Hertz, Walter Energy, Calpine, JohnsonDiversey, CB Richard, Hyland, General Chemical break

By Sara Rosenberg

New York, March 4 - Hertz Corp. upsized its term loan B to counteract an earlier downsizing of its synthetic letter-of-credit facility and then proceeded to free the deal up for trading, with the term loan quoted above its original issue discount price.

Also making its way into the secondary market on Friday was Walter Energy Inc.'s multi-billion credit facility, as well as Calpine Corp., JohnsonDiversey Inc., CB Richard Ellis Group Inc., Hyland Software and General Chemical Performance Products LLC (GenTek Inc.).

Over in the primary market, MetroPCS Wireless Inc., ConvaTec Healthcare and Telx Group Inc. released price talk on their term loans as the deals were presented to lenders during the session.

Also, Huntington Ingalls Industries Inc. reduced the size of its bank deal, Great Point Power LLC firmed pricing on its loan at the high end of talk, MedAssets Inc., Toys 'R' Us Inc. and Sidera Networks Inc. surfaced with repricing/refinancing plans, and Reynolds and Reynolds Co. set timing for its B loan.

Hertz upsizes

Hertz increased its seven-year covenant-light term loan B (Ba1/BB) to $1.4 billion from $1.35 billion in response to a reduction of its seven-year synthetic letter-of-credit facility (Ba1/BB) to $200 million from $250 million that took place this past Tuesday, according to a market source.

Pricing on the term loan and the synthetic letter-of-credit facility is Libor plus 275 basis points with a 1% Libor floor. The term loan B was sold at an original issue discount of 99½ and the synthetic letter-of-credit facility was sold at 971/2. There is 101 soft call protection for one year.

At the time of the synthetic letter-of-credit facility downsizing, the original issue discount price on the tranche widened from 991/2. Also, the spread on the synthetic letter-of-credit facility and the term loan has been lowered from Libor plus 300 bps and the Libor floor had been tightened from 1.25%.

Hertz frees up

Following the final tweak to Hertz's credit facility size, allocations were given out and the debt started trading, with the term loan quoted by one trader at 99 7/8 bid, par 1/8 offered on the open and then he saw it move up to par 1/8 bid, par 3/8 offered and the synthetic letter-of-credit facility quoted at 97¾ bid.

A second trader, meanwhile, was also quoting the term loan at par 1/8 bid, par 3/8 offered, but he saw the synthetic letter-of-credit facility bid at 98.

The company's $3.4 billion senior secured deal also includes a $1.8 billion ABL revolving credit facility.

Deutsche Bank, Wells Fargo, Barclays, Bank of America Merrill Lynch, Citigroup, Credit Agricole and J.P. Morgan are the bookrunners the credit facility that will be used to refinance existing debt.

Hertz is a Park Ridge, N.J.-based auto and equipment rental company.

Walter Energy rises

Walter Energy was another company to see its credit facility hit the secondary market, and its $1.4 billion seven-year term loan B headed up to 101 1/8 bid, 101 3/8 offered after breaking in the par ¾ bid, 101¼ offered context, according to a trader.

Pricing on the term loan B is Libor plus 300 bps with a step-down to Libor plus 275 bps based on leverage and a 1% Libor floor. The tranche was sold at par and includes 101 soft call protection for one year.

During syndication, the term loan B was downsized from $1.75 billion, pricing firmed at the tight end of the initial Libor plus 300 bps to 325 bps talk, the step-down and the call protection were added, and the original issue discount of 99½ was removed.

Walter getting pro rata

Walter Energy's $2.725 billion senior secured credit facility (B1/BB-) also includes a $950 million five-year term loan A, which was upsized from $600 million when the B loan was downsized, and a $375 million five-year revolver.

Pricing on the revolver and term loan A is Libor plus 300 bps with no Libor floor. The revolver has a 50 bps unused fee. The term loan A was sold at par.

Morgan Stanley, Credit Agricole and the Bank of Nova Scotia are the lead arrangers on the deal that will be used to help fund the acquisition of Western Coal Corp. for C$11.50 per share, to refinance existing debt and to contribute to working capital.

Walter Energy is a Tampa, Fla.-based producer and exporter of metallurgical coal for the steel industry. Western Coal is a Vancouver, B.C.-based producer of metallurgical coal.

Calpine hits late day

Calpine's $1.3 billion seven-year senior secured covenant-light term loan B broke late in the day Friday, with one trader quoting it par ½ bid, 101 offered and a second quoting it at par 7/8 bid, 101 1/8 offered.

Pricing on the Houston-based power company's loan is Libor plus 325 bps with a 1.25% Libor floor, and it was sold at par. There is 101 soft call protection for one year.

Morgan Stanley, Goldman Sachs, Citigroup, Credit Suisse and Deutsche Bank are the bookrunners on the deal that is being used to refinance a $1.3 billion term loan that was obtained by the company's subsidiary New Development Holdings LLC in June 2010 to fund the purchase of power generation assets from Pepco Holdings Inc.

Pricing on the existing term loan, which is not covenant-light, is Libor plus 550 bps with a 1.5% Libor floor, and it was sold at an original issue discount of 98. The tranche includes 101 soft call protection for one year, so lenders are getting repaid at 101.

JohnsonDiversey tops par

JohnsonDiversey's $386 million term loan B began trading as well, with levels quoted at par 1/8 bid, par 5/8 offered on the open and then it moved up to par ¼ bid, par ¾ offered, according to a trader.

Pricing on the term loan B is Libor plus 300 bps with a step-down to Libor plus 275 bps at less than or equal to 2.25 times total leverage and a 1% Libor floor. The loan was sold at par and includes 101 soft call protection for one year. The pricing step-down and the call protection were added during the syndication process.

Proceeds are being used by the Sturtevant, Wis.-based provider of commercial cleaning, sanitation and hygiene products to reprice an existing term loan B, which was completed in 2009 to fund a recapitalization at pricing of Libor plus 325 bps with a 2% Libor floor and an original issue discount of 99.

The repricing is being done by Citigroup through an amendment that is also revising the total net leverage ratio to 4.75 times and the interest coverage ratio to 2.75 times.

CB Richard starts trading

CB Richard's $800 million of delayed-draw term loan debt freed up, with the $400 million seven-year term loan C quoted at 99¾ bid, par ¼ offered and the $400 million 81/2-year term loan D quoted at par bid, par ½ offered, according to a trader.

Pricing on the Los Angeles-based commercial real estate services firm's term C, which was downsized from $500 million, is Libor plus 325 bps and pricing on the term D, which was upsized from $300 million, is Libor plus 350 bps, with no Libor floor on either, and an original issue discount of 99½ on both.

Credit Suisse Securities and Bank of America Merrill Lynch are the lead banks on the senior secured deal (BB) that will be used to help fund the roughly $940 million, or $1.2 billion all-in, acquisition of the real estate investment management business of ING Group NV.

Closing on the acquisition is expected in the second half of this year, subject to approval by certain stakeholders, including regulatory agencies in the United States, Europe and Asia.

Hyland breaks

Hyland Software's $205 million term loan surfaced in the secondary, too, with levels quoted at par ¼ bid, par ¾ offered, according to a trader,

Pricing on the loan is Libor plus 425 bps with a 1.5% Libor floor, and it was sold at par. There is 101 soft call protection for one year.

Credit Suisse is the lead bank on the deal that is being used to refinance/reprice an existing $205 million term loan obtained a few months ago at pricing of Libor plus 500 bps with a 1.75% Libor floor and an original issue discount of 99. The loan was used to refinance existing debt and to fund a dividend. It is being repaid at par.

Hyland Software is a Westlake, Ohio-based enterprise content management software vendor.

General Chem loan

General Chemical's $425 million term loan was quoted at par 5/8 bid, par 7/8 offered as it broke for trading late Friday, according to a trader.

Pricing on the loan, which is being used to reprice existing debt, is Libor plus 350 bps with a 1.5% Libor floor, and it was sold at par. There is 101 soft call protection for one year.

By comparison, the existing term loan is priced at Libor plus 500 bps with a 1.75% Libor floor and had been sold at an original issue discount of 98½ when it was obtained late last year for a dividend recapitalization.

Existing lenders are getting paid down at 102 as a result of the call protection that is in place on the term loan (102 in year one and 101 in year two).

Goldman Sachs is the lead bank on the deal for the Parsippany, N.J.-based manufacturer of organic and inorganic chemicals.

Arrowhead holds steady

Also in trading, Arrowhead General Insurance Agency Inc.'s $115 million six-year first-lien term loan (B3/B-) held firm at 98½ bid, 99½ offered after breaking there during Thursday's market hours, according to a trader.

Pricing on the first-lien term loan is Libor plus 575 bps with a 1.75% Libor floor, and it was sold at an original issue discount of 98.

The company's $172 million deal also includes a $15 million five-year revolver (B3/B-) priced at Libor plus 575 bps with a 75 bps unused fee and a 1.75% Libor floor and a $42 million seven-year second-lien term loan (Caa1/CCC) priced at Libor plus 950 bps with a 1.75% Libor floor, sold at an original issue discount of 97. The second-lien loan provides for call protection of 103 in year one, 102 in year two and 101 in year three.

Arrowhead refinancing debt

Arrowhead General Insurance Agency used proceeds from its new bank deal, which closed on Friday, to refinance an existing first- and second-lien credit facility.

RBC Capital Markets and Macquarie Capital acted as the joint lead arrangers and bookrunners the deal.

Covenants include total leverage and interest coverage.

Arrowhead is a San Diego-based national insurance program manager owned by Spectrum Equity Investors and JMI Partners.

MetroPCS reveals talk

Switching to the primary, MetroPCS Wireless held a conference call on Friday to launch its proposed $1.5 billion term loan (Ba1/BB), and in connection with the event, it was disclosed that talk on the loan is Libor plus 350 bps with a par offer price and 101 soft call protection for one year, according to sources.

Price talk is in line with the company's $1 billion extended term loan due Nov. 3, 2016 that was completed in July 2010.

J.P. Morgan and Wells Fargo are the lead banks on the deal that will be used to repay a $500 million term loan maturing in 2013 priced at Libor plus 225 bps and for general corporate purposes, including opportunistic spectrum acquisitions.

MetroPCS restating facility

In connection with the new loan, MetroPCS is amending ad restating its existing senior secured credit facility, according to a recent news release.

The amendment and restatement would modify certain terms and conditions of the existing credit facility and would require the approval of a majority of lenders.

Closing on the transaction is expected to occur this month.

MetroPCS is a Dallas-based provider of unlimited wireless communications service for a flat-rate with no annual contract.

ConvaTec pricing surfaces

ConvaTec Healthcare launched on Friday its $500 million term loan B with talk of Libor plus 325 bps and its €550 million term loan B with talk of Euribor plus 375 bps, with both having a 1.5% Libor floor, a par offer price and 101 soft call protection for one year, according to a market source.

Proceeds will be used to refinance/reprice the company's existing term loan B debt that was completed last year as part of a refinancing at Libor/Euribor plus 425 bps with a 1.5% Libor floor and an original issue discount of 991/2.

J.P. Morgan and Goldman Sachs are the lead banks on the deal.

ConvaTec is a Skillman, N.J.-based developer, manufacturer and marketer of medical technologies for community and hospital care.

Telx releases guidance

Telx Group held a call on Friday, too, launching a previously announced $50 million incremental senior secured term loan (B1/B-) due 2015 as well as a repricing of its existing $150 million term loan, according to a market source, who said talk is Libor plus 500 bps with a 1.5% floor and a par offer price.

The existing term loan that is being repriced was obtained in June 2010 for a refinancing. It is currently priced at Libor plus 600 bps with a 2% Libor floor and was sold at a discount of 98. There is call protection of 102 in year one and 101 in year two.

Proceeds from the incremental loan will be used for general corporate purposes, including funding the company's data center expansion plans.

Goldman Sachs and SunTrust are the lead banks on the deal for the New York-based provider of network neutral, global interconnection and colocation services.

Airvana launches

Also launching on Friday was Airvana Corp.'s $420 million four-year term loan that is being talked at Libor plus 700 bps to 725 bps with a 1.5% Libor floor, an original issue discount of 99 and 101 soft call protection for one year.

Societe Generale and Macquarie are the joint bookrunners on the deal that will be used to refinance an existing term loan that was obtained in August 2010 and fund a dividend payment.

At close last year, the term loan was sized at $360 million and priced at Libor plus 900 bps with a 2% Libor floor. It was sold at an original issue discount of 98 and used for a dividend recapitalization.

Total leverage is 1.8 times and EBITDA is around $234 million versus $165 million at the time of the last transaction.

Airvana is a Chelmsford, Mass.-based provider of mobile broadband network infrastructure products.

Huntington trims size

In some follow-up news, Huntington Ingalls Industries cuts its term loan A to $575 million from $600 million after its senior unsecured bond offering was lifted to $1.2 billion from $1.175 billion, according to sources.

J.P. Morgan is the left lead bank on the $1.225 billion senior secured credit facility (Baa3/BB+/BBB-) due 2016, down from $1.25 billion, which also includes a $650 million revolver.

Proceeds from the credit facility and the bonds will be used to help fund the company's spinoff from Northrop Grumman Corp.

Huntington Ingalls is a Newport News, Va.-based designer, builder and repairer of ships.

Great Point sets spread

Great Point Power firmed pricing on its $216.5 million term loan at Libor plus 325 bps, the wide end of the initial Libor plus 300 bps to 325 bps talk, and left the 1% Libor floor, par offer price and 101 soft call protection for one year intact, according to a market source.

Barclays is the lead bank on the deal that will be used to reprice/refinance an existing term loan obtained early last year at pricing of Libor plus 350 bps with a 2% Libor floor and an original issue discount of 99.

The 2010 loan, originally sized at $220 million, was used to fund the acquisition of four power generation plants and a stake in the Neptune transmission facility from Energy Investors Funds.

Great Point Power, a portfolio company of ArcLight Capital Partners LLC, is a power generation company.

UniTek OID emerges

UniTek Global Services Inc. is talking its $85 million term loan at an original issue discount price of 98½ and its $75 million ABL revolver at a discount of 99, according to sources.

Price talk on the term loan is Libor plus 725 bps with a 1.5% Libor floor, and price talk on the revolver is Libor plus 300 bps with a 62.5 bps undrawn fee and no Libor floor. This talk emerged prior to the deal's bank meeting, which took place on Thursday.

FBR Capital Markets is leading the $160 million credit facility that will be used to refinance existing debt.

UniTek is a Blue Bell, Pa.-based provider of engineering, construction management and installation fulfillment services to the telecommunications, broadband cable and satellite industries.

MedAssets readies deal

Also in the primary, MedAssets has scheduled a conference call for Monday to launch a repricing of its $635 million term loan B that is being led by Barclays and J.P. Morgan, according to a market source.

The existing term loan, obtained in November with the acquisition of the Broadlane Group, is priced at Libor plus 375 bps with a step-down to Libor plus 350 bps when total leverage is less than 4.5 times and a 1.5% Libor floor. It has 101 soft call protection for one year and was sold at an original issue discount of 99.

MedAssets is an Alpharetta, Ga.-based provider of technology-enabled products and services for hospitals, health systems and ancillary health care providers.

Toys refi coming soon

Toys 'R' Us has set a conference call for Monday to launch $1.1 billion of debt comprised of a $700 million term loan B-1 due September 2016 and a $400 million 71/2-year term loan B-2, according to sources.

Proceeds will be used to refinance/reprice an existing term loan that matures in September 2016 and to refinance some additional debt.

The company got its $700 million secured term loan in August 2010 as part of a refinancing at pricing of Libor plus 450 bps with a 1.5% Libor floor and an original issue discount of 981/2. There is 101 soft call protection for one year.

Bank of America Merrill Lynch, J.P. Morgan, Goldman Sachs, Wells Fargo, Credit Suisse, Citigroup and Deutsche Bank are the lead banks on the Wayne, N.J.-based toy retailer's deal.

Sidera call Monday

Sidera Networks is scheduled to hold a call on Monday to launch a repricing of its $310 million term loan via SunTrust, according to a market source.

Price talk on the loan is Libor plus 375 bps with a 1.5% Libor floor, a par offer price and 101 soft call protection for one year, the source said.

By comparison, current pricing on the company's term loan is Libor plus 450 bps with a 2% Libor floor.

Sidera is a New York-based provider of fiber optic-based network services.

Reynolds B loan timing

Reynolds and Reynolds is planning on launching its $950 million term loan B on March 21, according to a market source, while its $600 million term loan A was already launched with a bank meeting this past Thursday.

Price talk on the Dayton, Ohio-based dealer services company's term loan A is Libor plus 250 bps with no Libor floor, the source said, adding that there is no talk out on the term loan B.

Deutsche Bank is leading the $1.55 billion deal that will be used to refinance an existing term loan obtained in 2010 at pricing of Libor plus 350 bps with a step-down to Libor plus 325 bps at 3.0 times net total leverage and a 1.75% Libor floor. The loan was sold at a discount of 99¼ and includes 101 soft call protection for one year.

At close, the 2010 loan was sized at $1.82 billion and was used to refinance existing debt.

Fairmount nets interest

In other happenings, Fairmount Minerals Ltd.'s $1 billion six-year term loan B (B1/BB-) is heard to be "off to a strong start" since launching on Feb. 28 and lenders still have until Monday to place their orders, a market source told Prospect News.

The term loan B is being talked at Libor plus 350 bps to 375 bps with a 1.25% Libor floor and a par offer price, and there is 101 soft call protection for one year.

Barclays, KeyBank, Bank of America Merrill Lynch and PNC are the lead banks on the deal that will be used to fund a $300 million dividend and to repay existing term loan A and term loan B debt that was obtained in August 2010 in connection with the company's buyout by American Securities.

Pricing on the existing $150 million term A and $550 million term B is Libor plus 450 bps with a 1.75% Libor floor, and both were sold at a discount of 981/2. The tranches include a step-down to Libor plus 425 bps when leverage is less than 2.75 times and after receipt of June 30 financials.

Fairmount amending loan

As part of the new deal, Fairmount is looking to amend its term loan A and $75 million revolver to permit the refinancing, eliminate the interest coverage ratio and capital expenditures requirement and change the leverage ratio so it's fixed at 4.75 times throughout the life of the deal, instead of having steps.

Revolver and term loan A lenders are being offered a 25 bps amendment fee. Term loan A guys are being paid at par with the refinancing and term loan B guys are being repaid at 101 due to call protection.

At closing of the original deal, the company had $165 million of LTM EBITDA and leverage was about 4.3 times. Now, the company has over $250 million of LTM EBITDA and, pro forma leverage for the dividend, recapitalization will be 4.0 times.

Fairmount Minerals is a Chardon, Ohio-based producer of industrial sand.

TeleGuam gets orders

Also said to be "going well" is GTA TeleGuam's $146 million credit facility that launched with a bank meeting on Feb. 23, according to a market source.

The Tamuning, Guam-based provider of communication services' facility consists of a $10 million revolver, a $107 million first-lien term loan and a $29 million second-lien term loan.

Price talk on the first-lien term loan is Libor plus 400 bps to 425 bps with a 1.5% Libor floor and an original issue discount of 99 to 991/2. However, lenders were told at the launch that it would likely end up at the tight end of talk.

The second-lien term loan is being talked at Libor plus 800 bps with a 1.75% Libor floor and an original issue discount of 99. There is call protection of 102 in year one and 101 in year two.

BNP Paribas is the lead bank on the deal that will be used to help fund the acquisition of the company by Advantage Partners from Shamrock Capital Advisors.

Playboy closes

Playboy Enterprises Inc., a Chicago-based media and lifestyle company, closed on its Jefferies-led $195 million credit facility (B2/B-) on Friday, consisting of a $10 million five-year revolver and a $185 million six-year term loan, according to a market source.

Pricing on the term loan is Libor plus 650 bps with a 1.75% Libor floor, and it was sold at a discount of 98. The tranche is non-callable for one year, then at 102 in year two and 101 in year three.

During syndication, the term loan was upsized from $160 million and pricing firmed at the tight end of the Libor plus 650 bps to 700 bps talk, and the revolver was downsized from $20 million.

Proceeds were used to help fund the buyout of the company by Icon Acquisition Holdings LP, a limited partnership controlled by Hugh M. Hefner, for $6.15 per share.

Other funds for the transaction came from equity from Rizvi Traverse Management LLC. The amount of equity was reduced by $15 million as a result of the term loan upsizing, and the remaining extra $10 million from the upsizing is being used to add cash to the balance sheet.

GNC wraps refi

General Nutrition Centers Inc. completed its $1.28 billion refinancing credit facility (B1/B+) on Friday, according to an 8-K filed with the Securities and Exchange Commission.

The facility consists of an $80 million five-year revolver, and a $1.2 billion seven-year term loan B priced at Libor plus 300 bps with a 1.25% Libor floor ,that was sold at an original issue discount of 993/4. The B loan includes 101 soft call protection for one year.

During syndication, the term loan B was upsized from $1.1 billion, pricing was flexed down from Libor plus 350 bps, the discount came in from 99½ and call protection was added.

J.P. Morgan and Goldman Sachs acted as the lead banks on the deal.

General Nutrition Centers is a Pittsburgh-based specialty retailer of nutritional products, including vitamin, mineral, herbal and other specialty supplements and sports nutrition, diet and energy products.

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