SuperMedia up on tender; Alere, Landry's break; NPC tweaks deal; Barrington moves deadline

By Sara Rosenberg

New York, Dec. 7 - SuperMedia Inc.'s term loan was higher in trading on Wednesday after the company relaunched its sub-par buyback offer with a higher price range than was offered in last month's failed attempt.

Also in trading, Alere Inc.'s incremental term loan B-1 tranche emerged in the secondary market in the morning, with levels quoted above its original issue discount price, and Landry's Inc.'s add-on term loan freed up as well.

Switching to the primary, NPC International Inc. made some changes to its term loan, lowering the coupon and tightening the original issue discount, as the tranche has been extremely well received by investors, and Barrington Broadcasting Group LLC accelerated the commitment deadline on its deal.

Additionally, Capital Safety and LIN Television Corp. came out with price talk as both transactions were launched to lenders during market hours, and Lord & Taylor guidance surfaced after a rating from Standard & Poor's was announced.

SuperMedia loan rises

SuperMedia's term loan was stronger in the secondary market on Wednesday following news that a new $117 million cash-offer buyback for the debt was launched with a price range of 43 to 50, according to a trader.

The term loan was quoted at 48 bid, 50 offered immediately after the news hit, and then it came in to 47 bid, 49 offered by the afternoon, the trader remarked. Prior to the news, the debt was seen at 45 bid, 46½ offered.

Lender responses to the tender offer are due by 3 p.m. ET on Tuesday.

In November, the company had launched a repurchase transaction with the same cash offer size but a price range of 43 to 46. This offer was then pulled because of insufficient interest.

SuperMedia, a Dallas-based directory publisher, has the ability to buy back the term loan borrowings at a price below par using up to $122.5 million of cash until Jan. 1, 2014 as a result of a recently completed amendment to its credit facility.

Alere frees up

Alere's $250 million incremental term loan B-1 broke for trading, with levels seen at 98 bid, 99 offered on the open and then it slipped to 97¾ bid, 98¼ offered, according to a trader.

The company's existing term loan B, which trades separately, was also being quoted at 97¾ bid, 98¼ offered, pretty much flat on the day, the trader added.

Pricing on the incremental loan is Libor plus 350 basis points with a 1% Libor floor, which matches existing B loan pricing. However, the new B-1 was sold at an original issue discount of 971/2, while the existing loan was sold at 99½ when done in June.

Both tranches have a pricing step-up by 25 bps when senior secured leverage is greater than 3.0 times and by an additional 50 bps when it's 4.0 times. This grid is calculated at the end of the fiscal year, which is March 2012.

Alere repaying debt

Proceeds from Alere's new term loan B-1 will be used to repay $190 million of revolver borrowings and put cash on the balance sheet.

During syndication, the incremental loan was upsized from $200 million, and as a result, the revolver paydown was lifted from $150 million. Also, the discount price firmed at the wide end of the 97½ to 98 talk.

Senior leverage is 3.3 times and total leverage is 5.1 times.

GE Capital Markets, Jefferies & Co. and Credit Suisse Securities (USA) LLC are the lead banks on the deal.

Alere is a Waltham, Mass.-based provider of near-patient diagnosis, monitoring and health management to enable individuals to improve their health and quality of life at home.

Landry's hits secondary

Another deal to free up was Landry's $50 million add-on term loan, with levels quoted at 98 bid, according to a trader. The debt trades with the existing term loan, which was flat on the day.

Pricing on the add-on is the same as the existing term loan - Libor plus 450 bps with a 1.75% Libor floor. The add-on was sold at an original issue discount price of 971/2.

Jefferies & Co. and Wells Fargo Securities LLC are the lead banks on the deal that will be used, along with $115 million (upsized from $90 million) of 11 5/8% senior secured notes due 2015, to fund the acquisition of McCormick & Schmick's Seafood Restaurants Inc. for $8.75 per share in cash. Total equity value of the transaction is $131.6 million.

Closing is expected in late December or early January, subject to the tender of a majority of shares, the expiration of the waiting period under Hart-Scott-Rodino and other customary conditions.

Landry's is a Houston-based full-service restaurant, hospitality and entertainment company. McCormick is a Portland, Ore.-based operator of seafood restaurants in the upscale dinning segment.

BWIC surfaces

A $230 million cash loan Bid Wanted In Competition was announced on Wednesday, and market players are being told to get their bids in by 11 a.m. ET on Friday, according to a trader.

The portfolio consists of about 165 names, and the tranche amounts that are being offered are all less than $3 million.

Some of the names listed include Bausch & Lomb Inc., Charter Communication Operating LLC, Federal Mogul Corp., First Data Corp., HCA Inc., Las Vegas Sands LLC, ServiceMaster Co., Texas Competitive Electric Holdings Co. LLC and Univision Communications Inc.

NPC flexes lower

In more loan happenings, NPC International announced revisions to its oversubscribed $375 million term loan in the morning, including lowering the spread to Libor plus 525 bps from Libor plus 550 bps and moving the original issue discount to 98 from the 97 area, according to a market source.

The term loan still provides for a 1.5% Libor floor and 101 soft call protection for one year.

The company's $465 million senior credit facility (Ba3/B) also includes a $90 million revolver, which was upsized from a launch size of $85 million and an originally anticipated amount of $75 million, due to high demand.

Commitments were due at 5 p.m. ET on Wednesday. The original deadline had been Dec. 13, but it was moved up earlier this week.

Barclays Capital Inc. and Goldman Sachs & Co. are leading the credit facility that is targeted to allocate in the next few days.

NPC being acquired

Proceeds from NPC's credit facility, $190 million of senior notes due 2020 and about $240 million of equity will be used to fund the acquisition of the company by Olympus Partners and to refinance all existing debt.

The bonds are expected to price late this week, and replaced an originally planned roughly $190 million mezzanine financing.

Closing on the buyout is expected by Dec. 28, subject to regulatory approvals and customary conditions.

NPC, an Overland Park, Kan.-based Pizza Hut franchisee, will have secured leverage of 3.3 times, net total leverage of 5.0 times and net lease adjusted leverage of 5.9 times.

Barrington shutting early

Barrington Broadcasting revised the commitment deadline on its $195 million credit facility (B2/B) to 3 p.m. ET on Thursday from Dec. 14 as a result of strong investor interest, according to a market source.

The facility, comprised of a $10 million five-year revolver and a $185 million 51/2-year term loan B, is talked at Libor plus 600 bps with a 1.5% Libor floor. The term loan B has an original issue discount in the 97 context and 101 soft call protection for one year.

Bank of America Merrill Lynch and Wells Fargo Securities LLC are the lead banks on the deal that will be used to refinance existing credit facilities and repay 10½% senior subordinated notes due 2014.

Barrington is a Schaumburg, Ill.-based owner and operator of network affiliated television stations.

Capital Safety sets talk

Also on the topic of new issues, Capital Safety held a bank meeting on Wednesday to launch its proposed $420 million senior secured credit facility, and with the event, pricing guidance was disclosed, according to a market source.

Both the $45 million five-year revolver and the $375 million seven-year term loan B are being talked at Libor plus 525 bps with an original issue discount of 98, the source said. The revolver has no Libor floor and the B loan has a 1.25% Libor floor as well as 101 soft call protection for one year.

UBS Investment Bank, Morgan Stanley Senior Funding Inc., Mizuho Securities USA Inc. and KKR Capital Markets are leading the deal will be used, along with $175 million of junior capital, to fund the $1.12 billion buyout of the company by Kohlberg Kravis Roberts & Co. LP from Arle Capital Partners.

Commitments are due on Dec. 15 and closing is expected in January, subject to customary conditions, including regulatory approval.

Capital Safety is a Red Wing, Minn.-based provider of fall protection equipment.

LIN guidance emerges

Also launching with a bank meeting on Wednesday was LIN Television's $260 million seven-year term loan B (Ba3/BB-), and shortly before the 10 a.m. ET meeting started, price talk began circulating around the market, according to a source.

The term loan B is guided at Libor plus 375 bps to 400 bps with a 1.25% Libor floor and an original issue discount of 981/2, the source said.

J.P. Morgan Securities LLC is the lead bank on the deal that will be used to redeem all of the company's outstanding 6.5% senior subordinated notes due 2013.

The new B loan will join the company's existing credit agreement that provides for a $125 million term loan A due October 2017 and a $75 million due October 2016.

LIN, a Providence, R.I.-based television and digital media company, expects to close on the term loan B this month and redeem the notes in January.

Lord & Taylor pricing

Lord & Taylor came out with talk on its in market $450 million term loan (BB) at Libor plus 450 bps with a 1.25% Libor floor, an original issue discount of 98 and 101 soft call protection for one year, according to a market source.

The loan launched with a bank meeting on Tuesday, but price talk was waiting on ratings. The talk was disclosed after the Standard & Poor's rating was released, and the Moody's Investors Service rating was expected shortly.

Lead bank Credit Suisse Securities (USA) LLC is seeking commitments by Dec. 16.

Proceeds will be used by the New York-based upscale, specialty-retail department store chain to help refinance commercial mortgage-backed securities.

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