Ascena dips with sales results; Valeant up on asset sale plans; Synchronoss revises deadline

By Sara Rosenberg

New York, Jan. 10 – Ascena Retail Group Inc.’s term loan softened in the secondary market on Tuesday with disappointing sales news, and Valeant Pharmaceuticals International Inc.’s term loans inched their way higher after the company announced two asset sale agreements that will result in the repayment of some existing term loan borrowings.

Switching to the primary market, Synchronoss Technologies Inc. accelerated the commitment deadline on its first-lien term loan B, and AmWINS Group LLC, Leidos Innovations Corp., Gemini HDPE LLC, PolyOne Corp., Presidio Inc., CityCenter Holdings LLC and Tribune Media Co. disclosed price talk with launch.

Furthermore, US LBM Holdings LLC released original issue discount guidance on its incremental first-lien term loan, and Blue Nile Inc., Brown Jordan International Inc., Prestige Brands Inc., TransUnion LLC, KIK Custom Products Inc., TransDigm Group Inc. and Americold Realty Operating Partnership LP joined this week’s primary calendar.

Ascena slides

Ascena Retail Group’s term loan weakened in trading on Tuesday as the company released holiday sales results and lowered its earnings per diluted share guidance for the 52-week period ending July 29, 2017, according to a market source.

The term loan was quoted at 94½ bid, 95½ offered, down from 96½ bid, 97¼ offered on Monday, the source said.

In a news release, the company said that its consolidated comparable sales over the Holiday period decreased 3.1% from the prior year and that for the combined November/December fiscal periods, consolidated comparable sales were down 4.4%.

Also, excluding restructuring, acquisition and integration related expenses and non-cash ANN purchase accounting adjustments, the company now expects a non-GAAP EPS loss of $0.11 to $0.08 for the fiscal second quarter, ending Jan. 28, 2017, versus prior guidance of a loss of $0.05 to $0.00 for the quarter. And, full year fiscal 2017 non-GAAP EPS is now expected at $0.37 to $0.42, compared to previous guidance of $0.60 to $0.65.

Ascena is a Mahwah, N.J.-based specialty retailer of clothing, shoes and accessories.

Valeant rises

Valeant’s term loans were stronger after the company said it would permanently repay term loan debt under its senior credit facility with proceeds from the sale of assets, traders remarked.

One trader had the term loan C and term loan D quoted at 100 1/8 bid, 100½ offered, up from par bid, 100 3/8 offered; the term loan E quoted at 100¼ bid, 100 5/8 offered, up from 100 1/8 bid, 100 3/8 offered; and the term loan F quoted at 100 3/8 bid, 100¾ offered, up on the offer side from 100 3/8 bid, 100 5/8 offered previously.

A second trader on Tuesday had the C loan at 100½ bid, 100¾ offered; the D loan at 100¼ bid, 100½ offered; the E loan at 100¼ bid, 100½ offered; and the F loan at 100 5/8 bid, 100 7/8 offered.

In one agreement, Valeant agreed to sell its CeraVe, AcneFree and AMBI skincare brands to L’Oreal for $1.3 billion in cash, and in another agreement, it will sell its outstanding equity interests in Dendreon Pharmaceuticals Inc. to the Sanpower Group Co. Ltd. for cash consideration of $819.9 million at completion.

The sale to L’Oreal is expected to close this quarter and the sale to Sanpower is expected to close in the first half of this year, both subject to regulatory approvals and customary conditions.

Valeant is a Laval, Quebec-based specialty pharmaceutical company.

Synchronoss moves deadlines

Over in the primary market, Synchronoss Technologies accelerated the commitment deadline on its $900 million seven-year first-lien term loan B to close of business on Thursday from Jan. 18, a market source said.

Talk on the term loan B is Libor plus 300 basis points to 325 bps with no floor, an original issue discount of 99.5 and 101 soft call protection for six months.

In addition, the term loan B has a ticking fee of half the spread from days 31 to 60 and the full spread thereafter.

The company’s $1.15 billion senior secured credit facility (Ba3/BB-) also includes a $250 million five-year revolver.

Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC and KeyBanc Capital Markets Inc. are leading the deal.

Synchronoss buying Intralinks

Proceeds from Synchronoss Technologies’ credit facility will be used to help fund the acquisition of Intralinks Holdings Inc. for $13.00 per share or $821 million in equity value.

Other funds for the transaction are expected to come from cash on hand and from proceeds from the sale of a portion of Synchronoss’ activation business to Sequential Technology International LLC for $146 million.

Closing is anticipated this quarter, subject to customary conditions, including regulatory approval.

Synchronoss Technologies is a Bridgewater, N.J.-based provider of managed mobility solutions for Service Providers and Enterprise. Intralinks is a New York-based content collaboration company that provides cloud-based solutions to control the sharing, distribution and management of high value content.

AmWINS reveals talk

Also in the primary market, AmWINS held its lender call in the morning, and with the event, price talk surfaced on its $1.05 billion seven-year first-lien term loan (B1/B+) and $200 million eight-year second-lien term loan (Caa1/B-), according to a market source.

Talk on the first-lien term loan is Libor plus 300 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, and talk on the second-lien term loan is Libor plus 750 bps with a 1% Libor floor, a discount of 99 and call protection of 102 in year one and 101 in year two, the source said.

The company’s $1,375,000,000 credit facility also includes a $125 million revolver (B1/B+).

Commitments are due at noon ET on Jan. 19, the source added.

Goldman Sachs Bank USA, Barclays, J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc. and Wells Fargo Securities LLC are leading the deal that will be used to refinance existing debt and for general corporate purposes.

AmWINS is a Charlotte, N.C.-based specialty insurance broker.

Leidos releases guidance

Leidos Innovations came out with talk of Libor plus 225 bps with no Libor floor, a par issue price and 101 soft call protection for six months on its $1,131,000,000 senior secured covenant-light term loan B (Ba1/BBB-) due Aug. 16, 2023 that launched with a morning lender call, according to a market source.

Citigroup Global Markets Inc., MUFG, Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Goldman Sachs Bank USA, Scotiabank, Wells Fargo Securities LLC, PNC Capital Markets, SunTrust Robinson Humphrey Inc. and US Bank are leading the deal.

Proceeds will be used to reprice an existing term loan from Libor plus 275 bps with no Libor floor.

Cashless roll commitments are due at 5 p.m. ET on Jan. 17, new money commitments are due at 5 p.m. ET on Jan. 18, allocations are targeted for Jan. 19, and closing is expected on Feb. 16, the source added.

Leidos is a Reston, Va.-based provider of technology and sector expertise to customers in national security, health and engineering.

Gemini details proposal

Gemini HDPE launched on morning call the repricing of its $411 million term loan B due Aug. 7, 2021 with talk of Libor plus 325 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Commitments/consents are due at 5 p.m. ET on Jan. 17, the source said.

Barclays is leading the deal that will reprice the existing term loan from Libor plus 375 bps with a 1% Libor floor.

Gemini HDPE is a bimodal, high-density polyethylene plant in Texas.

PolyOne holds call

PolyOne had its lender call in the afternoon, launching the repricing of its $644 million covenant-light senior secured term loan B due Nov. 12, 2022 at talk of Libor plus 225 bps to 250 bps with a 0.75% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Cashless roll commitments are due at 5 p.m. ET on Jan. 18, new money commitments are due at 5 p.m. ET on Jan. 19, and closing is expected during the week of Jan. 23, the source said.

Citigroup Global Markets Inc. is leading the deal that will reprice the existing term loan B from Libor plus 275 bps with a 0.75% Libor floor.

PolyOne is an Avon Lake, Ohio-based provider of specialized polymer materials, services and solutions.

Presidio launches

Presidio emerged in the morning with plans to hold a lender call at 11 a.m. ET on Tuesday to launch a repricing of its $704 million first-lien term loan (B1/B) due February 2022 that is talked at Libor plus 350 bps to 375 bps with a 25-bps step-down subject to a qualified initial public offering and total net leverage less than 4 times, a 1% Libor floor, a par issue price and 101 soft call protection for six months, a source said.

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

Credit Suisse Securities (USA) LLC is the left lead bank on the deal, which will reprice the existing term loan down from Libor plus 425 bps with a 1% Libor floor.

Presidio is a New York-based IT infrastructure solutions provider.

CityCenter repricing

CityCenter hosted its lender call, launching a repricing of its $1,242,000,000 covenant-light term loan B that is talked at Libor plus 275 bps with a 0.75% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Commitments are due at 10 a.m. ET on Friday, the source said.

Bank of America Merrill Lynch is the left lead on the deal that will reprice the existing term loan B down from Libor plus 325 bps with a 1% Libor floor.

CityCenter is the owner and operator of a mixed-use development located on the Las Vegas Strip.

Tribune price talk

Tribune Media revealed talk of Libor plus 300 bps with a 0.75% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months on its $1,749,000,000 seven-year term loan B (BB+) that launched with a call during the session, a source said.

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

Proceeds will be used to extend some of the company’s existing $2,349,000,000 term loan B due in 2020 that is priced at Libor plus 300 bps with a 0.75% Libor floor.

The company also plans to extend its $300 million revolving credit facility and may increase the size of the revolver.

Tribune Media is a Chicago-based owner of television and digital properties.

US LBM OID emerges

US LBM hosted its lender call at 11 a.m. ET, and shortly before the call kicked off, original issue discount talk on its fungible $80 million incremental first-lien term loan (B3/B+) due Aug. 20, 2022 was announced at 98.75, a market source remarked.

As previously reported, pricing on the incremental term loan is Libor plus 525 bps with a 1% Libor floor, in line with existing term loan pricing, and the debt has 101 soft call protection for six months.

Commitments are due on Jan. 18.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to fund the acquisition of Ridout Lumber Co., a Searcy, Ark.-based lumber company chain.

US LBM is a Green Bay, Wis.-based owner of building material distribution businesses.

Blue Nile on deck

In more new deal happenings, Blue Nile set a bank meeting for 10 a.m. ET in New York on Thursday to launch a $230 million credit facility, according to a market source.

The facility consists of a $50 million ABL revolver and a $180 million first-lien term loan, the source said.

By comparison, in the commitment letter, the term loan size was outlined as $175 million.

Goldman Sachs Bank USA is leading the deal that will be used with equity to fund the buyout of the company by an investor group comprised of funds managed by Bain Capital Private Equity and Bow Street LLC for $40.75 in cash per share. The transaction is valued at about $500 million.

The extra funds from the larger term loan will provide the company with incremental liquidity/cash to the balance sheet, the source added.

Closing is expected this quarter, subject to stockholder and regulatory approvals, and other customary conditions. There are no financing conditions associated with the buyout.

Blue Nile is a Seattle-based online jeweler.

Brown Jordan sets launch

Brown Jordan surfaced with plans to hold a bank meeting at 10 a.m. ET in New York on Thursday to launch the credit facility that will help fund its buyout by Littlejohn & Co. LLC, a market source said.

Also, it was disclosed that the facility is sized at $195 million, split between a $35 million ABL revolver and a $160 million first-lien term loan, the source continued.

Goldman Sachs and Societe Generale are leading the deal.

Closing on the buyout is expected late this month.

Brown Jordan is a St. Augustine, Fla.-based manufacturer of indoor and outdoor furniture.

Prestige coming soon

Prestige Brands set a lender call for 10 a.m. ET on Thursday to launch a $740 million seven-year term loan B-4, according to a market source.

Barclays, Citigroup Global Markets Inc., Morgan Stanley Senior Funding Inc., RBC Capital Markets and Deutsche Bank Securities Inc. are leading the deal that will be used to help fund the $825 million acquisition of C.B. Fleet Co. Inc.

Prestige Brands is a Tarrytown, N.Y.-based marketer and distributor of over-the-counter and household cleaning products. C.B. Fleet is a manufacturer, marketer and distributor of feminine care and other over-the-counter healthcare products.

TransUnion readies loan

TransUnion scheduled a lender call for 10:30 a.m. ET on Wednesday to launch a $1.9 billion covenant-light term loan B-2 (B1/BB-) due April 2023 talked at Libor plus 250 bps with a 0.75% Libor floor, an original issue discount of 99.875 to par and 101 soft call protection for six months, according to a market source.

Commitments are due at noon ET on Jan. 19, the source said.

Deutsche Bank Securities Inc. is leading the deal that will be used to reprice an existing term loan B-2 from Libor plus 275 bps with a 0.75% Libor floor, remove the existing pricing grid, and extend the maturity from April 2021.

TransUnion is a Chicago-based provider of information management and risk management services.

KIK joins calendar

KIK Custom Products will hold a lender call at 3 p.m. ET on Wednesday to launch a repricing of its $840 million term loan B due Aug. 26, 2022 from Libor plus 500 bps with a 1% Libor floor, a market source remarked.

Barclays is leading the deal.

KIK is an Ontario-based developer and marketer of pool and spa treatment products and a manufacturer of consumer, institutional and industrial products.

TransDigm refinancing

TransDigm is scheduled to make a presentation to lenders on Wednesday about a refinancing of a portion of its senior secured term loans that is expected to modestly reduce interest expense and extend maturities, according to a news release.

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

TransDigm is a Cleveland-based designer, producer and supplier of highly engineered aircraft components for use on commercial and military aircraft.

Americold repricing

Americold set a lender call for Wednesday to launch a repricing of its $704.8 million term loan due December 2022 that is talked at Libor plus 375 bps to 400 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, a source remarked.

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

The repricing will take the term loan down from Libor plus 475 bps with a 1% Libor floor.

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

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