MultiPlan, Dunkin', inVentiv, TransDigm dip on repricings; Del Monte breaks; Reynolds flexes

By Sara Rosenberg

New York, Feb. 3 - MultiPlan Inc., Dunkin' Brands Inc. and inVentiv Health Inc. all saw their term loans move down to call protection paydown levels on Thursday as the companies disclosed plans to refinance/reprice the debt, and inVentiv also upsized and reverse flexed its new incremental term loan.

Another company to launch a refinancing deal was TransDigm Inc., and its term loan headed closer to par on the news since there is no call protection.

Meanwhile, Del Monte Foods Co.'s credit facility allocated and freed up for trading in the afternoon, with levels on the term loan quoted above its original issue discount price.

In more loan happening, Reynolds Group Holdings Ltd. reduced pricing and the Libor floor on its U.S. term loan E, and Walter Energy Inc. came out with guidance on its B loan as it launched to investors.

Also, Playboy Enterprises Inc. began circulating price talk on its term loan ahead of its bank meeting, as did Pinnacle Security, which delayed its launch to next week due to weather conditions causing travel complications.

Furthermore, General Nutrition Centers Inc. announced that it will be coming to market shortly with a refinancing credit facility.

MultiPlan softens

MultiPlan's term loan headed to 101 bid, 101½ offered in trading on the back of news that the debt will be refinanced/repriced, triggering the 101 soft call protection to take effect, according to a source.

Pricing on this existing term loan is Libor plus 475 basis points with a 1.75% Libor floor, and it was sold at an original issue discount of 98 when it was obtained in August 2010 to fund the company's buyout by BC Partners and Silver Lake.

The new $1.265 billion term loan, which was launched with a call on Thursday afternoon, is talked at Libor plus 325 bps to 350 bps with a 1.5% Libor floor and is being offered at par.

The initial size of the term loan was $1.3 billion, but some of the debt has been paid down since it closed, the source added.

Barclays, Bank of America and Credit Suisse are leading the refinancing for the New York-based provider of health care cost management services.

Dunkin' heads to 101

Dunkin' Brands' term B also dropped to 101 bid, 101½ offered as it too announced a refinancing/repricing that would result in the repayment of this debt at the 101 soft call protection level, according to a market source. Prior to the news, the loan was quoted at 101¼ bid, 101¾ offered.

Pricing on the existing roughly $1.25 billion B loan is Libor plus 425 bps with a 1.5% Libor floor, and it was sold at a discount of 99½ when it closed last year to repay securitization debt and pay a dividend.

Price talk on the new $1.25 billion term loan B is not yet available, but it will be lower than the existing pricing.

Barclays, JPMorgan, Bank of America and Goldman Sachs are the lead banks on the refinancing, which will launch with a call at 11 a.m. ET on Friday.

Canton, Mass.-based Dunkin' Brands is the parent company of Dunkin' Donuts, a coffee and baked goods restaurant chain, and Baskin-Robbins, an ice cream specialty store chain.

inVentiv retreats

inVentiv's existing term loan suffered the same fate as MultiPlan and Dunkin', falling to 101 bid, 101½ offered as the debt is being repriced/refinanced and will be taken out at 101 as a result of soft call protection, according to a trader. Previously, the loan was quoted at 101½ bid, 102 offered.

Through the refinancing, pricing on the $525 million term loan B (Ba3) is moving to Libor plus 350 bps with a 1.5% Libor floor from Libor plus 475 bps with a 1.75% Libor floor. This debt was sold at an original issue discount of 98½ when it was obtained in August 2010 for the company's buyout by Thomas H. Lee Partners LP.

The decision to go out with a refinancing transaction came on the back of the company's in-market incremental term loan receiving such strong demand.

InVentiv flexes incremental

On Thursday, inVentiv also upsized its incremental term loan (Ba3/BB-) to $315 million from $300 million, cut pricing to Libor plus 350 bps from Libor plus 400 bps and is now selling the paper at par as opposed to at 991/2, a source told Prospect News. The 1.5% Libor floor was left unchanged.

Commitments towards the incremental and the refinancing term loans are due Friday at 5 p.m. ET.

Citigroup, Bank of America, Credit Suisse, Deutsche Bank and Wells Fargo are the lead banks on the deal.

Proceeds from the incremental term loan will be used to help fund the acquisition of Campbell Alliance, a management consulting firm specializing in serving the pharmaceutical and biotech industries, and the roughly $400 million acquisition of i3 clinical development businesses from Ingenix.

inVentiv is a Somerset, N.J.-based provider of outsourced clinical development, launch and commercialization services to the health care industry.

TransDigm slides

Back to the secondary market, TransDigm's $1.55 billion term loan due Dec. 6, 2016 dipped to par ¼ bid, par ¾ offered, according to one trader, and to par bid, 101 offered, according to a second trader, from 101 bid, 101½ offered after the company revealed plans for a new loan, according to a trader.

The existing loan, which priced at Libor plus 350 bps with a 1.5% Libor floor and was sold at a discount of 99½ when it was obtained in December to fund the acquisition of McKechnie Aerospace Holdings Inc., is being replaced with a new $1.55 billion term loan due February 2017.

Price talk on the new covenant-light term loan is Libor plus 300 bps with a 1% Libor floor and a par offer price. There is 101 soft call protection for one year.

The deal launched with a call on Thursday via Credit Suisse, and commitments are due on Feb. 8.

TransDigm is a Cleveland-based designer, producer and supplier of engineered aircraft components.

Del Monte frees up

Del Monte Foods' credit facility broke for trading on Thursday, with the $2.7 billion seven-year covenant-light term loan (Ba3/B+/BB) quoted at par 7/8 bid, 101 1/8 offered on the open and then it moved up to 101 bid, 101¼ offered, according to a trader.

Pricing on the term loan is Libor plus 300 bps with a 1.5% Libor floor, and it was sold at an original issue discount of 993/4. There is 101 soft call protection for one year.

During syndication, the term loan was upsized from $2.5 billion, pricing was reduced from Libor plus 400 bps and the discount tightened from 99.

The company's $3.45 billion credit facility also includes a $750 million five-year ABL revolver (NA/NA/BB).

Del Monte being acquired

Proceeds from Del Monte's credit facility, $1.3 billion of notes that was downsized from $1.5 billion when the term loan B was upsized and $1.6 billion of equity will be used to fund the buyout of the company by Kohlberg Kravis Roberts & Co. LP, Vestar Capital Partners and Centerview Partners.

The investor group is buying the company for $19.00 per share in cash. The transaction is valued at $5.3 billion, including the assumption of $1.3 billion of net debt.

Completion of the transaction is anticipated by the end of March, subject to customary closing conditions, including receipt of shareholder and regulatory approvals.

JPMorgan, Barclays, Morgan Stanley, Bank of America and KKR Capital Markets are the lead banks on the credit facility.

Del Monte is a San Francisco-based branded pet and consumer products company.

Reynolds trims pricing

Meanwhile, in other happenings, Reynolds Group reduced pricing on its $2.325 billion seven-year term loan E (Ba3) to Libor plus 325 bps from Libor plus 350 bps and trimmed the Libor floor to 1% from 1.5%, while leaving the par offer price unchanged, according to sources.

The company is also in market with a €250 million seven-year term loan B that is talked at Euribor plus 375 bps with a 1.5% floor and is being offered at par. No changes have been made to this tranche yet, sources said.

Credit Suisse is the lead bank on the deal that will be used to refinance the company's existing senior secured credit facility.

Reynolds Group is an Auckland, New Zealand-based manufacturer and supplier of consumer food and beverage packaging and storage products.

Walter releases guidance

Walter Energy held a retail call on Thursday to kick off syndication on its $1.75 billion seven-year term loan B, at which time lenders were told that the debt is being talked at Libor plus 300 bps to 325 bps with a 1% Libor floor and an original issue discount of 991/2, according to a market source.

The company already held a senior managing agent meeting on Jan. 20, at which time it launched its $375 million five-year revolver and $600 million five-year term loan A with talk of Libor plus 300 bps. The revolver has a 50 bps unused fee.

Morgan Stanley, Credit Agricole and the Bank of Nova Scotia are the lead arrangers on the $2.725 billion senior secured deal (B1) that will be used to help fund the acquisition of Western Coal Corp. for C$11.50 per share and to refinance existing debt as well as for working capital.

Walter Energy is a Tampa, Fla.-based producer and exporter of metallurgical coal for the steel industry. Western Coal is a Vancouver, B.C.-based producer of metallurgical coal.

Datatel launches

Also launching Thursday was Datatel Inc.'s $430 million credit facility that consists of a $40 million five-year revolver, a $255 million six-year term loan B and a $135 million seven-year second-lien term loan.

As expected, price talk on the term loan B is Libor plus 375 bps to 400 bps with a 1.5% Libor floor and an original issue discount of 99 to 991/2, and price talk on the second-lien term loan is Libor plus 750 bps to 775 bps with a 1.5% floor and a discount of 99, and offers call protection of 103 in year one, 102 in year two and 101 in year three.

Credit Suisse and BMO are the lead banks on the deal that will be used to refinance existing debt and fund a dividend.

Datatel is a Fairfax, Va.-based provider of technology services and professional business services to higher education institutions.

Playboy floats talk

Meanwhile, in more price talk news, Playboy started telling lenders guidance on its $160 million six-year term loan as the deal is gearing up for a Friday morning bank meeting, according to a market source.

The term loan is being talked at Libor plus 650 bps to 700 bps with a 1.75% Libor floor and an original issue discount of 98, the source said, adding that the tranche non-callable for one year, then at 102 in year two and 101 in year three.

Jefferies is the lead bank on the $180 million credit facility that also includes a $20 million five-year revolver and will likely seek commitments by late in the week of Feb. 7.

Price talk came out slightly different from what was outlined in the commitment letter filed with the Securities and Exchange Commission. The filing had the term loan at Libor plus 650 bps with a 1.75% Libor floor and 101 soft call protection for one year. Revolver pricing had been outlined as ranging from Libor plus 600 bps to 650 bps based on a leverage grid, with a 1.75% floor and a 75 bps unused fee.

Playboy funding buyout

Proceeds from Playboy's credit facility will be used to help fund its acquisition by Icon Acquisition Holdings LP, a limited partnership controlled by Hugh M. Hefner, for $6.15 per share.

Other funds for the transaction will come from equity committed by Rizvi Traverse Management LLC.

Closing is expected to take place before or shortly after the end of the first quarter, subject to more than 50% of the shares being tendered. It is not subject to financing.

The tender offer for the shares expires on Feb. 22.

Playboy is a Chicago-based media and lifestyle company.

Pinnacle guidance emerges

Pinnacle Security is floating price talk of Libor plus 650 bps with a 1.5% Libor floor and an original issue discount that is still to be determined on its $130 million term loan, according to a market source.

The term loan, along with a $145 million revolver, was expected to launch on Thursday, but the bank meeting was pushed off to next Tuesday since some banks were unable to travel to the event because of weather conditions, the source said.

Bank of America is the lead bank on the $275 million three-year credit facility that will be used to refinance existing debt.

Pinnacle Security is an Orem, Utah-based provider of residential and commercial security systems.

GNC readies deal

Also launching with a bank meeting on Tuesday is General Nutrition Centers' proposed $1.18 billion credit facility that is being led by JPMorgan and Goldman Sachs, according to sources.

The facility consists of an $80 million five-year revolver and a $1.1 billion seven-year term loan B, sources said.

Proceeds will be used to refinance existing debt.

General Nutrition Centers is a Pittsburgh-based specialty retailer of nutritional products including vitamin, mineral, herbal and other specialty supplements and sports nutrition, diet and energy products.

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