BWAY breaks; Dex, SuperMedia bank debt higher; Dupont, Laureate, NFR Energy revise deals

By Sara Rosenberg

New York, Jan. 15 - BWAY Corp.'s add-on term loan made its way into the secondary market on Tuesday, Dex One Corp. subsidiaries, Dex West and Dex East, saw their bank debt rise in active trading, and SuperMedia Inc.'s term loan was better too.

Over in the primary, Dupont Performance Coatings reduced pricing on its revolver and U.S. term loan for a second time and widened the original issue discount on the term loan back to its originally proposed amount.

Also, Laureate Education Inc. tightened the original issue discount on its add-on term loan and accelerated the commitment deadline, and NFR Energy LLC upsized its second-lien loan while setting the spread at the low end of talk and cheapening the discount price.

Furthermore, DigitalGlobe Inc., OneStopPlus Group and Nuveen Investments disclosed talk with launch, Walter Investment Management Corp. began circulating talk on its upcoming deal, SuperValu Inc. revealed timing on the launch of its credit facility, details on Ocwen Loan Servicing LLC's loan emerged, and Michaels Stores Inc. came out with refinancing plans.

BWAY frees up

BWAY's $261 million add-on senior secured term loan B (B1) broke for trading on Tuesday, with the debt seen quoted at par ½ bid, 101½ offered, according to a trader.

Pricing on the add-on is Libor plus 325 basis points with a 1.25% Libor floor, in line with the existing term loan B as the debt is fungible. The add-on was sold at par after the offer price was tightened from the 99¾ area.

Deutsche Bank Securities Inc., Bank of America Merrill Lynch and Goldman Sachs & Co. are leading the loan that will help fund the acquisition of Ropak Packaging from the Linpac Group for about $265 million.

Also, the company is upsizing its ABL revolver to $200 million from $150 million and using $20 million of borrowings for the acquisition.

Closing is expected this month, and pro forma secured leverage is 3.3 times, total OpCo leverage is 4.2 times, and HoldCo leverage is 5.6 times.

BWAY is an Atlanta-based supplier of general line rigid containers. Ropak is a Fountain Valley, Calif.-based producer of rigid plastic shipping containers.

Dex debt better

Bank debt at Dex West and Dex East was active and stronger in the secondary market, while Dex One's other subsidiary, R.H. Donnelley Inc., saw its term loan levels tighten, according to a trader.

Dex West's term loan was quoted at 76½ bid, 77½ offered, up from 75¼ bid, 76¼ offered, the trader said.

Dex East's term loan was quoted at 72½ bid, 73½ offered, up from 71 bid, 72½ offered.

As for R.H. Donnelley, its term loan was quoted at 71 bid, 72 offered, versus 71 bid, 73 offered on Monday, the trader added.

Dex One is a Cary, N.C.-based marketing services provider.

SuperMedia rises

SuperMedia, who is working on completing a merger with Dex One, also saw its term loan gain ground in trading, with levels quoted at 74 bid, 75 offered, up from 73¼ bid, 74¼ offered, a trader remarked.

As previously reported, under the merger proposal, Dex One and SuperMedia shareholders will exchange their shares for shares in a new company, Dex Media. Dex One shareholders will get 0.2 share for each Dex One share they own, and SuperMedia shareholders will get 0.4386 share for each SuperMedia share they own.

The merger is expected to be completed in the first half of 2013.

SuperMedia is a Dallas-based directory publisher.

Dupont changed again

Moving to the primary, Dupont Performance Coatings cut the spread on its $400 million five-year revolver to Libor plus 350 bps from revised talk of Libor plus 375 bps and initial talk of Libor plus 400 bps, according to a market source.

Also, pricing on the $2.3 billion seven-year covenant-light U.S. term loan was lowered to Libor plus 350 bps from revised talk of Libor plus 375 bps and initial talk of Libor plus 425 bps, the source said.

In addition, the original issue discount on the U.S. term loan was moved back to 99 (proposed at launch) from a recently revised amount of 991/2, the source continued.

As before, the term loan has a 1.25% Libor floor and 101 soft call protection for one year, and the revolver has a 100 bps upfront fee.

Dupont euro loan

Dupont Performance Coatings' $3.218 billion senior secured credit facility (B1/B+) also includes a €390 million seven-year covenant-light term loan that is priced at Euribor plus 400 bps with a 1.25% floor and an original issue discount of 991/2, and has 101 soft call protection for one year.

Previously, the euro term loan was upsized from €150 million and the discount was tightened from 99. And, at launch, talk on the euro term loan was 25 bps wide of the U.S. term loan.

Recommitments for the U.S. debt are due at 5 p.m. ET on Wednesday and commitments for the euro term loan are due at noon GMT on Wednesday.

Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc., UBS Securities LLC, Jeffries Finance LLC and SMBC are leading the deal.

Dupont selling notes

In addition to the credit facility Dupont Performance Coatings will be selling €250 million and $750 million of bonds. These amounts were revised from €230 million and $1.1. billion, respectively, when the euro term loan was upsized.

Proceeds from the debt transactions and equity will fund Dupont Performance Coatings' buyout by the Carlyle Group from DuPont for $4.9 billion.

Net senior secured leverage is 4.5 times and net total leverage is 5.6 times.

Closing is expected this quarter, subject to customary conditions and regulatory approvals.

DuPont Performance Coatings is a Wilmington, Del.-based supplier of vehicle and industrial coating systems.

Laureate tweaks OID

Laureate Education modified the original issue discount on its $250 million add-on term loan (B) to 99½ from the 99 area and moved up the commitment deadline to 5 p.m. ET on Wednesday from Thursday, according to a market source.

Pricing on the add-on is Libor plus 400 basis points with a 1.25% Libor floor, which matches existing term loan pricing, and there is 101 soft call protection for one year.

Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Barclays, BMO Capital Markets Corp., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co., KKR Capital Markets and Morgan Stanley Senior Funding Inc. are leading the loan that will be used for general corporate purposes.

Laureate is a Baltimore-based provider of higher educational services.

NFR reworks terms

NFR Energy lifted its senior secured covenant-light second-lien term loan (Caa1/B) due Dec. 31, 2018 to $650 million from $500 million, firmed the spread at Libor plus 750 bps, the tight end of the Libor plus 750 bps to 775 bps talk, and tightened the discount to 99 from 98, according to a market source.

The loan still has a 1.25% Libor floor and call protection of 102 in year one and 101 in year two for any debt refinancing.

Bank of America Merrill Lynch, Citigroup Global Markets Inc. and Natixis are leading the deal that is being used with equity to fund the acquisition of TLP Energy LLC for $655 million and certain Eagle Ford Shale assets from two independent oil and gas companies for $81 million.

NFR Energy, a Houston-based independent energy company, is in the process of changing its name to Sabine Oil & Gas LLC.

DigitalGlobe guidance

DigitalGlobe held a bank meeting on Tuesday to launch its credit facility, and with the event, price talk on the term loan B was announced, according to a market source.

The $550 million seven-year term loan B is being shopped at Libor plus 325 bps to 350 bps with a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for one year, the source said.

Commitments for the $700 million senior secured credit facility (Ba2/BBB-), which also includes a $150 million undrawn five-year revolver, are due on Jan. 24, the source continued.

By comparison, recent SEC filings had the deal comprised of a $1.05 billion seven-year term loan and $150 million five-year revolver, with both tranches expected at Libor plus 500 bps. The term loan was outlined as having a 1.25% Libor floor and 101 soft call protection for one year.

The term loan came to market with a smaller than expected size because the company plans on selling $500 million of senior unsecured notes.

Morgan Stanley Senior Funding Inc., Bank of Tokyo-Mitsubishi UFJ Ltd., J.P. Morgan Securities LLC and Citigroup Global Markets Inc. leading the deal.

DigitalGlobe buying GeoEye

Proceeds from DigitalGlobe's loan and notes will fund the acquisition of GeoEye Inc. for about $900 million and refinance about $1 billion of existing debt. GeoEye shareowners have the right, subject to proration, to elect either 1.137 shares of DigitalGlobe common stock and $4.10 per share in cash, 100% of the payment in cash ($20.27) or 100% of the payment in stock (1.425 shares of DigitalGlobe common stock) per share.

Closing is expected by Jan. 31, conditioned on regulatory approval from the Federal Communications Commission and the National Oceanic and Atmospheric Administration. Shareowners of both companies have already approved the transaction, and antitrust clearance from the U.S. Department of Justice has been received.

DigitalGlobe is a Longmont, Colo.-based provider of commercial high-resolution earth imagery products and services. GeoEye is a Herndon, Va.-based source of geospatial information and insight.

OneStopPlus pricing

OneStopPlus came out with talk of Libor plus 475 bps to 500 bps with a 1.25% Libor floor, an original issue discount of 99 and 101 soft call protection for one year on its $280 million seven-year first-lien term loan that launched with a bank meeting in the morning, according to sources.

Also included in the company's $425 million credit facility is a $60 million five-year revolver and an $85 million 71/2-year second-lien term loan that has already been placed.

Goldman Sachs & Co. and Jefferies & Co. are leading the deal that will be used with equity to fiannce the acquisition of the company by Charlesbank Capital Partners and Webster Capital.

Closing is expected this quarter.

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

Nuveen launches refinancing

Nuveen Investments held its call during the session, at which time it launched to lenders a $2.57 billion term loan due May 13, 2017 that is talked at Libor plus 500 bps with no Libor floor and 101 soft call protection for one year, a market source said.

The loan will be used to refinance/reprice the company's existing first-lien term loan debt that carries an interest rate of Libor plus 550 bps with no Libor floor.

Commitments are due on Jan. 22, the source said.

Bank of America Merrill Lynch, Deutsche Bank Securities Inc., Citigroup Global Markets Inc., RBC Capital Markets LLC, Morgan Stanley Senior Funding Inc., UBS Securities LLC and Wells Fargo Securities LLC are leading the deal.

Nuveen is a Chicago-based provider of investment services to institutions as well as individual investors.

Walter floats talk

Walter Investment Management is planning to hold a call at 11 a.m. ET on Wednesday to launch a $475 million first-lien add-on term loan due Nov. 28, 2017, and talk on the deal has already come out at Libor plus 450 bps with a 1.25% Libor floor, an original issue discount of 99 to 991/2, and 101 repricing protection until Nov. 28, 2013, according to a market source.

The spread, floor and call protection on the add-on match those on the existing term loan.

Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc. and Bank of America Merrill Lynch are the leading the deal that is being launched to existing lenders.

Commitments are due on Jan. 23.

Proceeds will fund the initial installments for the purchase of the mortgage servicing rights related to the $93 billion in UPB of servicing from Bank of America, and for general corporate purposes.

Walter Investment is a Tampa, Fla.-based asset manager, mortgage servicer and mortgage portfolio.

SuperValu timing emerges

In more new deal happenings, SuperValu set a bank meeting for Jan. 23 to kick off syndication on its previously announced $2.4 billion credit facility that consists of a $900 million asset-based revolver and a $1.5 billion term loan, according to a market source.

Wells Fargo Securities LLC, U.S. Bank, Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc., Barclays and Bank of America Merrill Lynch are the lead arrangers on the revolver, and Goldman Sachs, Credit Suisse, Morgan Stanley, Bank of America and Barclays are the lead arrangers on the term loan.

Proceeds will be used by the Eden Prairie, Minn.-based food wholesaler to replace a $1.65 billion asset-based revolver, an $846 million term loan and $490 million of 7½% bonds due November 2014.

The deal is being done with the sale of SuperValu's Albertsons, Acme, Jewel-Osco, Shaw's and Star Market stores to Albertson's LLC, a portfolio company of Cerberus Capital Management LP, for $100 million in cash and the assumption of about $3.2 billion in debt and the tender by a Cerberus-led investor consortium for up to 30% of SuperValu's outstanding common stock at $4 per share in cash.

Closing is expected to occur this quarter, subject to the refinancing of the SuperValu debt.

Ocwen readies launch

Ocwen will host a bank meeting at 10 a.m. ET on Thursday to launch a $1.3 billion five-year senior secured term loan that is being led by Barclays, Citigroup Global Markets Inc. and J.P. Morgan Securities LLC, according to a market source.

Proceeds will be used to fund the acquisition of some mortgage servicing assets from Residential Capital LLC and to refinance existing term loan debt.

Closing is expected this quarter, subject to customary conditions, including the approval of Freddie Mac, Fannie Mae and various government agencies.

Last year, Ocwen revealed that it had a commitment from Barclays for up to $1.5 billion in financing for the Residential Capital transaction and the acquisition of Homeward Residential Holdings Inc., which has already been completed.

The Homeward purchase was funded with a $100 million incremental term loan due Sept. 1, 2016 that is priced at Libor plus 550 bps with a 1.5% Libor floor.

Ocwen is an Atlanta-based provider of residential and commercial loan servicing, special servicing and asset management services.

Michaels Stores plans refi

Michaels Stores scheduled a call for Thursday to launch a $1.64 billion seven-year covenant-light term loan that will be used to repay existing debt, according to a market source.

Commitments will be due on Jan. 24, the source added.

Deutsche Bank Securities Inc., Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Barclays, Morgan Stanley Senior Funding Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC and Wells Fargo Securities LLC are leading the transaction.

Michaels Stores is an Irving, Texas-based retailer of arts, crafts, framing, floral, wall decor and seasonal merchandise for the hobbyist and do-it-yourself home decorator.

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