Securus frees up; Data Device reworks deal; Wolverine Worldwide, Zayo, NCI set launches

By Sara Rosenberg

New York, June 4 - Securus Technologies' credit facility allocated and broke for trading on Monday, with the first-lien term loan bid right around its original issue discount and the second-lien term loan seen above its discount price.

Over in the primary, Data Device Corp. came out with some changes to its credit facility, including upsizing its first-lien term loan, downsizing its second-lien term loan and increasing second-lien pricing.

Also, Wolverine Worldwide Inc., Zayo Group LLC and NCI Building Systems Inc. nailed down timing on the launch of their new loans, and structural and pricing details on Waupaca Foundry Inc.'s (ThyssenKrupp Waupaca Inc.) upcoming credit facility surfaced.

Furthermore, P.F. Chang's China Bistro Inc. and Zuffa LLC released price talk as both deals were launched to investors during the session, and pricing guidance on Henry Co.'s newly announced loan was revealed.

Securus starts trading

Securus Technologies' credit facility hit the secondary market on Monday, with the $291 million first-lien term loan quoted at 99 bid, 99¾ offered and the $105 million second-lien term loan quoted at 98¼ bid, 98¾ offered, according to a trader.

Pricing on the first-lien term loan is Libor plus 525 basis points, after firming recently at the tight end of the Libor plus 525 bps to 550 bps talk. There is a 1.25% Libor floor as well as 101 soft call protection for one year, and the debt was sold at an original issue discount of 99.

The second-lien term loan, meanwhile, is priced at Libor plus 900 bps with a 1.75% Libor floor and was sold at an original issue discount of 98. There is call protection of 103 in year one, 102 in year two and 101 in year three.

Securus getting revolver

In addition to the term loans, Securus Technologies' $436 million credit facility includes a $40 million revolver.

BNP Paribas Securities Corp. is the lead bank on the deal.

Proceeds will be used to refinance existing debt and fund a dividend.

Securus Technologies is a Dallas-based provider of telecommunications products and services for the corrections marketplace.

Data Device retranches

Moving to the primary, Data Device made some revisions to its credit facility, such as lifting its six-year first-lien delayed-draw term loan to $300 million from $240 million, trimming its seven-year second-lien delayed-draw term loan to $80 million from $120 million and raising second-lien pricing to Libor plus 1,000 bps from Libor plus 950 bps, a source said.

As before, the first-lien term loan, as well as a $30 million five-year revolver, are priced at Libor plus 600 basis points, and all tranches have a 1.5% Libor floor and an original issue discount of 98.

Also, the first-lien loan still has 101 repricing protection for one year, and call protection on the second-lien loan remained at 103 in year one, 102 in year two and 101 in year three.

Commitments towards the Credit Suisse Securities (USA) LLC-led deal were due on Monday and it was fully subscribed with the changes, the source added. Allocations are expected this week.

Proceeds will be used to help fund Behrman Capital PEP's buyout of the Bohemia, N.Y.-based supplier of defense electronics.

Wolverine timing emerges

Wolverine Worldwide has set a bank meeting for 12:30 p.m. ET on Wednesday to launch its previously announced $1.1 billion senior secured credit facility (Ba2/BB), according to a market source.

As expected, based on filings with the Securities and Exchange Commission, the deal is comprised of a $200 million five-year revolver, a $400 million five-year term loan A and a $500 million seven-year term loan B, the source said.

J.P. Morgan Securities LLC and Wells Fargo Securities LLC are leading the facility that will be used to help fund the $1.23 billion purchase of Collective Brands Inc.'s Performance + Lifestyle Group, which includes the wholesale and retail operations of the Sperry Top-Sider, Saucony, Stride Rite and Keds brands, and will continue to operate out of Lexington, Mass.

Closing is expected late in the third quarter or early in the fourth quarter, subject to customary conditions, including clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and Collective Brands' shareholder approval.

Wolverine plans notes

Wolverine expects that other funds for the transaction will come from $375 million of senior unsecured notes that are backed by a commitment for a $375 million senior unsecured bridge loan.

Recently, Collective Brands agreed to be acquired for $21.75 per share in cash, or about $2 billion including debt assumption, by Wolverine, Blum Capital Partners and Golden Gate Capital.

Wolverine is getting the Performance + Lifestyle Group, while Blum Capital and Golden Gate are getting the operations of Payless ShoeSource and Collective Licensing International, which together will operate as a stand-alone entity. Payless will continue to have headquarters in Topeka, Kan., and Collective Licensing in Englewood, Colo.

For its part, Blum Capital and Golden Gate Capital have received a commitment for a $250 million senior secured asset-based revolver from Wells Fargo Capital Finance for the buyout.

Wolverine is a Rockford, Mich.-based marketer of branded casual, active lifestyle, work, outdoor sport and uniform footwear and apparel. Collective Brands is a Topeka, Kan.-based footwear company.

Zayo discloses launch date

Zayo Group will be holding a bank meeting on Wednesday in New York as well, with its $1.75 billion senior secured credit facility launch slated to kick off at 1:30 p.m. ET, according to a market source.

The facility consists of a $250 million revolver and a $1.5 billion term loan, with price talk not yet available.

Proceeds, along with $1.25 billion of bonds, $290 million of equity from GTCR and Charlesbank Capital Partners and cash on hand, will fund the acquisition of AboveNet Inc. for $84 per share in cash and to refinance debt at both companies. The transaction is valued at about $2.2 billion.

The bonds are backed by a commitment for a $750 million senior secured bridge loan and a $500 million senior unsecured bridge loan.

Zayo lead banks

Morgan Stanley Senior Funding Inc. and Barclays Capital Inc. are the lead arrangers on Zayo's term loan and bookrunners with RBC Capital Markets LLC, and the revolver arrangers are SunTrust Robinson Humphrey Inc., Morgan Stanley, Barclays, UBS Securities LLC, RBC and Goldman Sachs & Co.

Closing is expected mid-year, subject to customary approvals.

Zayo is a Louisville, Colo.-based provider of fiber-based bandwidth infrastructure and network-neutral colocation and interconnection services. AboveNet is a White Plains, N.Y.-based provider of high bandwidth connectivity services for businesses and carriers.

NCI coming soon

Also joining the calendar for Wednesday was NCI Building, with its $250 million seven-year first-lien term loan set to launch with a meeting at 10 a.m. ET, according to a market source.

Official talk is not yet available, but in filings with the SEC, the company has said that the loan will be priced at Libor plus 550 bps with a 1.25% Libor floor, and that it will be covenant-light.

There is 101 soft call protection for one year, the source added.

Credit Suisse Securities (USA) LLC, RBC Capital Markets LLC, UBS Securities LLC and Citigroup Global Markets Inc. are leading the deal that will be used with cash on hand to fund the acquisition of Metl-Span LLC for $145 million from BlueScope Steel North America Corp. and to refinance existing bank debt.

NCI amending revolver

NCI has also said in regulatory filings that, as part of the transaction, it will amend its ABL revolver with Wells Fargo Capital Finance LLC to allow for the acquisition and the entrance into the term loan.

In addition, the amendment would increase the size of the revolver to $150 million and extend the maturity to May 2, 2017.

Closing on the acquisition is subject to conditions, including the expiration or termination of any applicable waiting period under the Hart Scott Rodino Act.

NCI is a Houston-based manufacturer of metal products for the nonresidential building industry. Metl-Span is a Lewisville, Texas-based manufacturer and marketer of insulated building panel products.

Waupaca structure revealed

Details on the size and structure on Waupaca Foundry's credit facility came out, with the total deal sized at $485 million - broken down between a $225 million ABL revolver and a $260 million term loan, a market source said.

The term loan is talked at Libor plus 550 bps with a 1.25% Libor floor and an original issue discount of 981/2, and includes 101 soft call protection for one year, the source continued.

GE Capital Markets Inc., RBC Capital Markets and Wells Fargo Capital Finance are leading the deal that will launch with a bank meeting on Tuesday.

Proceeds will help fund the acquisition of ThyssenKrupp Waupaca, which is being renamed Waupaca Foundry, by KPS Capital Partners LP from ThyssenKrupp Budd Co.

Waupaca Foundry, a Waupaca, Wis.-based producer of gray and ductile iron castings for the automotive, truck, agriculture, construction, hydraulics and commercial vehicle markets, expects the transaction to close this quarter, subject to customary conditions.

P.F. Chang's pricing

In more primary happenings, P.F. Chang's China Bistro held its bank meeting on Monday afternoon, at which time price talk on the $280 million seven-year term loan B was announced at Libor plus 500 bps to 550 bps with a 1.25% Libor floor and an original issue discount of 99, for an all-in yield in the range of 6 ½% to 7%, sources said.

The $355 million senior secured credit facility also provides for a $75 million five-year revolver that was upsized from a previously expected amount of $70 million, sources remarked.

Lead banks, Wells Fargo Securities LLC, Deutsche Bank Securities Inc. and Barclays Capital Inc., are seeking commitments by June 19 and closing is targeted for the week of June 25.

P.F. Chang's funding buyout

Proceeds from P.F. Chang's credit facility will be used with $300 million of senior notes and up to $580 million of equity to fund its purchase by Centerbridge Partners LP for $51.50 per share in cash. The transaction is valued at about $1.1 billion.

As a backup for the bonds, the company has received a commitment for a $300 million bridge loan that is priced at Libor plus 825 bps if ratings are B3/B- and Libor plus 850 bps if ratings are lower than B3/B-. There is a 50 bps step-up after three months and every three months thereafter until it hits a specified cap, and a 1.25% Libor floor.

Centerbridge is currently tendering for the shares in an offer that expires on June 12, and the buyout is conditioned on the tender of at least 83% of the shares and approval under the Hart-Scott-Rodino Antitrust Improvements Act.

P.F. Chang's is a Scottsdale, Ariz.-based owner and operator of two restaurant concepts in the Asian niche.

Zuffa sets talk

Zuffa launched through Intralinks a $50 million add-on term loan, and price talk is Libor plus 550 bps with a 2% Libor floor - in line with pricing on the company's loan done in 2009 - and the new debt is being offered at par, according to a market source.

Goldman Sachs & Co. and Deutsche Bank Securities Inc. are the lead banks on the deal that will be used to pay down revolver debt.

The source said that the loan will is anticipated to be circled by existing lenders, and interested parties will likely come back with responses by Tuesday.

Zuffa is the Las Vegas-based company that owns the Ultimate Fighting Championship brand.

Henry floats guidance

Henry Co. came out with price talk of Libor plus 525 bps with a 1.25% Libor floor and an original issue discount of 98½ on its $150 million credit facility that is set to launch with a bank meeting on Wednesday, according to a market source.

The facility consists of a $20 million revolver and a $130 million term loan, the source said.

GE Capital Markets is leading the deal that will be used to help fund the acquisition of the company by Graham Partners.

Henry is an El Segundo, Calif.-based provider of roof coatings, cements, roofing systems, driveway maintenance products and sealants.

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