HD Supply tweaks pricing, breaks; Skilled Health, Veyance hit secondary; Hawker drops more

By Sara Rosenberg

New York, April 5 - HD Supply Inc. revised its term loan B on Thursday, flexing pricing higher and widening the original issue discount, while firming the size in line with prior expectations, and then the deal freed up for trading above its discount price.

Also in the secondary market, Skilled Healthcare Group Inc. and Veyance Technologies Inc. (formerly Goodyear Engineered Products) saw their incremental term loans break, and Hawker Beechcraft Inc.'s strip of institutional bank debt continued its downward spiral.

In more loan happenings, Wendy's International Inc. and Global Tel*Link Corp. released price talk on their term loans as the deals were presented to lenders during the session, TricorBraun began circulating price talk on its upcoming deal, and Schrader and AutoTrader.com surfaced with new deal plans.

HD Supply reworks deal

HD Supply revised its 51/2-year term loan B (B2/B+) on Thursday morning, increasing pricing to Libor plus 600 basis points from Libor plus 550 bps and moving the original issue discount to 97 from 971/2, according to a market source.

As before, the loan has a 1.25% Libor floor and is non-callable for one year, then at 102 in year two and 101 in year three.

Additionally, the size of the loan firmed up later in the day at $1 billion, as the company priced $950 million of seven-year first-priority notes at 8 1/8% and $675 million of eight-year second-priority notes at 11%.

Initially, talk was that the term loan B and first-priority notes would total $1.85 billion, with the term loan B guided at around $1 billion. The second-priority notes were expected at $775 million.

HD Supply starts trading

With terms finalized, HD Supply's term loan B broke for trading late in the session, with levels quoted at 98 bid, 98½ offered on the open, and then it moved up to 98½ bid, 99 offered, a trader said.

Proceeds from the loan, the bonds and a new $1.5 billion ABL revolver (BB-) will be used to refinance existing senior secured term loan borrowings, an existing ABL facility and 12% senior cash pay notes due 2014.

The new revolver is priced at Libor plus 200 bps, with pricing subject to a grid.

Bank of America Merrill Lynch, Goldman Sachs & Co., Barclays Capital Inc., J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Wells Fargo Securities LLC and UBS Securities LLC are the lead banks on the term loan B, and GE Capital Markets and Wells Fargo are leading the revolver.

HD Supply is an Atlanta-based wholesale distributor for the infrastructure & energy, maintenance, repair & improvement and specialty construction sectors.

Skilled Healthcare breaks

Skilled Healthcare's $100 million add-on senior secured term loan B (B1) due April 9, 2016 made its way into the secondary market, with levels quoted at 98¾ bid, 99½ offered, according to a trader.

Pricing on the loan is set at Libor plus 525 bps, the low end of the Libor plus 525 bps to 550 bps talk. There is a 1.5% Libor floor and 101 soft call protection for one year, and it was sold at an original issue discount of 98.

With the add-on, the company is repricing its existing roughly $344 million term loan B from Libor plus 375 bps with a 1.5% floor to match the pricing on the new borrowings, and 101 soft call protection for one year is being added to this debt as well.

J.P. Morgan Securities LLC and Credit Suisse Securities (USA) LLC are leading the deal that will be used with revolver borrowings to redeem $130 million 11% senior subordinated notes due Jan. 15, 2014.

Skilled Healthcare is a Foothill Ranch, Calif.-based operator of skilled nursing facilities, assisted living facilities, rehabilitation therapy and hospice businesses and home health care.

Veyance tops OID

Veyance Technologies' $50 million incremental non-fungible first-lien term loan due July 31, 2014 freed up too, with levels quoted at 99¾ bid, par ½ offered, according to a market source.

Pricing on the loan firmed up earlier in the day at Libor plus 425 bps, the high end of the Libor plus 400 bps to 425 bps guidance, the source said. Included in the tranche is a 1.25% Libor floor and 101 soft call protection for one year, and it was sold at an original issue discount of 991/2.

Barclays Capital Inc. is the lead bank on the deal that will be used to repay revolver borrowings.

With the incremental term loan, the company is getting a new $75 million revolver.

Veyance is an Akron, Ohio-based manufacturer and seller of industrial power transmission products, heavy-duty and lightweight conveyor belts, hydraulics, rubber track, and automotive and heavy-duty truck belts, hose, tensioners and air springs.

Hawker Beechcraft down again

Hawker Beechcraft's strip of institutional bank debt dropped to 66 bid, 67½ offered from 67½ bid, 68½ offered, continuing its week long decline, according to a trader. Last Friday, the debt was quoted at 73½ bid, 75 offered.

The strip of loans have been under pressure this week because of news that the company did not file its 10-K for 2011 by the March 30 deadline, skipped April 2 interest payments on notes and expects 2011 losses from operations at roughly $481.8 million, compared to losses from operations of aournd $173.9 million in 2010.

Last week, the company reached a forbearance agreement through June 29 with about 70% of credit facility lenders to defer interest payments and get covenant relief, and closed on a new $124.5 million senior term loan due June 29 that will be used to fund ongoing operations.

Hawker is a Wichita, Kan.-based manufacturer of business, special mission, light attack and trainer aircraft.

Wendy's reveals guidance

Back over in the primary, Wendy's International launched its credit facility with a bank meeting in the morning, and in connection with the event, talk on the $1.125 billion seven-year term loan B was announced at Libor plus 350 bps to 375 bps with a 1.25% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, according to a market source.

The company's $1.325 billion senior secured credit facility also includes a $200 million five-year revolver.

Bank of America Merrill Lynch and Wells Fargo Securities LLC are leading the deal that will be used to refinance a $150 million revolver, a $500 million term loan B and $565 million of 10% senior notes due 2016, and for general corporate purposes.

Commitments are due at noon ET on April 18 and closing is targeted for May 15, the source added.

Wendy's is a Dublin, Ohio-based quick-service hamburger chain.

Global Tel*Link talk

Global Tel*Link held a conference call on Thursday afternoon to launch its $620 million first-lien term loan due December 2017, and, ahead of the launch, price talk on the loan emerged at Libor plus 450 bps with a 1.25% Libor floor, according to sources.

As previously reported, the loan is offered at par and includes one year of 101 repricing protection.

Proceeds are being used to reprice an existing term loan that was obtained in December 2011 at a size of $635 million and with pricing of Libor plus 550 bps with a 1.5% Libor floor. The debt had been sold at an original issue discount of 98.

Existing lenders are being paid down at 101 since the loan has soft call protection.

Lead banks, Credit Suisse Securities (USA) LLC and UBS Securities LLC, are seeking commitments towards the repricing by April 12, sources said.

Global Tel*Link is a Mobile, Ala.-based correctional communications technology company.

TricorBraun floats pricing

TricorBraun began going out with price talk of Libor plus 425 bps to 450 bps with a 1.25% Libor floor and an original issue discount of 99 on its proposed $480 million term loan B in preparation for a Wednesday bank meeting, according to a market source.

The company's $555 million credit facility also includes a $75 million revolver.

GE Capital Markets and UBS Securities LLC are leading the deal that will be used to refinance existing debt and fund a dividend.

TricorBraun is a St. Louis-based designer and deliverer of rigid packaging.

Schrader deal emerges

Schrader also joined the forward calendar, setting a bank meeting for 10 a.m. ET on Tuesday to launch a proposed $365 million credit facility, according to a market source.

The facility consists of a $35 million revolver, a $230 million first-lien term loan and a $100 million second-lien term loan, the source said, adding that price talk is not yet available.

Barclays Capital Inc., Goldman Sachs & Co. and Citigroup Global Markets Inc. are leading the deal that will be used with equity to fund the buyout of the company by Madison Dearborn Partners LLC from Tomkins for $505 million in cash plus a small minority equity interest in the parent of the purchaser.

Closing is expected in the second quarter, subject to customary conditions, and leverage is around 3.1 times through the first-lien and 4.4 times total.

Schrader is a manufacturer of tire pressure monitoring systems, valve products and tire hardware and related accessories for both original equipment manufacturers and aftermarket customers.

AutoTrader plans loan

AutoTrader.com is yet another company to reveal a new deal, with the plan being to hold a conference call on Tuesday to launch a $200 million incremental term loan A due 2017 and a $200 million incremental revolver due 2015, according to sources.

Wells Fargo Securities LLC is the lead bank on the $400 million deal.

AutoTrader.com is an Atlanta-based automotive marketplace and consumer information website.

Preferred Sands nets interest

Preferred Sands LLC's $125 million add-on term loan B (B2/B+) has been met with strong demand, resulting in the deal being well oversubscribed ahead of Thursday's commitment deadline, according to a market source.

The add-on, which will be fungible with the existing B loan, is talked at Libor plus 600 bps with a 1.5% Libor floor, in line with existing pricing, and is being offered with an original issue discount of 98. By comparison, when done in December, the existing term loan B was sold at a discount of 971/2.

Like the existing loan, the add-on matures on Dec. 15, 2016 and has 101 soft call protection through Dec. 15, 2012.

Barclays Capital Inc. is the lead bank on the deal that will be used to acquire some class A minority investor interests, fund a distribution to remaining investors and for general corporate purposes.

Preferred Sands, a Radnor, Pa.-based provider of silica sand products, will have leverage of 4.4 times on a secured and gross basis with this transaction, versus 4 times currently.

Prometric allocates

Prometric Inc.'s $175 million credit facility (Ba1/BBB) allocated on Thursday and closing is expected to take place in the middle of the April 9 week, according to a market source.

Initial pricing on the facility is Libor plus 200 bps. The spread can range from Libor plus 150 bps to 225 bps based on leverage.

The facility consists of a $10 million revolver and a $165 million term loan.

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

Prometric is a Baltimore-based provider of technology-based assessment services, including test development and delivery for government entities, professional organizations, academic institutions, corporations and information technology clients.

Lawson closes

The merger of Lawson Software Inc. and Infor Global Solutions Holdings Ltd. has been completed, according to a news release, and for the transaction, Lawson got a new $3.65 billion senior secured credit facility (Ba3/B+) consisting of a $150 million five-year revolver, a $2.77 billion six-year U.S. term loan B, a €250 million six-year euro term loan B and a $400 million 41/2-year term loan B-1.

Pricing on the U.S. term loan B is Libor plus 500 bps and it was sold at a discount of 99, pricing on the euro term loan B is Euribor plus 550 bps and it was sold at a discount of 99 and pricing on the term loan B-1 is Libor plus 450 bps and it was sold at a discount of 991/2. All tranche have a 25 bps step-down when net leverage falls below 5½ times, a 1.25% floor and 101 soft call protection for one year.

During syndication, the euro term B sized firmed at the wide end of the €200 million to €250 million, pricing on the U.S. B loan was flexed up from guidance of Libor plus 450 bps to 475 bps, pricing on the B-1 was increased from talk of Libor plus 400 bps to 425 bps, the B-1 discount was tightened from 99 and the pricing step-down was added to all tranches.

Lawson lead banks

Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc., Barclays Capital Inc., Deutsche Bank Securities Inc., RBC Capital Markets LLC and KKR Capital Markets were the lead banks on Lawson's credit facility.

Proceeds, along with $1.35 billion-equivalent senior notes, were used to refinance existing debt at both Lawson and Infor Global.

Lawson is a St. Paul, Minn.-based provider of enterprise software, and Infor Global is a New York-based provider of business software.

Beacon wraps refi

Beacon Roofing Supply Inc. closed on Thursday on its $550 million five-year credit facility that was led by Wells Fargo Securities LLC, J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Union Bank and GE Capital Markets, according to an 8-K filed with the Securities and Exchange Commission.

The facility consists of a $325 million revolver and a $225 million term loan A, both priced at Libor plus 175 bps. The revolver has a 37.5 bps unused fee.

During syndication, the revolver was upsized from $300 million and the A loan was upsized from $200 million.

Proceeds were used to refinance existing debt.

Beacon Roofing is a Peabody, Mass.-based distributor of residential and non-residential roofing and complementary building products.

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