Ineos dips on repricing; Ocean Rig breaks; Ikaria, SBA Communications, Dunkin' update deals

By Sara Rosenberg

New York, Feb. 3 - Ineos' term loans headed lower in trading on Monday as the company announced repricing plans, and Ocean Rig (Drillships Financing Holding Inc.) saw its add-on term loan B-1 hit the secondary market.

Over in the primary, Ikaria Inc. revised its first- and second-lien term loan sizes, while also tightening spreads and original issue discounts, SBA Communications Corp. upsized its term loan B, firmed pricing at the low end of guidance and modified the offer price, and Dunkin' Brands Group Inc. finalized the coupon on its 2017 term loan.

Also, Roundy's Supermarkets Inc., Atlantic Power LP and Viva Alamo LLC (Alamo Portfolio) released price talk with launch, timing came out on Dealertrack Technologies' credit facility, and Accellent Inc., Hyland Software Inc., Kronos Worldwide Inc., INC Research LLC and YP LLC emerged with deal plans.

Ineos softens

Ineos' term loan were weaker in the secondary market on Monday as news emerged that the company will launch a repricing of its existing roughly $2,607,000,000 and €841 million senior secured covenant-light term loans due May 4, 2018, as well as an amendment to certain provisions of its credit agreement, according to a trader.

The U.S. 2018 term loan was quoted at par bid, par ¼ offered, down from par ¼ bid, par ½ offered, and the company's roughly $370 million term loan due May 4, 2015 was quoted at par bid, par ½ offered, down from par 1/8 bid, par 5/8 offered, the trader said.

Current pricing on the U.S. 2018 term loan is Libor plus 300 basis points with a 1% Libor floor, and current pricing on the euro term loan is Euribor plus 325 bps with a 1% floor. The 2015 term loan is priced at Libor plus 200 bps with no floor.

Barclays and Bank of America Merrill Lynch are leading the deal that will launch with a call at 9 a.m. ET on Tuesday.

Ineos is a Switzerland-based manufacturer of petrochemicals, specialty chemicals and oil products.

Ocean Rig starts trading

Ocean Rig's $821 million add-on to its term loan B-1 due in 2021 broke for trading during the session, with levels quoted at 102¼ bid, 103 offered, a trader remarked.

Pricing on the B-1 loan is Libor plus 500 bps with a 1% Libor floor and it was issued at a premium of 101.

Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, Barclays and Goldman Sachs Bank USA are leading the deal that will be used to repay the company's term loan B-2 loan due in 2016.

Ocean Rig is a Nicosia, Cyprus-based international offshore drilling contractor.

Ikaria restructures

Moving to the primary, Ikaria lifted its seven-year covenant-light first-lien term loan (B1/B-) to $890 million from $830 million, cut pricing to Libor plus 400 bps from Libor plus 450 bps, added a step-down to Libor plus 375 bps at less than 2.75 times first-lien leverage, revised the original issue discount to 99½ from 99 and shortened the 101 soft call protection to six months from one year, according to a market source.

Also, the eight-year covenant-light second-lien term loan (Caa1/CCC) was reduced to $330 million from $415 million, the spread was trimmed to Libor plus 775 bps from Libor plus 850 bps and the discount was moved to 99¼ from 99, the source said.

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

The company's now $1.27 billion credit facility includes a $50 million revolver (B1/B-) as well.

Ikaria lead banks

Credit Suisse Securities (USA) LLC, Barclays, Goldman Sachs Bank USA and Morgan Stanley Senior Funding Inc. are leading Ikaria's credit facility for which recommitments were due at 5 p.m. ET on Monday.

Proceeds will be used to help fund the buyout of the company by Madison Dearborn Partners for about $1.6 billion, and the reduction in the total amount of term loan debt being obtained is because of lower fees and expenses, the source added.

Existing Ikaria shareholders, including New Mountain Capital and certain members of the company's management team, will have a minority stake in the company.

Closing is expected this quarter, subject to customary conditions.

Ikaria is a Hampton, N.J.-based provider of proprietary and innovative therapies for the critical care units in hospitals.

SBA reworks loan

SBA Communications upsized its seven-year incremental senior secured term loan B (BB) to $1.5 billion from $1 billion, set the spread at Libor plus 250 bps, the tight end of the Libor plus 250 bps to 275 bps talk, and changed the discount to 99¾ from 991/2, according to a market source.

As before, the term loan has a 0.75% Libor floor, 101 soft call protection for six months and a ticking fee of half the spread from day 46 until March 31.

Recommitments were due at 5 p.m. ET on Monday, the source said.

Citigroup Global Markets Inc. and Barclays are leading the deal that will be used to fund the acquisition of 2,007 wireless sites in Brazil from Oi SA for about R$1,525,000,000. Funds from the upsizing will be used to refinance existing term loan B debt and for general corporate purposes, the source added.

Closing is expected by March 31.

SBA is a Boca Raton, Fla.-based first choice provider and owner and operator of wireless communications infrastructure.

Dunkin' updates pricing

Dunkin' Brands firmed pricing on its $450 million term loan due June 2017 at Libor plus 250 bps, the high end of the Libor plus 225 bps to 250 bps talk, according to a market source, who said the tranche still has no Libor floor, an original issue discount of 99¾ and 101 soft call protection for six months.

The company is also getting a $1,379,000,000 term loan due February 2021 priced at Libor plus 250 bps with a 0.75% Libor floor, a discount of 99¾ and 101 soft call protection for six months.

Last week, the 2021 term loan was reduced from $1,829,000,000 as the 2017 loan was added to the capital structure, pricing was set at the wide end of the Libor plus 225 bps to 250 bps talk and the discount firmed at the high side of the 99¾ to par talk.

J.P. Morgan Securities LLC, Barclays and Goldman Sachs Bank USA are leading the deal (B+) that will be used to refinance an existing term loan due 2020 priced at Libor plus 275 bps with a 1% Libor floor.

Dunkin' Brands is a Canton, Mass.-based franchisor of quick-service restaurants serving hot and cold coffee and baked goods as well as hard-serve ice cream.

Roundy's releases talk

Also on the new deal front, Roundy's Supermarkets held its bank meeting on Monday, launching its $460 million seven-year first-lien covenant-light tem loan (B1/B) with talk of Libor plus 400 bps to 425 bps with a 1% Libor floor and an original issue discount of 99, according to a market source.

As previously disclosed, the term loan has 101 soft call protection for six months and a commitment deadline of Feb. 12.

Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Bank of America Merrill Lynch and BMO Capital Markets are leading the deal that will be used to refinance an existing loan.

Roundy's is a Milwaukee-based supermarket chain.

Atlantic Power guidance

Atlantic Power came out with talk of Libor plus 400 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year on its $600 million seven-year term loan B that launched with a bank meeting, according to a market source.

The company's $800 million senior secured credit facility (Ba3/B+), for which commitments are due on Feb. 14, also includes a $200 million four-year revolver.

Goldman Sachs Bank USA and Bank of America Merrill Lynch are leading the term loan, and Goldman Sachs, Bank of America, RBC Capital Markets and Union Bank are leading the revolver.

Proceeds will be used to refinance existing bank debt and notes, provide for ongoing working capital needs and general corporate purposes, support collateral support obligations to contract counterparties and fund a debt service reserve.

Atlantic Power LP, a subsidiary of Atlantic Power Corp., a Boston-based owner and operator of power generation assets, has 1,173 MW of hydro, natural gas and generation capacity.

Viva Alamo details

Viva Alamo disclosed details on its credit facility that launched during the session, including that the $550 million senior secured credit facility consists of a $50 million five-year revolver and a $500 million seven-year covenant-light term loan B, a source said.

The B loan is talked at Libor plus 375 bps to 400 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, the source continued.

Commitments are due at 5 p.m. ET on Feb. 12.

Citigroup Global Markets Inc. is leading the deal that will be used to help fund the buyout of the company by Blackstone from Centrica plc's North American subsidiary, Direct Energy, for $685 million.

Closing is expected this quarter, subject to customary regulatory approvals.

Viva Alamo is comprised of three Texas gas-fired power stations that have a combined capacity of 1,295MW.

Dealertrack sets meeting

Timing emerged on Dealertrack's $825 million senior secured credit facility with the bank meeting for the deal set to take place on Thursday, according to a market source.

The facility consists of a $200 million revolver and a $625 million seven-year term loan.

J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Barclays and Wells Fargo Securities LLC are leading the deal that will be used to help fund the acquisition of Dealer.com for about 8.7 million shares of Dealertrack's common stock and $620 million in cash.

Closing is expected this quarter, subject to regulatory approval.

Net debt to LTM EBITDA is expected to be between 4.4 times to 4.6 times.

Dealertrack is a Lake Success, N.Y.-based provider of web-based software solutions and services to the automotive industry. Dealer.com is a Burlington, Vt.-based provider of marketing and operations software and services for the automotive industry.

Accellent joins calendar

Accellent surfaced with plans to hold a bank meeting at 10:30 a.m. ET on Feb. 11 to launch a $1.13 billion credit facility, according to a market source.

The facility consists of a $75 million five-year revolver, a $795 million seven-year first-lien term loan with a 1% Libor floor and a $260 million eight-year second-lien term loan with a 1% Libor floor, the source said.

UBS Securities LLC, Goldman Sachs Bank USA and KKR Capital Markets LLC are leading the deal, with UBS the left lead on the first-lien debt and Goldman the left lead on the second-lien debt.

Proceeds will be used to fund the acquisition of Lake Region Medical for $315 million, plus rollover stockholders will contribute $75 million of their stock for shares of the merged company, to refinance an existing credit facility and to repay all of Accellent's senior and senior subordinated notes.

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

Accellent is a Wilmington, Mass.-based provider of fully integrated outsourced manufacturing and engineering services to the medical device industry. The merged business will be called Lake Region Medical.

Hyland on deck

Hyland Software set a call for 1:30 p.m. ET on Tuesday to launch a $435 million seven-year first-lien covenant-light term loan that is talked at Libor plus 375 bps with a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months, according to a market source.

Commitments are due on Feb. 18, the source said.

Credit Suisse Securities (USA) LLC and Jefferies Finance LLC are leading the deal that will be used to refinance existing debt and fund a dividend.

Hyland is a Westlake, Ohio-based enterprise content-management software developer.

Kronos readies deal

Kronos Worldwide will hold a bank meeting at 11 a.m. ET on Tuesday to launch a $275 million six-year term loan B, according to a market source.

Commitments are due on Feb. 13, the source said.

Deutsche Bank Securities Inc. is leading the deal.

Kronos is a Dallas-based producer of titanium dioxide pigments, the primary pigment for providing whiteness, brightness and opacity.

INC Research plans loan

INC Research set a call for Wednesday to launch a $295 million term loan that is talked at Libor plus 325 bps to 350 bps with a 1% Libor floor, a par offer price and 101 soft call protection for six months, a market source said.

Proceeds will be used to reprice an existing term loan from Libor plus 475 bps with a 1.25% Libor floor.

J.P. Morgan Securities LLC is leading the deal.

INC Research is a Raleigh, N.C.-based therapeutically focused contract research organization.

YP coming soon

YP will host a call on Tuesday to launch a $200 million add-on term loan B (B2) priced at Libor plus 675 bps with a 1.25% Libor floor, in line with the existing term loan B, according to a market source.

J.P. Morgan Securities LLC is leading the deal.

Proceeds will be used to fund a dividend.

YP is a Tucker, Ga.-based provider of local business print, online and mobile directory services.

1-800 Contacts closes

In other news, the buyout of 1-800 Contacts Inc. by Thomas H. Lee Partners from WellPoint has been completed, a news release said.

For the transaction, 1-800 Contacts got a new credit facility comprised of a $60 million revolver (B1/B), a $420 million first-lien covenant-light term loan (B1/B) and a $115 million second-lien term loan.

Pricing on the first-lien term loan is Libor plus 325 bps with a 1% Libor floor and it was sold at an original issue discount of 993/4. There is 101 soft call protection for six months.

During syndication, the first-lien term loan was upsized from $400 million, pricing was lowered from talk of Libor plus 350 bps to 375 bps and the discount was revised from 991/2, and the second-lien term loan was downsized from $125 million. The equity component was also reduced with the first-lien loan upsizing.

Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc., Deutsche Bank Securities Inc. and RBC Capital Markets lead the deal for the Orem, Utah-based online contact lens retailer.

nTelos wraps

nTelos Inc. closed on its $188 million add-on term loan B, according to a news release.

Pricing on the add-on is Libor plus 475 bps with a 1% Libor floor, in line with the existing term loan B, and it was sold at a discount of 993/4.

During syndication, the add-on was upsized from $148 million and the discount was tightened from talk of 99 to 991/2.

J.P. Morgan Securities LLC, UBS Securities LLC, Deutsche Bank Securities Inc. and Union Bank led the deal that was used to refinance existing term loan A borrowings and, as a result of the upsizing, to add cash to the balance sheet.

nTelos is a Waynesboro, Va.-based provider of wireless and wireline communications services.

Verint wraps

Verint Systems Inc. closed on its roughly $514 million acquisition of KANA Software Inc. from Accel-KKR, according to an 8-K filed with the Securities and Exchange Commission.

With the transaction, Verint got a new $945 million covenant-light term loan (B1/BB-) due Sept. 6, 2019 priced at Libor plus 275 bps with a 0.75% Libor floor and it includes 101 soft call protection through Sept. 7, 2014. Of the total term loan amount, $300 million is a tack-on that was issued at 99¾ and $645 million is for a repricing that was issued at par.

During syndication, pricing on the tack-on loan was revised from Libor plus 300 bps with a 25 bps step-down at Ba3/BB- ratings and a 1% Libor floor (which was in line with the existing term loan), the repricing of the existing debt was added, and the call protection on the entire loan was extended from March 6.

Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. led the deal.

Verint is a Melville, N.Y.-based provider of actionable intelligence and value-added services. KANA is a Silicon Valley, Calif.-based provider of customer service applications delivered both on-premises and in the cloud.

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