On Semiconductor, Visteon, Avast, Big Jack’s free up; Greektown Holdings outlines changes

By Sara Rosenberg

New York, March 20 – ON Semiconductor Corp.’s term loan B emerged in the secondary market on Monday above its issue price, and deals from Visteon Corp., Avast Software and Big Jack’s Holdings LP (Jack’s Family Restaurant) began trading as well.

Moving to the primary market, Greektown Holdings LLC increased the size of its term loan B, reduced pricing, added a step-down and tightened the original issue discount.

Also, Chemours Co., NPC International Inc., Lantheus Medical Imaging Inc. and B&G Foods Inc. released price talk with launch.

In addition, Caesars Entertainment Operating Co. LLC, Eastern Power LLC, Floor & Décor Outlets of America Inc. and Crestwood Holdings LLC joined this week’s primary calendar.

ON Semiconductor breaks

ON Semiconductor’s $2.38 billion covenant-light term loan B due March 2023 freed up for trading on Monday, with levels quoted at par 3/8 bid, par 5/8 offered, according to a market source.

Pricing on the loan is Libor plus 225 basis points with a 0% Libor floor, and it was issued at par. The debt has 101 soft call protection for six months.

Last week, pricing on the term loan firmed at the low end of the Libor plus 225 bps to 250 bps talk.

Deutsche Bank Securities Inc., Bank of America Merrill Lynch, HSBC, SMBC and BMO Capital Markets are leading the deal that will be used to reprice an existing term loan B from Libor plus 325 bps with a 0% Libor floor.

Closing is expected on March 31.

ON Semiconductor is a Phoenix-based semiconductor company.

Visteon starts trading

Visteon’s $350 million seven-year senior secured covenant-light term loan B (BB+) also hit the secondary market, with levels seen at par ¼ bid, par ¾ offered, a market source remarked.

Pricing on the term loan is Libor plus 225 bps with a 0% Libor floor, and it was issued at par. The loan includes 101 soft call protection for six months.

On Friday, the issue price on the term loan was tightened from talk in the range of 99.5 to 99.75.

Citigroup Global Markets Inc., Bank of America Merrill Lynch, Barclays, UBS Investment Bank, SMBC and US Bank are leading the deal that will be used to amend and extend an existing term loan B due 2021.

The company is also looking to extend its revolving credit facility’s maturity to 2022 from 2019 and increase its size to $300 million from $200 million.

Closing is expected on Friday.

Visteon is a Van Buren Township, Mich.-based designer and manufacturer of cockpit electronics products and connected car solutions for vehicle manufacturers.

Avast tops issue price

Avast Software’s bank debt started trading as well, with the $1.21 billion term loan B due September 2023 quoted at par ½ bid, 101 offered, according to a market source.

The loan is priced at Libor plus 325 bps with a 1% Libor floor and was issued at par. The debt has 101 soft call protection for six months.

The company is also getting a €445 million term loan B due September 2023 priced at Euribor plus 350 bps with a 0% floor issued at par. This tranche has 101 soft call protection for six months too.

On Thursday, the U.S. term loan was upsized from $1,185,000,000, the euro term loan was upsized from €395 million, pricing on the euro loan firmed at the low end of the Euribor plus 350 bps to 375 bps talk, and the issue price on both tranches finalized at the tight end of the 99.875 to par talk.

Credit Suisse Securities (USA) LLC, Jefferies Finance LLC and Bank of America Merrill Lynch are leading the deal that will be used to reprice and extend an existing U.S. term loan due September 2022 priced at Libor plus 400 bps with a 1% Libor floor and an existing euro term loan due September 2022 priced at Euribor plus 375 bps with a 1% floor, and, due to the upsizings, for general corporate purposes.

Avast is a Prague-based maker of security software.

Big Jack’s frees up

Big Jack’s $275 million seven-year term loan B broke for trading too, with levels quoted at par bid, par ¾ offered, a trader said.

Pricing on the term loan B is Libor plus 425 bps with a step-down to Libor plus 400 bps at 3.75 times net first-lien leverage and a 1% Libor floor. The debt was sold at an original issue discount of 99.5 and includes 101 soft call protection for six months.

During syndication, the MFN was set for life instead of for six months, the EBITDA grower was removed and the incremental was reduced to 4.6 times from 4.75 times, a market source added.

The company’s $305 million senior secured deal (B3/B) also includes a $30 million five-year revolver.

RBC Capital Markets LLC and Bank of America Merrill Lynch are leading the deal that will be used to refinance existing debt and fund a dividend.

Onex Partners Manager LP is the sponsor.

Closing is expected on April 4.

Big Jack’s is an Alabama-based operator of premium quick-service restaurants.

Greektown revises loan

Switching to the primary market, Greektown Holdings raised its seven-year covenant-light first-lien term loan B to $400 million from $375 million, trimmed pricing to Libor plus 300 bps from Libor plus 325 bps, added a 25 bps pricing step-down at 0.5 times deleveraging and moved the original issue discount to 99.75 from 99.5, according to a market source.

The term loan still has a 0.75% Libor floor and 101 soft call protection for six months.

Recommitments were due at 5 p.m. ET on Monday, the source said.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs Bank USA, Jefferies Finance LLC and Wells Fargo Securities LLC are leading the deal that will be used to refinance existing debt.

Greektown is a gaming, hotel, dining and entertainment facility in Detroit.

Chemours sets guidance

Chemours held its lender call on Monday, launching its $1,022,000,000 term loan B due May 12, 2022 at talk of Libor plus 250 bps with a 0% Libor floor and an original issue discount of 99.75 to par, according to a market source.

In addition, the company launched its new $350 million-equivalent euro term loan B due May 12, 2022 at talk of Euribor plus 225 bps with a 0.75% floor and a discount of 99.75 to par, the source said.

Commitments are due at noon ET on March 28.

Barclays and J.P. Morgan Securities LLC are leading the deal that will be used to reprice/refinance an existing term loan B due 2022 and to pay related fees and expenses.

Chemours is a Wilmington, Del.-based provider of performance chemicals.

NPC launches

NPC International had its bank meeting and released price talk on its $740 million of new term loans, a market source remarked.

The $580 million first-lien term loan B (B1) is talked at Libor plus 350 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, and the $160 million second-lien term loan (Caa1) is talked at Libor plus 750 bps with a 1% Libor floor, a discount of 99 and hard call protection of 102 in year one and 101 in year two, the source continued.

Commitments are due on April 3.

KKR Capital Markets and Antares Capital are leading the deal that will be used to refinance existing bank debt and 10.5% senior notes due 2020 and to fund acquisitions.

NPC is an Overland Park, Kan.-based consolidator and developer of restaurant brands.

Lantheus reveals talk

Lantheus Medical Imaging came out with talk of Libor plus 450 bps with a 1% Libor floor, an original issue discount of 99.5 to 99.75 and 101 soft call protection for six months on its $275 million term loan (B2) that launched with a call during the session, according to a market source.

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

The new term loans will be used to refinance existing debt.

Lantheus Medical is a North Billerica, Mass.-based developer, manufacturer, seller and distributor of diagnostic imaging agents.

B&G holds call

B&G Foods surfaced in the morning with plans to hold a lender call at 2 p.m. ET to launch a $640 million term loan B due Nov. 2, 2022, a market source said.

Talk on the term loan B is Libor plus 225 bps with a 0% Libor floor, a par issue price and 101 soft call protection for six months, the source continued.

Commitments are due at noon ET on Friday.

Barclays is leading the deal that will be used to reprice an existing term loan B due 2022 from Libor plus 300 bps with a 0.75% Libor floor.

B&G Foods is a Parsippany, N.J.-based manufacturer, seller and distributor of shelf-stable and frozen foods.

Caesars timing emerges

Also on the new deal front, Caesars set a bank meeting for 10 a.m. ET in New York on Tuesday to launch its previously announced $1,435,000,000 senior secured credit facility (BB), according to a market source.

The facility consists of a $200 million five-year revolver and a $1,235,000,000 seven-year covenant-light term loan B.

Included in the term loan B is 101 soft call protection for six months, the source said.

Commitments are due at 5 p.m. ET on April 4.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Barclays, Citigroup Global Markets Inc., Goldman Sachs Bank USA, J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc. and UBS Investment Bank are leading the deal that will be used for exit financing, including to repay existing debt and to pay related fees and expenses.

Caesars is a Las Vegas-based casino-entertainment company.

Eastern Power readies loan

Eastern Power will hold a lender call at 2 p.m. ET on Tuesday to launch a $1,646,912,313 senior secured term loan B, a market source remarked.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to amend and extend the company’s existing term loan B by two years.

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

Floor & Décor on deck

Floor & Décor scheduled a lender call for 11 a.m. ET on Tuesday to launch a repricing of its first-lien term loan from Libor plus 425 bps with a 1% Libor floor, a market source said.

UBS Investment Bank is leading the deal.

At closing last year, the term loan was sized at $350 million.

Floor & Décor is an Atlanta-based specialty retailer in the hard surface flooring market.

Crestwood joins calendar

Crestwood Holdings will hold a lender call at 2 p.m. ET on Tuesday to launch a new loan transaction to existing and prospective lenders, according to a market source.

Citigroup Global Markets Inc. is leading the deal.

Crestwood is a Houston-based company focused on natural gas storage.

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