RCN, Apple Leisure, SRS, Fibertech, Encompass, PRA, CPP break; Huntsman slides with add-on

By Sara Rosenberg

New York, Feb. 28 - RCN Cable, Apple Leisure Group, SRS Distribution Inc., Fibertech Networks, Encompass Digital Media Inc., Pharmaceutical Research Associates Inc. (PRA), Consolidated Precision Products Corp. (WPP CPP Holdings LLC) all broke for trading on Thursday.

Also in the secondary market, Huntsman International LLC's bank debt was lower as the company announced plans for an add-on to its extended tranche.

Switching to the primary market, Leap Wireless International Inc. moved up the commitment deadline on its well-received term loan C, Novelis Inc. finalized the Libor floor on its loan at the wide end of talk, and Merrill Communications LLC upsized its term loan while reducing the spread, floor and call protection.

Furthermore, Tronox Ltd. and Sirva Inc. released guidance with their launches, and KAR Auction Services Inc. came to market with an add-on and repricing transaction.

RCN tops par

RCN Cable's $808 million term loan B (B1/B) broke for trading on Thursday, with levels quoted at par bid, par ½ offered on the open and then it moved up to par 3/8 bid, par 7/8 offered, according to a market source.

Pricing on the loan, which was recently upsized from $775 million, is Libor plus 400 basis points 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 six months.

SunTrust Robinson Humphrey Inc., GE Capital Markets and TD Securities (USA) LLC are leading the deal.

Proceeds will be used to refinance a roughly $555 million term loan B that is priced at Libor plus 400 bps with a 1.25% Libor floor and to pay a dividend, which was increased by $33 million due to the term loan upsizing.

RCN Cable, a broadband services provider, will have leverage of 4.9 times.

Apple Leisure breaks

Apple Leisure's credit facility hit the secondary as well, with the $140 million six-year first-lien term loan B (B2/B+) quoted at 99½ bid and the $75 million seven-year second-lien term loan (Caa1/CCC+) quoted at 98½ bid, according to a trader.

Pricing on the first-lien term loan is Libor plus 575 bps with a 1.25% Libor floor, and it was sold at a discount of 99. There is 101 soft call protection for one year.

The second-lien loan is priced at Libor plus 900 bps with a 1.25% floor, and was sold at 98. The tranche has call protection of 103 in year one, 102 in year two and 101 in year three.

During syndication, the first-lien term loan was downsized from $150 million and pricing was increased from Libor plus 500 bps, and the second-lien term loan was upsized from $65 million and pricing was lifted from Libor plus 875 bps.

The $235 million credit facility also includes a $20 million five-year undrawn revolver (B2/B+).

Jefferies Finance LLC is leading the deal that will be used to back the already completed buyout of the Newton Square, Pa.-based travel and resort company by Bain Capital.

SRS trades north of OID

SRS Distribution's credit facility began trading too, with the $220 million 61/2-year term loan B (B2/B) seen at par ½ bid, 101½ offered, according to a trader.

Pricing on the term loan is Libor plus 375 bps with a 1% Libor floor, and it was sold at a discount of 991/2. There is 101 soft call protection for six months.

During syndication, pricing was cut from Libor plus 450 bps, the floor was lowered from 1.25%, the discount was revised from 99 and the call protection was shortened from one year.

In addition to the term loan, the McKinney, Texas-based roofing distributor's $320 million credit facility includes a $100 million five-year ABL revolver.

UBS Securities LLC and Barclays are leading the deal that will be used with $100 million of mezzanine debt to help fund the buyout of the company by Berkshire Partners from AEA Investors.

Fibertech frees up

Fibertech Networks' $380 million covenant-light term loan B hit the secondary, with levels quoted at par ¼ bid, par ¾ offered, according to a trader.

Pricing on the loan is Libor plus 350 bps with a 1% Libor floor, and it was issued at par. There is 101 soft call protection for one year.

During syndication, the spread on the loan was lifted from talk of Libor plus 325 bps.

Proceeds are being used to reprice an existing term loan from Libor plus 450 bps with a 1.25% Libor floor, and existing lenders are getting paid down at 101 with the repricing.

TD Securities (USA) LLC, M&T Securities Inc. and UBS Securities LLC are leading the deal.

Fibertech is a Rochester, N.Y.-based provider of fiber optic bandwidth services.

Encompass levels emerge

Encompass Digital Media's $265 million term loan freed up, with levels quoted at par 3/8 bid, par 7/8 offered, according to a market source.

Pricing on the loan is Libor plus 550 bps with a 1.25% Libor floor, and it was issued at par.

During syndication, the 101 soft call protection for six months was removed and the plan to go covenant-light was cancelled, so the loan still includes quarterly leverage and interest coverage tests.

Proceeds are being used to reprice an existing term loan from Libor plus 650 bps with a 1.5% Libor floor.

Macquarie Capital is leading the deal.

Encompass is a Los Angeles-based digital media services provider.

PRA starts trading

Pharmaceutical Research Associates' incremental term loans also broke with the $70 million add-on first-lien term loan due December 2017 quoted at par ¾ bid, 101¾ offered on the open and then it moved to 101 bid, 102 offered, and the $25 million add-on second-lien term loan due June 2019 quoted at 101 bid, a source remarked.

Pricing on the first-lien term loan is Libor plus 525 bps and pricing on the second-lien term loan is Libor plus 925 bps, with both tranches having a 1.25% Libor floor and issued at par. The first-lien loan includes 101 soft call protection for one year, and the second-lien loan has call protection of 103 in year one, 102 in year two and 101 in year three.

During syndication, the first-lien add-on was upsized from $57.5 million, of which $45 million was converted to funded debt from delayed-draw debt that was offered at a discount of 991/2, and the second-lien add-on was upsized from $12.5 million.

UBS Securities LLC is leading the deal for the Raleigh, N.C.-based clinical research organization that will be used, along with cash on hand, to make a $45 million acquisition and pay a one-time dividend that was upsized to $128.9 million due to the increase in the add-on term loan sizes.

CPP hits secondary

Another deal to free up was Consolidated Precision Products, with its $415 million first-lien term loan quoted at par bid, par ½ offered, according to a trader.

Pricing on the term loan, as well as on a $100 million revolver, is Libor plus 375 bps. The term loan still has a 1% Libor floor and 101 soft call protection for six months, and was issued at par.

Recently, pricing on the $515 million credit facility was flexed up from Libor plus 350 bps.

Proceeds are being used to reprice an existing term loan from Libor plus 450 bps with a 1.25% Libor floor, and an existing revolver from Libor plus 450 bps.

UBS Securities LLC is leading the deal.

Consolidated Precision Products is a Pomona, Calif.-based manufacturer of highly engineered components and sub-assemblies, supplying the commercial aerospace, military and industrial markets with small- to large-function critical products.

Huntsman softens

In more trading happenings, Huntsman's term loans weakened after the company revealed that it would be getting $200 million add-on to its existing $637 million extended term loan B due 2017 to take out its existing $193 million non-extended term loan B due 2014, according to a trader.

The extended term loan B was quoted at 99¼ bid, par offered, down from par bid, par ¾ offered, the non-extended term loan B was quoted at 99¾ bid, par ¼ offered, down from par bid, par ½ offered, the extended term loan B-2 was quoted at par ¼ bid, 101 offered, down from par ¾ bid, 101¼ offered, and the term loan C was quoted at 99¾ bid, par ½ offered, down from par bid, par ¾ offered, the trader said.

The add-on and the existing extended term loan B are priced at Libor plus 250 bps, and the new debt is talked with an original issue discount of 99 to 991/2, sources said.

The non-extended term loan that is being repaid is priced at Libor plus 150 bps.

J.P. Morgan Securities LLC is the lead bank on the deal that launched with a call in the afternoon.

Huntsman selling notes

In addition to the term loan add-on, Huntsman launched and priced on Thursday a $250 million add-on to its 4 7/8% senior notes that was sold at a discount of 981/2, a market source said.

Proceeds from the notes will be used to redeem 5½% senior notes due 2016 and for general corporate purposes.

Huntsman is a Salt Lake City-based manufacturer of differentiated organic and inorganic chemical products.

Leap closes early

Moving to the primary, Leap Wireless accelerated the commitment deadline on its $1,425,000,000 seven-year term loan C (Ba3/B+) to Thursday from noon ET on Friday, according to a market source.

The term loan C is talked at Libor plus 350 bps with a 1.25% Libor floor and an original issue discount of 99, and includes 101 soft call protection for one year.

Deutsche Bank Securities Inc., Bank of America Merrill Lynch, UBS Securities LLC and Citigroup Global Markets Inc. are leading the deal that will be used to refinance the company's 7¾% secured notes and 4½% convertible notes.

Leap is a San Diego-based provider of digital wireless services.

Novelis sets floor

Novelis firmed the Libor floor on its term loan repricing at 1%, the high end of the 0.75% to 1% guidance, according to a market source.

As before, the loan is priced at Libor plus 275 bps with a par issue price, and includes 101 soft call protection for one year.

With the repricing, the company is taking the term loan down from Libor plus 300 bps with a 1% Libor floor.

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

Novelis is an Atlanta-based aluminum-rolled products and beverage can recycling company.

Merrill reworks deal

Merrill Communications lifted its first-lien term loan (B1/B) to $430 million from $390 million, cut pricing to Libor plus 625 bps from Libor plus 650 bps, reduced the Libor floor to 1% from 1.25% and revised the soft call protection to just 101 in year one from 102 in year one and 101 in year two, according to a market source. The original issue discount of 99 was unchanged.

The company's now $460 million five-year credit facility also includes a $30 million super-priority revolver (Ba3/B+).

Lead banks, Credit Suisse Securities (USA) LLC and Imperial Capital, are seeking commitments by Friday.

Proceeds will be used to refinance existing debt.

Merrill is a St. Paul, Minn.-based provider of technology-enabled services for the financial, legal, health care, real estate and other corporate markets.

Tronox reveals pricing

Also on the new deal front, Tronox held a bank meeting on Thursday to launch its $1.3 billion senior secured term loan (Ba2/BBB-), and with the event, talk emerged at Libor plus 375 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, a source said.

Commitments are due on March 12, the source continued.

Goldman Sachs & Co., UBS Securities LLC, Credit Suisse Securities (USA) LLC and RBC Capital Markets are leading the deal that will be used to refinance existing bank debt and for general corporate purposes and/or potential strategic alternatives.

Closing is expected by the end of this quarter.

Tronox is a producer and marketer of titanium bearing mineral sands and titanium dioxide pigment.

Sirva discloses talk

Sirva released talk of Libor plus 525 bps with a 1.25% Libor floor, an original issue discount of 98 to 99 and 101 soft call protection for one year on its $300 million six-year term loan B that launched in the morning, according to a market source.

Commitments are due on March 14, the source remarked.

The company's $350 million credit facility includes a $50 million ABL revolver.

Goldman Sachs & Co. and Bank of America Merrill Lynch are leading the deal that will be used to refinance existing debt and fund a payout to preferred equity holders.

Net leverage through the term loan is 4 times.

Sirva is a Westmont, Ill.-based provider of moving and relocation services.

KAR comes to market

KAR Auction Services launched with a call in the afternoon a roughly $1.82 billion term loan B due May 2017 that is talked at Libor plus 300 bps with a 1% Libor floor, a par offer price and 101 soft call protection through November 2013, according to sources.

Of the total amount, about $1.67 billion will be used to reprice an existing term loan B from Libor plus 375 bps with a 1.25% Libor floor, and the $150 million of incremental debt will be used to redeem $150 million of floating-rate senior notes due May 1, 2014.

Existing lenders will get paid out at 101 with the repricing, sources said.

J.P. Morgan Securities LLC is leading the deal that is expected to be completed in March.

KAR is a Carmel, Ind.-based provider of vehicle auction services and a provider of floorplan financing to independent and franchise used vehicle dealers.

Zayo closes

In other news, Zayo Group LLC completed the repricing of its $1,612,000,000 term loan B due July 2, 2019 and $250 million revolver due July 2, 2017, according to a news release.

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

The revolver is priced at Libor plus 300 bps with no Libor floor.

During syndication, pricing on the term loan was increased from Libor plus 325 bps and the call protection was shortened from one year, and the revolver was upsized from $225 million.

Morgan Stanley Senior Funding Inc., Barclays and RBC Capital Markets led the term loan, which was also amended to remove the maximum senior secured and total leverage ratio covenants. SunTrust Robinson Humphrey Inc. was the agent on the revolver.

With the repricing, the term B was taken down from Libor plus 400 bps with a 1.25% floor.

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

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