loan B, and it was sold at a discount of 993/4.

Recently, the add-on was upsized from $148 million and the discount was tightened from talk of 99 to 991/2.

J.P. Morgan Securities LLC, UBS Securities LLC, Deutsche Bank Securities Inc. and Union Bank are leading the deal that will be used to refinance existing term loan A borrowings and, as a result of the upsizing, to add cash to the balance sheet.

nTelos is a Waynesboro, Va.-based provider of wireless and wireline communications services.

1-800 Contacts rises

In more trading news, 1-800 Contacts' $420 million first-lien covenant-light term loan (B1/B) moved up to par ¼ bid, par ¾ offered with good activity seen in the name, a trader said, adding that the loan freed up on Monday at par bid, par ½ offered.

Pricing on the first-lien term loan is Libor plus 325 bps 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 company is also getting a $60 million revolver (B1/B) and a $115 million second-lien term loan.

During syndication, the first-lien term loan was upsized from $400 million, pricing was lowered from talk of Libor plus 350 bps to 375 bps and the discount was revised from 991/2, and the second-lien term loan was downsized from $125 million.

1-800 Contacts leads

Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc., Deutsche Bank Securities Inc. and RBC Capital Markets are leading 1-800 Contacts' credit facility.

Proceeds will be used to help fund the buyout of the company by Thomas H. Lee Partners from WellPoint.

Other funds for the transaction will come from equity, the amount of which was reduced with the first-lien term loan upsizing.

Closing is expected this quarter, subject to customary conditions.

1-800 Contacts is an Orem, Utah-based online contact lens retailer.

Ziggo reveals talk

Over in the primary, Ziggo held its New York and London bank meetings on Tuesday and, with the events, talk on its €3,735,000,000-equivalent senior secured term loan B (BB-) due Jan. 15, 2022 was announced, according to a market source.

The U.S. portion of the loan is talked at Libor plus 250 bps to 275 bps and the euro portion is talked at Euribor plus 275 bps to 300 bps, with both offered at an original issue discount of 993/4, the source said. Also, as previously disclosed, both tranches have a 0.75% floor and 101 soft call protection for six months.

Commitments are due at 5 p.m. ET on Feb. 4.

Credit Suisse Securities (USA) LLC and Bank of America Merrill Lynch are the global coordinators on the deal and bookrunners with ABN Amro Inc., Credit Agricole Securities (USA) Inc., Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., ING Financial Markets LLC, J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc., Nomura Securities Co. Ltd., Rabobank, Scotiabank and Societe Generale.

Ziggo being acquired

Proceeds from Ziggo's credit facility will be used to help fund its purchase by Liberty Global plc in a stock and cash transaction valued at about €10 billion and to refinance existing debt.

Under the agreement, Ziggo shareholders will receive €11.00 in cash, 0.2282 Liberty Global Class A ordinary shares and 0.5630 Liberty Global Class C ordinary shares for each Ziggo share that they hold. The stock component equates to €3.4 billion and the cash component equates to €1.6 billion.

Closing is expected in the second half of this year.

Ziggo is a Utrecht, the Netherlands-based provider of entertainment, information and communication through television, internet and telephony services. Liberty Global is an Englewood, Colo.-based cable company.

Ocwen discloses guidance

Ocwen Financial came out with talk of Libor plus 325 bps with a 1% Libor floor and an original issue discount of 99½ (all-in-yield 4 3/8%) on its $2.2 billion of term loans (B1) that launched with a call during the session, according to a market source.

The debt, which includes a $1.5 billion seven-year term loan and a $700 million seven-year final maturity delayed-draw term loan, has 101 soft call protection for six months.

Commitments are due on Feb. 4, and closing is expected on Feb. 12, with the delayed-draw tranche likely funding on March 21.

Wells Fargo Securities LLC, Barclays, J.P. Morgan Securities LLC and Bank of America Merrill Lynch are leading the deal that will be used to refinance an existing $1.3 billion senior secured term loan and fund the acquisition of residential mortgage servicing rights on a portfolio from Wells Fargo Bank.

Ocwen is an Atlanta-based financial services holding company.

Vogue floats pricing

Vogue International set talk of Libor plus 425 bps to 450 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months on its $415 million term loan that launched with a meeting on Tuesday, according to a market source.

The company's $445 million credit facility also includes a $30 million revolver.

Goldman Sachs Bank USA and Bank of America Merrill Lynch are leading the deal that will be used to help fund the buyout of the company by the Carlyle Group.

Vogue is a Tampa Bay, Fla.-based manufacturer and distributor of salon-heritage hair care and other personal care products.

Arden launches

Arden Group held its bank meeting, launching its $150 million six-year term loan B with talk of Libor plus 375 bps with 1% Libor floor and an original issue discount of 99, a market source said.

The company's $180 million senior secured credit facility also includes a $30 million five-year revolver.

Commitments are due on Feb. 11, the source added.

BMO Capital Markets is leading the deal that will be used with $170 million of equity to fund the buyout of the company by TPG for $126.50 per share, or about $394 million.

Closing is expected this quarter, subject to customary conditions, including, among other things, expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

Arden is a Compton, Calif.-based operator of specialty grocery stores.

Learfield offer price

Learfield launched its $85 million of fungible add-on covenant-light term loans with an offer price of par, according to a market source.

The debt consists of a $60 million add-on first-lien term loan due October 2020 priced at Libor plus 400 bps with a 1% Libor floor and a $25 million add-on second-lien term loan due October 2021 priced at Libor plus 775 bps with a 1% Libor floor.

Included in the first-lien term loan is 101 soft call protection until April 2014, and the second-lien term loan has call protection of 102 until October 2014 and 101 until October 2015.

Commitments are due at noon ET on Friday.

Deutsche Bank Securities Inc. is leading the deal that will be used by the college sports multimedia rights marketing company to help fund the acquisition of Nelligan Sports Marketing Inc.

Anaren details surface

Also on the new deal front, Anaren set a bank meeting for 12:30 p.m. ET in New York on Thursday to launch its $235 million senior secured credit facility, and released price talk on the term loan tranches, according to a market source.

The $145 million seven-year first-lien term loan (B+) is talked at Libor plus 475 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, and the $70 million 71/2-year covenant-light second-lien term loan (CCC+) is talked at Libor plus 825 bps with a 1% Libor floor, a discount of 99, and call protection of 103 in year one, 102 in year two and 101 in year three, the source said.

In addition to the term loans, the credit facility includes a $20 million revolver (B+).

Credit Suisse Securities (USA) LLC is leading the deal for which commitments are due on Feb. 12.

Anaren funding buyout

Proceeds from Anaren's credit facility and up to $155 million in equity will be used to fund its buyout by Veritas Capital for $28.00 per share in cash, or about $381 million.

Closing is subject to shareholder approval and customary regulatory and other conditions. The transaction is not subject to any financing conditions.

Anaren is a Syracuse, N.Y.-based designer, developer, manufacturer and seller of highly integrated microwave components, assemblies and subsystems for the wireless communications, satellite communications and defense electronics markets.

iQor joins calendar

iQor scheduled a lenders' meeting for 1:30 p.m. ET on Thursday to launch an up to $950 million senior secured credit facility, according to a market source.

The facility consists of a $100 million revolver, an up to $630 million first-lien term loan and an up to $220 million second-lien term loan, the source said.

Morgan Stanley Senior Funding Inc., Credit Suisse Securities (USA) LLC and GE Capital Markets are leading the dal that will be used to fund the $725 million acquisition of the St. Petersburg, Fla.-based aftermarket services business of Jabil Circuit Inc.

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

iQor is a New York-based provider of business process outsourcing services.

Caribbean Restaurants on deck

Caribbean Restaurants will hold a lender call at 3 p.m. ET on Thursday to launch a $205 million credit facility, according to a market source.

The facility consists of a $15 million revolver, a $140 million five-year first-lien term loan and a $50 million 51/2-year second-lien term loan, the source remarked.

Jefferies Finance LLC is leading the deal that will be used to refinance existing debt.

Caribbean Restaurants is an operator of Burger King restaurants in Puerto Rico.

SS&C readies call

SS&C Technologies set a call for 11 a.m. ET on Wednesday to launch a $216 million term loan A due September 2017 that is talked at Libor plus 200 bps with no Libor floor, according to a market source.

Proceeds will be used to reprice an existing term loan A from Libor plus 250 bps with no floor.

Deutsche Bank Securities Inc. is leading the deal.

SS&C is a Windsor, Conn.-based provider of financial services software and software-enabled services.

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