HCA, AMC, Merge Healthcare, Rexnord free up; Lineage Logistics, Nuveen, Wabash update deals

By Sara Rosenberg

New York, April 23 - HCA Inc.'s term loan B-4 began trading on Tuesday, and AMC Entertainment Holdings Inc., Merge Healthcare and Rexnord LLC made their way into the secondary market too.

Moving to the primary, Lineage Logistics LLC increased its term loan size, while decreasing the spread, the original issue discount and the length of the call protection, Nuveen Investments lifted pricing on its first-lien loan and Wabash National Corp. firmed pricing at the low end of guidance.

Also, Ineos Group Holdings SA, Calpine Construction Finance Co. LP and PowerTeam Services (Power Buyer LLC) disclosed talk with launch.

Furthermore, CompuCom Systems Inc., Orchard Brands, Constellation Brands Inc. (CIH International SARL), Peninsula Gaming LLC and Fairway Group Acquisition Co. joined this week's calendar.

HCA breaks

HCA's $2,373,000,000 term loan B-4 freed up on Tuesday, with levels quoted at par ¼ bid, par ½ offered, a trader told Prospect News.

Pricing on the loan, which was upsized recently from $1.25 billion, is Libor plus 275 basis points with no Libor floor, and it was issued at par.

Bank of America Merrill Lynch is the lead bank on the deal that will be used to refinance a term loan B-3 priced at Libor plus 325 bps with no Libor floor.

HCA is a Nashville-based health care company.

AMC tops OID

AMC Entertainment's credit facility broke for trading, with the $775 million senior secured covenant-light term loan B due April 30, 2020 quoted at par 3/8 bid, 101 3/8 offered, according to a trader.

Pricing on the B loan is Libor plus 275 bps with a 0.75% Libor floor, and it was sold at an original issue discount of 993/4. There is 101 soft call protection for six months.

Last week, pricing on the term B was cut from Libor plus 300 bps, the floor was reduced from 1% and the discount was tightened from 991/2.

The company's $925 million credit facility (Ba2/BB-/BB) also includes a $150 million five-year revolver, for which the size firmed at the high end of the $125 million to $150 million talk.

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

AMC is a Kansas City, Mo.-based movie exhibitor.

Merge frees up

Merge Healthcare's credit facility also emerged in the secondary market, with the $255 million six-year term loan quoted at par bid, according to a trader.

Pricing on the term loan is Libor plus 475 bps with a 1.25% Libor floor, and it was sold at an original issue discount of 99. There is 101 soft call protection for one year.

Recently, the term loan was upsized from $250 million and the coupon was lifted from Libor plus 450 bps.

The company's $275 million credit facility (B2/B+) also includes a $20 million five-year revolver.

Jefferies Finance LLC is leading the deal that will be used to refinance $252 million of the company's 11¾% secured notes due 2015, and, as a result of the upsizing, for general corporate purposes.

Leverage is about 4.9 times.

Merge Healthcare is a Chicago-based provider of software for the storage and sharing of medical images.

Rexnord hits secondary

Rexnord's $788,160,625,000 first-lien covenant-light term loan (Ba2/BB) due April 2018 freed up for trading too, with levels quoted at par ½ bid, according to a market source.

Pricing on the loan is Libor plus 275 basis points with a 1% Libor floor, and it was issued at par. There is 101 repricing protection for six months.

Proceeds are being used to reprice an existing term loan from Libor plus 350 bps with a 1% floor.

Currently, the term loan is sized at about $938 million, but the company just decided that immediately prior to closing of the repricing, it will make a $150 million prepayment, another source remarked.

Credit Suisse Securities (USA) LLC is leading the deal.

Rexnord is a Milwaukee-based industrial company comprising two strategic platforms: process & motion control and water management.

Lineage reworks loan

Over in the primary, Lineage Logistics lifted its six-year first-lien term loan (B3/B) to $255 million from $220 million, trimmed pricing to Libor plus 350 bps from Libor plus 400 bps, revised the original issue discount to 99½ from 99 and shortened the 101 soft call protection to six months from one year, according to market sources.

As before, the loan has a 1% Libor floor.

Lead banks, Credit Suisse Securities (USA) LLC, Goldman Sachs & Co., SunTrust Robinson Humphrey Inc. and KKR Capital Markets, were asking for recommitments by 5 p.m. ET on Tuesday.

Proceeds from the original amount will be used to refinance existing debt, to fund acquisitions and for general corporate purposes, and of the excess raised through the upsizing, $25 million will be used for general corporate purposes and $10 million will go into a restricted account to cash collateralize letters-of-credit, sources remarked.

Lineage Logistics is a Colton, Calif.-based cold storage warehousing and logistics company.

Nuveen raises spread

Nuveen Investments revised pricing on its $2.56 billion first-lien term loan due May 2017 to Libor plus 400 bps from Libor plus 375 bps and added a step-down to Libor plus 375 bps when first-lien net leverage is at 4 times, according to a market source.

As before, the first-lien loan has no Libor floor, a par offer price and 101 soft call protection for six months.

The company is also getting a $500 million second-lien term loan due February 2019 that came in line with talk at Libor plus 525 bps with a 1.25% Libor floor, a par offer price, and 101 hard call protection for one year.

Deutsche Bank Securities Inc. and Bank of America Merrill Lynch are leading the $3.06 billion deal that will be used to reprice/refinance existing first- and second-lien term loans.

Nuveen is a Chicago-based provider of investment services to institutions as well as individual investors.

Wabash finalizes coupon

Wabash National set pricing on its $300 million term loan at Libor plus 350 bps, the tight end of the Libor plus 350 bps to 375 bps talk, according to a market source.

The loan still has a 1% Libor floor, a par offer price and 101 soft call protection until May 2014.

Allocations are expected to go out on Thursday, the source said.

Morgan Stanley Senior Funding Inc. and Wells Fargo Securities LLC are leading the deal that will reprice an existing term loan from Libor plus 475 bps with a 1.25% Libor floor, and with the repricing, the company is removing an interest coverage covenant while keeping its leverage covenant.

Wabash is a Lafayette, Ind.-based manufacturer of semi-trailers.

Ineos reveals talk

In more primary happenings, Ineos Group launched its add-on debt and repricing proposal with a call on Tuesday morning, and with the event, price talk came out, according to a market source.

The $570 million add-on term loan due 2018 and repricing of the existing $1,977,000,000 term loan due 2018 are talked at Libor plus 300 bps to 325 bps with a 1% Libor floor, an offer price of 99½ to par on the add-on, a par offer price on the repricing and 101 soft call protection for six months, the source said.

The roughly €300 million euro add-on term loan due 2018 and the repricing of the existing €494 million term loan due 2018 are talked at Euribor plus 325 bps to 350 bps with a 1% floor, an offer price of 99½ to par on the new money, a par offer price on the repricing and 101 soft call protection for six months, the source remarked.

And, the repricing of the existing $370 million term loan due 2015 is talked at Libor plus 225 bps to 250 bps with no floor, a par offer price and 101 soft call protection for six months.

Ineos lead banks

Barclays and Bank of America Merrill Lynch are the joint global coordinators on Ineos' deal and bookrunners with Citigroup Global Markets Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC and UBS Securities LLC.

Through this transaction, pricing on the existing U.S. term loan due 2018 is being taken down from Libor plus 525 bps with a 1.25% floor, the existing euro term loan due 2018 is being taken down from Euribor plus 550 bps with a 1.25% floor, and the existing term loan due 2015 is being taken down from Libor plus 425 bps with a 1.25% floor.

Meanwhile, proceeds from the add-on debt will be used to refinance bonds.

Commitments are due on April 30, the source added.

Ineos is a Switzerland-based manufacturer of petrochemicals, specialty chemicals and oil products.

Calpine discloses guidance

Calpine Construction Finance held its call in the afternoon, launching its $1,055,000,000 seven-year term loan B with talk of Libor plus 250 bps to 275 bps with a 0.75% Libor floor, an original issue discount of 99¾ and 101 soft call protection for six months, according to a market source.

Goldman Sachs & Co. is the left lead on the deal that will be used to redeem the company's 8% senior secured notes due 2016.

Calpine Construction is a subsidiary of Calpine Corp., a Houston-based power producer.

PowerTeam pricing

PowerTeam Services announced talk on its first- and second-lien term loans with its afternoon bank meeting, and is giving lenders until May 2 to place their orders, according to sources.

The $385 million seven-year covenant-light first-lien term loan and $50 million covenant-light first-lien delayed-draw term that is available for one year are talked at Libor plus 350 bps with a 1.25% Libor floor, a discount of 99 and 101 repricing protection for one year, sources said. There is a ticking fee on the delayed-draw term loan of half the spread from days 31 to 90 and the full spread starting on day 91.

Also, the $140 million 71/2-year covenant-light second-lien term loan is talked at Libor plus 750 bps with a 1.25% floor, a discount of 98½ and call protection of 103 in year one, 102 in year two and 101 in year three, sources continued.

Credit Suisse Securities (USA) LLC, RBC Capital Markets and GE Capital Markets are leading the $635 million credit facility, which also includes a $60 million revolver.

Proceeds will help fund the company's buyout by Kelso & Co. from CIVC Partners and True North Equity LLC.

PowerTeam is a Plymouth, Mich.-based provider of services to electric and gas utilities.

CompuCom reveals timing

CompuCom Systems released timing on its proposed credit facility, with the deal scheduled to launch with a bank meeting at 10:30 a.m. ET in New York on Wednesday, a market source said.

Citigroup Global Markets Inc., J.P. Morgan Securities LLC, BMO Capital Markets, Jefferies Finance LLC and Sumitomo Mitsui Banking Corp. are leading the deal.

Proceeds will be used to help fund the company's buyout by Thomas H. Lee Partners LP from Court Square Capital Partners.

Closing is expected this quarter, subject to regulatory approvals and the satisfaction of other customary conditions.

CompuCom is a Dallas-based IT services specialist.

Orchard Brands coming soon

Orchard Brands set a bank meeting for 2 p.m. ET on Thursday to launch a $180 million six-year first-lien term loan and a $50 million 61/2-year second-lien term loan, according to a market source.

Jefferies Finance LLC and Credit Suisse Securities (USA) LLC are leading the $230 million deal that will be used to refinance existing debt.

Also, the company is extending its asset-based revolver with PNC Capital Markets LLC to mature in five years.

First-lien leverage is around 3.5 times and total leverage is around 4.5 times, the source said.

Orchard Brands is a Beverly, Mass.-based multi-channel marketer of apparel and home products.

Constellation readies loan

Constellation Brands will hold a lender call at 11 a.m. ET on Wednesday to launch a $1 billion seven-year term loan B that is being talked at Libor plus 200 bps to 225 bps with a 0.75% Libor floor and an original issue discount that is still to be determined, according to a market source.

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

Proceeds will be used to help fund the acquisition of Grupo Modelo's U.S. business.

Constellation Brands is a Victor, N.Y.-based wine company.

Peninsula repricing

Peninsula Gaming plans to launch on Wednesday a repricing of its roughly $823 million term loan B from Libor plus 450 bps with a 1.25% Libor floor, according to sources.

The repriced loan has 101 soft call protection for six months, sources said.

Bank of America Merrill Lynch, J.P. Morgan Securities LLC and Deutsche Bank Securities Inc. are leading the transaction.

Peninsula is an owner and operator of casinos and off-track betting parlors.

Fairway plans call

Fairway scheduled a lender call for 3 p.m. ET on Wednesday to launch a repricing of its $275 million first-lien term loan due August 2018 from Libor plus 550 bps with a 1.25% Libor floor, according to a market source.

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

Fairway is a supermarket chain with locations in New York, New Jersey and Connecticut.

Duff & Phelps closes

In other news, the buyout of Duff & Phelps Corp. by the Carlyle Group, Stone Point Capital LLC, Pictet & Cie and Edmond de Rothschild Group for $15.55 per share in cash has been completed, according to a news release.

For the transaction, the company got a $424 million senior secured deal (B1/B) comprised of a $75 million five-year revolver and a $349 million seven-year first-lien covenant-light term loan.

Pricing on the term loan is Libor plus 350 bps with a 1% Libor floor, and it was sold at an original issue discount of 993/4. There is 101 soft call protection for six months.

During syndication, pricing on the term loan was cut from Libor plus 375 bps, the floor was reduced from 1.25%, the discount was tightened from 99½ and the call protection was shortened from one year.

Credit Suisse Securities (USA) LLC, Barclays and RBC Capital Markets led the deal for the New York-based financial advisory and investment banking firm.

Tower Auto wraps

Tower Automotive Holdings USA LLC closed on its $420 million seven-year senior secured term loan B (B1/B+) that is priced at Libor plus 450 bps with a 1.25% Libor floor, a news release said. The debt was sold at a discount of 99½ and has 101 soft call protection for one year.

During syndication, the loan was upsized from $275 million, pricing was lowered from talk of Libor plus 475 bps to 500 bps and the discount was revised from 99.

Citigroup Global Markets; Goldman Sachs & Co., J.P. Morgan Securities LLC and Wells Fargo Securities LLC led the deal.

Proceeds are being used to refinance the company's 10 5/8% senior secured notes, all of which will be taken out as result of the previous term loan upsizing.

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

Dynegy completes deal

Dynegy Inc. closed on its $1,775,000,000 credit facility (B2/BB-) that includes a $475 million five-year revolver, a $500 million seven-year term loan B-1 and an $800 million seven-year term loan B-2, according to a news release.

The Houston-based energy company's revolver is priced at Libor plus 275 bps, and both term loans are priced at Libor plus 300 bps with a 1% Libor floor, and were sold at an original issue discount of 991/2. The term loans have 101 soft call protection for one year.

During syndication, the maturity on the term loan B-1 was pushed out from two years, pricing was cut from Libor plus 350 bps and call protection was added. Also, pricing on the term loan B-2 was reduced from Libor plus 375 bps, the floor was trimmed from 1.25% and the discount was tightened from 99.

Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc., Bank of America Merrill Lynch, Barclays, Deutsche Bank Securities Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC, RBC Capital Markets and UBS Investment Bank led the deal that was used to refinance credit facilities at subsidiaries GasCo and CoalCo.

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