Revlon frees to trade above OID; PrimeLine changes emerge; UFC, WCA Waste release price talk

By Sara Rosenberg

New York, July 22 – Revlon Consumer Products Corp.’s credit facility emerged in the secondary market on Friday, with the term loan B seen trading above its original issue discount.

Meanwhile, in the primary market, PrimeLine Utility Services LLC increased the size of its well oversubscribed add-on term loan B and modified the original issue discount.

Also, UFC and WCA Waste Corp. came out with price talk on their deals with launch, and Truck Hero Inc. joined the near-term new issue calendar.

Revlon starts trading

Revlon’s credit facility freed to trade on Friday, with the $1.8 billion seven-year covenant-light term loan B (Ba3/B+) quoted at 99¾ bid, 100¼ offered, according to a trader.

Pricing on the term loan B is Libor plus 350 basis points with a 0.75% Libor floor, and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months and a ticking fee of half the spread from days 31 to 75 and the full spread thereafter.

On Thursday, pricing on the term loan B was lowered from Libor plus 400 bps, and the discount was tightened from 99.

The company’s $2.2 billion senior secured credit facility also includes a $400 million asset-based revolver.

Citigroup Global Markets Inc., Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Macquarie Capital (USA) Inc. and Barclays are leading the deal.

Revlon funding acquisition

Proceeds from Revlon’s credit facility and $450 million of senior notes will be used to help fund the acquisition of Elizabeth Arden Inc. for $14.00 per share in cash, representing an enterprise value of around $870 million, to refinance Elizabeth Arden’s existing debt and to refinance Revlon’s existing term loan and revolver.

The notes were upsized from $400 million, reducing the amount of cash on hand that is being used for the acquisition.

Closing is expected by year-end, subject to approval by Elizabeth Arden’s shareholders, regulatory clearances and customary conditions.

Revlon is a New York-based beauty company. Elizabeth Arden is a prestige beauty products company based in Pembroke Pines, Fla.

PrimeLine reworked

Moving to the primary market, PrimeLine Utility Services raised its add-on term loan B to $160 million from $140 million and modified the original issue discount to 99.5 from 99, according to a market source.

As before, the add-on term loan is priced at Libor plus 550 bps with a 1% Libor floor, in line with existing term loan B pricing, and the debt is getting 101 soft call protection for six months.

BNP Paribas Securities Corp. is leading the deal that will be used to fund acquisitions.

The source explained that there will be less equity used and more cash on the balance sheet at closing due to the term loan B upsizing.

PrimeLine Utility Services is a Seattle-based provider of end-to-end infrastructure solutions to electric, gas and telecommunications customers.

UFC sets talk

UFC held its bank meeting on Friday, launching its $1.3 billion seven-year senior secured covenant-light term loan B (B1/B+) with talk of Libor plus 450 bps to 475 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, a market source remarked.

Commitments are due at noon ET on Aug. 4, the source added.

Goldman Sachs & Co., Deutsche Bank Securities Inc., Barclays, Credit Suisse Securities (USA) LLC, KKR Capital Markets LLC, Citigroup Global Markets Inc. and UBS Investment Bank are leading the deal that will be used with $500 million of unsecured notes to help fund the acquisition of the company by WME | IMG.

Under the acquisition agreement, Silver Lake Partners and KKR will join WME | IMG as new strategic investors, along with MSD Capital LP and MSD Partners LP, which will provide preferred equity financing.

Closing is subject to customary conditions.

UFC is a Las Vegas-based sports brand and pay-per-view event provider. WME | IMG is an entertainment, sports and fashion company.

WCA reveals guidance

WCA Waste released talk of Libor plus 300 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months on its $300 million term loan B that launched with a bank meeting during the session, according to a market source.

The company’s up to $425 million credit facility also includes an up to $125 million revolver.

Commitments are due on Aug. 5, the source said.

SunTrust Robinson Humphrey Inc. is leading the deal that will be used to refinance existing bank debt.

WCA is a Houston-based vertically integrated non-hazardous solid waste management company.

Truck Hero on deck

Truck Hero set a bank meeting for Tuesday to launch a $525 million seven-year term loan B that is talked at Libor plus 475 bps to 500 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, a market source said.

Of the total term loan amount, $115 million is delayed-draw with a ticking fee of the full spread from days 31 to 60 and the full spread plus the floor thereafter, the source continued.

J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Antares Capital, Ares, Citizens Bank, KeyBanc Capital Markets, Raymond James and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to refinance existing debt and to fund an acquisition.

Truck Hero is an Ann Arbor, Mich.-based designer and manufacturer of accessories for pickup trucks.

Zayo wraps

In other news, Zayo Group LLC completed its $361 million covenant-light term loan due May 6, 2021, according to a news release.

Pricing on the loan is Libor plus 275 bps with a 1% Libor floor, and it was issued at par.

Proceeds were used to reprice the company’s existing $361 million covenant-light term loan B-2 due May 6, 2021 from Libor plus 350 bps with a 1% Libor floor.

The repriced term loan was made fungible with the company’s existing term loan B-1 due May 6, 2021 priced at Libor plus 275 bps with a 1% Libor floor.

Barclays, Morgan Stanley Senior Funding Inc., Goldman Sachs & Co. and RBC Capital Markets LLC were the joint lead arrangers on the deal and joint bookrunners with Citigroup Global Markets Inc., J.P. Morgan Securities LLC and SunTrust Robinson Humphrey Inc.

Zayo is a Boulder, Colo.-based provider of fiber-based bandwidth infrastructure and network-neutral colocation and interconnection services.

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