TGI Fridays, LA Fitness, New Albertson’s, Bayonne Energy, Akorn, World Triathlon break

By Sara Rosenberg

New York, June 24 – TGI Fridays Restaurants’ credit facility emerged in the secondary market on Tuesday with both the first- and second-lien term loans quoted above their original issue discounts, and LA Fitness International LLC, New Albertson’s Inc., Bayonne Energy Center LLC, Akorn Inc. and World Triathlon Corp. began trading as well.

Moving to the primary, Verdesian Life Sciences LLC widened the spread and original issue discount on its term loan B while also sweetening the call protection, amortization and excess cash flow sweep.

Also, Landmark Aviation lifted the size of its incremental first-lien term loan and tightened the offer price on its first- and second-lien tranches, and Creative Circle LLC revised spread and original issue discount on its second-lien loan and extended the call protection on its first-lien loan.

Additionally, American Energy – Marcellus LLC, QoLmeds/Genoa Healthcare and Ciena Corp. disclosed price talk with launch, and 4L Technologies Inc. released original issue discount guidance.

TGI Fridays tops OIDs

TGI Fridays’ credit facility freed up for trading on Tuesday, with the $440 million six-year first-lien term loan (B1/BB-) quoted on the open at 99 7/8 bid, par 3/8 offered and the $180 million seven-year second-lien term loan (Caa1/B-) quoted at 99 bid, par offered, according to one market source. Then, shortly after the break, another source saw the first-lien loan at par bid, par ½ offered and the second-lien loan at 99¼ bid, par ¼ offered.

Pricing on the first-lien term loan is Libor plus 425 basis points with a 1% Libor floor and it was sold at an original issue discount of 99½. There is 101 soft call protection for one year.

The second-lien term loan is priced at Libor plus 825 bps with a 1% Libor floor and was issued at 98½. This tranche has call protection of 103 in year one, 102 in year two and 101 in year three.

The casual dining restaurant and bar chain’s $670 million credit facility also includes a $50 million revolver (B1/BB-).

Proceeds will be used to help fund the company’s buyout by Sentinel Capital Partners and TriArtisan Capital Partners from Carlson that is expected to close by July, subject to customary conditions.

TGI Fridays lead banks

Credit Suisse Securities (USA) LLC and Jefferies Finance LLC are leading TGI Fridays’ credit facility, which underwent a number of revisions during the syndication process.

Late last week, the first-lien term loan was upsized from $425 million, the spread firmed at the tight end of the Libor plus 425 bps to 450 bps talk and the discount was tightened from 99, and the second-lien loan was downsized from $195 million, pricing was lifted from Libor plus 800 bps, and the call protection was changed from 102 in year one and 101 in year two.

In addition to the size and pricing updates, the credit agreement was changed to eliminate the carve-out for unlimited restricted payments if total net leverage is at or below 4 times, to provide that lenders will not be able to reject mandatory prepayments from sales of units existing as of the closing date in the United Kingdom, Taiwan, China or the United States, and to specify that first-lien lenders may not modify the mandatory prepayment provisions relating to the specified dispositions or the inability to reject prepayments from the specified dispositions without second-lien lender consent.

LA Fitness hits secondary

LA Fitness’ credit facility started trading in the afternoon, with the $1 billion six-year covenant-light term loan B seen at 99¼ bid, 99¾ offered, according to a trader.

Pricing on the term loan B is Libor plus 450 bps with a 1% Libor floor and it was sold at an original issue discount of 99. There is 101 soft call protection for one year.

The company’s $1.6 billion facility also includes a $350 million revolver and a $250 million term loan A.

During syndication, the term loan was downsized from $1.5 billion, the spread was raised from Libor plus 400 bps, the discount firmed at the wide end of the 99 to 99½ talk and the call protection as extended from six months, and the term loan A was upsized from $150 million.

Bank of America Merrill Lynch, BNP Paribas Securities Corp. and Barclays are leading the deal that will be used by the Irvine, Calif.-based health club chain to refinance existing debt and for general corporate purposes, and, because of the downsizing of the credit facility, the one-time repurchase of equity interests was modified.

New Albertson’s trades

New Albertson’s $850 million senior secured seven-year covenant-light term loan (Ba3/B) broke as well, with levels quoted at par ¼ bid, par ¾ offered, a trader said.

Pricing on the loan is Libor plus 375 bps with a 1% Libor floor and it was sold at a discount of 99½. There is 101 soft call protection for six months.

Recently, pricing on the loan was reduced from talk of Libor plus 400 bps to 425 bps and the discount was modified from 99.

Citigroup Global Markets Inc. is the lead arranger on the deal and a joint bookrunner with CIT.

Proceeds will be used by the Spokane, Wash.-based food and drug retailer to fund the acquisition of Safeway Inc.’s eastern division and to repay ABL borrowings.

Closing is targeted for Friday.

Bayonne frees up

Bayonne Energy Center’s credit facility began trading too, with the $525 million seven-year term loan B quoted at par ¾ bid, 101¼ offered, a trader said.

Pricing on the term loan B is Libor plus 350 bps with a 1% Libor floor and it was sold at an original issue discount of 99½. There is 101 soft call protection for one year.

During syndication, the B loan was upsized from $500 million, pricing was trimmed from talk of Libor plus 375 bps to 400 bps and the discount was modified from 99.

The company’s $555 million senior secured credit facility (Ba3/BB) also includes a $30 million five-year revolver priced at Libor plus 350 bps with no Libor floor.

Morgan Stanley Senior Funding Inc., Macquarie Capital (USA) Inc. and Credit Agricole CIB are leading the deal that will fund Arclight Capital Partners LLC’s acquisition of the remaining 50% interest in Bayonne Energy that it does not currently own, and the funds from the recent term loan upsizing will finance a dividend.

Bayonne Energy, a Bayonne, N.J., power generation facility, expects to close on the financing in late July.

Akorn starts trading

Another deal to free up was Akorn’s fungible $445 million incremental term loan (B1), with levels quoted at par ¼ bid, par ¾ offered, a trader said.

The incremental term loan is priced at Libor plus 350 bps with a 1% Libor floor, in line with the existing term loan, and was sold at an original issue discount of 99¾, after tightening the other day from talk of 99¼ to 99½. There is 101 soft call protection through October.

J.P. Morgan Securities LLC, Deutsche Bank Securities Inc., Bank of America Merrill Lynch and Wells Fargo Securities LLC are leading the deal that will be used to fund the acquisition of VPI Holdings Corp., the parent company of VersaPharm Inc., for $440 million in cash.

Closing is expected in the third quarter, subject to customary conditions, including termination of the waiting period under the provisions of the Hart-Scott-Rodino Antitrust Improvement Act of 1976.

Akorn is a Lake Forest, Ill.-based niche pharmaceutical company. VersaPharm is a Marietta, Ga.-based developer and marketer of multi-source prescription pharmaceuticals.

World Triathlon breaks

World Triathlon’s credit facility also hit the secondary market, with the $225 million seven-year first-lien covenant-light term loan seen at par ½ bid, par ¾ offered, according to a trader.

Pricing on the term loan is Libor plus 425 bps with a 1% Libor floor and it was sold at a discount of 99½. There is 101 soft call protection for one year.

Last week, the term loan was upsized from up to $220 million, the spread was cut from Libor plus 475 bps and the discount was tightened from 99.

The company’s $245 million credit facility (B2/B) also includes a $20 million five-year revolver.

UBS AG and Macquarie Capital (USA) Inc. are leading the deal that will be used to refinance existing debt and pay a dividend.

World Triathlon is a Tampa Bay, Fla.-based owner and operator of Ironman triathlon events.

Verdesian reworks deal

Switching to the primary, Verdesian Life Sciences raised pricing on its $200 million six-year covenant-light term loan B to Libor plus 500 bps from talk of Libor plus 450 bps to 475 bps, changed the original issue discount to 98½ from 99 and extended the 101 soft call protection to one year from six months, according to a market source.

Additionally, amortization on the term loan was increased to 5% per annum from 1% and the excess cash flow sweep was revised to 75% from 50%, the source said.

As before, the term loan B has a 1% Libor floor.

Recommitments for the company’s $225 million credit facility (B3/BB-), which also includes a $25 million revolver, are due at noon ET on Wednesday and allocations are expected later that afternoon, the source added.

Goldman Sachs Bank USA is leading the deal that will help fund an acquisition and refinance debt.

Verdesian is a Cary, N.C.-based provider of patented technologies for high-value specialty crops, row crops, and turf and ornamental markets.

Landmark Aviation modified

Landmark Aviation increased the size of its incremental first-lien term loan B to $255.4 million from $220.4 million, and changed the original issue discount on the first-lien loan as well as on a $105.5 million incremental second-lien term loan to 99¾ from talk of 99 to 99½, a market source said.

The first-lien term loan is still priced at Libor plus 375 bps with a 1% Libor floor, in line with the existing first-lien term loan, and has 101 soft call protection for six months, and the second-lien term loan is still priced at Libor plus 725 bps with a 1% Libor floor and has 101 hard call protection for one year.

As before, the company is also seeking a repricing of its existing second-lien term loan to Libor plus 725 bps with a 1% Libor floor from Libor plus 825 bps with a 1.25% Libor floor.

Recommitments and consents are due by 5 p.m. ET on Wednesday.

Landmark acquiring Ross

Proceeds from Landmark Aviation’s now $360.9 million of new senior secured term loans will be used to fund the purchase of Ross Aviation, a Denver-based network of fixed based operations, from Centre Partners Management LLC and management, to pay down revolver borrowings and for general corporate purposes.

The additional $35 million being raised through the first-lien term loan upsizing will be used to reduce equity in the acquisition of Ross Aviation and put cash on the balance sheet, the source added.

Closing is expected during the second half of this year, subject to satisfaction of customary conditions.

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

Creative Circle updated

Creative Circle widened pricing on its $35 million second-lien term loan (Caa1/CCC+) to Libor plus 850 bps from Libor plus 800 bps and the original issue discount to 98½ from 99, according to a market source.

The second-lien loan still has a 1% Libor floor and call protection of 102 in year one and 101 in year two.

Another change made was that the 101 soft call protection on the $150 million first-lien term loan (B1/B+) was pushed out to one year from six months, the source remarked. Pricing on this tranche was unchanged at Libor plus 450 bps with a 1% Libor floor and an original issue discount of 99.

The company’s $200 million credit facility, which allocated on Tuesday, also includes a $15 million revolver (B1/B+).

Societe Generale is leading the deal that will be used to refinance existing debt and fund a dividend.

Creative Circle, a Los Angeles-based provider of specialized freelance and permanent staffing for advertising, creative and digital/IT marketing talent, has senior leverage of 3.7 times and total leverage of 4.5 times.

American Energy guidance

Also in the primary, American Energy – Marcellus held its bank meeting on Tuesday morning, launching its $750 million six-year first-lien covenant-light term loan (B-) with talk of Libor plus 450 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, a market source said.

In addition, the $450 million seven-year second-lien covenant-light term loan (CCC) was launched at Libor plus 800 bps with a 1% Libor floor, a discount of 98 and call protection of 102 in year one and 101 in year two, the source continued.

Commitments for the $1.2 billion in senior secured term loans are due at 5 p.m. ET on July 8 and closing is targeted for Aug. 4.

Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and Jefferies Finance LLC are leading the deal.

American Energy buying assets

Proceeds from American Energy – Marcellus’ loans will be used to fund the acquisition of about 48,000 net acres of leasehold in Doddridge, Harrison, Marion, Tyler and Wetzel Counties, W.Va., from East Resources Inc. and an unnamed private company.

Also, $300 million of the first-lien term loan will be used to fund a capital expenditures reserve account.

American Energy – Marcellus is an American Energy Partners LP platform company. Oklahoma City-based American Energy Partners was founded by Aubrey K. McClendon in April 2013 to capitalize on opportunities available in unconventional resource plays onshore in the United States.

QoLmeds launches

QoLmeds/Genoa Healthcare announced talk of Libor plus 500 bps with a 1% Libor floor and an original issue discount of 99 on its $285 million six-year covenant-light term loan that launched with a bank meeting, according to a market source.

The company’s $315 million credit facility (B2/B) also includes a $30 million five-year revolver.

Commitments are due on July 8, the source added.

Jefferies Finance LLC and Credit Suisse Securities (USA) LLC are leading the deal that will be used with equity to fund QoLmeds acquisition of Genoa.

QoLmeds is a Pittsburgh-based specialty pharmacy serving the mental health community. Genoa is a Tukwila, Wash.-based provider of pharmacy, phlebotomy and laboratory services.

Ciena sets talk

Ciena came out with talk of Libor plus 300 bps to 325 bps with a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months on its $250 million five-year term loan B (Ba2/BB-) that launched with a meeting during the session, according to a market source.

Commitments are due on July 8, the source said.

Bank of America Merrill Lynch and Deutsche Bank Securities Inc. are leading the deal that will be used for general corporate purposes and to add cash to the balance sheet.

Ciena is a Hanover, Md.-based supplier of communications networking equipment and software.

4L discloses offer price

4L Technologies launched with a call its $110 million add-on covenant-light term loan B (B2) with original issue discount talk of 99, a source remarked.

Pricing on the add-on matches the existing term loan at Libor plus 450 bps with a 1% Libor floor.

Commitments are due at noon ET on July 1, the source added.

Bank of America Merrill Lynch and GE Capital Markets are leading the deal that will be used to fund the acquisition of MSE, a producer of OEM-alternative printer cartridges.

4L Technologies is a Hoffman Estates, Ill.-based printer cartridge and mobile phone remanufacturer.

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