Kronos, Astoria, Insight Global, Jacobs break; Avaya debt mixed with amend and extend changes

By Sara Rosenberg

New York, Oct. 26 - Kronos Inc., Astoria Generating, Insight Global, Jacobs Entertainment Inc. all freed up for trading on Friday, and Avaya Inc.'s term loan B-3 was weaker but its term loan B-1 was stronger as revisions were made to the company's amendment and extension request.

Over in the primary, EP Energy LLC increased its incremental term loan amount but left pricing unchanged, and Web.com Group Inc. and Hillman Group Inc. revealed price talk on their deals that were presented to lenders during the session.

Furthermore, HarbourVest Partners LP began floating guidance on its upcoming loan, and Fender Musical Instruments Corp. joined the new issue calendar.

Kronos tops OID

Kronos' credit facility made its way into the secondary market on Friday, with the $1.21 billion covenant-light seven-year first-lien term loan quoted at par bid, par ½ offered and the $690 million71/2-year covenant-light second-lien term loan quoted at 99½ bid, according to traders.

Pricing on the first-lien term loan is Libor plus 425 basis points with a 1.25% Libor floor, and it was sold at an original issue discount of 991/2. There is 101 repricing protection for one year.

Meanwhile, the second-lien term loan is priced at Libor plus 850 bps with a 1.25% floor, and was sold at 99. This tranche is non-callable for one year, then at 103 in year two, 102 in year three and 101 in year four.

The company's $1,965,000,000 credit facility also provides for a $65 million five-year revolver.

Kronos lead banks

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC are leading Kronos' credit facility that will be used to refinance debt and fund a dividend.

During syndication, the first-lien term loan was upsized from $1,155,000,000, pricing firmed at the wide end of the Libor plus 400 bps to 425 bps talk and the discount was tightened from 99.

In addition, the second-lien term loan was downsized from $745 million, pricing firmed at the high side of the Libor plus 825 bps to 850 bps guidance, and call protection was revised from 103 in year one, 102 in year two and 101 in year three.

Kronos is a Chelmsford, Mass.-based provider of workforce management software.

Astoria starts trading

Astoria Generating's $425 million term loan was another piece of debt to free up, with levels quoted at par bid, par ¾ offered, a trader said.

Pricing on the loan is Libor plus 700 bps with a 1.5% Libor floor, and it was sold at an original issue discount of 96, after flexing a few days ago from talk of Libor plus 550 bps to 600 bps with a 1.25% floor and a discount of 98.

Other changes made to the loan during syndication included making it non-callable for 18 months, then at 102 for six months and at 101 for a year, versus the originally proposed 101 soft call protection for one year, shortening the maturity to five years from 6 years and beefing up amortization to 5% per annum beginning on Sept. 30, 2013 from 1% per annum.

The owner of electric power generation facilities in New York is also getting a $30 million revolver as part of its $455 million credit facility (B2/B). The revolver was upsized from $25 million.

Goldman Sachs & Co., Morgan Stanley Senior Funding Inc. and Bank of America Merrill Lynch are leading the deal that will refinance first- and second-lien debt.

Insight Global frees up

Insight Global's credit facility broke for trading too, with the $300 million seven-year first-lien term loan (Ba3/B) quoted at 99½ bid, according to a market source.

The company's $490 million credit facility also includes a $60 million five-year revolver (Ba3/B) and a $130 million eight-year second-lien term loan (B3/CCC+).

Pricing on first-lien term loan is Libor plus 475 bps and the second-lien term loan is priced at Libor plus 900 bps, with both having a 1.25% Libor floor and sold at an original issue discount of 99.

The first-lien loan has 101 repricing 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.

Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch and RBC Capital Markets LLC are leading the deal that will fund the leveraged buyout of the company by Ares Management.

Insight Global is an Atlanta-based temporary staffing firm for the information technology sector.

Jacobs hits secondary

Also freeing up for trading was Jacobs Entertainment, with its $220 million six-year first-lien term loan quoted at 99 bid, 99½ offered and its $80 million seven-year second-lien term loan quoted at 98 bid, 99 offered, according to a market source.

Pricing on the first-lien term loan, which was upsized recently from $210 million, is Libor plus 500 bps with a 1.25% Libor floor, and it was sold at an original issue discount of 981/2. There is 101 repricing protection for one year.

The second-lien term loan is priced at Libor plus 1,175 bps with a 1.25% Libor floor, and it was sold at an original issue discount of 98. The debt is non-callable for two years, then at 103 in year three, 102 in year four and 101 in year five.

When the first-lien loan was upsized, the second-lien loan was downsized from $110 million, pricing was increased from Libor plus 950 bps and call protection was changed from 103 in year one, 102 in year two and 101 in year three.

Jacobs getting revolver

In addition to the term loans, Jacobs Entertainment's $350 million credit facility provides for a $50 million five-year revolver (B2/BB-).

Credit Suisse Securities (USA) LLC is the lead bank on the deal.

Proceeds will be used to refinance $210 million of 9¾% senior unsecured notes due June 15, 2014 and a $97 million senior credit facility.

Jacobs Entertainment is a Golden, Colo.-based owner and operator of gaming properties.

Avaya moves around

In more trading happenings, Avaya's term loan B-3 headed down to 89 bid, 90 offered from 89½ bid, 90½ offered, and its term loan B-1 rose to 97¼ bid, 98¼ offered from 97 bid, 98 offered, with news that that the company's credit facility amendment and extension proposal was sweetened, a trader said.

As before, the company is looking to extend its roughly $1.43 billion term loan B-1 by three years to Oct. 26, 2017, but price talk on the extended debt was increased to Libor plus 600 bps from Libor plus 525 bps, while the 1.25% Libor floor was left intact, sources said. Pricing on the non-extended term loan B-1 is Libor plus 275 bps with no floor.

Furthermore, the extended debt now has hard call protection of 102 in year one and 101 in year two, instead of 101 soft call protection for one year, and 50 bps MFN was added with respect to future term loans or extensions.

The maturity on the extended term B-1 borrowings matches the maturity on the existing term loan B-3, which is priced at Libor plus 450 bps with no Libor floor. Pricing on the B-3 is not being changed.

Avaya changes fees

Avaya also revised the amendment consent fee being offered to term loan B-3 lenders to 37.5 bps from 12.5 bps, sources continued. Revolver and term loan B-1 lenders are still being offered a 12.5 bps consent fee, and the extension fee is still 37.5 bps.

As part of the amendment, the company is looking for permission to get up to $750 million of additional junior-lien debt under the existing ratio basket. With the changes to the proposal, the company clarified the use of proceeds for this debt by saying that it can only be used to repay existing senior unsecured debt, which right now, is just the 2015 bonds.

The commitment/consent deadline remained at 5 p.m. ET on Friday.

Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc., Bank of America Merrill Lynch, Barclays, Credit Suisse Securities (USA) LLC, Goldman Sachs & Co., J.P. Morgan Securities LLC and UBS Securities LLC are leading the deal.

Avaya is a Basking Ridge, N.J.-based provider of business collaboration and communications services.

EP Energy upsizes

Moving to the primary, EP Energy lifted its 61/2-year incremental term loan to $400 million from $300 million, and kept pricing at Libor plus 350 bps with a 1% Libor floor and an original issue discount of 993/4, according to a market source.

Recommitments for the loan, which has 101 soft call protection through October 2013, are due at noon ET on Monday, the source said.

Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc. and UBS Securities LLC are leading the deal

Proceeds from the initial amount and the additional amount raised through the upsizing will be used to repay borrowings under the company's reserve-based revolver and for other general corporate purposes.

EP Energy is a Houston-based oil and natural gas exploration and production company.

Web.com sets guidance

Web.com held its conference call on Friday morning, launching its roughly $570 million first-lien term loan B due Oct. 27, 2017 with talk of Libor plus 425 bps with a 1.25% Libor floor, an original issue discount of 99 to 99½ and 101 soft call protection for one year, according to a market source.

Proceeds from the B loan will be used to reprice an existing first-lien term B from Libor plus 550 bps with a 1.5% Libor floor. The tranche was originally sized at $600 million when done about a year ago.

With the term loan B, the company is also looking to get a $10 million incremental revolver, bringing its total revolver size to $60 million.

J.P. Morgan Securities LLC, Deutsche Bank Securities Inc., SunTrust Robinson Humphrey Inc., Goldman Sachs Lending Partners, Citigroup Global Markets Inc. and Wells Fargo Securities LLC are leading the transaction

Web.com is a Jacksonville, Fla.-based provider of internet services and online marketing services.

Hillman details emerge

Hillman Group launched with a call on Friday its $76 million delayed-draw term loan at talk of Libor plus 350 bps with a 1.5% Libor floor, which is in line with existing term loan B pricing, according to a market source, who said that the new debt is being offered with an original issue discount of 991/2.

The loan is delayed-draw until the end of March 2013 and includes an unused fee of 50 bps for the first 30 days, half the spread for the next 60 days, and the full spread from the day 90 and thereafter, the source said.

Once drawn, the new debt will be fungible with the existing term loan B.

Barclays is leading the deal that will be used for general corporate purposes.

Hillman is a Cincinnati-based distributor of fasteners, key duplication systems, engraved tags and related hardware items.

HarbourVest floats talk

HarbourVest started going out with talk of Libor plus 425 bps with a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for one year on its $350 million five-year first-lien term loan that is getting ready to launch with a call at 2 p.m. ET on Monday, according to a market source.

Credit Suisse Securities (USA) LLC is the lead bank on the deal that will be used to refinance existing debt.

HarbourVest is a Boston-based private equity firm.

Fender coming soon

Fender Musical Instruments set a bank meeting for Tuesday to launch a $245 million six-year term loan B, according to sources.

Wells Fargo Securities LLC and J.P. Morgan Securities LLC are leading the deal that will be used to refinance an existing term loan.

Fender is a Scottsdale, Ariz.-based maker of instruments.

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