Crown Media frees up; Styron dips; Smart Modular raises price talk; Stackpole readies deal

By Sara Rosenberg

New York, July 8 - Crown Media Holdings Inc.'s credit facility made its way into the secondary market on Friday afternoon, with levels quoted above its original issue discount price, and Styron's term loan was a touch weaker in an overall heavier market as the company is seeking an amendment that could result in a paydown.

Switching to the primary, Smart Modular Technologies Inc. flexed spread talk higher on its term loan B, while leaving all other terms unchanged, including the Friday commitment deadline, and Stackpole International is gearing up to bring a new deal to market.

Crown Media starts trading

Crown Media's credit facility broke for trading on Friday, with the $210 million seven-year term loan B quoted at 99¼ bid, 99¾ offered, according to a trader.

Pricing on the B loan is Libor plus 450 basis points with a 1.25% 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 was increased from talk in the Libor plus 400 bps area and the discount firmed at the wide end of the 99 to 99½ talk.

The company's $240 million facility (Ba2/BB-) also provides for a $30 million five-year revolver.

J.P. Morgan Securities LLC is the lead bank on the deal that will be used to refinance existing intercompany debt and preferred stock.

Crown Media is a Studio City, Calif.-based owner and operator of pay television channels, including the Hallmark Channel and Hallmark Movie Channel.

Styron term loan slides

Styron's term loan moved to par bid, par ¼ offered from par 1/8 bid, par 3/8 offered on the back of the launch of an amendment proposal and in sympathy with the general market feeling a bit lower, according to a trader.

Under the amendment, the company is seeking permission to sell $800 million of bonds, with $400 million of that being used to repay term loan borrowings and the remainder funding a dividend.

Also, the amendment would remove the interest coverage ratio and revise the secured leverage requirement.

Deutsche Bank Securities Inc. is the lead bank on the amendment that launched late Thursday.

Lenders are being offered a 15 bps amendment fee and consents are due on Tuesday.

Styron plans IPO

As was reported in June, Styron is also planning to repay some of its term loan with proceeds from a proposed initial public offering of ordinary shares.

Remaining proceeds from the IPO will be used for general corporate purposes.

As of March 31, the company had $1.397 billion outstanding under its term loan. The debt is priced at Libor plus 450 bps with a 1.5% Libor floor.

Styron is a Berwyn, Pa.-based materials company established in June 2010. The company will be changing its name to Trinseo SA later this year.

Smart Modular lifts spread

Over in the primary, Smart Modular raised price talk on its $300 million seven-year covenant-light first-lien term loan B (B2/B+) to Libor plus 700 bps from the Libor plus 650 bps area, while leaving the 1.25% Libor floor and original issue discount guidance of 98 to 98½ intact, according to a source.

As before, the B loan includes call protection of 102 in year one and 101 in year two.

The company's $350 million senior secured credit facility also provides for a $50 million five-year first-lien first-out revolver (B1).

J.P. Morgan Securities LLC and UBS Securities LLC are leading the deal that will be used, along with up to $381 million of equity, to fund the buyout of the company by Silver Lake Partners and Silver Lake Sumeru for $9.25 per share in cash. The transaction is valued at about $645 million.

Closing is expected in the third quarter, subject to receipt of shareholder and regulatory approval.

Smart Modular is a Newark, Calif.-based manufacturer of memory modules and solid state storage products.

Stackpole deal emerges

In more primary happenings, news surfaced that Stackpole International will be holding a bank meeting on Tuesday morning to launch a proposed $165 million senior secured credit facility that consists of a $25 million five-year revolver and a $140 million six-year term loan, according to a market source.

RBC Capital Markets LLC, BNP Paribas Securities Corp. and UBS Securities LLC are the joint bookrunners on the deal that will be used, along with a $45 million seven-year subordinated mezzanine facility, to fund the buyout of the company by the Sterling Group.

Expected corporate ratings are B2/B+, and expected facility ratings are B1/BB-.

Pro forma for the transaction senior leverage will be 2.8 times and total leverage will be 3.7 times.

Stackpole is a supplier of highly engineered engine and transmission oil pumps and powdered metal components to automotive and original equipment manufacturers.

Primedia readies close

Primedia Inc. is targeting the close of its $315 million credit facility (B) on Wednesday, as commitments towards the recently revised deal were due at 5 p.m. ET on Friday, a market source told Prospect News.

As was already reported, the company increased pricing on its $275 million term loan B to Libor plus 600 bps from Libor plus 500 bps, increased the original issue discount to 96 from talk of 98½ to 99, added soft call protection of 102 in year one and 101 in year two and shortened the maturity to 6½ years from seven years. The 1.5% Libor floor was left unchanged.

In addition, pricing on the $40 million five-year revolver that will be undrawn at close was also flexed up to Libor plus 600 bps from Libor plus 500 bps. This tranche has no Libor floor and an undrawn fee of 62.5 bps.

Bank of America Merrill Lynch, Barclays Capital Inc., UBS Securities LLC and RBC Capital Markets LLC are the lead banks on the deal

Primedia funding buyout

Proceeds from Primedia's credit facility will be used, along with equity, to fund the acquisition of the company by TPG Capital for $7.10 per share in cash. The transaction enterprise value is about $525 million.

The facility includes a $60 million accordion feature plus an unlimited amount, subject to net senior secured leverage of 3.25 times, which was revised from 3.5 times are the time of the pricing flex. There is 25 bps most favored nation language with no "sunsetting" provision, changed from 50 bps with a two-year sunsetting provision, the source added.

In addition, the agreement has a 75% excess cash flow sweep with step-downs to 50%, 25% and 0%. Originally, the sweep was 50% with step-downs to 25% and 0%.

Primedia is a Norcross, Ga.-based provider of internet, mobile and print guides to help people find apartments, houses for rent or new homes for sale.

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