Cablevision, Beacon Roofing Supply, Hanson Building Products break; Schumacher modifies deal

By Sara Rosenberg

New York, Sept. 25 – Cablevision Systems Corp. upsized its term loan B, firmed pricing at the high end of revised guidance and freed up for trading on Friday, and deals from Beacon Roofing Supply Inc. and Hanson Building Products (Stardust Finance Holdings Inc.) hit the secondary as well.

In other happenings, Schumacher Group tightened pricing and issue price on its first-lien term loan while increasing the spread on its second-lien loan, and Allied Security Holdings LLC (AlliedBarton) and Quincy Newspapers Inc. emerged with new deal plans.

Cablevision revised

Cablevision upsized its seven-year term loan B to $3.8 billion from a revised amount of $3.3 billion and an initial amount of $2.3 billion, and set the spread at Libor plus 400 basis points, the high end of revised talk of Libor plus 375 bps to 400 bps and wide of initial talk of Libor plus 350 bps, according to a market source.

The term loan has a 1% Libor floor, an original issue discount of 98.5 and 101 soft call protection for one year.

Upon the first upsizing, the discount on the term loan widened from 99 and the call protection was extended from six months.

Due to the term loan upsizings, the company’s bond deal was downsized to $4.8 billion from $6.3 billion.

The company’s now $5.8 billion credit facility (Ba1/BB-) also includes a $2 billion five-year revolver.

J.P. Morgan Securities LLC, BNP Paribas and Barclays are leading the deal.

Cablevision tops OID

With final terms in place, Cablevision’s credit facility broke for trading on Friday afternoon, with the term loan B quoted by one trade at 99 3/8 bid, 99 7/8 offered and by a second trader at 99 3/8 bid, 99¾ offered.

Proceeds from the credit facility and bonds will be used to help fund Cablevision’s acquisition by Altice NV for $34.90 in cash per share and to repay $2.5 billion in existing term loans. The enterprise value of the transaction is $17.7 billion.

At closing, Cablevision will be an unrestricted subsidiary of Altice with a separate capital structure.

Net total debt will be 4.9 times including synergies and 7.1 times excluding synergies.

Closing is expected in the first half of 2016, subject to regulatory and other customary approvals. Cablevision shareholders have already approved the transaction by written consent.

Cablevision is a Bethpage, N.Y.-based media and telecommunications company. Altice is a Luxembourg-based cable, fiber, telecommunications, contents and media company.

Beacon frees up

Beacon Roofing Supply’s credit facility also began trading during the session, with the $450 million seven-year covenant-light senior secured term loan B (B2/BB+) quoted at 99 7/8 bid, 100 3/8 offered, according to a trader.

Pricing on the term loan is Libor plus 300 bps with a 1% Libor floor, and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months.

During syndicate, pricing on the term loan was reduced from talk of Libor plus 325 bps to 350 bps.

Citigroup Global Markets Inc., Wells Fargo Securities LLC, J.P. Morgan Securities LLC, Bank of America Merrill Lynch and SunTrust Robinson Humphrey Inc. are leading the term loan.

In addition to the term loan B, the company’s $1.15 billion credit facility includes a $700 million five-year ABL revolver left-led by Wells Fargo.

Beacon buying Roofing

Proceeds from Beacon Roofing Supply’s credit facility will be used to help fund the acquisition of Roofing Supply Group from Clayton, Dubilier & Rice in a cash and stock transaction valued at around $1.1 billion.

Roofing Supply Group shareholders will receive about $286 million in cash and $291 million of Beacon common stock, and Beacon will refinance around $565 million of Roofing Supply Group’s net debt.

Other funds for the transaction will come from $300 million of eight-year senior unsecured notes and $291 million in new stock and options.

Closing is expected on Oct. 1, subject to the expiration or termination of the applicable waiting periods under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and other customary conditions.

Beacon Roofing Supply is a Herndon, Va.-based distributor of roofing materials and complementary building products. Roofing Supply Group is a Dallas-based distributor of roofing supplies and related materials.

Hanson hits secondary

Another deal to free up was Hanson Building Products’ fungible $240 million incremental first-lien term loan due March 13, 2022, with levels seen at 99 bid, par offered, a market source said.

Pricing on the incremental term loan is Libor plus 550 bps with a 1% Libor floor, in line with existing term loan pricing, and it was sold at an original issue discount of 99. Like the existing loan, the incremental loan has 101 soft call protection through March 13, 2016.

Credit Suisse Securities (USA) LLC, Barclays and Goldman Sachs Bank USA are leading the deal that will be used to fund the acquisition of Cretex Concrete Products Inc.

Hanson Building Products is a manufacturer of concrete and clay building products.

Schumacher changes emerge

Back in the primary market, Schumacher Group trimmed pricing on its $400 million seven-year first-lien term loan (B1/B) to Libor plus 400 bps from Libor plus 425 bps and modified the original issue discount to 99.25 from 99, while leaving the 1% Libor floor and 101 soft call protection for six months intact, according to a market source.

As for the $135 million eight-year second-lien term loan (Caa1/CCC+), pricing was lifted to Libor plus 850 bps from Libor plus 825 bps, and the 1% Libor floor, discount of 99 and call protection of 102 in year one and 101 in year two were unchanged, the source said.

The company’s $610 million credit facility also includes a $75 million revolver (B1/B).

Recommitments are due at 11 a.m. ET on Monday, the source added.

Schumacher lead banks

Credit Suisse Securities (USA) LLC, Jefferies Finance LLC, BMO Capital Markets and Barclays are leading Schumacher’s credit facility.

Proceeds will be used to back the already completed buyout of Schumacher by Onex Corp. and subsequent purchase of Hospital Physician Partners by Schumacher.

Schumacher is a Lafayette, La.-based provider of outsourced emergency and hospital medicine clinical staffing services. Hospital Physician is a Hollywood, Fla.-based provider of emergency and hospital medicine contract management services.

Allied Security on deck

Allied Security set a lender call for 4 p.m. ET on Tuesday to launch $114 million in add-on first-and second-lien term loans, according to a market source.

The debt consists of an $84 million add-on covenant-light first-lien term loan (B1/B+) due February 2021 talked at Libor plus 325 bps with a 1% Libor floor, and a $30 million add-on covenant-light second-lien term loan (Caa2/CCC+) due August 2021 talked at Libor plus 700 bps with a 1% Libor floor and 101 call protection through Feb. 14, 2016, the source said. Original issue discounts on the add-on loans are still to be determined.

Spreads and floors on the add-on term loans match existing first-and second-lien loan pricing.

In addition, the add-on loans have a ticking fee of the full spread plus the floor starting on day 31, the source continued.

Allied funding buyout

Proceeds from Allied Security’s term loans will be used to help finance its acquisition by Wendel Group from Blackstone for about $1.67 billion.

Credit Suisse Securities (USA) LLC is leading the debt.

Commitments are due at 5 p.m. ET on Oct. 6, the source added.

Other funds for the transaction will come from an equity investment from Wendel of around $670 million.

Allied Security is a Conshohocken, Pa.-based security officer services company.

Quincy coming soon

Quincy Newspapers scheduled a bank meeting for 10 a.m. ET on Tuesday to launch a $280 million credit facility, a market source said.

The facility consists of a $30 million five-year revolver and a $250 million seven-year covenant-light term loan, the source continued.

Wells Fargo Securities LLC and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to fund the acquisition of nine television stations from Granite Broadcasting Corp. and Malara Broadcast Group and to refinance existing debt.

Quincy Newspapers is a Quincy, Ill.-based media company.

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