RPI Finance, Akorn, Arby's, Husky break; Zayo dips with repricing; Filtration moves deadline

By Sara Rosenberg

New York, Nov. 13 - RPI Finance Trust (Royalty Pharma), Akorn Inc., Arby's (ARG IH Corp.) and Husky Injection Molding Systems Ltd. all emerged in the secondary market on Wednesday, and Zayo Group LLC's term loan B softened with repricing news.

Moving to the primary, Filtration Group Corp. pushed up the commitment deadline on its well-received credit facility, and Southern Graphics Inc. finalized pricing on its term loan at the low end of guidance while adding a leverage-based step-down.

In addition, Bluestem Brands Inc. disclosed price talk with its bank meeting, and Survey Sampling Inc. joined this week's calendar.

RPI Finance hits secondary

RPI Finance's roughly $3.35 billion in term loans freed up for trading on Wednesday, with the roughly $820 term loan B-1 due November 2016 quoted at par bid, and both the roughly $1.8 billion term loan B-2 due May 2018 and the roughly $730 million term loan B-3 due November 2018 quoted at par ¼ bid, par ¾ offered, according to a market source.

The term loan B-1 is priced at Libor plus 225 basis points with no Libor floor, and the term loan B-2 and term loan B-3 are priced at Libor plus 250 bps with a 0.75% Libor floor. All of the tranches were issued at par and have 101 soft call protection for six months.

During syndication, pricing on the B-1 firmed at the low end of the Libor plus 225 bps to 250 bps talk, pricing on the B-2 finalized at the high side of the Libor plus 225 bps to 250 bps talk and pricing on the B-3 came at the tight end of the Libor plus 250 bps to 275 bps talk.

Proceeds will be used to reprice the existing term loan B-1 from Libor plus 250 bps with a 0.75% Libor floor, the term loan B-2 from Libor plus 275 bps with a 0.75% Libor floor and the term loan B-3 from Libor plus 300 bps with a 1% Libor floor.

Bank of America Merrill Lynch, Goldman Sachs Bank USA and J.P. Morgan Securities LLC are leading the deal (BBB-) for the New York-based acquirer of royalty interests in marketed and late-stage biopharmaceutical products.

Akorn starts trading

Akorn's credit facility hit the secondary as well, with the $600 million seven-year covenant-light term loan (B1/B+) quoted at par bid, par ¾ offered, according to a market source.

Pricing on the term loan is Libor plus 350 bps with a 1% Libor floor and it was sold at 991/2. There is 101 soft call protection for six months.

During syndication, pricing on the term loan firmed at the tight end of the Libor plus 350 bps to 375 bps talk and the discount was modified from 99.

The company's $675 million senior secured credit facility also includes a $75 million five-year ABL revolver.

J.P. Morgan Securities LLC and Deutsche Bank Securities Inc. are leading the deal that will be used with cash assumed to fund the acquisition of Hi-Tech Pharmacal Co., Inc. for $43.50 per share (about $640 million), and the revolver will be available for working capital and other corporate purposes.

Closing is targeted for the first quarter of 2014, subject to customary conditions, including termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act.

Akorn is a Lake Forest, Ill.-based niche pharmaceutical company. Hi-Tech is an Amityville, N.Y.-based specialty pharmaceutical company.

Arby's frees up

Arby's also saw its credit facility start trading, with the $335 million seven-year first-lien term loan quoted at par bid, par ½ offered, according to a market source.

Pricing on the term loan is Libor plus 400 bps with a step-down to Libor plus 375 bps at 3.5 times net total leverage or B2/B corporate ratings. There is a 1% Libor floor and 101 soft call protection for six months, and the debt was sold at an original issue discount of 993/4.

Last week, pricing on the loan was reduced from Libor plus 425 bps, the step-down was added, the discount was revised from 99 and the call protection was shortened from one year.

The company's $370 million credit facility (B3/B) also includes a $35 million five-year revolver.

Credit Suisse Securities (USA) LLC and Wells Fargo Securities LLC are leading the deal that will be used to fund a dividend to shareholders.

Arby's, owned by Roark Capital, is an Atlanta-based quick-service restaurant chain.

Husky tops par

Husky Injection Molding Systems' $160 million add-on term loan (Ba3/B) surfaced in the secondary too, with levels seen at par 3/8 bid, par 7/8 offered, sources said.

Pricing on the add-on is Libor plus 325 bps with a 1% Libor floor, in line with existing term loan pricing, and it was issued at par, after firming from revised talk of 99¾ to par and initial talk of 99¼ to 991/2.

Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc., RBC Capital Markets LLC and TD Securities (USA) LLC are leading the deal that will be used to fund the acquisition of Schottli Group.

Husky is a Bolton, Ont.-based supplier of injection molding equipment and services to the plastics industry. Schottli is a Diessenhofen, Switzerland-based medical and closure mold-making company.

Zayo slides

In more secondary happenings, Zayo's term loan B slipped to par bid, par ½ offered from par ¼ bid, par ¾ offered as news surfaced that the company will be launching a repricing of the debt with a call at 11 a.m. ET on Thursday, a trader remarked.

The $1,599,750,000 term loan B is currently priced at Libor plus 350 bps with a 1% Libor floor.

The company will also be approaching lenders with a repricing of its $250 million revolver, a source remarked.

Morgan Stanley Senior Funding Inc., Barclays and RBC Capital Markets are leading the $1,849,750,000 senior secured deal, with Morgan Stanley the left lead.

In September, the company was in market with a repricing of its term loan B that was talked at Libor plus 300 bps with a 1% Libor floor, but that transaction was later pulled.

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

Filtration shutting early

Switching to the primary, Filtration Group accelerated the commitment deadline on its $875 million credit facility to Thursday from Monday as a result of strong demand, according to a market source.

The facility consists of a $75 million five-year revolver (B1/B+), a $565 million seven-year covenant-light first-lien term B (B1/B+) and a $235 million eight-year covenant-light second-lien term loan (Caa1/B-).

The first-lien term loan is talked at Libor plus 375 bps to 400 bps with a 1% Libor floor and an original issue discount of 99, and the second-lien term loan is talked at Libor plus 775 bps to 800 bps with a 1% Libor floor and a discount of 981/2.

Included in the first-lien term loan is 101 soft call protection for six months, and the second-lien loan has call protection of 102 in year one and 101 in year two.

Goldman Sachs Bank USA and BMO Capital Markets Corp. are leading the deal that will be used to help fund the acquisition of Porex Corp. from Aurora Capital Group.

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

Southern updates pricing

Southern Graphics set the coupon on its $397 million first-lien covenant-light term loan due October 2019 at Libor plus 325 bps, the tight end of the Libor plus 325 bps to 350 bps talk, and added a step-down to Libor plus 300 bps at 2.8 times first-lien leverage, according to a market source.

The loan still has a 1% Libor floor, a par offer price and 101 soft call protection for six months.

Recommitments are due at noon ET on Thursday, the source remarked.

Credit Suisse Securities (USA) LLC is leading the deal that will refinance an existing term loan priced at Libor plus 375 bps with a 1.25% Libor floor.

Southern Graphics is a Louisville, Ky.-based provider of design-to-print graphics services to the consumer products packaging industry.

Bluestem reveals talk

Bluestem Brands held its bank meeting on Wednesday, launching its $200 million term loan B (B2/B) with talk of Libor plus 650 bps with a 1% Libor floor, an original issue discount of 98 and 101 soft call protection for one year, according to a market source.

Commitments are due on Nov. 27, the source said.

Wells Fargo Securities LLC and Bank of America Merrill Lynch are leading the deal that will be used to fund a dividend.

Bluestem is an Eden Prairie, Minn.-based multi-brand, online retailer of a broad selection of name brand and private label general merchandise serving low- to middle-income consumers.

Survey Sampling coming soon

Survey Sampling set a bank meeting for Thursday to launch a $180 million senior credit facility that consists of a $20 million revolver and a $160 million term loan B, according to a market source.

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, the source said.

GE Capital Markets is leading the deal.

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

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