American Casino frees to trade; Protection 1, Zep, Media General deal updates surface

By Sara Rosenberg

New York, June 18 – American Casino & Entertainment Properties LLC’s credit facility broke for trading on Thursday, with the term loan quoted above its original issue discount that came at the tight end of guidance.

Over in the primary, Protection 1 (Apollo Security Services Borrower LLC) moved some funds between its first-and second-lien term loans while also modifying issue prices, Zep Inc. lowered pricing on its term loan B and tightened the original issue discount, and Media General Inc. finalized the spread on its repriced term loan B at the high end of guidance.

Also, Belcan Corp. (Propulsion Acquisition LLC) and Univar Inc. released price talk with launch, and Summit Materials LLC and Hamilton Lane Advisors LLC joined the near-term primary calendar.

American Casino tops OID

American Casino & Entertainment Properties’ credit facility hit the secondary market on Thursday, with the $295 million first-lien term loan seen at 99¾ bid, par ¾ offered, according to a trader.

Pricing on the term loan is Libor plus 400 basis points with a 1% Libor floor, and it was sold at an original issue discount of 99.5, after firming at the tight end of the 99 to 99.5 talk. The debt has 101 soft call protection for six months.

The company’s $310 million credit facility (B2/BB-) also includes a $15 million revolver.

Goldman Sachs Bank USA and Deutsche Bank Securities Inc. are leading the deal that will be used to refinance existing first- and second-lien borrowings.

American Casino is a Las Vegas-based owner and operator of gaming and entertainment properties.

Protection 1 reworked

Switching to the primary market, Protection 1 lifted its six-year first-lien covenant-light term loan (B1/B) to $1,095,000,000 from $1,055,000,000 and moved the original issue discount to 99.5 from 99, a market source remarked.

Additionally, the company’s seven-year second-lien covenant-light term loan (Caa1/CCC+) was cut to $260 million from $300 million and the discount was tightened to 98.5 from 98, the source said.

As before, the first-lien term loan is priced at Libor plus 400 bps with a 1% Libor floor and has 101 soft call protection for six months, and the second-lien term loan is priced at Libor plus 875 bps with a 1% Libor floor and has call protection of 102 in year one and 101 in year two.

The company’s $1.45 billion credit facility also includes a $95 million revolver (B1/B).

Commitments were due at 5 p.m. ET on Thursday, the source added.

Protection 1 lead banks

Credit Suisse Securities (USA) LLC, Barclays, Deutsche Bank Securities, Jefferies Finance LLC, RBC Capital Markets and Goldman Sachs Bank USA are leading Protection 1’s credit facility.

Proceeds will be used to help fund the buyout of the company by Apollo Global Management LLC and the combination with ASG Security, which is also being purchased by Apollo, and to refinance existing debt.

Closing is expected mid-year.

Protection 1 is an Illinois-based business and home security company. ASG Security is a Beltsville, Md.-based electronic security and monitoring company. The merged company will continue to operate under the Protection 1 brand.

Zep flexes lower

Zep trimmed pricing on its $360 million seven-year term loan B to Libor plus 475 bps from Libor plus 500 bps and changed the original issue discount to 99.5 from 99, according to a market source.

The term loan still has a 1% Libor floor and 101 soft call protection for one year.

The company’s $402.5 senior secured credit facility (B2/B+) also includes a $42.5 million five-year revolver.

Allocations are expected on Friday, the source remarked.

Jefferies Finance, KeyBanc Capital Markets Inc. and Credit Suisse Securities are leading the deal that will be used with $382.5 million in equity to fund the buyout of the company by New Mountain Capital LLC for $20.05 per share in cash. The transaction is valued at about $692 million, including net debt.

Closing is expected in the third quarter, subject to stockholder and regulatory approvals.

Zep is an Atlanta-based consumable chemical packaged goods company.

Media General sets spread

Media General firmed pricing on its $1,666,000,000 covenant-light term loan B due July 2020 at Libor plus 300 bps, the high end of the Libor plus 275 bps to 300 bps talk, a market source said.

As before, the loan has a 1% Libor floor, a par issue price and 101 soft call protection for six months.

Commitments were due at 5 p.m. ET on Thursday.

RBC Capital Markets is the lead bank on the deal that will be used to reprice an existing term loan B down from Libor plus 325 bps with a 1% Libor floor.

Media General is a Richmond, Va.-based local television broadcasting and digital media company.

Belcan reveals talk

Also in the primary, Belcan held its bank meeting on Thursday afternoon, and a few hours before the event kicked off, price talk of Libor plus 550 bps with a 1% Libor floor and an original issue discount of 99 surfaced on its proposed $190 million seven-year first-lien term loan (B3/B), according to a market source.

As previously reported, the term loan has 101 soft call protection for six months.

Along with the term loan, the company’s $225 million credit facility includes a $35 million ABL revolver.

Commitments are due at 5 p.m. ET on July 8.

Credit Suisse Securities and PNC Capital Markets are leading the term loan, and PNC is sole lead on the revolver.

Proceeds will be used to fund the acquisition of the company by AE Industrial Partners LLC, which is expected to close by the third quarter.

Belcan is a Cincinnati-based engineering services and technical staffing provider in the aerospace, power generation and industrial markets.

Univar discloses guidance

Univar launched with a bank meeting a $2.05 billion seven-year covenant-light term loan (BB-) talked at Libor plus 325 bps to 350 bps and a €250 million seven-year covenant-light term loan (BB-) talked at Euribor plus 325 bps, sources said. Both tranches are also guided with a 1% floor, an original issue discount of 99.5 and 101 soft call protection for six months.

Commitments are due on Wednesday, sources added.

Bank of America Merrill Lynch, Deutsche Bank Securities, Goldman Sachs Bank USA, J.P. Morgan Securities LLC, Wells Fargo Securities LLC, HSBC Securities (USA) Inc., SunTrust Robinson Humphrey Inc., Morgan Stanley Senior Funding Inc., Barclays, Citigroup Global Markets Inc. and Credit Suisse Securities are leading the deal that will be used to repay existing term loan debt.

Also as part of the refinancing, the company expects to get a new senior secured ABL credit facility comprised of $1.3 billion in five-year revolvers in two tranches and a $100 million three-year term loan.

Univar is a Downers Grove, Ill.-based distributor of industrial and specialty chemicals.

Summit readies loan

Summit Materials surfaced with plans to hold a lender call at 10 a.m. ET on Friday to launch a $650 million seven-year covenant-light term loan B (B1), according to a market source.

Bank of America Merrill Lynch, Deutsche Bank Securities, Goldman Sachs Bank USA, Citigroup Global Markets, Barclays and RBC Capital Markets are leading the deal that will be used with $275 million of senior unsecured notes and an $80 million equity raise to fund the acquisition of a 1.2 million short ton capacity Davenport, Iowa, cement plant and seven cement distribution terminals from Lafarge North America, refinance an existing term loan B due 2019 and repay a portion of the existing senior notes due 2020.

The assets are being bought for $450 million, with $370 million due at closing, which is expected in July, subject to regulatory approval and the Lafarge-Holcim merger closing, and $80 million due no later than Dec. 31, 2015.

Pro forma secured net leverage will be 2.5 times, and total net leverage will be 4.6 times.

Summit is a Denver-based construction materials company.

Hamilton Lane on deck

Hamilton Lane Advisors set a lender meeting for 2:30 p.m. ET on Monday to launch a $260 million senior secured term loan B, according to a market source.

Morgan Stanley Senior Funding is leading the deal.

Hamilton Lane is a financial institution that provides discretionary and non-discretionary private equity asset management services.

Alere closes

In other news, Alere Inc. completed its $1.95 billion credit facility (Ba3/B+) that includes a $250 million five-year revolver, a $650 million five-year term loan A and a $1.05 billion seven-year covenant-light term loan B, a news release said.

Pricing on the revolver and term loan A is Libor plus 300 bps, and pricing on the term loan B is Libor plus 325 bps with a step-down to Libor plus 300 bps at 2.25 times first-lien leverage and a 1% Libor floor. The B loan was issued at a discount of 99.75 and has 101 soft call protection for six months.

During syndication the term loan B was downsized from $1.1 billion as the term loan A was upsized from $600 million, pricing firmed at the low end of the Libor plus 325 bps to 350 bps talk, the step-down was added and the discount was revised from 99.5.

Goldman Sachs Bank USA, GE Capital Markets, JPMorgan, RBC Capital Markets, DNB Markets Inc., Citizens Bank and HSBC Securities led the deal that was used with $425 million of senior subordinated notes to refinance existing debt.

Alere is a Waltham, Mass.-based provider of near-patient diagnosis, monitoring and health management.

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