Walter Investment, Barbri, Monitronics break; Oxbow, Guggenheim, ClubCorp revise deals

By Sara Rosenberg

New York, July 17 - Walter Investment Management Corp.'s add-on first-lien term loan freed up for trading on Wednesday above its issue price, and Barbri and Monitronics International Inc. emerged in the secondary as well.

Over in the primary, Oxbow Carbon LLC lowered coupons on its first- and second-lien term loans, while also adding a leverage-based step-down in spread and tightening the original issue discount on its first-lien tranche.

Also, Guggenheim Partners Investment Management Holdings LLC revised pricing and the discount on its B loan, and ClubCorp Club Operations Inc. reduced the spread and offer price on its term B.

In addition, Harbor Freight Tools USA Inc., Alinta Energy Finance Pty Ltd., Great Wolf Resorts Inc. and Tower Automotive Holdings USA LLC came out with price talk as their deals were presented to investors during the session, and RE/MAX LLC joined the calendar.

Walter frees up

Walter Investment's $250 million add-on first-lien term loan due Nov. 28, 2017 hit the secondary market on Wednesday, with levels quoted at par ¼ bid, par ¾ offered, according to a market source.

Pricing on the add-on is Libor plus 450 basis points with a 1.25% Libor floor, in line with existing term loan pricing, and the debt was issued at par. There is 101 repricing protection until Nov. 28, 2013.

During syndication, the add-on was upsized from $200 million and the offer price tightened from 99.

Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc., Barclays and Bank of America Merrill Lynch are leading the deal is being used for general corporate purposes.

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

Barbri starts trading

Barbri's credit facility also broke, with the $256 million term loan B seen at par bid, par ½ offered, a market source said.

Pricing on the B loan, as well as on a $30 million revolver, is Libor plus 425 bps, after firming at the wide end of the Libor plus 400 bps to 425 bps talk. There is a 1% Libor floor and the debt was issued at 991/2, revised from initial talk of 99½ on new money and 99¾ on rollover. The B loan has 101 soft call protection for six months.

GE Capital Markets is the lead bank on the $286 million deal.

Proceeds will be used to refinance existing bank and mezzanine debt.

Barbri is a Dallas-based provider of bar review courses and law student support.

Monitronics tops par

Monitronics' $225 million term loan began trading too, with levels quoted at par ¼ bid, 101 offered, according to a trader.

Pricing on the loan is Libor plus 325 bps with a 1% Libor floor, in line with existing term loan pricing, and it was sold at a discount of 99½ after tightening from initial talk that was in the 99 area.

Bank of America Merrill Lynch, Citigroup Global Markets Inc. and Credit Suisse Securities (USA) LLC are the lead banks on the deal that will help fund the acquisition of Security Networks LLC for $487.5 million of cash and 253,333 newly issued shares of series A common stock by parent company, Ascent Capital Group Inc.

Other funds for the transaction will come from $175 million in 9 1/8% senior notes due 2020, $90 million of convertible senior notes due 2020 issued by Ascent Capital and cash on hand.

Closing is expected in mid-August, subject to customary conditions, including regulatory approvals.

Monitronics is a Dallas-based home security alarm monitoring company. Security Networks is a West Palm Beach, Fla.-based provider of monitored security system services.

Oxbow reworks pricing

Moving to the primary, Oxbow Carbon trimmed pricing on its $350 million six-year covenant-light term loan B (Ba3/BB+) to Libor plus 325 bps from talk of Libor plus 350 bps to 375 bps, added a step-down to Libor plus 300 bps when first-lien leverage is 2 times and moved the original issue discount to 99½ from 99, sources said. The 1% Libor floor and 101 soft call protection for one year were unchanged.

Meanwhile, pricing on the $350 million 61/2-year second-lien term loan (B2/BB-) was cut to Libor plus 700 bps from talk of Libor plus 725 bps to 750 bps, while the 1% Libor floor, discount of 99 and call protection of 103 in year one, 102 in year two and 101 in year three were left intact, sources continued.

The company's $1.8 billion credit facility also includes an $800 million five-year revolver (Ba3/BB+) and a $300 million five-year term loan A (Ba3/BB+), both priced at Libor plus 250 bps.

Prior to the pricing changes, the first-lien term loan B was downsized from $500 million, the revolver was upsized from $600 million and the term loan A was increased from $250 million.

Bank of America Merrill Lynch and J.P. Morgan Securities LLC are leading the deal that will be used by the West Palm Beach, Fla.-based recycler of refinery and natural gas byproducts to refinance existing debt.

Guggenheim changes surface

Guggenheim Partners lowered pricing on its $700 million seven-year covenant-light term loan B to Libor plus 325 bps from Libor plus 350 bps, added a step-down to Libor plus 300 bps when total leverage is 2½ times and revised the original issue discount to 99¾ from 99, according to sources.

As before, the loan has a 1% Libor floor and 101 soft call protection for one year.

Bank of America Merrill Lynch, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, RBC Capital Markets and Fifth Third Securities Inc. are leading the deal that will be used to refinance existing debt, to fund a distribution to parent company Guggenheim Partners LLC and for general corporate purposes.

Guggenheim Partners is a financial services firm with headquarters in New York and Chicago.

ClubCorp tweaks deal

ClubCorp reverse flexed pricing on its $300 million seven-year term loan B to Libor plus 325 bps from Libor plus 350 bps and tightened the offer price to par from talk of 99½ to 993/4, according to a market source.

Unchanged on the loan was the 25 bps pricing step-down after an initial public offering, 1% Libor floor and 101 soft call protection for six months.

Of the total term loan B amount, about $290 million is existing debt and about $10 million is new debt.

The company's $350 million credit facility also includes a $50 million revolver.

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

Citigroup Global Markets Inc. is leading the deal that will be used to refinance existing bank debt.

ClubCorp is a Dallas-based owner and operator of golf courses, country clubs, private business and sports clubs, and resorts.

Harbor Freight sets talk

In more primary happenings, Harbor Freight Tools held a conference call at 1:30 p.m. ET on Wednesday to launch its $1 billion six-year senior secured covenant-light term loan (B1/B+), and a few hours ahead of that call, price talk on the loan emerged at Libor plus 400 bps with a 1% Libor floor and an original issue discount of 99, according to a market source.

As previously reported, the term loan has 101 repricing protection for one year and a commitment deadline of July 24.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to refinance existing debt and fund a dividend to shareholders.

Harbor Freight is a Camarillo, Calif.-based provider of tools and equipment.

Alinta guidance emerges

Alinta Energy also came out with price talk in the morning in preparation for its 2 p.m. ET bank meeting, a market source said.

The $1.17 billion of seven-year senior secured covenant-light term loans - split between a $1.1 billion funded tranche and a $70 million delayed-draw tranche - are talked at Libor plus 425 bps to 450 bps with a 1% Libor floor, an original issue discount of 98½ and 101 soft call protection for one year, the source remarked.

The company's new credit facility (B1/B+) also includes an A$240 million five-year revolver.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., BNP Paribas Securities Corp., Goldman Sachs Bank USA and Macquarie Capital are leading the deal for which commitments are due on July 31.

Proceeds will be used by the Melbourne, Australia-based power company to refinance existing debt.

Great Wolf holds meeting

Great Wolf Resorts hosted a meeting in the afternoon, launching its $320 million seven-year covenant-light term loan B with talk of Libor plus 425 bps to 450 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

The company's $420 million senior secured credit facility (B3/BB-) also provides for a $100 million five-year revolver.

Commitments are due on July 31, the source said.

Deutsche Bank Securities Inc., Barclays and Goldman Sachs Bank USA are leading the deal that will be used to repay all of the 10 7/8% first mortgage notes due 2017 issued by GWR Operating Partnership LLLP and Great Wolf Finance Corp., to refinance the outstanding debt under the existing senior secured credit facility of Great Wolf Lodge of the Carolinas LLC, and for general corporate purposes.

Great Wolf is a Madison, Wis.-based water park resort operator.

Tower reveals details

Tower Automotive held its call in the afternoon, at which time lenders were presented with a $420 million senior secured term loan B due April 23, 2020 that is talked at Libor plus 375 bps with a 1% Libor floor, a par offer price and 101 soft call protection for six months, according to a market source.

Proceeds will be used to reprice an existing term loan B from Libor plus 450 bps with 1.25% Libor floor.

Lead banks, Citigroup Global Markets and J.P. Morgan Securities LLC, are asking for commitments by 5 p.m. ET on July 24 and closing is targeted for July 29, the source added.

Tower Automotive is a Livonia, Mich.-based supplier of automotive metal structural components and assemblies.

Midcontinent launches

Midcontinent Communications' launched its credit facility in the afternoon, and revealed that the $225 million seven-year term loan B will include 101 soft call protection for six months, according to a market source.

As reported earlier, the term loan B is talked at Libor plus 300 bps with a 1% Libor floor and a par offer price.

In addition to the B loan, the company's $475 million credit facility (Ba3/BB-) provides for a $125 million five-year revolver and a $125 million five-year term loan A.

SunTrust Robinson Humphrey Inc., RBC Capital Markets, Wells Fargo Securities LLC, U.S. Bank and TD Securities (USA) LLC are leading the deal that will refinance an existing credit facility.

Commitments are due on Monday.

Senior leverage is 2.2 times.

Midcontinent Communications is a Sioux Falls, S.D.-based provider of cable television, local and long-distance digital telephone service and high-speed internet access.

RE/MAX coming soon

RE/MAX set a conference call for 2 p.m. ET on Thursday to launch a $230 million seven-year term loan B that is talked at Libor plus 325 bps to 350 bps with a 1% Libor floor, an original issue discount of 99¾ and 101 soft call protection for one year, according to a market source.

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

Proceeds will be used by the Denver-based real estate company to refinance existing bank debt.

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