Walter, Michaels break; Del Monte dips on refi; VWR slides; DigitalgGlobe, Ocwen reworked

By Sara Rosenberg

New York, Jan. 24 - Walter Investment Management Corp.'s add-on term loan made its way into the secondary market on Thursday after the discount firmed at the tight end of talk, and the debt was then seen bid above par, and Michaels Stores Inc.'s loan broke too.

Also in trading, Del Monte Corp.'s term loan B headed lower as news surfaced that the debt is being refinanced, and VWR Funding Inc.'s extended term loan B softened with the launch of an add-on.

Moving to the primary, DigitalGlobe Inc. revised its term loan B, reducing the coupon, adding a leverage-based step-down and eliminating plans for an original issue discount, Ocwen Loan Servicing LLC lowered pricing on its term loan while firming the discount price at the low end of guidance, and LMI Aerospace Inc. accelerated the commitment deadline on its deal.

Furthermore, Saxon Energy Services Inc., Interactive Data Corp. and J. Crew Group Inc. released talk, and WASH Multifamily Laundry Systems revealed tranching with launch, while Go Daddy Operating Co. LLC, First Advantage and Tervita Corp. emerged with loan plans.

Walter Investment frees up

Walter Investment's $825 million first-lien add-on term loan (B2/B+) due Nov. 28, 2017 broke for trading on Thursday, with the bid seen at par 1/4, according to a market source.

Pricing on the add-on matches the existing term loan at Libor plus 450 basis points with a 1.25% Libor floor, and the debt was sold at an original issue discount of 991/2, another source remarked. There is 101 repricing protection until Nov. 28, 2013.

During syndication, the add-on was upsized from $475 million and the discount finalized at the tight end of the 99 to 99½ talk.

Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc. and Bank of America Merrill Lynch led the deal that is being used to fund the initial installments for the purchase of the mortgage servicing rights related to the $93 billion of unpaid principal balance of servicing from Bank of America and for working capital and general corporate purposes.

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

Michaels hits secondary

Michaels Stores $1.64 billion seven-year covenant-light term loan B (B1/BB-) also freed up, with levels quoted at par ½ bid, 101¼ offered, according to a market source.

Pricing on the loan is Libor plus 275 bps with a step-down to Libor plus 250 bps when net senior secured is below 1.5 times. The debt has a 1% Libor floor and was sold at par.

Earlier this, pricing on the loan was lowered from talk of Libor plus 300 bps to 325 bps, the step-down was added and the offer price tightened from 993/4.

Deutsche Bank Securities Inc., Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Barclays, Morgan Stanley Senior Funding Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC and Wells Fargo Securities LLC are leading the deal that will be used to refinance existing debt.

Michaels Stores is an Irving, Texas-based retailer of arts, crafts, framing, floral, wall decor and seasonal merchandise for the hobbyist and do-it-yourself home decorator.

Del Monte softens

Del Monte saw its term loan B drop to par bid, par ½ offered from 101 1/8 bid, 101 5/8 offered after it was announced that the company is looking to amend and refinance the roughly $2.6 billion term loan B, according to a trader.

A call will be held at 10 a.m. ET on Friday to launch the new roughly $2.6 billion term loan B, which is being talked at Libor plus 300 basis points with a 1% Libor floor and a par offer price, a market source said.

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

Del Monte is a San Francisco-based producer, distributor and marketer of pet products and food products.

VWR trades lower

VWR Funding's extended term loan fell to par ¼ bid, 101¼ offered from 101 bid, 102 offered as the company launched (with no call or meeting) a $200 million senior secured add-on term loan B due April 3, 2017, according to a trader.

The add-on is talked at Libor plus 425 bps with a par offer price and 101 soft call protection for one year, a source said. The spread on the loan is in line with pricing on the existing extended term loan.

Commitments for the add-on are due at 5 p.m. ET on Monday, the source continued.

Citigroup Global Markets Inc. is leading the deal that will be used to refinance non-extended term debt due June 29, 2014.

The non-extended term loan was unchanged in trading at par bid, 101 offered, the trader added.

VWR is a Radnor, Pa.-based distributor of laboratory supplies and services.

DigitalGlobe revises loan

Over in the primary market, DigitalGlobe flexed pricing on its $550 million seven-year term loan B to Libor plus 275 bps from talk of Libor plus 325 bps to 350 bps, added a step-down to Libor plus 250 bps when total leverage is below 2.5 times, and tightened the offer price to par from 991/2, according to a market source.

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

Morgan Stanley Senior Funding Inc., Bank of Tokyo-Mitsubishi UFJ Ltd., J.P. Morgan Securities LLC and Citigroup Global Markets Inc. are leading the $700 million senior secured deal (Ba2/BBB-), which also includes a $150 million five-year revolver that is expected to be undrawn at closing.

Commitments were due by 5 p.m. ET on Thursday.

DigitalGlobe buying GeoEye

Proceeds from DigitalGlobe's credit faciltiy and $500 million of senior notes will be used to fund the acquisition of GeoEye Inc. and refinance about $1 billion of existing debt.

GeoEye shareowners will have the right to elect either 1.137 shares of DigitalGlobe common stock and $4.10 per share in cash, 100% of the payment in cash ($20.27) or 100% of the payment in stock (1.425 shares of DigitalGlobe common stock) per share. The total transaction value is around $900 million.

Closing is expected by Jan. 31, subject to regulatory approval from the Federal Communications Commission and the National Oceanic and Atmospheric Administration.

DigitalGlobe is a Longmont, Colo.-based provider of commercial high-resolution earth imagery products and services. GeoEye is a Herndon, Va.-based source of geospatial information and insight for decision makers and analysts.

Ocwen flexes

Ocwen Loan Servicing cut the coupon on its $1.3 billion five-year senior secured term loan to Libor plus 375 bps from Libor plus 425 bps and firmed the original issue discount at 991/2, the tight end of the 99 to 99½ talk, according to a market source.

Unchanged was the term loan's 1.25% Libor floor and 101 soft call protection for one year.

Recommitments are due at noon ET on Friday, accelerated from an original commitment deadline of Monday, the source said.

Barclays, Citigroup Global Markets Inc. and J.P. Morgan Securities LLC are leading the deal.

Ocwen funding acquisition

Proceeds from Ocwen's term loan will help fund the $2.45 billion acquisition of private label, Freddie Mac, Ginnie Mae and master servicing, as well as certain subservicing, mortgage assets from Residential Capital LLC and to refinance existing term loan debt.

Closing is expected for Jan. 31, subject to approval of Freddie Mac, Fannie Mae and various government agencies.

Ocwen, an Atlanta-based provider of residential and commercial loan servicing, special servicing and asset management services, will have pro forma corporate debt to LTM Adjusted EBITDA of 1.7 times and total debt to total net worth of 3.6 times.

LMI shutting early

LMI Aerospace moved up the commitment deadline on its $325 million senior secured credit facility (B1/B+) to noon ET on Monday from Wednesday, according to a market source.

The facility consists of a $100 million five-year revolver, which has a 50 bps unused fee that can step-down to 37.5 bps based on leverage, and a $225 million six-year term loan B.

Price talk on the B loan is Libor plus 400 bps to 425 bps with a 1.25% Libor floor and an original issue discount of 99, and there is 101 soft call protection for one year.

RBC Capital Markets and Wells Fargo Securities LLC are the lead banks on the deal that will be used to back the company's already completed acquisition of Valent Aerostructures LLC, refinance existing debt and provide for working capital needs.

LMI Aerospace is a St. Charles, Mo.-based supplier of structural assemblies, kits and components and provider of design engineering services to the aerospace and defense industries. Valent is a Kansas City, Mo.-based provider of structural components, major sub-assemblies and machined parts for airframe manufacturers.

Saxon discloses talk

Saxon Energy Services held a bank meeting on Thursday for its credit facility, and with the launch, price talk on the term loan was announced, according to a market source.

The $425 million six-year term loan is talked at Libor plus 450 bps with a 1.25% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, the source said.

In addition to the term loan, the company is getting a $100 million revolver.

RBC Capital Markets LLC, HSBC Securities (USA) Inc., UBS Securities LLC and Scotia Capital (USA) Inc. are the lead banks on the $525 million credit facility (Ba3/B) that will be used to refinance existing debt and for general corporate purposes.

Saxon is a Calgary, Alberta-based oil services company providing land based drilling and workover service to oil and gas exploration and production companies.

Interactive Data repricing

Interactive Data held its call in the morning, at which time lenders were told that the company is looking to reprice its roughly $1.3 billion term loan, according to a market source.

The repriced loan is talked at Libor plus 275 bps to 300 bps with a 1% Libor floor and 101 soft call protection for six months, the source said, versus current pricing of Libor plus 325 bps with a 1.25% Libor floor.

Bank of America Merrill Lynch is leading the transaction.

Interactive Data is a Bedford, Mass.-based provider of financial market data.

J. Crew guidance

J. Crew Group Inc. also held a call to launch a repricing, under which it is looking to revise pricing on its roughly $1.18 billion term loan to Libor plus 300 bps with a 1% Libor floor from Libor plus 325 bps with a 1.25% Libor floor, a source said.

The repriced loan is offered at par and includes 101 soft call protection for six months, the source said.

Lead bank, Bank of America Merrill Lynch, is asking for commitments by 5 p.m. ET on Tuesday.

J. Crew is a New York-based retailer of women's, men's and children's apparel, shoes and accessories.

WASH structure surfaces

WASH Multifamily Laundry Systems released tranching details on its $438 million credit facility as the deal launched with a bank meeting at previously outlined talk of Libor plus 475 bps with a 1.25% Libor floor and an original issue discount of 99, a source said.

The facility is comprised of a $50 million revolver, a C$10 million revolver, a $318 million term loan and a C$60 million term loan, the source remarked.

Included in the term loans is 101 soft call protection for one year.

GE Capital Markets and Fifth Third Securities Inc. are the co-lead arrangers on the deal that will be used to refinance existing debt and fund an acquisition.

WASH is an El Segundo, Calif.-based provider of laundry facilities management services.

Go Daddy readies loan

Go Daddy scheduled a call for 10:30 a.m. ET on Friday to launch a $740.6 million senior secured term loan due Dec. 16, 2018, according to a market source, who said that price talk and use of proceeds are not yet available.

Barclays, Deutsche Bank Securities Inc. and RBC Capital Markets LLC are leading the deal.

Go Daddy is a Scottsdale, Ariz.-based provider of web hosting and domain names.

First Advantage on deck

First Advantage set a bank meeting for Monday to launch a $340 million credit facility, which consists of a $40 million revolver and a $300 million first-lien term loan that has 101 soft call protection for one year, according to a market source.

Bank of America Merrill Lynch is the lead bank on the deal.

Also, the company is getting a $125 million second-lien term loan that has been privately placed with Tennenbaum Capital Partners LLC, the source said. This tranche will not be on offer.

Proceeds will fund the acquisition of the employment and resident screening business of LexisNexis Risk Solutions, a division of Reed Elsevier, which is expected to close in early March, subject to customary conditions.

First Advantage is a St. Petersburg, Fla.-based provider of talent acquisition services, including background screening, recruiting, skills assessment and skills-related tax services.

Tervita coming soon

Tervita will be hosting a bank meeting on Tuesday to launch a $500 million first-lien secured term loan B that is being led by RBC Capital Markets, Goldman Sachs & Co., Deutsche Bank Securities Inc. and TD Bank, according to a market source.

Also, the company is looking to get a C$300 million revolver, the source said.

Proceeds from the credit facility, along with new senior secured notes, will refinance the company's existing credit facility.

Tervita, a Calgary-based environmental management company serving the oil and gas industry, anticipates closing on the refinancing by the end of February.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.