NXP dips with lender call news; Cablevision tweaks deal; Versum, Badger, Concentra launch

By Sara Rosenberg

New York, Sept. 9 – NXP BV’s term loans were softer in the secondary market on Friday after plans for a lender call was announced to investors, although the purpose of the call was not disclosed.

Moving to the primary market, Cablevision Systems Corp. (CSC Holdings LLC) increased the size of its term loan and reduced pricing as a result of strong demand, and Versum Materials LLC, Badger Sportswear and Concentra Inc. released price talk on their term loans with launch.

Also, ConvergeOne Holdings Corp., Wesco Aircraft Hardware Corp., Keter Group, PlayPower Inc., WellDyneRx Inc., Windstream Services LLC, Donnelley Financial Solutions Inc. and JDA Software Group Inc. joined the near-term new issue calendar.

Furthermore, HD Supply Inc. and Constantia Flexibles came out with plans to hold lender calls, and G-III Apparel Group Ltd. and Nexstar Broadcasting Group Inc. released timing on the launch of their loan deals.

NXP loans retreat

NXP’s term loans headed lower in trading on Friday following word that the company will host a call at 11 a.m. ET on Monday for loan investors, a trader said.

The term loan B was quoted at 100¼ bid, 100¾ offered, down from 100 7/8 bid, 101¼ offered, the term loan D was quoted at 100 3/8 bid, 100 5/8 offered, down from 100 5/8 bid, 101 offered, and the term loan E was quoted at par bid, 100¼ offered, down on the offer side from par bid, 100½ offered, the trader added.

Deutsche Bank Securities Inc. is leading the deal.

NXP is an Eindhoven, Netherlands-based maker of semiconductors.

Cablevision revised

Switching to the primary market, Cablevision raised its eight-year term loan B (Ba1) to $2.5 billion from $1.9 billion and trimmed pricing to Libor plus 300 basis points from Libor plus 325 bps, according to a market source.

As before, the term loan has a 0.75% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months.

J.P. Morgan Securities LLC is leading the deal that will be used with $1.3 billion of bonds, downsized from $1.9 billion with the term loan upsizing, to refinance the company’s existing term loan B due October 2022 priced at Libor plus 400 bps with a 1% Libor floor.

Cablevision is a Bethpage, N.Y.-based media and telecommunications company.

Versum discloses guidance

Versum Materials held its bank meeting on Friday, launching its $575 million seven-year covenant-light term loan B with talk of Libor plus 300 basis points to 325 bps with a 25 bps step-down in pricing when total net leverage is less than 2.5 times, a 0.75% Libor floor, an original issue discount of 99.5 and 101 soft call protection for one year, according to a market source.

The company’s $775 million senior secured credit facility (Ba1/BB+) also includes a $200 million five-year revolver.

Commitments are due at 5 p.m. ET on Sept. 22, the source said.

Citigroup Global Markets Inc., Deutsche Bank Securities Inc., HSBC Securities (USA) Inc. and Wells Fargo Securities LLC are leading the deal that is being done in connection with the company’s spin-off from Air Products and Chemicals Inc. to help fund a distribution to Air Products.

Versum also expects to distribute in-kind to Air Products up to $425 million of unsecured senior notes.

Tempe, Ariz.-based Versum is a producer of critical materials and equipment for the semiconductor and display industries.

Badger releases talk

Badger Sportswear revealed talk of Libor plus 450 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months on its $190 million seven-year term loan that launched with a lender meeting in the morning, a market source said.

Commitments are due on Sept. 23, the source continued.

The company’s senior credit facility also includes a $20 million six-year revolver and a $75 million second-lien term loan that has been privately placed.

Antares Capital is leading the deal, which will be used to help fund the buyout of the company by CCMP Capital Advisors.

Closing is targeted for Sept. 28, the source added.

Badger Sportswear is a Statesville, N.C.-based manufacturer and supplier of on-field uniforms and performance athletic apparel focused on serving youth and adult recreational leagues, as well as elementary, middle and high schools.

Concentra launches

Concentra hosted a lender call in the morning to launch a fungible $200 million add-on term loan at talk of Libor plus 300 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, a market source remarked.

J.P. Morgan Securities LLC is leading the deal that will be used to repay second-lien debt.

Concentra is an Addison, Texas-based health care company that delivers a wide range of medical services to employers and patients.

ConvergeOne joins calendar

Also in the primary market, ConvergeOne emerged with plans to hold a bank meeting at 10 a.m. ET in New York on Tuesday to launch a $485 million credit facility, split between a $50 million revolver, a $335 million seven-year first-lien term loan and a $100 million eight-year second-lien term loan, according to a market source.

Talk on the first-lien term loan is Libor plus 500 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, and talk on the second-lien term loan is Libor plus 900 bps with a 1% Libor floor, a discount of 98 and call protection of 102 in year one and 101 in year two, the source said.

Commitments are due at 5 p.m. ET on Sept. 27.

Credit Suisse Securities (USA) LLC and TD Securities (USA) LLC are leading the deal that will be used to refinance existing debt and fund a shareholder distribution.

ConvergeOne is an Eagan, Minn.-based provider of communications solutions.

Wesco readies deal

Wesco Aircraft scheduled a bank meeting for Tuesday to launch a $600 million five-year senior secured credit facility, a market source said.

The facility consists of a $200 million revolver and a $400 million term loan A, the source added.

Barclays is the left lead on the deal that will be used to refinance the company’s existing revolver and term loan A due 2017, and to pay related fees and expenses.

Wesco Aircraft is a Valencia, Calif.-based distributor and provider of supply chain management services to the aerospace industry.

Keter being acquired

Keter Group will hold a bank meeting in London on Monday and one in New York on Wednesday to launch a €790 million credit facility that will be used to help fund its buyout by BC Partners and PSP Investments, according to a market source.

The facility consists of a €100 million revolver and a €690 million-equivalent covenant-light term loan B that will be split into U.S. dollar and euro tranches, the source said.

Talk on the term loan B is Libor/Euribor plus 425 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, the source added.

J.P. Morgan Securities LLC and UBS Investment Bank are leading the deal, with JPMorgan left on the U.S. piece and UBS left on the euro piece.

Keter Group is an Israel-based provider of furniture, storage and organization solutions.

PlayPower on deck

PlayPower set a lender call for Monday to launch a $70 million add-on first-lien term loan (B2/B), according to a market source.

SG Americas Securities LLC is leading the debt that will be used with equity to fund the acquisition of Playworld.

First-lien leverage is 3.6 times and total leverage is 4.4 times, the source said.

PlayPower is a Huntersville, N.C.-based manufacturer of commercial playground equipment, shade structures and floating dock systems. Playworld is a Lewisburg, Pa.-based designer and manufacturer of active and outdoor play products.

WellDyneRx deal surfaces

WellDyneRx scheduled a bank meeting for Tuesday to launch a $505 million credit facility that consists of a $50 million revolver, a $315 million first-lien term loan and a $140 million second-lien term loan, market sources said.

J.P. Morgan Securities LLC, UBS Investment Bank, Jefferies Finance LLC and MUFG are leading the deal.

Proceeds will be used to help fund the buyout of the company by The Carlyle Group, which is expected to close this year, subject to customary regulatory approvals.

WellDyneRx is a Lakeland, Fla.-based pharmacy benefit manager.

Windstream plans loan

Windstream Services will hold a lender call on Monday to launch a roughly $700 million term loan B-6, according to a market source.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance an existing term loan and to pay down some notes, the source said.

Windstream is a Little Rock, Ark.-based provider of network communications and technology solutions.

Donnelley new deal

Donnelley Financial scheduled a bank meeting for Tuesday to launch a proposed $350 million term loan, a market source remarked.

Based on filings with the Securities and Exchange Commission, the company is also expected to get a $300 million revolver.

J.P. Morgan Securities LLC is leading the deal that is being done in connection with the company’s spin-off from R. R. Donnelley & Sons Co. and will be used to reduce debt at R. R. Donnelley.

Donnelley Financial is a Chicago-based financial communications services company.

JDA refinancing

JDA Software Group set a bank meeting for Monday to launch a $1.2 billion seven-year term loan B (B) that will be used to refinance existing debt in connection with a $570 million equity investment by Blackstone and New Mountain Capital, according to a market source.

Proceeds from the equity will also be used to retire existing debt.

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

The investment is expected to be completed by early in the fourth quarter, subject to customary conditions. New Mountain Capital will remain as the company’s majority shareholder post-investment.

JDA is a Scottsdale, Ariz.-based provider of end-to-end, integrated retail, omni-channel and supply chain planning and execution solutions.

HD Supply coming soon

HD Supply set a call for 11 a.m. ET on Monday for loan lenders, with details on the transaction unavailable at this time, according to a market source.

Bank of America Merrill Lynch, Barclays, Goldman Sachs Bank USA, J.P. Morgan Securities LLC and Wells Fargo Securities LLC are leading the deal.

HD Supply is an Atlanta-based industrial distributor.

Constantia schedules call

Constantia Flexibles will hold a loan lender call on Tuesday to launch a transaction that is being led by J.P. Morgan Securities LLC, a market source said.

Constantia Flexibles is a Vienna-based manufacturer of flexible packaging products and labels.

G-III timing emerges

G-III Apparel Group scheduled a bank meeting for Sept. 16 to launch its previously announced $1 billion senior secured credit facility, according to an 8-K filed with the Securities and Exchange Commission on Friday.

The facility consists of a $350 million six-year term loan with 101 soft call protection for six months and a $650 million five-year ABL revolver.

Pricing on the revolver is expected to range from Libor plus 125 bps to 175 bps based on excess availability, with the initial rate set at Libor plus 150 bps. There is a 25-bps undrawn fee and a 37.5-bps upfront fee.

Commitments are due on Sept. 30, the filing said.

Barclays and J.P. Morgan Securities LLC are the joint lead arrangers on the term loan, and Barclays, JPMorgan and Bank of America Merrill Lynch are the joint lead arrangers on the revolver.

G-III buying Donna Karan

Proceeds from G-III Apparel’s credit facility will be used to help fund the acquisition of Donna Karan International Inc. from LVMH Moet Hennessy Louis Vuitton for $650 million, subject to customary adjustments at closing, and to replace an existing $450 million ABL revolver.

The company will also use $75 million of newly issued G-III common stock to LVMH and a $75 million 6.5-year seller note to fund the acquisition.

Total net leverage will be 3.1 times, based on LTM second quarter pro forma adjusted EBITDA.

Closing is expected late this year or early next year, subject to certain conditions.

G-III Apparel is a New York-based designer, manufacturer and marketer of branded apparel and accessories.

Nexstar sets meeting

Nexstar Broadcasting will hold a bank meeting on Tuesday to launch its $2.85 billion seven-year covenant-light term loan B that was announced a few months ago, a market source remarked.

Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., SunTrust Robinson Humphry Inc., Barclays and Wells Fargo Securities LLC are leading the deal.

The company’s $3,295,000,000 senior secured credit facility (Ba3) is also expected to include a $175 million five-year revolver and a $270 million five-year term A, according to filings with the Securities and Exchange Commission.

Those filings said that the term loan B is expected at Libor plus 425 bps with a 1% Libor floor and 101 soft call protection for six months, and the revolver and term loan A are expected at Libor plus 325 bps.

Nexstar funding acquisition

Proceeds from Nexstar’s credit facility will be used to help fund the acquisition of Media General Inc. for $10.55 per share in cash and 0.1249 of a share of Nexstar class A common stock for each Media General share.

The company also has a commitment for a $250 million 18-month senior secured short-term term facility expected at Libor plus 325 bps, which will be reduced by the amount of unrestricted cash and cash equivalents on hand at the companies immediately prior to closing in excess of certain divesture proceeds received by Nexstar.

Closing is expected in the third quarter or early in the fourth quarter, subject to a vote by stockholders of Media General and Nexstar, FCC approval and other regulatory approvals, and other customary conditions.

Nexstar is an Irving, Texas-based diversified media company. Media General is a Richmond, Va.-based television broadcasting and digital media company. Upon closing, Nexstar will change its name to Nexstar Media Group Inc.

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