CTI Foods, Harvey Gulf free up; Formula One revises deal; Nine Entertainment moves deadline

By Sara Rosenberg

New York, June 14 - CTI Foods Holding Co. LLC's credit facility made its way into the secondary market on Friday, with first- and second-lien term loan levels seen above their original issue discount prices, and Harvey Gulf International Marine LLC broke as well.

Over in the primary, Formula One raised pricing on its U.S. term loan tranche and extended the call protection, Nine Entertainment Group Pty Ltd. accelerated the commitment deadline on its term loan and Walter Energy Inc. pulled its refinancing credit facility from the market.

Also, Jacobson Cos. (JHCI Acquisition Inc.), Ikaria Acquisition Inc., GenesisCare, Triple Point Group Holdings Inc., Genesys Telecommunications Laboratories Inc. and Air Canada emerged with new deal plans.

CTI Foods breaks

CTI Foods' credit facility freed up for trading on Friday, with the $345 million seven-year first-lien term loan B (B2/B) quoted at par 1/8 bid, and the $140 million eight-year second-lien term loan (Caa1/CCC+) quoted at 99½ bid, according to a market source.

Pricing on the first-lien term loan is Libor plus 350 basis points with a 1% Libor floor, and it was sold at an original issue discount of 991/2. There is 101 soft call protection for six months that was added during syndication.

The second-lien term loan is priced at Libor plus 725 bps with a 1% Libor floor and was sold at a discount of 981/2, after widening recently from 99. This tranche has hard call protection of 102 in year one and 101 in year two.

Other recent changes to the deal included increasing the excess cash flow sweep, making the incremental term loan test more restrictive and removing the MFN sunset provision.

CTI getting revolver

In addition to the term loans, CTI Foods' $585 million credit facility provides for a $100 million ABL revolver.

Morgan Stanley Senior Funding Inc., Goldman Sachs Banks USA, Barclays and Sumitomo are leading the deal that will help fund the buyout of the company by Thomas H. Lee Partners LP and Goldman Sachs & Co. from Littlejohn & Co. LLC.

Closing is expected this quarter.

CTI is a Wilder, Idaho-based provider of food products to national chain restaurants.

Harvey Gulf tops OID

Harvey Gulf's bank debt hit the secondary as well, with the $600 million seven-year covenant-light term loan B seen at 99 bid, 99½ offered, according to a trader.

Pricing on the term loan B is Libor plus 450 bps with a 1% Libor floor, and it was sold at a discount of 981/2. There is call protection of 102 in year one and 101 in year two.

The company's $750 million deal (B1/B) also includes a $150 million five-year term loan A priced at Libor plus 400 bps with a 1% Libor floor.

During syndication, the term loan B was downsized from $750 million as the term loan A was added to the capital structure, pricing was increased from talk of Libor plus 325 bps to 350 bps, the discount firmed at the low end of the revised 98 to 98½ talk and wide of initial guidance of 99 to 991/2, and the call protection was revised from just 101 soft call for one year.

Bank of America Merrill Lynch is leading the deal that is being used to refinance existing debt and to fund the acquisition of vessels.

Harvey Gulf is a New Orleans-based marine transportation company.

Waupaca holds steady

Also in trading, Waupaca Foundry Inc.'s $125 million add-on term loan (B2/B+) was quoted at 99½ bid, par offered, after breaking in the same context during the previous session, according to a trader.

The add-on term loan is priced at Libor plus 350 bps with a 1% Libor floor, in line with existing term loan pricing, and was sold at an original issue discount of 991/2, after widening from talk of 99¾ to par. There is 101 soft call protection for six months.

GE Capital Markets is leading the deal that is being used to fund a dividend.

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.

BWIC announced

A roughly $37 million Bid-Wanted-In-Competition surfaced, with bids due at 10:30 a.m. ET on Tuesday, according to a trader.

Some of the larger pieces of debt include MCC Iowa LLC's term loan D-1, Oxbow Carbon LLC's term loan B-1 and Scitor Corp.'s term loan.

There are about 39 loan issuers in the portfolio, the trader added.

Formula One tweaks deal

Moving to the primary, Formula One raised pricing on the U.S. portion of its $2.18 billion term loan due April 2019 to Libor plus 350 basis points from Libor plus 325 bps, and extended the 101 soft call protection on the entire deal to one year from six months, according to a market source.

As before, the $50 million equivalent euro tranche of the term loan is priced at Euribor plus 375 bps, both tranches have a 1% floor, rollover commitments are offered at par, and new money commitments are offered at an original issue discount of 991/2.

Recommitments were due at noon ET on Friday and allocations are expected to go out early next week, the source remarked.

Goldman Sachs Bank USA, UBS Securities LLC and RBS Securities Inc. are leading the deal that will be used to reprice an existing U.S. term loan from Libor plus 475 bps with a 1% Libor floor and an existing euro term loan from Euribor plus 475 bps with a 1% floor.

Existing lenders will be paid out at 101 with the repricing.

Formula One is the organizer of the Formula One World Championship (F1) and owner of the commercial rights to F1 motorsports racing.

Nine shutting early

Nine Entertainment Group revised the commitment deadline on its U.S. equivalent of an A$100 million senior secured term loan due Feb. 5, 2020 to 5 p.m. ET on Friday from Monday, according to a market source.

The term loan is talked at Libor plus 275 bps with a 0.75% Libor floor and an original issue discount of 993/4.

UBS Securities LLC, Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc. and Nomura are the lead banks on the deal that will be used for general corporate purposes and to fund the acquisition of WIN Adelaide.

Nine Entertainment is an Australian diversified media and entertainment group.

Walter Energy shelved

Walter Energy withdrew from market its proposed $1.55 billion senior secured credit facility (Ba3/BB-) as a result of market conditions, according to a market source.

The facility consisted of a $350 million five-year revolver, and a $1.2 billion six-year term loan B talked at Libor plus 475 bps to 500 bps with a 1% Libor floor,, an original issue discount of 99 to 99½ and 101 soft call protection for six months.

Morgan Stanley Senior Funding Inc. was leading the deal that was going to be used to refinance existing term loans.

Walter Energy is a Birmingham, Ala.-based pure-play metallurgical coal producer.

Jacobson joins calendar

In more new deal happenings, Jacobson surfaced with plans to hold a bank meeting at 10 a.m. ET in New York on Tuesday to launch a $410 million credit facility that will be used to refinance existing debt, according to a market source.

The facility consists of a $25 million revolver, a $250 million first-lien term loan talked at Libor plus 550 bps to 575 bps with a 1.25% Libor floor and an original issue discount of 98½ to 99, and a $135 million second-lien term loan talked at Libor plus 950 bps with a 1.25% Libor floor and a discount of 98 to 981/2, the source said.

The first-lien loan has 101 call protection for one year, and the second-lien loan has call protection of 103 in year one, 102 in year two and 101 in year three.

J.P. Morgan Securities LLC is leading the deal for the Des Moines, Iowa-based third party logistics company.

Ikaria on deck

Ikaria Acquisition will host a bank meeting at 2 p.m. ET in New York on Monday to launch $850 million in new term loans, split between a $550 million six-year first-lien tranche and a $300 million seven-year second-lien tranche, according to a market source.

The first-lien term loan is talked at Libor plus 525 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, and the second-lien term loan is talked at Libor plus 925 bps with a 1% Libor floor, a discount of 98½ and call protection of 103 in year one, 102 in year two and 101 in year three, the source said.

Credit Suisse Securities (USA) LLC is leading the deal.

Proceeds will be used by the Hampton, N.J.-based biotherapeutics company in the critical care market to fund a dividend, refinance existing debt and pre-fund research and development.

Commitments are due on June 28, the source added.

GenesisCare readies loan

GenesisCare scheduled a bank meeting for 10:30 a.m. ET in New York on Tuesday to launch a $245 million seven-year term loan B that has 101 soft call protection for six months, according to a market source.

The company's new credit facility also includes a A$30 million revolver, the source said.

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

GenesisCare is a Sydney, Australia-based provider of cardiology, radiation oncology and sleep treatments.

Triple Point coming soon

Triple Point Group set a bank meeting for 3 p.m. ET in New York on Monday to launch a Credit Suisse Securities (USA) LLC-led $525 million credit facility, according to a market source.

The facility consists of a $40 million revolver, a $320 million seven-year first-lien covenant-light term loan and a $165 million eight-year second-lien covenant-light term loan, the source remarked, adding that commitments will be due on June 28.

Proceeds will be used to help fund the buyout of the company by Ion Investment Group.

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

Genesys deal emerges

Genesys Telecommunications scheduled a call for Monday to launch a $100 million incremental term loan, according to a market source.

Goldman Sachs Bank USA, J.P. Morgan Securities LLC, Citigroup Global Markets Inc. and RBC Capital Markets are leading the loan that will be used to fund the acquisition of SoundBite Communications Inc. for $5 in cash per share.

Closing is expected early in the third quarter.

Genesys is a Daly City, Calif.-based provider of customer engagement and contact center services. SoundBite is a Bedford, Mass.-based provider of cloud-based proactive collections, payments, and mobile marketing applications, as well as proactive customer service services to enterprises.

Air Canada plans launch

Air Canada will host a bank meeting at 10 a.m. ET in New York on Tuesday to launch a new credit facility, according to a market source.

Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc. and TD Securities (USA) LLC are leading the deal.

Further details on the transaction are not yet available, the source added.

Air Canada is Saint-Laurent, Quebec-based full-service airline.

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