Brand Energy, Delta, Blue Coat, IMS, Roofing break; Hyland, PTC, StandardAero reworked

By Sara Rosenberg

New York, Oct. 16 - Brand Energy & Infrastructure Services Inc. reworked tranche sizes and updated pricing and then made its way into the secondary market, and Delta Air Lines Inc., Blue Coat Systems Inc., IMS Health Inc. and Roofing Supply Group LLC freed up as well.

Meanwhile, Hyland Software Inc. made a number of changes to its credit facility, including upsizing its first-lien term loan while reducing the coupon and removing a second-lien term loan from the capital structure.

Also, PTC Alliance Holdings Corp. downsized its loan and raised pricing, StandardAero (DAE Aviation Holdings Inc.) upsized its term B, KeyPoint Government Solutions Inc. disclosed timing, structure and talk on its upcoming deal, and EquiPower Resources Holdings released talk with launch.

Additionally, Penn National Gaming Inc., Einstein Noah Restaurant Group Inc., Warner Music Group Corp. (WMG Acquisition Corp.), Triple Point Technology Inc. and Mercury Payment Systems LLC revealed that they are getting ready to bring deals to the market.

Brand Energy firms terms

Brand Energy released details on final tranche sizes and pricing on its $1.15 billion credit facility, and then the deal broke for trading, according to a market source.

The six-year first-lien term loan (B2/B) firmed at $525 million with pricing of Libor plus 500 basis points 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.

Meanwhile, the four-year first-lien term loan (B2/B) is sized at $250 million and priced at Libor plus 450 bps with a 1.25% floor. The debt was sold at a discount of 99 and includes 101 soft call protection for one year.

And, the seven-year second-lien term loan (Caa2/CCC+) is $300 million and priced at Libor plus 975 bps with a 1.25% Libor floor and was sold at a discount of 98. There is call protection of 103 in year one, 102 in year two and 101 in year three.

Brand repaying debt

Proceeds from Brand Energy's credit facility, which also includes a $75 million five-year revolver (B2/B) priced at Libor plus 450 bps, will be used to refinance existing debt.

Initially, the six-year loan was $700 million and was then downsized to $550 million before settling at the current size. Also, pricing came at the wide end of the Libor plus 475 bps to 500 bps talk.

The four-year tranche was added to the deal when the six-year loan underwent its first downsizing, and it was sized at $150 million at that time. However, with the latest reduction in the six-year loan size and the removal of a $50 million six-year funded letter-of-credit facility (B2/BB-), the four-year loan was increased to its final amount and pricing firmed at the high end of the Libor plus 425 bps to 450 bps talk.

The second-lien term loan was added to the deal when the company decided to repay second-lien borrowings along with its first-lien refinancing. This tranche was downsized from $325 million with the newest first-lien size changes, and pricing was increased from talk of Libor plus 825 bps to 850 bps. Also, the discount came at the wide end of the 98 to 99 guidance, the source added.

Brand trading levels

Upon entering the secondary market in the afternoon, Brand Energy's six-year first-lien term loan was quoted at 99½ bid, par offered, its four-year first-lien term loan was quoted at 99¾ bid, par ¼ offered and its second-lien term loan was quoted at 98½ bid, 99½ offered, a trader remarked.

UBS, Goldman Sachs & Co. and Morgan Stanley Senior Funding Inc. are leading the first-lien deal, and UBS is leading the second-lien loan.

Brand Energy is an Edmonton, Alta.-based provider of specialty multi-craft services to the downstream energy infrastructure market.

Delta tops OID

Delta Air Lines was another deal to free up for trading, with levels on the $1.1 billion six-year term loan B-1 quoted at 99¼ bid, par offered on the open and then it moved to 99 3/8 bid, par 1/8 offered, and levels on the $400 million 31/2-year term loan B-2 quoted at 99¼ bid, par offered, according to sources.

Pricing on the B-1 loan is Libor plus 400 bps and pricing on the B-2 loan is Libor plus 300 bps, with both having a 1.25% Libor floor and sold at an original issue discount of 99. The B-1 has 101 soft call protection for one year.

During syndication, the B-1 loan was upsized from $1 billion and the spread firmed at the tight end of the Libor plus 400 bps to 425 bps talk, and the B-2 loan was upsized from $250 million with pricing coming at the low end of the Libor plus 300 bps to 325 bps guidance.

Also included in the company's $1.95 billion first-lien senior secured credit facility (Ba2/B+) is a $450 million five-year revolver that will be undrawn at close.

Delta lead banks

Delta Air Lines' credit facility is being led by Barclays, Bank of America Merrill Lynch, BNP Paribas Securities Corp., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc. and UBS Securities LLC.

Proceeds will be used to refinance the company's existing Pacific Routes senior secured credit facility and senior secured notes.

Delta is an Atlanta-based provider of scheduled air transportation for passengers and cargo.

Blue Coat frees up

Blue Coat Systems' credit facility broke as well, with the $500 million term loan due 2018 quoted at par bid, par ¾ offered, according to a trader.

Pricing on the loan is Libor plus 450 bps with a 1.25% Libor floor, and it was sold at an original issue discount of 99½ for new money and at par for rollover commitments. There is a pricing step-down to Libor plus 425 bps at 2.25 times total leverage and 101 soft call protection for one year.

During syndication, pricing on the loan firmed at the tight end of guidance of Libor plus 450 bps to 475 bps with a discount of 99 to 99½ for new money, and the step-down was added.

The company's $525 million senior secured credit facility (B2/BB-) also provides for a $25 million revolver that is priced at Libor plus 450 bps with a 1.25% Libor floor. This tranche also saw pricing firm at the low end the Libor plus 450 bps to 475 bps talk.

Blue Coat repaying debt

Proceeds from Blue Coat's credit facility will be used to refinance an existing bank deal that includes a roughly $360 million first-lien term loan priced at Libor plus 600 bps with a 1.5% Libor floor and a roughly $115 million second-lien term loan priced at Libor plus 1,000 bps with a 1.5% Libor floor.

With the refinancing, existing first-lien lenders are getting paid down at 101, and existing second-lien lenders are getting paid down at 103.

Total leverage at close is 3.4 times.

Jefferies & Co. is leading the deal for the Sunnyvale, Calif.-based web security company.

IMS hits secondary

IMS Health's $750 million add-on term loan began trading late in the day, with levels on the U.S portion quoted at par ¼ bid, par 5/8 offered, according to a trader.

Pricing on the U.S. piece is Libor plus 325 bps with a 1.25% Libor floor and on the euro portion is Euribor plus 350 bps with a 1.5% floor - in line with existing U.S. and euro term loan pricing. The debt was sold at a discount of 99¾ after tightening from talk of 99 to 991/2.

Bank of America Merrill Lynch and Goldman Sachs & Co. are the lead banks on the deal.

Proceeds will be used to fund a dividend.

IMS is a Parsippany, N.J.-based provider of information, services and technology for the health care industry.

Roofing Supply breaks

Roofing Supply's $315 million term loan (B) began trading too, with levels quoted at par bid, par ½ offered, according to a market source.

Pricing on the loan is Libor plus 375 bps with a 1.25% Libor floor, and there is 101 soft call protection for one year.

Of the total term loan amount, $25 million is an add-on that is being used for general corporate purposes and was sold at a discount of 993/4, revised from 99 at launch, and $290 million was offered at par and used to reprice an existing term loan from Libor plus 525 bps with a 1.25% floor, the source said.

Existing lenders are getting paid out at 101 on the repricing portion.

Deutsche Bank Securities Inc. is the lead bank on the deal.

Roofing Supply is a Dallas-based wholesale distributor of roofing supplies and related materials.

BWIC surfaces

Also in the secondary, a $149.8 million Bid-Wanted-In-Competition was announced on Tuesday, and market players are being asked to place their bids by 11 a.m. ET on Wednesday, according to a trader.

The portfolio includes roughly 70 issuers.

Some of the larger pieces of debt being offered are Cablevision's extended term loan B-3, Dollar General's term loan B-1, Michaels Stores' extended term loan B-3, ServiceMaster's closing date loan, Sungard Data Systems Inc.'s extended U.S. term loan B, TXU's non-extended term loan and Univision's extended first-lien term loan.

Hyland tweaks deal

Back in the primary, Hyland Software, a content-management solutions provider for middle-market enterprises, increased its seven-year first-lien term loan to $360 million from $320 million and lowered pricing to Libor plus 450 bps from talk of Libor plus 475 bps to 500 bps, according to a source.

As before, the first-lien term loan has a 1.25% Libor floor, 101 soft call protection for one year and an original issue discount of 99 on new money. Rollover commitments are offered the debt at par.

In addition, the company eliminated plans for a $235 million 71/2-year second-lien term loan that was talked at Libor plus 875 bps to 900 bps with a 1.25% Libor floor and a discount of 981/2, and included call protection of 103 in year one, 102 in year two and 101 in year three.

Commitments for the now $380 million credit facility, which still provides for a $20 million five-year revolver, are due at 5 p.m. ET on Monday.

Credit Suisse Securities (USA) LLC and Jefferies & Co. are leading the deal that will fund a dividend and refinance existing debt.

PTC restructures

PTC Alliance reduced its first-lien term loan to $150 million from $225 million, lifted pricing to Libor plus 775 bps from Libor plus 675 bps, shortened the maturity to five years from six years, reduced the accordion to $50 million from $75 million and added a step-up to 75% under the excess cash flow sweep, according to a market source.

The 1.25% Libor floor, original issue discount of 97 and soft call protection of 102 in year one and 101 in year two were left unchanged.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to fund an equity tender offer to certain existing equity holders.

Commitments are due on Oct. 23, the source continued.

PTC is a Wexford, Pa.-based manufacturer and marketer of welded and cold-drawn mechanical steel tubing and tubular shapes, fabricated parts, precision components and chrome-plated rod.

StandardAero ups loan

StandardAero increased its six-year term loan B (B2/B-) to $545 million from $520 million, while leaving pricing at Libor plus 500 bps with a 1.25% Libor floor and an original issue discount of 98, according to a market source. There is still 101 soft call protection for one year.

The $695 million senior secured deal also includes a $150 million five-year ABL revolver.

Lead banks, Barclays, Bank of America Merrill Lynch and Goldman Sachs & Co., are seeking recommitments by noon ET on Wednesday, the source remarked.

Proceeds from the term loan B and $40 million of revolver borrowings will be used to refinance existing debt and for general corporate purposes.

Senior secured leverage is 4 times, gross total leverage is 6.3 times and net total leverage is 5.7 times.

StandardAero is a Tempe, Ariz.-based company that specializes in engine maintenance, repair and overhaul, and nose-to-tail services, for business and general aviation, air transport and military aircraft.

KeyPoint details emerge

KeyPoint Government Solutions came out with tranching and pricing details on its $160 million credit facility as a bank meeting has been scheduled for Friday to launch the transaction, according to a market source.

The facility consists of a $10 million five-year revolver and a $150 million six-year term loan B, both talked at Libor plus 550 bps to 600 bps, the source said. The revolver has no Libor floor and a 75 bps undrawn fee, and the term loan has a 1.25% Libor floor and an original issue discount of 99.

UBS Securities LLC is leading the deal that will be used to refinance existing debt and fund a dividend.

Commitments are due on Nov. 2.

KeyPoint is a Loveland, Colo.-based investigative and risk-mitigation services company.

EquiPower sets talk

In more primary happenings, EquiPower held a call in the afternoon, launching its $683 million first-lien term loan with talk of Libor plus 425 bps to 450 bps with a 1.25% Libor floor, a par offer price and 101 soft call protection for one year, according to a market source.

Commitments are due on Oct. 23, the source said.

Barclays Capital Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co. and Morgan Stanley Senior Funding Inc. are leading the deal that will reprice an existing term loan from Libor plus 500 bps with a 1.5% Libor floor.

Existing lenders will get paid down at 101 due to current call protection.

EquiPower is a Hartford, Conn.-based competitive power generation company that is owned by Energy Capital Partners LLC.

Penn National readies loans

Penn National Gaming scheduled a call for Wednesday to launch $1 billion in new term loans, according to a market source.

The debt consists of a $400 million term loan A talked at Libor plus 175 basis points and a $600 million term loan B talked at Libor plus 275 bps with a 1% Libor floor, the source said. Original issue discounts are still to be determined.

Bank of America Merrill Lynch, Wells Fargo Securities LLC, Commerzbank, Fifth Third Securities Inc., RBS Securities Inc. and UBS Securities LLC are leading the deal that will fund the roughly $610 million acquisition of Harrah's St. Louis gaming and lodging facility from Caesars Entertainment.

Closing is expected this year, subject to customary conditions and regulatory approvals.

Penn National is a Wyomissing, Pa.-based owner and operator of gaming and racing facilities with a focus on slot machine entertainment.

Einstein Noah plans recap

Einstein Noah Restaurant Group will host a bank meeting at 10 a.m. ET on Wednesday to launch a $265 million senior secured credit facility that will be used to refinance existing debt and fund a dividend, according to a company presentation.

The facility consists of a $240 million six-year first-lien term loan that has 101 soft call protection for one year and a $25 million five-year revolver.

Credit Suisse Securities (USA) LLC and KeyBanc Capital Markets Inc. are the lead banks on the deal, with Credit Suisse the agent on the term loan and KeyBanc the agent on the revolver.

Commitments are due on Oct. 31 and closing is targeted for Nov. 5.

Einstein Noah, a Lakewood, Colo.-based operator of bagel bakery cafes, will have pro forma leverage of around 4.5 times LTM July 3 adjusted EBITDA of $53 million.

Warner coming soon

Warner Music Group scheduled a bank meeting for 11 a.m. ET on Wednesday to launch a $630 million six-year first-lien covenant-light term loan that has 101 soft call protection for one year, according to a market source.

Credit Suisse Securities (USA) LLC and UBS Securities LLC are the lead banks on the deal.

Proceeds will be used to refinance existing debt.

Warner Music is a New York-based music content company.

Triple Point repricing

Triple Point Technology set a call for 2 p.m. ET on Wednesday to launch a $175 million first-lien covenant-light term loan due Oct. 28, 2017 that is being talked at Libor plus 475 bps to 500 bps with a 1.25% Libor floor, a par offer price and 101 repricing protection for one year, according to a market source.

The loan will be used to reprice an existing term loan due Oct. 28, 2017 that is priced at Libor plus 650 bps with a 1.5% Libor floor and remove covenants. Also, proceeds will fund general corporate purposes.

Lead bank, Credit Suisse Securities (USA) LLC, will be asking for commitments by Oct. 24, the source remarked.

Triple Point is a Westport, Conn.-based provider of software for end-to-end commodity management.

Mercury joins calendar

Mercury Payment will hold a call on Wednesday afternoon to launch a $100 million add-on term loan due July 1, 2017 that is talked at Libor plus 400 bps with a 1.5% Libor floor, an original issue discount that is still to be determined and 101 soft call protection for one year, according to sources.

The spread and floor match the existing term loan, which will also get the new call protection.

Deutsche Bank Securities Inc., Barclays and Credit Suisse Securities (USA) LLC are leading the deal.

Proceeds will be used to fund a dividend.

Mercury Payment Systems is a Durango, Colo.-based payment processing company that partners with point-of-sale developers and resellers.

Tallgrass fills out

In other news, Tallgrass Energy Partners LP's $875 million six-year term loan has seen good demand from investors, leading to oversubscription of the tranche by Tuesday's 5 p.m. ET commitment deadline, according to a market source.

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

The company's $1.275 billion senior secured credit facility (Ba3/BB+) also includes a $250 million delayed-draw six-year term loan and a $150 million five-year revolver, both talked at Libor plus 400 bps with a 50 bps undrawn fee and a discount of 99.

Barclays is the bookrunner on the deal and a joint lead arranger with Bank of America Merrill Lynch, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and RBC Capital Markets LLC.

Tallgrass funding acquisition

Proceeds from Tallgrass' credit facility will be used to fund the purchase of assets from Kinder Morgan Energy Partners LP for a total cash consideration of about $1.8 billion and for working capital purposes.

The assets being acquired include Kinder Morgan Interstate Gas Transmission, Trailblazer Pipeline Co., the Casper-Douglas natural gas processing and West Frenchie Draw treating facilities in Wyoming and Kinder Morgan's 50% interest in the Rockies Express Pipeline.

Closing is expected in the fourth quarter, subject to Federal Trade Commission approval.

Senior secured and total leverage is 3.2 times, and equity to total capitalization is about 53%.

Tallgrass, a midstream gas pipeline system, is owned by management, Kelso & Co. and a limited group of investors led by the Energy & Minerals Group, including Magnetar Capital.

iStar closes

iStar Financial Inc. completed its $1.82 billion five-year term loan B (B1/BB-) that is priced at Libor plus 450 bps with a 1.25% Libor floor and was sold at a discount of 99, according to a news release. The debt has 101 soft call protection for one year.

J.P. Morgan Securities LLC, Barclays and Bank of America Merrill Lynch led the deal that was used to refinance the entire remaining balance of the company's 2011 senior secured credit facility, which is comprised of two tranches scheduled to mature in 2013 and 2014.

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

Centerplate wraps

The buyout of Centerplate Inc. by Olympus Partners from Kohlberg & Co. LLC has been completed, according to a news release.

For the transaction, Centerplate got a new $352 million credit facility (B2/B+) that consists of a $277 million term loan and a $75 million revolver, both priced at Libor plus 450 bps with a 1.25% Libor floor, and sold at a discount of 991/2. The debt has a 25 bps step-down if corporate credit ratings are B2/B with stable outlooks.

During syndication, the term loan was upsized from $267 million, pricing was reduced from Libor plus 500 bps, the step-down was added and the discount was tightened from 99.

GE Capital Markets, PNC Capital Markets LLC and Rabo Securities USA Inc. led the deal.

Centerplate is a Stamford, Conn.-based provider of food and beverage concessions, high-end catering and merchandise services in sports facilities, convention centers and other entertainment facilities.

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