Tribune rises; ConvaTec reworks deal; New Breed, Atlantic Broadband, Waddington set talk

By Sara Rosenberg

New York, Sept. 11 - Tribune's Co.'s bank debt headed higher in trading on Tuesday as news surfaced that the company's reorganization plan is moving forward now that a judge dismissed an appeal by one of its creditors to halt the company's exit.

Moving to the primary, ConvaTec Inc. made revisions to its term loan B-2, reducing the coupon and the Libor floor, setting the discount in the middle of guidance and adding call protection.

Also, New Breed Logistics Inc., Atlantic Broadband Group LLC, Waddington North America and Station Casinos LLC released talk, Advanced Disposal Services nailed down timing on the launch of its credit facility, and Jackson Hewitt Tax Service, Omnicare Inc., Boomerang Tube LLC and IPC Systems Inc. joined this week's calendar.

Tribune gains ground

Tribune's bank debt was better in the secondary market on Tuesday with news of the dismissal of an appeal by Aurelius Capital Management to stay the company's emergence from Chapter 11, according to a trader.

The term loan B was quoted at 76¼ bid, 77¼ offered, up from 75¾ bid, 76¾ offered, the incremental term loan and term loan X were quoted at 76 bid, 77 offered, up from 75¼ bid, 76¼ offered, and the revolver was quoted at 79½ bid, 81½ offered, up from 79 bid, 81 offered, the trader said.

As part of its reorganization plan, Tribune expects to get a $1.1 billion new term loan, of which some of the proceeds will be used to make debt distributions, and to distribute $1.9 billion of cash and common stock or warrants to thousands of creditors on or after the plan effective date. A $300 million line of credit is also anticipated.

The plan proposed by the Chicago-based media company's debtors, official committee of unsecured creditors, Oaktree Capital Management LP, Angelo Gordon & Co. LP and JPMorgan Chase Bank was confirmed on July 23.

ConvaTec tweaks loan

Switching to the primary, ConvaTec changed pricing on its $300 million term loan B-2 due 2016 to Libor plus 375 basis points with a 1.25% Libor floor and an original issue discount of 993/4, from talk of Libor plus 425 bps with a 1.5% floor and a discount of 99½ to par, according to a market source.

Furthermore, the term B-2 saw the addition of 101 soft call protection for one year, the source remarked.

Although the B-2 loan was flexed, the company's existing term loan will remain at Libor plus 425 bps with a 1.5% Libor floor.

Commitments for the J.P. Morgan Securities LLC-led loan are due by 5 p.m. ET on Thursday. A call to launch the deal just took place on Monday morning.

Proceeds will fund the $321 million acquisition of 180 Medical Holdings Inc., which is expected to close late in the third quarter, subject to regulatory approval and customary conditions.

ConvaTec is a Skillman, N.J.-based developer and marketer of medical technologies. 180 Medical is an Oklahoma City-based provider of disposable, intermittent catheters and urologic medical supplies.

New Breed reveals talk

New Breed Logistics held a bank meeting in the morning to kick off syndication on its credit facility, and in connection with the event, talk on the $300 million seven-year term loan B was announced at Libor plus 475 bps to 500 bps with a 1.25% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, according to a market source.

The $350 million senior secured credit facility (B2), for which commitments are due on Sept. 21, also includes a $50 million five-year revolver.

Morgan Stanley Senior Funding Inc., Bank of America Merrill Lynch, RBC Capital Markets LLC and Wells Fargo Securities LLC are leading the deal that will refinance existing debt and fund a sponsor dividend.

New Breed is a High Point, N.C.-based third-party logistics services provider.

Atlantic Broadband launches

Atlantic Broadband released talk on its $710 million credit facility (Ba3/BB+) with its launch in the afternoon, according to a market source.

The $50 million five-year revolver and $200 million five-year term loan A are both talked at Libor plus 300 bps with no Libor floor, the source said.

And, the $460 millions seven-year term loan B is talked at Libor plus 350 bps with a 1.25% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, the source continued.

Bank of America Merrill Lynch, TD Securities (USA) LLC and BMO Capital Markets Corp. are the lead banks on the deal.

Atlantic being acquired

Proceeds from Atlantic Broadband's credit facility will be used to help fund its $1.36 billion acquisition by Cogeco Cable Inc. from ABRY Partners IV LP and Oak Hill Capital Partners LP, and refinance its existing debt.

Other funds for the transaction will come from about $150 million of cash on hand and a roughly $550 million draw under Cogeco's existing revolver.

Pro forma leverage at Atlantic Broadband will be 4.3 times.

Closing is expected before the end of the year, subject to Hart-Scott-Rodino approval, federal, state and local regulatory approvals and other customary conditions.

Atlantic Broadband is a Quincy, Mass.-based cable system operator. Cogeco is a Montreal-based telecommunications corporation.

Waddington gives guidance

Waddington North America also held a bank meeting, and price talk on its $220 million credit facility came out at Libor plus 500 bps with a 1.25% Libor floor and an original issue discount of 99, according to a market source.

The GE Capital Markets-led facility consists of a $30 million revolver and a $190 million term loan, the source continued.

Proceeds will be used to help fund the purchase of the company by Olympus Capital.

Waddington is a Covington, Ky.-based manufacturer of disposable drinkware, dinnerware, servingware, cutlery and custom packaging.

Station Casinos pricing

Station Casinos announced on Tuesday morning price talk on its $575 million seven-year term loan B at Libor plus 450 bps with a 1.25% Libor floor and an original issue discount of 99, according to a market source.

The term loan B, along with a $200 million five-year revolver, launched with a bank meeting on Monday afternoon, but price talk was not released at that time. Ratings on the $775 million senior secured credit facility came out within a few hours of the bank meeting at B2/B+.

Lead banks, Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC, are seeking commitments by Sept. 18, the source added.

The actual co-borrowers on the deal are Station Casinos NP Opco LLC & Station GVR Acquisition LLC and they will use proceeds to refinance their existing debt.

Station Casinos is a Las Vegas-based casino company.

Advanced Disposal launch

In more primary news, Advanced Disposal firmed up timing on its $1.95 billion credit facility as a bank meeting has been scheduled for Thursday to launch the deal, according to a market source. Prior to now, timing had just been labeled as expected September business.

As previously reported, the facility is comprised of a $300 million revolver and a $1.65 billion term loan.

Deutsche Bank Securities, Inc., Macquarie Capital, UBS Investment Bank, Barclays Capital Inc. and Credit Suisse Securities (USA) LLC are leading the deal that will be used to help fund the acquisition of Veolia ES Solid Waste Inc. from Veolia Environmental Services North America Corp.

Advanced Disposal notes

In addition to the credit facility, Advanced Disposal expects to sell $830 million of senior unsecured notes to fund the $1.9 billion acquisition.

Through the transaction, Star Atlantic Waste Holdings LP, a Highstar Capital portfolio company, will combine its existing investments in Advanced Disposal Services Inc. and Interstate Waste Services Inc. with the acquired Veolia operations, creating one combined company named Advanced Disposal Services.

Senior secured leverage is around four times and leverage through the unsecured debt is around six times.

Closing is expected this fall, subject to customary regulatory approvals.

Advanced Disposal is a Jacksonville, Fla.-based provider of integrated, non-hazardous solid waste collection, transfer, recycling and disposal services.

Jackson Hewitt readies deal

Jackson Hewitt Tax Service will also be holding a bank meeting on Thursday, at which time it will launch a $200 million five-year credit facility, according to a market source.

The facility consists of a $50 million revolver and a $150 million term loan, the source said.

Bank of America Merrill Lynch is leading the deal that will be used to refinance existing debt.

Jackson Hewitt is a Parsippany, N.J.-based provider of full-service individual federal and state income tax return preparation.

Omnicare plans loan

Omnicare's bank meeting is scheduled for Thursday as well, with the company planning to launch $725 million five-year credit facility (Baa3/BBB-) that is talked at Libor plus 175 bps, according to a market source.

The facility consists of a $300 million revolver that has a 35 bps unused fee and a $425 million term loan A, the source remarked.

SunTrust Robinson Humphrey Inc. is leading the refinancing deal.

Net leverage is around 2.4 times.

Omnicare is a Cincinnati-based provider of pharmaceutical services to patients and providers.

Boomerang coming soon

Another deal to emerge was Boomerang Tube's $230 million term loan, which will launch with a bank meeting on Thursday, according to a market source.

Talk on the term loan is Libor plus 925 bps to 950 bps with a 1.5% Libor floor and an original issue discount that is still to be determined, and there is call protection of 103 in year one, 102 in year two and par thereafter, the source said.

Bank of America Merrill Lynch and Wells Fargo Securities LLC are leading the deal that will refinance senior notes, mortgage notes, an equipment term loan and ABL revolver debt.

Boomerang Tube is a St. Louis-based producer of oil country tubular goods and line pipe.

IPC joins calendar

Meanwhile, IPC Systems is scheduled to hold a lender call at noon ET on Wednesday to launch a $230 million five-year term loan C that is being led by J.P. Morgan Securities LLC, according to a market source.

Proceeds will be used to refinance non-extended term loan B debt, and the new C loan will be co-terminus with the existing extended term loans, the source said.

IPC is a Jersey City, N.J.-based provider of specialized voice and data communications and trading collaboration services for the financial markets.

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