Town Sports breaks; Web.com, Phoenix, Merrill Communications, HarbourVest revise deals

By Sara Rosenberg

New York, Nov. 15 - Town Sports International Holdings Inc.'s add-on term loan made its way into the secondary market on Thursday, with levels quoted above its original issue discount price, and Open Solutions Inc.'s term loan came under some pressure.

Switching to the primary, Web.com Group Inc. lifted the size of its first-lien term loan B and set the original issue discount at the wide end of guidance, and Phoenix Services LLC (Metal Services LLC) lifted the coupon on its term loan.

Also, Merrill Communications LLC made a second round of changes to its deal, this time shifting funds between the first-lien term loan and the second-lien notes, and HarbourVest Partners LP flexed pricing lower.

In addition, Patheon Inc., NSG Holdings LLC, AlliedBarton Security Holdings LLC and UPC Broadband Holding B.V. disclosed talk with launch.

Town Sports hits secondary

Town Sports' $60 million add-on term loan allocated and freed up for trading on Thursday, with levels quoted at par ½ bid, 101½ offered, according to a market source.

Pricing on the add-on matches existing term loan pricing at Libor plus 450 basis points with a 1.25% Libor floor, and the debt was sold at an original issue discount of 991/2. There is 101 soft call protection for one year.

Proceeds will be used with cash on hand to pay a special one-time cash dividend to stockholders.

Recently, the add-on was downsized from $75 million, which is resulting in the payment of a smaller dividend.

Deutsche Bank Securities Inc. is leading the deal that is expected to close this month.

Town Sports is a New York-based owner and operator of fitness clubs.

Open Solutions retreats

In more trading news, Open Solutions' term loan took a tumble, a trader said, adding that the company had released financial results.

The term loan was quoted at 92½ bid, 94½ offered, down from 95 bid, 96½ offered, the trader remarked.

Open Solutions is a Glastonbury, Conn., provider of integrated enabling technologies for financial institutions.

Web.com modifies deal

Moving to the primary, Web.com increased its first-lien term loan B due Oct. 27, 2017 to around $630 million from about $570 million and firmed the original issue discount at 99, the high end of the 99 to 99½ talk, according to a market source.

The loan still has pricing of Libor plus 425 bps with a 1.25% Libor floor, and 101 soft call protection for one year.

Proceeds will be used to reprice an existing first-lien term loan from Libor plus 550 bps with a 1.5% Libor floor, and the additional $60 million raised through the upsizing will be used to pay down some of the company's roughly $120 million second-lien term loan.

Recommitments were due by 5 p.m. ET on Thursday, the source remarked.

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 deal for the Jacksonville, Fla.-based provider of internet services and online marketing services.

Phoenix flexes higher

Phoenix Services increased the spread on its $275 million 41/2-year first-lien term loan to Libor plus 625 bps from Libor plus 525 bps, and left the 1.25% Libor floor, original issue discount of 99 and 101 repricing protection for one year intact, according to a market source.

Commitments for the $305 million credit facility (B1/B), which also provides for a $30 million four-year revolver, are still due at 5 p.m. ET on Tuesday.

Credit Suisse Securities (USA) LLC and Morgan Stanley Senior Funding Inc. are leading the deal.

Proceeds will be used to refinance existing debt.

Phoenix Services is a Kennett Square, Pa.-based provider of steel mill services and a processor of slag and co-products from steel mills and foundries.

Merrill retranches

Merrill Communications upsized its five-year first-lien term loan (B3/B-) to $470 million from $455 million and left pricing at Libor plus 900 bps with a 1.5% Libor floor and an original issue discount of 98, according to a market source. The spread had been flexed earlier from Libor plus 750 bps.

The first-lien term loan still has repricing protection of 103 in year one, 102 in year two and 101 in year three.

With the term loan upsizing, the company downsized its privately negotiated 51/2-year second-lien notes (Caa3/CCC) to $135 million from $150 million, the source said. Pricing remained at Libor plus 1,450 bps, including 2% PIK, with no floor and an original issue discount of 98.

The notes are still non-callable for life, but are now being offered with warrants for 25% of the company's common equity, instead of warrants for 10%.

Merrill getting revolver

Merrill Communications' credit facility, which is being led by Credit Suisse Securities (USA) LLC, also provides for a $30 million five-year revolver (B1/B+).

Commitments are due at 3 p.m. ET on Friday, the source remarked.

Proceeds will be used to refinance existing bank debt.

Merrill is a St. Paul, Minn.-based provider of technology-enabled services for the financial, legal, health care, real estate and other corporate markets.

HarbourVest cuts coupon

HarbourVest lowered the spread on its $350 million five-year first-lien term loan to Libor plus 375 bps from Libor plus 425 bps, and left the 1% Libor floor, original issue discount of 99½ and 101 soft call protection for one year intact, according to a market source.

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

HarbourVest is a Boston-based private equity firm.

Patheon reveals talk

In more primary news, Patheon held a bank meeting on Thursday morning to kick off syndication on its credit facility, and with the launch, price talk on the $565 million term loan B was announced, according to market sources.

The loan is talked at Libor plus 550 bps to 575 bps with a 1.25% Libor floor and an original issue discount of 981/2, and includes 101 soft call protection for one year, sources said.

By comparison, in filings with the Securities and Exchange Commission, expected pricing on the term loan B was outlined as Libor plus 475 bps with a 1.25% Libor floor.

The company's $650 million senior secured credit facility (B3/B+) also provides for an $85 million revolver.

Commitments are due at noon ET on Dec. 4, sources added.

Patheon lead banks

Morgan Stanley Senior Funding Inc., UBS Securities LLC, Credit Suisse Securities (USA) LLC and KeyBanc Capital Markets LLC are leading Patheon's credit facility.

Proceeds, along with up to $30 million of equity from JLL Partners Fund V LP, will be used to fund the $255 million acquisition of Banner Pharmacaps from VION NV, to buy back $280 million of existing senior secured notes, to repay revolver borrowings and for general corporate purposes.

Closing is expected by year-end, subject to regulatory approvals and other customary conditions.

Patheon is a Durham, N.C.-based provider of contract development and manufacturing services to the pharmaceutical industry. Banner is a High Point, N.C.-based specialty pharmaceutical business dedicated to the research, development and manufacturing of gelatin-based dosage forms.

NSG pricing

NSG Holdings released talk on its $230 million credit facility with its bank meeting as well, according to a market source.

The $146 million term loan B is talked at Libor plus 375 bps to 400 bps with a 1.25% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, the $44 million debt service reserve letter-of-credit facility is talked at Libor plus 375 bps to 400 bps with a 1% upfront fee, and the $40 million performance letter-of-credit facility is talked at Libor plus 275 bps to 300 bps with a 1% upfront fee, the source said.

BNP Paribas Securities Corp. is leading the deal that will be used to refinance existing debt and to fund a dividend.

NSG Holdings is a subsidiary of Northern Star Generation LLC, a Houston-based power generation company.

AlliedBarton sets guidance

AlliedBarton Security launched a $100 million add-on first-lien term loan (Ba3) due February 2017 with a call at 3 p.m. ET on Thursday, and prior to the call, talk on the loan emerged at Libor plus 400 bps with a 1.25% Libor floor, an original issue discount of 99 and 101 repricing protection for one year, according to a market source.

Credit Suisse Securities (USA) LLC is the lead bank on the add-on that is fungible with the existing first-lien term loan.

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

AlliedBarton is a security officer services company.

UPC launches

UPC Broadband held a call in the morning to launch a $500 million first-lien term loan AF (Ba3/BB-) due Jan. 31, 2021 that is being talked at Libor plus 300 bps with a 1% Libor floor, an original issue discount of 99¾ and 101 soft call protection for one year, according to market sources.

J.P. Morgan Securities LLC, Scotia Capital (USA) Inc. and Citigroup Global Markets Inc. are the lead banks on the deal that will be used to refinance an existing facility AB.

UPC is a subsidiary of Liberty Global, an Englewood, Colo.-based provider of video, voice and broadband internet services.

U.S. Xpress closes

U.S. Xpress Enterprises Inc. completed its amendment and extension, which provides for a $190 million four-year term loan B and a $40 million three-year revolver, a news release said.

Pricing on the extended term loan B is Libor plus 750 bps with a 1.5% Libor floor and it was sold at an original issue discount of 98. Prior to the extension, the B loan matured in 2014 and was priced at Libor plus 550 bps with a 2% floor.

In September, the company approached the market with the $230 million credit facility, consisting of a $40 million three-year revolver talked at Libor plus 600 bps with a 50 bps unused fee and a $190 million four-year term loan B talked at Libor plus 600 bps with a 1.5% Libor floor and an original issue discount of 97½ to 98. This deal was going to be used to refinance the existing credit facility, but later this refinancing was changed to an amendment and extension.

SunTrust Robinson Humphrey Inc. led the transaction.

U.S. Xpress is a Chattanooga, Tenn.-based truckload carrier and a diversified provider of truckload, intermodal and logistics services.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.