Sitel Worldwide, Townsquare Media update deals, free to trade; Anaren add-on loan breaks

By Sara Rosenberg

New York, Aug. 21 – Sitel Worldwide Corp. added a ticking fee to its term loans and then the debt began trading on Friday, and Townsquare Media Inc. firmed the original issue discount on its add-on term loan within talk and then it too freed to trade.

Also hitting the secondary market during the session was Anaren Inc.’s add-on term loan.

And, back in the primary, Sterigenics International Inc. finalized the issue price on its add-on term loan at the tight end of guidance.

Sitel outlines ticking fee

Sitel notified lenders on its $337.5 million six-year first-lien term loan (B1/B) and $120 million seven-year second-lien term loan (Caa2/B-) that they will receive a ticking fee of the full applicable rate/margin starting on day 31 after allocation, according to a market source.

Pricing on the U.S. first-lien term loan, as well as a on a €25 million six-year first-lien term loan, is Libor plus 550 basis points with a 1% Libor floor, and the debt was sold at an original issue discount of 99. The first-lien term loan has 101 soft call protection for one year.

The second-lien term loan is priced at Libor plus 950 bps with a 1% Libor floor, and it was issued at a discount of 98. The debt has call protection of 103 in year one, 102 in year two and 101 in year three.

The company’s $545 million-equivalent credit facility also includes a $60 million revolver (B1/B).

Sitel starts trading

After terms firmed up, Sitel’s credit facility broke for trading on Friday, with the first-lien term loan quoted at 99 bid, 99½ offered and the second-lien term loan quoted at 98 bid, 98½ offered, a trader remarked.

Earlier in the syndication process, the euro tranche was carved out of the first-lien term loan, pricing was lifted from talk of Libor plus 475 bps to 500 bps, and the maturity was shortened from seven years.

Also, during syndication, pricing on the second-lien term loan was raised from talk of Libor plus 875 bps to 900 bps, the discount firmed at the wide end of the 98 to 98.5 guidance, the call protection was revised from 102 in year one and 101 in year two and the maturity was shortened from eight years.

Furthermore, both term loans saw the addition of a total net leverage covenant, with step-downs, the MFN sunset provision was removed and the “free and clear” incremental facility was reduced to $30 million from $60 million.

Sitel being acquired

Proceeds from Sitel’s credit facility will be used to help fund its buyout by Groupe Acticall from Onex Corp. Acticall’s primary partner shareholder is Creadev.

Societe Generale and BNP Paribas Securities Corp. are the lead arrangers on the deal, with Societe Generale the left lead on the first-lien debt and BNP the left lead on the second-lien debt.

Sitel is a Nashville, Tenn.-based provider of customer care outsourcing services.

Townsquare sets OID, breaks

Townsquare Media finalized the original issue discount on its fungible $45 million add-on term loan (BB-) at 99.625, within the 99.5 to 99.75 talk, a market source said.

The add-on term loan is priced at Libor plus 325 bps with a 1% Libor floor, which matches existing term loan pricing.

With final terms in place, the add-on loan hit the secondary market and was quoted at 99½ bid, par offered on the break before moving up to 99 5/8 bid, 100 1/8 offered, a trader added.

RBC Capital Markets is leading the deal that will be used to help fund the acquisition of North American Midway Entertainment LLC for about $75.5 million, subject to certain working capital and other adjustments.

Townsquare Media is a Greenwich, Conn.-based diversified media and entertainment and digital marketing services company. North American Midway Entertainment is a Farmland, Ind.-based provider of rides, games and food concessions.

Anaren frees up

Anaren’s fungible $30 million add-on first-lien term loan (B+) began trading as well, with levels seen at 99 bid, par offered, a trader remarked.

Pricing on the add-on term loan is Libor plus 450 bps with a 1% Libor floor, in line with existing term loan pricing, and it was sold at an original issue discount of 99.

Jefferies Finance LLC is leading the deal that will be used to fund an acquisition.

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

Sterigenics sets discount

Sterigenics International firmed the original issue discount on its $50 million add-on term loan at 99.5, the tight end of the 99.25 to 99.5 guidance, according to a market source.

The add-on term loan is priced at Libor plus 325 bps with a 1% Libor floor, in line with the existing term loan.

J.P. Morgan Securities LLC is leading the deal that will be used for general corporate purposes and acquisitions.

Sterigenics is a Deerfield, Ill.-based provider of contract sterilization, gamma technologies and medical isotopes.

Ascena Retail closes

In other news, Ascena Retail Group Inc. completed its acquisition of ANN Inc. for $37.34 in cash and 0.68 of a share of Ascena common stock per share, a news release said.

To help fund the transaction, Ascena got a new $2.4 billion credit facility that includes a $600 million five-year ABL revolver priced at Libor plus 125 bps to 150 bps based on excess availability with a 20 bps to 25 bps unused fee, and a $1.8 billion seven-year covenant-light senior secured term loan B (Ba2/BB+) priced at Libor plus 450 bps with a 0.75% Libor floor and sold at a discount of 98. The term loan B has 101 soft call protection for one year.

During syndication, pricing on the term loan was increased from talk of Libor plus 350 bps to 375 bps, the discount widened from 99.5, the call protection was extended from six months, amortization was lifted to 1% in year one and 5% per annum thereafter, from 1% per annum, the incremental allowance was reduced to $350 million from $700 million and the 12-month MFN sunset provision was removed.

Goldman Sachs Bank USA and Guggenheim Securities LLC led the term loan B.

Ascena is a Mahwah, N.J.-based specialty retailer offering clothing, shoes and accessories for missy and plus-size women. ANN is a New York-based women’s specialty retail fashion company.

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