Wendy's, Sprouts; Cequel, Wilsonart, Essential Power break; CSC, Playboy, Plaze, Waupaca revised

By Sara Rosenberg

New York, April 12 - Wendy's International's credit facility emerged in the secondary market on Friday with the term loan B seen above par, and Sprouts Farmers Markets LLC, Cequel Communications LLC, Wilsonart LLC, Essential Power LLC broke too.

Moving to the primary, CSC Holdings LLC lowered pricing on its term loan B, and Playboy Enterprises Inc. lifted the size of its term loan and trimmed the Libor floor on its entire credit facility.

In addition, Plaze Inc. upsized its term loan and Waupaca Foundry Inc. raised the coupon on its repricing transaction so as to avoid having to extend the soft call protection.

Also, Lineage Logistics LLC released price talk on its term loan as the deal was presented to lenders in the morning and SourceHOV joined the forward calendar.

Wendy's starts trading

Wendy's International's credit facility hit the secondary market on Friday, with the $765 million term loan B quoted at par 3/8 bid, par 7/ 8offered, according to a trader.

Pricing on the term loan B is Libor plus 250 basis points with a 0.75% Libor floor, and it was issued at par. There is 101 soft call protection for six months.

In addition to the term loan B, the company is getting a $350 million five-year term loan A that is priced at Libor plus 225 bps. The A loan upfront fee was 37.5 bps.

Recently, the term loan B was downsized from $815 million, the floor was reduced from 1% and the offer price firmed at the tight end of the 99 7/8 to par talk. Also, the term loan A was upsized from $300 million and pricing was lowered from Libor plus 250 bps.

Bank of America Merrill Lynch and Wells Fargo Securities LLC are leading the deal (B1/BB-) that will refinance an existing roughly $1.1 billion term loan B priced at Libor plus 350 bps with a 1.25% Libor floor.

Wendy's is a Dublin, Ohio-based fast food chain.

Sprouts bid up

Sprouts Farmers Markets' credit facility was another deal to begin trading, with the $700 million seven-year first-lien covenant-light term loan (B2/B+) quoted at par bid, a market source said.

Pricing on the term loan is Libor plus 350 bps with a 50 bps step-down upon completion of an initial public offering of stock and leverage is below 2.75 times or ratings are B1/B+. There is a 1% Libor floor and 101 repricing protection for one year, and the tranches was issued at 991/2.

During syndication, the term loan was upsized from $625 million, pricing was decreased from talk of Libor plus 375 bps to 400 bps, the step-down was increased from 25 bps and the discount was tightened from 99.

The $760 million credit facility also provides for a $60 million five-year revolver.

Credit Suisse Securities (USA) LLC and Goldman Sachs & Co. are leading the deal that will be used to fund a dividend and to refinance debt.

Sprouts is a Phoenix-based grocer that operates in the farmers market specialty segment of the retail food industry.

Cequel hits secondary

Cequel Communications' $2,478,000,000 first-lien term loan due February 2019 freed up for trading as well, with levels quoted at par ½ bid, 101 offered, a market source said.

Pricing on the term loan is Libor plus 275 bps with a 0.75% Libor floor, and it was issued at par. There is 101 soft call protection for six months.

Recently, the loan was upsized from a revised amount of $2,383,000,000 and, prior to that, from an initial amount at launch of $2,178,000,000.

Proceeds from the original amount will be used to reprice an existing term loan from Libor plus 300 bps with a 1% Libor floor, and the additional funds raised through the upsizings will be used to repurchase some of the company's 8 5/8% senior notes

Credit Suisse Securities (USA) LLC, Goldman Sachs & Co., J.P. Morgan Securities LLC, Bank of America Merrill Lynch and RBC Capital Markets are leading the deal for the St. Louis-based cable operator.

Wilsonart tops par

Wilsonart's $725 million covenant-light term loan also began trading, with levels quoted at par ½ bid, par ¾ offered, according to a market source.

Pricing on the loan is Libor plus 300 bps, after firming recently at the tight end of the Libor plus 300 bps to 325 bps talk. There is a 1% Libor floor and 101 soft call protection for six months, and the debt was issued at par.

Deutsche Bank Securities Inc. is leading the deal that is being used to reprice an existing $725 million term loan from Libor plus 425 bps with a 1.25% Libor floor.

Wilsonart is a Temple, Texas-based maker of decorative surfaces products.

Essential Power breaks

Essential Power's roughly $549 million senior secured term loan due Aug. 8, 2019 emerged in the secondary market too, with levels quoted at par ½ bid, 101½ offered, according to a market source.

Pricing on the term loan is Libor plus 325 bps with a 1% Libor floor, and it was issued at par. There is 101 soft call protection for one year.

During syndication, pricing on the loan was reduced from Libor plus 350 bps and the call protection was extended from six months.

Barclays is leading the deal that will be used to refinance an existing term loan.

Essential Power is an Iselin, N.J.-based wholesale power generation and marketing company.

CSC lowers coupon

Shifting to the primary market, CSC Holdings cut pricing on its $2.35 billion seven-year term loan B to Libor plus 250 bps from Libor plus 275 bps, according to a market source, who said the tranche continues to have no Libor floor, an original issue discount of 99½ and 101 soft call protection for six months.

The pricing flex came on the heels of the company's recent decision to upsize the term loan B from $1.9 billion and eliminate plans for a $500 million high-yield bond offering.

In addition to the term loan B, the company's $4,785,000,000 credit facility (Baa3/BBB-) includes a $1.5 billion revolver and a $935 million term loan A, both priced at Libor plus 200 bps.

Commitments were due on Friday, the source added.

Bank of America Merrill Lynch, Barclays, Credit Agricole Securities (USA) Inc., J.P. Morgan Securities LLC and Scotia Capital (USA) Inc. are leading the deal that will refinance existing bank debt.

CSC Holdings is a subsidiary of Cablevision Systems, a Bethpage, N.Y.-based media and telecommunications company.

Playboy tweaks deal

Playboy Enterprises upsized its term loan to $185 million from $175 million and cut the Libor floor on the tranche, as well as on a $10 million revolver, to 1.25% from 1.5%, according to a market source.

As before, the entire credit facility is priced at Libor plus 600 bps, and the term loan is offered at an original issue discount of 981/2.

The funds raised from the upsizing will be used for general corporate purposes, and the remaining amount will be used to reprice an existing revolver and term loan from Libor plus 650 bps with a 1.75% Libor floor.

Jefferies Finance LLC is leading the now $195 million credit facility (B) that is expected to allocate early in the week of April 15.

Playboy is a Chicago-based media and lifestyle company.

Plaze upsizes

Plaze lifted its term loan to $181.9 million, of which $18.9 million is Canadian, from $179 million, of which $19.5 million was Canadian, according to a market source.

Pricing on the term loan, as well as on a $25 million revolver, $5 million of which is Canadian, and a $68 million delayed-draw term loan, remained at Libor plus 375 bps with a 1.25% Libor floor and an original issue discount of 99.

GE Capital Markets is leading the now $274.9 million credit facility (B) that will be used to refinance existing debt.

Allocations are expected during the week of April 15, the source added.

Plaze is a St. Clair, Mo.-based full-service contract aerosol and liquid packager.

Waupaca raises pricing

Waupaca Foundry revised its term loan repricing request to Libor plus 350 bps from Libor plus 325 bps, while keeping the 1% Libor floor, par offer price and 101 soft call protection for six months intact, according to a market source.

The flex was done because investors wanted the call protection extended to one year. The company opted for a higher coupon in order to preserve the six months call protection, the source said.

Through the repricing, term loan pricing is being reduced from a current level of Libor plus 450 bps with a 1.25% Libor floor.

GE Capital Markets is leading the deal that is expected to allocate on Monday.

Waupaca Foundry is a Waupaca, Wis.-based producer of gray and ductile iron castings for the automotive, truck, agriculture, construction, hydraulics and commercial vehicle markets.

Lineage sets talk

In more primary news, Lineage Logistics held a bank meeting on Friday morning to kick off syndication on its $220 million six-year first-lien term loan (B), and with the event, price talk was announced at Libor plus 400 bps with a 1% Libor floor and an original issue discount of 99, according to a market source.

As previously reported, the loan has 101 repricing protection for one year.

Lead banks, Credit Suisse Securities (USA) LLC, Goldman Sachs & Co., SunTrust Robinson Humphrey Inc. and KKR Capital Markets, are asking for commitments by April 26.

Proceeds will be used to refinance existing debt, to fund acquisitions and for general corporate purposes.

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

24 Hour launches

24 Hour Fitness Worldwide Inc. launched with a call its $585 million term loan B due April 2016 at previously outlined 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.

J.P. Morgan Securities LLC is the lead bank on the deal that will be used to reprice an existing term loan.

24 Hour Fitness is a San Ramon, Calif.-based fitness-club operator.

SourceHOV readies deal

SourceHOV set a bank meeting for 2 p.m. ET in New York on Monday to launch a $400 million first-lien term loan B (B1) and a $110 million second-lien term loan (Caa1), according to sources.

Morgan Stanley Senior Funding Inc., Credit Suisse Securities (USA) LLC and UBS Securities LLC are leading the $510 million deal.

Proceeds will be used to help fund CVCI Private Equity's purchase of ownership interests in the company that are owned by Apollo Global Management LLC and certain minority holders.

SourceHOV is a Dallas-based provider of business process outsourcing and knowledge process outsourcing services.

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