Freescale frees up; RadNet gains with notes refinancing plan; Zuffa dips on repricing

By Sara Rosenberg

New York, March 3 - Freescale Semiconductor Inc.'s term loan B-4 broke for trading on Monday, RadNet Inc. saw its B loan head higher as the company announced plans to lower its interest expense, and Zuffa LLC's term loan softened with repricing news.

Over in the primary, Grifols SA, Neiman Marcus Group LLC, Rexnord LLC and McGraw-Hill Global Education Holdings LLC revealed talk with launch, and RCS Capital Corp., Ennis Flint (Road Infrastructure Investment LLC), United Continental Holdings, Talbots Inc., USJ-Imeco, NewWave Communications and Ellucian joined this week's calendar.

Freescale hit secondary

Freescale's $2.72 billion senior secured term loan B-4 due March 1, 2020 began trading on Monday afternoon, with levels quoted at par bid, par ¾ offered, according to a trader.

Pricing on the loan is Libor plus 325 basis points with a 1% Libor floor and it was issued at par. There is 101 soft call protection for six months.

Citigroup Global Markets Inc., Barclays, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs Bank USA and Morgan Stanley Senior Funding Inc. are the lead banks on the deal that is expected to close on Tuesday.

Proceeds will be used to refinance an existing term loan B-3 priced at Libor plus 325 bps with a 1% Libor floor and reprice an existing term loan B-4 from Libor plus 375 bps with a 1.25% Libor floor.

Freescale is an Austin, Texas-based semiconductor company.

RadNet trades up

Also in the secondary, RadNet's term loan B strengthened to 99 5/8 bid, par offered from 99½ bid, 99 7/8 offered following news of a new debt transaction, according to a trader.

The company said in a call that it plans to raise a new $180 million second-lien term loan and a $30 million tack-on to its first-lien term loan B to repay $200 million of its 10 3/8% senior unsecured notes due 2018, thereby reducing cash interest obligations and lengthening the maturity of its most junior debt capital.

A bank meeting to launch the new loans will be held on Thursday and closing is expected in April, officials added.

The company also released fourth quarter numbers, including net income of $1.2 million, an increase of $5.2 million over last year (excluding the $55.9 million non-cash income tax benefit recognized in the fourth quarter of 2012), revenue of $178.3 million, up $19 million from the prior year, and adjusted EBITDA of $31.9 million, up $7.3 million from the 2012 fourth quarter.

RadNet is a Los Angeles-based owner and operator of fixed-site diagnostic imaging centers.

Zuffa heads lower

Zuffa's term loan due February 2020 dipped to par bid, par ½ offered from being wrapped around par ½ as the company surfaced with plans to reprice the debt, a trader said.

The company is talking its $446 million term loan (BB+) repricing at Libor plus 275 bps to 300 bps with a 0.75% Libor floor, a par offer price and 101 soft call protection for one year, a market source remarked.

This transaction will take the term loan down from Libor plus 325 bps with a 1% Libor floor.

Deutsche Bank Securities Inc., Goldman Sachs Bank USA, J.P. Morgan Securities LLC, Bank of America Merrill Lynch and RBC Capital Markets are leading the deal that will launch with a call at 1 p.m. ET on Tuesday.

Commitments are due on March 11, the source added.

Zuffa is a Las Vegas-based sports and media company which owns the Ultimate Fighting Championship (UFC).

Grifols details emerge

Moving to the primary, Grifols held its bank meeting on Monday at which time structure and price talk on the $4.8 billion senior deal (BB) was announced, according to market sources.

The facility consists of a $300 million five-year revolver and $700 million six-year term loan A, both talked at Libor plus 250 bps to 275 bps with upfront fees that are dependent on commitment size, and a $3.25 billion seven-year term loan B and $550 million euro equivalent seven-year term loan B, both talked at Libor/Euribor plus 300 bps to 325 bps with no Libor floor, an original issue discount of 99½ and 101 soft call protection for one year, sources said.

Commitments for the term B debt are due on Thursday and commitments for the revolver and term loan A are due on March 14.

Nomura, Morgan Stanley Senior Funding Inc. (left on U.S. term loan B), BBVA, Deutsche Bank Securities Inc. and HSBC Securities (USA) Inc. are leading the deal, with Nomura the global coordinator.

Proceeds will be used by the Barcelona-based pharmaceutical company to refinance existing debt.

Neiman discloses guidance

Neiman Marcus came out with talk of Libor plus 300 bps to 325 bps with a 1% Libor floor, a par issue price and 101 soft call protection through October 2014 on its $2,943,000,000 first-lien covenant-light term loan due October 2020 shortly before the deal launched with a call at noon ET, according to a market source.

The term loan has a 25 bps step-down at 4 times net first-lien leverage and, the source said.

Commitments are due on Friday.

Credit Suisse Securities (USA) LLC, RBC Capital Markets LLC and Deutsche Bank Securities Inc. are leading the deal that will be used to reprice an existing term loan from Libor plus 400 bps with a 1% Libor floor.

Neiman Marcus is a Dallas-based luxury retailer.

Rexnord sets talk

Rexnord held its call at 1 p.m. ET to launch its roughly $1.95 billion first-lien covenant-light term loan due August 2020, and a few hours before the event kicked off, talk on the loan emerged at Libor plus 275 bps with a 0.75% Libor floor, a par offer price and 101 soft call protection for six months, according to a market source.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to reprice an existing term loan from Libor plus 300 bps with a 1% Libor floor.

Currently, the term loan has a step-down based on leverage, but the repriced loan does not have a step-down, the source said.

Commitments are due at 4 p.m. ET on Friday.

Rexnord is a Milwaukee-based industrial company comprising two strategic platforms: process & motion control and water management.

McGraw-Hill launches

McGraw-Hill Global Education announced plans in the morning to hold a call at 3 p.m. ET on Monday to launch a $688 million first-lien covenant-light term loan (B2) due March 2019 talked at Libor plus 475 bps with a 1% Libor floor, a par offer price and 101 soft call protection for six months, a market source said.

Commitments are due on Friday, the source added.

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to reprice an existing term loan from Libor plus 775 bps with a 1.25% Libor floor.

McGraw-Hill Education is a New York-based digital learning company.

RCS reveals timing

RCS Capital came out with timing on its previously announced $725 million senior secured credit facility, with the launch scheduled to take place with a bank meeting at noon ET on Wednesday, a market source said.

The facility consists of a $25 million revolver (B+) that will be undrawn at closing, a $550 million first-lien term loan (B+) and a $150 million second-lien term loan (B-).

Barclays and Bank of America Merrill Lynch are leading the deal that will be used with equity from Luxor Capital Group and cash on hand to fund the $1.15 billion purchase of Cetera Financial Group from Lightyear Capital and to refinance Cetera debt.

Closing is expected in the second quarter, subject to Finra approval and other customary conditions.

RCS is a New York-based holding company that operates and grows businesses focused on the financial services industry. Cetera is an El Segundo, Calif.-based financial services holding company that provides independent broker-dealer services and investment advisory services.

Ennis on deck

Ennis Flint set a bank meeting for 10 a.m. ET in New York on Wednesday to launch a $635 million credit facility, according to a market source.

The facility consists of a $75 million revolver, a $390 million seven-year first-lien covenant-light term loan with 101 soft call protection for six months and a $170 million 71/2-year second-lien covenant-light term loan with call protection of 102 in year one and 101 in year two, the source remarked.

Commitments are due on March 19.

Credit Suisse Securities (USA) LLC, RBC Capital Markets and Fifth Third Securities Inc. are leading the deal that will be used to refinance existing debt and fund a dividend.

Ennis Flint is a Thomasville, N.C.-based manufacturer and marketer of traffic safety and pavement marking products.

United Continental readies

United Continental scheduled a call for Tuesday to launch an $893 million term loan B due April 2019 talked at Libor plus 275 bps with a 0.75% Libor floor, a par offer price and 101 soft call protection for one year, according to a market source.

Proceeds will be used to reprice an existing term loan from Libor plus 300 bps with a 1% Libor floor.

J.P. Morgan Securities LLC, Barclays, Bank of American Merrill Lynch, Credit Agricole Securities (USA) Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs Bank USA and Morgan Stanley Senior Funding Inc. are leading the deal.

United Continental is a Chicago-based airline operator.

Talbots deal surfaces

Talbots set a bank meeting for 9:30 a.m. ET on Tuesday to launch $355 million in term loans, according to a market source.

The debt consists of a $255 million six-year first-lien term loan and a $100 million seven-year second-lien term loan, the source said.

Bank of America Merrill Lynch, Guggenheim and Morgan Stanley Senior Funding Inc. are leading the deal that will be used to refinance existing debt and fund a dividend.

Talbots is a Hingham, Mass.-based specialty retailer and direct marketer of women's apparel, shoes and accessories.

USJ-Imeco coming soon

USJ-Imeco intends to hold a bank meeting on Wednesday to launch a $105 million credit facility, according to a market source.

The facility consists of a $15 million five-year revolver and a $90 million six-year term loan, the source said.

BNP Paribas Securities Corp. is leading the deal that will be used to fund an acquisition.

USJ-Imeco is a provider of turnkey marine joiner, marine electro-mechanical and furniture products that was formed through the merger of two J.F. Lehman portfolio companies, Crozet, Va.-based US Joiner and Iron Mountain, Mich.-based Imeco Inc.

NewWave joins calendar

NewWave Communications scheduled a call for 2 p.m. ET on Tuesday to launch $38.5 million in add-on bank debt - split between a $10 million add-on revolver, a $13.5 million add-on first-lien term loan due April 2020 and a fungible $15 million add-on second-lien term loan due October 2020 - and a repricing of its first-lien term loan, according to a market source.

The add-on first-lien term loan and the repricing of the existing first-lien term loan debt due April 2020 are talked at Libor plus 375 bps with a 1% Libor floor, an original issue discount of 99¾ on the new money, a par offer price on the repricing and 101 soft call protection for six months, the source remarked.

And, talk on the add-on second-lien term loan is Libor plus 800 bps with a 1% Libor floor, which matches the existing second-lien term loan, and an offer price of 991/2.

NewWave lead banks

SunTrust Robinson Humphrey Inc. and Goldman Sachs Bank USA are leading the NewWave's add-on and repricing deal.

The new bank debt will be used to fund a tuck-in acquisition, and the repricing will take the first-lien term loan down from Libor plus 400 bps with a 1% Libor floor.

Pro forma senior leverage is 4.5 times and total leverage is 6.1 times, the source added.

NewWave is a Sikeston, Mo.-based broadband/cable company providing television, high-speed internet and digital telephone services.

Ellucian plans call

Ellucian set a call for Tuesday for credit facility investors, according to sources, who said details on the purpose of the call are not yet available.

Bank of America Merrill Lynch, Barclays, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and J.P. Morgan Securities LLC are leading the deal.

Ellucian is a Fairfax, Va.-based provider of software and services to the education community.

Dealertrack closes

In other news, Dealertrack Technologies Inc. completed its purchase of Dealer.com, a news release said, and for the transaction the company got a new $775 million senior secured credit facility (Ba2/BB-) that includes a $200 million revolver and a $575 million seven-year term loan B.

Pricing on the B loan is Libor plus 275 bps with a step-down to Libor plus 250 bps based on leverage. There is a 0.75% Libor floor and 101 soft call protection for six months, and the debt was issued at 993/4.

During syndication, pricing on the term B firmed at the tight end of the Libor plus 275 bps to 300 bps talk, the step-down was added, the Libor floor was trimmed from 1% and the discount was tightened from 991/2.

J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Barclays and Wells Fargo Securities LLC led the deal.

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

PeroxyChem wraps

The purchase of FMC Corp.'s Peroxygens business, PeroxyChem, by One Equity Partners for about $200 million has closed, according to a news release.

To help fund the buyout, PeroxyChem got a new $155 million credit facility (B2/B+) that includes a $20 million five-year revolver and a $135 million six-year first-lien term loan.

Pricing on the term loan is Libor plus 650 bps with a 1% Libor floor and it was sold at a discount of 98. There is 101 soft call protection for one year.

During syndication, the spread on the term loan was lifted from talk of Libor plus 500 bps to 525 bps.

Macquarie Capital led the deal.

PeroxyChem is a supplier of hydrogen peroxide, persulfate products, peracetic acid and other eco-friendly specialty oxidants.

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