Spectrum, Booz, Misys, IES break; TIP, ZEST, Generic, Ceridian, Surgical, Huntsman revised

By Sara Rosenberg

New York, Aug. 13 - Spectrum Brands Inc.'s term loans freed up for trading on Tuesday above their original issue discount prices, and Booz Allen Hamilton Holding Corp., Misys plc and International Equipment Solutions LLC (IES) broke as well.

Moving to the primary, TIP Trailer Services reduced the size of its U.S. term loan, increased the size of its euro term loan and, for a second time, widened spreads and original issue discounts on both tranches.

Also, ZEST Anchors Inc. flexed pricing higher on its first-lien term loan, revised the discount and extended the call protection, and Generic Drug Holdings Inc. (Harvard Drug) and Ceridian Corp. tightened the offer price on their loans.

In addition, Surgical Specialties Corp. upsized its term loan, trimmed the spread and modified the original issue discount, Huntsman International LLC revised the discount on its add-on debt, and Sequa Automotive Group moved up the commitment deadline on its incremental loan.

Furthermore, Level 3 Financing Inc. announced and launched a new term loan, and Telx Group came to market with a term B repricing and add-on revolver.

Spectrum frees up

Spectrum Brands' credit facility hit the secondary market on Tuesday, with the $850 million four-year first-lien covenant-light CLO term loan and the $300 million six-year first-lien covenant-light term loan quoted at par bid, par ½ offered, according to a market source.

Pricing on the CLO loan is Libor plus 225 basis points and pricing on the six-year loan is Libor plus 275 bps, with both having a 0.75% Libor floor and 101 soft call protection for six months, and both sold at a discount of 991/2.

During syndication, the CLO loan was upsized from $700 million and pricing was cut from Libor plus 250 bps, and the six-year loan was downsized from $400 million and pricing was trimmed from Libor plus 300 bps.

Also, both term loans saw the floor reduced from 1%, the discount tightened from 99 and the soft call protection shortened from one year.

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

Proceeds from the $1.15 billion of term loans (B1/B+) will be used by the Madison, Wis.-based consumer products company to fund a tender offer for $950 million of 9½% senior secured notes due 2018 and, as a result of the loan upsizing, to put cash on the balance sheet.

Booz Allen starts trading

Booz Allen's $1,017,000,000 term loan B also freed up, with levels quoted at par bid, par ½ offered, according to a market source.

Pricing on the loan is Libor plus 300 bps after flexing up from Libor plus 275 bps. There is a 0.75% Libor floor and 101 soft call protection for six months, and the debt was sold at an original issue discount of 993/4.

Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC and J.P. Morgan Securities LLC are leading the deal that is being used to reprice an existing term loan from Libor plus 350 bps with a 1% Libor floor.

Booz Allen Hamilton is a McLean, Va.-based provider of management and technology consulting services to the U.S. government in the defense, intelligence and civil markets.

Misys hits secondary

Misys' credit facility broke as well, with the roughly $921.5 million first-lien term loan due December 2018 seen at par 5/8 bid, 101 1/8 offered, a trader said.

Pricing on the U.S. term loan, which was downsized recently from $938 million, is Libor plus 400 bps, after firming 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 through June 2014 and the debt was issued at par.

The company is also getting a €140 million first-lien term loan due December 2018 priced at Euribor plus 425 bps with a 1% floor and sold at par. This tranche also has 101 soft call protection through June 2014.

During syndication, the euro term loan was upsized from €99.3 million and pricing firmed at the low end of the Euribor plus 425 bps to 450 bps talk.

Misys revolver

In addition to the term loans, Misys is getting a $16 million revolver A due June 2017 priced at Libor plus 600 bps and an $84 million revolver B due June 2017 priced at Libor plus 400 bps.

Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Jefferies Finance LLC are leading the deal.

Proceeds from the term loans are being used to reprice an existing U.S. term loan from Libor plus 600 bps with a 1.25% floor and an existing euro term loan from Euribor plus 625 bps with a 1.25% floor.

Misys is a London-based provider of application software and services for the financial services industry.

International Equipment breaks

International Equipment Solutions' $270 million six-year term loan B (B2/B+) began trading too, with levels quoted at 98¾ bid, 99¼ offered, according to a trader.

Pricing on the term loan is Libor plus 550 bps with a 1.25% Libor floor and it was sold at a discount of 98½ after widening from 99 during syndication. The debt includes 101 soft call protection for one year.

Bank of America Merrill Lynch, J.P. Morgan Securities LLC and PNC Capital Markets LLC are leading the deal that will be used to refinance existing debt.

International Equipment is an Oak Brook, Ill.-based manufacturer of highly engineered cab enclosures and attachment tools.

TIP restructures

Over in the primary, TIP Trailer reduced its U.S. seven-year first-lien term loan to $100 million from $150 million, raised pricing to Libor plus 550 bps from revised talk of Libor plus 475 bps and initial talk of Libor plus 425 bps, and moved the original issue discount to 95 from revised talk of 97 and initial talk of 99, according to a market source.

Also, the company lifted its euro seven-year first-lien term loan to €203 million from €163 million, increased the spread to Euribor plus 550 bps from revised talk of Euribor plus 500 bps and initial talk of Euribor plus 450 bps, and widened the discount to 95 from revised talk of 97 and initial talk of 99, the source said.

As before, both term loans have a 1% floor and 101 soft call protection for one year.

The company's new credit facility (B1/BB+) also includes a €55 million six-year revolver.

Recommitments were due by the close of business on Tuesday, the source added.

Credit Suisse is leading the deal that will help fund the buyout of TIP, a European provider of transport equipment leasing and rental services, by HNA Group Co. Ltd. from GE Capital.

ZEST reworks terms

ZEST Anchors lifted pricing on its $160 million seven-year first-lien term loan (B2/B) to Libor plus 550 bps from talk of Libor plus 475 bps to 500 bps, changed the discount to 98 from 99 and extended the 101 soft call protection to one year from six months, according to a market source, who said the 1% Libor floor was unchanged.

Also, the excess cash flow sweep was increased to 75% from 50% and the incremental allowance was modified to $25 million from $40 million, plus additional amounts up to 3.75 times net first-lien leverage and 5.75 times net total leverage, the source said.

Recommitments for the company's $260 million deal, which also includes a $20 million revolver (B2/B) and an already placed $80 million second-lien term loan, were due at 5 p.m. ET on Tuesday.

Deutsche Bank Securities Inc., Fifth Third Securities Inc. and RBS Citizens are leading the deal that will be used to help fund the buyout of the company by Avista Capital Partners from Jordan Co.

ZEST is an Escondido, Calif.-based manufacturer and distributor of dental services for the treatment of edentulous patients.

Generic Drug tweaks OID

Generic Drug changed the original issue discount on its $380 million senior secured term loan B (B1/B) to 99½ from 99, while keeping pricing at Libor plus 400 bps with a 1% Libor floor and the 101 soft call protection for six months intact, according to a market source.

However, last week, the coupon on the term loan was lowered from talk of Libor plus 425 bps to 450 bps and the soft call protection was shortened from one year.

Recommitments were due at 3 p.m. ET on Tuesday, the source said.

Morgan Stanley Senior Funding Inc., Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. are leading the deal that will be used to refinance existing debt and pay a dividend to shareholders.

Generic Drug is a Livonia, Mich.-based independent pharmaceutical distributor.

Ceridian updates offer price

Ceridian changed the offer price on its $1,419,000,000 term loan B to par from 99¾ and intends to give out allocations later this week, according to a market source.

Pricing on the loan is Libor plus 425 bps with a step-down and no Libor floor, and there is 101 soft call protection for six months, the source said.

Deutsche Bank Securities Inc. is leading the deal that will be used to reprice an existing term loan from Libor plus 575 bps with no Libor floor.

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

Surgical revisions emerge

Surgical Specialties raised its five-year first-lien term loan to $110 million from $100 million, cut pricing to Libor plus 575 bps from Libor plus 600 bps, changed the original issue discount to 99 from 98, and revised the soft call protection to 102 for six months and 101 for a year thereafter from 102 in year one and 101 in year two, according to a market source.

Furthermore, pricing on the $10 million four-year revolver was reduced to Libor plus 575 bps from Libor plus 600 bps, the source said.

The now $120 million credit facility still includes a 1.5% Libor floor.

Commitments were due at 5 p.m. ET on Tuesday.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to fund a return of capital.

Surgical Specialties is a provider of disposable surgical products.

Huntsman tightens discount

Huntsman International modified the original issue discount on its $100 million add-on to its extended term loan B-1 (Ba1/BB+) due April 19, 2017 to 99¾ from 991/2, while keeping pricing at Libor plus 250 bps with no floor, according to a market source.

Recommitments are due at noon ET on Wednesday, the source said.

Citigroup Global Markets is leading the debt that will be used for general corporate purposes.

Huntsman is a Salt Lake City-based manufacturer of differentiated organic and inorganic chemical products.

Sequa moves deadlines

Sequa Automotive accelerated the commitment deadline on its $30 million incremental term loan B to 5 p.m. ET on Wednesday from Thursday, a market source said.

The incremental loan is talked at Libor plus 500 basis points with a 1.25% Libor floor and an original issue discount of 993/4.

RBC Capital Markets is the lead bank on the deal that will be used to fund the acquisition of Chicago Miniature Lighting, a supplier of interior lighting services to automotive OEMs.

Sequa is a Tampa, Fla.-based diversified industrial company that operates in the aerospace and metal coatings industries.

Level 3 holds call

In more new deal happenings, Level 3 hosted a call at 10:30 a.m. ET on Tuesday to launch a $595.5 million senior secured term loan B (Ba3/BB-/BB) due 2020, and talk on the new loan came out at Libor plus 300 bps with a 1% Libor floor and a par offer price, according to a market source.

Proceeds will be used to refinance an existing $596 million term loan B due in 2016 that is priced at Libor plus 325 bps with a 1.5% Libor floor.

Commitments are due at noon ET on Wednesday, the source remarked. This was moved up shortly after launch from an original deadline of 5 p.m. ET on Wednesday.

Bank of America Merrill Lynch, Citigroup Global Markets Inc., Morgan Stanley Senior Funding Inc., Credit Suisse Securities (USA) LLC, Jefferies Finance LLC and J.P. Morgan Securities LLC are leading the deal.

Telx repricing

Telx launched with a call at 2 p.m. ET a repricing of its $359,173,344 term loan B due Sept. 26, 2017 to Libor plus 400 bps with a 1.25% Libor floor from Libor plus 500 bps with a 1.25% Libor floor, according to sources.

The repriced loan is being offered with an original issue discount of 99¾ and has 101 soft call protection for one year, sources said.

Also, the company launched a $20 million add-on to its revolver.

As part of the transaction, the company is asking to remove the maximum total leverage and minimum fixed charge coverage ratios from the term loan, and add a springing total leverage ratio to the revolver.

Lead banks, Morgan Stanley Senior Funding, Inc., Deutsche Bank Securities Inc. and TD Securities (USA) LLC, are seeking commitments by Friday and expect the deal to close on Oct. 10.

Telx is a New York-based provider of interconnection and co-location facilities.

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