Midcontinent Communications, CHG Healthcare break; Ocwen revises commitment deadline

By Sara Rosenberg

New York, Nov. 29 – Midcontinent Communications’ credit facility hit the secondary market on Tuesday, with the term loan B quoted above its original issue discount, and CHG Healthcare Services Inc.’s add-on first-lien term loan freed up for trading too.

Over in the primary market, Ocwen Financial Corp. accelerated the commitment deadline on its term loan B, and RCN Grande (Radiate Holdco LLC), Zodiac Pool Solutions SAS, AdvancePierre Foods Holdings Inc., Masergy Communications, Vestcom International Inc., ContextMedia and BWAY Holding Co. disclosed price talk with launch.

Also, Wilsonart LLC, Axalta Coating Systems, Aptean Inc., Cinemark USA Inc., Quikrete Co., Eastern Power LLC (TPF II Power LLC), Mister Car Wash, Signode Industrial, Casa Systems and American Airlines Inc. emerged with new deal plans.

Midcontinent frees up

Midcontinent Communications’ credit facility began trading on Tuesday, with the $285 million seven-year term loan B quoted at par bid, 100½ offered on the break and then it moved up to 100¼ bid, 100¾ offered, a market source said.

Pricing on the term loan is Libor plus 250 basis points with no floor, and it was sold at an original issue discount of 99.75. The debt has 101 soft call protection for six months.

During syndication, the spread on the term loan was reduced from Libor plus 275 bps and the 0.75% Libor floor was removed.

The company’s $535 million credit facility (Ba1/BB+) also includes a $250 million five-year revolver priced at Libor plus 225 bps.

SunTrust Robinson Humphrey Inc., Wells Fargo Securities LLC, RBC Capital Markets, TD Securities (USA) LLC and U.S. Bank are leading the deal that will be used to refinance an existing credit facility.

Secured leverage is 1.7 times, and total leverage is 4.8 times.

Midcontinent Communications is a Sioux Falls, S.D.-based provider of cable television, local and long-distance digital telephone service and high-speed internet access.

CHG hits secondary

CHG Healthcare Services’ $140 million add-on first-lien term loan also broke, with levels quoted at 100¼ bid, 100¾ offered, according to a trader.

The add-on loan is priced at Libor plus 375 bps with a 1% Libor floor, and was sold at an original issue discount of 99.75. The debt has 101 soft call protection until June 2017.

During syndication, the discount on the add-on term loan was tightened from revised talk of 99.5 and initial talk in the range of 99 to 99.5.

Jefferies Finance LLC is leading the deal that will be used to fund a dividend.

CHG is a Salt Lake City-based health care staffing firm.

OWIC announced

Also in trading, a $408 million Offers Wanted In Competition surfaced, with offers due at 10 a.m. ET on Wednesday, a trader remarked.

Some of the names in the portfolio are Acosta, Cablevision, Dollar Tree, First Data, Harbor Freight Tools USA Inc., Manitowoc Foodservice Inc., Neiman Marcus Group Ltd. LLC, Press Ganey Holdings Inc. and Rexnord.

There are about 39 issuers in the OWIC, the trader added.

Ocwen moves deadline

Moving to the primary market, Ocwen Financial accelerated the commitment deadline on its $335 million four-year term loan B (B2) to 5 p.m. ET on Wednesday from 5 p.m. ET on Friday, a market source said.

The term loan is talked at Libor plus 575 bps with a 1% Libor floor, an original issue discount of 97 and 101 soft call protection for six months.

Barclays, J.P. Morgan Securities LLC, Nomura and Credit Suisse Securities (USA) LLC are leading the deal that will be used to refinance an existing term loan, pay fees and expenses, and for general corporate purposes.

Ocwen is a West Palm Beach, Fla.-based non-bank mortgage servicer and originator.

RCN Grande launches

RCN Grande hosted its bank meeting on Tuesday, launching its $1.33 billion seven-year covenant-light first-lien term loan with talk of Libor plus 350 bps with a 0.75% Libor floor and an original issue discount of 99.5, according to a market source.

The term loan has 101 soft call protection for six months and a ticking fee of half the spread from days 31 to 90 and the full spread thereafter, the source said.

The company’s $1.48 billion credit facility (B1/B) also includes a $150 million revolver.

Commitments are due at 5 p.m. ET on Dec. 12.

Credit Suisse Securities (USA) LLC, UBS Investment Bank, Morgan Stanley Senior Funding Inc. and Deutsche Bank Securities Inc. are leading the deal that will help fund the acquisitions of RCN Telecom Services LLC for $1.6 billion and Grande Communications Networks LLC for $650 million by TPG Capital, Google Capital and Patriot Media Management from Abry Partners, to form one broadband services provider.

Closing is expected in the first quarter of 2017, subject to regulatory approvals.

Zodiac Pool reveals talk

Zodiac Pool held its bank meeting in the morning, and ahead of the event, price talk on its first- and second-lien term loans was announced, according to a market source.

The $500 million seven-year first-lien term loan (B) is talked at Libor plus 475 bps with a 1% Libor floor and an original issue discount of 99, and the $170 million eight-year second-lien term loan (CCC+) is talked at Libor plus 900 bps with a 1% Libor floor and a discount of 98, the source said.

As previously reported, the first-lien term loan has 101 soft call protection for six months, and the second-lien tem loan has call protection of 102 in year one and 101 in year two.

The company’s $800 million credit facility also includes a $130 million ABL revolver.

Commitments are due on Dec. 12.

Zodiac lead banks

Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch, Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc. and Nomura are leading Zodiac Pool’s credit facility.

Proceeds will be used to help fund the buyout of the company by Rhone from the Carlyle Group.

Closing on the transaction is subject to regulatory approvals.

Zodiac Pool is a Paris-based manufacturer of residential pool equipment and automation solutions.

AdvancePierre guidance

AdvancePierre came out with talk of Libor plus 300 bps to 325 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months on the repricing of its senior secured covenant-light first-lien term loan B (B1/B+) due June 2, 2023 shortly before its afternoon lender call began, a market source said.

The term loan B is currently sized at $1,095,000,000 but is expected to be reduced to $745 million as the company plans on issuing $350 million of senior notes to repay some of the term loan B debt.

Consents/commitments are due at 10 a.m. ET on Friday, the source added.

Morgan Stanley Senior Funding Inc. and Deutsche Bank Securities Inc. are leading the deal that will reprice the term loan B down from Libor plus 350 bps with a 1% Libor floor.

AdvancePierre is a Cincinnati-based producer and distributor of ready-to-eat sandwiches, sandwich components and other entrees and snacks to distribution outlets.

Masergy discloses pricing

Masergy Communications announced price talk on its $332.5 million seven-year covenant-light first-lien term loan (B2/B) and $140 million eight-year covenant-light second-lien term loan (Caa2/CCC+) in connection with its bank meeting on Tuesday, according to a market source.

Talk on the first-lien term loan is Libor plus 450 bps to 475 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and talk on the second-lien loan is Libor plus 850 bps with a 1% Libor floor, a discount of 98.5 and call protection of 102 in year one and 101 in year two, the source said.

The company’s $522.5 million credit facility also includes a $50 million five-year revolver (B2/B).

Commitments are due at 4 p.m. ET on Dec. 12, the source added.

Jefferies Finance LLC and Antares Capital are leading the deal that will help fund the buyout of the company by Berkshire Partners LLC, with Jefferies left on the first-lien and Antares left on the second-lien.

Masergy is a Plano, Texas-based provider of hybrid networking, managed security and cloud communications solutions.

Vestcom terms surface

Vestcom held its bank meeting in the morning, launching its $335 million covenant-light first-lien term loan (B2) at talk of Libor plus 425 bps to 450 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

Commitments are due on Dec. 13, the source said.

The company’s credit facility also includes a $40 million revolver (B2) and a $158 million privately placed second-lien term loan.

Antares Capital, Credit Suisse Securities (USA) LLC, RBC Capital Markets and Barclays are leading the deal that will help fund the buyout of the company by Charlesbank Capital Partners from Court Square Capital Partners.

Closing is targeted for Dec. 19.

Vestcom is a Little Rock, Ark.-based provider of outsourced shelf-edge information and media solutions.

ContextMedia floats talk

ContextMedia launched with a bank meeting its $325 million term loan B at price talk of Libor plus 550 bps to 575 bps with a 1% Libor floor, an original issue discount of 98.5 to 99 and 101 soft call protection for six months, a market source said.

The company’s $375 million credit facility (B2/B) also includes a $50 million revolver.

J.P. Morgan Securities LLC, Goldman Sachs Bank USA and Citizens Bank are leading the deal that will be used to fund the acquisition of AccentHealth LLC from M/C Partners, Ridgemont Equity Partners and senior management.

Closing is expected by year-end, subject to customary conditions.

ContextMedia is a health care decision platform. AccentHealth is a New York and Tampa, Fla.-based provider of best-in-class patient education at the point of care.

BWAY launches

BWAY held a lender call on Tuesday to launch an extension of its term loan B to August 2023 from 2020 and a repricing of the debt that is talked at Libor plus 375 bps to 400 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, according to a market source.

The repricing will take the the term loan B down from Libor plus 450 bps with a 1% Libor floor.

Commitments are due on Monday, the source said.

Bank of America Merrill Lynch is leading the deal.

BWAY is an Atlanta-based supplier of general line rigid containers.

Wilsonart sets meeting

Also in the primary market, Wilsonart scheduled a bank meeting for 10 a.m. ET in New York on Thursday to launch a $1.2 billion seven-year covenant-light term loan that includes 101 soft call protection for six months, a market source remarked.

Deutsche Bank Securities Inc., Barclays, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc. and UBS Investment Bank are leading the deal.

Proceeds will be used to refinance existing term loans and fund a distribution to shareholders.

Wilsonart is a Temple, Texas-based engineered surfaces company.

Axalta plans loans

Axalta Coating Systems will hold a lender call at 10 a.m. ET on Wednesday to launch a $1,775,000,000 term loan B due February 2023 and a €187 million term loan B due February 2023, according to a market source.

Barclays is leading the deal (Ba1/BBB-) that will be used to refinance $1,775,000,000 of term loans due 2020 and €187 million of term loans due 2020.

Axalta is a Philadelphia-based manufacturer, marketer and distributor of coatings systems.

Aptean recapitalizing

Aptean scheduled a lenders’ presentation for 11 a.m. ET on Wednesday to launch a $730 million senior secured credit facility that will be used to refinance existing credit facilities, distribute a dividend to the equity holders, and pay related fees and expenses, a market source said.

The facility consists of a $70 million revolver, a $470 million first-lien term loan and a $190 million second-lien term loan, the source added.

Morgan Stanley Senior Funding Inc., Macquarie Capital (USA) Inc. and SunTrust Robinson Humphrey Inc. are leading the deal.

Aptean is an Alpharetta, Ga.-based provider of enterprise application software.

Cinemark repricing

Cinemark emerged with plans to hold a lender call at 11 a.m. ET on Wednesday to launch a repricing of its $664 million term loan B due May 8, 2022, according to a market source.

Barclays is leading the deal.

The term loan B will be repriced from Libor plus 275 bps with no Libor floor.

Cinemark is a Plano, Texas-based motion picture exhibitor.

Quikrete joins calendar

Quikrete set a lender call for 11 a.m. ET on Wednesday to launch $300 million of term loans, split between a fungible $100 million covenant-light add-on first-lien term loan (B+) and a $200 million 7.5-year covenant-light second-lien term loan (B-), a source remarked.

The add-on first-lien term loan is priced at Libor plus 325 bps with a 0.75% Libor floor, and has 101 soft call protection for six months, and the second-lien term loan has call protection of 102 in year one and 101 in year two, the source continued.

Original issue discount on the add-on first-lien term loan and price talk on the second-lien term loan are not yet available.

Commitments are due on Dec. 9, the source added.

Quikrete funding acquisition

Proceeds from Quikrete’s term loans will be used to help fund the purchase of Rinker Materials’ concrete pipe manufacturing business for about $500 million plus an additional $40 million purchase price contingent on future performance.

Wells Fargo Securities LLC is leading the debt financing.

Closing on the acquisition is expected in the first quarter of 2017, subject to certain conditions, including approval from regulators.

Quikrete is an Atlanta-based manufacturer of packaged concrete and related products.

Eastern Power incremental

Eastern Power will hold a lender call at 11 a.m. ET on Wednesday to launch a $200 million incremental senior secured term loan B and the company will also be seeking an amendment to its existing $1,446,912,314 term loan B, according to a market source.

Morgan Stanley Senior Funding Inc. and Credit Suisse Securities (USA) LLC are leading the deal.

Proceeds from the incremental debt will be used to fund a one-time dividend, the source said.

Eastern Power is an owner of gas-fired electric generating stations.

Mister Car Wash on deck

Mister Car Wash scheduled a lender call for Friday morning to launch a $180 million add-on term loan, according to a market source.

Jefferies Finance LLC, BMO Capital Markets Corp., UBS Investment Bank and Nomura are leading the deal that will be used to repay revolver borrowings and fund a distribution to sponsor Leonard Green.

There is currently $196 million outstanding under the company’s term loan, the source said.

Mister Car Wash is a Tucson, Ariz.-based car wash company.

Signode readies deal

Signode Industrial set a lender call for Wednesday to launch a fungible $450 million add-on term loan due 2021 talked at Libor plus 300 bps with a 1% Libor floor, an original issue discount of 99.01 to 99.5 and 101 soft call protection for six months, a source remarked.

J.P. Morgan Securities LLC is leading the deal that will be used to fund a dividend and refinance existing debt.

In addition, the company is seeking a repricing of its euro term loan at talk of Euribor plus 300 bps with a 1% Euribor floor, versus current pricing of Euribor plus 325 bps with a 1% floor, the source continued.

Signode is a Glenview, Ill.-based manufacturer of strap, stretch and protective packaging for consumables, tools and equipment.

Casa Systems coming soon

Casa Systems plans to hold a meeting on Wednesday to launch a $300 million seven-year term loan B, according to a market source.

J.P. Morgan Securities LLC is leading the deal that will be used to fund a dividend.

Casa Systems is an Andover, Mass.-based provider of fixed, mobile, optical and Wi-Fi network solutions for ultra-broadband services.

American Airlines sets call

American Airlines will hold a lender call at 3:30 p.m. ET on Wednesday to launch a new loan, a market source remarked.

Citigroup Global Markets Inc. is the left lead bank on the deal.

American Airlines is a Fort Worth, Texas-based airline company.

TricorBraun allocates

In other news, TricorBraun allocated its $735 million credit facility (B2/B) that includes a $75 million revolver, a $600 million covenant-light term loan and a $60 million delayed-draw term loan, a market source said.

Pricing on the term loans is Libor plus 375 bps with a 1% Libor floor, and the debt was sold at an original issue discount of 99. There is 101 soft call protection for one year.

During syndication, pricing on the term loans firmed at the high end of the Libor plus 350 bps to 375 bps talk, the discount was set at the wide end of the 99 to 99.5 talk, the call protection was extended from six months, the delayed-draw availability period was reduced to one year from two years, the ticking fee was modified to half the spread for the first 90 days and the full spread (no Libor floor) thereafter, from half the spread for the first year and the full spread thereafter, the MFN sunset was removed, the $50 million MFN carve-out was eliminated, and certain EBITDA addbacks were capped at 25% of EBITDA.

Antares Capital, Nomura and Guggenheim Securities are leading the deal that is expected to close on Wednesday and will be used to help fund the buyout of the company by AEA Investors LP from CHS Capital.

TricorBraun is a St. Louis-based specialty distributor of plastic and glass packing products.

Cvent closes

The buyout of Cvent Inc. by Vista Equity Partners for $36 in cash per share, or about $1.65 billion has been completed, according to a news release.

To help fund the transaction, Cvent got a new $645 million credit facility that provides for a $40 million revolver (B1/B), a $375 million seven-year senior secured first-lien term loan B (B1/B) and a privately placed $230 million second-lien term loan.

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

During syndication, pricing on the first-lien term loan firmed at the tight end of the Libor plus 500 bps to 525 bps talk, and the second-lien term loan was upsized from $225 million.

Goldman Sachs & Co., Antares Capital, Jefferies Finance LLC and RBC Capital Markets LLC led the deal.

Cvent is a Tysons Corner, Va., cloud-based enterprise event management company.

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