SymphonyIRI breaks; JBS, Securus, Exopack revise deals; Endo, FMG price talk surfaces

By Sara Rosenberg

New York, May 23 - SymphonyIRI Group Inc.'s credit facility hit the secondary on Monday, with the term loan B quoted above its original issue discount, and Penn National Gaming Inc.'s B loan was steady on news of a refinancing, while the overall market was down about a quarter of a point on the day.

Moving to the primary, JBS USA made some changes to its term loan B, increasing the size and reducing pricing, while also sweetening the soft call protection, and Securus Technologies cut the spread and Libor floor on its first-lien term loan and added a soft call provision.

Furthermore, Exopack Holdings Corp. downsized its term loan and raised the spread, and Endo Pharmaceuticals and FMG Resources Pty Ltd. (Fortescue) released price talk on their credit facilities as both deals were presented to lenders during the session.

SymphonyIRI starts trading

SymphonyIRI's credit facility freed up on Monday, with the $400 million 61/2-year covenant-light term loan B quoted at 99¾ bid, par ¼ offered on the open and then it moved to 99 7/8 bid, par 3/8 offered, according to a trader.

Pricing on the term loan B is Libor plus 375 basis points with a step-down to Libor plus 350 bps when total net leverage is less than 3.5 times. There is a 1.25% Libor floor and 101 soft call protection for one year, and it was sold at an original issue discount of 991/2.

During syndication, pricing on the B loan, as well as on a $50 million five-year revolver, firmed at the tight end of the Libor plus 375 bps to 400 bps talk, and the step-down was added to the term B.

The revolver has no Libor floor and a 50 bps upfront fee and includes senior secured leverage and interest coverage covenants.

SymphonyIRI being acquired

Proceeds from SymphonyIRI's $450 million credit facility (B1/B+) will be used to fund the buyout of the company by New Mountain Capital LLC and management.

Other funds for the transaction will come from $420 million of equity.

Bank of America Merrill Lynch, Jefferies & Co. and BMO Capital Markets Corp. are the lead banks on the credit facility.

SymphonyIRI is a Chicago-based provider of sales and marketing data and analytic services for customers in the consumer packaged goods and consumer health industries.

Penn National holds firm

Penn National Gaming's term loan B was quoted at 99¾ bid, par offered, unchanged from Friday, as word surfaced that the company will be approaching the market with a refinancing transaction, according to a source.

Specifically, the company plans on getting a new $2.15 billion credit facility comprised of a $700 million five-year revolver, a $700 million five-year term loan A and a $750 million seven-year term loan B.

A bank meeting for the revolver and term loan A will take place on Wednesday, and the term loan B launch is expected to happen within the next few weeks.

Wells Fargo Securities LLC and Bank of America Merrill Lynch are the lead banks on the Wyomissing, Pa.-based gaming company's deal, with Wells Fargo the left lead on the pro rata and Bank of America the left lead on the B loan.

JBS revises size, spread

Switching to the primary, JBS upsized its seven-year term loan B to $475 million from $400 million, trimmed pricing to Libor plus 300 bps from the Libor plus 325 bps area and extended the 101 soft call protection to one year from six months, according to a market source.

As before, the loan includes a 1.25% Libor floor and is being offered at an original issue discount of 991/2.

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

As part of the refinancing, JBS, a Greeley, Colo.-based animal protein processor, priced on Friday $650 million of 7¼% senior notes at 98.26 to yield 7½%. The notes offer was reduced from $1 billion.

Securus flexes first-lien

Also coming out with changes was Securus, as it reduced pricing on its $233 million first-lien term loan B (B1/B+) to Libor plus 400 bps from Libor plus 425 bps, cut the Libor floor to 1.25% from 1.5% and added 101 soft call protection for six months, according to a market source. The original issue discount of 99 was left unchanged.

Additionally, the $97 million second-lien term loan (Caa1/CCC+) firmed in line with talk at Libor plus 825 bps with a 1.75% Libor floor, a discount of 98 and call protection of 103 in year one, 102 in year two and 101 in year three.

Recommitments towards the $365 million credit facility, which also provides for a $35 million revolver (B1/B+), were due from lenders at 5 p.m. ET on Monday.

BNP Paribas Securities Corp. and GE Capital Markets are leading the deal that will be used to help fund Castle Harlan's buyout of the Dallas-based provider of telecommunications products and services for the corrections marketplace from H.I.G. Capital.

Exopack reworks loan

Exopack Holdings reduced its six-year covenant-light term loan to $350 million from $400 million and raised pricing to Libor plus 500 bps from Libor plus 450 bps, while leaving the 1.5% Libor floor, original issue discount of 99½ and 101 soft call protection for one year intact, according to a market source.

The company's now $425 million credit facility, down from $475 million, also includes a $75 million five-year ABL revolver.

Commitments towards the credit facility are due at 5 p.m. ET on Tuesday, pushed out from the original Monday deadline.

Bank of America Merrill Lynch and Goldman Sachs & Co. are the lead banks on the deal.

Exopack ups notes

Along with the changes to the term loan, Exopack increased it seven-year senior notes offering to $235 million from $225 million, the source continued.

Proceeds from the new debt will be used to repay all outstanding borrowings under the company's existing revolver, purchase any and all of its outstanding 11¼% senior notes due 2014 and pay a dividend to stockholders.

Since the company is raising $40 million less than planned, it reduced its dividend payment, the source added.

Prior to the changes, the term loan was rated B1/B and the notes were rated Caa1/CCC+.

Exopack is a Spartanburg, S.C.-based full-service paper and plastic flexible packaging products manufacturer.

Endo releases talk

In more primary happening, Endo Pharmaceuticals held a late afternoon bank meeting for its $900 million seven-year term loan B, at which time lenders were told that the tranche is being talked at Libor plus 325 bps with a 1% Libor floor and a par offer price, according to a market source.

The B loan includes a step-down to Libor plus 300 bps at 3.0 times net leverage and has 101 soft call protection for six months, the source remarked.

The official talk came out fairly close to what was outlined previously in filings with the Securities and Exchange Commission. The only difference was that the filings had the pricing step-down occurring at 3.75 times leverage.

Endo getting pro rata

Endo's $2.9 billion senior secured credit facility also provides for a $500 million five-year revolver and a $1.5 billion five-year term loan A that were launched with a bank meeting on May 5.

Pricing on the revolver and term loan A can range from Libor plus 175 bps to 250 bps based on leverage. Opening pricing is Libor plus 250 bps, with the revolver having a 50 bps unused fee. This pricing also came out in line with what was outlined in the company's filings.

Morgan Stanley & Co. Inc. and Bank of America Merrill Lynch are the lead banks on the deal that will be used to help fund the acquisition of American Medical Systems for $30 per share, or $2.9 billion in cash, which includes the assumption and repayment of $312 million of debt.

Endo plans notes

Other funds for Endo's purchase of American Medical are expected to come from $700 million of senior notes that are backed by a commitment for a $700 million one-year bridge loan.

Pricing on the bridge loan is Libor plus 625 bps with a 1% Libor floor. The spread increases by 50 bps at the end of each three-month period.

Closing on the transaction is expected late in the third quarter, subject to customary conditions, regulatory approval and American Medical stockholder approval.

Endo is a Chadds Ford, Pa.-based specialty health care company focused on branded products and specialty generics. American Medical is a Minnetonka, Minn.-based provider of devices and therapies for male and female pelvic health.

FMG guidance emerges

FMG Resources released talk on its $1 billion six-year senior unsecured term loan shortly before a noon ET bank meeting kicked off to launch the deal into syndication, according to a market source.

The loan is talked at Libor plus 375 bps to 400 bps with a 1% Libor floor and an original issue discount of 99 and is non-callable for two years, then at 102 in year three and 101 in year four, the source said.

The Australian-based iron ore mining company's $1.5 billion senior unsecured deal (B1/B+/BB+) also includes a $500 million three-year revolver, which is being negotiated with a syndicate of banks.

J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and RBS Securities Inc. are the joint bookrunners on the deal that is expected to close by early June and will be used to help fund the $8.4 billion expansion to 155 mtpa and for liquidity and general corporate purposes.

Bass Pro plans recap

In other news, Bass Pro Shops is set to launch an $825 million term loan B on Wednesday that will be used to refinance an existing term loan, redeem preferred stock and common units and fund a dividend, according to a market source.

Pricing on the existing term loan that was obtained early last year is Libor plus 350 bps with a 1.5% Libor floor, and it was sold at an original issue discount of 99.

Bank of America Merrill Lynch and J.P. Morgan Securities LLC are the lead banks on the Springfield, Mo.-based outdoor retailer's new deal.

IMG readies deal

IMG Worldwide Inc. is scheduled to hold a call on Tuesday to launch a proposed $350 million credit facility that will be used to refinance existing debt, according to a market source.

The facility consists of a $50 million 41/2-year revolver and a $300 million five-year term loan B, the source said, adding that price talk is not yet available.

J.P. Morgan Securities LLC is the lead bank on the deal.

IMG is a New York-based provider of sports and event marketing and management services.

Surgical Care sets call

Surgical Care Affiliates is also launching a transaction this week with a lender call planned for Wednesday, according to a market source.

J.P. Morgan Securities LLC is the lead bank on the deal.

Details have not yet come out, but the source said that since it is on J.P. Morgan's new issue calendar, he assumes it's a refinancing or possibly even a dividend recapitalization.

Surgical Care Affiliates is a Birmingham, Ala.-based operator of ambulatory surgical centers and surgical hospitals.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.