Harvard, Deltek, Terex, Telx break; RadNet, Zayo, Gray TV, David's Bridal update deals

By Sara Rosenberg

New York, Oct. 4 - Harvard Drug Group LLC lowered pricing on its term loan B on Thursday, asked for commitments by early afternoon and then freed up for trading, and Deltek Inc., Terex Corp. and Telx Group broke as well.

Moving to the primary market, RadNet Inc. increased the size of its term loan B and firmed the coupon at the low end of guidance, and Zayo Group LLC finalized the spread on its B loan at the high side of talk.

Also, Gray Television Inc. reduced the size of its term B, set pricing at the tight end of talk, added a step-down and revised the original issue discount, David's Bridal Inc. upsized its B loan, trimmed the spread and added a step-down, and Mitel Networks Corp. pulled its loan.

Furthermore, Landmark Aviation, Blue Coat Systems Inc., Astoria Generating, Cunningham Lindsey Group Ltd., Wilsonart International Holdings LLC, Peak 10 and ComPsych Corp. released price talk, and Nexeo Solutions LLC disclosed original issue discount guidance with launch.

MRC Global Inc. and Western Dental Services Inc. announced new deal plans.

Harvard starts trading

Harvard Drug Group's credit facility hit the secondary market on Thursday, with the $345 million seven-year term loan B quoted at 99 7/8 bid, par 3/8 offered, according to a market source.

Earlier in the day, the spread on the B loan was trimmed to Libor plus 475 basis points from Libor plus 500 bps, while the 1.25% Libor floor, original issue discount of 99 and 101 soft call protection for one year were unchanged, the source said.

The term loan B includes a $45 million delayed-draw tranche that has a ticking fee of half the spread after 30 days from close, stepping up to the full spread after 60 days.

Morgan Stanley & Co. and Deutsche Bank Securities Inc. are leading the $380 million senior secured credit facility (B1/B+), which also provides for a $35 million five-year revolver.

Proceeds will be used by the Livonia, Mich.-based independent pharmaceutical distributor to refinance debt and finance the acquisition of the Rugby Group Inc. and another company.

Deltek frees up

Also breaking for trading was Deltek, with its $450 million first-lien term loan (B1/B+) quoted at 99½ bid, par ½ offered and its $200 million second-lien term loan (Caa2/CCC+) quoted at 99½ bid, according to a trader.

Pricing on the first-lien term loan, which was upsized from $425 million, is Libor plus 475 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.

Meanwhile, the second-lien loan, which was downsized from $225 million, is priced at Libor plus 875 bps with a 1.25% Libor floor, and was sold at a discount of 981/2. The debt has call protection of 103 in year one, 102 in year two and 101 in year three.

Deltek getting revolver

Deltek's $680 million senior secured credit facility, led by Jefferies Finance LLC and RBC Capital Markets, also includes a $30 million revolver.

Proceeds will help fund the purchase of the company by Thoma Bravo LLC for $13 per share, or about $1.1 billion.

Closing is expected in the fourth quarter, subject to customary conditions and regulatory approvals.

Deltek is a Herndon, Va.-based provider of enterprise software and information for professional services firms and government contractors.

Terex tops par

Terex's roughly $460 million term loan freed up on Thursday at par bid, par ¾ offered and then the bid moved up to par 1/2, according to a trader.

Pricing on the term loan is Libor plus 350 bps with a 1% Libor floor.

The company is also getting a roughly €200 million term loan priced at Euribor plus 400 bps with a 1% floor.

Proceeds are being used to refinance a U.S. term loan priced at Libor plus 400 bps with a 1.5% Libor floor and a euro term loan priced at Euribor plus 450 bps with a 1.5% floor.

Credit Suisse Securities (USA) LLC is the lead bank on the deal.

Terex is a Westport, Conn.-based diversified manufacturer.

Telx hits secondary

Telx Group saw its $361.8 million term loan B due Sept. 26, 2017 break, with levels quoted at par ½ bid, 101½ offered, according to a market source.

Pricing on the loan is Libor plus 500 bps with a 1.25% Libor floor, and it was sold at an original issue discount of 993/4. There is 101 soft call protection for one year.

Of the total term loan amount, $326.8 million is repricing an existing term loan from Libor plus 650 bps with a 1.25% Libor floor and $35 million is incremental debt that will be used for general corporate purposes.

The company is also getting a $15 million in incremental revolver that was upsized from $10 million.

Morgan Stanley Senior Funding Inc. and TD Securities (USA) LLC are the lead banks on the $376.8 million deal (B1/B).

Telx is a New York-based provider of interconnection and colocation facilities.

RadNet tweaks deal

Over in the primary, RadNet made some changes to its credit facility, including lifting the size of the six-year term loan B to $350 million from $330 million and finalizing the spread at Libor plus 425 bps, the tight end of the Libor plus 425 bps to 450 bps talk, according to a market source.

As before, the B loan has a 1.25% Libor floor, an original issue discount of 99 and 101 soft call protection for one year.

Included in the company's now $451.25 million senior secured credit facility (Ba3/B+), up from $431.25 million, is a $101.25 million five-year revolver.

Prior to launch last month the revolver size was talked in the $100 million to $125 million revolver area.

RadNet readies allocations

With the changes, RadNet asked lenders to get their recommitments in by 5 p.m. ET on Thursday and the expectation is that the deal could allocate as soon as Friday, the source remarked.

Barclays, GE Capital Markets, RBC Capital Markets LLC and Deutsche Bank Securities Inc. are leading the transaction that will be used to refinance an existing senior secured credit facility.

RadNet, a Los Angeles-based owner and operator of fixed-site diagnostic imaging centers, will have senior secured leverage of 2.9 times and total leverage of 4.4 times.

Zayo firms coupon

Zayo set pricing on its roughly $1.62 billion term loan B due July 2, 2019 at Libor plus 400 bps, the high end of the Libor plus 375 bps to 400 bps guidance, a source said, adding that the 1.25% Libor floor, par offer price and 101 soft call protection through July 2, 2013 were unchanged.

Proceeds are being used to reprice the existing term loan B from Libor plus 587.5 bps with a 1.25% Libor floor.

Upon completion of the repricing, the term loan B was quoted at 101 bid, 101½ offered in the secondary market, unchanged from Wednesday's levels, the source remarked.

Morgan Stanley Senior Funding Inc. and Barclays are leading the $1.87 billion senior secured credit facility, which also includes a $250 million revolver due July 2, 2017.

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

Gray Television reworked

Gray Television trimmed its term loan B (B2/B+) to $555 million from $575 million, firmed pricing at Libor plus 375 bps, the tight end of the Libor plus 375 bps to 400 bps guidance, added a step-down to Libor plus 350 bps based on leverage and modified the original issue discount to 99½ from 99, a source said.

The loan still has a 1% Libor floor and 101 soft call protection for one year.

The company is also getting a $40 million super-priority revolver (Ba3/BB-) as part of its now $595 million senior secured credit facility.

Recommitments are due at 5 p.m. ET on Friday and allocations are expected next week, the source continued.

Gray Television refinancing

Proceeds from Gray Television's credit facility and $300 million of senior notes will be used to repurchase up to $268.5 million of its 10½% senior secured second-lien notes due 2015 in a tender offer that expires on Oct. 22 and redeem outstanding shares of its series D perpetual preferred stock.

The notes priced in September at 99.266 to yield 7 5/8% after being upsized from $250 million, which resulted in the term loan B being reduced to $557 million from an originally anticipated amount of $625 million.

Wells Fargo Securities LLC and Bank of America Merrill Lynch are the lead banks on the credit facility.

Gray Television is an Atlanta-based television broadcast company.

David's revises deal

Also on the topic of changes, David's Bridal increased its covenant-light term loan B (B2/B) to $525 million from $500 million, reduced pricing to Libor plus 400 bps from Libor plus 425 bps and added a step-down to Libor plus 375 bps at 5¼ times total leverage, according to a market source.

As before, the loan has a 1.25% Libor floor and an original issue discount of 99.

The upsizing was done because the company decided to downsize its bond offering to $250 million from $270 million.

Recommitments are due at noon ET on Friday, the source said.

The company's $645 million credit facility also includes a $125 million ABL revolver.

David's being acquired

Proceeds from David's Bridal's credit facility and notes will fund its buyout by Clayton, Dubilier & Rice for about $1.05 billion from Leonard Green & Partners, who will retain a minority interest in the company.

Bank of America Merrill Lynch, Barclays, Goldman Sachs & Co., Morgan Stanley Senior Funding Inc., Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. are leading the bank deal.

Closing is expected in the fourth quarter.

David's Bridal is a Conshohocken, Pa.-based specialty retailer of bridal gown and wedding-related apparel and accessories.

Mitel cancels refi

Mitel removed from market its $330 million senior secured credit facility (B1/B) that was going to be used to refinance existing debt, according to a market source.

The facility consisted of a $40 million five-year revolver, and a $290 million seven-year term loan B that was talked at Libor plus 600 bps to 625 bps with a 1.25% Libor floor, an original issue discount of 98 and soft call protection of 102 in year one and 101 in year two.

Bank of America Merrill Lynch and RBC Capital Markets LLC were leading the deal.

Mitel is a Kanata, Ontario-based provider of business communications and collaboration software and services.

Landmark Aviation pricing

In more primary news, Landmark Aviation, a Tempe, Ariz., provider of aftermarket services to the business aviation industry, held a bank meeting on Thursday morning, and with the launch, price talk on its first-and second-lien term loans was disclosed, according to a market source.

The $260 million seven-year first-lien term loan B is talked at Libor plus 425 bps to 450 bps with a 1.25% Libor floor, an original issue discount of 99 and 101 soft call protection for one year.

And, the $130 million eight-year second-lien term loan is talked at Libor plus 800 bps to 825 bps with a 1.25% Libor floor, a discount of 98 to 99 and hard call protection of 102 in year one and 101 in year two, the source said.

Commitments are due on Oct. 18 for the $465 million deal, which also includes a $75 million five-year revolver and will be used to fund the company's buyout by Carlyle Group LP, the source added.

Morgan Stanley & Co., RBC Capital Markets and Barclays are leading the transaction.

Blue Coat launches

Blue Coat Systems revealed talk of Libor plus 450 bps to 475 bps with a 1.25% Libor floor and 101 soft call protection for one year on its $500 million term loan due 2018 that is being offered at an original issue discount of 99 to 99½ for new money, and at par for rollover commitments, a source said.

Jefferies & Co. is leading the deal that launched with a bank meeting during the session.

Commitments are due on Oct. 12, the source continued.

Proceeds will be used to refinance a first-lien term loan originally sized at $360 million that is priced at Libor plus 600 bps with a 1.5% Libor floor and a second-lien term loan originally sized at $115 million that is priced at Libor plus 1,000 bps with a 1.5% Libor floor.

With the refinancing, existing first-lien lenders are getting paid down at 101 and existing second-lien lenders are getting paid down at 103.

Blue Coat is a Sunnyvale, Calif.-based web security company.

Astoria reveals guidance

Astoria Generating's $425 million term loan due 2018 was launched with talk of Libor plus 550 bps to 600 bps with a 1.25% Libor floor, an original issue discount of 98 and 101 soft call protection for one year, according to a market source.

In addition to the term loan, the company is getting a $25 million revolver due 2017 as part of its $450 million credit facility (B2).

Goldman Sachs & Co., Morgan Stanley Senior Funding Inc. and Bank of America Merrill Lynch are leading the deal that will be used to refinance first- and second-lien debt.

Astoria Generating is an owner of three operating electric power generation facilities in New York.

Cunningham details

Cunningham Lindsey launched on Thursday its $395 million covenant-light seven-year term loan B with talk of Libor plus 400 bps to 425 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.

And, the company's $125 million 71/2-year covenant-light second-lien term loan was launched at Libor plus 800 bps to 825 bps with a 1.25% floor and a discount of 98 to 981/2, and includes hard call protection of 103 in year one, 102 in year two and 101 in year three, the source said.

Bank of America Merrill Lynch, Morgan Stanley Senior Fund Inc., RBC Capital Markets and UBS Securities LLC are leading the $660 million deal that also provides for a $140 million five-year revolver.

Proceeds will help fund the company's buyout by an investment group led by CVC Capital Partners from Stone Point Capital.

Cunningham Lindsey is a Tampa, Fla.-based provider of independent loss adjusting and claims management services.

Wilsonart holds meeting

Wilsonart hosted its bank meeting and launched its $425 million term loan B with talk of Libor plus 375 bps to 400 bps with a 1.25% Libor floor and an original issue discount of 99, according to a market source.

The company's $600 million credit facility also includes a $175 million revolver.

Lead banks, Deutsche Bank Securities Inc., Barclays, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc. and UBS Securities LLC, are seeking commitments by Oct. 19, the source remarked.

Proceeds will be used to fund Clayton, Dubilier & Rice, LLC's acquisition of a 51% stake in Wilsonart, which is a newly formed subsidiary of Illinois Tool Works Inc., while Illinois Tool will retain a 49% equity interest in the company.

Closing is expected to in the fourth quarter.

Wilsonart is a manufacturer of decorative surfaces products.

Peak 10 sets talk

Peak 10 came out with guidance of Libor plus 500 bps to 525 bps with a 1.25% Libor floor, an original issue discount of 99 and 101 soft call protection for one year on its $300 million seven-year term loan B that launched with a bank meeting on Thursday, according to sources.

The company's $330 million senior secured credit facility, for which commitments are due on Oct. 18, also provides for a $30 million six-year revolver.

RBC Capital Markets, Barclays, GE Capital Markets and Morgan Stanley Senior Funding Inc. are leading the deal that will be used to refinance existing debt and fund a dividend.

Peak 10 is a Charlotte, N.C.-based operator of data centers.

ComPsych guidance

ComPsych also released price talk, launching its $63.5 million term loan B at Libor plus 450 bps with a 1.5% Libor floor and an original issue discount of 99, according to a market source.

UBS Securities LLC is the lead bank on the deal.

ComPsych, a Chicago-based provider of employee assistance programs and behavioral health, employee wellness, work-life and absence management services, will use the new term loan B to fund a dividend payment.

Nexeo OID emerges

Nexeo Solutions held its call in the morning to launch a $150 million to $200 million incremental term loan due Sept. 9, 2017, which investors are being offered at an original issue discount of 98, according to sources.

As already reported, pricing on the add-on matches existing term loan B pricing at Libor plus 350 bps with a 1.5% Libor floor.

Lead banks, Bank of America Merrill Lynch, Barclays, Citigroup Global Markets Inc. and Deutsche Bank Securities Inc., are asking for commitments by noon ET on Wednesday.

Proceeds will be used to pay down ABL revolver borrowings and for general corporate purposes.

Nexeo is a The Woodlands, Texas-based distributor of chemicals, plastics and composites.

MRC coming soon

MRC scheduled a bank meeting for Tuesday to launch a $750 million seven-year senior secured term loan B (B2) that is being led by Goldman Sachs & Co., Bank of America Merrill Lynch, Barclays and Wells Fargo Securities LLC, according to a market source.

Proceeds, along with ABL credit facility borrowings, will refinance $861 million in outstanding 9½% senior secured notes due 2016.

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

Western Dental joins calendar

Western Dental Services set a bank meeting for Oct. 11 to launch $300 million senior secured credit facility that consists of a $25 million revolver and a $275 million term loan, according to a market source.

Jefferies & Co. and BMO Capital Markets Corp. are the leading the deal that will be used to help fund the buyout of the company by New Mountain Capital LLC.

Leverage is 4.1 times and there is 52% equity, the source added.

Western Dental is an Orange, Calif.-based dental and oral health maintenance organization.

Rexnord wraps

In other news, Rexnord LLC's repricing deal firmed at initial terms, so that pricing on the $945 million covenant-light first-lien term loan is being revised to Libor plus 350 bps with a 1% Libor floor from Libor plus 400 bps with a 1% floor, according to a market source.

The repriced loan has 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC is leading the deal.

Rexnord is a Milwaukee-based industrial company comprising two strategic platforms: process & motion control and water management.

Allison closes

Allison Transmission Inc. completed its $300 million add-on term loan B-3 on Thursday, according to an 8-K filed with the Securities and Exchange Commission.

Pricing on the loan, which was upsized from $250 million, is Libor plus 325 bps with a 1% Libor floor, and it was sold at an original issue discount of 99 7/8, after tightening during syndication from 993/4. There is 101 soft call protection through August 2013.

Bank of America Merrill Lynch led the deal that was used to repay non-extended term loan borrowings.

Allison is an Indianapolis-based automatic transmission company.

Kindred closes add-ons

Kindred Healthcare Inc. closed on its $100 million senior secured term loan B and $100 million incremental senior secured asset-based revolver, according to a news release.

Pricing on the B loan due June 1, 2018 is Libor plus 375 bps with a 1.5% Libor floor, in line with existing term loan pricing. It was sold at an original issue discount of 971/2, after firming at the tight end of the 97 to 97½ talk.

J.P. Morgan Securities LLC led the deal that was used to refinance borrowings under the company's existing ABL facility.

Kindred Healthcare is a Louisville, Ky.-based health care services company.

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