Aristocrat, Vestcom, Crowne break; Zebra, Mattress Firm, Central Security, FHC update deals

By Sara Rosenberg

New York, Sept. 29 – Aristocrat Leisure Ltd.’s credit facility made its way into the secondary market on Monday with the term loan bid around its original issue discount, and Vestcom and Crowne Group LLC began trading as well.

Moving to the primary, Zebra Technologies Corp. adjusted price talk on its term loan B and sweetened the call premium, and Mattress Firm Holding Corp. set the spread on its term loan at the high end of talk, added a step-down and extended the call protection,

Also, Central Security Group Inc. widened pricing and original issue discounts on its term loans, FHC Health Systems Inc. firmed the spread on its term loan at the tight end of talk, Toys ‘R’ Us – Delaware Inc. came out with price talk on its loans with launch, Sensata Technologies BV revealed timing and size on its deal, and Netafim Ltd. emerged with loan plans.

Aristocrat frees up

Aristocrat Leisure’s credit facility broke for trading on Monday, with the $1.3 billion seven-year term loan B quoted at 99 bid, 99½ offered, according to a market source.

Pricing on the term loan is Libor plus 375 basis points 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.

During syndication, pricing on the loan was flexed from talk of Libor plus 325 bps to 350 bps, the floor widened from 0.75%, the discount was changed from 99½ and the call protection was extended from six months.

The company’s credit facility (Ba2/BB) also includes a A$100 million revolver.

UBS Securities LLC, Bank of America Merrill Lynch, Nomura and Citigroup Global Markets Inc. are leading the deal that will be used to fund the acquisition of Video Gaming Technologies Inc. for about $1,283,000,000 in cash, subject to certain adjustments and regulatory approvals.

Aristocrat Leisure is an Australia-based provider of gaming services. Video Gaming Technologies is a Franklin, Tenn.-based manufacturer of gaming player terminals and centrally determined gaming systems.

Vestcom tops OID

Vestcom’s credit facility also began trading, with the $225 million seven-year first-lien covenant-light term loan B (B1/B) seen at 99¾ bid, par ¼ offered, a trader remarked.

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

The company’s $340 million credit facility also includes a $30 million five-year revolver (B1/B) and an $85 million eight-year second-lien term loan (Caa1/CCC+) priced at Libor plus 775 bps with a 1% Libor floor and issued at 99½. The second-lien loan has hard call protection of 102 in year one and 101 in year two.

Last week, the first-lien term loan was upsized from $215 million, the spread was cut from Libor plus 450 bps and the discount tightened from 99, the second-lien term loan was downsized from $95 million, pricing was lowered from Libor plus 800 bps and the discount was revised from 98½, and the revolver was upsized from $25 million.

Vestcom recapitalizing

Proceeds from Vestcom’s credit facility will be used to refinance existing debt and to fund a distribution to shareholders.

GE Capital Markets is leading the deal that is expected to close on Tuesday.

Pro forma leverage is 3.9 times through the first-lien and 5.4 times total.

Vestcom is a Little Rock, Ark.-based provider of outsourced shelf-edge media services to retail food, drug and mass merchants.

Crowne breaks

Crowne Group’s credit facility hit the secondary too, with the $290 million six-year first-lien covenant-light term loan (B2/B) quoted at 99 bid, par offered and the $90 million seven-year second-lien covenant-light term loan (Caa2/CCC+) quoted at 99½ bid, par ½ offered, a trader said.

Pricing on the first-lien term loan is Libor plus 500 bps with a 1% Libor floor and it was sold at an original issue discount of 98½. There is 101 soft call protection for one year.

The second-lien term loan is priced at Libor plus 800 bps with a 1% Libor floor and it was sold at a discount of 99. There is call protection of 102 in year one and 101 in year two.

During syndication, pricing on the first-lien term loan was lifted from talk of Libor plus 425 bps to 450 bps, the discount widened from 99 and the call protection was extended from six months, and pricing on the second-lien term loan was raised from Libor plus 775 bps.

Crowne buying Trico

Proceeds from Crowne Group’s $455 million credit facility, which also includes a $75 million asset-based revolver, will be used to fund the acquisition of Trico Products Corp. from Kohlberg & Co. LLC and to refinance existing debt.

Jefferies Finance LLC is leading the deal.

Closing is subject to customary regulatory approvals.

First-lien leverage is about 2.6 times and total leverage is around 3.4 times, based on pro forma combined annual EBITDA of $113 million.

Crowne is a Cleveland-based manufacturer and distributor of aftermarket and OEM component parts for the automotive and other industrial equipment markets. Trico is a Rochester Hills, Mich.-based manufacturer, marketer and distributor of windshield wiper blades, systems and components.

Zebra tweaks loan

Over in the primary, Zebra Technologies changed price talk on its $2 billion seven-year term loan B to Libor plus 375 bps to 400 bps from Libor plus 350 bps to 375 bps, pushed out the 101 soft call protection to one year from six months and removed the MFN sunset, according to a market source.

As before, the term loan B has a 0.75% Libor floor and an original issue discount of 99.

The company’s $2.25 billion senior secured credit facility (BB+) also includes a $250 million revolver.

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

Morgan Stanley Senior Funding Inc. and J.P. Morgan Securities LLC are the joint bookrunners on the deal and joint lead arrangers with Deutsche Bank Securities Inc.

Proceeds will be used with $1.25 billion of notes and cash on hand to fund the $3.45 billion acquisition of Motorola Solutions Inc.’s enterprise business.

Closing is expected by the end of the year.

Zebra is a Lincolnshire, Ill.-based provider of marking and printing technologies.

Mattress Firm updated

Mattress Firm finalized pricing on its $720 million seven-year covenant-light term loan (B1/B) at Libor plus 425 bps, the high end of the Libor plus 400 bps to 425 bps talk, added a step-down after six months to Libor plus 400 bps when net total leverage is 3 times, extended the 101 soft call protection to one year from six months and removed the 18 month MFN sunset provision, according to a market source.

The 1% Libor floor and original issue discount of 99 on the term loan were unchanged.

The company’s $845 million credit facility, which is expected to allocate later this week, also includes a $125 million five-year ABL revolver.

Barclays, Bank of America Merrill Lynch, J.P. Morgan Securities LLC and UBS AG are leading the deal that will fund the $425 million acquisition of Sleep Train Inc., a Rocklin, Calif.-based bedding specialty retailer, finance bolt-on acquisitions and refinance existing debt.

Closing is expected in the 2014 fourth fiscal quarter, subject to regulatory approvals and other conditions.

Mattress Firm, a Houston-based specialty bedding company, will have net first-lien adjusted leverage and net total adjusted leverage of 3.3 times and lease adjusted leverage is 6 times.

Central Security revised

Central Security Group lifted pricing on its $225 million six-year first-lien term loan (B2/B-) to Libor plus 525 bps from Libor plus 500 bps and moved the original issue discount to 98½ from 99, while keeping the 1% Libor floor and 101 soft call protection for six months intact, according to a market source.

Also, pricing on the $50 million seven-year second-lien term loan (Caa2/CCC) was raised to Libor plus 900 bps from Libor plus 850 bps and the discount was modified to 97½ from 99, the source said, adding that the 1% Libor floor and call protection of 102 in year one and 101 in year two were unchanged.

Lastly, a maximum total net leverage covenant was added to the previously covenant-light term loans.

The company’s $325 million credit facility also includes a $50 million five-year revolver (B2/B-).

Recommitments are due at 5 p.m. ET on Tuesday, the source added.

Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. are leading the deal that will be used by the Tulsa, Okla.-based provider of alarm monitoring services to refinance existing debt and fund a dividend.

FHC readies allocations

FHC Health expects to allocate its credit facility on Tuesday after finalizing pricing on its $350 million seven-year first-lien term loan at Libor plus 400 bps, the low end of the Libor plus 400 bps to 425 bps talk, a market source said.

As before, the term loan has a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

The company’s $415 million credit facility (B1/B+) also includes a $65 million five-year revolver.

UBS AG, Goldman Sachs Bank USA, GE Capital Markets and Nomura are leading the deal that will be used to help fund Beacon Health Strategies’ merger with ValueOptions Inc. to create FHC Health, a Boston-based managed behavioral health care company.

Closing is expected this fall, subject to regulatory review.

Toys ‘R’ Us guidance

In more primary news, Toys ‘R’ Us held its bank meeting on Monday, and with the event, price talk on the $1,375,000,000 in secured loans was announced, according to a market source.

The $1,025,000,000 5½-year term loan B-4 (B2) is talked at Libor plus 800 bps to 825 bps with a 1% Libor floor, an original issue discount of 99 and call protection of non-callable for 18 months, then at 102 for a year and 101 for the following year, the source said.

And, the $350 million five-year first-in, last-out asset-based loan (Ba3) is talked at Libor plus 550 bps to 575 bps with a 1% Libor floor, a discount of 99 and 101 call protection for one year, the source continued.

Goldman Sachs Bank USA and Bank of America Merrill Lynch are leading the deal, with Goldman left lead on the term loan B-4 and Bank of America left lead on the first-in, last-out loan.

Toys ‘R’ Us refinancing

Proceeds from Toys ‘R’ Us’ new loans will be used to refinance $646 million of secured term loans due fiscal 2016, a significant portion of the $583 million of incremental secured term loans due 2018 and $350 million of 7 3/8% senior secured notes due 2016.

Commitments are due on Oct. 7, the source added.

Toys ‘R’ Us is a Wayne, N.J.-based toy retailer.

Sensata on deck

Sensata Technologies set a conference call for 11 a.m. ET on Tuesday to launch a $600 million seven-year incremental term loan that will be used with senior notes and cash on hand to fund the $1 billion acquisition of Schrader International, a Denver-based manufacturer of sensing and valve products, from Madison Dearborn Partners LLC, according to a market source.

When the acquisition was announced this summer, the company said that it would get $1 billion in total between a term loan and notes, with the maximum loan size being $750 million.

The company also said in filings with the Securities and Exchange Commission that the term loan expected at Libor plus 275 bps with a step-down to Libor plus 250 bps when total net leverage is 3 times, a 0.75% Libor floor and 101 soft call protection for six months.

Official price talk on the loan, however, is not yet out, the source remarked.

Barclays, Morgan Stanley Senior Funding Inc., RBC Capital Markets and Goldman Sachs Bank USA are leading the deal for Sensata, a supplier of sensing, electrical protection, control and power management services.

Closing is expected in the fourth quarter, subject to regulatory approval.

Netafim coming soon

Netafim will hold a bank meeting at 11 a.m. ET on Wednesday to launch a $250 million seven-year term loan B that is talked at Libor plus 400 bps to 425 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, sources said.

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

Proceeds will be used to refinance existing debt.

Netafim is a Tel Aviv, Israel-based drip and micro-irrigation services company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.