Shoes for Crews, Allison Transmission, Oasis Outsourcing, West break; Americold sets changes

By Sara Rosenberg

New York, Nov. 20 – Belk Inc.’s term loan B began trading on Friday, with levels quoted above its original issue discount, and Shoes for Crews, Allison Transmission Inc. and Oasis Outsourcing freed up as well.

In more happenings, West Corp. raised pricing on its term loan B-11 and modified original issue discount talk, and then it too made its way into the secondary market.

Furthermore, Americold Realty Operating Partnership LP widened spread and issue price on its term loan B while also extending the call protection, and Equinix Inc. released price talk on its term loan with launch.

Belk hits secondary

Belk’s $1.5 billion seven-year first-lien covenant-light term loan B (B2/B+) freed up for trading on Friday, with levels quoted at 89½ bid, 90½ offered, according to a trader.

The term loan B is priced at Libor plus 475 basis points with a 1% Libor floor, and it was sold at an original issue discount of 89. The debt has 101 soft call protection for one year.

The company’s $2.4 billion credit facility also includes a $900 million ABL revolver.

During syndication, the term loan was downsized from $1.6 billion as the revolver was upsized from $800 million, pricing on the term loan firmed at the high end of the Libor plus 450 bps to 475 bps talk, and the discount widened from talk of 98 to 98.5.

Belk being acquired

Proceeds from Belk’s credit facility will be used to help fund its buyout by Sycamore Partners for $68.00 per share in cash. The estimated enterprise value of the transaction is about $3 billion.

Morgan Stanley Senior Funding Inc., Bank of America Merrill Lynch, Jefferies Finance LLC, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Nomura Securities International Inc., RBC Capital Markets LLC and MCS Capital Markets are leading the debt.

Closing is expected this quarter, subject to customary conditions, including the receipt of regulatory and stockholder approval.

Belk is a Charlotte, N.C.-based department store company.

Shoes for Crews frees up

Shoes for Crews’ credit facility broke for trading as well, with the $233 million seven-year covenant-light first-lien term loan B (B2) quoted at 99 bid, 99½ offered, according to a trader.

Pricing on the first-lien term loan is Libor plus 500 bps with a 1% Libor floor, and it was sold at an original issue discount of 99, which is all in line with initial talk. The debt has 101 soft call protection for six months.

During syndication, the MFN sunset was removed.

The company’s $358 million credit facility also includes a $25 million six-year revolver (B2) and a $100 million second-lien term loan that was privately placed.

Antares Capital, Golub Capital and Macquarie Capital (USA) Inc. are the joint lead arrangers on the deal that is being used to back the recently completed buyout of the company by CCMP Capital Advisors LLC.

Shoes for Crews is a West Palm Beach, Fla.-based supplier of slip-resistant footwear for the workplace.

Allison starts trading

Allison Transmission’s fungible $189 million add-on senior secured covenant-light term loan B-3 due Aug. 23, 2019 also hit the secondary market, with levels seen at 99 5/8 bid, 100 1/8 offered, a trader said.

Pricing on the add-on loan is Libor plus 250 bps with a 1% Libor floor, and it was sold at an original issue discount of 99.5.

The company had also been seeking an amendment from existing term loan B-3 lenders to eliminate the term B-3 pricing grid step-up to Libor plus 275 bps when total senior secured leverage is above 3.5 times, but that amendment request was recently pulled.

In connection with the amendment withdrawal, the proposed 101 soft call protection for six months was removed from the add-on term loan.

Citigroup Global Markets Inc. is leading the deal that will refinance term loan B-2 debt due 2017.

Allison Transmission, an Indianapolis-based automatic transmission company and supplier of hybrid-propulsion systems, is expected to close on the add-on loan on Nov. 30.

Oasis Outsourcing breaks

Oasis Outsourcing’s fungible $80 million add-on first-lien term loan began trading too, with levels quoted at 99 bid, par offered, a trader remarked.

Pricing on the add-on loan is Libor plus 475 bps with a 1% Libor floor, in line with existing first-lien term loan pricing, and it was sold at an original issue discount of 99.

RBC Capital Markets LLC is leading the deal that will be used to fund two acquisitions in the Professional Employer Organization space.

Oasis is a West Palm Beach, Fla.-based provider of outsourced human resource, employee benefits, payroll and risk management services.

West tweaks deal, trades

West Corp. lifted the spread on its $250 million six-year term loan B-11 (Ba3/BB) to Libor plus 350 bps from talk of Libor plus 300 bps to 325 bps and changed original issue discount talk to 99 to 99.5 from 99.5 before finalizing at 99 in the afternoon, according to a market source.

As before, the term loan has a 0.75% Libor floor.

Also, included in the loan is 101 soft call protection for six months.

With final terms in place, the debt freed to trade in the afternoon and levels were seen at 99¼ bid, 99¾ offered, a trader remarked.

Deutsche Bank Securities Inc. and Wells Fargo Securities LLC are leading the deal that will be used to refinance an existing term loan B-9.

West is an Omaha-based technology-driven communication services provider.

Americold reworked

Americold increased pricing on its $325 million seven-year term loan B (B3/BB) to Libor plus 550 bps from talk of Libor plus 450 bps to 475 bps, moved the original issue discount to 98 from 98.5 and pushed out the 101 soft call protection to one year from six months, a market source remarked.

The term loan still has a 1% Libor floor.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance CMBS debt and mortgages and for general corporate purposes.

Americold is an Atlanta-based provider of temperature-controlled warehousing and logistics to the food industry.

Equinix talk emerges

Equinix launched on Friday its $700 million equivalent seven-year covenant-light term loan B (Ba2/BBB-), and in connection with the event, price talk of Libor plus 325 bps with a 0.75% Libor floor and an original issue discount of 99 to 99.5 was announced, according to a market source.

The loan will include U.S. dollar and sterling tranches.

Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Citigroup Global Markets Inc., RBC Capital Markets and TD Securities (USA) LLC are leading the deal that will be used with $1.1 billion in bonds, the sale of common stock and cash on hand to fund the acquisition of TelecityGroup plc.

Closing is expected early in the first half of 2016.

Equinix is a Redwood City, Calif.-based interconnection and data center company. Telecity is a London-based carrier-neutral data center and colocation center provider.

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