Calpine, Level 3, GNC, Univar, Tank Holding break; iStar down with refi; Transtar to shut early

By Sara Rosenberg

New York, Sept. 28 - Calpine Corp. lifted its term loan size and finalized the original issue discount on Friday morning, and by the afternoon, the deal made its way into the secondary market with levels quoted well above par.

In more trading news, Level 3 Communications Inc., General Nutrition Centers Inc. (GNC), Univar Inc. and Tank Holding Corp. freed up, and iStar Financial Inc.'s term loans headed lower, moving closer to par, as the company announced plans to refinance the debt.

Switching to the primary, Transtar Holding Co. moved up the commitment deadline on its credit facility, and RPI Finance Trust (Royalty Pharma) firmed spreads on its repricing term loans at the low end of guidance.

Additionally, StandardAero (DAE Aviation Holdings Inc.) revealed price talk on its term loan B with launch and David's Bridal Inc. disclosed guidance on its loan after ratings surfaced.

Furthermore, Tallgrass Energy Partners LP came out with timing on its deal, and Delta Air Lines Inc., Progressive Waste Solutions Ltd., ABB Concise Inc., Garda World Security Corp. and Caesars Drai's surfaced with new credit facility plans.

Calpine frees up

Calpine made some changes to its new $835 million seven-year senior secured term loan (B1/B+), and then the debt began trading on Friday with levels seen at par ½ bid, 101 offered, according to a market source.

The loan, which was upsized from $615 million in the morning, is priced at Libor plus 325 basis points with a 1.25% Libor floor, and was sold at an original issue discount at 991/2, after firming at the tight end of the 99 to 99½ guidance, the source said. There is 101 soft call protection for one year.

Morgan Stanley Senior Funding Inc., Barclays, Deutsche Bank Securities Inc. and RBC Capital Markets LLC are leading the deal.

Proceeds from $615 million of the loan will be used to redeem 10% of each series of the company's existing notes at 103 plus accrued interest. The additional $220 million being raised through the upsizing will repay project level term loans at Broad River/South Point, the source remarked.

Calpine is a Houston-based power company.

Level 3 starts trading

Level 3 Communications' $1.2 billion covenant-light senior secured term loan (Ba3/B+) broke too, with the debt sent trading at par ¼ bid, par ½ offered, according to a trader.

Pricing on the loan is Libor plus 325 bps with a 1.5% Libor floor, after firming at the wide end of the 1.25% to 1.5% talk, the trader said. The debt was sold at par.

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

Proceeds will be used to refinance the company's term loan B-2 and term loan B-3.

Level 3 is a Broomfield, Colo.-based provider of fiber-based communications services.

GNC bid at par

General Nutrition Centers' $1.1 billion term loan B due March 2018 emerged in the secondary late Friday at par bid, par ½ offered, according to a market source.

Pricing on the loan is Libor plus 275 basis points with a 1% Libor floor, and it was sold at par, the low end of initial talk of 99¾ to par. There is 101 soft call protection for one year.

J.P. Morgan Securities LLC is the leading the deal that is being used to refinance an existing term loan B.

General Nutrition is a Pittsburgh-based specialty retailer of health and wellness products.

Univar tops OID

Another deal to free up was Univar's $550 million covenant-light incremental term loan, with levels quoted at 99 3/8 bid, 99 5/8 offered, according to a trader.

The loan, which had been talked with a size of $500 million to $550 million, is priced at Libor plus 350 bps with a 1.5% Libor floor, and was sold at an original issue discount of 99.01.

The spread and the floor on the incremental debt match that of the existing term loan.

Bank of America Merrill Lynch, Goldman Sachs & Co., Wells Fargo Securities LLC and Morgan Stanley Senior Funding Inc. are leading the deal that will be used to refinance existing debt and for general corporate purposes.

Univar is a Redmond, Wash.-based distributor of industrial and specialty chemicals.

Tank Holding breaks

Tank Holding's $349.6 million covenant-light term loan hit the secondary market as well, with levels quoted at par 3/8 bid, par 5/8 offered, according to a trader.

Pricing on the GE Capital Markets-led loan is Libor plus 425 bps with a 1.25% Libor floor.

Proceeds are being used to reprice the existing term loan debt from Libor plus 550 bps with a 1.25% Libor floor.

Tank Holding is a Lincoln, Neb.-based manufacturer of polyethylene and steel material handling products.

iStar weakens

Also in trading, iStar Financial's 2013 and 2014 term loans softened as the company announced plans to repay the debt in full with proceeds from a proposed $1.83 billion five-year term loan, according to a trader.

The 2013 term loan was quoted at 99 7/8 bid, par 3/8 offered, down from opening levels of par ¼ bid, par ¾ offered and from Thursday's levels of par ½ bid, 101¼ offered, the trader said.

And, the 2014 term loan was quoted at 99 7/8 bid, par 3/8 offered as well, down from par ¾ bid, 101¼ offered in the previous session, the trader continued.

The new term loan will be launching to investors with a bank meeting at 1 p.m. ET in New York on Monday via lead arrangers J.P. Morgan Securities LLC, Barclays and Bank of America Merrill Lynch.

iStar is a New York-based fully-integrated finance and investment company focused on the commercial real estate industry.

Transtar revises deadline

Moving to the primary, Transtar accelerated the commitment deadline on its $510 million credit facility to Monday from Wednesday, according to a market source.

The facility consists of a $50 million five-year revolver (B1/B+), a $295 million six-year first-lien term loan (B1/B+) talked at Libor plus 475 bps with a 1.25% Libor floor and an original issue discount of 99, and a $165 million seven-year second-lien term loan (Caa1/CCC+) talked at Libor plus 850 bps with a 1.25% floor and a discount of 98.

The first-lien term loan has 101 soft call protection for one year, and the second-lien term loan has call protection of 103 in year one, 102 in year two and 101 in year three.

RBC Capital Markets LLC is leading the deal that will be used to refinance existing debt and fund a dividend.

Transtar is a Cleveland-based distributor of automotive aftermarket driveline solutions.

RPI finalizes coupons

RPI Finance Trust set pricing on its $840.1 million 51/4-year term loan at Libor plus 250 bps, the low end of the Libor plus 250 bps to Libor plus 275 bps talk, and left the 0.75% Libor floor unchanged, according to a market source. This tranche is being repriced from Libor plus 275 bps with a 1% Libor floor.

Also, pricing on the $1.878 billion 63/4-year term loan firmed at Libor plus 275 bps, the tight end of the Libor plus 275 bps to 300 bps talk, and this tranche also has a 0.75% Libor floor, the source remarked. This debt is being repriced from Libor plus 300 bps with a 1% Libor floor.

Bank of America Merrill Lynch, Goldman Sachs & Co. and Citigroup Global Markets Inc. are the lead banks on the roughly $2.7 billion term loans (Baa2) that are being offered at par.

RPI Finance is a New York-based acquirer of royalty interests in marketed and late-stage biopharmaceutical products.

StandardAero discloses talk

StandardAero released talk of Libor plus 500 bps with a 1.25% Libor floor, an original issue discount of 98 and 101 soft call protection for one year on its $520 million six-year term loan B (B2) that launched with a bank meeting on Friday, according to a market source.

The company is also getting a $150 million five-year ABL revolver as part of its $670 million senior secured credit facility.

Lead banks, Barclays, Bank of America Merrill Lynch and Goldman Sachs & Co., are seeking commitments by Oct. 12, the source added.

Proceeds will be used to refinance existing debt and for general corporate purposes, and the deal will result in senior secured leverage of 4.0 times and gross total leverage of 6.3 times, the source added.

StandardAero is a Tempe, Ariz.-based company that specializes in engine maintenance, repair and overhaul, and nose-to-tail services, for business and general aviation, air transport and military aircraft.

David's Bridal guidance

David's Bridal announced price talk of Libor plus 425 bps with a 1.25% Libor floor and an original issue discount of 99 on its $500 million covenant-light term loan B after ratings came out at B2/B, according to a market source.

The company's $625 million credit facility, which launched with a bank meeting on Thursday, also includes a $125 million ABL revolver.

Bank of America Merrill Lynch, Barclays, Goldman Sachs & Co., Morgan Stanley Senior Funding Inc., Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. are leading the deal that will help fund the buyout of the company by Clayton, Dubilier & Rice for about $1.05 billion from Leonard Green & Partners, who will retain a minority interest in the company.

Closing is expected in the fourth quarter.

David's Bridal is a Conshohocken, Pa.-based specialty retailer of bridal gown and wedding-related apparel and accessories.

Tallgrass sets launch

Continuing on the topic of primary deals, Tallgrass Energy Partners has scheduled a bank meeting for Tuesday morning to launch a $1.275 billion senior secured credit facility that consists of a $150 million five-year revolver, an $875 million six-year term loan and a $250 million six-year, delayed-draw for 18 months, term loan, according to a market source.

Previously, it was known that the deal would either be late September or early October business and that it would include the $150 million revolver and $875 million funded term loan.

Barclays is the sole bookrunner on the facility and a joint lead arranger with Bank of America Merrill Lynch, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and RBC Capital Markets LLC.

Tallgrass funding acquisition

Proceeds from Tallgrass' credit facility and equity will finance the roughly $1.8 billion purchase of assets from Kinder Morgan Energy Partners LP, including Kinder Morgan Interstate Gas Transmission, Trailblazer Pipeline Co., the Casper-Douglas natural gas processing and West Frenchie Draw treating facilities in Wyoming and Kinder Morgan's 50% interest in the Rockies Express Pipeline.

For the transaction, senior secured and total leverage is 3.2 times and equity to total capitalization is around 53%.

Closing is expected in the fourth quarter, subject to Federal Trade Commission approval.

Tallgrass is a midstream gas pipeline system that is owned by management, Kelso & Co. and a limited group of investors led by the Energy & Minerals Group, including Magnetar Capital.

Delta joins calendar

Delta Air Lines announced in an 8-K filing that it will be holding a bank meeting on Monday to launch a $1.7 billion first-lien senior secured credit facility that will be used to help refinance the existing Pacific Routes senior secured credit facility and senior secured notes.

The facility is comprised of a $450 million five-year undrawn revolver, a $1 billion six-year term loan B-1 and a $250 million 31/2-year term loan B-2.

Additional funds for the transaction will come $250 million of other debt financing.

Barclays, Bank of America Merrill Lynch, BNP Paribas Securities Corp., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc. and UBS Securities LLC are the lead banks on the deal, a market source said.

Delta is an Atlanta-based provider of scheduled air transportation for passengers and cargo.

Progressive readies deal

Progressive Waste Solutions set a bank meeting for Tuesday to launch a $2.25 billion credit facility that includes a $1.75 billion revolver and a $500 million term loan B with 101 soft call protection for one year, according to a market source.

Bank of America Merrill Lynch, TD Securities, CIBC World Markets Corp. and J.P. Morgan Securities LLC are leading the transaction.

Proceeds will be used to refinance an existing credit facility.

"We are reviewing our opportunities to add a fixed component to our capital structure and extend the maturities, as well as simplify our structure, by consolidating our existing U.S. and Canadian facilities into a single credit facility at the parent level," a company spokesperson told Prospect News.

Progressive Waste is Vaughan, Ontario-based full-service, vertically integrated waste management company.

ABB Concise plans loan

ABB Concise scheduled a bank meeting for 9:30 a.m. ET on Tuesday to launch a $155 million senior secured credit facility that will help fund its buyout by New Mountain Capital, according to a market source.

The facility consists of a $40 million five-year revolver and a $115 million six-year institutional term loan, with price talk not yet available, the source said.

RBC Capital Markets and BMO Capital Markets are the bookrunners on the deal.

ABB Concise is a Coral Springs, Fla.-based optical distributor, operating as an independent source of marketing and logistics solutions for eye care professionals, retailers and manufacturers.

Garda schedules meeting

Garda World Security is set to hold a bank meeting on Wednesday to launch a $350 million secured credit facility that consists of a $100 million five-year revolver and a $250 million seven-year term loan B, according to a market source.

RBC Capital Markets, Bank of America Merrill Lynch, TD Securities (USA) LLC and Mizuho Securities USA Inc. are the lead banks on the deal.

Proceeds will be used to help fund the company's buyout by Apax Partners for C$12 per share in cash, in a transaction valued at C$1.1 billion, including assumed debt.

Closing is expected later this year, subject to Court approval and shareholder approval, which is expected to be sought at a meeting in October.

Garda is a Montreal-based provider of security and cash logistics solutions.

Caesars Drai's coming soon

Caesars Drai's is planning on hosting a bank meeting on Thursday afternoon to launch a $180 million seven-year term loan that is non-callable for 1½ years, then at 102, 101 and par, according to sources.

Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC and Valtus Capital are leading the deal.

Proceeds will be used to fund a project in Vegas with Victor Drai and Caesars Entertainment.

Terex on track

In other news, Terex Corp.'s refinancing is expected to get done at initially proposed terms, a source said. Commitments are due at 5 p.m. ET on Monday.

The deal consists of a roughly $460 million term loan that is being repriced at Libor plus 350 bps with a 1% Libor floor from Libor plus 400 bps with a 1.5% Libor floor, and a roughly €200 million term loan that is being repriced at Euribor plus 400 bps with a 1% floor from Euribor plus 450 bps with a 1.5% floor.

Credit Suisse Securities (USA) LLC is the lead bank on the deal.

With the refinancing, existing lenders are getting paid down at par.

Terex is a Westport, Conn.-based diversified manufacturer.

Reynolds closes

Reynolds Group Holdings Ltd. completed on Friday its $2,235,000,000 six-year U.S. term loan and €300 million six-year term loan, according to an 6-K filed with the Securities and Exchange Commission.

Pricing on the U.S. loan is Libor plus 375 bps with a step-down to Libor plus 350 bps at less than 5.5 times net leverage. There is a 1% Libor floor as well as 101 repricing protection for one year, and the debt was sold at par.

The euro loan is priced at Euribor plus 400 bps with a step-down to Euribor plus 375 bps at less than 5.5 times net leverage. This tranche also has a 1% floor, was sold at par and includes 101 repricing protection for one year.

During syndication, the U.S. term loan was downsized from $2,775,000,000 and pricing came in from Libor plus 425 bps, while the euro term loan was upsized from €250 million and the coupon was lowered from Euribor plus 425 bps.

Reynolds repays debt

Proceeds from Reynolds' new term loans (B1/B+), which were led by Credit Suisse Securities (USA) LLC, were used to refinance existing U.S. and euro term loans.

Other funds for the debt paydown came from $1.55 billion of proceeds raised from a $3.25 billion senior secured notes offering that was upsized from $1 billion. Of the remaining notes proceeds, about $1.2 billion is being used to refinance 7¾% secured notes and about $500 million is adding cash to the balance sheet.

Reynolds Group is an Auckland, New Zealand-based manufacturer and supplier of consumer food and beverage packaging and storage products.

Par Pharmaceutical wraps

TPG closed its acquisition of Par Pharmaceutical Cos. Inc. for $50 per share in cash, according to a news release. The transaction equity value is $1.9 billion.

For the buyout, Par Pharmaceutical got a $1.205 billion credit facility (B1/B+) consisting of a $150 million revolver, and a $1.055 billion term loan that is priced at Libor plus 375 bps with a 1.25% Libor floor. The term loan was sold at a discount of 99 and includes 101 soft call protection for one year.

During syndication, the term loan was upsized from $980 million and pricing was reduced from talk of 425 bps to 450 bps.

Bank of America Merrill Lynch, Deutsche Bank Securities Inc., Goldman Sachs & Co., RBC Capital Markets LLC and Citigroup Global Markets Inc. led the deal.

Par Pharmaceutical is a Woodcliff Lake, N.J.-based specialty pharmaceutical company.

SBA completes loan

SBA Communications Corp. closed on Friday on its $300 million incremental term loan B (Ba2/BB), according to an 8-K filed with the Securities and Exchange Commission.

Pricing on the loan is Libor plus 275 bps with a 1% Libor floor, and it was sold at an original issue discount of 993/4, after tightening from 99. There is 101 soft call protection for one year.

Citigroup Global Markets Inc., Barclays and J.P. Morgan Securities LLC led the deal that is being used to purchase 3,252 tower sites from TowerCo for $1.2 billion in cash and 4.6 million shares of class A common stock, implying a total transaction value of $1.45 billion.

SBA is a Boca Raton, Fla.-based provider and owner and operator of wireless communications infrastructure, expects to close on the transaction in the fourth quarter, subject to customary conditions.

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