Regal, Van Heusen, Cedar Fair, DineEquity break; Focus Brands, NBTY, Nexeo revise deals

By Sara Rosenberg

New York, Feb. 23 - Regal Cinemas Corp.'s term loan hit the secondary market on Wednesday, with levels quoted above par, and Phillips-Van Heusen Corp., Cedar Fair LP and DineEquity Inc. freed up as well.

Over in the primary, Focus Brands Inc. reduced pricing and Libor floor on its term loan, NBTY Inc. tightened the Libor floor on its deal while extending the term loan's call protection, and Nexeo Solutions LLC upsized its term loan.

Also, Global Tel*Link Corp., Pelican Products Inc. and Atlantic Broadband Finance LLC started circulating price talk on their upcoming deals, Jo-Ann Stores Inc. nailed down timing on the launch of its credit facility and disclosed talk, and iStar Financial Inc. and CDW LLC emerged with plans to bring new deals to market.

Furthermore, Waste Industries USA Inc. revealed structure and price talk, Hyland Software and TravelClick Inc. released guidance, and Sheridan Group Inc. came out with original issue discount as all of these deals were presented to lenders during the session.

Regal frees up

Regal Cinemas' $1.006 billion term loan B (Ba2/BB-) started trading on Wednesday, with levels seen at par 3/8 bid, par ¾ offered on the open and then it moved to par ½ bid, par ¾ offered, according to a trader.

Pricing on the term loan due August 2017 is Libor plus 325basis points with a step-down to Libor plus 300 bps when leverage is less than 3.0 times. There's no Libor floor, but the loan does include 101 soft call protection for one year.

Credit Suisse is the lead bank on the deal that is being used to refinance an existing term loan that was set to mature on Nov. 19, 2016 and has pricing that ranges from Libor plus 350 bps to 375 bps based on leverage. Initial pricing on the loan when it was completed in May 2010 was Libor plus 350 bps.

Regal Cinemas is a subsidiary of Regal Entertainment Group, a Knoxville, Tenn.-based motion picture exhibitor.

Van Heusen breaks

Phillips-Van Heusen's credit facility also made its way into the secondary market, with the $400 million U.S. term loan B quoted at par 3/8 bid, par 7/8 on the break and then it moved to par 3/8 bid, par ¾ offered, according to a trader.

Pricing on the New York-based apparel company's term loan B is Libor plus 275 bps with a 0.75% Libor floor, and it was sold to investors at par.

The company's credit facility also includes a €260 million term loan B priced at Euribor plus 300 bps with a 0.75% Libor floor and a par offer price, a $640 million U.S. term loan A priced at Libor plus 250 bps, an €87 million term loan A priced at Euribor plus 275 bps, a $275 million revolver priced at Libor plus 250 bps and a €132 million revolver priced at Euribor plus 275 bps. The term loan A and revolver tranches have no Libor floor and were sold with upfront fees that were determined by commitment size.

Van Heusen led by five

Barclays, Deutsche Bank, Bank of America, Credit Suisse and RBC are the lead banks on Phillips-Van Heusen's credit facility (Ba2).

During syndication, the U.S. term loan A was upsized from $600 million, the U.S. term loan B was downsized from $440 million, pricing on the U.S. B loan was cut from Libor plus 300 bps, pricing on the euro B loan was lowered from Euribor plus 325 bps and the Libor floor on both B loans was reduced from talk of 1% to 1.25%.

Proceeds are being used to replace the company's existing credit facility that was completed in May 2010 and consisted of a roughly $450 million five-year revolver, a $500 million five-year term loan A, a $1 billion six-year term loan B and a €300 million six-year term loan B, although it has since seen some paydowns.

Pricing on the existing revolver and term loan A is Libor plus 300 bps on the U.S. pieces and Euribor plus 325 bps on the foreign pieces, and pricing on the existing term loan B is Libor plus 300 bps on the U.S. piece and Euribor plus 325 bps on the euro piece. The term loan A and the term loan B have a 1.75% Libor floor. The original issue discount on the term loan B was 991/2.

Cedar Fair tops par

Cedar Fair's $1.175 billion term loan (Ba2/BB-) was another to break for trading, with levels quoted at par 3/8 bid, par 5/8 offered by one trader and at par ½ bid, par ¾ offered by a second trader.

Pricing on the term loan is Libor plus 300 bps, after firming at the low end of the Libor plus 300 bps to 325 bps talk, with a 1% Libor floor, which was reduced from 1.25%, and it was sold at par. There is 101 soft call protection until August.

J.P. Morgan Securities LLC is the lead bank on the deal that is being used to reprice/refinance an existing term loan that was obtained in the summer of 2010 as part of a refinancing at pricing of Libor plus 400 bps with a 1.5% Libor floor. The loan had been sold at an original issue discount of 99.

Cedar Fair is a Sandusky, Ohio-based regional amusement-resort operator.

DineEquity starts trading

DineEquity's roughly $742 million term loan B broke for trading as well, with levels quoted at par ¼ bid, par ¾ offered on the open and then it moved to par ½ bid, 101 offered, according to a market source.

Pricing on the B loan is Libor plus 300 bps with a 1.25% Libor floor, and it was sold at par. There is 101 soft call protection for one year.

Barclays and Goldman Sachs are the lead banks on the deal that will be used to reprice/refinance the company's existing B loan obtained in 2010 to refinance existing debt. The tranche is priced at Libor plus 450 bps with a 1.5% floor, was sold at a discount of 99 and includes 101 soft call protection for one year. It was sized at $900 million, but has been paid down through free cash flow and asset sales proceeds.

In addition, the Glendale, Calif.-based owner of Applebee's Neighborhood Grill & Bar and IHOP Restaurants is upsizing its revolver to $75 million from $50 million. Pricing on the revolver is remaining at Libor plus 450 bps with a 1.5% Libor floor.

Huntsman holds steady

Huntsman International LLC's term loan debt was pretty much flat with chatter that the company is holding a lender call at noon ET on Thursday, according to a trader.

There are no details available yet on what will be discussed on the call.

Following the news, the company's term loan B was quoted at 99 3/8 bid, 99¾ offered and its term loan C was quoted at 99¾ bid, par ¼ offered, both unchanged on the day, the trader added.

Huntsman is a Salt Lake City-based manufacturer and marketer of differentiated chemicals.

Focus Brands flexes

Switching to the primary, Focus Brands tightened pricing on its $251.3 million term loan to Libor plus 400 bps from talk of Libor plus 425 bps to 450 bps and trimmed the Libor floor to 1.25% from 1.5%, according to a market source. As before, the loan is being offered at par and includes 101 soft call protection for one year against repricings.

Recommitments were due from lenders at 5 p.m. ET on Wednesday.

Credit Suisse is the lead bank on the deal that is being used to reprice an existing term loan obtained late last year to help fund the acquisition of Auntie Anne's and refinance existing debt.

The existing loan, originally sized at $275 million, is priced at Libor plus 550 bps with a step to Libor plus 525 bps at 3.5 times total leverage and a 1.75% Libor floor. It was sold at a discount of 99

Focus Brands is an Atlanta-based franchisor and operator of ice cream stores, bakeries, restaurants and cafes.

NBTY rework deal

NBTY cut the Libor floor on its $1.9 billion credit facility (BB-) to 1% from 1.5% and extended the 101 soft call protection on the term loan to 12 months from six months, according to a market source.

The facility, comprised of a $150 million revolver due Oct. 1, 2015 and a $1.75 billion covenant-light term loan due Oct. 1, 2017, is still priced at Libor plus 325 bps.

The revolver continues to be offered with a 50 bps upfront fee for commitments of $20 million or more and a 37.5 bps upfront fee for commitments of less than $20 million, and the term loan continues to be offered at par.

Recommitments were due from lenders at 5 p.m. ET on Wednesday.

Barclays, Bank of America Merrill Lynch and Credit Suisse are the lead banks on the deal.

NBTY refinancing debt

Proceeds from NBTY's credit facility will be used to replace an existing $250 million revolver, a $250 million term loan A and a $1.5 billion term loan B that were obtained in October to help fund the company's buyout by the Carlyle Group.

Pricing on the existing revolver and term loan A is Libor plus 425 bps with a 1.75% Libor floor, and pricing on the existing B loan, which is not covenant-light, is Libor plus 450 bps with a 1.75% Libor floor, and it was sold at an original issue discount of 99. The B loan includes a step-down to Libor plus 425 bps upon a leverage test being met.

NBTY is a Ronkonkoma, N.Y.-based manufacturer and marketer of nutritional supplements.

Nexeo ups loan

Nexeo Solutions lifted it 61/2-year covenant-light term loan B (B1/B) to $325 million from $300 million after its bond offering was downsized to $175 million from $200 million, according to a market source.

Price talk on the term loan is still in the Libor plus 375 bps area with a 1.5% Libor floor and an original issue discount of 991/2.

The company's now $865 million credit facility, up from $840 million, also includes a $540 million ABL revolver that is being talked at Libor plus 250 bps.

Bank of America Merrill Lynch, Citigroup and Barclays are leading the deal that will be used to help fund TPG Capital's acquisition of Ashland Inc.'s chemical distribution business for $930 million.

The transaction is expected to close prior to the end of the March quarter, subject to the receipt of certain regulatory approvals and other standard closing conditions.

Global Tel floats talk

On the topic of upcoming deals, Global Tel*Link began distributing price talk on its $485 million facility that includes an incremental term loan as well as a repricing transaction, as the deal is set to launch with a conference call at 10 a.m. ET on Thursday, according to a market source.

The $50 million incremental first-lien term loan is being talked at Libor plus 400 bps with a 1% Libor floor and an original issue discount of 991/2, and the $395 million first-lien term loan and $40 million deposit letter of credit facility are being talked at Libor plus 400 bps with a 1% floor and a par offer price, the source said. The term loans include 101 soft call protection for one year against repricings.

Credit Suisse is the lead bank on the deal and is asking for commitments by March 3.

Global Tel use of proceeds

Global Tel*Link will use the funds from its incremental loan for acquisitions, while the other tranches will be used to reprice the company's existing $395 million term loan and $40 million letter-of-credit facility that were obtained late last year to refinance debt and to fund a dividend payment.

Pricing on the existing first-lien institutional debt is Libor plus 550 bps with a 1.75% Libor floor, and it was sold at an original issue discount of 98. The deal is being repaid at a price of 101.

When the company closed on its facility last year, it also got a $105 million second-lien term loan priced at Libor plus 1,125 bps with a 1.75% floor that was sold at a discount of 98. The loan is non-callable for one year, then at 103 in year two, 102 in year three and 101 in year four. No changes are currently being made to this tranche.

Global Tel*Link is a Mobile, Ala.-based correctional communications technology company.

Pelican guidance

Pelican Products is also holding a lender call on Thursday, at which time it will launch a $405 million six-year term loan B that is talked at Libor plus 350 bps with a 1.5% Libor floor and a par offer price, according to a market source. There is 101 soft call protection for one year.

Credit Suisse is the lead bank on the deal that will be used to refinance an existing $405 million term loan obtained late last year to refinance debt.

Pricing on the existing loan is Libor plus 425 bps with a 1.5% Libor floor, and it was sold at an original issue discount of 99.

Pelican Products, a Torrance, Calif.-based designer and manufacturer of advanced lighting, is seeking commitments towards the repricing by March 3.

Atlantic Broadband pricing

Another deal set to launch Thursday is Atlantic Broadband's $555 million five-year term loan B, which is being talked at Libor plus 300 bps with a 1% Libor floor and a par offer price, according to a market source.

Credit Suisse and SunTrust are the lead banks on the Quincy, Mass.-based cable provider's deal and are asking for commitments by March 3.

Proceeds will be used to refinance/reprice a term loan B that is priced at Libor plus 350 bps with a 1.5% Libor floor and was sold at an original issue discount of 991/2.

The B loan, originally sized at $575 million, was obtained late last year to refinance a bank deal, pay a dividend and redeem preferred stock.

Jo-Ann firms timing

Jo-Ann Stores zeroed in on timing on its proposed $1.025 billion senior secured credit facility, with the scheduling of a bank meeting for Thursday morning, and revealed price talk on its term loan, according to a market source.

Previously, it was said that the deal would likely come to market in the latter part of this week but specifics had been unavailable.

The facility consists of a $375 million ABL revolver and a $650 million covenant-light term loan, the source said, adding that the term loan is being talked at Libor plus 350 bps with a 1.25% Libor floor and an original issue discount of 991/2.

J.P. Morgan, Bank of America Merrill Lynch and Barclays are the lead banks on the deal that will be used to help fund the company's buyout by Leonard Green & Partners LP for $61 per share in cash, for a total price of around $1.6 billion.

Jo-Ann selling notes

Jo-Ann Stores also revealed that it will be issuing $450 million of senior notes. The roadshow will kick off on Thursday and pricing is expected for March 3.

One source said that the notes are replacing the company's previously disclosed plans for $400 million in mezzanine financing that was committed by TCW/Crescent Mezzanine Management V LLC.

Closing on the buyout is expected by the end of March, subject to the receipt of regulatory approvals and stockholder approval, which will be sought at a meeting on March 18. It is not subject to any financing condition.

Jo-Ann Stores is a Hudson, Ohio-based specialty retailer of fabrics and crafts.

iStar coming soon

iStar Financial has scheduled a bank meeting for 2:30 p.m. ET on Thursday to launch an up to $3 billion senior secured credit facility that is being led by J.P. Morgan, according to a market source.

Details on structure and price talk are not yet available, the source said.

Proceeds will be used to refinance the company's secured loan facilities due in June 2011 and 2012 and to repay a portion of its unsecured debt maturing in 2011.

Security is expected to be a first-lien on a diversified collateral pool comprised primarily of performing loans and corporate tenant lease assets.

iStar is a New York-based finance and investment company focused on the commercial real estate industry.

CDW readies deal

CDW has set a conference call for 11 a.m. ET on Thursday to launch a repricing of its extended $1.1 billion senior secured term loan B-2 due in 2017, according to a market source.

When the term loan B-2 was completed late last year, it was priced at Libor plus 500 bps and includes step-downs to Libor plus 475 bps at 4.0 times senior secured leverage and to Libor plus 450 bps at 3.5 senior secured leverage.

J.P. Morgan and Morgan Stanley are the lead banks on the deal.

Following the repricing news, the term loan B-2 was quoted at par bid, par ½ offered in the secondary market, down from par ¼ bid, par 5/8 offered, a trader remarked.

CDW is a Vernon Hills, Ill.-based provider of technology products and services to business, government and education customers.

Waste Industries details

In more primary news, Waste Industries held a bank meeting on Wednesday morning to launch its credit facility, and in connection with the event, structure and price talk were released, according to a market source.

The $700 million deal consists of a $225 million revolver and a $475 million term loan, and the term loan is being talked at Libor plus 350 bps with a 1.5% Libor floor and an offer price of 99½ to par, the source said.

Bank of America Merrill Lynch is the left lead bank on the deal that will be used to refinance existing debt.

Waste Industries is a Raleigh, N.C.-based solid waste services company.

Hyland talk surfaces

Hyland Software announced price talk of Libor plus 425 bps with a 1.5% Libor floor and a par offer price on its $205 million six-year term loan that was launched with a call on Wednesday afternoon, according to a market source. There is 101 soft call protection for one year.

Credit Suisse is the left lead bank on the deal that will be used to refinance/reprice an existing $205 million term loan obtained a few months ago at pricing of Libor plus 500 bps with a 1.75% Libor floor. The loan was sold at an original issue discount of 99, and was used to refinance existing debt and to fund a dividend. This existing loan will be repaid at par.

Commitments are due from lenders on March 2.

Hyland Software is a Westlake, Ohio-based enterprise content management software vendor.

TravelClick sets guidance

TravelClick, a Schaumburg, Ill.-based provider of online bookings to hotels, announced official price talk of Libor plus 450 bps to 475 bps with a 1.5% Libor floor on its $230 million senior secured credit facility (B1/B) that was launched with a bank meeting on Wednesday, according to a market source.

The facility consists of a $20 million revolver, a $160 million term loan and a $50 million delayed-draw term loan, and the original issue discount on the term loan is still to be determined, the source said.

Last week, early guidance on the deal had been circulating as Libor plus 450 bps with a 1.5% Libor floor. It was said that the term loan was expected to be offered at an original issue discount of 99.

BMO Capital Markets is the lead bank on the deal that will be used to refinance senior and junior debt, and the delayed-draw term loan will be available for acquisition financing.

Sheridan reveals OID

Sheridan Group told lenders that its $140 million term loan is being offered at an original issue discount of 98 as the deal was launched with a call on Wednesday, according to a market source.

Price talk on the term loan had already come out on Tuesday at Libor plus 525 bps with a 1.75% Libor floor.

The company's $160 million credit facility (B2/B) also includes a $20 million revolver.

Bank of America Merrill Lynch is the lead bank on the deal that will be used to refinance existing notes and bank debt.

Sheridan Group is a Hunt Valley, Md.-based print and publishing company.

MidContinent launches

Also launching Wednesday was MidContinent Communications' $675 million credit facility that will be used to refinance an existing credit facility, and it came at previously outlined price talk, according to a market source.

The $125 million revolver and $200 million term loan A are being talked at Libor plus 275 bps, about 100 bps lower than existing pro rata pricing, and the $350 million term loan B is being talked at Libor plus 325 bps with a 1.25% Libor floor and a par issue price. There is 101 soft call protection for one year on the B loan.

By comparison, pricing on the existing B loan is Libor plus 450 bps with a step-down to Libor plus 425 bps once leverage falls below 3.5 times and a 1.75% Libor floor, and there is 101 soft call protection for one year.

MidContinent lead banks

SunTrust, Wells Fargo, RBC Capital Markets and U.S. Bank are the joint bookrunners on MidContinent Communications' credit facility.

When the facility was obtained in August 2010 to fund a distribution, refinance debt and for general corporate purposes, the term loan B was sold at an original issue discount of 981/2.

Corporate and loan ratings are B1/B+, and, since the close in August, leverage has dropped almost a half turn to roughly 4.3 times.

MidContinent Communications is a Minneapolis-based provider of cable television, local and long-distance digital telephone service and high-speed internet access.

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