Ceridian, Presidio break; Dean Foods bid up; Avis sets discount; WaveDivision lifts size

By Sara Rosenberg

New York, Aug. 8 - Ceridian Corp. tightened the original issue discount on its term loan and then freed up for trading late Wednesday, and Presidio Inc.'s credit facility hit the secondary market too.

Also in trading, Dean Foods Co.'s term loans were bid higher on the back of news of an initial public offering by its wholly owned subsidiary, WhiteWave Foods Co.

Over in the primary, Avis Budget Car Rental LLC finalized the original issue discount on its add-on term loan C at the tight end of guidance and accelerated the commitment deadline, and WaveDivision Holdings LLC upsized its term loan B.

Additionally, Mediacom Broadband Group released discount guidance on its term loan G in connection with a morning conference call, Rock Ohio Caesars (ROC Finance LLC) launched new term loans and Immucor Inc. brought a repricing.

Furthermore, RCN Cable started circulating price talk on its credit facility ahead of its bank meeting, Genesee & Wyoming Inc. disclosed plans to bring its pro rata bank debt to market next week, Warner Chilcott plc came out with timing on its new term loan debt, and Allison Transmission Inc. and USI Holdings Corp. will be bringing new term loans as well.

Ceridian starts trading

Ceridian modified the original issue discount on its $342 million term loan due May 2017 to 98½ from 98, and then broke for trading on Wednesday at 99 bid, par offered, according to a market source.

Pricing on the loan is Libor plus 575 basis points, in line with the coupon on the existing term loan that has the same maturity.

The new loan has 101 soft call protection for one year, and the company is asking to amend its credit facility to allow for the debt to be fungible with the existing term loan.

Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC and Bank of America Merrill Lynch are leading the deal.

Proceeds will be used by the Minneapolis-based provider of human resources, transportation and retail information management services to refinance about $342 million of non-extended term loan debt.

Presidio frees up

Presidio's credit facility allocated as well, with the $385 million term loan B due March 2017 quoted at 99½ bid, par ¼ offered, according to sources.

Pricing on the B loan, which was downsized from $400 million since the company had extra liquidity, is Libor plus 450 bps with a 1.25% Libor floor, and it was sold at an original issue discount of 991/2. There is 101 soft call protection for one year.

Barclays Capital Inc., J.P. Morgan Securities LLC and Morgan Stanley Senior Funding Inc. are the bookrunners on the deal that is expected to close on Thursday. PNC Bank is the administrative agent.

The $437.5 million credit facility (Ba3/B+) also includes a $52.5 million revolver.

Proceeds will be used to refinance existing bank debt.

Presidio is a Greenbelt, Md.-based provider of advanced technology infrastructure services.

Dean Foods rises

Dean Foods' old term loan and 2016 term loan were better bid in trading as the company said late Tuesday that it would pay down some of its senior secured credit facility debt with proceeds from an initial public offering by WhiteWave, according to a trader.

In addition, WhiteWave will distribute to Dean Foods net proceeds from $800 million to $925 million in new credit facility borrowings, which will also be used for the paydown.

With the news, the old term loan was quoted at 98¾ bid, 99½ offered, versus 98½ bid, 99½ offered, and the 2016 term loan was quoted at 99¾ bid, par ¼ offered, compared to 99½ bid, par ½ offered, the trader said.

The company's 2017 term loan was unchanged at par bid, par ½ offered, the trader added.

Dean Foods is a Dallas-based food and beverage company.

Orbitz holds steady

Orbitz Worldwide Inc.'s term loan was relatively flat in the secondary at 96 bid, 97 offered, despite the release of earnings that showed a year-over-year decline and the revision of full-year estimates lower, according to a trader.

For the second quarter, the company reported net income of $4.6 million, or $0.04 per diluted share, compared with net income of $8.9 million, or $0.08 per diluted share, in the prior year.

Net revenue for the quarter was $201 million, down slightly from $202 million in the second quarter of 2011.

And, adjusted EBITDA was $32 million versus $39 million last year.

Orbitz changes outlook

Also on Wednesday, Orbitz revised its adjusted EBITDA outlook for full-year 2012 to between flat and up 5%, from prior expectations of between up 7% to 12%.

Additionally, net revenue for the year is now expected to rise between 2% and 4% on a year-over-year basis, compared to the previous estimate of an increase of between 4% and 8%.

The company said in a news release that the adjusted guidance reflects the deterioration in economic conditions in Europe, weaker air volume in the U.S. online travel company channel and foreign exchange headwinds.

Orbitz is a Chicago-based online travel company.

Avis firms OID

Moving to the primary, Avis Budget Car Rental set the original issue discount on its $200 million add-on term loan C due 2019 at 99, the low side of the 98½ to 99 talk, and asked lenders for commitments by 5 p.m. ET on Wednesday, moved up from an original deadline of noon ET on Thursday, according to a market source.

As before, pricing on the add-on is Libor plus 325 basis points with a 1% Libor floor, which matches the pricing on the existing term loan C.

J.P. Morgan Securities LLC, Barclays, Bank of America Merrill Lynch and Deutsche Bank Securities Inc. are leading the deal that will be used to refinance the company's term loan B due 2018 that is priced at Libor plus 500 bps with a 1.25% Libor floor.

Avis is a Parsippany, N.J.-based vehicle rental operator.

WaveDivision ups loan

WaveDivision increased its term loan B to $500 million from $470 million, while keeping pricing at Libor plus 425 bps with a 1.25% Libor floor and an original issue discount of 99, according to a market source. There is 101 soft call protection for one year.

Earlier in syndication, the coupon on the loan was lowered from talk of Libor plus 450 bps to 500 bps and a ticking was added that starts on Sept. 17 at half the spread and increases to the full spread on Nov. 1.

The company's upsized $550 million credit facility (Ba3/BB-) also provides for a $50 million revolver.

Allocations are hoped to go out on Thursday, the source continued.

WaveDivision being acquired

Proceeds from WaveDivision's credit facility will be used to help fund its purchase by Oak Hill Capital Partners, GI Partners and management from Sandler Capital Management.

As a result of the change to the term loan B size, the equity for the buyout is being reduced by $30 million, the source added.

Wells Fargo Securities LLC, Deutsche Bank Securities Inc. and RBC Capital Markets LLC are the lead banks on the deal.

Closing is expected next quarter, subject to regulatory approvals and customary conditions.

WaveDivision is a Kirkland, Wash.-based owner and operator of broadband cable systems.

Mediacom discount emerges

Mediacom held a conference call on Wednesday morning to kick off syndication on its proposed $200 million term loan G (Ba3/BB-) due January 2020, and shortly ahead of the launch, original issue discount talk of 97½ to 98 was announced on the debt, according to a market source.

Price talk of Libor plus 300 bps with a 1% Libor floor had come out when plans for the loan were first announced, but at that time, the discount was described as to be determined.

Also, it was revealed that there is 101 soft call protection for one year, the source added.

J.P. Morgan Securities LLC and Bank of America Merrill Lynch are the joint lead arrangers on the deal and bookrunners with Wells Fargo Securities LLC, Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, SunTrust Robinson Humphrey Inc. and RBC Capital Markets LLC.

The Middletown, N.Y.-based cable operator is seeking commitments by Aug. 14.

Proceeds will be used by to repay revolver borrowings and for general corporate purposes.

Rock Ohio comes to market

Rock Ohio Caesars announced in the morning that it would be holding a call in the afternoon to launch $150 million in new term loan debt due August 2017 that is talked at Libor plus 700 bps with a 1.5% Libor floor and an original issue discount of 99, according to a market source.

The debt includes a $110 million first-lien incremental term loan and a $40 million delayed-draw term loan that has a 225 bps ticking fee, the source said, adding that the tranches are non-callable through August 2013, then at 102 for a year and at 101 for another year.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Wells Fargo Securities LLC are leading the deal that will fund the gaming facility at the Thistledown Racetrack.

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

Immucor launches

Immucor launched with a call in the afternoon a repricing of its $612 million term loan B and plans to remove the net secured leverage requirement so that the tranche will be covenant-light, sources said.

Under the proposal, pricing would got to Libor plus 450 bps with a 1.25% Libor floor from Libor plus 575 bps with a 1.5% Libor floor, and the 101 soft call protection would be extended for one year.

Consents are due at 5 p.m. ET on Aug. 15, sources remarked.

Citigroup Global Markets Inc., J.P. Morgan Securities LLC and UBS Securities LLC are leading the deal.

Immucor is a Norcross, Ga.-based provider of automated instrument-reagent systems to the blood transfusion industry.

RCN Cable floats talk

RCN Cable began going out with price talk on its roughly $672 million credit facility as the company is getting ready to launch the deal to investors with a bank meeting at 10 a.m. ET on Thursday, according to a market source.

The $40 million three-year revolver and around $47 million four-year term loan A are being talked at Libor plus 400 bps with no Libor floor, and the $585 million four-year term loan B is being talked at Libor plus 425 bps with a 1.25% Libor floor and 101 soft call protection for one year, the source said.

Official original issue discount talk on the term loan B is expected to come out at launch, but ahead of the meeting, investors are being told to expect an offer price around 991/2, the source continued.

Lead banks, SunTrust Robinson Humphrey Inc., GE Capital Markets and TD Securities (USA) LLC, will be asking for commitments by Aug. 16.

RCN, a broadband services provider, will use the new deal to refinance existing loan debt.

Genesee readies pro rata

Genesee & Wyoming scheduled a bank meeting for Monday to launch its $1.3 billion of pro rata debt, comprised of a $425 million five-year revolver and an $875 million five-year term loan A, both talked at Libor plus 250 basis points, a market source said.

The company's $2.3 billion senior secured credit facility also includes a $1 billion seven-year term loan B that is not being launched yet.

Pricing on the B loan is expected at Libor plus 375 bps with a 1% Libor floor, and there is 101 soft call protection for one year, according to filings with the Securities and Exchange Commission.

Bank of America Merrill Lynch is the lead bank on the deal.

Genesee buying RailAmerica

Proceeds from Genesee & Wyoming's credit facility and $800 million of equity or equity-linked securities from the Carlyle Group will fund the acquisition of RailAmerica Inc. for $27.50 per share and refinance existing debt.

At close, which is targeted for the fourth quarter subject to customary conditions, shareholder approval and regulatory approval, about $125 million of the revolver is expected to be drawn.

Pro forma total debt to EBITDA is expected to be 4 times at the end of 2012.

Genesee & Wyoming is a Greenwich, Conn.-based operator of short line and regional freight railroads and provider of railcar switching services. RailAmerica is a Jacksonville, Fla.-based owner and operator of short line and regional freight railroads.

Warner timing surfaces

Warner Chilcott set a conference call for 2 p.m. ET on Thursday to launch its previously announced $600 million of new senior secured term loans (Ba3), according to a market source.

With timing, it was disclosed that the debt will include a $300 million term loan B-5 due August 2017 that has amortization of 10% in year one, 20% in years two to four, and 30% in year five.

There will also be a $300 million term loan B-6 due March 2018 that is talked at Libor plus 325 bps with a 1% Libor floor and an original issue discount that is still to be determined, the source said.

Lead banks, Bank of America Merrill Lynch and Goldman Sachs & Co., will be seeking commitments by Aug. 15.

Warner paying dividend

Proceeds from Warner Chilcott's term loans will be used, along with cash on hand, to finance a special dividend to ordinary shareholders of $4 per share, or about $1 billion in total.

Leverage will be around 2.75 times, versus 2.3 times at the end of June, company officials said in a conference call on Wednesday morning.

Payment of the dividend is conditioned on the amendment of the existing credit facility to allow for the new debt.

Closing is expected before the end of the third quarter.

Warner Chilcott is a Dublin-based specialty pharmaceutical company.

Allison coming soon

Allison Transmission will be holding a conference call on Thursday to launch a $500 million term loan that will be used to repay some of non-extended term debt, according to a market source.

Bank of America Merrill Lynch, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Deutsche Bank Securities Inc. and Barclays Capital Inc. are the lead banks on the deal.

Allison is an Indianapolis-based automatic transmission company.

USI plans loan

USI Holdings has scheduled a conference call for 1 p.m. ET on Thursday to launch a $100 million incremental term loan due May 2014, according to a market source.

Goldman Sachs Lending Partners LLC and J.P. Morgan Securities LLC are leading the deal that will be used for general corporate purposes, including potential acquisitions.

USI is a Briarcliff Manor, N.Y.-based distributor of property and casualty insurance and employee benefits products.

Windstream wraps

In other news, Windstream Corp.'s amendment and restatement has been approved, providing for $900 million of new term loans (Baa3/BB+), according to a news release.

The debt includes a $600 million seven-year term loan B-3 priced at Libor plus 300 bps with a 1% Libor floor, and a $300 million five-year term loan A-4 priced at Libor plus 225 bps (subject to a grid) with no Libor floor.

The B-3 loan, which saw a pricing flex from talk of Libor plus 325 bps to 350 bps during syndication, was sold at an original issue discount of 99 and has 101 soft call protection for one year.

Windstream lead banks

J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Barclays, Citigroup Global Markets Inc., CoBank, Goldman Sachs & Co., Morgan Stanley Senior Funding Inc., RBC Capital Markets LLC, RBS Securities Inc., SunTrust Robinson Humphrey Inc., Union Bank of California and Wells Fargo Securities LLC led Windstream's deal.

Proceeds are being used to pay down existing revolver borrowings and for working capital needs.

Windstream is a Little Rock, Ark.-based provider of advanced communications and technology services, including managed services and cloud computing.

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