24 Hour, Steinway break; CSC better on paydown; TransDigm, Grede, Albaugh, SunEdison tweaked

By Sara Rosenberg

New York, May 20 - Deals from 24 Hour Fitness Worldwide Inc. and Steinway Musical Instruments Inc. emerged in the secondary market on Tuesday, and CSC Holdings LLC (Cablevision) saw its term loan B strengthen with partial paydown news.

Moving to the primary, TransDigm Inc. upsized its term loan D, lowered the spread and tightened the original issue discount, and Grede Holdings LLC set pricing on its term loan at the high end of talk while extending the call protection.

Also, Albaugh Inc. widened the pricing and discount on its term loan B while sweetening the call protection and amortization and adjusted its revolver size, and SunEdison Semiconductor Ltd. reworked the call premiums on its term loan.

In addition, Genex Holdings Inc. moved up the commitment deadline on its credit facility and Ascend Learning modified its deadline as well, and Blue Bird Body Co. and Henniges Automotive Holdings Inc. released price talk with launch.

24 Hour Fitness frees up

24 Hour Fitness' credit facility broke for trading on Tuesday, with the $850 million seven-year covenant-light term loan B quoted at 99¾ bid, par ¼ offered, according to a market source.

Pricing on the term loan is Libor plus 375 basis points with a 1% Libor floor and it was sold at an original issue discount of 99. There is 101 soft call protection for one year.

During syndication, pricing on the loan was lowered from Libor plus 400 bps, the discount was set at the wide end of the 99 to 99½ talk, call protection was extended from six months, the MFN sunset provision was eliminated and the incremental allowance was reduced to $250 million from $300 million.

The company's $1 billion credit facility (Ba3/B+) also includes a $150 million revolver.

J.P. Morgan Securities LLC is leading the deal that will be used with $500 million of senior notes to fund the buyout of the company by AEA Investors and Ontario Teachers' Pension Plan from Forstmann Little & Co.

24 Hour Fitness is a San Ramon, Calif.-based fitness-club operator.

Steinway tops OID

Steinway Musical Instruments' $105 million add-on first-lien term loan (B2) began trading too, with levels quoted at 99½ bid, par ¼ offered, a trader remarked.

Pricing on the add-on matches the existing first-lien term loan at Libor plus 375 bps with a 1% Libor floor, and the new debt was sold at an original issue discount of 99.

Bank of America Merrill Lynch and Deutsche Bank Securities Inc. are leading the deal that will be used to refinance an existing second-lien term loan.

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

CSC gains ground

Also in trading, CSC Holdings' term loan B headed up after news surfaced that a portion of the debt will be repaid with proceeds from a $750 million senior notes offering, according to a trader.

The B loan traded as high as 99¼ bid, 99¾ offered post the paydown news and then settled in a little to 99 bid, 99½ offered, the trader said. However, the debt still ended the day higher from Monday's levels of 98¾ bid, 99¼ offered, the trader said.

In the morning, the bond deal was launched with an amount of $500 million, but it was upsized in the afternoon.

CSC is a Bethpage, N.Y.-based telecommunications and media company.

TransDigm reworks loan

Over in the primary, TransDigm increased its seven-year first-lien covenant-light term loan D to $825 million from $625 million, trimmed pricing to Libor plus 300 bps from Libor plus 325 bps and changed the original issue discount to 99¼ from 99, according to a market source.

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

Recommitments were due at 4:30 p.m. ET on Tuesday, the source said.

Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc., Barclays, Citigroup Global Markets Inc., HSBC Securities (USA) Inc., RBC Capital Markets and UBS AG are leading the deal.

Proceeds will be used to help finance the purchase of any and all of the company's outstanding $1.6 billion 7¾% senior subordinated notes due 2018, to pay a cash dividend in the range of $900 million to $1.5 billion, to make cash dividend equivalent payments under stock and stock option dividend plans, and for general corporate purposes.

TransDigm plans notes

Along with the term loan D, TransDigm intends to fund the notes buyback and dividend with a new $2.35 billion senior subordinated notes offering, trade receivables securitization facility borrowings and cash on hand.

In connection with this transaction, the company is looking to amend its existing senior secured credit facility to allow for the dividend and new term loan, and to revise certain ratios.

Lenders are being offered a 10 bps amendment fee.

TransDigm is a Cleveland-based designer, producer and supplier of highly engineered aircraft components.

Grede updates deal

Grede Holdings firmed the spread on its $600 million term loan at Libor plus 375 bps, the high end of the Libor plus 350 bps to 375 bps talk, and pushed out the 101 soft call protection to one year from six months, a source said.

The term loan still has a 1% Libor floor and an original issue discount of 991/2.

The company's $675 million credit facility (B1) also includes a $75 million revolver.

Goldman Sachs Bank USA, GE Capital Markets, Nomura and RBC Capital Markets are leading the deal that will be used to help fund the buyout of the company by American Securities LLC.

Grede is a Southfield, Mich.-based producer of engineered iron castings to the automotive, medium and heavy truck and industrial markets.

Albaugh revised again

Albaugh raised pricing on its $300 million seven-year term loan B to Libor plus 500 bps from revised talk of Libor plus 425 bps to 450 bps and initial talk of Libor plus 350 bps to 375 bps, and moved its original issue discount to 98 from revised talk of 99 and initial talk of 991/2, according to a market source.

Furthermore, the call protection on the term loan was changed to a hard call of 102 in year one and 101 in year two from revised talk of 101 soft call protection for one year and initial talk of 101 soft call protection for six months, and the amortization was increased to 5% per annum from 1%, the source said.

The term loan continues to have a 1% Libor floor.

Previously in syndication, a total net leverage covenant was added to the originally covenant-light term loan and the MFN sunset provision was eliminated, setting the 50 bps MFN for life.

Albaugh sets revolver size

In addition to the term loan B, Albaugh's credit facility (B1/BB-) includes a five-year revolver, which is now sized at $85 million, versus an initial amount of up to $100 million, the source remarked.

Recommitments were due on Tuesday and allocations are expected to go out later this week.

HSBC Securities (USA) Inc., Credit Suisse Securities (USA) LLC and J.P. Morgan Securities LLC are leading the deal that will be used to refinance existing debt and for general corporate purposes.

Albaugh is an Ankeny, Iowa-based producer of generic crop protection products.

SunEdison call protection

SunEdison Semiconductor changed the call protection on its $200 million term loan B to a soft call of 102 in year one and 101 in year two from 101 soft call protection for one year, a source said.

Pricing on the loan remained at Libor plus 550 bps with a 1% Libor floor and a discount of 99.

The company's $250 million credit facility (B2/B) also includes a $50 million revolver.

Goldman Sachs Bank USA and Macquarie Capital are leading the deal that will be used to repay intercompany notes in connection with the company's spinoff from SunEdison Inc. and initial public offering of ordinary shares.

SunEdison Semiconductor is a Toa Payoh, Singapore-based developer, manufacturer and seller of silicon wafers to the semiconductor industry.

Genex shutting early

Genex Holdings accelerated the commitment deadline on its $310 million senior secured credit facility to Wednesday from Thursday, a market source said.

The facility consists of a $30 million revolver (B), a $190 million first-lien term loan (B) and a $90 million second-lien term loan (CCC+).

Talk on the first-lien term loan is Libor plus 425 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and talk on the second-lien term loan is Libor plus 775 bps with a 1% Libor floor, a discount of 99 and call protection of 102 in year one and 101 in year two.

RBC Capital Markets, SunTrust Robinson Humphrey Inc. and UBS AG are leading the deal that will be used to help fund the buyout of the company by Apax Partners.

Genex is a Wayne, Pa.-based provider of integrated managed care services, focused on controlling health care costs and reducing disability expenses.

Ascend Learning timing

Ascend Learning changed the commitment deadline for its $125 million second-lien term loan (Caa2/CCC+) and consents deadline for its first-lien loan amendment to 5 p.m. ET on Wednesday, according to a market source.

The second-lien term loan is talked in the Libor plus 775 bps area with a 1% Libor floor, an original issue discount of 99 and hard call protection of 102 in year one and 101 in year two.

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

Burlington, Mass., and Leawood, Kan.-based Ascend Learning is a provider of technology-based learning services focused on student training and testing results in health care and other vocational fields.

Blue Bird discloses talk

In more primary news, Blue Bird Body held its bank meeting on Tuesday morning, launching its $250 million six-year first-lien term loan 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, according to a market source.

The company's $300 million credit facility also includes a $50 million five-year revolver.

Commitments are due on June 3, the source remarked.

Societe Generale, Macquarie Capital and Fifth Third Securities Inc. are leading the deal that will be used to refinance existing debt and fund a dividend.

Total net leverage is 3.03 times and total leverage is 3.77 times.

Blue Bird is a Fort Valley, Ga.-based manufacturer of school buses and a provider of aftermarket parts and services.

Henniges guidance emerges

Henniges Automotive came out with talk of Libor plus 375 bps to 400 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months on its $285 million seven-year term loan B (B1/B) that launched with a morning meeting, a market source remarked.

The company's $335 million credit facility also includes a $50 million five-year ABL revolver.

Commitments are due on June 3, the source added.

Barclays, Bank of America Merrill Lynch and UBS AG are leading the deal that will be used to refinance existing debt and fund a one-time distribution to equity holders.

Net leverage is 3.8 times and total leverage is 3.9 times.

Henniges is an Auburn Hills, Mich.-based supplier of highly-engineered automotive sealing and anti-vibration systems for automotive applications.

Long Term sets deadline

Long Term Care Group Inc. launched with a bank meeting its $195 million senior secured credit facility and told investors that commitments for the transaction are due on June 4, a market source said.

The facility consists of a $20 million revolver and a $175 million term loan B due 2020.

As previously reported, talk on the term loan is Libor plus 525 bps to 550 bps with a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for one year.

RBC Capital Markets and MCS Capital Markets are leading the deal that will be used to help fund the buyout of the company by Stone Point Capital from Univita Health.

Long Term Care Group is an Eden Prairie, Minn.-based business process outsourcing company for the long-term care insurance industry.

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