99 Cents, Neiman slide with earnings; Konecranes Terex, ProQuest, DTZ changes surface

By Sara Rosenberg

New York, Dec. 14 – 99 Cents Only Stores LLC’s term loan fell considerably lower in trading on Monday following the release of disappointing third quarter numbers, and Neiman Marcus Group LLC’s term loan dropped, also on earnings news.

Switching to the primary, Konecranes Terex plc outlined U.S. and euro tranche sizes under its term loan B, set the spread at the high end of talk, revised the issue price and sweetened the call protection.

Furthermore, ProQuest LLC modified the original issue discount on its incremental first-lien term loan, and DTZ (DTZ U.S. Borrower LLC and DTZ AUS Holdco Pty Ltd.) trimmed the size of its add-on second-lien term loan.

99 Cents plummets

99 Cents Only Stores’ term loan retreated in the secondary market on Monday after third quarter numbers were released, according to a trader.

The term loan was quoted at 60 bid, 65 offered, down from 70 bid, 75 offered on Friday, the trader said.

For the third quarter of fiscal 2016, the company had a net loss of $152.6 million, compared to a net loss of $3.8 million in the prior year.

Net sales for the quarter were $491.5 million, compared to $478.3 million in the third quarter of fiscal 2015.

And, adjusted EBITDA for the quarter was $5.1 million, versus $27.1 million last year.

99 Cents is a City of Commerce, Calif.-based operator of extreme-value retail stores.

Neiman weakens

Neiman Marcus’ term loan fell to 86 bid, 88 offered from 90˝ bid, 91˝ offered with first fiscal quarter earnings results, a trader remarked.

For the first quarter, the company reported total revenue of $1.16 billion, down 1.8% from $1.19 billion in the first quarter of fiscal year 2015.

Net loss in the quarter was $10.5 million, versus net earnings of $0.2 million last year.

And, adjusted EBITDA for the quarter was $164.3 million, compared to $194.3 million in the prior year.

Neiman Marcus is a Dallas-based luxury retailer.

Konecranes Terex updates deal

Moving to the primary market, Konecranes Terex set the split on its $900 million-equivalent U.S. dollar and euro seven-year term loan B as a $355 million tranche and a €500 million tranche, versus talk at launch of an up to €400 million tranche, according to a market source.

Additionally, pricing on the term B debt firmed at Libor plus 375 basis points, the high end of the Libor plus 350 bps to 375 bps talk, the original issue discount moved to 98 from 99, and the 101 soft call protection was pushed out to one year from six months, the source said.

As before, the B loan has a 0.75% floor.

Recommitments were due from U.S. investors at 5 p.m. ET on Monday, and are due from European investors at noon London time on Tuesday, the source added.

The company’s $1.6 billion credit facility (Ba2/BB+) also includes a $700 million multi-currency revolver.

Konecranes Terex leads

Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Commerzbank, Credit Agricole and Nordea Bank are leading Konecranes Terex’s credit facility.

Proceeds will be used to help fund the merger of Terex Corp. and Konecranes plc, and to refinance existing bank facilities at both companies as needed.

Closing is expected in the first half of 2016, subject to approval by Terex and Konecranes shareholders, regulatory approvals and customary conditions.

Konecranes is a Hyvinkaa, Finland-based provider of lifting solutions as well as services for lifting equipment and machine tools of all makes. Terex is a Westport, Conn.-based diversified equipment manufacturer. The combined company will be named Konecranes Terex plc.

ProQuest tweaks OID

ProQuest changed the original issue discount on its $275 million incremental first-lien term loan (B2/B) to 97.5 from 99, a market source said.

The incremental term loan is still priced at Libor plus 475 bps with a 1% Libor floor, and still has 101 soft call protection for six months.

However, the 101 soft call protection for six months will now also apply to the company’s existing first-lien term loan, instead of just to the incremental term loan, the source continued.

The existing loan is being repriced to Libor plus 475 bps with a 1% Libor floor from Libor plus 425 bps with a 1% Libor floor in connection with the incremental loan, the source added.

Goldman Sachs Bank USA, Bank of America Merrill Lynch and Credit Suisse Securities (USA) LLC are leading the first-lien term loan that will be used with a $125 million pre-placed second-lien term loan (Caa1/B-) and equity to fund the acquisition of Ex Libris Group, a provider of library automation solutions.

ProQuest is an Ann Arbor, Mich.-based information solutions provider.

DTZ downsizes

DTZ cut its add-on second-lien term loan due in 2022 to $25 million from $75 million and left pricing at Libor plus 825 bps with a 1% Libor floor and an original issue discount of 98.5, according to a market source.

The company is still also getting a $75 million add-on first-lien term loan due in 2021 priced at Libor plus 325 bps with a 1% Libor floor and an original issue discount of 97.85.

UBS AG is leading the debt that will be used for general corporate purposes.

DTZ is a real estate services company.

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