Apple Leisure breaks; Community Health rises; CSP Technologies, VIP Cinema update deals

By Sara Rosenberg

New York, Feb. 21 – Apple Leisure Group’s credit facility made its way into the secondary market on Tuesday, and Community Health Systems Inc.’s term loans traded stronger after the release of fourth quarter results.

Shifting to the primary market, CSP Technologies North America LLC set the spread on its incremental term loan and repricing of its existing term loan at the wide side of guidance, and VIP Cinema lifted pricing on its revolver and first-lien term loan and extended the call protection on the first-lien term debt.

In addition, Avantor Performance Materials, Pike Corp., Tower Automotive Holdings USA LLC and SeaWorld Entertainment Inc. released price talk with launch, and WME IMG LLC launched an add-on loan to lenders.

Also, Helix Generation Funding LLC, CBS Radio, Epic Health Services/PSA Healthcare, Contura Energy Inc., Navico, CPI International Inc. and Atrium Innovations Inc. joined this week’s primary calendar.

Apple Leisure frees up

Apple Leisure’s credit facility broke for trading on Tuesday, with the $600 million seven-year covenant-light first-lien term loan (B2/B) quoted at 98 bid, 98½ offered and the $225 million eight-year covenant-light second-lien term loan (Caa2/CCC+) quoted at 97 bid, 98 offered, according to a market source.

Pricing on the first-lien term loan is Libor plus 475 basis points with a 1% Libor floor, and it was sold at an original issue discount of 97.5. The debt has 101 soft call protection for one year.

The second-lien term loan is priced at Libor plus 900 bps with a 1% Libor floor, and was issued at a discount of 96.5. This tranche has call protection of 103 in year one, 102 in year two and 101 in year three.

On Tuesday, pricing on the first-lien term loan was increased from Libor plus 450 bps, the discount was changed from 99 and the soft call was extended from six months, and pricing on the second-lien term loan was lifted from Libor plus 850 bps, the discount widened from 98 and the call protection was sweetened from 102 in year one and 101 in year two.

Apple Leisure getting revolver

Along with the first-and second-lien term loans, Apple Leisure’s $950 million credit facility includes a $125 million revolver (B2/B).

Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. are leading the deal that will be used to help fund the buyout of the company by KKR and KSL Capital Partners from Bain Capital Private Equity.

Closing is expected this quarter, subject to customary regulatory approvals.

Apple Leisure is a Philadelphia-based hospitality company.

Community Health gains

Also in trading, Community Health Systems, a Franklin, Tenn.-based hospital company, saw its term loans head higher following the announcement of fourth quarter numbers, a trader said.

The term loan A was quoted at 99½ bid, par offered, up from 99 bid, 99½ offered, the term loan F was quoted at 99½ bid, par offered, up from 99 bid, 99½ offered, the term loan G was quoted at 98 bid, 99 offered, up from 95¾ bid, 96½ offered, and the term loan H was quoted at 97½ bid, 98¼ offered, up from 94¾ bid, 95½ offered, the trader continued.

For the quarter, the company reported a net loss of $220 million, or $1.99 per diluted share, compared to a net loss of $83 million, or $0.73 per diluted share in the fourth quarter of 2015.

Net operating revenues for the quarter totaled $4,469,000,000, versus $4,798,000,000 in the prior year, and adjusted EBITDA was $564 million, compared to $527 million in the previous year.

“Moving forward in 2017 and beyond, we are intently focused on efficiency improvements in our operations, strategic initiatives that enhance growth in our markets, and portfolio optimization that reduces our total debt,” added Wayne T. Smith, chairman and chief executive officer, in a news release.

CSP firms spread

Moving to the primary market, CSP Technologies set pricing on its fungible $12 million incremental first-lien term loan due Jan. 29, 2022 and repricing of its $165.9 million first-lien term loan due Jan. 29, 2022 at Libor plus 525 bps, the high end of the Libor plus 500 bps to 525 bps talk, and left the 1% Libor floor, par issue price and 101 soft call protection for six months unchanged, a market source remarked.

Commitments were due at 5 p.m. ET on Tuesday, moved up from 1 p.m. ET on Friday, the source continued.

Barclays is leading the deal.

The incremental loan will be used to term out outstanding revolver borrowings.

All signature pages and comments to the amendment are due at noon ET on Wednesday, the source added.

CSP is an Auburn, Ala.-based manufacturer of polymer containers primarily for the pharmaceutical and consumer industries.

VIP Cinema reworked

VIP Cinema raised pricing on its $20 million five-year revolver (B1/B+) and $165 million six-year first-lien term loan (B1/B+) to Libor plus 600 bps from talk of Libor plus 550 bps to 575 bps, a market source said.

Additionally, the 101 soft call protection on the first-lien term loan was extended to one year from six months, the MFN sunset was eliminated, and the excess cash flow sweep was changed to 100% for years one and two, and 75% beginning in fiscal year 2019 with leverage-based step-downs to 50% and 25%, from a 75% excess cash flow sweep with step-downs, the source continued.

Also, the free and clear was removed from the incremental allowance and the $20 million fixed incremental is subject to a leverage test, and the restricted payments available amount starter basket was eliminated and changes were made to the leverage threshold on the ability to make restricted payments.

As before, the first-lien term loan has a 1% Libor floor and an original issue discount of 99.

Commitments are still due at the close of business on Wednesday.

VIP getting second-lien

Along with the revolver and first-lien term loan, VIP Cinema’s $230 million credit facility includes a $45 million seven-year second-lien term loan (Caa1/CCC+) that has been pre-placed with Oaktree Capital in the Strategic Credit fund at pricing of Libor plus 950 bps with a 1% Libor floor.

BNP Paribas Securities Corp. and Goldman Sachs Bank USA are leading the deal that will be used to help fund the buyout of the company by H.I.G. Capital.

VIP Cinema is a New Albany, Miss.-based cinema seating company.

Avantor discloses guidance

In more primary happenings, Avantor Performance Materials held its bank meeting on Tuesday, and with the event, talk on its $1,425,000,000 seven-year covenant-light first-lien term loan and $380 million eight-year covenant-light second-lien term loan was announced, according to a market source.

The first-lien term loan is talked at Libor plus 425 bps with a 1% Libor floor, an original issue discount of 99.75 on new money, a par issue price on existing and 101 soft call protection for six months, the source said.

Talk on the second-lien term loan is Libor plus 825 bps with a 1% Libor floor, a discount of 98.5 and hard call protection of 102 in year one and 101 in year two.

The company’s $1.88 billion credit facility also includes a $75 million five-year revolver.

Commitments are due by end of day on March 7, the source added.

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

As part of this transaction, existing first-lien term loan lenders are being paid out at a premium of 101.

Avantor is a Center Valley, Pa.-based provider of performance materials and solutions for the life sciences and advanced technology markets.

Pike launches

Pike released price talk on its $720 million senior secured credit facility in connection with its lenders’ presentation in the afternoon, a market source said.

The $100 million five-year revolver (B1/B) is talked at Libor plus 375 bps with no Libor floor, the $490 million seven-year covenant-light first-lien term loan (B1/B) is talked at Libor plus 425 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and the $130 million 7.5-year covenant-light second-lien term loan (Caa1/CCC+) is talked at Libor plus 850 bps with a 1% Libor floor, a discount of 98 and hard call protection of 102 in year one and 101 in year two, the source continued.

Commitments are due on March 2.

Morgan Stanley Senior Funding Inc., KeyBanc Capital Markets Inc. and SunTrust Robinson Humphrey Inc. are leading the debt that will be used by chief executive officer Eric Pike, Global Partnership Investing, ClearSky and NextEra to buy out the current sponsor, Court Square Capital Partners, and to refinance existing bank debt.

Pike is a Mount Airy, N.C.-based specialty construction and engineering firm.

Tower Automotive details

Tower Automotive held its lender call in the afternoon, launching a $361 million seven-year term loan B at talk of Libor plus 275 bps to 300 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, a market source remarked.

Cashless roll commitments are due at 5 p.m. ET on Monday, and new money commitments are due at 5 p.m. ET on Feb. 28, the source added.

Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Wells Fargo Securities LLC, Goldman Sachs Bank USA and Citizens are leading the deal that will be used to refinance existing debt.

Closing is expected on March 6.

Tower Automotive is a Livonia, Mich.-based supplier of automotive metal structural components and assemblies.

SeaWorld holds call

SeaWorld Entertainment held a lender call in the afternoon to launch a $400 million term loan B-4 and a $400 million term loan B-5, a market source said.

The term loan B-4 is talked at Libor plus 275 bps to 300 bps with a 0.75% Libor floor and an original issue discount of 99.75, and the term loan B-5 is talked at Libor plus 300 bps to 325 bps with a 0.75% Libor floor and a discount of 99.5, the source continued. Both loans have 101 soft call protection for six months.

Commitments are due on Feb. 28.

Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Fifth Third, Goldman Sachs Bank USA and KeyBanc Capital Markets are leading the deal (B1/BB-) that will be used to refinance existing debt.

SeaWorld is an Orlando, Fla.-based theme park operator.

WME comes to market

WME IMG launched during the session a fungible $100 million add-on term loan B (B1), according to a market source.

The term loan B is priced at Libor plus 325 bps with a 1% Libor floor.

KKR Capital Markets is leading the deal that will be used for general corporate purposes.

WME IMG is an entertainment, sports and fashion company based in Beverly Hills, Calif.

Helix timing, talk emerge

Helix Generation surfaced with plans to hold a bank meeting at 10 a.m. ET in New York on Wednesday to launch its previously announced $1,715,000,000 credit facility, according to a market source.

The facility consists of a $175 million revolver and a $1.54 billion seven-year first-lien term loan B.

With timing set, talk on the term loan B was disclosed to be Libor plus 425 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, the source said.

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

Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, J.P. Morgan Securities LLC, RBC Capital Markets LLC, Barclays, Macquarie Capital (USA) Inc., BNP Paribas Securities Corp. and ICBC are leading the deal that will be used to help fund the $2.2 billion acquisition by LS Power of about 3,950 MW of generation resources in the Northeastern United States, through its affiliate Helix Generation, from TransCanada Corp.

Closing is expected this quarter, subject to regulatory approvals and third-party consents.

Helix Generation is an operator of power generation facilities.

CBS Radio sets call

CBS Radio released timing on the launch of its previously announced $500 million senior secured term loan B, with the lender call slated to take place at 3:30 p.m. ET on Wednesday, a source remarked.

Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc., Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch, Wells Fargo Securities LLC, J.P. Morgan Securities LLC, Citigroup Global Markets Inc. and Deutsche Bank Securities Inc. are leading the deal.

The loan is being done in connection with the merger of CBS Radio with Entercom, and will be used to refinance Entercom’s $465 million term loan B and to repay $28 million of Entercom’s convertible preferreds.

At close, CBS Radio shareholders will receive about 105 million Entercom shares, or 72% of all outstanding shares of the combined company on a fully diluted basis, while existing Entercom shareholders will own 28% of the combined company on a fully diluted basis.

Closing is expected in the second half of this year, subject to approval by Entercom shareholders, regulatory approvals and other customary conditions.

The combined radio broadcasting company will be known as Entercom and will be based in Philadelphia.

Epic/PSA readies deal

Epic Health/PSA Healthcare scheduled a bank meeting for 9:30 a.m. ET on Wednesday to launch a $900 million senior secured credit facility, a market source said.

The facility consists of a $75 million revolver, a $585 million first-lien term loan and a $240 million second-lien term loan, the source added.

Barclays, RBC Capital Markets LLC, BMO Capital Markets and Goldman Sachs Bank USA are leading the deal, with Barclays left lead on the first-lien debt and RBC left lead on the second-lien debt.

The new credit facility will be used to help fund the merger of Epic Health and PSA. Epic is being bought by Bain Capital Private Equity from Webster Capital, and PSA is being bought by Bain, with current equity holders of PSA, including its senior management team and J.H. Whitney Capital Partners, its current majority owner, agreeing to roll over their current ownership interests into the combined company.

Closing is expected this quarter, subject to certain regulatory approvals and other customary conditions.

Dallas-based Epic and Atlanta-based PSA are providers of pediatric and adult home health care services.

Contura on deck

Contura Energy set a bank meeting in New York for Thursday to launch a $400 million seven-year first-lien term loan, according to a market source.

Jefferies Finance LLC, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and BMO Capital Markets are leading the deal that will be used to refinance predominantly post emergence debt and various other smaller debt facilities.

Contura is a Bristol, Tenn.-based company with mining operations across multiple coal basins in Pennsylvania, Virginia, West Virginia and Wyoming.

Navico coming soon

Navico scheduled a bank meeting for 10 a.m. ET in New York on Thursday to launch a $285 million credit facility, a market source said.

The facility consists of a $25 million revolver and a $260 million senior secured term loan B, the source added.

Goldman Sachs Bank USA is leading the deal that will be used to refinance existing debt and fund cash to the balance sheet.

Navico is a manufacturer of marine electronics.

CPI joins calendar

CPI International will hold bank meeting at 10:30 a.m. ET in New York on Wednesday to launch first-and second-lien credit facilities, a market source remarked.

UBS Investment Bank is leading the deal that will be used to refinance existing debt.

CPI is a Palo Alto, Calif.-based provider of microwave, radio frequency, power and control solutions for critical defense, communications, medical, scientific and other applications.

Atrium plans refinancing

Atrium Innovations is set to hold a lender call at 11 a.m. ET on Thursday to launch a refinancing of certain existing term loan facilities, according to a market source.

RBC Capital Markets, Deutsche Bank Securities Inc., National Bank of Canada and TD Securities are leading the deal.

Permira is the sponsor.

Atrium is a Westmount, Quebec-based developer and manufacturer of nutritional health products.

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