QoLmeds breaks; Gymboree dips with CFO resignation; Ceridian softens on refinancing

By Sara Rosenberg

New York, July 14 – QoLmeds/Genoa Healthcare’s credit facility freed up for trading on Monday with levels on the term loan seen above its original issue discount, Gymboree Corp.’s term loan weakened as a management changewas announced, and Ceridian LLC’s bank debt was bid lower with refinancing news.

Moving to the primary market, Energy & Exploration Partners LLC modified the original issue discount on its term loan, and Hilex Poly LLC reduced the spread on its term loan and extended the call protection.

Additionally, Amaya Gaming Group Inc. (Amaya B.V. and Amaya (US) Co-Borrower LLC) timing surfaced, and Abercrombie & Fitch Co., Styrolution, CSM Bakery Solutions LLC, Burlington Coat Factory Warehouse Corp., Chrysaor Ltd., QSR (QSRH Borrowing Co. pty Ltd. and US Finco LLC) and inVentiv Health joined this week’s calendar.

QoLmeds starts trading

QoLmeds/Genoa Healthcare’s credit facility hit the secondary market on Monday, with the $285 million six-year covenant-light term loan quoted at par bid, 101 offered, according to a market source.

Pricing on the term loan is Libor plus 450 basis points with a 1% Libor floor and an original issue discount of 99½. There is 101 soft call protection for one year.

Last week, pricing on the term loan was lowered from Libor plus 500 bps, the discount tightened from 99, the call protection was extended from six months and the MFN sunset provision was eliminated.

The company’s $315 million credit facility (B2/B) also includes a $30 million five-year revolver.

Jefferies Finance LLC and Credit Suisse Securities (USA) LLC are leading the deal that will be used with equity to fund QoLmeds’ acquisition of Genoa.

QoLmeds, owned by Nautic Partners, is a Pittsburgh-based specialty pharmacy for the mental health community. Genoa is a Tukwila, Wash.-based provider of pharmacy, phlebotomy and laboratory services.

Gymboree retreats

Also in trading, Gymboree’s term loan fell to 83½ bid, 84½ offered from 85 bid, 86½ offered after news came out that the company’s chief financial and principal accounting officer, Evan Price, gave notice on July 8 of his resignation, which will be effective as of July 24, a trader remarked.

The company said in an 8-K filed with the Securities and Exchange Commission that Lynda Gustafson will act as the interim chief financial officer until a permanent replacement is found.

Gymboree is a San Francisco-based specialty retailer.

Ceridian softens

Ceridian’s term loan dipped to par bid, par ½ offered from par ¼ bid, par ½ offered as the company surfaced with plans to refinance/bifurcate the existing term loan into two distinct loan tranches, according to a market source.

For the refinancing, the company is launching with a bank meeting at 9:30 a.m. ET in New York on Wednesday a $673 million term loan B-1 due May 2017 and a $702 million term loan B-2 due September 2020.

Commitments are due on July 29.

Deutsche Bank Securities Inc. is leading the $1,375,000,000 of term loans.

Ceridian is a Minneapolis-based provider of human resources, transportation and retail information management services.

Energy & Exploration revised

Switching to the primary, Energy & Exploration widened the original issue discount on its $775 million 4½-year senior secured term loan B to 98½ from 99, according to a market source.

As before, the loan is priced at Libor plus 675 basis points with a 1% Libor floor, and there is hard call protection of 102 in year one and 101 in year two.

Recommitments were due at 2 p.m. ET on Monday, the source said.

Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and Global Hunter Securities are leading the deal that will be used with $375 million of convertible subordinated notes due 2019 to fund the roughly $715 million acquisition of 18,300 net acres in Houston and Madison Counties, Texas, from TreadStone Energy Partners LLC, to refinance the company’s existing senior unsecured notes and to fund a portion of its 2014 and 2015 capital expenditure budget.

Closing is expected this week, but the effective date of the TreadStone acquisition is April 1.

Energy & Exploration is a Fort Worth-based exploration and production company.

Hilex Poly flexes

Hilex Poly trimmed pricing on its $470 million seven-year covenant-light term loan to Libor plus 400 bps from Libor plus 425 bps, extended the 101 soft call protection to one year from six months and eliminated the MFN sunset, a market source said.

Unchanged on the term loan was the 1% Libor floor and original issue discount of 99½.

The company’s $555 million senior credit facility (B2/B) also includes an $85 million five-year revolver.

GE Capital, Macquarie Capital (USA) Inc. and BMO Capital Markets Corp. are leading the deal that will be used with $40 million of mezzanine financing from Northwestern Mutual Life to fund the acquisition of Duro Bag Manufacturing Co., a Florence, Ky.-based manufacturer of paper bags.

The Hartsville, S.C.-based manufacturer of plastic bags expects to close on the acquisition at the end of this quarter, subject to customary conditions and regulatory approvals.

Amaya timing emerges

Amaya Gaming came out with timing on the launch of its $2.9 billion senior secured credit facility, with the bank meeting set to take place at 12:30 p.m. ET in New York on Wednesday, and there will also be one-on-one meetings in New York and calls available on Thursday and Friday, a source said.

The facility consists of a $100 million five-year revolver, a $2 billion seven-year first-lien covenant-light term loan and an $800 million eight-year second-lien covenant-light term loan.

Deutsche Bank Securities Inc., Barclays and Macquarie Capital (USA) Inc. are leading the deal, with the Deutsche Bank left lead on the first-lien loan and Barclays left lead on the second-lien loan.

Proceeds will be used with $1 billion of convertible preferred shares, $642 million from an equity issuance and $238 million in cash on hand to fund the acquisition of Oldford Group Ltd. for $4.9 billion.

Closing is expected on or about Sept. 30, subject to approval by Amaya’s shareholders and regulatory approvals.

Amaya is a Pointe-Claire, Quebec-based provider of gaming products and services. Oldford Group is an Onchan, Isle of Man-based operator of gaming and related businesses and brands.

Abercrombie coming soon

In more primary happenings, Abercrombie & Fitch plans to hold a bank meeting on Thursday to launch a $725 million credit facility, according to a market source.

The facility consists of a $325 million seven-year term loan B led by Wells Fargo Securities LLC, PNC Capital Markets LLC, J.P. Morgan Securities LLC and Goldman Sachs Lending Partners, and a $400 million five-year asset-based revolver led by Wells Fargo, PNC and JPMorgan.

Proceeds will be used to refinance an existing credit facility that includes a $350 million unsecured revolver due July 27, 2016 and a $131.5 million term loan A due Feb. 23, 2017, and for general corporate purposes, including potential share repurchases.

Abercrombie & Fitch is a New Albany, Ohio-based retailer of casual apparel for men, women and kids.

Styrolution readies deal

Styrolution scheduled a bank meeting for 10 a.m. ET in New York on Wednesday to launch a €1.6 billion equivalent U.S. and euro term loan B, according to a market source.

Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Barclays, HSBC and J.P. Morgan Securities LLC are the lead banks on the deal, with Citigroup the left lead on the U.S. portion and Credit Suisse the left lead on the euro portion.

Recently, it was announced that Ineos will acquire BASF SE’s 50% share in the company, so that it will be wholly owned by Ineos.

Styrolution is a Frankfurt, Germany-based styrenics supplier.

CSM sets meeting

CSM Bakery will hold a bank meeting at 12:30 p.m. ET in New York on Wednesday to launch $313 million of tack-on term loans, and an adjustment to existing term loan pricing.

The debt consists of a $157 million first-lien covenant-light tack-on term loan due July 2020 and a $156 million second-lien covenant-light tack-on term loan due July 2021, sources said.

Talk on the first-lien loan is Libor plus 400 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.

Credit Suisse Securities (USA) LLC and Morgan Stanley Senior Funding, Inc. are leading the deal that will be used by the producer of bakery ingredients and products for a dividend recapitalization.

Additionally, the spread on the existing $693 million first-lien term loan is being lifted from Libor plus 375 bps, the spread on the existing $150 million second-lien term loan is increasing from Libor plus 750 bps, and an amendment is being sought for which lenders are offered a 15 bps consent fee.

Commitments are due on July 24, sources added.

Burlington plans refi

Burlington Coat intends to hold a call on Tuesday to launch a $1.2 billion seven-year term loan B that will be used to refinance existing debt, a market source said.

Talk on the loan is Libor plus 300 bps to 325 bps with a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months, the source continued.

J.P. Morgan Securities LLC is leading the deal for the Burlington, N.J.-based discount retailer.

Chrysaor joins calendar

Chrysaor scheduled a bank meeting for 10 a.m. ET in New York on Wednesday and a bank meeting in London on Thursday to launch $540 million in new senior secured term loans, according to a market source.

The debt consists of a $340 million 3½-year first-lien term loan and a $200 million four-year second-lien term loan, the source said.

Barclays is leading the deal that will be used to repay existing debt in relation to an outstanding loan from Premier Oil and provide capital for remaining development costs of the company’s Solan field in the North Sea.

Chrysaor is a London-based company that develops and commercializes oil and gas discoveries in the North Sea and Ireland.

QSR on deck

QSR is set to hold a bank meeting at 10 a.m. ET in New York on Wednesday to launch $240 million of term loans, according to a market source.

The debt consists of a $185 million seven-year first-lien term loan with 101 soft call protection for one year and a $55 million 7½-year second-lien term loan with call protection of 102 in year one and 101 in year two, the source said.

The company’s credit facility also includes a A$10 million revolver.

Commitments are due on July 30, the source added.

Credit Suisse Securities (USA) LLC and Morgan Stanley Senior Funding Inc. are leading the deal that will be used to refinance existing debt.

QSR is a franchisor and operator of quick service restaurants in Australia.

inVentiv readies call

inVentiv Health scheduled a conference call for 9:30 a.m. ET on Tuesday to launch a new loan deal to existing and potential lenders, according to a market source.

Citigroup Global Markets Inc. is leading the transaction.

inVentiv is a Burlington, Mass.-based provider of clinical, consulting and commercial services to the health care industry.

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