SuperValu, West, Sabre break; Fairway shutting books early; Navistar reworks term loan

By Sara Rosenberg

New York, Aug. 10 - SuperValu Inc.'s term loan made its way into the secondary market on Friday, with levels quoted above its original issue discount price., and West Corp. and Sabre Inc. freed up as well.

Moving to the primary market, Fairway Group Acquisition Co. accelerated the commitment deadline on its credit facility as the transaction is already oversubscribed at initial talk.

In addition, Navistar Inc. made some changes to its covenant-light term loan in the morning, including lowering the coupon, tightening the original issue discount and removing plans for some of the debt to be done on a delayed-draw basis.

SuperValu starts trading

SuperValu's credit facility broke for trading on Friday, with the $850 million six-year covenant-light term loan (B1/BB-) quoted at 98 bid, 99 offered, according to a market source.

Pricing on the term loan is Libor plus 675 basis points with a 1.25% Libor floor, and it was sold at an original issue discount of 97. There is soft call protection of 102 in year one and 101 in year two.

During syndication, pricing on the loan flexed up from Libor plus 625 bps, the discount widened to 96 from 98 and then tightened to its final level, the soft call protection was sweetened from just 101 in year one and the maturity was shortened from seven years.

SuperValu plans revolver

In addition to the term loan, SuperValu's $2.5 billion credit facility provides for a $1.65 billion five-year ABL revolver that has pricing ranging from Libor plus 175 bps to 225 bps.

Credit Suisse Securities (USA) LLC and Barclays Capital Inc. are the bookrunners on the term loan, and Wells Fargo Securities LLC, U.S. Bancorp Investments Inc., Barclays and Credit Suisse are the bookrunners on the revolver.

SuperValu, an Eden Prairie, Minn.-based supermarket operator, plans to use proceeds from the new credit facility to refinance existing debt.

West tops par

West's $970 million term loan B began trading too, with levels quoted at par ¼ bid, par ¾ offered, according to a market source.

Pricing on the term loan B is Libor plus 450 bps with a 1.25% Libor floor, and it was sold at an original issue discount of 991/4. There is 101 soft call protection for one year.

Recently, the loan was upsized from $720 million as the company terminated plans for a $250 million add-on to its 7 7/8% senior notes due Jan. 15, 2019, pricing was reduced from Libor plus 475 bps and the discount was tightened from 99.

Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc., Goldman Sachs & Co., Wells Fargo Securities LLC, Bank of America Merrill Lynch and Barclays are leading the deal that will be used to refinance existing debt and to fund a dividend.

West is an Omaha-based provider of voice-related communication services.

Sabre frees up

Also hitting the secondary market was Sabre's $375 million incremental term loan, with levels seen at 99¼ bid, 99¾ offered, according to a trader.

Pricing on the loan is Libor plus 600 bps with a 1.25% Libor floor, and it was sold at an original issue discount of 99. There is 101 soft call protection for one year.

On Thursday, the loan was upsized from $250 million and pricing firmed at the tight end of the Libor plus 600 bps to 625 bps guidance.

Bank of America Merrill Lynch, Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc., Goldman Sachs & Co., Barclays, Natixis and Mizuho are leading the deal that will be used to repay non-extended term loan debt.

Sabre is a Southlake, Texas-based online travel company.

Fairway ups deadline

Over in the primary, Fairway Group changed the commitment deadline on its $300 million credit facility to 5 p.m. ET on Monday from 5 p.m. on Wednesday since the transaction has already more than filled out at talk, a market source told Prospect News.

The facility consists of a $40 million five-year revolver and a $260 million six-year first-lien term loan, both talked at Libor plus 700 bps with a 1.5% Libor floor and an original issue discount of 98. The term loan has 101 repricing protection for one year.

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

Fairway is a supermarket chain with locations in New York, New Jersey and Connecticut.

Navistar revises loan

Navistar reworked its $1 billion five-year covenant-light term loan B (NA/B+/BB-), cutting the coupon to Libor plus 550 bps from talk of Libor plus 650 bps to 700 bps and moving the original issue discount to 99 from 98, according to a market source.

Also, the loan will now be fully funded at close, instead of $750 million being funded and $250 million being delayed-draw for 90 days, the source said.

As before, the term loan has a 1.5% Libor floor and hard call protection of 101 in year one, 102 in year two and 101 in year three.

Recommitments were due by the close of business on Friday, the source added.

Navistar lead banks

J.P. Morgan Securities, Goldman Sachs Lending Partners LLC, Bank of America Merrill Lynch and Credit Suisse Securities (USA) LLC are the lead banks on Navistar's term loan.

Proceeds from the new debt will be used for general corporate purposes and to repay outstanding borrowings under the company's ABL credit facility.

Navistar is a Lisle, Ill.-based manufacturer of commercial and military trucks, buses, RVs and diesel engines.

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