Sensata breaks; Four Seasons dips; Ardagh revised; Chrysler, U.S. Renal, Omnitracs set talk

By Sara Rosenberg

New York, Dec. 9 - Sensata Technologies BV's term loan B freed up for trading on Monday, Four Seasons Hotels and Resorts saw its term loan soften as details on a repricing proposal surfaced, and Infor's term loan B-2 was quoted lower by some and unchanged by others on refinancing news.

Moving to the primary, Ardagh Group trimmed pricing on its euro term loan, and Chrysler Group LLC, U.S. Renal Care Inc. and Omnitracs Inc. released talk as their deals were presented to lenders during the session.

Also, Spansion Inc., AFGlobal Corp. (previously Ameriforge Group Inc.) and Laureate Education Inc. emerged with deal plans.

Sensata starts trading

Sensata Technologies' $475,250,000 senior secured term loan B (Baa2) due May 12, 2019 broke on Monday, with levels quoted at par ½ bid, 101½ offered, according to a market source.

Pricing on the B loan is Libor plus 250 basis points with a 0.75% Libor floor and it was issued at par. There is 101 soft call protection for six months.

During syndication, the loan was upsized from $375,250,000.

Proceeds from the original amount will be used to reprice from Libor plus 275 bps with a 1% Libor floor and extend from May 12, 2018 an existing term loan B, and the $100 million of incremental debt raised will be used for general corporate purposes.

Morgan Stanley Senior Funding Inc. is leading the deal that is expected to close on Wednesday.

Sensata is an Attleboro, Mass.-based designer and manufacturer of sensors and controls.

Four Seasons slides

Also in the secondary, Four Seasons Hotels and Resorts' term loan dropped to par 3/8 bid, par 7/8 offered from par ¾ bid, 101¼ offered as the company launched with a call a repricing of the $750 million senior secured first-lien covenant-light tranche due June 27, 2020, according to a trader.

Talk on the repricing is Libor plus 275 bps with a 0.75% Libor floor, a par offer price and 101 soft call protection for six months, a market source said.

The repricing will take the existing term loan down from Libor plus 325 bps with a 1% Libor floor.

Existing lender commitments are due at 5 p.m. ET on Thursday, new lender commitments are due at 5 p.m. ET on Friday and closing is expected to occur on Dec. 30, the source remarked.

Citigroup Global Markets Inc. and Deutsche Bank Securities Inc. are leading the deal.

Four Seasons is a Toronto-based luxury hotels company.

Infor flat to down

Infor's term loan B-2 was seen by one trader at par ¼ bid, par ¾ offered, down from around the 101 area, and by a second trader at par 1/8 bid, par ½ offered, unchanged on the day, as a refinancing of the debt was launched with a call in the afternoon.

For the refinancing, the company is seeking a $1 billion term loan B-4 due April 5, 2018 and a $1.54 billion term loan B-5 due June 3, 2020, both talked at Libor plus 275 bps with a 1% Libor floor and 101 soft call protection for six months, a source said.

The term loan B-4 is offered at par and the term loan B-5 is offered at an original issue discount of 98½ to 99, the source added.

By comparison, current pricing on the B-2 loan is Libor plus 400 bps with a 1.25% Libor floor.

Leads, Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc., Barclays, Deutsche Bank Securities Inc., RBC Capital Markets LLC and KKR Capital Markets, are asking for commitments by noon ET on Friday.

Infor is a New York-based provider of business software.

Actuant Electrical holds steady

Actuant Electrical's $130 million six-year term loan B was seen at 99 bid, par offered in the secondary market, in line with where it broke on Friday, according to a trader.

Pricing on the loan is Libor plus 450 bps with a 1% Libor floor and it was sold at an original issue discount of 99. There is 101 soft call protection for six months.

During syndication, the spread on the B loan firmed at the wide end of the Libor plus 425 bps to 450 bps talk.

The company's $150 million credit facility also includes a $20 million five-year revolver.

RBC Capital Markets LLC and NXT Capital are leading the deal that will be used with $60 million of senior subordinated notes to fund the $258 million buyout of the company by Sentinel Capital Partners from Actuant Corp.

Actuant Electrical is a Menomonee Falls, Wis.-based provider of products for the retail do-it-yourself, marine, industrial OEM and wholesale electrical markets.

Ardagh flexes

Over in the primary, Ardagh Group lowered the spread on its €130 million six-year covenant-light senior secured term loan B (Ba3/B+) to Euribor plus 325 bps from Euribor plus 350 bps, while keeping the 1% floor, original issue discount of 99½ and 101 soft call protection for six months intact, according to a market source.

The company is also getting a $500 million six-year covenant-light senior secured term loan B (Ba3/B+) that remained at Libor plus 325 bps with a 1% Libor floor, discount of 99½ and 101 soft call protection for six months.

Last week, pricing on the U.S. term loan was reduced from talk of Libor plus 350 bps to 375 bps, and the discount on both tranches was tightened from 99. At launch, the euro term loan was talked 25 bps wide of the U.S. tranche.

Allocations are expected on Wednesday. Closing is targeted for Dec. 17.

Citigroup Global Markets Inc. is leading the deal that will be used to repay 9¼% first-priority senior secured notes due 2016 issued by Ardagh Glass Finance plc and for general corporate purposes.

Ardagh is a Dublin-based supplier of glass and metal packaging.

Chrysler guidance

Chrysler Group LLC launched with a call on Monday its $2,932,500,000 senior secured term loan B due May 24, 2017, and released talk of Libor plus 275 bps with a 0.75% to 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 325 bps with a 1% Libor floor.

Commitments are due at 10 a.m. ET on Friday and closing is expected to occur on Dec. 23, the source continued.

Morgan Stanley Senior Funding Inc., Citigroup Global Markets Inc., Bank of America Merrill Lynch and Goldman Sachs Bank USA are leading the deal.

Chrysler is an Auburn Hills, Mich.-based automotive company.

U.S. Renal discloses talk

U.S. Renal Care held its call, launching its roughly $637 million first-lien covenant-light term loan due July 3, 2019 with talk of Libor plus 325 bps with a 1% Libor floor, a par offer price and 101 soft call protection for six months, according to a market source.

Commitments are due on Thursday, the source said.

Proceeds will be used to reprice an existing term loan from Libor plus 400 bps with a 1% Libor floor, and existing lenders will be paid out at 101.

Barclays and RBC Capital Markets are leading the deal.

U.S. Renal is a Plano, Texas-based developer, acquirer and operator of outpatient treatment centers for persons suffering from chronic kidney failure.

Omnitracs details emerge

Omnitracs revealed structure and talk on its incremental first- and second-lien term loans that launched during the session, and set a commitment deadline of Dec. 16, according to a market source.

The $155 million add-on first-lien term loan (B1) is talked at Libor plus 375 bps with a step-down to Libor plus 350 bps when total net leverage is 4.5 times, a 1% Libor floor and an original issue discount of 99½ to 993/4, the source said.

And the $50 million add-on second-lien term loan (Caa1) is talked at Libor plus 775 bps with a step-down to Libor plus 750 bps when total net leverage is 4.5 times, a 1% Libor floor and a discount of 99½ to 993/4, the source continued.

Spreads and floors on the add-on loans are in line with existing first-and second-lien loan pricing.

RBC Capital Markets, Credit Suisse Securities (USA) LLC and Guggenheim Corporate Funding, LLC are leading the deal that will be used to help fund the acquisition of Roadnet Technologies Inc.

Closing is expected this month, subject to clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and other customary conditions.

Omnitracs is a San Diego-based provider of satellite and terrestrial-based connectivity and position location services to transportation and logistics companies. Roadnet is a Baltimore-based provider of routing, scheduling, optimization and mobile resource management software services.

Spansion on deck

Spansion set a call for 1 p.m. ET on Tuesday to launch an $84 million fungible add-on term loan B that will be used to refinance existing 7 7/8% senior notes due 2017, according to a market source.

In addition, the company will launch a repricing of its existing $216 million term loan B from Libor plus 400 bps with a 1.25% Libor floor, the source said.

Morgan Stanley Senior Funding Inc. and Barclays are leading the $300 million senior secured deal.

Spansion is a Sunnyvale, Calif.-based semiconductor device company principally dedicated to designing, manufacturing, marketing, licensing and selling NOR Flash memory technology.

AFGlobal coming soon

AFGlobal scheduled a call for noon ET on Tuesday to launch $150 million in add-on term loan debt, according to sources.

The debt consists of a $100 million add-on first-lien term loan talked at Libor plus 375 bps with a 1.25% Libor floor and a $50 million add-on second-lien term loan talked at Libor plus 750 bps with a 1.25% Libor floor, sources said, adding the original issue discounts are not yet available.

The spreads and floors on the add-on loans match the existing first-and second-lien loan terms.

Deutsche Bank Securities Inc., UBS Securities LLC, Goldman Sachs Bank USA, RBC Capital Markets LLC and BNP Paribas Securities Corp. are leading the deal that will be used to fund an acquisition, repay revolver debt and general corporate purposes.

AFGlobal is a Houston-based manufacturer of highly engineered products, subassemblies and integrated systems for the oil and gas, midstream, downstream, power generation, aerospace, transportation and industrial markets.

Laureate joins calendar

Laureate Education will hold a conference call at 2:30 p.m. ET on Tuesday to launch a term loan to new and existing lenders, according to a market source.

Citigroup Global Markets Inc. is leading the deal for the Baltimore-based provider of higher educational services.

Further details are not yet available.

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