McGraw-Hill Education, NBTY break; AM General updates terms, Ruby Western shutting early

By Sara Rosenberg

New York, March 18 - McGraw-Hill Global Education Holdings LLC's credit facility freed up for trading on Monday, with the term loan quoted above its original issue discount price, and NBTY Inc. hit the secondary as well.

Moving to the primary, AM General LLC came out with a new round of changes on its term loan, including lifting the size, widening the spread, tightening the Libor floor and sweetening call protection, and Ruby Western Pipeline Holdings accelerated the commitment deadline on its term loan.

Additionally, KCA Deutag Finance S.a.r.l., MoneyGram International Inc. and Vantage Drilling Co. released talk, and Weight Watchers International Inc. set original issue discount guidance, with launch.

Furthermore, Neenah Enterprises Inc., Sinclair Television Group Inc., American Petroleum Tankers Parent LLC, Cedar Bay Generating Co. LP, Belfor USA Group Inc., Surgery Center Holdings Inc., Berlin Packaging and 4L Holdings joined this week's calendar.

McGraw-Hill starts trading

McGraw-Hill Global Education's credit facility made its way into the secondary market on Monday, with one source quoting the $810 million six-year covenant-light term loan at 99 bid, 99¼ offered, and another quoting it at 98½ bid, 99½ offered.

Pricing on the term loan is Libor plus 775 basis points with a 1.25% Libor floor, and it was sold at an original issue discount of 97. There is 101 soft call protection for one year.

During syndication, the term loan was upsized from a revised amount of $610 million and an initial size of $560 million, the spread was increased from talk of Libor plus 650 bps to 700 bps and the discount was widened from 98.

The company's $1.05 billion senior secured credit facility (B2/NA/BB) also includes a $240 million five-year revolver.

McGraw-Hill being acquired

Proceeds from McGraw-Hill Education's credit facility and $800 million of secured bonds will be used to help fund its buyout by Apollo Global Management LLC from McGraw-Hill Cos. for $2.5 billion, subject to certain closing adjustments.

The bond deal was reduced from a most recent size of $1 billion and an initial size of $1.05 billion, when the term loan upsizings took place.

As part of the transaction, McGraw-Hill will receive an additional $150 million in cash at closing from the investment funds affiliated with Apollo Global Management, instead of being issued $250 million in face amount of unsecured notes by a holding company of McGraw-Hill Education.

Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc., Jefferies & Co., UBS Investment Bank, Nomura and BMO Capital Markets Corp. are leading the credit facility.

Closing is subject to regulatory approval and customary conditions.

McGraw-Hill Education is a New York-based digital learning company.

NBTY frees up

NBTY's $1,508,000,000 covenant-light senior secured term loan (Ba3/BB-) due Oct. 1, 2017 also broke, with one source quoting the loan at par ¾ bid, 101¼ offered, and another quoting it at par 5/8 bid, 101 1/8 offered.

Pricing on the term loan is Libor plus 250 bps with a 1% Libor floor, and it was issued at par. There is 101 soft call protection for one year.

Barclays, Bank of America Merrill Lynch and Credit Suisse Securities (USA) LLC are leading the deal that is refinancing an existing term loan priced at Libor plus 325 bps with a 1% Libor floor.

The company had approached lenders with a repricing of the existing term loan last month, but that was later pulled. Talk on that repricing had been Libor plus 250 bps to 275 bps with a 1% Libor floor, a par offer price, and 101 soft call protection through Oct. 11, 2013.

NBTY is a Ronkonkoma, N.Y.-based manufacturer, marketer, distributor and retailer of vitamins and nutritional supplements.

OWIC announced

In more secondary news, a $116.8 million Offers-Wanted-In-Competition emerged, with investors being asked to have their offers in by 11 a.m. ET on Tuesday, according to a trader.

Some of the larger pieces of debt in the OWIC are Avis Budget Car Rental LLC's term loan C, Cinemark USA Inc.'s term loan, Crown Castle Operating Co.'s term loan B, DaVita Inc.'s term loan B-2, SBA Senior Finance II LLC's incremental term loan B, Spectrum Brands Inc.'s initial U.S. term loan, Spirit Aerosystems Inc.'s term loan B and Windstream Corp.'s term loan B-4.

There are about 51 issuers in the portfolio, the trader added.

AM General reworked again

Over in the primary, AM General made some new changes to its five-year term loan B, setting the size at $330 million and pricing at Libor plus 900 bps with a 1.25% Libor floor and an original issue discount of 97, according to a market source.

By comparison, most recently, the loan was sized at $325 million and talked at Libor plus 875 bps with a 1.5% Libor floor and a discount of 97, and at launch, it was sized at $350 million and guided at Libor plus 650 bps to 675 bps with a 1.25% floor and a discount of 98.

Also, call protection on the loan is now non-callable for two years, then at 103 in year three and 101 in year four, the source said. Previously, the protection was non-callable for two years, then at 103 in year three and at launch it was a hard call of 102 in year one and 101 in year two.

The company's now $350 million senior secured credit facility (B2/BB-) also includes a $20 million revolver.

AM General allocations

With the latest revisions out, AM General is giving lenders until 11 a.m. ET on Wednesday for comments, and the anticipation is that the credit facility will allocate thereafter, the source remarked.

Citigroup Global Markets Inc., Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Jefferies Finance LLC and Natixis are leading the deal.

AM General, a South Bend, Ind.-based designer, manufacturer and supplier of specialized vehicles for commercial and military customers, will use the new credit facility to refinance existing bank debt.

Ruby moves deadline

Ruby Western Pipeline modified the commitment deadline on its $500 million seven-year senior secured term loan (Ba2/BB+) to noon ET on Wednesday from noon ET on Friday, according to a market source.

The loan is talked at Libor plus 275 bps to 300 bps with a 1% Libor floor, an original issue discount of 99 to 99½ and 101 soft call protection for one year.

Barclays and Credit Suisse Securities (USA) LLC are leading the deal that will be used to fund a distribution to the sponsors and a six-month debt service reserve.

Leverage is 5.5 times net cash flow available for debt service, the source added.

Ruby Western Pipeline is a holding company with a 50% ownership of the Western US FERC-regulated Ruby Pipeline from Wyoming to Oregon that is a joint venture with Kinder Morgan.

KCA Deutag holds meeting

KCA Deutag hosted a bank meeting at 10 a.m. ET in New York on Monday to launch a $400 million six-year term loan (B) that will be used, along with $860 million of senior secured notes, to refinance existing debt, according to a market source.

The loan is talked at Libor plus 575 bps to 600 bps with a 1.25% Libor floor, an original issue discount of 99 and soft call protection of 102 in year one and 101 in year two, the source said.

J.P. Morgan Securities LLC, Bank of America Merrill Lynch, HSBC Securities (USA) Inc., Lloyds Securities LLC and Morgan Stanley Senior Funding Inc. are leading the deal.

KCA Deutag is a Scotland-based provider of oilfield services.

MoneyGram talk emerges

MoneyGram released talk of Libor plus 325 bps with a 1% Libor floor, an original issue discount of 99 to 99½ and 101 soft call protection for one year on its $850 million seven-year covenant-light term loan B that launched during the session, according to a market source.

Also, it was revealed that the five-year revolver in the new credit facility will be sized at $125 million, the source said.

Commitments are due on March 28.

Bank of America Merrill Lynch, Wells Fargo Securities LLC, J.P. Morgan Securities LLC, Deutsche Bank Securities Inc. and Credit Agricole Securities (USA) Inc. are leading the $975 million deal (BB-) that will refinance 13¼% second-lien notes due 2018 and existing term loans.

MoneyGram is a Dallas-based provider of money transfer and payment services.

Vantage details surface

Vantage Drilling held its call in the afternoon, at which time it launched a $525 million six-year term loan that is talked at Libor plus 450 bps with a 1.25% Libor floor and an original issue discount of 98 to 99, according to a market source, who said the deal is non-callable for two years.

Citigroup Global Markets Inc., Bank of America Merrill Lynch, Deutsche Bank Securities Inc., Jefferies Finance LLC and RBC Capital Markets, LLC are leading the loan.

Vantage Drilling, a Houston-based offshore drilling contractor, is asking for commitments by Friday, the source continued.

Proceeds will be used refinance existing first-lien notes.

Weight Watchers OID

Weight Watchers disclosed original issue discount talk of 99 to 99½ on its $2.4 billion term loan B due March 2020 that launched on Monday, according to sources.

Talk on the loan of Libor plus 300 basis points with a 0.75% Libor floor and 101 soft call protection for one year had come out prior to the lender call.

J.P. Morgan Securities LLC, Bank of America Merrill Lynch, HSBC Securities (USA) Inc., Scotia Capital (USA) Inc. and U.S. Bank are leading the deal that will be used to repay the company's existing term loan B due 2014, term loan C due 2015, term loan D due 2016, term loan E due 2017 and term loan F due 2019.

Weight Watchers is a New York-based provider of weight management services.

Rock Ohio launches

Rock Ohio Caesars (ROC Finance LLC) held its call in the afternoon to launch its $570 million credit facility, and lenders are being asked to get their commitments in by March 28, according to a market source.

The facility consists of a $35 million five-year revolver, and a $535 million six-year first-lien covenant-light term loan that is talked at Libor plus 450 bps to 475 bps with a 1.25% Libor floor, an original issue discount of 99½ and 101 soft call protection for one year, the source said.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Wells Fargo Securities LLC are leading the deal that will be used to refinance existing first-lien debt and fund the acquisition of the Higbee Building.

Rock Ohio is a casino operator in the Midwest. The company is a joint venture formed by Rock Gaming LLC and Caesars Entertainment Corp.

Neenah coming soon

Also on the new deal front, Neenah Enterprises set a bank meeting for Thursday morning to launch a $250 million credit facility that includes a $100 million five-year ABL revolver and a $150 million 31/2-year term loan B, according to a market source.

The term loan B is talked at Libor plus 500 bps with a 1.25% Libor floor and an original issue discount of 99, the source said.

GE Capital Markets is the sole lead on the term loan and left lead on the revolver. Wells Fargo Securities LLC is a co-lead on the revolver.

Proceeds will be used to refinance existing debt and fund a dividend, the source added.

Neenah Enterprises is a Neenah, Wis.-based manufacturer and marketer of iron castings and steel forgings.

Sinclair readies deal

Sinclair Television will hold a lender call at 2 p.m. ET on Tuesday to launch a new $1 billion credit facility (Baa3/BB+) that is being led by J.P. Morgan Securities LLC, Wells Fargo Securities LLC and SunTrust Robinson Humphrey Inc., according to sources.

The facility consists of a $100 million revolver due April 2018, a $500 million term loan A due April 2018 talked at Libor plus 225 bps with no Libor floor, and a $400 million term loan B due April 2020 talked at Libor plus 250 bps to 275 bps with a 0.75% Libor floor, an original issue discount of 99¾ and 101 soft call protection for six months, sources said.

Proceeds, along with $600 million of senior notes, will be used to refinance existing bank debt and fund the acquisitions of 18 television stations owned by Barrington Broadcasting Group LLC for $370 million and four television stations owned by COX Media Group for about $99 million.

About $445 million of the new term loans are expected to be delayed-draw since the acquisitions are expected to close in the second quarter.

Sinclair is a Hunt Valley, Md.-based television broadcasting company.

American Petroleum timing

American Petroleum Tankers scheduled a bank meeting for 2 p.m. ET on Tuesday to launch its previously announced $280 million senior secured credit facility (B2), according to a market source.

Bank of America Merrill Lynch is leading the deal.

The facility, which consists of a $10 million five-year revolver and a $270 million 61/2-year term loan, will fund the redemption of the company's existing 10¼% first-priority senior secured notes due 2015.

In addition, the company plans to convert to equity its $455.5 million second-lien credit facility, for which Blackstone Corporate Debt Administration LLC is the administrative agent.

American Petroleum is a Plymouth Meeting, Pa.-based provider of Jones Act marine transportation services for refined petroleum products, crude oil and chemicals.

Cedar Bay on deck

Cedar Bay Generating, a coal-fired power plant in Jacksonville, Fla., set a bank meeting for 1:30 p.m. ET on Wednesday to launch a $275 million seven-year senior secured term loan, according to a market source.

Barclays and Morgan Stanley Senior Funding Inc. are leading the deal.

Proceeds from the loan will be used to refinance existing debt, fund a debt service reserve account and repay some subordinated debt, the source added.

Belfor plans refi

Belfor USA will hold a bank meeting at 10 a.m. ET in New York on Thursday to launch a $520 million credit facility that will be used to take out existing debt, according to a market source.

The facility consists of a $170 million five-year revolver, a $150 million five-year term loan A and a $200 million six-year term loan B, the source remarked.

J.P. Morgan Securities LLC is leading the deal for the damage recovery and restoration provider.

Surgery Center preps loans

Surgery Center Holdings plans to host a bank meeting at 10 a.m. ET in New York on Wednesday to launch a $305 million first-lien term loan (B1) and a $130 million second-lien term loan (Caa2), according to a market source.

J.P. Morgan Securities LLC is the lead bank on the $435 million deal that will be used to refinance existing debt and return capital to shareholders.

Surgery Center is a Chicago-based operator of ambulatory surgery centers.

Berlin Packaging in calendar

Berlin Packaging scheduled a bank meeting for Wednesday to launch a $600 million credit facility that is being led by Bank of America Merrill Lynch and Deutsche Bank Securities Inc., according to a market source.

The facility consists of a $40 million five-year revolver, a $385 million six-year first-lien term loan that has 101 soft call protection for one year, and a $175 million seven-year second-lien term loan that has call protection of 103 in year one, 102 in year two and 101 in year three, the source said.

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

Berlin Packaging is a Chicago-based supplier of plastic, glass, and metal containers and closures.

4L schedules call

4L Holdings set a call for 2 p.m. ET on Tuesday to launch an $85 million incremental term loan B that is priced at Libor plus 550 bps with a 1.25% Libor floor, mirroring with existing term loan B, according to a market source.

4L is an Ottawa, Ill.-based electronics company.

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