BJ's, Serta, CHG break; Energy Transfer, Filtration, MRC reworked; E.W. Scripps ups deadline

By Sara Rosenberg

New York, Nov. 14 - BJ's Wholesale Club Inc., Serta Simmons Holdings LLC and CHG Healthcare Services Inc. all hit the secondary market on Thursday, and Reynolds Group Holdings Inc.'s U.S. term loan dipped with refinancing news.

Over in the primary, Energy Transfer Equity LP increased the size of its term loan while trimming the spread, and Filtration Group Corp. reworked its first- and second-lien term loan sizes, pricing and original issue discounts.

Also, MRC Global Inc. (McJunkin Red Man Corp.) tightened the offer price on its term loan, and E.W. Scripps Co. accelerated the commitment deadline on its deal.

Additionally, Patriot Coal Corp., Zayo Group LLC, Western Refining Inc., Dayco Products LLC, Heartland Dental Care LLC and Survey Sampling Inc. set talk with launch, and Quintiles Transnational Corp., Landmark Aviation and Borgata (Marina District Finance Co. Inc.) surfaced with deal plans.

BJ's starts trading

BJ's Wholesale Club's term loans freed up on Thursday, with one source seeing the $1.5 billion first-lien term loan (B3/B-) due Sept. 26, 2019 at par 1/8 bid, par 5/8 offered and the $600 million second-lien term loan (Caa2/CCC) due March 31, 2020 at 101 bid, 102 offered, and another source seeing the first-lien loan at par bid, par ¾ offered and the second-lien loan at par ¾ bid, 101¾ offered.

Pricing on the first-lien loan is Libor plus 350 basis points with a 1% Libor floor and it was sold at an original issue discount of 991/2. There is 101 soft call protection for six months.

The second-lien term loan is priced at Libor plus 750 bps with a 1% Libor floor and was sold at a discount of 991/2. This debt has call protection of 102 in year one and 101 in year two.

Earlier this week, the first-lien term loan was upsized from $1.45 billion and pricing was lowered from talk of Libor plus 375 bps to 400 bps, and the second-lien loan was downsized from $650 million, pricing was cut from talk of Libor plus 775 bps to 800 bps, the discount was tightened from 99, and the call protection was changed from 103 in year one, 102 in year two and 101 in year three.

Deutsche Bank Securities Inc., Citigroup Global Markets Inc., Barclays, Jefferies Finance LLC and Morgan Stanley Senior Funding Inc. are leading the $2.1 billion deal that will be used to refinance existing term loans and fund a $453 million dividend.

BJ's, a Westborough, Mass.-based operator of warehouse clubs, will have total first-lien leverage of 4.5 times, net first-lien leverage of 4.4 times, total leverage of 5.9 times and net leverage of 5.8 times.

Serta frees up

Serta Simmons' $1.28 billion senior secured term loan B due Oct. 1, 2019 broke as well, with levels quoted by one source at par ¼ bid, par 5/8 offered and by a second source at par 3/8 bid, par ¾ offered.

Pricing on the loan is Libor plus 325 bps with a 1% Libor floor and it was issued at par. There is 101 soft call protection for six months.

Morgan Stanley Senior Funding Inc., Deutsche Bank Securities Inc., Goldman Sachs Bank USA, UBS Securities LLC and Barclays are leading the deal that will be used to reprice the company's existing term loan from Libor plus 375 bps with a 1.25% Libor floor.

Closing is expected the week of Nov. 18.

Serta Simmons is a mattress manufacturer.

CHG tops par

CHG Healthcare Services' $579 million term loan B began trading too, with levels quoted at par ¼ bid, 101¼ offered, sources said.

Pricing on the loan is Libor plus 325 bps with a 1% Libor floor and it was issued at par. There is 101 soft call protection for six months.

Earlier in the week, pricing on the loan finalized at the tight end of the Libor plus 325 bps to 350 bps talk.

Goldman Sachs Banks USA and Barclays are leading the deal that is being used to reprice an existing term loan from Libor plus 375 bps with a 1.25% Libor floor.

CHG is a Salt Lake City-based health care staffing firm.

Reynolds softens

Also in trading, Reynolds Group's U.S. term loan fell to par ¼ bid, par ¾ offered from par 7/8 bid, 101 3/8 offered as news came out that the company will be refinancing the debt, traders said.

The existing U.S. term loan due October 2018 that is priced at Libor plus 375 bps with a 1% Libor floor is being taken out with a $2,213,000,000 term loan due December 2018 that is talked at Libor plus 300 bps to 325 bps with a 1% Libor floor, a par offer price and 101 soft call protection for six months, a source remarked.

The new U.S. term loan was launched with a call at 11 a.m. ET on Thursday, as was a €297 million term loan due December 2018 that is talked at Euribor plus 325 bps to 350 bps with a 1% floor, a par offer price and 101 soft call protection for six months, the source continued.

Proceeds from the euro term loan will be used to refinance an existing euro term loan due October 2018 that is priced at Euribor plus 400 bps with a 1% floor.

Sole lead arranger, Credit Suisse Securities (USA) LLC, is asking for commitments by 5 p.m. ET on Nov. 21.

Reynolds Group is an Auckland, New Zealand-based manufacturer and supplier of consumer food and beverage packaging and storage products.

Energy Transfer reworks deal

Moving to the primary, Energy Transfer Equity raised its six-year first-lien term loan (Ba2) to $1 billion from $900 million and cut the coupon to Libor plus 250 bps from Libor plus 300 bps, while keeping the 0.75% Libor floor, original issue discount of 99¾ and 101 soft call protection for six months intact, a market source said.

Recommitments were due at 3:30 p.m. ET on Thursday, the source continued.

Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and Goldman Sachs Banks USA are joint global coordinators on the deal and joint lead arrangers with Bank of America Merrill Lynch, Bank of Tokyo-Mitsubishi, Barclays, Mizuho Securities USA Inc., Morgan Stanley Senior Funding Inc., RBC Capital Markets, RBS Securities Inc. and UBS Securities LLC.

Proceeds will be used to help refinance an existing $900 million senior secured term loan due March 2017 and to help fund a tender offer that expires on Nov. 27 for up to $400 million of the company's $1.8 billion 7½% senior notes due 2020.

As part of the refinancing, the company is finalizing a new up to $600 million five-year revolver.

Energy Transfer, a Dallas-based master limited partnership that owns natural gas, natural gas liquids, refined products and crude oil pipelines, expects to close on the deal in the first week of December.

Filtration restructures

Filtration Group increased its seven-year covenant-light first-lien term B (B1/B+) to $605 million from $565 million, lowered pricing to Libor plus 350 bps from talk of Libor plus 375 bps to 400 bps, added a step-down to Libor plus 325 bps when first-lien leverage is less than 4 times, and revised the discount to 99½ from 99, according to a market source.

Also, the eight-year covenant-light second-lien term loan (Caa1/B-) was downsized to $215 million from $235 million, pricing was cut to Libor plus 725 bps from talk of Libor plus 775 bps to 800 bps and the discount was tightened to 99 from 981/2, the source said.

Both term loans still have a 1% Libor floor, the first-lien loan still has 101 soft call protection for six months, and the second-lien loan still has call protection of 102 in year one and 101 in year two.

The company's now $895 million credit facility, for which commitments were due at the end of the day on Thursday, also includes a $75 million five-year revolver (B1/B+).

Filtration buying Porex

Proceeds from Filtration Group's credit facility will be used to help fund the purchase of Porex Corp. from Aurora Capital Group, and due to the increase in the total amount of the term loan debt, the equity contribution for the acquisition was reduced, the source remarked.

Goldman Sachs Bank USA and BMO Capital Markets Corp. are leading the deal.

Filtration Group is a Chicago-based developer, designer and manufacturer of liquid, air and fluid filtration solutions. Porex is a Fairburn, Ga.-based developer, manufacturer and distributor of porous polymer products.

MRC tweaks offer price

MRC Global changed the offer price on its $794 million covenant-light term loan due November 2019 to par from 99 7/8, according to sources, and kept pricing at Libor plus 400 bps with a step-down to Libor plus 375 bps at total net leverage of 2.5 times.

Also, the loan still has a 1% Libor floor and 101 soft call protection for six months.

Bank of America Merrill Lynch, Barclays, Goldman Sachs Bank USA and Wells Fargo Securities LLC are leading the deal that will be used to reprice a roughly $640 million term loan from Libor plus 500 bps with a 1.25% Libor floor and repay revolver borrowings

MRC is a Houston-based distributor of pipe, valve, fittings and related products and services to the energy industry.

E.W. Scripps shutting early

E.W. Scripps Co. modified the commitment deadline on its $275 million senior secured credit facility (Ba2/BB+) to Tuesday from Nov. 22 due to strong demand, according to a market source.

The facility consists of a $75 million five-year revolver and a $200 million covenant-light seven-year term loan B talked at Libor plus 275 bps with a 0.75% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months.

SunTrust Robinson Humphrey Inc. is leading the deal that will be used to refinance existing debt.

Senior and total pro forma leverage is expected to be 1.9 times.

E.W. Scripps is a Cincinnati-based media company.

Patriot Coal talk

Also on the primary front, Patriot Coal hosted its bank meeting on Thursday, launching its $250 million first-lien second-out term loan (B3) at Libor plus 725 bps to 775 bps with a 1% Libor floor, a discount of 99 and hard call protection of 102 in year one and 101 in year two, a market source said.

Also, the company's $125 million asset-based revolver was launched with talk of Libor plus 250 bps with an unused fee that can range from 37.5 bps to 50 bps, according to an 8-K filed with the Securities and Exchange Commission.

In addition, the company is getting a roughly $201 million first-lien, first-out five-year letter-of-credit facility talked at Libor plus 700 bps for the first three years, Libor plus 750 bps in year four and Libor plus 800 in year five, the 8-K filing said.

Barclays and Deutsche Bank Securities Inc. are leading the five-year deal, with Barclays the agent on the term loan and letter-of-credit facility and Deutsche the agent on the revolver.

Commitments for the term loan are due at noon ET on Nov. 25, with allocations expected on Nov. 26, and commitments for the revolver are due on Dec. 2. Closing and funding is targeted for Dec. 18.

Proceeds will be used by the St. Louis-based miner, producer and seller of thermal coal to support its emergence from Chapter 11.

Zayo launches

Zayo Group launched with a call its $1,599,750,000 term loan B due July 2, 2019 with talk of Libor plus 300 bps with a 1% Libor floor, a par offer price and 101 soft call protection for six months, according to a market source.

Proceeds will be used to reprice the existing term loan B from Libor plus 350 bps with a 1% Libor floor.

Additionally, the company is looking to reprice its $250 million revolver due July 2, 2017 at Libor plus 275 basis points, subject to a grid, the source said.

Commitments for the $1,849,750,000 senior secured credit facility are due on Tuesday.

Morgan Stanley Senior Funding Inc., Barclays and RBC Capital Markets are leading the deal.

The company had previously tried to reprice the B loan to Libor plus 300 bps with a 1% Libor floor, but that transaction was pulled in September.

Zayo is a Louisville, Colo.-based provider of fiber-based bandwidth infrastructure and network-neutral colocation and interconnection services.

Western Refining holds call

Western Refining held a call at 2 p.m. ET on Thursday to launch its $550 million senior secured term loan B (B1/BB-), and talk on the debt emerged at Libor plus 350 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, according to a market source.

Bank of America Merrill Lynch and UBS Securities LLC are leading the deal.

Proceeds from the loan and $245 million in cash on hand are being used to fund the acquisition of ACON Investments' and TPG's ownership interests in Northern Tier Energy LP for $775 million.

With the acquisition, Western Refining now owns Northern Tier Energy's general partner and 35,622,500 limited partner units, or about 38.7% of Northern Tier Energy.

The transaction was signed and closed this past Tuesday.

Western Refining is an El Paso, Texas-based refining and marketing company. Northern Tier Energy is a Ridgefield, Conn.-based downstream energy company.

Dayco discloses terms

Dayco Products came out with talk of Libor plus 350 bps to 375 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months on its $425 million seven-year term loan B (B1/B+) that launched during the session, according to a market source.

Bank of America Merrill Lynch, J.P. Morgan Securities LLC and Credit Suisse Securities (USA) LLC are leading the deal.

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

Dayco Products is a Troy, Mich.-based manufacturer and distributor of belts, tensioners, hose, pulleys and hydraulics equipment for the automotive, trucking, construction, agricultural, ATV, snowmobile and industrial markets.

Heartland guidance

Heartland Dental Care released talk of Libor plus 425 bps to 450 bps with a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months on its $160 million incremental first-lien term loan (B) that launched with a call in the morning, according to sources.

Leads, RBC Capital Markets LLC, BMO Capital Markets Corp. and Jefferies Finance LLC, are asking for commitments by Nov. 22.

Proceeds will be used to fund the acquisition of My Dentist Holdings LLC, an Oklahoma City-based dental support organization.

Closing is subject to certain regulatory and other approvals.

Heartland Dental is an Effingham, Ill.-based provider of office support services to dental offices.

Survey Sampling pricing

Survey Sampling launched during the session its $160 million term loan B with talk of Libor plus 450 bps with a 1% Libor floor and an original issue discount of 99, according to a market source.

GE Capital Markets is leading the $180 million senior credit facility that also includes a $20 million revolver.

Proceeds, along with a $53 million second-lien tranche that has been fully placed with the company's existing junior capital provider, will be used to refinance existing debt.

Survey Sampling is a Shelton, Conn.-based provider of global data collection services utilized by market research firms, consulting firms, corporate end-users and public opinion firms to conduct survey research.

Delta leads emerge

A full list of leads surfaced on Delta Air Lines Inc.'s repricing, with Barclays, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs Bank USA, Bank of America Merrill Lynch, Morgan Stanley Senior Funding Inc. and UBS Securities LLC joining left lead J.P. Morgan Securities LLC, a market source said.

As previously reported, the company is looking to reprice its roughly $1.35 billion term loan B due April 2017 to Libor plus 275 bps with a 0.75% Libor floor from Libor plus 325 bps with a 1% Libor floor.

The repriced loan, which launched with a call on Thursday, is being offered at par with 101 soft call protection for six months.

Delta is an Atlanta-based provider of scheduled air transportation for passengers and cargo.

Quintiles readies loan

Quintiles set a call for 1 p.m. ET on Friday to launch a $2,061,000,000 term loan B-3 due June 2018 that is talked at Libor plus 225 bps to 250 bps with a 1.25% Libor floor, a par offer price and 101 soft call protection for six months, according to sources.

J.P. Morgan Securities LLC is the left lead on the deal.

Proceeds will refinance the Durham, N.C.-based biopharmaceutical services company's existing term loan B-1 and B-2 debt.

Landmark on deck

Landmark Aviation scheduled a call for 10 a.m. ET on Friday to launch a $392.6 million senior secured term loan B, of which $317.6 million is for a repricing of the existing term B and $75 million is a fungible add-on, according to a market source.

Morgan Stanley Senior Funding Inc., Barclays and RBC Capital Markets are leading the deal.

Landmark Aviation is a Houston-based provider of FBO, MRO, and aircraft charter and management services.

Borgata coming soon

Borgata will hold a call at 12:30 p.m. ET on Friday to launch a $380 million covenant-light term loan B (B2) due Aug. 15, 2018 that has hard call protection of 102 in year one and 101 in year two, according to a market source.

Deutsche Bank Securities Inc. is the left lead on the deal.

Proceeds will be used to refinance the company's existing 9½% notes due 2015.

Borgata is a destination casino and resort located in Atlantic City, N.J.

Northeast Wind closes

In other news, Northeast Wind Capital II LLC completed its $320 million seven-year senior secured term loan B that is priced at Libor plus 400 bps with a 1% Libor floor and was sold at an original issue discount of 99, a news release said. The debt is non-callable for one year, then at 102 in year two and 101 in year three.

During syndication, the term loan size was increased from $315 million, pricing firmed at the low end of the Libor plus 400 bps to 425 bps talk, and the call protection was revised from non-callable for one year, then at 102 in year two.

Morgan Stanley Senior Funding Inc., Goldman Sachs Bank USA, BNP Paribas Securities Corp., KeyBanc Capital Markets LLC, Union Bank, CIT Group and ICBC led the deal that was used to refinance existing debt.

The company also got a $75 million letter-of-credit facility as part of the refinancing.

Northeast Wind Capital, the owner of a portfolio of wind projects, is a joint venture between First Wind Holdings and Emera Inc. First Wind owns 51% of the portfolio, and Emera owns the remaining 49%.

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