Zuffa, AmWINS, Prestige Brands break; Revel bounces around on pre-packaged bankruptcy news

By Sara Rosenberg

New York, Feb. 20 - Zuffa LLC's credit facility freed up for trading during Wednesday's market hours, with the term loan B seen above its original issue discount price, and AmWINS Group Inc. and Prestige Brands Holdings Inc. hit the secondary as well.

Also in trading, Revel AC Inc.'s term loan B bounced around on the back of news that the company reached an agreement with a majority of its lenders for a debt-for-equity conversion that will be implemented through a Chapter 11 filing.

Over in the primary, Dematic and SNL Financial LC pulled their deals from market, and EarthLink Inc., iEnergizer, Internet Brands Inc., Cedar Fair LP, Star West Generation LLC, RegionalCare Hospital Partners Inc., Total Safety Husky and International Ltd. released talk with launch.

Additionally, SunGard Data Systems Inc. came out with original issue discount guidance on its loan, and Mondrian Investment Partners Ltd. and Monarch joined this week's calendar.

Zuffa starts trading

Zuffa's credit facility broke for trading on Wednesday, with the $450 million term loan B quoted at 99¾ bid, par ½ offered, according to a market source.

Pricing on the term loan B is Libor plus 350 basis points with a step-down to Libor plus 325 bps at 3.5 times secured leverage. There is a 1% 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, pricing on the loan was increased from talk in the Libor plus 300 bps area, the step-down was added and the offer price firmed at the wide end of the 99½ to par guidance.

The company's $510 million credit facility also includes a $60 million revolver.

Deutsche Bank Securities Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC and BofA Merrill Lynch are leading the deal that will be used to refinance existing debt.

Zuffa is the Las Vegas-based company that owns the Ultimate Fighting Championship brand.

AmWINS frees up

AmWINS Group's $715 million first-lien covenant-light term loan (B1/B) due February 2020 emerged in the secondary market too, with levels quoted at par bid, par ½ offered, according to a market source.

Pricing on the loan is Libor plus 375 bps with a 1.25% Libor floor, and it was sold at an original issue discount of 993/4, after tightening recently from 991/2. There is 101 repricing protection for one year.

Credit Suisse Securities (USA) LLC is leading the deal.

Proceeds will be used to reprice and extend an existing $394 million first-lien term loan due June 2019 that is priced at Libor plus 450 bps with a 1.25% Libor floor, and to refinance a second-lien term loan.

AmWINS is a Charlotte, N.C.-based specialty insurance broker.

Prestige tops par

Prestige Brands' $454.5 million senior secured term loan B due January 2019 also freed up, with levels quoted at par ¼ bid, par ¾ offered, according to a market source.

Pricing on the loan is Libor plus 275 bps with a 1% Libor floor, and it was sold at par. There is 101 soft call protection for one year.

During syndication, the spread was reduced from Libor plus 300 bps and call protection was extended from six months.

Citigroup Global Markets Inc. is the lead bank on the deal that is being used to reprice an existing term loan B from Libor plus 400 bps with a 1.25% Libor floor.

Prestige is an Irvington, N.Y.-based marketer of branded consumer products in the over-the-counter health care and household cleaning industries.

Revel seesaws

Revel's term loan B moved around in trading on Wednesday, as the company announced late in the previous session that it plans to file for Chapter 11 in an effort to reduce debt, according to a trader.

The term loan B started the day at 41 bid, 43 offered, and by late day it had moved to 36 bid, 38 offered, the trader said. On Tuesday, the loan was quoted at 37 bid, 39 offered.

Under the bankruptcy plan, credit facility lenders will convert their claims on a pro rata basis into a new secured super-priority priming debtor-in-possession credit facility that will be repaid in full by an exit facility, and term loan lenders will receive their pro rata share of 100% of new common equity to be issued by the reorganized company.

Also, holders of the company's 12% second-lien notes will receive their pro rata share of $70 million of new notes.

This plan has already received support from debt holders, and lenders have agreed to forbear from exercising remedies regarding the company's failure to pay a term loan interest payment on Tuesday.

Revel is an Atlantic City, N.J.-based gaming and entertainment company.

Dematic withdrawn

Moving to the primary, Dematic removed its repricing from market, under which it was looking to take its $540 million first-lien covenant-light term loan B due December 2019 down to Libor plus 325 bps with a 1% to 1.25% Libor floor from Libor plus 400 bps with a 1.25% Libor floor, according to a market source.

The repriced loan was being offered at par and had 101 repricing protection for one year.

Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC and Barclays were the lead banks on the deal.

Dematic is an engineering company that provides intelligent warehouse logistics and materials handling solutions.

SNL shelves deal

SNL Financial LC pulled its Credit Suisse Securities (USA) LLC-led $305 million credit facility from market, according to a source.

The facility consisted of a $30 million revolver and a $275 million first-lien covenant-light term loan due October 2018 talked at Libor plus 350 bps with a 1% Libor floor, a par offer price and 101 repricing protection for one year.

Proceeds were going to be used to refinance an existing credit facility, including a $275 million term loan priced at Libor plus 425 bps with a 1.25% Libor floor.

SNL is a financial information provider.

Repricings roll on

Although a number of repricing transactions have been pulled recently - Houghton International Inc., Leslie's Poolmart Inc., Serta Simmons, MGM Resorts International, DuPont Performance Coatings, Fairmount Minerals Ltd., Burlington Coat Factory Warehouse Corp. and WideOpenWest Finance LLC among them - issuers are still coming to market with new repricing proposals.

For example, AES Corp., Consolidated Precision Products Corp. (WPP CPP Holdings LLC), Citco Group of Cos. (Citco III Ltd.) and Ollie's Bargain Outlet were just some names that jumped on the repricing bandwagon earlier this week.

One source explained that even though repricings are softening up, "if the company has performed well, they stand a shot. The pulled ones were probably just might as well try."

He went on to say that "some repricings were just greedy. Some are warranted. There is a lot of cash and guys really have no option since there are not a lot of new money options."

But, the source added that after a while of these repricings, some accounts started to push back, which is why a notable amount of them have been withdrawn.

EarthLink sets talk

Also in the primary, EarthLink held its bank meeting on Wednesday, launching its $300 million term loan with talk of Libor plus 400 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 on Feb. 28, the source continued.

The company's $450 million secured credit facility (Ba3/B+) also includes a $150 million revolver.

Bank of America Merrill Lynch is leading the term loan and Regions Bank is leading the revolver.

Proceeds, along with cash on hand, will repay the outstanding 10½% senior secured notes due 2016 of EarthLink's wholly owned subsidiary, ITC^DeltaCom, Inc., and replace an existing $150 million undrawn revolver.

EarthLink is an Atlanta-based IT services and communications provider.

iEnergizer reveals pricing

iEnergizer also held a bank meeting, and talk on its $140 million six-year term loan came out at Libor plus 500 bps to 550 bps with a 1.25% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, according to a market source.

Commitments are due on March 4, the source said.

Jefferies Finance LLC is leading the deal that will be used to refinance third party loans that funded the purchase of Aptara in 2012, giving the company a permanent capital structure.

Leverage is 3.8 times.

iEnergizer is a Guernsey-based business process outsourcing firm.

Internet Brands terms

Internet Brands disclosed talk of Libor plus 350 bps to 375 bps with a 1.25% Libor floor, an original issue discount of 99 and 101 soft call protection for one year on its $330 million seven-year term loan that launched during the session, according to a market source.

The company's $380 million credit facility (B1/B+) also includes a $50 million five-year revolver.

Commitments are due on March 4, the source added.

RBC Capital Markets, Bank of America Merrill Lynch and GE Capital Markets are leading the deal that will be used to refinance existing debt and fund a dividend.

Internet Brands is an El Segundo, Calif.-based consumer-facing internet media company.

Cedar Fair refinancing

Cedar Fair launched with a call in the afternoon an $885 million credit facility (BB+) that will be used with senior unsecured debt to take out existing bank debt, including a $1.13 billion term loan.

The facility consists of a $255 million five-year revolver, and a $630 million seven-year term loan B talked at Libor plus 250 bps to 275 bps with a 0.75% Libor floor, an original issue discount of 99¾ and 101 soft call protection for one year, a source said.

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

Cedar Fair is a Sandusky, Ohio-based regional amusement-resort operator.

Star West details emerge

Star West Generation presented lenders with a new $825 million senor secured credit facility (Ba3) on Wednesday that consists of a $100 million five-year revolver and a $725 million seven-year term loan B, according to market sources.

The B loan is talked at Libor plus 400 bps to 425 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, sources said.

Citigroup Global Markets Inc., Barclays, Morgan Stanley Senior Funding Inc, RBC Capital Markets and Union Bank are leading the deal that will be used to refinance existing debt in connection with the company's merger with GWF Energy LLC, another Highstar Capital portfolio company.

Commitments are due on March 5, sources added.

Star West Generation is a Houston-based owner of two combined cycles, gas-fired power generations plants in Arizona. GWF Energy is a Pittsburg, Calif.-based owner of three natural gas-fired power plants located in California.

RegionalCare launches

RegionalCare Hospital Partners launched a $295 million term loan due November 2018 with talk of Libor plus 475 bps to 500 bps with a 1.25% Libor floor, an original issue discount of 99¾ and 101 soft call protection for six months, according to a market source.

Lead bank, Citigroup Global Markets Inc., is seeking commitments by Feb. 28, the source said.

Proceeds refinance an existing term loan that is priced at Libor plus 650 bps with a 1.5% Libor floor and the new term loan will give the company flexibility to execute its acquisition strategy.

This flexibility will be obtained by revising the accordion to 4.25 times first-lien leverage plus an additional $40 million, allowing for the incurrence of second-lien or unsecured debt up to 5.75 times total leverage, permitting some add-backs relating to cost savings and synergies, and resetting the total net leverage covenant to 7 times with step-downs over time, the source explained.

RegionalCare is a Brentwood, Tenn.-based owner and operator of hospitals.

Total Safety div recap

Total Safety launched a $445 million credit facility that will be used to refinance existing debt and fund a dividend, according to a market source.

The facility consists of a $60 million five-year revolver (B1/B-), a $270 million seven-year first-lien term loan (B1/B-) and a $115 million 71/2-year second-lien term loan (Caa1/CCC), the source said.

The first-lien term loan is talked at Libor plus 475 bps with a 1.25% 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 850 bps with a 1.25% floor, a discount of 98 and call protection of 103 in year one, 102 in year two and 101 in year three, the source remarked.

Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC and Barclays are leading the deal for the Houston-based outsourced provider of integrated safety and compliance services and the products necessary to support them.

Husky guidance

Husky International launched the repricing of its roughly $860 million term loan B with talk of Libor plus 325 bps with a 1% Libor floor, versus current pricing of Libor plus 450 bps with a 1.25% Libor floor, according to a market source.

The repriced loan has 101 soft call protection for six months, the source said.

Goldman Sachs & Co. and Morgan Stanley Senior Funding Inc. are leading the deal, for which commitments are due on Feb. 27.

Husky is a Bolton, Ont.-based supplier of injection molding equipment and services to the plastics industry.

SunGard OID talk

SunGard disclosed original issue discount guidance of 99½ to 99¾ on its $2 billion seven-year term loan (BB) that launched with a call in the morning, according to a market source.

Talk on the term loan was released earlier at Libor plus 300 bps with a 1% Libor floor. The tranche includes 101 soft call protection for one year.

J.P. Morgan Securities LLC is the left lead on the deal that will be used to refinance the existing term loan B due 2016 and some of the term loan C due 2017.

SunGard is a Wayne, Pa.-based software and technology services company.

Mondrian readies deal

Mondrian Investment Partners set a call for 11 a.m. ET on Thursday to launch an $83 million add-on term loan B and repricing of its existing $222 million term loan B, according to a market source.

Morgan Stanley Senior Funding Inc. is leading the deal.

Further details on the transaction are expected to come out after the call, the source added.

Mondrian is a money manager with offices in London and Philadelphia.

Monarch coming soon

Monarch scheduled a bank meeting for Thursday to launch $765 million in debt consisting of a $565 million first-lien term loan and a $200 million second-lien term loan, according to a market source.

Deutsche Bank Securities Inc., Bank of America Merrill Lynch and Nomura Securities International Inc. are leading the deal.

Proceeds, along with equity, will fund Advent International's acquisition of Cytec Industries Inc.'s Brussels, Belgium-based coating resins business for about $1.15 billion.

Closing is expected this quarter, subject to the satisfaction of regulatory requirements and other customary conditions.

American Renal closes

In other news, American Renal Associates Holdings Inc. closed on its $690 million senior credit facility that consists of a $50 million revolver (Ba3), a $400 million 61/2-year covenant-light first-lien term loan (Ba3) and a $240 million seven-year covenant-light second-lien term loan (Caa1), according to an 8-K filed with the Securities and Exchange Commission.

Pricing on the first-lien term loan is Libor plus 325 bps with a 1.25% Libor floor, and it was sold at an original issue discount of 991/2, and the second-lien loan is priced at Libor plus 725 bps with a 1.25% Libor floor, and was sold at a discount of 981/2.

The first-lien loan has 101 soft call protection for one year, and the second-lien loan has call protection of 103 in year one, 102 in year two and 101 in year three.

Bank of America Merrill Lynch, Wells Fargo Securities LLC, Barclays and Deutsche Bank Securities Inc. led the deal that was used to refinance existing debt and fund a dividend.

American Renal is a Beverly, Mass.-based owner and provider of outpatient kidney dialysis services.

Select Medical wraps

Select Medical Corp. completed its $300 million incremental term loan B (B1/B+) due 2016, according to an 8-K filed with the Securities and Exchange Commission.

The loan, which was upsized from $250 million, is priced at Libor plus 325 bps, after firming at the tight end of the Libor plus 325 bps to 350 bps talk during syndication. There is no Libor floor and 101 soft call protection for six months, and the debt was sold at an original issue discount of 991/2.

J.P. Morgan Securities LLC led the deal.

Proceeds were used repay 7 5/8% senior subordinated notes due 2015 and Libor plus 575 bps floating-rate HoldCo notes due 2015. And, the funds raised through the upsizing were used to repay revolver borrowings.

Select Medical is a Mechanicsburg, Pa.-based operator of specialty hospitals and outpatient rehabilitation clinics.

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