J. Crew, Consolidated Aero, Alliance Laundry break; Cengage, Stuart, SafeNet, Arysta revised

By Sara Rosenberg

New York, Feb. 28 - J. Crew Group Inc.'s term loan B hit the secondary market on Friday with levels seen above its original issue discount price, and Consolidated Aerospace Manufacturing LLC and Alliance Laundry Holdings LLC freed up too.

Over in the primary, Cengage Learning Acquisitions Inc. tightened the spread and original issue discount on its term loan, Stuart Weitzman LLC upsized its term loan B and trimmed pricing, SafeNet Inc. finalized pricing on its first-lien term loan at the wide end of guidance and reduced the spread on its second-lien term loan, and Arysta LifeScience Corp. modified the offer price on its add-on term loan.

Also, further details on Rite Aid Corp., Interline Brands Inc. and PRA International surfaced with launch, and Avast, OneStopPlus Group, SBP Holdings, Orient-Express Hotels Interfin Ltd., Rexnord LLC and Neiman Marcus Group LLC came out with new deal plans.

J. Crew starts trading

J. Crew's $1.57 billion seven-year term B (B1/B) broke for trading on Friday, with levels quoted at 99 5/8 bid, par offered and then it moved to 99 ¾ bid, par 1/8 offered, according to traders.

Pricing on the loan is Libor plus 300 basis points with a 1% Libor floor and it was sold at an original issue discount of 991/2.

Bank of America Merrill Lynch and Goldman Sachs Bank USA are leading the deal that will be used to refinance existing debt.

J. Crew is a New York-based retailer of women's, men's and children's apparel, shoes and accessories.

Consolidated Aerospace frees up

Consolidated Aerospace Manufacturing's credit facility also began trading, with the $225 million six-year term loan quoted at par ¼ bid, par ¾ offered, according to a market source.

Pricing on the term loan is Libor plus 400 bps, after firming during syndication at the tight end of the Libor plus 400 bps to 425 bps talk. There is a 1% Libor floor and 101 soft call protection for six months, and the debt was issued at a discount of 991/2.

The company's $250 million senior secured credit facility also includes a $25 million five-year revolver.

RBS Citizens is leading the deal that will be used to fund an acquisition.

Consolidated Aerospace is a manufacturer of fittings, hardware and fastening solutions for the aircraft and aerospace industries.

Alliance Laundry tops par

Another deal to free up was Alliance Laundry's $230 million incremental first-lien term loan, with levels quoted at par 3/8 bid, par 7/8 offered, a trader remarked.

Pricing on the loan is Libor plus 325 bps with a 1.25% Libor floor and it was issued at par after widening recently from revised talk of par ½ but tightening from initial talk of 993/4.

BMO Capital Markets and Bank of America Merrill Lynch are leading the deal that will be used to help fund the acquisition of Primus Laundry Equipment Group, a Gullegem, Belgium-based marketer of commercial washer-extractors, tumbler dryers, ironers and feeding and folding equipment.

Closing is expected by the end of March, subject to customary conditions.

Alliance Laundry is a Ripon, Wis.-based designer, manufacturer and marketer of commercial laundry equipment.

American Pacific levels

Also in trading, American Pacific Corp.'s $330 million five-year term loan B was seen quoted at 101 bid, 102 offered after breaking in the same context during the previous session, according to a market source.

Pricing on the B loan is Libor plus 600 bps with a 1% Libor floor and it was sold at a discount of 991/4. There is call protection of 102 for one year then 101 for six months.

During syndication, pricing on the loan firmed at the low end of the Libor plus 600 bps to 650 bps talk, the discount was revised from 99 and the call protection was changed from 102 in year one and 101 in year two.

The company's $365 million senior secured credit facility also includes a $35 million 41/2-year revolver.

Proceeds helped fund the company's buyout by H.I.G. Capital LLC for $46.50 per share, or $392 million.

Net leverage is 4.8 times.

Jefferies Finance LLC and Credit Suisse Securities (USA) LLC led the deal for the Las Vegas-based custom manufacturer of fine and specialty chemicals.

Cengage flexes lower

Switching to the primary, Cengage Learning trimmed pricing on its $1.75 billion six-year first-lien covenant-light term loan (B2) to Libor plus 600 bps from Libor plus 700 bps and moved the original issue discount to 99½ from 99, according to a market source.

The term loan has a 1% Libor floor and 101 soft call protection for six months.

Commitments are due at 5 p.m. ET on Monday, moved up from the original Wednesday deadline, the source said.

The $1.95 billion credit facility also provides for a $200 million ABL revolver.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc., Citigroup Global Markets Inc. and KKR Capital Markets are leading the deal that will be used to help fund the company's emergence from Chapter 11.

Cengage is a Stamford, Conn.-based provider of teaching, learning and research services for the academic, professional and library markets.

Stuart Weitzman revised

Stuart Weitzman lifted its six-year term loan B to $250 million from $220 million, trimmed pricing to Libor plus 350 bps from Libor plus 400 bps and moved up the commitment deadline to noon ET on Monday from Wednesday, according to a market source.

As before, the B loan has a 1% Libor floor, a discount of 99½ and 101 soft call protection for six months.

The New York-based footwear and handbag company's now $285 million senior secured credit facility also includes a $35 million asset-based revolver.

Jefferies Finance LLC and MCS Corporate Lending LLC are leading the term loan, and Wells Fargo Securities LLC is leading the revolver.

Proceeds will be used to help fund the buyout of the company by Sycamore Partners, and, due to the term loan B upsizing, the amount of equity being used for transaction was reduced, the source remarked.

Closing is subject to completion of the purchase of Stuart Weitzman's parent company, Jones Group Inc., by Sycamore Partners LP.

SafeNet adjusts terms

SafeNet set the spread on its $175 million six-year first-lien term loan (B1/B+) at Libor plus 450 bps, the high end of the Libor plus 425 bps to 450 bps talk, and the original issue discount at 99, the wide end of the 99 to 99½ talk, according to a market source. The 1% Libor floor and 101 soft call protection for six months were unchanged.

In addition, pricing on the $50 million seven-year second-lien term loan (Caa1/CCC+) was lowered to Libor plus 750 bps from talk of Libor plus 775 bps to 800 bps, while the 1% Libor floor, discount of 98½ and call protection of 102 in year one and 101 in year two were left intact, the source said.

The company's $255 million credit facility also includes a $30 million five-year revolver.

Bank of America Merrill Lynch and Deutsche Bank Securities Inc. are leading the deal that will be used to refinance existing debt and fund a dividend.

SafeNet is a Belcamp, Md.-based provider of information security software and encryption technology.

Arysta tweaks OID

Arysta changed the original issue discount on its $175 million add-on first-lien term loan (B1/B) to 99 7/8 from talk of 99½ to 993/4, according to a market source.

As before, the loan is priced at Libor plus 350 bps with a 1% Libor floor and has 101 soft call protection through May 2014.

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

Arysta LifeScience is a Tokyo-based crop protection and life science company.

Rite Aid details loan

Also on the primary front, Rite Aid held its call on Friday morning, launching a $1.15 billion senior secured first-lien term loan tranche 7 due Feb. 21, 2020 with talk of Libor plus 275 bps with a 0.75% Libor floor, a par offer price and 101 soft call protection for six months, according to a market source.

Cashless roll commitments are due at 5 p.m. ET on Thursday and new lender commitments are due at 5 p.m. ET on March 7, the source said, adding that closing is expected on March 13.

Citigroup Global Markets Inc., Wells Fargo Securities LLC, Bank of America Merrill Lynch, GE Capital Markets, Goldman Sachs Bank USA and Morgan Stanley Senior Funding Inc. are leading the deal that will be used to refinance an existing senior secured first-lien term loan tranche 6 priced at Libor plus 300 bps with a 1% Libor floor.

Rite Aid is a Camp Hill, Pa.-based drugstore chain.

Interline sets talk

Interline Brands released talk of Libor plus 350 bps with a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months on its $350 million first-lien term loan B (B2/B) that launched with a bank meeting in the morning, a market source said.

Commitments are due on March 12, the source continued.

Goldman Sachs Bank USA, Bank of America Merrill Lynch, Barclays, Wells Fargo Securities LLC, Credit Suisse Securities (USA) LLC and Keybanc Capital Markets are leading the deal that will be used to fund a tender offer which expires on March 25 for the company's 7½% notes due 2018, to repay some revolver debt and for working capital and general corporate purposes.

With the term loan, the company plans to amend its existing asset-backed revolver with Bank of America to allow for the new debt and reduce pricing.

Interline is a Jacksonville, Fla.-based distributor and direct marketer of broad-line maintenance, repair and operations products to the facilities maintenance end-market.

PRA launches

PRA International held a call at 11 a.m. ET, launching a roughly $888 million term loan with talk of Libor plus 300 bps to 325 bps with a 1% Libor floor, a par offer price and 101 soft call protection or six months, according to a market source.

Commitments are due on March 7, the source said.

UBS Securities LLC, KKR Capital Markets, Credit Suisse Securities (USA) LLC, Jefferies Finance LLC and Citigroup Global Markets Inc. are leading the deal that will be used to reprice an existing term loan from Libor plus 400 bps with a 1% Libor floor.

PRA is a Raleigh, N.C.-based contract research organization, providing outsourced clinical development services to the biotechnology and pharmaceutical industries.

Avast on deck

Avast set a bank meeting for 10 a.m. ET in New York on Tuesday to launch a $460 million credit facility, according to a market source.

The facility consists of a $40 million five-year revolver and a $420 million six-year first-lien covenant-light term loan, the source said.

Commitments are due on March 18.

Credit Suisse Securities (USA) LLC, UBS Securities LLC and Jefferies Finance LLC are leading the deal that will be used to help fund a major investment in the company by CVC Capital Partners.

Closing is expected in March.

Avast is a Czech Republic-based provider of security software for PCs, smartphones and tablets.

OneStopPlus deal surfaces

OneStopPlus will hold a bank meeting at 10 a.m. ET on Tuesday to launch a $465 million term loan B that has 101 soft call protection for six months, according to a market source.

Goldman Sachs Bank USA, Jefferies Finance LLC and BMO Capital Markets are leading the deal.

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

OneStopPlus is a New York-based catalog retailer and online marketplace for plus-size consumers.

SBP coming soon

SBP Holdings scheduled a bank meeting for 10:30 a.m. ET in New York on Thursday to launch a $452.5 million credit facility, according to a market source.

The facility consists of a $100 million five-year ABL revolver, a $225 million seven-year first-lien term loan with a 1% Libor floor and a $127.5 million eight-year second-lien term loan with a 1% Libor floor, the source said.

UBS Securities LLC is leading the deal that will be used to help fund the acquisition of Delta Rigging & Tools, a Pearland, Texas-based provider of lifting and rigging products and related services, and to refinance existing debt.

SBP is a Glen Burnie, Md.-based industrial products distributor, specializing in rubber products and wire rope & rigging products.

Orient-Express joins calendar

Orient-Express Hotels intends to hold a bank meeting at 10 a.m. ET in New York on Tuesday and at 9 a.m. GMT in London on Thursday to launch a new credit facility, according to a market source.

The facility consists of a $105 million five-year multi-currency revolver, a $345 million seven-year term loan and a €150 million seven-year term loan, the source said.

Barclays and J.P. Morgan Securities LLC are leading the transaction that will be used to refinance the company's existing capital structure.

Orient-Express is an operator of luxury hotels, restaurants, trains, cruises and safaris.

Rexnord readies call

Rexnord emerged with plans to hold a call at 1 p.m. ET on Monday to launch a repricing of its roughly $1.95 billion first-lien covenant-light term loan due August 2020 from Libor plus 300 bps with a 1% Libor floor, according to a market source.

Commitments are due on March 7, the source remarked.

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

Rexnord is a Milwaukee-based industrial company comprising two strategic platforms: process & motion control and water management.

Neiman plans repricing

Neiman Marcus set a call for noon ET on Monday to launch a repricing of its $2,943,000,000 first-lien covenant-light term loan due October 2020 from Libor plus 400 bps with a 1% Libor floor, according to a market source.

The repriced loan will have a 1% Libor floor, the source said.

Commitments are due on March 7.

Credit Suisse Securities (USA) LLC, RBC Capital Markets LLC and Deutsche Bank Securities Inc. are leading the deal.

Neiman Marcus is a Dallas-based luxury retailer.

Wesco closes

In other news, Wesco Aircraft Holdings Inc. completed its $525 million seven-year senior secured term loan B (Ba3/BB-) that is priced at Libor plus 250 bps with a 0.75% Libor floor, a news release said. The loan has 101 soft call protection for six months and was sold at an original issue discount of 993/4.

During syndication, pricing on the loan was cut from Libor plus 275 bps and the discount was changed from 991/2.

Bank of America Merrill Lynch, Barclays, Morgan Stanley Senior Funding Inc. and RBC Capital Markets led the deal that was used with a $40 million draw under the company's existing revolver and cash on hand to fund the acquisition of Haas Group Inc. from the Jordan Co. LP.

Wesco is a Valencia, Calif.-based provider of comprehensive supply chain management services to the aerospace industry. Haas is a West Chester, Pa.-based provider of chemical supply chain management solutions to the commercial aerospace, airline, military, energy and other markets.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.